1. The process by which organizations move from their present state to some desired future state is called ________.
a. restructuring
b. scanning the environment
c. organizational change
d. transaction analysis
2. Coca-Cola takes pride in a long-term commitment to employees; Pepsi is very political and competitive. These are differences in ________.
a. culture
b. structure
c. theory
d. design
3. Organizational design is:
a. a way to measure organizational effectiveness.
b. a way to measure organizational efficiency.
c. a source of competitive advantage.
d. important only to large companies.
4. Organizational design:
a. consists of two components: strategic management and organizational behavior.
b. can help a company control its environment.
c. reduces innovation.
d. does not allow for contingencies.
5. ________ is a means of implementing strategy.
a. Organizational theory
b. Entrepreneurship
c. Organizational design
d. Organizational missions
6. Which of the following are contingencies that cause the organization to face uncertainty?
a. organizational design and organizational processes
b. the technological environment and organizational design
c. the technological environment and organizational processes
d. the organizational environment and organizational design
7. ________ is the ability of one company to outperform another because its managers are able to create more value from the resources at their disposal.
a. Strategy
b. Competitive advantage
c. Organizational design
d. Managerial expertise
8. The specific pattern of decisions and actions that managers take in order to use core competences to achieve a competitive advantage is called ________.
a. strategy
b. change management
c. organizational design
d. the organization's mission
9. Determining management's rewards and incentives is primarily the responsibility of ________.
a. the board of directors
b. corporate management
c. the CEO
d. the shareholders
10. Which of the following statements about the CEO is false?
a. He or she is the chief operating officer.
b. He or she determines top management's rewards and incentives.
c. He or she allocates resources to subunits.
d. He or she influences stakeholders.
11. Which of the following employees would be considered to have a line role?
a. sales manager
b. executive Vice President of Finance
c. R&D director
d. vice President of Production
e. All are line roles.
12. Which of the following managers has a line role?
a. sales manager
b. R&D manager
c. production manager
d. executive vice president of finance
13. Which of the following would be considered to have a staff role?
a. sales manager
b. executive Vice President of Finance
c. R&D director
d. vice President of Accounting
e. All are staff roles.
14. Which of the following would be considered to be the lowest level of management?
a. divisional managers
b. functional managers
c. line managers
d. vice presidents
15. Divisional managers will most likely report to which member of the top-management team?
a. vice presidents
b. corporate management
c. senior vice presidents
d. the board of directors
16. Vice presidents are part of ________ management.
a. corporate
b. divisional
c. functional
D. line
17. An organization used to obtain supplies from 3,000 suppliers, but now deals with less than 300. They have reduced ________.
a. environmental dynamism
b. environmental complexity
c. innovation
d. rites of enhancement
18. Which term is defined as the strength, number, and interconnectedness of the specific and general forces that an organization has to manage?
a. environmental dynamism
b. environmental complexity
c. environmental richness
d. organizational domain
19. ________ is/are a function of how much and how quickly forces in the specific and general environments change over time and contribute to uncertainty.
a. Environmental dynamism
b. Organizational behavior
c. Organizational theory
d. Societal ethics
20. Which term is defined as how rapidly the forces in the environment change?
a. environmental dynamism
b. environmental complexity
c. environmental richness
d. organizational domain
21. Which term is defined by the amount of resources available to support an organization's domain?
a. environmental dynamism
b. environmental complexity
c. environmental richness
d. organizational domain
22. Environments may be poor because:
a. resources are plentiful.
b. uncertainty is low.
c. competition is high.
d. the country is wealthy.
23. Which of the following is not one of the reasons that an environment would be considered poor?
a. The organization may be located in a poor country or a poor region.
b. There is a high level of competition.
c. There are many organizations fighting over a limited amount of resources.
d. There is a large customer base and organizations can't fill the demand.
24. Which is not a part of horizontal differentiation?
a. division of labor
b. specialization
c. centralization
d. increased productivity
25. Grouping tasks into roles is part of ________.
a. integration
b. vertical differentiation
c. horizontal differentiation
d. formalization
26. ________ causes functions or divisions to develop subunit orientations.
a. Authority
b. Integration
c. Vertical differentiation
d. Horizontal differentiation
27. At the B.A.R. & Grille restaurant, Bob and Amanda noticed conflicts between the cooks and the wait staff. Both sides were acting as if they were the most important to the success of the restaurant. The cooks noted that "without us, we wouldn't have customers," while the
wait staff touted its excellent service as the reason for success. This is an example of ________.
a. integrating mechanisms that are too complex
b. integrating mechanisms that are too simple
c. the downside of vertical differentiation
d. subunit orientation
28. Subunit orientations are the result of differences in:
a. external environments among departments.
b. official goals.
c. perspectives of time frames and goals among departments.
d. the personalities of organizational managers.
