Organizational Theory, Design, and Change 7th Edition

Which of the following functions is most likely to be true regarding a product champion? A) A product champion is always appointed by the top-management team in an organization. B) A product champion takes ownership of the project. C) A product champion is the head of the R&D department in an organization. D) A

Which of the following factors is most likely to cause organizational inertia? A) risk aversion B) decentralized decision-making C) employee empowerment D) flat hierarchy of authority Answer: A Answer: A Answer: A Which of the following terms refers to the goals that explain why the organization exists and what it should be doing? A) mission B) tactical goal C) operative

The environment in which an organization operates is a major source of uncertainty. Answer: TRUE Answer: TRUE Answer: TRUE "Excellence" is an example of an instrumental value. Answer: FALSE Answer: FALSE Answer: FALSE Fixed socialization tactics allow newcomers to learn on the job, as members of a team. Answer: FALSE Answer: FALSE Answer: FALSE Divisional managers are not corporate

Cognitive dissonance is the state of discomfort or anxiety that a person feels when there is an inconsistency between his or her beliefs and actions. Answer: TRUE Answer: TRUE Answer: TRUE In an organization, managers have the strongest property rights. Answer: FALSE Answer: FALSE Answer: FALSE The workforce and managers are considered outside stakeholders. Answer: FALSE Answer: FALSE Answer:

Developing competitive advantage increases an organization's ability to obtain scarce resources. Answer: TRUE Answer: TRUE Answer: TRUE Ego-defensiveness is a cognitive bias that leads managers to interpret events in such a way that their actions appear in the most favorable light. Answer: TRUE Answer: TRUE Answer: TRUE The technical approach to measuring organizational effectiveness evaluates an

According to Charles Perrow, which of the following dimensions underlie the difference between routine and nonroutine or complex tasks? A) task variability and task interdependence B) task variability and task analyzability C) task analyzability and technical complexity D) task interdependence and task analyzability Answer: B Answer: B Answer: B Which of the following is an impediment to

As compared to a large company, the degree of specialization in a small company is higher. Answer: FALSE Answer: FALSE Answer: FALSE An instrumental value is a desired end state or outcome that people seek to achieve. Answer: FALSE Answer: FALSE Answer: FALSE During the growth stage of the product life cycle many consumers enter the

In terms of Thompson's model of technology, the move from reciprocal to sequential to pooled task interdependence between people or subunits increases the degree to which the actions of one subunit directly affect the actions of others. Answer: FALSE Answer: FALSE Answer: FALSE The critical path method is generally used to identify the

In a multidivisional structure, each division is independent and self-contained. Answer: TRUE Answer: TRUE Answer: TRUE An organization can reduce environmental uncertainty by entering into global markets. Answer: FALSE Answer: FALSE Answer: FALSE The embryonic stage comes after the growth stage in a product life cycle. Answer: FALSE Answer: FALSE Answer: FALSE According to Weitzel and Jonsson's model of

Competitive advantage is the ability of one company to outperform another because its managers are able to create more value from the resources at their disposal. Answer: TRUE Answer: TRUE Answer: TRUE All stakeholder groups are equally important for an organization. Answer: FALSE Answer: FALSE Answer: FALSE A divisional structure is a design that groups people

Which of the following statements is true regarding a product team structure? A) Use of product team structure increases the product development time. B) In a product team structure divisions are organized according to the requirements of the different locations in which an organization operates. C) A product team structure is more decentralized

Jane works for a manufacturing plant that has been under pressure to reduce pollution. Jane increased her knowledge of environmental laws in order to help the company follow waste disposal laws. Which of the following political tactics is being used by Jane? A) co-optation B) increasing control over resources C) increasing nonsubstitutability D) controlling

The rational model of decision-making ignores the ambiguity, uncertainty, and chaos that is typically involved in decision-making. Answer: TRUE Answer: TRUE Answer: TRUE Formation of organization results in increased transaction costs. Answer: FALSE Answer: FALSE Answer: FALSE Multidivisional structures tend to be the tallest of all organizational structures. Answer: TRUE Answer: TRUE Answer: TRUE To manage organizational politics and

