As the CEO of a publicly traded company, you have worked hard to build strong teams within the organization. Unfortunately, the pandemic has hit global sales and the board is receiving pressure from several large shareholders to cut costs as a way to increase short-term profits and boost the company's stock price. Currently personnel expenses represent the largest expense by far and the board is pushing for a reduction in the workforce. Given your efforts to build the team, you are reluctant to lay-off any employee, understanding the impact layoffs will have on team morale. This conflict between the board and you illustrates which of the following? A. A Principal-Agent problem B. An Open Systems problem C. An Elaboration Stage problem D. A Closed Systems problem The new start-up, Awesome Design is a design company that provides high levels of customization in its products. To achieve this, Awesome Design focuses on its design capabilities and outsources much of the other work to a group loosely connected, autonomous, work units. What type of organizational structure would best describe Awesome Design? A. network B. functional C. matrix D. hybrid Which of the following is the most complex integrating mechanism to facilitate coordination across different parts of the organization? A. Matrix structures B. Direct contact C. Task forces D. Liaison roles Microsoft's reorganization in 2013 (i.e., "One Microsoft") exemplified which of the following principles: A. Structure should follow strategy B. Multi product organizations can easily implement functional structures C. Adopting the organizational structure of a successful competitor is typically a good idea D. Functional structures tend to work better than divisional structures SmithCo is considering changing their organizational structure. Under what conditions is SmithCo likely to benefit from a matrix structure? A. SmithCo has a low cost strategy. B. SmithCo has the need for deep functional expertise as wel as adaptability of its products. C. SmithCo has a single product and wants to focus on efficiency D. SmithCo operations call for clear accountability. When an organization uses a functional structure, all of the following are likely to be true, except? A. The organization will likely be slower to react to environmental changes. B. The organization will likely increase organizational efficiencies. C. The organization will likely have broad job functions and tend to reward generalists. D. The organization likely has limited products or services