An interlocking directorate is a linkage that results when a director from one company
sits on the board of another company.
Continuous-process technology is associated with the tallest hierarchy of authority.
The plant equipment possessed by a company is considered to be an organizational
resource.
The Carnegie model assumes that managers’ ability is restricted by bounded rationality.
Symbiotic and competitive interdependencies exist in the specific environment.
According to Peter Senge, individual learning is more important than team learning in
promoting organizational learning.
A wheel configuration of a top-management team solves complex problems much more
quickly than a circle arrangement.
Organizational culture affects an organization’s performance and competitive position.
A firm pursuing a low-cost strategy will likely have a mechanistic structure.
Integration is the way in which a company allocates people and resources to
organizational tasks.
Value creation by an organization takes place at three stages: input, conversion, and
output. Out of these three stages, only the conversion stage is affected by the
environment in which the organization operates.
“Manifest conflict” is the last stage in Pondy’s model of organizational conflict.
A joint venture is the least formal type of strategic alliance.
In the case of small-batch technology, production continues with little variation in
output and rarely stops.
As per the justice model of ethics, an ethical decision is a decision that best maintains
and protects the fundamental rights and privileges of the people affected by it.
Shareholders are the owners of the organization.
The power possessed by a subunit within a company because of its specialized
knowledge is an example of unobtrusive power.
Symbiotic interdependencies are the interdependencies that exist among organizations
that compete for scarce inputs and outputs.
The most important function of organizational structure is to control-that is, coordinate
and motivate-people within an organization.
Support functions manage and improve the efficiency of an organization’s conversion
processes so that more value is created.
Managers meet in temporary committees to coordinate cross-functional activities in
some cases. This is an example of using a(n) ________ to integrate activities.
A) integrating role
B) task force
C) team
D) integrating department
Which of the following situations causes communication problems within an
organization that uses functional structure?
A) the organization uses the system of management by objectives
B) the organization operates in a stable environment
C) the organization operates in a rich environment
D) the organization develops more functions that are increasingly distant from one
another
Which of the following functions facilitate an organization’s control of its relations with
its environment and stakeholders?
A) production functions
B) support functions
C) adaptive functions
D) managerial functions
Weber’s bureaucratic model is based on ________ authority.
A) traditional
B) elected
C) rational-legal
D) charismatic
Which of the following technologies has low task variability and high task
analyzability?
A) routine manufacturing
B) craftswork
C) engineering production
D) nonroutine research
Which of the following strategies is most likely to be used by an organization using
intensive technologies to reduce uncertainty and the costs associated with intensive
technology?
A) creating slack resources
B) increasing the number of customers served
C) producing only a narrow range of outputs
D) using vertical integration
A food manufacturer is experiencing coordination problems between its frozen food
division and its canned food division. The main control problem is that each product
requires an entirely separate system for ordering supplies, packaging the product, and
storing the product upon completion. Which structure would help solve these
coordination problems?
A) product division structure
B) market structure
C) multidivisional structure
D) geographic divisional structure
Moving of a value creation activity that was done inside the organization to the outside,
where it is done by another company is known as ________.
A) mechanizing
B) outsourcing
C) networking
D) decentralizing
Which of the following ways can be used by a manager to increase vertical
differentiation?
A) increase the number of levels in the hierarchy
B) increase the richness of the environment
C) diversify the business
D) manufacture products at several different locations
Which of the following statements is true regarding a global product group structure?
A) Typically, a global product group structure is used by an organization that is
implementing a transnational strategy.
B) A global product group structure increases local responsiveness of an organization.
C) A global product group structure allows different product groups to transfer and
share their competences.
D) A global product group structure lowers the bureaucratic costs associated with
resource transfers between corporate headquarters and the company’s global divisions.
Which of the following statements is true regarding a network organization?
A) A network structure is characterized by high production costs.
B) The organizations that use network structures have the tallest hierarchies.
C) An organization using a network structure experiences high beureaucratic costs.
D) A network structure allows an organization to act in an organic way.
Which of the following increases the threat that organization A will behave
opportunistically towards organization B?
A) Organization A is dependent on organization B for scarce resources.
B) The environment of organization A is richer than the environment of organization B.
C) Organization A provides a service to organization B that only a few organizations
can replicate.
D) The environment that both organizations operate in is stable.
________ is a cognitive bias that leads managers to interpret events in such a way that
their actions appear in the most favorable light.
A) Representativeness
B) Self-concordance
C) Frequency
D) Ego-defensiveness
When managers have an illusion of control bias, they often ________.
A) centralize decision-making authority
B) promote flat hierarchy of authority
C) empower workers
D) promote mutual adjustment
________ is the process by which organizations in a population become more alike or
similar.
A) Natural selection
B) Cultural clustering
C) Organizational isomorphism
D) Organizational institutionalization
Typically, the R&D function in an organization uses ________.
A) centralized decision-making
B) a mechanistic structure
C) a high level of standardization
D) a flat organizational structure
A just-in-time (JIT) inventory system ________.
A) decreases technical complexity
B) requires the use of CAMM for working effectively
C) makes it difficult for an organization to respond quickly to the changing customer
preferences
D) decreases task interdependence
Managers adopting the ________ approach to social responsibility agree that
organizational members ought to behave legally and ethically. These managers want to
make choices that are reasonable in the eyes of society and want to do the right thing
when called on to do so.
A) integrative
B) obstructionist
C) accommodative
D) associative
Which of the following is most likely to occur in an organization with centralized
authority?
A) Employees take up more responsibilities.
B) Subordinates compete to ingratiate themselves with top managers for receiving
favor.
C) Several coalitions are formed within the organization.
D) Employees are empowered to make decisions.
Which of the following statements is true regarding evolutionary change?
A) Evolutionary change is broadly focused.
B) Evolutionary change involves a bold attempt to quickly find new ways to be
effective.
C) Evolutionary change is gradual and incremental.
D) One of the methods used for accomplishing evolutionary change is restructuring.
Which of the following goals set by an organization to measure effectiveness indicates
that it is using the internal systems approach to measure organizational effectiveness?
A) lower costs of inputs
B) increase stock price
C) improve customer service
D) increase rate of product innovation
Define organizational power.
What are the various problems with tall hierarchies?
What is a ‘skunk works?” How can it be used to foster innovation?
What is an organizational life cycle?
What is a trademark?
What is a copyright?
What are the various forces that make it necessary for an organization to change?
How can an organization establish a balance between standardization and mutual
adjustment?