OBE 2

According to the instructor, why is culture difficult to identify in an organisation?

• A. Cultural change is often associated with the top management.

• B. Culture involves taken for granted values, norms and behaviour

• C. Cultural change is often outsourced to external experts

• .D. Cultural change involves systems, structures and processes.

According to the instructor, which of the following is the most important reason why cultural change is so difficult?.

• A. Top management defends organisational culture.

• B. Cultural values tend to define who people are

• C. People treat culture to be obvious and normal

• D. Cultural change is impossible.

Which of the following best describes market culture?.

• A. Focused on outsourcing business processes to external partners.

• B. Externally focused on competitive achievement and will pursue this through very effective systems and processes.

• C. Internally focused and ensures that processes and procedures are strictly followed

• D. Watching the moves of competitors very carefully so as to devise strategies.

Which of the following statements about the matrix structure is true?

• A. The matrix structure is generally preferable over other structure types because it can help you coordinate the organisation along multiple dimensions at the same time

• B. When you have a functional structure that is too silo-ed, it is a good idea to use a matrix structure to improve coordination across the functional silos

• C. Matrix structures are oriented at coordination along multiple dimensions, such as geography and product line, for example

• D. The matrix structure is not necessarily more complex and costly than the divisional structure

When you want to structure a cost conscious organisation that offers a service that centrally involves specialists who are expensive to train, and who can't be trained across multiple specialisations, which of the following is the most logical structure to use?

• A. Network with flexible organic reporting lines

• B. Functional by specialisation

• C. Matrix by specialisation and customer segment

• D. Divisional by customer segment

The harmonica effect of recurring cycles from centralisation to decentralisation and back again is an effect of which key trade-off?

• A. Agreeableness vs Responsiveness

• B. Responsiveness vs Coordination

• C. Efficiency vs Coordination

• D. None of the above

Which statement is false?

• A. Organisational structure decisions often become politicised, which makes it more difficult to implement the most effective one

• B. Organisation structure is the most effective lever for ensuring that the organisation is aligned with the required key capabilities

• C. One of the key limitations of organisational structure is that just because you re-draw the boxes on an org chart does not necessarily mean that people's behaviours change to fit

• D. One of the key difficulties with deciding on an organisation structure is that it involves trade-off decisions that are inevitable

Refer to Scenario 1 to answer quiz questions 1-3.Which structure should you seriously consider as an alternative to the current divisional structure by gym location?

• A. A divisional structure by customer segment.

• B. A matrix structure that leaves the current divisions intact and overlays it with centralised functions for procurement, training methods, finance, HR, and marketing.

• C. A functional structure - e.g. procurement, gym operations, training methods, HR, finance, marketing - that gets rid of the gym directors

• D. None of the above

Refer to Scenario 1.What is the key trade-off that is in play in the above example?

• A. The trade-off between local responsiveness and efficiency that a decentralised divisional structure gives you on the one hand, and the increased coordination that a more centralised structure could give you on the other

• B. The trade-off between local responsiveness and coordination that a decentralised divisional structure gives you on the one hand, and the increased efficiency that a more centralised structure could give you on the other

• C. The trade-off between the local responsiveness that a decentralised divisional structure gives you on the one hand, and the increased efficiency and coordination that a more centralised structure could give you on the other

• D. The trade-off between the local coordination and efficiency that a decentralised divisional structure gives you on the one hand, and the increased responsiveness that a more centralised structure could give you on the other

Refer to Scenario 1.What would be a good, valid reason to stick to the existing structure?

• A. Localised profit and loss (P&L) responsibility is important

• B. Upon further research you find that customer needs are actually highly localised, because customers really appreciate the feeling that they are dealing with a local business that is run by a person they know, instead of some large, branded corporate

• C. You could try to increase coordination in training methods and procurement by introducing some dotted line support functions in these two areas that can advise and support the gym directors

• D. Changing the structure will necessarily cause increased complexity