The rational model of decision-making ignores the ambiguity, uncertainty, and chaos
that is typically involved in decision-making.
Formation of organization results in increased transaction costs.
Multidivisional structures tend to be the tallest of all organizational structures.
To manage organizational politics and gain its benefits, an organization must establish a
balance of power in which alternative views and solutions can be offered and
considered by all parties and dissenting views can be heard.
A functional structure groups functions according to the specific demands of products,
markets, or customers.
An inside director of a company can be a professional director who holds positions on
the boards of many companies.
Subunit orientation is the tendency to view one’s role in the organization strictly from
the perspective of the time frame, goals, and interpersonal orientations of one’s subunit.
As per the moral rights model of ethics, an ethical decision is a decision that distributes
benefits and harms among stakeholders in a fair, equitable, or impartial way.
For successfully performing reengineering, it should be organized around outcomes, not
tasks.
The bureaucratic costs associated with managing unrelated diversification are much
greater than those associated with related diversification.
A product structure is a type of a functional structure.
Instead of focusing on an organization’s business processes, the managers of a
reengineered organization focus on the organization’s functions.
Organizational theory is primarily concerned with how an organization can outperform
its competitors.
A product team structure is more decentralized than a functional structure.
Population ecology theory seeks to explain the factors that affect the rate at which new
organizations are born (and die) in a population of existing organizations.
Differences in functional orientation is a major internal force that encourages
organizational change.
Cooptation is a strategy that manages symbiotic interdependencies by neutralizing
problematic forces in the specific environment.
An entrepreneur designs a new product. Which of the following strategies is most likely
to be pursued by the entrepreneur?
A) r-specialist
B) r-generalist
C) K-specialist
D) K-generalist
A fundamental premise of ________ theory is that when making decisions, managers
need to think in two related ways. First, they need to look forward and anticipate how
rivals will respond to their competitive moves and second, managers need to reason
backward to determine which moves their company should pursue today given their
assessment of how their rivals will respond to various future moves.
A) transaction cost
B) game
C) population ecology
D) institutional
Van Maanen and Schein’s model can be used by managers to determine ________.
A) appropriate terminal values for an organization
B) what principles to use in designing organizational hierarchy
C) how to structure the socialization experience for newcomers
D) appropriate instrumental values for an organization
The term ________ refers to the particular range of goods and services that the
organization produces, and the customers and other stakeholders it serves.
A) organizational design
B) organizational domain
C) organizational richness
D) organizational structure
________ is the process of moving a value creation activity that was performed inside
an organization to outside where it is done by another company.
A) Outsourcing
B) Cooptation
C) Franchising
D) Licensing
Which of the following employees would be considered to have a line role?
A) sales manager
B) executive vice president of finance
C) R&D director
D) vice president of production
Which of the following observations made by Parkinson led to the development of the
Parkinson’s law?
A) A division of labor increases efficiency.
B) As the number of levels in the hierarchy increases, the quality of the communication
improves.
C) The use of flat organization structure improves the motivation of the employees.
D) Managers seek to increase the number of their subordinates.
An organization’s environment will be more uncertain when ________.
A) specific and general forces in the environment become interconnected
B) the number of stakeholders in the specific environment decreases
C) the company decreases the number of products it manufactures
D) the company begins to follow the cost leadership strategy
A computer manufacturer uses its competence in product design to produce laser
printers. Which of the following strategies is being pursued by this company?
A) vertical integration
B) product development
C) market penetration
D) related diversification
Which of the following is a technique that organizations can use to help individuals to
understand the nature of their own and other people’s personalities and to use that
knowledge to improve their interactions with others?
A) restructuring
B) organizational cultivating
C) reengineering
D) sensitivity training
Which of the following stages of the organizational life cycle is associated with the
greatest chance of failure?
A) organizational growth
B) organizational death
C) organizational decline
D) organizational birth
________ interdependencies exist between an organization and its suppliers.
A) Competitive
B) Symbiotic
C) Distributive
D) Convolutional
As the hierarchy of an organization becomes taller, ________.
A) the number of managers decreases drastically
B) the process of coordination gets simplified
C) the complexity of the organization’s specific environment increases
D) managers begin to spend more and more time monitoring and supervising their
subordinates
________ refers to a situation in which the authority to make important decisions about
organizational resources and new projects is delegated to managers at all levels in the
hierarchy.
A) Formalization
B) Standardization
C) Integration
D) Decentralization
A manager decides to locate a manufacturing plant in a location that maximizes the
overall benefits to the stakeholders. Which model of ethics is being used by the
manager?
A) justice
B) moral rights
C) utilitarian
D) mutual association
Organizations that employ ________ technology make one-of-a-kind customized
products.
A) sequential-process
B) small-batch and unit
C) continuous-process
D) large-batch and mass production
According to Weitzel and Jonsson’s model of organizational decline, which of the
following is the first stage of decline?
A) blinded
B) crisis
C) dissolution
D) faulty action
Which of the following groups of stakeholders receives inducements in the form of
bonuses, status, and power?
A) shareholders
B) managers
C) suppliers
D) unions
________ occurs when an employee informs an outside person or agency, such as a
government agency, a newspaper, or television reporter, about an organization’s (its
managers’) illegal or immoral behavior.
A) Boundary spanning
B) Moonlighting
C) Whistle-blowing
D) Dumping