MAN4282 SUMMER17A EXAM 1
Organizational culture _______________________
Controls organizational members' interactions with each other
Bob and Amy are simply instructed to attract new clients, but are not given specific guidelines regarding how to accomplish this goal. Because they work for a conservative company, they are afraid to take risks. Bob and Amy are experiencing a role __________________________
Ambiguity
According to the principle of minimum chain of command, __________________________
An organization should be kept as flat as possible
Role ______________ occurs when two or more people have different views of what another person should do, and as a result, make opposing demands on the person.
Conflict
___________________________ is a management approach in which the design of an organization's structure is tailored to the sources of uncertainty facing an organization.
Contingency approach
The principal purpose of organizational structure is to _________________________
Control how people coordinate their actions and use resources
The quality of organizational decision-making is a function of the __________________________
Diversity of the viewpoints that get considered
If an organization is using the technical approach to measure organizational effectiveness then it will attempt to ____________________ to increase the effectiveness of the organization.
Increase product quality
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?
Increase rate of product innovation
Which of the following is one of the ways in which an organization can avoid becoming too tall yet maintain effective control of its workforce?
Increasing its mangers' span of control
According to the capitalistic view, the primary goal of an organization is to
Maximize shareholder wealth
According to the study conducted by Tom Burns and G. M. Stalker, an organization functioning in a stable environment should have __________________________
Mechanistic organizational structure
A firm hires a supervisor to handle the communication between two functions. Which of the following integrating mechanisms is used in this case?
Integrating role
Which of the following goals is most likely to be set by an organization to measure effectiveness if it is using the technical approach to measure organizational effectiveness?
Reduce production cost
As per the ________________ Act, CEOs, COOs, and the CFO are required to sign off on their company's balance statements so they can be held personally and legally liable for accidental or deliberate mistakes found later.
Sarbanes-Oxley
The stakeholder group with ultimate authority over the use of a corporation's resources is ______________________
Shareholders
Which of the following groups of stakeholders receives inducements in the form of dividends and stock appreciation?
Shareholders
Which of the following is an inside stakeholder group?
Shareholders
An organization's environment will be more uncertain when _________________________
Specific and general forces in the environment become interconnected
Managers who are in charge of a specific organizational function such as sales or R&D hold a(n) _________________ role.
Staff
______________________ are people who have an interest or claim in an organization, in what it does, and in how well it performs.
Stakeholders
Which of the following is generally used to solve agency problems?
Stock-based compensation schemes
A joint venture is a type of _______________________
Strategic alliance
Which of the following group of outside stakeholders contributes high-quality inputs?
Suppliers
Which of the following is an outside stakeholder group?
Suppliers
Which of the following functions facilitate an organization's control of its relations with its environment and stakeholders?
Support functions
A defense company decided to sell the services of its scientists to commercial clients. This company is changing its _____________________
Symbiotic interdependencies
An organization is a tool people use to coordinate their actions to obtain something they desire or value. (T/F)
TRUE
Cartels and collusion increase the stability and richness of an organization's environment and reduce the complexity of relations among competitors. (T/F)
TRUE
Entrepreneurship is the process by which people recognize opportunities to satisfy needs and then gather and use resources to meet those needs. (T/F)
TRUE
Global supply chain management is the process of coordinating the flow of raw materials, components, semifinished goods, and finished products around the world. (T/F)
TRUE
Horizontal differentiation leads to the emergence of specialized subunits- functions or divisions. (T/F)
TRUE
Organizations die or are transformed when the needs satisfied by them are no longer important. (T/F)
TRUE
Shareholders are a part of inside stakeholders. (T/F)
TRUE
Subunit orientation is the tendency to view one's role in the organization strictly from the perspective of the time frame, goals, and interpersonal orientations of one's subunit. (T/F)
TRUE
The shape of an organization, depicted by its organizational chart, determines how effectively the organization's decision-making and communication systems work. (T/F)
TRUE
The term organizational domain refers to the particular range of goods and services that the organization produces, and the customers and other stakeholder it serves. (T/F)
TRUE
Weber's first principle indicates that choices affecting the design of an organization's hierarchy should be based on the needs of the task, not the needs of the person performing the task. (T/F)
TRUE
An organization in which the hierarchy has many levels relative to the size of the organization is a(n) ______________________ organization.
Tall
Which of the following refers to the integration mechanism where a new team of managers is created to coordinate the activities of functions or divisions?
Task force
In order to measure organizational effectiveness, an organization uses indicators such as number of defective products and cost of production. These indicators show that the organization is using the ________________ approach to measure organizational effectiveness.
Technical
Which of the following is most likely to increase the environmental complexity for a company?
The company diversifies its business is an entirely new industry
Which of the following is the most direct effect of decentralization?
The monitoring burden on top managers is reduced
A disadvantage of centralization is that _______________________________
The top managers have little time for long-term strategic decision-making
_________________________ determines how much value is created at the conversion stage
The way an organization uses human resources and technology to transform inputs into outputs
Rate-busters are employees who _______________
Work too quickly
Which of the following statements is true regarding a divisional manager?