29. Production is concerned about reducing costs in the short-term whereas R&D is concerned about innovation, which is long-term. This is an example of ________.
a. subunit orientation
b. integration
c. educational differences
d. standardization
30. Which of the following is the simplest integrating mechanism?
a. direct contact
b. hierarchy of authority
c. liaison role
d. task force
31. A nuclear power plant has a very tall managerial hierarchy for all the following reasons except:
a. to maintain effective supervision of activities.
b. to empower employees to make decisions.
c. to cross-check the work of lower managers.
d. to ensure that rules are followed.
32. How did Bob Iger reshape Walt Disney?
a. He recognized that the span of control was too wide and added a layer of management.
b. He centralized decision making, which resulted in a more consistent experience for the consumer.
c. He eliminated a layer of management, which resulted in faster decision making.
d. He created a "customer service" department designed to solve consumer complaints.
33. Tall hierarchies are associated with all of the following problems except:
a. communication problems.
b. motivation problems.
c. a wide span of control.
d. high bureaucratic costs.
34. ________ refers to the number of subordinates a manager directly supervises.
a. Span of control
b. Parkinson's Law
c. Vertical differentiation
d. Effectiveness
35. Which of the following principles can help an organization avoid unnecessary layoffs?
a. Parkinson's Law
b. rational-legal authority
c. the minimum chain of command
d. loosely defined rules
36. Rose supervises Iris, who in turn supervises Violet and Daisy. Violet has four subordinates and Daisy has six. Present spans of control are as follows
a. Rose 13, Iris 2, Violet 4, Daisy 6.
b. Rose 13, Iris 12, Violet 4, Daisy 6.
c. Rose 1, Iris 2, Violet 4, Daisy 6.
d. Rose 3, Iris 12, Violet 4, Daisy 6.
37. If the span of control is too wide:
a. the hierarchy will be too tall.
b. bureaucratic costs will increase.
c. the division of labor will be too low.
d. subordinates may shirk responsibility.
38. A product structure organizes people according to:
a. what the people are required to produce.
b. the type of customer they serve.
c. the regional market they serve.
d. the functions they perform.
39. A company will be able to handle more complex product choices when it moves from a ________ structure to a ________ structure.
a. functional; product division
b. functional; geographic
c. multidivisional; matrix
d. multidivisional; market
40. A regional company markets ice cream, milk, and frozen yogurt. A ________ structure is the most appropriate structure for this firm.
a. product division
b. multidivisional
c. product team
d. market
41. A product division structure:
a. has self-contained operating units.
b. has a corporate headquarters staff.
c. has centralized support functions at the top of the organization.
d. allows a company to operate in several markets.
42. Most large U.S. companies use the ________ structure.
a. product team
b. global
c. multidivisional
d. multidivisional matrix
43. A corporate headquarters staff is created in a ________ structure.
a. product division
b. multidivisional
c. product team
d. matrix
44. Under the leadership of Alfred Sloan, General Motors:
a. centralized support functions at the top of the organization.
b. grouped businesses into self-contained divisions.
c. eliminated the corporate level in the organization.
d. centralized decision-making authority.
45. Which socialization tactic separates new organizational members from existing members during the learning process?
a. individual
b. disjunctive
c. investiture
d. formal
46. ________ socialization tactics involve providing newcomers with role models and mentors.
a. Serial
b. Formal
c. Informal
d. Investiture
47. ________ mark an individual's entry to, promotion in, and departure from the organization.
a. Terminal values
b. Rites of passage
c. Formalization and socialization
d. Innovations
48. ________ build and reinforce common bonds between organizational members.
a. Instrumental values
b. Rites of integration
c. Individual tactics
d. Meetings
49. Retirement is an example of a ________.
a. rite of passage
b. rite of enhancement
c. rite of degradation
d. divestiture tactic
50. A company invites all employees to a day at an amusement park. This is an example of ________.
a. organizational language
b. a rite of integration
c. a rite of enhancement
d. social responsibility
51. A middle manager finally gets invited to play in the executive golf tournament. This is an example of a ________.
a. rite of passage
b. rite of integration
c. rite of enhancement
d. rite of degradation
52. Traditionally, manufacturing concentrated on all of the following except:
a. increasing mutual adjustment.
b. decreasing the level of skill required to perform a task.
c. creating a mechanistic hierarchy.
d. transferring control to managers.
