Strategic Organization Design Coursera

Strategic Organization Design Coursera Answer. In this post you will get Quiz & Assignment Answer Of Strategic Organization Design Coursera

 

Strategic Organization Design Coursera

Offered By ”Ludwig-Maximilians-Universität München (LMU)”

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Week- 1

Structure Organizations

 

1.
Question 1
BMW is planning to fabricate a new hybrid car. The production of this vehicle requires special components which cannot be produced in the same way as the respective parts of BMW’s regular series. BMW requires 400 batches of brakes every year in order to produce the amount of hybrid cars that meets the demand of its customers.

The additional costs for fabricating them in-house would include the purchase of a new machine which produces the components of the new brakes and costs €250.000,-. Maintenance charges sum up to €10.000,- per year. The price for the material and staff required to produce one batch of these transaction-specific brakes would amount to €100,- per unit.

Alternatively BMW can find a supplier of ready-made brakes matching its hybrid car. Finding the right supplier is however costly as well. BMW needs to compare prices and qualities of the various manufacturers requires time and effort. After finding the right supplier, BMW has to negotiate a contract, agree on terms and conditions, control the supplier and sanction him in case of a violation of the contract. The price for one batch of brakes obtained from this supplier sums up to €500,- per unit.

How high can the remaining external transaction costs at maximum be, so that BMW does not decide to produce the brakes in-house? Only take the first year of production into account!

1 point

• €10.000,-
• €50.000,-
• €75.000,-
• €100.000,-
• €120.000,-

2.
Question 2
Is this statement true?

According to economic theory, transactions only take place in markets.

1 point

• True.
• False.

3.
Question 3
An organization…

1 point

• … is about many actors coming together to achieve individual goals.
• … is linked to the external environment.
• … has identifiable boundaries e.g. via membership.
• … always requires a formal design.
• … exists when the sum of transaction costs within the organization exceeds the price for the same transaction in the market.

4.
Question 4
This is an example for an organization:

1 point

• Amnesty International.
• University (e.g. LMU Munich).
• Friends coming together to visit a music festival.
• FC Bayern Munich.
• People on the same train.

5.
Question 5
Transaction costs…

1 point

• … comprise finding the right contract partner, producing a good, drawing up a contract, inspecting it, negotiating the terms and conditions, sanctioning the partner if the contract has been violated.
• … are incurred as organizations need to discover what prices are. Information asymmetries result in need e.g. for costly contracting.
• … are always lower in organizations than in markets.
• … only exist in market transactions.
• … are studied in order to assess whether a firm should produce goods or services itself or purchase them externally (make-or-buy decision).

6.
Question 6
Why do firms exist?

1 point

• As an efficient alternative to the market by reducing transaction costs.
• As it is easier for members of an organization to achieve one’s individual goal.
• To maintain the status quo in the market.
• To realize economies of scale and scope and, hence, produce goods and services efficiently.
• Because they bring together resources to achieve desired goals.

7.
Question 7
Universal challenges for organizations comprise…

1 point

• … the provision of information.
• … the intrinsic and extrinsic motivation of their employees.
• … maintenance of organizational property like buildings and car pool.
• … summarized division of labor and integration of effort.
• … task division.
• … four elements and there are no other challenges to organizations.

8.
Question 8
Which of the statements are true?

1 point

• The agency problem emerges in the context of reward provision.
• In the context of the agency problem, the agent is giving directions, whereas the principal is taking these directions.
• An employee – shareholder relationship describes an agency problem.
• The agency problem is a challenge within the category of task allocation.
• The principal and the agent have partly differing goals and risk preferences which is why the reward provision should be designed in a way to align the interests of the two parties.

9.
Question 9
Mark the incorrect answer:

BMW engages in charitably events in order to…

1 point

• increase their corporate social responsibility which is a common challenge for today’s businesses.
• … improve its image.
• … solely spend money so that they can save on taxes.

10.
Question 10
The cooperation problem…

1 point

• … emerges as the division of labor generates interdependencies between tasks and agents.
• … refers to the challenge of harmonizing different activities of individuals and units.
• … refers to the challenge of aligning the interest of individuals and units with the same goals.
• … along with the coordination problem, are challenges emerging from organizational structure.
• … can be counteracted with devices such as shared values, performance incentives, and increased competition between employees.

