OA Final

32. Small-batch technology is typically characterized by ________.

Flexibility

117. At which of the following stages of Pondy's organizational conflict model there exists no outright conflict?

Latent conflict

34. According to Perrow an organization that performs routine tasks will have a ________.

Mechanistic Structure

7. A speedy response to market changes is not vital to the competitive success of an organization that is following a low-cost business-level strategy.

True

37. The use of robots is integral to ________.

CIM

96. Lightweight team leaders often function as product champions.

False

12. In order to strengthen an organization's technical and human resources, a manager trains and develops his subordinates. This is an example of a ________ strategy.

Functional-level

66. A large video company observes that smaller companies are having success with pay-per-view movies and decides to enter the pay-per-view market. According to the population ecology theory, which of the following strategies is being followed by the large video company?

K-strategy

118. According to Thompson's model of technology, which of the following types of task interdependence among subunits is most likely to lead to a conflict?

Reciprocal task interdependence

52. Which of the following statements is true regarding reengineering?

Reengineering involves decentralizing decision-making to the point where the decision is made

29. Organizations that employ ________ technology make one-of-a-kind customized products.

Small-batch and unit

68. ________ concentrate their competences and skills to compete for resources in a single niche.

Specialist organizations

54. Which of the following is an OD technique in which a facilitator first observes the interactions of group members and then helps them become aware of ways to improve their work interactions?

Team-building

64. According to population ecology theory,

The number of organizations in a population is determined by the availability of resources

85. In which of the following situations is an organization most likely to use game theory?

The organization competes against a limited number of rivals in its domain and they are highly interdependent

115. Decentralizing authority to a subordinate does not necessarily reduce a manager's authority.

True

78. Exploration is a more radical learning strategy than exploitation.

True

17. Which of the following statements is true regarding a global product group structure?

A global product group that structure lowers the bureaucratic costs associated with resource transfer between corporate headquarters and the company's global divisions.

101. Which of the following statements is most likely to be true regarding the embryonic stage of a product lifecycle?

A product in an embryonic stage has yet to gain widespread acceptance

105. Which of the following is most likely to promote innovation in an organization?

Adopting a product team structure

100. Which of the following statements is true regarding quantum innovation?

As compared to incremental innovations, quantum innovations are more likely to cause major changes in an environment

122. Which of the following types of power is most likely to be possessed by a CEO of an organization?

Authority

123. 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?

Centrality

71. ________ isomorphism results when organizations are forced to adopt nondiscriminatory equitable hiring practices because they are mandated by law.

Coercive

88. A(n) ________ organizational structure is, an informal organization of managers set up parallel to the formal organizational structure to "shadow" the decision-making and actions of managers in the formal organization.

Collateral

36. Which of the following techniques controls the changeover from one operation to another by means of the commands given to the machines through computer software and eliminates the need to retool machines physically?

Computer-integrated manufacturing (CIM)

13. Mercedes-Benz used its competences in R&D and product development to enter the household products and aerospace industries. This is an example of a(n) ________ strategy.

Corporate-level

90. A(n) ________ is a person who is responsible for critiquing ongoing organizational learning.

Devil's advocate

116. According to Pondy, all organizational conflict arises because ________.

Different organizational subunits have different goals

53. The term ________ refers to companies' attempts to use all kinds of information systems to improve their performance.

E-engineering

83. A friend of yours recommends a stock based upon a "hot tip." You purchase it, and it subsequently declines the following year. Your friend advises you to purchase more at the lower price, despite clear evidence that this is not a sound company. Which of the following cognitive biases is being displayed by your friend?

Escalation of commitment

84. ________ is a cognitive bias that leads managers to continue a losing course of action and to refuse to admit they have made a mistake.

Escalation of commitment

125. To manage organizational politics and gain its benefits, an organization must ________.

Establish a balance of power in which alternative views and solutions can be offered

109. In terms of Thompson's model of technology, the move from reciprocal to sequential to pooled task interdependence between people or subunits increases the degree to which the actions of one subunit directly affect the actions of others.

False

110. At the manifest conflict stage in Pondy's model, each subunit begins to define why the conflict is emerging and to analyze the events that have led up to it.

False

112. "Felt conflict" is the fourth stage in Pondy's model of organizational conflict.

False

113. Manifest conflict" is the last stage in Pondy's model of organizational conflict.

False

19. Craftwork is the organizational technology based on competences in using a standardized, progressive assembly process to manufacture goods.

False

20. Mass production is the technology that involves groups of skilled workers interacting closely and combining their skills to produce custom-designed products.

False

21. Small-batch technology has a higher level of technical complexity than large-batch technology.

False

22. Small-batch and unit technology scores highest on the dimension of technical complexity.

False

23. In the case of small-batch technology, production continues with little variation in output and rarely stops.

False

25. Advanced manufacturing technology (AMT) tries to protect the conversion process from disruptions at the input and output stages by using stockpiles of inventory as buffers to increase control and reduce uncertainty.