Which of the following is a disadvantage of a multidivisional structure? A) A multidivisional structure decreases division of labor which ultimately decreases organizational effectiveness. B) It becomes difficult for corporate headquarters to identify the divisions in which an investment of capital will yield the highest returns. C) A multidivisional structure is not suitable

The term population density refers to the number of organizations that have the same rate of growth in a particular industrial segment. Answer: FALSE Answer: FALSE Answer: FALSE The more an organization pursues vertical integration the larger it becomes, and the bureaucratic costs associated with managing the strategy rise sharply. Answer: TRUE Answer: TRUE Answer:

An ethical dilemma is the quandary people experience when they must decide whether or not they should act in a way that benefits someone else, even if it harms others and isn't in their own interest. Answer: TRUE Answer: TRUE Answer: TRUE The first stage of Pondy's model of organizational conflict is perceived

Tasks associated with a role are clearly defined in a mechanistic structure. Answer: TRUE Answer: TRUE Answer: TRUE The forces that constitute the specific environment shape the general environment and affect the ability of all organizations in a particular environment to obtain resources. Answer: FALSE Answer: FALSE Answer: FALSE According to Philip Anderson and Michael Tushman,

Servicing the needs of new kinds of customer groups and tailoring products to suit them are relatively simple in a functional structure. Answer: FALSE Answer: FALSE Answer: FALSE In a bureaucratic organization, individuals can be held accountable for what they do, and such accountability reduces the transaction costs. Answer: TRUE Answer: TRUE Answer: TRUE Intrapreneurs are entrepreneurs

A functional structure has greater vertical and horizontal differentiation than a divisional structure and employs more complex integrating mechanisms. Answer: FALSE Answer: FALSE Answer: FALSE The term "organizational inertia" refers to the tendency of an organization to increase the level of production in order to take advantage of economies of scale. Answer: FALSE Answer:

Which of the following statements is definitely true regarding environmental dynamism? A) As a company decreases the number of suppliers, its environmental dynamism increases. B) A company can reduce its environmental dynamism by selecting a decentralized organizational structure. C) When a company enters into a foreign market, the dynamism of its environment increases. D)

The Aston Studies concluded that ________ in determining an organization's choice of structure. A) external environment of the organization is more important than organizational size B) organizational size is more important than technology C) organizational culture is more important than organizational size D) organizational technology is more important than organizational culture Answer: B Answer: B Answer:

A culture based on entrepreneurial norms and values is less likely to encourage innovation than a culture that is conservative and bureaucratic. Answer: FALSE Answer: FALSE Answer: FALSE A collateral organizational structure is an informal organization of managers set up parallel to the formal organizational structure to 'shadow" the decision-making and actions of

Typically, the manufacturing function in an organization uses an organic structure and decentralized decision-making. Answer: FALSE Answer: FALSE Answer: FALSE Both collusions and cartels are illegal in the United States. Answer: TRUE Answer: TRUE Answer: TRUE The strategy of related diversification involves an organization entering a new domain in which it can use one or more

Trademarks give their owner the sole legal right to use certain names or symbols and control the use to which they are put. Answer: TRUE Answer: TRUE Answer: TRUE Isomorphism is normative when organizations intentionally imitate and copy one another to increase their legitimacy. Answer: FALSE Answer: FALSE Answer: FALSE Typically, the sales function in an

Product team structure and matrix structure are especially suitable for managing innovation in high-tech organizations. Answer: TRUE Answer: TRUE Answer: TRUE Flattening the hierarchy, so that authority relationships are clearly defined, and decentralizing authority can remove a major source of organizational conflict. Answer: TRUE Answer: TRUE Answer: TRUE The incrementalist model of decision-making, developed by Henry

Game theory is particularly useful in analyzing situations where a company is competing against a limited number of rivals in its domain and they are highly interdependent. Answer: TRUE Answer: TRUE Answer: TRUE A patent is valid for a period of 75 years from the date it is issued by the U.S. Patent

Which of the following tools is most likely to help managers develop a structured process for evaluating different new product development proposals and deciding which to support? A) Pareto chart B) stage-gate development funnel C) critical path method D) fishbone diagram Answer: B Answer: B Answer: B Which of the following statements is true regarding a functional structure? A)

An interlocking directorate is a linkage that results when a director from one company sits on the board of another company. Answer: TRUE Answer: TRUE Answer: TRUE Continuous-process technology is associated with the tallest hierarchy of authority. Answer: TRUE Answer: TRUE Answer: TRUE The plant equipment possessed by a company is considered to be an organizational

