Deck 1: Organizations and Organizational Effectiveness

Question 1

Organizational culture:

A)controls behavior within an organization.
B)is the formal system of task and authority relationships.
C)remains the same once it is developed.
D)is shaped primarily by an organization's environment.

Answer 1

A

Question 2

Which of the following approaches is concerned with measuring productivity?

A)External resource
B)Technical
C)Transaction cost
D)Internal system

Answer 2

B

Question 3

Organizational design:

A)reduces innovation.
B)consists of two components-strategic management and organizational behavior.
C)does not allow for contingencies.
D)can help a company control its environment.

Answer 3

D

Question 4

Coca- Cola takes pride in a long- term commitment to employees; Pepsi is very political and competitive. These are differences in .

A)structure
B)design
C)culture
D)theory

Question 5

Which of the following is not a reason for creating an organization?

A)To manage the external environment
B)To achieve economies of scale
C)To provide people with jobs
D)To exert power and control to achieve goals

Question 6

means developing an organization's skills and capacities so that the organization can discover and take advantage of new products and processes.

A)Efficiency
B)Innovation
C)Organizational theory
D)Control

Question 7

An organization's inputs include all except .

A)finished goods
B)money and capital
C)information and knowledge
D)raw materials

Question 8

Which of the following is not an advantage of organizational design?

A)It can help an organization control its environment.
B)It is a good approach for evaluating organizational effectiveness.
C)It can increase organizational efficiency.
D)It can help a company manage diversity.

Question 9

is a tool used by people to coordinate their actions to obtain something they desire or value.

A)A hierarchy
B)Shareholder wealth
C)Entrepreneurship
D)An organization

Question 10

is the formal system of task and authority relationships.

A)Organizational behavior
B)Organizational culture
C)Organizational structure
D)Organizational theory

Question 11

are cost savings that result when goods and services are produced in large volume on automated production lines.

A)Inputs
B)Output
C)Economies of scale
D)Economies of scope

Question 12

The is a method that allows managers to evaluate how effectively an organization functions and operates.

A)internal research approach
B)technical approach
C)economic approach
D)external research approach

Question 13

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)organizational design
C)change management
D)the organization's mission

Question 14

The organization's environment includes all except .

A)competitors
B)suppliers
C)distributors
D)raw materials

Question 15

is a means of implementing strategy.

A)Organizational missions
B)Organizational theory
C)Entrepreneurship
D)Organizational design

Question 16

At Microsoft, to control scientists and make use of their talents, Bill Gates put them in teams. This was a change in _ _.

A)theory
B)strategy
C)structure
D)culture

Question 17

means developing modern production facilities using new information technologies that can produce and distribute products in a timely and cost- effective manner.

A)Control
B)Efficiency
C)Organizational design
D)Innovation

Question 18

A large restaurant chain decides that they are going to start serving breakfast in order to better utilize the expense equipment that they purchased to cook with. They are taking advantage of:

A)transaction costs.
B)economies of scope.
C)outputs.
D)economies of scale.

Question 19

Which of the following approaches is most concerned with the conversion stage of the value creation process?

A)Internal system
B)Technical
C)External resource
D)Strategic group

Question 20

Jeffrey Bezos saw the opportunity to sell books over the Internet, which was growing. This is an example of _ _.

A)managerial expertise
B)education
C)organizational theory
D)entrepreneurship

Question 21

The is a method that allows managers to evaluate how effectively an organization manages and controls its external environment.

A)transaction approach
B)technical approach
C)internal research approach
D)external research approach

Question 22

In the conversion process, an organization creates value by applying all except .

A)raw materials
B)computers
C)human skills
D)machinery

Question 23

Reducing time to market is:

A)a goal using the external resource approach.
B)an official goal.
C)a goal using the technical approach.
D)an operative goal.

Question 24

When organizational design is poor, .

A)bureaucratic costs are lower
B)managers usually increase the number of products offered
C)managers usually increase R&D expenses
D)an organization will decline

Question 25

goals provide legitimacy to the organization.

A)Official
B)Profit
C)Operative
D)Long- term

Question 26

An organization:

A)increases transaction costs.
B)is a tangible entity.
C)has little power over individuals.
D)facilitates the division of labor.

Question 27

Organizational design is:

A)a way to measure organizational efficiency.
B)a source of competitive advantage.
C)important only to large companies.
D)a way to measure organizational effectiveness.

Question 28

Because a toy maker sells a large amount of toys, it is able to acquire plastic products to make the toys at a cheaper price than the competition. The toy maker is taking advantage of:

A)economies of scope.
B)economies of scale.
C)organizational design.
D)organizational culture.

Question 29

is recognizing the opportunity to satisfy a need and collecting resources to meet that need.

A)Strategic management
B)Organizational behavior
C)Entrepreneurship
D)Organizational theory

Question 30

A computer manufacturer was concerned about its effectiveness, so it eliminated a level in its hierarchy and decentralized decision- making authority. Which of the following approaches is it using to evaluate organizational effectiveness?

A)External resource
B)Transaction cost
C)Internal system
D)Technical

Question 31

Differences in race, gender, and national origin of organizational members pertain to .

A)organizational design
B)diversity
C)competitive advantage
D)efficiency and innovation

Question 32

are the costs associated with negotiating, monitoring, and governing exchanges between people.

A)Economies of cost
B)Economies of scale
C)Transaction costs
D)Salaries

Question 33

An organization's output include all except .