False

3. An organization's brand name is considered to be a functional resource.

False

38. The term "organizational inertia" refers to the tendency of an organization to increase the level of production in order to take advantage of economies of scale.

False

39. A mechanistic structure is characterized by a flat hierarchy and decentralized decision-making.

False

4. Coca-Cola uses its marketing skills to defend its niche against PepsiCo. This is an example of a functional-level strategy.

False

40. The force-field theory states that organizations have a tendency to overestimate their degree of influence over other external events.

False

42. TQM is a quick fix that can turn an organization around overnight.

False

44. In general, top-down change is easier to implement than bottom-up change because it provokes less resistance.

False

5. A corporate-level strategy is a plan of action to strengthen an organization's functional and organizational resources, as well as its coordination abilities, in order to create core competences.

False

56. All the organizations pass through the four principal stages of the organizational life cycle at the same rate.

False

58. Organizations that follow an r-strategy are usually established in other environments and wait to enter a new environment until the uncertainty in that environment is reduced and the correct way to compete is apparent.

False

6. According to contingency theory, an organization's design should ensure that all the functions in the organization use the same organizational structure.

False

61. Isomorphism is normative when organizations intentionally imitate and copy one another to increase their legitimacy.

False

74. Programmed decisions are creative, novel, and unstructured.

False

76. The rational model of decision-making assumes that different managers use different preferences and values and will use different rules to decide on the best alternative.

False

77. The incrementalist model of decision-making, developed by Henry Mintzberg and his colleagues, describes how decision-making takes place when uncertainty is high.

False

79. Inert cultures encourage risk taking by middle and lower-level managers.

False

8. Organizations pursuing differentiation business-level strategy generally operate in a simple, stable, and slow-moving environment.

False

91. Quantum technological change refers to the improvements that are continuously made to particular technologies over time.

False

92. Copyrights last for much smaller periods than patents.

False

93. An organization in which innovation is going on at all hierarchical levels and across all functions and divisions is known as a collateral organization.

False

95. During stage 1 of a stage-gate development funnel, prospective project managers draft a detailed new product development plan, which contains information about topics such as human resource requirements and strategic and financial objectives.

False

97. 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.

False

73. According to Weitzel and Jonsson's model of organizational decline, if managers fail to halt decline at the inaction stage, the immediate next stage of decline into which the organization moves is the ________ stage.

Faulty action

27. The interactions of the members of a surgical operating team, the cooperative efforts of scientists in research and development laboratory, and techniques developed by assembly-line workers are all examples of competences and technology at the ________ level.

Functional

46. Planned organizational change is normally targeted at improving effectiveness at one or more of four different levels: human resources, ________, technological capabilities, and organizational capabilities.

Functional resources

11. 3M and HP, invest heavily to improve their skills in R&D and product design. This is an example of a________ strategy.

Functional-level

86. A fundamental premise of ________ theory is that when making decisions, managers need to think in two related ways. First, they need to look forward and anticipate how rivals will respond to their competitive moves and second, managers need to reason backward to determine which moves their company should pursue today given their assessment of how their rivals will respond to various future moves.

Game

67. ________ use their well-developed competences to compete for resources in many or all niches in an environment.

Generalist organizations

49. Which of the following terms refers to a pattern of faulty decision-making that occurs in a team when members discount negative information in order to arrive at a unanimous agreement?

Groupthink

87. Which of the following terms refers to the conformity that emerges when like-minded people reinforce one another's tendencies to interpret events and information in similar ways?

Groupthink

89. Which of the following terms refers to the conformity that emerges when like-minded people reinforce one another's tendencies to interpret events and information in similar ways?

Groupthink

104. ________ often function as product champions.

Heavyweight team leaders

124. Jane works for a manufacturing plant that has been under pressure to reduce pollution. Jane increased her knowledge of environmental laws in order to help the company follow waste disposal laws. Which of the following political tactics is being used by Jane?

Increasing non-substitutability

70. The ________ is the set of values and norms that govern the behavior of a population of organizations.

Institutional environment

55. ________ is an OD technique that takes team building one step further and uses it to improve the ways different functions or divisions work together.

Intergroup training

14. Typically, an organization that uses a low-cost strategy ________.

Is not leaders in product development

81. According to the principle of systems thinking, to create a learning organization, ________.

Managers must recognize the effects of one level of learning on the others

120. Which of the following stages in Pondy's model of organizational conflict comes immediately after the "felt conflict" stage?

Manifest conflict

121. A manufacturing department refuses to cooperate with a sales department because they had a big fight last month. Based on this information, the conflict between the two departments is at what stage of the Pondy's model of organizational conflict?