 

Week- 2

Complexity and Interdependence

 

1.
Question 1
Task interdependence implies a greater need for information processing, as task interdependence generates agent interdependence.

1 point

True

False

2.
Question 2
Task interdependence arises between grouped and not individual tasks, as grouped tasks are interdependent by definition.

1 point

True

False

3.
Question 3
Tasks are interdependent when the value created by doing both at once and the sum of the value created from doing each by itself are unequal.

1 point

False

True

4.
Question 4
Specifically, task interdependence implies an increase in the value created by performing two tasks at once compared to the sum of value created from performing each individually.

1 point

True

False

5.
Question 5
An example for grouped task interdependence is the relationship between the tasks of the kitchen and the waiting staff in a restaurant such as Da Antonio’s.

1 point

True

False

6.
Question 6
FC Bayern Munich faces Atletico Madrid in the UEFA Champions League. Every player performs a certain task in order to win the match for his team. Which statements are true?

1 point

The tasks of players of FC Bayern Munich are interdependent.

The tasks of players of both FC Bayern Munich and Atletico Madrid are interdependent.

The tasks of all players exhibit complementarity.

The coach’s job is to account for the complexity of the game and make use of certain interdependencies.

The referee’s job is to reduce interdependencies between the players of competing teams.

7.
Question 7
Which of the following statements is true?

1 point

Complexity is likely to be greater when one craftsman builds a chair rather than when several workers subdivide tasks necessary to build a chair.

Interdependence may be a result of division of labor.

If performing each task by itself results in different input consumption and output value than performing both, an output-related factor inducing interdependence exists.

Interdependence may arise through division of labor, use of common inputs, slack resources, and one task being the other one’s input.

8.
Question 8
Division of labor (DOL)…

1 point

… is greater in a company with an assembly line than in a crafts company in which every employee manufactures one order by himself

… creates interdependencies resulting in an increase in complexity.

… always facilitates integration of interdependent tasks and agents, as it creates clear responsibilities for agents.

… increases the amount of individuals with different subgoals.

… indirectly leads to role uncertainty.

9.
Question 9
According to Puranam (2014), individual behavior in organizations is characterized by three main elements:

1 point

Goals, representations and knowledge

Goals, representations and choice process

Goals, subgoals and motivation

Experience, knowlegde and intuition

Motivation, knowledge and social pressure

10.
Question 10
Decentralization is typically observed when:

1 point

the firm operates in a dynamic environment that requires quick decision making.

a company is locally centrallized.

managers are willing to share responsibilities, but not the accompanying power.

employees are willing to accept more power.

 

 

Week- 3

Understand your Surroundings

1.
Question 1
BMW operates in the automotive industry which is characterized by a unique, very competitive organizational environment. How does its environment affect BMW?

1 point

BMW’s and Audi’s general environment are quite similar as they both operate in the same market.

The international sector affects BMW indirectly, as it operates in domestic and foreign markets.

BMW’s decision to manufacture hybrid cars can be interpreted to be a response to the changes within the sociocultural sector, i.e. greater public ecological sensibility.

The economic conditions sector dictates the regulations for the CO2 emissions that BMW’s cars must satisfy.

2.
Question 2
As discussed in the lecture, the government sector is of greater importance to entrepreneurs than to incumbent firms.

1 point

True.

False.

3.
Question 3
By choosing a certain market to operate in, firms are able to decide on…

1 point

… their organizational domain.

… their environmental field of action.

… whether the government sector affects them or not.

4.
Question 4
There are two main reasons why organizations care about their environment. Access to information and money.

1 point

True.

False.

5.
Question 5
Which field exhibits high uncertainty?

1 point

A

B

C

D

6.
Question 6
Which of the following statements are true?

1 point

While subenvironments within the company may differ, the ones within departments remain the same.

The need for collaboration with other firms might emerge through resource scarcity.

An increase in the environment’s complexity and rate of change implies a decrease in the number of positions and departments in firms.

