Which of the following terms refers to the pattern of decisions and actions that
managers take to use core competences to achieve a competitive advantage and
outperform competitors?
A) product formation chain
B) PERT chart
C) strategy
D) value engineering
In the case of a bureaucracy, if managers fail to control the development of the
organizational hierarchy properly then the organization is most likely to become
________.
A) flexible
B) decentralized
C) unresponsive to the needs of customers
D) very flat
Which of the following strategies involves entering a completely new domain?
A) market penetration
B) product development
C) unrelated diversification
D) vertical integration
Which of the following statements is true regarding organizational change?
A) Competition is a force that resists organizational change.
B) As compared to mechanistic structure, organic structure is more resistant to change.
C) Change usually benefits some people, functions, or divisions at the expense of
others.
D) Resistance to change increases an organization’s effectiveness and its chances of
survival in a changing environment.
Which of the following integrating mechanisms involves creating a permanent
committee to promote coordination within an organization?
A) task force
B) integrating department
C) team
D) liaison role
The CEO of Apex Corporation authorizes a very large donation to the CRY foundation
because he believes in their cause. His stance on corporate social responsibility could
best be described as ________.
A) defensive
B) obstructionist
C) accommodative
D) proactive
The principal purpose of organizational structure is to ________.
A) determine the vision and mission of the organization
B) develop new and improved products for the existing markets
C) control how people coordinate their actions and use resources
D) select an appropriate business strategy that will help the organization achieve its
long term goals
Which of the following is most likely to increase transaction costs?
A) having many possible trading partners
B) investing in specific assets
C) operating in a stable environment
D) adopting a decentralized organizational structure
A(n) ________ is a classification of people in an organization according to authority
and rank.
A) hierarchy
B) architecture
C) culture
D) orientation
________ are people who have an interest or claim in an organization, in what it does,
and in how well it performs.
A) Stakeholders
B) Early adopters
C) Boundary spanners
D) Late adopters
In which of the following situations is an organization most likely to use game theory?
A) The organization has a monopoly in its industry.
B) The organization competes against a limited number of rivals in its domain and they
are highly interdependent.
C) The organization produces customized products for its customers and operates in a
stable environment.
D) The organization produces and sells commodities and competes against a large
number of rivals.
Which of the following characteristics of organizational structure is most likely to
increase the responsiveness of the organization to environmental changes?
A) standardization of behavior through rules and procedures
B) tall hierarchy of authority
C) extensive use of mutual adjustment
D) centralized decision-making
Which of the following integrating mechanisms is most appropriate for a complex and
highly differentiated organization?
A) integrating role
B) direct contact
C) liaison role
D) hierarchy of authority
Which of the following terms refers to a strategy in which an organization takes over
and owns its suppliers or its distributors?
A) unrelated diversification
B) market penetration
C) vertical integration
D) product differentiation
The “tragedy of the commons” illustrates that ________.
A) the utilitarian model of ethics is the most effective model of ethics
B) all unethical actions are always illegal
C) the rational pursuit of individual self interest results in a collective disaster
D) all the available resources should be equally distributed among all the stakeholders
Which of the following is a primary responsibility of a chief operating officer?
A) selecting the members of the board of directors
B) managing the organization’s internal functions
C) selecting key executives to occupy the topmost levels of the managerial hierarchy
D) determining top management’s rewards and incentives
One manufacturing company in the aluminum industry has an innovative culture, and a
competitor from the same country has a conservative culture. What could account for
this difference in organizational culture?
A) stance on social responsibility
B) environmental richness
C) organizational structure
D) societal ethics