A divisional manager is not a corporate manager
_________________ functions allow an organization to adjust to changes in the environment.
Adaptive
Which of the following terms refers to a form of organizational structure in which people can be held accountable for their actions because they are required to act in accordance with well-specified and agreed-upon rules and standard operating procedures?
A bureaucracy
In the long run, an organization that follows unethical practices is most likely to ___________________________
Be bureaucratized
Which of the following is an example of an official goal?
Become a leading producer of a product
Organic structures are characterized by ________________________
Centralized organizational structures
Which of the following terms best describes the system of hierarchical reporting relationships in an organization?
Chain of command
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 ______________________
Complexity
As the _________________ of the environment increases, the resources become hard to obtain.
Complexity
According to the study conducted by Lawrence and Lorsch, an organization functioning in a highly unstable environment was most effective when it __________________________
Concentrated decision-making authority at the top-management level
Jeff saw the opportunity to sell books over the internet, which was growing. He started a website where people could buy new books and sell their existing books. This was the first website dedicated to buying or selling books. This is an example of _________________________
Entrepreneurship
________________________ is the process by which people recognize opportunities to satisfy needs and then gather and use resources to meet those needs.
Entrepreneurship
When a company decides to produce different products for different customers, ________________________
Environmental complexity increases
Top management's ability to perceive and respond to changes in the environment or to initiate change and be first to take advantage of a new opportunity indicates the effectiveness of the organization as per the __________________ approach
External resource
An inside director of a company can be a professional director who holds positions on the boards of many companies. (T/F)
FALSE
An organization can reduce environmental uncertainty by entering into global markets. (T/F)
FALSE
As a company begins to produce a wider variety of products for different groups of customers, its environmental complexity goes on decreasing. (T/F)
FALSE
Differentiation is the process of establishing and controlling the division of labor in an organization. (T/F)
FALSE
Economic forces, such as interest rates, are considered to be specific environmental forces rather than general environmental forces. (T/F)
FALSE
Environmental richness is a function of how much and how quickly forces in the specific and general environments change over time and thus increase the uncertainty of organizational faces. (T/F)
FALSE
Formalization is more appropriate in environments that require high levels of mutual adjustment. (T/F)
FALSE
In a rich, stable, and simple environment, resources are easy to come by and uncertainty is low. (T/F)
FALSE
One way to reduce uncertainty is to increase the number of specific and general environmental forces that are interconnected. Because, when forces begin to interact, the environment becomes more predictable. (T/F)
FALSE
Organizational theory is primarily concerned with how an organization can outperform its competitors. (T/F)
FALSE
Organizations are very status conscious in mechanistic structures. (T/F)
FALSE
Role ambiguity occurs when two or more people have different views of what another person should do and, as a result, make conflicting demands on the person
FALSE
Symbiotic and competitive interdependencies exist in the specific environment. (T/F)
FALSE
The chief operating officer, functional managers, and divisional managers form a company's top management team. (T/F)
FALSE
The workforce and managers are considered outside stakeholders. (T/F)
FALSE
Value creation by an organization takes place at three stages: input, conversion, and output. Of these three stages, only the conversion stage is affected by the environment in which the organization operates. (T/F)
FALSE
When each employee performs only a small part of a total task, identifying the employees individual contribution to the task becomes easy. (T/F)
FALSE
An organization that has few levels in its hierarchy relative to its size is known as a ___________________ organization.
Flat
Usually, sales is a relatively ______________ hierarchy because supervisors use ___________________
Flat; standardization
Which of the following would be considered to be the lowest level of management in a chain of command?
Functional managers
McDonald's is trying to determine whether it should make its own fast-food containers or buy them from international suppliers. This decision is a part of the _____________________ management.
Global supply chain
A(n) ______________________ is a classification of people in an organization according to authority and rank.
Hierarchy
________________________ refers to the way in which an organization groups organizational tasks into roles and roles into subunits.
Horizontal differentiation
An advantage of decentralization is that it _____________________
Keeps the organization focused on achieving its goals
According to contingency theory, in order to manage its environment effectively, an organization should __________________
Limit the extent of internal differentiation and integration
__________________ functions facilitate the control and coordination of activities within and among departments.
Managerial
In effect, ____________ are the agents or employees of stakeholders.
Managers
________________________ goals are guiding principles that the organization formally states in its annual report and in other public documents.
Official
____________________ promote flexibility, so people initiate change and can adapt quickly to changing conditions.
Organic
The term ________________ refers to the particular range of goods and services that the organization produces, and the customers and other stakeholders it serves.
Organizational domain
A son of a mobster believes that it is ethical to steal if it is in the best interest of his family. This view comes from ______________________
Personal ethics
Which of the following managers has a staff role?
R&D manager
The specific environment consists of forces from ______________________
outside stakeholder groups that directly affect an organization's ability to secure resources
Bureaucracy _______________________.
separates the position from the person.