Environmental complexity is a function of the strength, number, and interconnectedness of the specific and general forces that an organization has to manage. Answer: TRUE Answer: TRUE Answer: TRUE Cooptation is a strategy used for managing competitive resource interdependencies. Answer: FALSE Answer: FALSE Answer: FALSE Organizations are very status conscious in mechanistic structures. Answer: TRUE Answer: TRUE Answer: TRUE The

Exploration is a more radical learning strategy than exploitation. Answer: TRUE Answer: TRUE Answer: TRUE Specialist organizations concentrate their competences and skills to compete for resources in a single niche. Answer: TRUE Answer: TRUE Answer: TRUE Cartels and collusion increase the stability and richness of an organization's environment and reduce the complexity of relations among competitors. Answer:

A strategy in which an organization takes over and owns its distributors is known as backward vertical integration. Answer: FALSE Answer: FALSE Answer: FALSE At the felt conflict stage in Pondy's model, subunits in conflict quickly develop an emotional response toward one another. Answer: TRUE Answer: TRUE Answer: TRUE Copyrights are typically granted to people who

Role ambiguity occurs when two or more people have different views of what another person should do and, as a result, make conflicting demands on the person. Answer: FALSE Answer: FALSE Answer: FALSE A multidivisional structure is characterized by a corporate headquarters staff which is composed of corporate managers who are responsible for

When subordinates tasks are complex and dissimilar, a manager's span of control needs to be wide. Answer: FALSE Answer: FALSE Answer: FALSE A network structure increases the cost of production. Answer: FALSE Answer: FALSE Answer: FALSE As the number of levels in its managerial hierarchy increases, it becomes difficult for the organization to control its members.

Rites of enhancement ________. A) allow an organization to change its norms and values B) motivate organizational members to be committed to the company's norms and values C) build common bonds between organizational members D) encourage members to learn and internalize the organization's norms and values Answer: B Answer: B Answer: B Which of the following statements

Which of the following statements is most likely to be true regarding the growth stage of a product life cycle? A) The growth stage of a product life cycle comes after the maturity stage. B) During the growth stage, demand for a product is typically replacement demand because incremental innovation has resulted

Small-batch technology has a higher level of technical complexity than large-batch technology. Answer: FALSE Answer: FALSE Answer: FALSE The keiretsu system is a form of minority ownership. Answer: TRUE Answer: TRUE Answer: TRUE Functional structure provides people with the opportunity to learn from one another and become more specialized and productive. Answer: TRUE Answer: TRUE Answer: TRUE "Felt conflict" is

Mediating technology at the organizational level is also found in organizations that use franchise arrangements to organize their businesses. Answer: TRUE Answer: TRUE Answer: TRUE Team building does not focus on what the group is trying to achieve. Answer: TRUE Answer: TRUE Answer: TRUE A flexible work team is self-managed. Answer: TRUE Answer: TRUE Answer: TRUE According to Kotter

Which of the following technologies simplifies the process of developing prototypes? A) CAD B) CAMM C) JIT inventory systems D) CIM Answer: A Answer: A Answer: A Which of the following statements is true regarding nonprogrammed decision-making? A) Nonprogrammed decision-making is performed with the help of standard operating procedures. B) Nonprogrammed decision-making involves selecting the most effective-easy, repetitive, and

A manager obtains an assignment that brings him into contact with many managers and many functions so that he can obtain information that can be used to make him and his function nonsubstitutable. Which of the following political tactics is being used by this manager? A) using unobtrusive power B) creating a

Which of the following terms refers to the pattern of decisions and actions that managers take to use core competences to achieve a competitive advantage and outperform competitors? A) product formation chain B) PERT chart C) strategy D) value engineering Answer: C Answer: C Answer: C In the case of a bureaucracy, if managers fail to control

Attitudinal structuring is a process of restructuring an organization so as to remove the cause of conflict among subunits. Answer: FALSE Answer: FALSE Answer: FALSE Organizational isomorphism is the process by which organizations in a population become more alike or similar. Answer: TRUE Answer: TRUE Answer: TRUE To manage the change process to get conflicts resolved