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) Environmental dynamism and environmental richness are directly proportional to
each other.
Which of the following is an example of a line function in an organization that produces
toys for children?
A) R&D
B) manufacturing
C) accounting
D) purchasing
According to Greiner’s model of organizational growth, to resolve the crisis of control,
an organization enters into the “growth through ________” stage.
A) delegation
B) coordination
C) creativity
D) direction
The design of a(n) ________ structure facilitates exploitative learning.
A) organic
B) product team
C) mechanistic
D) matrix
Which of the following statements is true regarding the “latent conflict” stage of
Pondy’s model of organizational conflict?
A) During this stage there exists a potential for conflict.
B) The stage of “manifest conflict” comes immediately after this stage.
C) Fighting and open aggression are common during this stage.
D) This stage comes immediately after the stage of “felt conflict.”
Under which of the following situations is it easier to increase the span of control?
A) The tasks are routine.
B) The tasks are complex.
C) The tasks are highly interrelated.
D) The tasks need to be performed by highly skilled professionals.
Behavior that follows accepted ethical rules confers a(n) ________ effect on an
individual or an organization.
A) observer-expectancy
B) framing
C) focusing
D) reputation
________ refers to conformity to specific models or examples, defined by sets of rules
and norms, that are considered proper in a given situation.
A) Standardization
B) Decentralization
C) Differentiation
D) Mutual adjustment
________ strategy involves specializing in one segment of a market and concentrating
all of the organization’s resources on that segment.
A) Vertical integration
B) Diversification
C) Horizontal integration
D) Focus
An auto manufacturer increased its effectiveness by implementing total quality
management (TQM). Many other companies have intentionally imitated this
manufacturer in order to increase their effectiveness. This is an example of ________
isomorphism.
A) coercive
B) mimetic
C) normative
D) natural
Organizational change is the process by which organizations move from their current or
present state to some desired future state to ________.
A) increase the bargaining power of their customers
B) increase environmental dynamism
C) increase their effectiveness
D) improve the performance of the related and supporting industries
The rational model of decision-making assumes that ________.
A) managers do not have access to all the information necessary to make the best
decision
B) managers have only a limited ability to process the information required to make
decisions
C) different managers have different preferences and values and will use different rules
to decide on the best alternative
D) managers are aware of all alternative courses of action and their consequences
An advantage of decentralization is that it ________.
A) ensures formalization of procedures and policies within an organization
B) promotes flexibility and responsiveness within an organization
C) keeps the organization focused on achieving its goals
D) simplifies the coordination process within an organization
Which of the following statements about the difference between transaction cost theory
and resource dependence theory is true?
A) Transaction cost theory proposes the use of a merger as an interorganizational
strategy but resource dependence theory advocates the use of joint venture.
B) Transaction cost theory explains how to manage symbiotic interdependencies but
resource dependence theory explain how to manage competitive interdependencies.
C) Transaction cost theory is a better predictor than a resource dependence theory of
why companies choose a certain form of interorganizational strategy.
D) Resource dependence theory proposes the use of strategic alliances, but transaction
cost theory recommends not using alliances.
Stakeholders will generally participate in an organization if ________.
A) the goods and services produced by the organization are of high quality
B) they receive inducements that exceed the value of the contributions they are required
to make
C) the organization has a well-defined structure and culture
D) the organization is large and takes advantage of economies of scale and economies
of scope
Which of the following socialization tactics leads to an institutionalized role
orientation?
A) informal
B) serial
C) disjunctive
D) random
According to Greiner’s model of organizational growth, during the “growth through
coordination” stage an organization experiences crisis of ________.
A) autonomy
B) inaction
C) red tape
D) control
Honda takes its strength in engine production and uses it to produce cars, motor bikes,
and lawnmowers, creating value in different markets. This is an example of a ________
strategy.
A) supplier-level
B) business-level
C) corporate-level
D) functional-level
According to Perrow an organization that performs routine tasks will have a ________.
A) flat hierarchy of authority
B) decentralized decision-making authority
C) mechanistic structure
D) low degree of standardization
An organization used to obtain supplies from 3,000 suppliers, but now deals with less
than 300. By making this change, the organization has reduced its environmental
________.
A) dynamism
B) complexity
C) richness
D) depth
A regional company markets ice cream, milk, and frozen yogurt. A ________ structure
is the most appropriate structure for this firm.
A) product division
B) multidivisional
C) product team
D) market
________ functions manage and improve the efficiency of an organization’s conversion
processes to create more value.
A) Managerial
B) Support
C) Production
D) Maintenance
Robert decided to create a Web site for buying and selling electronic products and he
only recruited people who could provide high-quality, customer-friendly service that
would appeal most to his Internet customers. This shows that Robert is trying to create
value at the ________ stage.
A) input
B) conversion
C) output
D) feedback