Game theory is particularly useful in analyzing situations where a company is
competing against a limited number of rivals in its domain and they are highly
interdependent.
A patent is valid for a period of 75 years from the date it is issued by the U.S. Patent
Office.
As compared to organic structures, mechanistic structures are less resistant to change.
Instrumental values help the organization achieve its terminal goals.
The alliance resulting from a network is less formal than the alliance resulting from a
contract.
Competition is a force that resists change.
A heavyweight team leader remains under the control of a functional department head
and in order to get access to resources, he or she must pursue the heads of functional
departments to obtain them.
According to Prahalad and Hamel, it is the level of knowledge a firm possesses that
leads to innovation and competitive advantage and not the velocity with which the
knowledge is circulated in the firm.
Generally, programmed decision-making is used by the organizations to find solutions
to changing and uncertain conditions.
The system of hierarchical reporting relationships in an organization is known as a
chain of command.
The greater the number of hierarchical levels in an organization, the lower the
bureaucratic costs.
Typically, a codification approach to knowledge management is pursued when an
organization needs to provide customized products or solutions to clients, when
technology is changing rapidly, and when employees rely much more on know-how,
insight, and judgment to make decisions.
Formalization is more appropriate in environments that require high levels of mutual
adjustment.
Projection is a cognitive bias that deceives people into assuming that extreme instances
of a phenomenon are more prevalent than they really are.
Organizations that provide essentially the same goods and services will always have
similar organizational cultures.
Which of the following takes place during the first stage of a stage-gate development
funnel?
A) The new product idea is evaluated by a top-management committee.
B) A detailed new product development plan that contains the detailed information
about financial objectives is submitted for review.
C) The product development proposal is reviewed in terms of its fit with the goals and
strategies of the organization.
D) Organizational resources are allocated for developing a prototype of the product.
An organization’s ________ determine how effectively managers are able to coordinate
and motivate workers.
A) environmental factors
B) core competences
C) structure and culture
D) competitive advantages
Which of the following is the third stage of Pondy’s model of organizational conflict?
A) latent conflict
B) perceived conflict
C) felt conflict
D) manifest conflict
To be effective, an organization must ________.
A) satisfy interests of all the stakeholders equally
B) consider employees as the most important stakeholder group and give priority to
their interests over the interests of all the other stakeholders
C) at least minimally satisfy the interests of all the stakeholders
D) consider customers as the most important stakeholder group and give priority to
their interests over the interests of all the other stakeholders
Which of the following terms refers to the power possessed by the people and subunits
that control the flow of resources through an organization’s production system?
A) centrality
B) co-optation
C) nonsubstitutability
D) referent power
Which of the following socialization tactics involves providing newcomers with role
models and mentors?
A) serial
B) disjunctive
C) informal
D) random
Which of the following definitions best describes a contingency?
A) It is an event occurred in the past which resulted in heavy profits for the company.
B) It is an event due to which a company identifies its competitive advantage.
C) It is an event that might occur and must be planned for.
D) It is an event occurred in the past which resulted in heavy loss for the company.
A cell-phone manufacturer forms a temporary committee to find new ways to position
its products. Identify the integrating mechanism used in this case.
A) integrating role
B) team
C) task force
D) integrating department
An organization that increasingly depends on other organizations will tend to adopt
their values and norms so it will become increasingly similar to them. This is an
example of ________.
A) coercive isomorphism
B) environmental institutionalization
C) normative isomorphism
D) natural selection
Which of the following is most likely to promote innovation in an organization?
A) adopting a product team structure
B) increasing vertical differentiation
C) decreasing the flexibility of the organization
D) increasing the number of levels in the organizational hierarchy
Which of the following statements is true regarding a product division structure?
A) In a product division structure, each division is independent and self-contained.
B) Use of product division structure leads to duplication of organizational activities.
C) Typically, a product division structure is used by an organization which produces a
wide variety of complex products.
D) In a product division structure, support functions are centralized at the top of the
organization.
A finance manager observes that the return-on-investment (ROI) for his organization is
only 10 percent compared to the industry average of 20 percent. The manager informs
top managers about her observation. According to this information, this organization is
in which stage of the action research process?
A) diagnosing the organization
B) determining the desired future action
C) eliminating obstacles to change
D) selecting a strategy for change
The use of robots is integral to ________.
A) CAD
B) CAMM
C) JIT inventory systems
D) CIM
An automobile company modifies its existing automated production line so that it can
manufacture two more models of cars using the same facility. This shows that the
automobile manufacturer is planning to take advantage of ________.
A) economies of scope
B) deferred revenues
C) transaction costs
D) elasticity of supply
In effect, ________ are the agents or employees of shareholders.
A) suppliers
B) customers
C) managers
D) unions
Which of the following factors is most likely to increase vertical differentiation within
an organization because it leads to the creation of many subunit hierarchies within the
organization?
A) increasing level of formalization
B) increasing employee empowerment
C) increasing horizontal differentiation
D) increasing upward communication but decreasing downward communication
By developing a knowledge management system, managers want to provide employees
more with information on “who to go to” to solve a specific problem rather than
describing the steps to solve a problem. They want to do this because most of their
problems are too complex to rely on standard procedures. This information indicates
that the organization is planning to implement a ________ approach to knowledge
management.
A) systems thinking
B) codification
C) personalization
D) learning organization
A manager at an automobile plant had two suppliers that delivered defective parts. She
now thinks that all suppliers are unreliable. Which of the following cognitive biases is
being experienced by this manager?
A) escalation of commitment
B) projection
C) representativeness
D) illusion of control
A core competence in ________ management can allow an organization quickly to
discover and respond to customer needs.
A) financial
B) human resource
C) materials
D) marketing
Which of the following organizational structures is the foundation of horizontal
differentiation?
A) functional structure
B) product structure
C) matrix structure
D) divisional structure
Define entrepreneurship.
Explain the codification approach to knowledge management.
What is the difference between a terminal and an instrumental value?
What type of organizational structure is typically used by an organization that pursues
the strategy of unrelated diversification?
Discuss the internal systems approach to measuring organizational effectiveness.