Centralization is a main characteristic of a mechanistic organization design. Mechanistic design of firms is typically found in stable environments.

7.
Question 7
All industries pass through various life cycle stages. Amongst others, these stages can be measured in terms of changes in demand growth. The early stage of an industry is characterized by a few firms starting operations increasing their market shares. After major players in the market establish themselves, an industry becomes mature. In this phase, it gradually slows its growth, but continues to improve its profitability. Eventually, an industry will begin to decline, i.e. lose markets, sales and profits.

1 point

This is correct.

This is incorrect.

8.
Question 8
The automotive industry can be considered a mature industry. Therefore,…

1 point

… the dominant technology changes frequently to adapt to environmental changes.

… a company’s potential to differentiate its product range is limited.

… entry barriers are rather low which allows potential entrants to access the market quite easily.

… incumbent companies focus on generating cost advantages, e.g. by reducing unit costs through an increase in produced quantities.

9.
Question 9
The successful game developing start-up IS.to is hiring new employees. What should the HR manager responsible for recruitment in this knowledge-intense setting consider?

1 point

The future employee should be highly extrinsically motivated, as it is easier for managers to motivate employees extrinsically rather than intrinsically.

The applicant must possess a profund knowledge in his area of competence.

The manager should take care that the future employee has a high tolerance for setbacks, as tasks may require multiple attempts to complete.

The applicant should be willing to perform predefined tasks and not work autonomously.

The manager should design the wage structure in a way that closely links rewards to efforts.

10.
Question 10
If an emerging industry is successful, it can grow rapidly. Industries in the growth stage perform well and increase in sales and profits. Afterwards they will reach maturity. Mature industries tend to grow at a slower rate or not at all, while still providing stable profits. Eventually, a mature industry may become a declining industry if the basic product or service provided becomes obsolete.

1 point

That’s correct.

That’s incorrect.

 

 

Week- 4

Decide on a Corporate Office

1.
Question 1
Typical activities of the corporate office include…

1 point

… corporate planning.

… hiring.

… taxation.

… IT.

… R&D.

2.
Question 2
The corporate office is beneficial for firms…

1 point

… that have a higher coordination need due to integrated businesses.

… by providing leadership only via centralization.

… with a related portfolio.

… in which the main power lies at the top of the organization.

… in which the bottom-level expertise is larger than the top-level expertise.

3.
Question 3
The ____ firms move towards a related portfolio, the more likely that the corporate office uses a combination of direct strategic and operational control in addition to a financial control system.

1 point

more

less

4.
Question 4
The size of the corporate office

1 point

… is typically small in single business firms.

… tends to grow if left unchecked.

… is often large in firms with great portfolio relatedness.

… reflects its quality.

5.
Question 5
The presence of a corporate office fosters organizations’ speed and creativity in the value-creating process.

1 point

True.

False.

6.
Question 6
Consider obligatory activities regarding governance and regulations that all firms must care about, for example adhering to new banking regulations set by the central bank. According to the lecture, these should be carried out…

1 point

… by each unit.

… at company level.

… by the corporate office.

… by the head of each unit.

7.
Question 7
Forming alliances that benefit operating units is a way the corporate office can support good decision-making at a local level.

1 point

False.

True.

8.
Question 8
Typical activities that are managed by the corporate office…

1 point

… ensure consistency within an umbrella brand.

… are shared across units.

… public relations.

… involve career management of high performers.

… involve capital.

9.
Question 9
The primary roles of the corporate office comprise

1 point

… shared services.

… unit performance improvement.

… resource planning.

… compliance.

… maintenance.

10.
Question 10
If an activity is performed outside the operating unit affected, it is always centralized.

1 point

True.

False.

 

 

Week- 5

Design for Growth

 

1.
Question 1
Companies go through various life cycle stages.

1 point

The life cycle stages of companies and industries do not necessarily need to coincide.

Organizational life cycle stages comprise introduction, growth, maturity, and decline.

Organizational goals remain the same throughout the firm’s life cycle stages.

The firm enters into different life cycle stages as it grows and matures. This implies a continuous trade-off between flexibility and efficiency.

