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Organizational Structure Part 1

100

Why is it important for managers to carefully consider the type of organizational structure that they use to implement their strategies?

Managers need to select a structure that aligns with the firm's strategy.

200

What are the two alternatives that counter the disadvantages of a divisional structure. Name an advantage of each

Strategic Business Unit (SBU) Advantage: able to react quickly to changes in environment Disadvantage: Increased overhead expenses Holding Company Advantage: Increased level of motivation among executives Disadvantage: Lack of control on corporate and divisional executives

Organizational Structure Part 2

100

True/False: Both strategies of differentiation and related diversification should use the financial type of reward and evaluation system?

False

200

Indicate the difference between Barrier-Free, modular, and virtual organization.

Barrier-Free organization involves making all organizational boundaries (internal and external) more permeable. It recommends the idea of working in teams. Modular organization emphasizes the outsource of non-core activities. Virtual organization is a social network in which all the horizontal and vertical boundaries are removed.

Feedback Control Systems

100

What are the 5 stages of the “Feedback Control System” process? And what are the 2 key relationships between the 3 cornerstones of a feedback control system?

1) Starts with strategy formulation 2) Goal setting 3) Strategy implementation and action 4) Performance measurement, evaluation, and feedback 5) Response to evaluation and possible corrective actions Informational Control: Strategic Control and Strategic Formulation Behavioural Control: Strategic Control and Strategy Implementation

200

What is the crucial role that rewards and incentives play in the makeup of the organizations culture?

Rewards and incentives should enhance the basic core values of the organization and motivate employees to become more successful in helping the organization reach their goals and objectives. Also, it can potentially reduce the risk of counterproductive behavior that would likely ruin the firm’s culture

Corporate Governance

100

What 2 problems does the 'Agency theory' try to resolve?

1. Conflicting goals between shareholders and managers. 2. When Shareholders can't verify what managers are doing.

200

How can Shareholders align their interests with the managers?

1. A committed and involved Board of directors. 2. Shareholder Activism. 3. Managerial rewards and incentives.