A)suppliers
B)finished goods
C)services
D)value for stakeholders

Question 34

Which of the following is not a stage in the value creation process?

A)Output
B)Input
C)Market
D)Conversion

Question 35

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)Managerial expertise
B)Organizational design
C)Strategy
D)Competitive advantage

Question 36

Which of the following are contingencies that cause the organization to face uncertainty?

A)The technological environment and organizational design
B)The technological environment and organizational processes
C)Organizational design and organizational processes
D)The organizational environment and organizational design

Question 37

goals provide employee direction.

A)Official
B)Operative
C)Long- term
D)Profit

Question 38

When local store managers attempt to spot trends and changes so they can respond to customer needs, they are:

A)using large- scale technology.
B)managing the external environment.
C)exerting power and control.
D)increasing division of labor.

Question 39

is the study of how organizations function and how they affect and are affected by the environment in which they operate.

A)Organizational theory
B)Organizational structure
C)Organizational behavior
D)Organizational culture

Question 40

The process of selecting organizational structure and organizational culture is .

A)organizational environment
B)organizational domain
C)organizational behavior
D)organizational design

Question 41

means having control over the external environment and having the ability to attract resources and customers.

A)Effectiveness
B)Managerial expertise
C)Organizational strategy
D)Control

Question 42

Amazon.com was created to satisfy the need to buy books over the Internet.

Question 43

Entrepreneurship is the process by which people recognize opportunities to structure organizations more efficiently.

Question 44

Organizational theory is primarily concerned with how an organization can outperform its competitors.

Question 45

When an organization shares resources across several products and tasks, it is able to:

A)achieve economies of scope.
B)minimize transaction costs.
C)achieve economies of scale.
D)maximize transaction costs.

Question 46

Organizational structure is used to control and coordinate people's actions.

Question 47

If a company uses the external resource approach, which of the following goals will it consider most important?

A)Increasing the rate of product innovation
B)Reducing conflict
C)Raising stock price
D)Reducing production costs

Question 48

A large company was successful, but has been losing market share and laying off workers. Product development has been slow. What could be the source of the problem, and what can be done to resolve it?

Question 49

You are a consultant to Company X. The CEO insists that effectiveness must be evaluated by an increase in stock price to satisfy stockholders. The marketing vice president insists that the main goal is to reduce the time to bring products to the customer. The manufacturing vice president states that costs should be the key focus of the organization. What approach is each manager using to evaluate organizational effectiveness, and what can this organization do to ensure that effectiveness is properly evaluated?

Question 50

The internal systems approach evaluates an organization's ability to obtain resources.

Question 51

The process by which organizations move from their present state to some desired future state is called .

A)scanning the environment
B)transaction analysis
C)organizational change
D)restructuring

Question 52

One reason that organizations exist is so that they can exert power and control.

Question 53

The internal systems approach considers corporate culture.

Question 54

Compare and contrast how structure played a role in the success/failure of Michael Dell at Dell Computer versus Steven Jobs at Apple computer.

Question 55

Finding new and improved ways of using resources and capabilities to increase value is called

A)organizational change.
B)organizational design.
C)environmental scanning.
D)environmental analysis.

Question 56

Operative goals:

A)provide legitimacy to the organization.
B)focus only on the short term.
C)can be used to measure how well an organization is managing its environment.
D)focus only on the long term.

Question 57

Which of the following approaches considers organizational culture?

A)Technical
B)External resource
C)Internal system
D)Transaction cost

Question 58

An organization's mission as stated in public documents is an official goal.

Question 59

Transaction costs are the costs associated with negotiating, monitoring, and governing exchanges between people.

Question 60

The means an organization uses to achieve its goals are:

A)organizational theory and organizational culture.
B)organizational culture and organizational design.
C)organizational structure and organizational design.
D)organizational structure and organizational culture.

Question 61

Entrepreneurship is the process by which people recognize opportunities to structure organizations more efficiently.

Question 62

Organizations that operate in the same environment will have similar organizational cultures.

Question 63

One of the main problems with Kinko's structure was that the decentralized structure was not very effective as the company grew.

Question 64

Transaction costs are the costs associated with negotiating, monitoring, and governing exchanges between people.

Question 65

The guiding principles that the organization formally states in its annual report is called the mission statement.

Question 66

The guiding principles that the organization formally states in its annual report is called the mission statement.

Question 67

The degree of specialization in small companies tends to be lower than that of large companies.

Question 68

The external resource approach evaluates an organization's ability to obtain scarce resources.

Question 69

Operative goals give employees direction.

Question 70

Studying organizations is relatively easy because they are tangible. That is, we can see and touch them.

Question 71

Organizational structure is shaped by organizational culture.

Question 72

One reason for starting an organization is to create jobs for individuals.

Question 73

Amazon.com was created to satisfy the need to buy books over the Internet.

Question 74

The external resource approach evaluates an organization's ability to implement technology.

Question 75

The environment in which an organization operates is a major source of uncertainty.

Question 76

Organizational theory is primarily concerned with how an organization can outperform its competitors.

Question 77

Economies of scope are cost savings achieved when an organization manufacturers products in large volumes.

Question 78

The degree of specialization in small companies tends to be lower than that of large companies.

Question 79

Operative goals can be either short or long term in nature.

Question 80

Organizations that operate in the same environment will have similar organizational cultures.