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.
In an organization, managers have the strongest property rights.
The workforce and managers are considered outside stakeholders.
In a product division structure, a centralized set of support functions services the needs
of a number of different product lines.
Escalation of commitment is a cognitive bias that leads managers to form judgments
based on small and unrepresentative samples.
Integrating mechanisms such as task forces and teams help increase the level of
standardization within an organization.
Specialists and generalists normally coexist in many environments.
Nonprogrammed decision-making requires much less search for information to find
solutions than does programmed decision-making.
The new product development plan submitted during stage 2 of a stage-gate
development funnel is reviewed by a cross-functional team of managers to review its fit
with the goals and strategies of the organization.
Differentiation and integration are both expensive in terms of the number of managers
employed and the amount of managerial time spent on coordinating organizational
activities.
A conversion process that is fully automated and that can be programmed in advance is
considered to be having low technical complexity.
The structure that organizations most commonly adopt to solve the control problems
that result from producing many different kinds of products in many different locations
for many different types of customers is the divisional structure.
Notifications of layoffs, severance payments, and long-term employment are examples
of property rights given to the workforce.
An individualized role orientation encourages obedience and conformity to rules and
norms.
Which of the following structures is most suitable for managing innovation in high-tech
organizations?
A) functional structure
B) market structure
C) product team structure
D) geographic structure
Which of the following refers to the way in which an organization designs its hierarchy
of authority and creates reporting relationships to link organizational roles and
subunits?
A) vertical integration
B) horizontal differentiation
C) vertical differentiation
D) horizontal integration
Intensive technology is based on ________ task interdependence.
A) random
B) pooled
C) sequential
D) reciprocal
In order to measure organizational effectiveness, an organization measures the amount
of time needed to get new products to market, and the amount of time spent
coordinating the activities of different departments. This indicates that the organization
is using the ________ approach to measure the organizational effectiveness.
A) internal systems
B) transactional
C) external resource
D) technical
In the long run, an organization that follows unethical practices is most likely to
________.
A) be more innovative
B) spend less on advertising or managerial salaries
C) be bureaucratized
D) spend more on research and development
A matrix structure involves ________ vertical control from the formal hierarchy and
________ horizontal control from the use of integrating mechanisms.
A) minimal; minimal
B) minimal; maximal
C) maximal; maximal
D) maximal; minimal
Which of the following strategies is most likely to be used by an organization using
mediating technology for reducing uncertainty?
A) creating slack resources
B) using vertical integration
C) increasing the number of customers served
D) producing only a narrow range of outputs
Which of the following goals is most likely to be set by an organization to measure
effectiveness when it uses the external resource approach to measure organizational
effectiveness?
A) improve customer service
B) reduce production costs
C) increase stock price
D) cut decision-making time
Which of the following terms refers to the degree to which forces in the specific and
general environments change quickly over time and thus contribute to the uncertainty
an organization faces?
A) environmental dynamism
B) environmental richness
C) environmental complexity
D) environmental naturalness
Which of the following characteristics of an organization is recommended by Weber’s
principles of bureaucratic structure?
A) loosely defined roles
B) a small span of control
C) use of standard operating procedures
D) decentralization
Dialectic inquiry involves ________.
A) restructuring the organization in order to make it more formal and centralized
B) diversifying the business of the organization into unrelated areas
C) creating a final plan out of many plans proposed by various teams
D) replacing the top-management team
When an organization is forced to rely on a small number of trading partners, the risk of
________.
A) bounded rationality increases
B) bounded rationality decreases
C) opportunism decreases
D) opportunism increases
Which of the following theories proposes that an organization must gain legitimacy in
the eyes of stakeholders in order to grow and survive?
A) Greiner’s theory
B) population ecology theory
C) institutional theory
D) contingency theory
The dangers associated with being the first to operate in a novel environment is known
as the ________.
A) external liability
B) liability of inertia
C) liability of newness
D) dependence liability
“Self-dealing” is defined as ________.
A) a manager acting in his own best interest, as opposed to the interests of the other
stakeholders
B) a cash bonus distributed privately amongst the top-management team
C) a manager promoting family members at the expense of others
D) a form of control that aligns the interests of principal and agent so both parties have
the incentive to work together to maximize organizational effectiveness
________ is an integration mechanism where a specific manager is given responsibility
for coordinating with managers from other subunits on behalf of his or her subunit.
A) Liaison role
B) Task force
C) Integrating role
D) Direct contact
Which of the following statements is true according to Weber’s principles of
bureaucratic structure?
A) Classroom training should be given to all the employees to improve their theoretical
knowledge.
B) In a stable environment, an organization should use a centralized organizational
structure with narrow spans of control.
C) A role’s task responsibility and decision-making authority should be clearly
specified.
D) A 360 degrees appraisal should be conducted for all the employees at least twice a
year.
Population ecologists have identified two sets of strategies that organizations can use to
gain access to resources and enhance their chances of survival in the environment.
Which of the following is one of these strategies?
A) vertical integration strategy
B) related diversification strategy
C) r-strategy
D) cost leadership strategy
Which of the following is the main reason behind companies losing their effectiveness?
A) depletion of resources
B) decreased bargaining power of suppliers
C) inability to change
D) decreased environmental dynamism
Rate-busters are employees who ________.
A) follow the group norms
B) work too quickly
C) work too slowly
D) break the formal rules
It is more difficult to increase the span of control when ________.
A) tasks are routine or similar
B) tasks are highly interrelated
C) the structure of the organization is highly decentralized
D) the organization operates in a stable environment
Which of the following terms refers to the conformity that emerges when like-minded
people reinforce one another’s tendencies to interpret events and information in similar
ways?
A) groupthink
B) devil’s advocacy
C) social loafing
D) satisficing