53. A source of competitive advantage is ________.
a. uncertainty
b. rules and standard operating procedures
c. an effective culture
d. centralized decision making
54. Taking core competencies and combining them to exploit opportunities in the environment is part of ________.
a. functional-level strategy
b. business-level strategy
c. corporate-level strategy
d. global-level strategy
55. All of the following are selected at the business level except ________.
a. organizational domain
b. a low-cost strategy
c. a differentiation strategy
d. a diversification strategy
56. McDonald's core competences in manufacturing, marketing, and materials management create a competitive advantage over rivals Burger King and Wendy's. This is an example of a(n) ________ strategy.
a. business-level
b. environmental
c. value creation
d. educational
57. Wal-Mart uses a ________ strategy to achieve a competitive advantage.
a. differentiation
b. market penetration
c. diversification
d. low-cost business-level
58. Amazon.com used a ________ strategy.
a. low-cost
b. differentiation
c. low-cost/differentiation
d. computer
59. One would expect to find the smallest span of control in an organization using which of the following forms of technology?
a. small-batch
b. mass production
c. large-batch
d. continuous-process
60. A mechanistic structure is most appropriate for which of the following organizations?
a. a biotechnology company
b. an automobile manufacturer
c. a specialized chemical processor
d. a custom furniture maker
61. According to the Woodward studies, organizations that employ continuous-process technology have _________ structures and a relatively _________ span of control.
a. tall; narrow
b. tall; wide
c. flat; narrow
d. flat; wide
62. The theory that technology determines structure is known as ________.
a. transaction cost theory
b. resource dependence theory
c. the technological imperative
d. the Aston Study
63. Which of the following is a finding of the Aston Study?
a. The type of technology determines organizational structure.
b. Technology influences organizational structure more in smaller firms than it does in larger ones.
c. Technical complexity depends on task variability and task analyzability.
d. Intensive technology is associated with sequential interdependence.
64. ________ is the number of new or unexpected situations that a person encounters while performing a task.
a. Task variability
b. Task analyzability
c. Craftswork
d. Specialization
65. Charles Perrow states that the difference between routine and complex tasks is due to which of the following dimensions?
a. Task variability and task interdependence
b. Task variability and task analyzability
c. Task analyzability and technical complexity
d. Task interdependence and task analyzability
66. An evolutionary approach to change is characterized by all of the following except:
a. incremental change to organizational strategy and organizational structure.
b. benefits of making changes outweigh the costs of change.
c. a bottom-up change strategy.
d. a top-down change strategy.
67. When changing task and role relationships, managers must:
a. centralize decision making.
b. adjust the technical and social systems.
c. change the cohesiveness of a subunit.
d. change the culture.
68. The principles of total quality management are based upon ________.
a. continuous improvement
b. environmental theory
c. the rites of passage
d. organizational behavior
69. Which of the following is not an approach to implementing revolutionary change?
a. innovation
b. restructuring
c. Total Quality Management (TQM)
d. reengineering
70. A flexible work team is designed to:
a. standardize the work process.
b. be ready for revolutionary change.
c. give a team the responsibility for completing the entire task.
d. develop norms and values for efficiency.
71. A ________ is a group of workers who assume responsibility for performing all the operations necessary for completing a specified stage in the manufacturing process.
a. quality circle
b. control group
c. flexible work team
d. top management team
72. Which of the following is not a characteristic of a flexible work team?
a. The team eliminates the need for a separate quality control function.
b. Existing team members train new team members.
c. The team discusses ideas for improving productivity.
d. Managers assign team members to tasks.
73. New United Motors Manufacturing Inc. (NUMMI), a joint venture between GM and Toyota,:
a. relies primarily on robots.
b. uses flexible work teams.
c. has high absenteeism.
d. assigns managers responsibility for designing more efficient ways to perform tasks.
74. Population ecology notes that births in a new environment are rapid at first. This is because:
a. many organizations are executing a strategy at the same time.
b. many new organizations are founded by entrepreneurs that leave existing companies to set up their own companies.
c. margins are almost always higher in the early stages of an industry.
d. the population density is lowest at the early stages.
