Organization Theory and Design, 10th Edition instructor manual and test bank
- Richard L. Daft Vanderbilt University
- ISBN-10: 0324598890
- ISBN-13: 9780324598896
Blackboard 6/7/8 test bank Blackboard CE4-6-8/Vista test bank (formerly WebCT Instructor's Manual (complete) Integrative Cases PowerPoint (complete) Test Bank (complete) Video Guide
CHAPTER 2—STRATEGY, ORGANIZATION DESIGN,
AND EFFECTIVENESS
MULTIPLE CHOICE
1. When looking for strengths and weaknesses,
top management is:
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a.
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Assessing the external
environment.
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b.
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Analyzing the competition.
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c.
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Evaluating the internal
situation in order to define its distinctive competence.
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d.
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Wasting its time since it has
no control over these things.
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ANS: C PTS: 1 REF: pg. 58
NAT: AACSB Analytic | Leadership Principles
2. The primary responsibility of top management
is to:
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a.
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Perform the organization's
SWOT analysis.
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b.
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Determine goals, strategy,
and design, in adaptation to environment.
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c.
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Set a motivating culture for
all employees.
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d.
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Formalize and centralize the
firm.
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ANS: B PTS: 1 REF: pg. 58
NAT: AACSB Analytic | Leadership Principles
3. The top management role in organization
effectiveness involves examination of internal environment which includes:
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a.
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Opportunities.
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b.
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Weaknesses.
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c.
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Uncertainty.
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d.
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Resource availability.
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ANS: B PTS: 1 REF: pg. 58
NAT: AACSB Reflective Thinking | Environmental
Influence
4. A(n) ____ is a desired state of affairs that
the organization attempts to reach.
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a.
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organizational goal
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b.
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marching goal
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c.
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operative goal
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d.
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resource-based goal
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ANS: A PTS: 1 REF: pg. 58
NAT: AACSB Reflective Thinking | Creation of Value
5. The leader of one religious denomination
emphasizes converts to the denomination, whereas the previous leader felt
converts should play a backseat role while they "paid their dues."
This illustrates ____ influence on the selection of effectiveness criteria.
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a.
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goal measurability
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b.
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top management
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c.
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environmental conditions
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d.
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that almost anything can have
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ANS: B PTS: 1 REF: pg. 59
NAT: AACSB Analytic | Leadership Principles
CHAPTER
TWO
STRATEGY,
ORGANIZATION DESIGN, AND EFFECTIVENESS
CHAPTER
OVERVIEW
This chapter explains
the types of goals that organizations pursue and the competitive strategies to
reach those goals. There is an overview of strategic management, followed by
frameworks for determining strategic action. Several approaches are then explored for
measuring organizational effectiveness.
CHAPTER OUTLINE
Managing by Design
Before reading the chapter, students will
give their opinions on the following
statements:
·
A company’s strategic intent or
direction reflects managers’ systematic analysis of organizational and environmental factors.
·
The best business strategy is to make products and services as
distinctive as possible to gain an edge in the marketplace
· The best measures of business
performance are financial.
The
Role of Strategic Direction in Organizational Design
The
primary responsibility of top management is to determine an organization’s
goals, strategy, and design, therein adapting the organization to a changing
environment. Direction setting begins
with an assessment of opportunities and threats in the environment and an
evaluation of internal strengths and weaknesses. Then the company can determine
its mission, goals and strategies.
Organizational design reflects the way goals and strategies are
implemented. This is the role of
organization theory. Consider how
organization design is affected by the choice of goals and strategy. New goals and strategy are often selected
based upon environmental needs, and then the top management attempts to
redesign the organization to achieve those ends. Performance measurements feed back into the
internal environment, so that past performance of the organization is assessed
by top management in setting new goals and strategies for the future.
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ASSESS
YOUR ANSWER
A company’s strategic
intent or direction reflects managers’ systematic analysis of organizational
and environmental factors.
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|
ANSWER: Agree. The best
strategies come from systematic analysis of organizational
strengths and
weaknesses combined with analysis of opportunities and
threats in the
environment. Careful study combined with experience enable top
managers to decide on
specific goals and strategies.
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Organizational
Purpose
Purpose may be referred to
as the overall goal or mission.
Different parts of the organization establish their own goals to help
the organization achieve its overall purpose.
Strategic Intent
Strategic
Intent means that all the organization’s energies and resources are
directed toward a focused, unifying, and compelling overall goal. Three aspects
of strategic intent include:
The official overall goal for an organization is its mission. The mission describes the organization's
vision, its shared values and aspirations, and its reason for existence.
Competitive Advantage
Competitive advantage refers to what sets the organization apart from others and provides it
with a distinctive edge for meeting customer or client needs in the marketplace.
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IN
PRACTICE
Walgreens
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Rather than just
selling prescriptions, Walgreens is redefining its strategic intent to become
a broad health care provider. It began by opening pharmacies in hospitals and
assisted living facilities and by offering flu shots and other immunizations
in its stores. Then, the company established Take Care Health Clinics to
provide basic health services. Walgreens is
buying two firms that operate health care centers at large corporations.
|
Core competence
Core competence is something the organization does
especially well in comparison to its competitors.
Operative
Goals
Operative goals designate the ends sought
through operating procedures and describe specific measurable outcomes in the
short run. These goals concern overall
performance, resource, market, employee development, productivity, and
innovation and change.
·
Overall performance goals may be expressed in
terms of profitability, delivery of service, growth, or volume. Jelly Belly Candy Company has a goal of increasing sales
by 25 percent by 2010.
·
Resource goals pertain to the
acquisition of needed material and financial resources. Honda Motor Company may have the resource goal of
obtaining high-quality auto parts at low cost.
·
Market goals relate to the market share
or market standing. Canada
·
Employee development goals pertain to the
training, promotion, safety, and growth of workers.
·
Productivity goals concern the amount of
output achieved from available resources.
·
Innovation and change goals pertain to internal
flexibility and readiness to adapt to unexpected changes in the environment.
The
Importance of Goals
The
mission or official goals provide
legitimacy to stakeholders. In
contrast, operative goals provide employee
direction and motivation, decision
guidelines, and criteria of
performance.
A
Framework for Organizational Strategies and Design
A strategy is a plan for interacting with
the competitive environment to achieve organizational goals. Goals define where the organization wants to
go and strategies define how the organization will get there.
Porter’s
Competitive Forces and Strategies
Industry forces determine a company’s position vis-à-vis competitors:
The Threat of New Entrants creates pressure for organizations to hold down prices
or increase investment. The Power of Suppliers means that large suppliers can
charge higher prices, limit service and quality, and shift costs to customers. The
Power of Buyers can force down prices, demand better quality or
service, and drive up costs. The Threat of Substitutes for a
company’s product or service reflects changes in cost, new technologies, and
social trends that affect buyer loyalty. Rivalry among Existing Competitors
is influenced by the preceding four forces, cost and product differentiation.
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