2.
Question 2
Organizational goals typically..

1 point

…focus on producing single products or services during the entrepreneurial stage.

… target establishing a complete organization within the elaboration stage.

… change throughout an organization’s life cycle.

… target market expansion in the entrepreneurial stage.

… include continued growth in the entrepreneurial stage.

3.
Question 3
Porter’s competitive strategies…

1 point

… reflect how environments determine the attractiveness of strategies.

… comprise low-cost leadership, differentiation, focused low-cost leadership and focused differentiation.

… differentiate amongst others between low cost and uniqueness.

… differ depending on the competitive scope of the environment.

… consider different forms of competitive advantage that organizations have.

4.
Question 4
Low-cost leadership implies a firm competing by distinguishing products or services from competitors. This can be achieved e.g. through respective advertising, designing distinctive product features, offering exceptional service, or providing a new technology. Is this statement true?

1 point

False.

True.

5.
Question 5
When designing for efficiency, a company can choose specific design elements in order to support its respective strategy. These include:

1 point

Employees frequently learning and experimenting, fluid and flexible organization, strong horizontal coordination.

Focus on flexibility, delegation of tasks, empowered employees and little control.

Decentralization, employee autonomy, a high degree of specialization, emphasis on efficient procurement and distribution systems.

Strong, centralized authority, tight control, standard operating procedures, routine tasks, emphasis on efficient procurement and distribution systems.

Empowered employees, direct contact between employees and customers, rewarding employees for creativity and risk taking.

6.
Question 6
DataGeek is a software company that has just entered the market. As it is situated in its entrepreneurial stage, it offers single software solutions which are inferior to those of the competing incumbents. What will DataGeek most likely do?

1 point

It will pursue a low-cost leadership strategy in order to gain market share and achieve stability.

In order to grow and innovate, it will take risks rather than focusing on stability.

7.
Question 7
Growth is important for organizations in order to …

1 point

… gain steady profits on the basis of an established, well diffused technology.

…be able to take on risk.

…compete globally.

…reduce unit costs by increasing the total quantity produced, i.e. leveraging economies of scope.

8.
Question 8
gaME is a game developing company which has grown significantly since it started its operations. As gaME competes in a very dynamic environment, its manager is thinking about changing certain design elements in order to enable a better and quicker response to changes and uncertainties. What should he do?

1 point

Design a learning organization, as this reduces frequent reorganizing.

Rely on empowered employees.

Increase response times to make sure the decision made is carefully considered and approved by the highest level of management.

Implement a more vertical structure in order to remain in charge of important decisions.

Focus on adaptability.

9.
Question 9
In the elaboration phase…

1 point

… managers prepare for the entrepreneurial phase.

… organizations require revitalization.

… a simplification of formal systems occurs.

… bureaucracy has reached its limit.

…a high degree of formal control is required.

10.
Question 10
In order to minimize frequent reorganizing, organizations today are increasingly being designed as learning organizations. This trend is especially common in …

1 point

… dynamic environments, where adaptability is essential.

… stable environments, where benefits to learning are high as they can be maintained over the course of time.

 

 

Final Exam

1.
Question 1
Typical characteristics of an organization are…

1 point

… a link to the external environment.

… a deliberately structured and coordinated activity.

… identifiable boundaries.

… that all transaction costs occur within their boundaries.

2.
Question 2
Which answer is correct regarding organizational challenges?

1 point

When providing information, managers must consider both extrinsic and intrinsic motivation of their employees.

Task division refers the problem of managing different tasks in a specific order to reach a goal in due time.

Classical organizational challenges are task division, task application, reward provision and information provision.

Public awareness for ethics and social responsibility is a current challenge that many organizations face.

3.
Question 3
Organization design is important for an organization’s performance. Which of the following statements are correct?

1 point

Effectiveness requires exact details about the required resources, whereas the goals and strategy do not require determination.

Efficiency and Effectiveness are both important for a clear structure and increasing performance.

Among others, stakeholder include the government, suppliers, customers, and competitors.

Efficiency is an important consideration of organizations. It tells us how how much input organizations need to reach a given goal.