75. The benefits an organization derives from being an early entrant into the environment are called ________.
a. liability of newness
b. population growth
c. first-mover advantages
d. birth
76. McDonald's was one of the first fast-food restaurants and has a recognized name because of ________.
a. first-mover advantages
b. late entry advantages
c. top management
d. decreased competition
77. According to population ecology theorists, births diminish over time because:
a. existing organizations may engage in actions, such as extensive advertising, to deter new entrants.
b. the new environment lacks legitimacy.
c. companies are unwilling to adapt to the institutional environment.
d. isomorphism arises.
78. An organization will gain first-mover advantages when it pursues which of the following strategies?
a. r-strategy
b. k-strategy
c. generalist strategy
d. specialist strategy
79. 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. This video company is pursuing which of the following strategies?
a. r-strategy
b. k-strategy
c. specialist strategy
d. r-specialist strategy
80. Which of the following statements about generalists and specialists is true?
a. A generalist is able to provide better customer service than a specialist.
b. A specialist is better able to survive in an uncertain environment than a generalist.
c. Specialists and generalists can coexist in an environment.
d. Generalists typically have superior products.
81. Which of the following is an example of explorative learning?
a. A supplier implements a TQM program
b. A steel mill refines its production processes
c. A shoe manufacturer implements a network organization
d. A computer company uses the garbage-can model for making decisions
82. Improving an existing TQM program is an example of ________ learning.
a. explorative
b. radical
c. exploitative
d. structured
83. Which of the following is not one of the levels of organizational learning?
a. intra-individual
b. individual
c. organizational
d. interorganizational
84. Organizational learning needs to be encouraged at what four levels?
a. individual, group, division, and organization
b. individual, division, organization, and interorganization
c. group, division, organization, and interorganization
d. individual, group, organization, and interorganization
85. Senge recommends using examples of mental models at the ________ level of organizational learning.
a. individual
b. group
c. division
d. organization
86. Developing a learning organization includes all except:
a. feeling attached to a job.
b. making programmed decisions.
c. developing a commitment to work.
d. developing a taste for risk-taking.
87. Senge encourages workers to develop a sense of personal mastery by:
a. repeating a single task.
b. referring decisions to supervisors.
c. developing and using mental models.
d. using procedures and rules.
88. Why did The Gap have trouble managing the innovation process?
a. Frontline managers were not given enough authority to determine product lines.
b. Frontline managers were given too much authority to determine product lines.
c. They didn't recognize where the products were positioned in the life cycle.
d. They were not able to innovate effectively enough in production to produce a cost effective product.
89. What does the term "creative destruction" refer to?
a. Organization that focus too much on creativity so as to ignore the bottom line
b. Entrepreneurs that lack management skills
c. Old, inefficient companies being driven out of the market by new ones 20
d. Obsolete products that never make it to market
90. The leaders of innovation and new product development in established organizations are called ________.
a. project managers
b. team leaders
c. intrapreneurs
d. entrepreneurs
91. What is a knowledge-creating organization?
a. One that provides a knowledge service, such as a web search engine.
b. A research firm finding a cure for a disease.
c. One in which innovation is occurring at all levels of the organization.
d. One in which intrapreneurs share ideas.
92. What is the first step in the project management process?
a. developing a critical path model
b. charting all activities on a PERT chart
c. developing a clear plan to take the product from its concept phase to market
d. aligning product champions
93. A PERT/CAM network would most likely be used during ________.
a. quantum change
b. incremental change
c. project management
d. stage 1 of the stage gate model
94. Which innovation technique is most likely to ensure that projects receive the necessary funding?
a. product champion
b. stage-gate development funnel
c. intrapreneurs
d. product team structure
95. A manufacturing manager refuses to cooperate with a sales manager because they had a big fight last month. This is an example of ________.
a. conflict aftermath
b. manifest conflict
c. felt conflict
d. perceived conflict
96. The method chosen to manage conflict depends on:
a. the tallness of the hierarchy.
b. the source of the problem.
c. property rights.
d. integrating mechanisms.
97. Which structure will most likely cause conflict as an organization grows and differentiates?
a. functional
b. product division
c. product team
d. market
98. An organization can best manage conflict by implementing a(n) __________ structure and by ___________ authority.
a. organic; centralizing
b. organic; decentralizing
c. mechanistic; centralizing
d. mechanistic; decentralizing
99. Which of the following describes the relationship between power and conflict?
a. Power and conflict are not related.
b. Groups can use their power to resolve conflicts in their favor.
c. If a group has power, other groups will not engage in conflict with it.
d. Power is the primary source of conflict.
100. Which of the following is not a source of power?
a. conflict
b. centrality
c. nonsubstitutability
d. control over uncertainty