Manifest conflict

33. With reference to the types of production technologies identified by Joan Woodward, a mechanistic structure is most appropriate for an organization using ________ technology.

Mass-production

72. According to Weitzel and Jonsson's model of organizational decline, which of the following is most likely to help an organization in the blinded stage to become successful?

Monitoring internal and external factors to get accurate information

45. Which of the following statements is true regarding organizational change?

Organizational change is aimed at increasing the effectiveness of the organization

10. Land is an example of a(n) ________.

Organizational resource

30. Which of the following statements is most likely to be true regarding a process that has a high technical complexity?

Outputs that result from such processes can be predicted accurately

119. A production department in a company has been experiencing several production problems for the past few months. When production managers investigate, they discover that materials management always buys inputs from the lowest-cost sources of supply and makes no attempt to develop the kind of long-term relationships with suppliers that can raise the quality and reliability of inputs. At which stage of Pondy's model of organizational conflict is the company in?

Perceived conflict

47. The European Union is a ________ force for change.

Political

82. 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?

Representativeness

35. A just-in-time (JIT) inventory system ________.

Requires the use of CAMM for working effectively

48. Organizational inertia refers to the tendency of an organization to ________.

Resist change and maintain the status quo

50. Which of the following statements is true regarding revolutionary change?

Revolutionary change is broadly focused

69. Which of the following statements is most likely to be true about specialists?

Specialists are often able to develop core competences that allow them to outperform generalists in that niche

9. 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?

Strategy

106. Which of the following is most likely to help an organization align the interests of their talented employees with those of the organization?

Strong property rights

28. Ford increased his organization's effectiveness by organizing its functional resources to create better quality cars at a lower cost for both manufacturer and consumer. This information indicates that Ford is taking the________ approach to measure organizational effectiveness.

Technical

31. Which of the following statements is true regarding small-batch and unit technology?

The conversion process that results from this technology is typically flexible.

51. Which of the following is most likely to be a characteristic of an organization that implements TQM?

The employees in the organization are empowered

102. The critical path method helps determine ________.

The particular tasks or activities that have significant effect on project time and cost

103. A stage-gate development funnel typically has ________ stages.

Three

15. Which of the following core competences is most likely to be used by a company to create value while pursuing unrelated diversification?

Top management's ability to efficiently control a group of organizations

99. Which of the following statements is true regarding an incremental innovation?

Total quality management (TQM) is an example of an incremental innovation

16. A global matrix structure is most appropriate for a company pursuing a(n) ________ strategy.

Transnational

18. A global matrix structure is most appropriate for a company pursuing a(n) ________ strategy.

Transnational

1. An organization's strategy is a specific pattern of decisions and actions that managers take to use core competences to achieve a competitive advantage and outperform competitors.

True

107. At the latent stage of Pondy's model of organizational conflict, no outright conflict exists.

True

108. According to Pondy, all organizational conflict arises because vertical and horizontal differentiation lead to the establishment of different organizational subunits with different goals and often-different perceptions of how best to realize those goals.

True

111. At the felt conflict stage in Pondy's model, subunits in conflict quickly develop an emotional response toward one another.

True

114. Organizational power is the ability of one person or group to overcome resistance by others to resolve conflict and achieve a desired objective or result.

True

2. Developing competitive advantage increases an organization's ability to obtain scarce resources.

True

24. The most appropriate structure for unit and small-batch technology is an organic structure.

True

26. A computer-integrated manufacturing system eliminates the need to retool machines physically.

True

41. Evolutionary change involves not a drastic or sudden altering of the basic nature of an organization's strategy and structure but a constant attempt to improve, adapt, and adjust strategy and structure incrementally to accommodate to changes taking place in the environment.

True

43. For successfully performing reengineering, it should be organized around outcomes, not tasks.

True

57. According to population ecology theory, the rate of birth in a new environment increases rapidly at first and then tapers off.

True

59. Specialists and generalists normally coexist in many environments.

True

60. Growth allows an organization to increase its division of labor and specialization.

True

62. Isomorphism is normative when organizations come to resemble one another over time because they indirectly adopt the norms and values of other organizations in the environment.

True

63. According to Weitzel and Jonsson's model of organizational decline, when an organization reaches the dissolution stage, it cannot recover, and decline is irreversible.

True

75. Nonprogrammed decision-making forces managers to rely on judgment, intuition, and creativity to solve organizational problems.

True

80. When an organization uses a personalization approach to knowledge management, information systems are designed to show employees who in the organization might possess the knowledge they might need or who might have confronted a similar problem in the past.

True

94. Demand for a product peaks during the mature stage of the product life cycle.

True

98. The term "information synergies" represents the knowledge building created when two or more individuals or subunits pool their resources and cooperate and collaborate across role or subunit boundaries.

True

65. According to the population ecology theory, which of the following strategies advocates entering a new environment early?

r-strategy