As compared to a large company, the degree of specialization in a small company is
higher.
An instrumental value is a desired end state or outcome that people seek to achieve.
During the growth stage of the product life cycle many consumers enter the market and
buy the product for the first time.
A terminal value is a desired mode of behavior.
The goal behind the change to a divisional structure is to create smaller, more
manageable subunits within an organization.
An increase in the level of environmental richness leads to an increase in the
environmental uncertainty.
An organization in which the hierarchy has many levels relative to the size of the
organization is known as an organic organization.
The growth stage of the product life cycle comes immediately after the mature stage.
Economies of scale are cost savings that result when an organization is able to use
underutilized resources more effectively because they can be shared across several
different products or tasks.
The interdependencies that exist between an organization and its suppliers and
distributors are known as competitive interdependencies.
Change usually benefits some people, functions, or divisions at the expense of others.
The purpose of rites of integration is to build common norms and values.
According to Greiner’s model of organizational growth, during the “growth through
direction stage” an organization experiences a crisis of autonomy.
According to Weber’s third principle of bureaucratic structure, a role’s task
responsibility and decision-making authority and its relationship to other roles in the
organization should be clearly specified.
Employee roles are clearly defined in a matrix structure.
Organizational politics is an integral part of decision-making in an organization.
Operative goals can be either short or long term in nature.
As an organization that uses a functional structure grows, ________.
A) the extent of division of labor decreases
B) the process of communication simplifies
C) the cost of each function’s contribution to the development of each product becomes
increasingly difficult to measure
D) the vertical differentiation within the organization decreases
Which of the following organizational structures is most likely to be used by an
organization that uses intensive technology?
A) functional structure
B) geographic structure
C) product team structure
D) market structure
Which of the following strategies is most likely to help a company to avoid the problem
of opportunistic suppliers?
A) vertical integration
B) product differentiation
C) related diversification
D) market penetration
A production department in a company has been experiencing several production
problems for the past few months. When production managers investigate, they
discover that materials management always buys inputs from the lowest-cost sources of
supply and makes no attempt to develop the kind of long-term relationships with
suppliers that can raise the quality and reliability of inputs. At which stage of Pondy’s
model of organizational conflict is the company in?
A) latent conflict
B) perceived conflict
C) conflict aftermath
D) manifest conflict
________ are standards or styles of behavior that are considered acceptable or typical
for a group of people.
A) Norms
B) Instrumental values
C) Terminal values
D) Beliefs
Companies implementing which of the following global expansion strategies are most
likely to require the most complex structure and control system?
A) multidomestic strategy
B) international strategy
C) global strategy
D) transnational strategy
________ strategy is a plan to use and combine an organization’s functional core
competences to position it so it has a competitive advantage in its domain or segment of
its industry.
A) Functional-level
B) Corporate-level
C) Business-level
D) Environmental-level
Which of the following is the least formal and the least direct way to manage symbiotic
interdependencies with suppliers and customers?
A) merger
B) developing reputation
C) cooptation
D) minority ownership
A pharmaceutical company concentrates on producing drugs for diabetes patients. This
company is pursuing a strategy of ________.
A) specialism
B) licensing
C) outsourcing
D) vertical integration
A poor environment is most likely to lead to ________.
A) a decrease in the level of environmental complexity
B) an increase in the level of environmental stability
C) an increase in the level of profit
D) an increase in the level of environmental uncertainty
A disadvantage of decentralization is that it ________.
A) reduces the level of flexibility within an organization
B) makes lower level managers less responsive
C) fails to motivate the lower-level managers in an organization
D) makes planning and coordination very difficult
Which of the following is an example of unobtrusive power?
A) the power possessed by a CEO of a company
B) the power possessed by a subunit within a company because of its specialized
knowledge
C) the power possessed by a dominant coalition to influence the decision-making
process in its favor
D) the power possessed by a person because of his or her ability to control the
distribution of resources
Which of the following statements is true regarding revolutionary change?
A) One of the methods used for accomplishing revolutionary change is creation of
empowered flexible work groups.
B) Revolutionary change is gradual and incremental.
C) Revolutionary change involves a constant attempt to improve, adapt, and adjust
strategy and structure incrementally to accommodate to changes taking place in the
environment.
D) Revolutionary change is broadly focused.
Which of the following tools is most likely to be used during project management?
A) BCG matrix
B) Porter’s five forces model
C) GANTT chart
D) GRIT model
Which of the following strategies of managing competitive resource interdependencies
involves a regulatory body that allows organizations to share information and regulate
the way they compete?
A) cartel
B) third-party linkage mechanism
C) joint venture
D) cooptation
Which of the following terms refers to the number of subordinates a manager directly
supervises?
A) span of control
B) chain of authority
C) degree of standardization
D) level of centralization
Which of the following statements is most likely to be true regarding a process that has
a high technical complexity?
A) Such processes rely more on human skills and less on machines.
B) In such a process, work activities cannot be programmed in advance.
C) Outputs that result from such processes can be predicted accurately.
D) Such processes are very costly and they cannot be changed once established.
Which of the following statements is true regarding a divisional manager?
A) A divisional manager is a part of the top-management team.
B) Divisional managers act as outside directors for the company.
C) A divisional manager is not a corporate manager.
D) A marketing manager is an example of a divisional manager.
Which of the following structures is most likely to be the flattest?
A) mechanistic structure
B) matrix structure
C) bureaucratic structure
D) transactional structure
Explain the cognitive bias of illusion of control.
Differentiate between inside directors and outside directors.
Define innovation.
What are the advantages of a multidivisional structure?
Discuss the significance of decentralization.
List the outside stakeholders of an organization.