4.
Question 4
Which statement is correct concerning structural dimensions?

1 point

Structural dimensions depend on the organization’s members and change when people leave.

Structural dimensions include the following aspects: formalization, hierarchy, centralization, specialization, professionalism and personnel ratio.

If there are many different levels in the organization chart, the organization has a low level of formalization.

Structural dimensions characterize the whole organization, including the organizational setting.

5.
Question 5
Which of the following statements about coordination and cooperation are true?

1 point

The cooperation problem surrounds the problem of how to harmonize different activities of individuals and units.

Mutual adjustment as coordination device describes the simplest form of coordination.

Performance incentives are cooperation devices reflecting high cost and control.

Coordination and cooperation problems exist due to organizational structure.

6.
Question 6
How would the correct departmentalization look like, if it is divided by tasks?

A

B

C

1 point

C.

B.

A.

7.
Question 7
Which statement is true concerning interdependence?

1 point

The sum of the value of executing two interdependent tasks separately is different than the value of doing both at once.

Agent interdependence implies that the value of agent A’s actions is independent from agent B’s action and vice versa.

By definition, task interdependence exists only between grouped tasks.

8.
Question 8
Which formula reflects complementarity between two tasks A and B?

1 point

U(A+B) > U(A) + U(B)

U(A+B) < U(A) + U(B)

U(A+B) = U(A) + U(B)

9.
Question 9
Complexity….

1 point

… and interdependence are synonyms.

… exists because there are no limits to understanding, managing, and learning about interdependencies between multiple tasks.

… exists when a system is made up of a large number of parts that interact in a non-simple way.

… is not expressed in the development of weather on earth. This example is commonly used to describe a complicated phenomenon.

10.
Question 10
In this course, we learned about when tasks complement and substitute one another. The same logic can also be applied to products. Which of the following statements are correct?

1 point

The charger delivered together with your mobile device is a substitute to your phone.

A garage is a complementary product to a car.

A chair and a table are complements.

11.
Question 11
What is true about division of labor (DOL)?

1 point

We connect customization with DOL.

Bounded rationality is the main reason for DOL.

DOL creates complex interdependencies which lead to task uncertainty and, thus, slow down information processing. By creating these interdependencies between tasks and agents, DOL complicates integration.

DOL restricts organizational differentiation.

12.
Question 12
Which statements are true about managing interdependencies?

1 point

Tasks can be clustered to reflect customization or specialization, which depends on the decomposability of task structure and/or products.

An example for customization is when a factory worker is involved in the production of many chairs, but always focuses only on executing only a certain task, such as assembling the chair seat.

Modularity is a strategy for managing complexity in decomposable systems with few interdependencies. This is why clustering tasks plays an important role.

Organizations can use modularity to minimize interdependencies surrounding tasks, individuals and products.

13.
Question 13
Which of the following statements is true?

1 point

Goals are the main source of human behavior and always reflect an individual aim.

Goals are typically horizontal in nature, i.e. compete with one another.

Representations are mental models of courses of action formed by learning and adapted via experience. They are very important in order to describe individual behavior in organizations.

Mary wants to write her doctoral thesis besides working in a regular job for a company. She is sure that earning some money will help ease her concern about financing her life and help her do well on her thesis. Working on the side however turns out to be very stressful. Mary has to invest time every evening and on the weekends in order to reach her goals. Her frustration rises, as she hardly has any times for her friends and family anymore. Mary hardly proceeds with her dissertation, as her motivation is very low.

This situation portrays a typical problem of choice process – high correspondence between representations and reality.

Organization design should keep individuals on the right track by influencing their goal frames, shaping representations and letting individuals decide alone what is the best for themselves.

14.
Question 14
Decentralization is typical if…

1 point

… employees want to take more responsibility.

… the environment is stable, which means that there is no pressure for fast decision making.

… the company is represented in many different locations.

… the organization provides services.

15.
Question 15
Which of the following sectors are part of the environment, that organizations interact directly with to achieve goals?

1 point

The international sector.

The raw materials sector.

The government sector.

The infrastructure sector.

The industry sector.

The market sector.

The human resources sector.

