The term population density refers to the number of organizations that have the same
rate of growth in a particular industrial segment.
The more an organization pursues vertical integration the larger it becomes, and the
bureaucratic costs associated with managing the strategy rise sharply.
Use of multidivisional structure avoids duplication of organizational activities.
Incremental technological change refers to a fundamental shift in technology that
revolutionizes products or the way in which they are produced.
Managers of a flat organization possess relatively less authority and responsibility than
those of a tall organization.
Task variability is low when a task is highly standardized or repetitious so a worker
encounters the same situation time and time again.
At the latent stage of Pondy’s model of organizational conflict, no outright conflict
exists.
The force-field theory states that organizations have a tendency to overestimate their
degree of influence over other external events.
An organizational role is a set of task-related behaviors required of a person by his or
her position in an organization.
A functional-level strategy is a plan to combine functional core competences in order to
position the organization so that it has a competitive advantage in its domain.
Differentiation is the process of establishing and controlling the division of labor in an
organization.
Patents confer a monopoly right on their owner.
As a company begins to produce a wider variety of products for different groups of
customers, its environmental complexity goes on decreasing.
If tasks are routine and similar so that all subordinates perform the same task, then the
span of control should be small.
Continuous-process technology is typically used for producing one-of-a-kind
customized products.
Exploration involves organizational members learning ways to refine and improve
existing organizational activities and procedures to increase effectiveness.
Top-level managers make all the important decisions in an organization. This
organization is said to be ________.
A) differentiated
B) formalized
C) centralized
D) decentralized
________ are the owners of an organization, and, as such, their claim on organizational
resources is often considered superior to the claims of other inside stakeholders.
A) Employees
B) Customers
C) Shareholders
D) Trade unions
According to Weitzel and Jonsson’s model of organizational decline, the five stages of
decline are ________.
A) blinded, faulty action, crisis, deregulation, and death
B) interruption, direction, crisis, faulty action, and dissolution
C) disruption, inaction, coordination, dissolution, and death
D) blinded, inaction, faulty action, crisis, and dissolution
Which of the following types of production technologies, as identified by Joan
Woodward, scores lowest on the dimension of technical complexity?
A) continuous-process technology
B) large-batch and mass production technology
C) small-batch and unit technology
D) sequential-process technology
Which of the following statements is true regarding organizational change?
A) Planned organizational change is normally targeted at increasing environmental
dynamism.
B) Organizational change should take place only when the company is operating in loss.
C) Organizational change is aimed at increasing the effectiveness of the organization.
D) Organizational change typically involves changing the technical capabilities of the
company without changing its human and functional resources.
Which of the following statements is true regarding a transnational strategy?
A) A transnational strategy is focused on achieving both local responsiveness and cost
reduction.
B) Typically, the organizational structure used by a company implementing a
transnational strategy is less complex than that used by a company implementing a
multidomestic strategy.
C) A transnational strategy does not require integration and coordination of activities on
a global level.
D) A global geographic structure is typically used by a company that is implementing a
transnational strategy.
Which of the following technologies as identified by Thompson, is based on a work
process where input, conversion, and output activities must be performed in series?
A) mediating technology
B) small-batch technology
C) long-linked technology
D) intensive technology
Which of the following terms refers to the authority that an organization gives to its
members to receive and use organizational resources?
A) enhancement rights
B) patents
C) property rights
D) licenses
As the Tasty Bites restaurant grew, the owners grouped people together on the basis of
their common skills and expertise. In this case, which of the following types of
organizational structures is used by the restaurant?
A) matrix structure
B) product structure
C) functional structure
D) divisional structure
According to Greiner’s model of organizational growth, which of the following
statements is true regarding the “growth through delegation” stage?
A) This is the first stage of growth in the Greiner’s model of organizational growth.
B) During this stage an organization experiences a crisis of red tape.
C) Organizations solve the crisis occurring in this stage by moving into the “growth
through coordination” stage.
D) This stage is immediately followed by the “growth through creativity” stage.
Robert Downs, the CEO of a manufacturing firm, wants to improve the communication
between marketing and production departments. He asks one manager from each
department to coordinate the communication between these departments. Identify the
integrating mechanism used in this case.
A) task force
B) integrating department
C) direct contact
D) liaison role
According to contingency theory, in order to manage its environment effectively, an
organization should ________.
A) use mechanistic structures to make organizational decisions
B) design its internal structure to control the external environment
C) concentrate all authority within the top-management level
D) limit the extent of internal differentiation and integration
Which of the following statements is true regarding the incrementalist model?
A) According to this model decision-making is a process that may evolve unpredictably
in an unstructured way and it forces decision makers to think in a haphazard and
intuitive way.
B) This model works best in an environment that changes suddenly or abruptly.
C) This model implies that managers rarely make major decisions that are radically
different from decisions they have made before.
D) According to this model, decision makers weigh every possible alternative course of
action and choose the best solution.
Which of the following statements is true regarding organizational design?
A) An organizational design once formed remains constant throughout the life of the
organization.
B) Every organization must identify the single perfect design that fits its needs and then
implement it.
C) Once an organizational design is in place, it hinders the process of organizational
change.
D) Organizational design deals with structure and culture of the organization.
Which of the following is generally used to solve agency problems?
A) self-dealing
B) stock-based compensation schemes
C) a highly centralized organization structure
D) a matrix organization structure
According to Greiner’s model, an organization experiences crisis of leadership in
“growth through ________” stage.
A) collaboration
B) creativity
C) coordination
D) delegation
An organization that has few levels in its hierarchy relative to its size is known as a
________ organization.
A) tall
B) flat
C) formalized
D) standardized
Which of the following statements is true regarding reengineering?
A) The process of reengineering is used to achieve evolutionary change.
B) Reengineering involves decentralizing decision-making to the point where the
decision is made.
C) Reengineering involves improving an organization’s functions by focusing on the
functions in isolation from one another.
D) The reengineering process is started with the product and not the customer.
Which of the following types of strategic alliances is the least formal?
A) long-term contract
B) network
C) minority ownership
D) joint venture
The ________ approach allows managers to evaluate the organization’s ability to be
innovative and function quickly and responsively.
A) external resource
B) internal systems
C) technical
D) transaction
A CEO of a company feels that he is only responsible for following the law and
standard business practices. His company will most likely ________.
A) take an obstructionist stance on social responsibility
B) take a defensive stance on social responsibility
C) use socialization tactics that lead to an individualized role orientation
D) commit unethical acts
Which of the following statements is true regarding a cartel?
A) Forming a cartel is illegal in the United States.
B) A cartel is a strategic alliance among two or more organizations that agree to
establish and share the ownership of a new business.
C) A cartel is formed by companies to manage their symbiotic resource
interdependencies.
D) Participating in a cartel decreases the richness of a company’s environment.
Managers and employees frequently move from one organization to another and bring
with them the norms and values of their former employers. This leads to ________
isomorphism.
A) reciprocal
B) coercive
C) normative
D) mimetic
Explain why shareholders are considered the stakeholder group with ultimate authority
over the use of a corporation’s resources.
List four examples of factors or entities impacting the organization’s environment.
What are the four types of technologies identified by Perrow on the basis of task
variability and task analyzability?
What are operative goals?
A large company was successful, but has been losing market share and laying off
workers. Product development has been slow. What could be the source of the problem,
and what can be done to resolve it?
Describe the various strategies that can be used for managing competitive
interdependencies.
Compare and contrast mechanistic structures and organic structures.
Explain how effective culture is an important source of competitive advantage?
Differentiate between matrix structure and product team structure.
What is the major difference between a tall organization and a flat organization?