16.
Question 16
Which statement is true about the organizational environment?

1 point

Organizations can choose their environmental field of action, i.e. organization domain.

It is very important for organizations, primarily as it provides information and representations.

17.
Question 17
Which statements are true concerning a simple and unstable environment?

1 point

Zara, H&M, iTunes, Spotify find themselves in such environments.

The Ludwig-Maximilians-University finds itself in such an environment.

This environment is characterized by high-moderate uncertainty.

Complexity is high and environmental change is frequent.

18.
Question 18
Characteristics of a mechanistic design are…

1 point

…lower hierarchy of authority and control, few rules.

…centralization of knowledge and control of tasks.

…adjustment of tasks via employee teamwork.

… vertical communication.

19.
Question 19
Which statements are correct concerning strategy and environment?

1 point

Contracts between producers of complementary goods are an example of a strategic partnership. These can also take the form of joint ventures.

If the valued resources are very scarce, organizations should establish relationships and influence key sectors.

If there is a high degree of uncertainty, the organization should reduce positions and departments, build relationships and enable a high-speed response.

Firms should acquire control over resources to minimize dependence.

Using advertising and public relations does not support the establishment of favorable relationships.

20.
Question 20
Which statements are true concerning the importance of industry for an organization?

1 point

… If an industry is very mature the entry barriers are very low, as an established infrastructure eases entry.

The different industry life cycle stages are introduction, growth, maturity and stability.

In industries with network effects, firms that compete may also cooperate.

Industry characteristics and maturity determine the nature of competition.

21.
Question 21
Which of the following statements are correct about knowledge industries?

1 point

Granting individuals autonomy may be useful both in dealing with expert and non-expert individuals.

Employees are intrinsically motivated and may know more than their managers.

Tasks typically require a high level of knowledge and few attempts to complete.

High- rather than low-powered incentives are a key design solution.

22.
Question 22
DataCrave is a small, functionally organized software development company. It is active in just one line of business. Employees possess great expertise in their respective fields of competence. DataCrave’s management is considering to implement a corporate office, as it has heard about its many benefits. What would you advise?

1 point

Implement a corporate office.

Do not implement a corporate office.

23.
Question 23
Most conglomerates have a corporate office that is…

1 point

… large, focusing on internal audit and recognizing high performers within each business unit.

… small, focusing mostly on financial management as well as selecting leadership teams for each business unit.

… large, focusing on financial management only.

… large, focusing on recognizing and supporting high performers in each business unit.

… small, focusing on human resource management and executive development.

24.
Question 24
The corporate office increases business performance by performing activities that provide value to operating units by creating and sharing organizational capabilities.

1 point

True.

False.

25.
Question 25
The formalization stage describes the final stage within an organization’s life cycle.

1 point

False.

True.

26.
Question 26
Sony has entered the market for virtual reality and, therefore, constitutes a good example of an …

1 point

… established company operating in an established industry.

… established company operating in a young industry.

27.
Question 27
The cost advantage strategy is typically used by organizations …

1 point

…in mature industries.

…by innovators, i.e. young firms.

…in young industries.

…by companies in life cycle stages characterized by growth.

28.
Question 28
A firm’s focus on efficiency is influenced by its environment and the organizational life cycle stage it is currently in.

1 point

False.

True.

29.
Question 29
Firms in the formalization phase typically choose..

1 point

… a low-cost strategy.

… a differentiation strategy.

30.
Question 30
Functional structure is typically implemented in companies that are…

1 point

…large with multiple sets of consumers.

…offering fairly consistent product lines.

…selling high-priced products and services.

31.
Question 31
For some organizations, scale can actually decrease organizational efficiency, as …

1 point

…it may cause employees to work slower.

… coordination costs increase.

32.
Question 32
The entrepreneurial stage is characterized by a …

1 point

… horizontal structure.

… vertical structure.

33.
Question 33
A product division structure makes sense for organizations with multiple product lines that have similar underying business models.

1 point

True.

False.

34.
Question 34
In the formalization stage …

1 point

… managers typically delegate tasks.

… top management focuses on strategic issues and planning.

… middle management is concerned with operational tasks.