Deck 10: Organization Size, Life Cycle and Decline

Question 1

Which stage of decline is characterized by chaos, workforce downsizing, changes in structure, and erosion of the social fabric of the organization?

A) Blinded stage
B) Faulty action stage
C) Dissolution stage
D) Crisis stage
E) Inaction stage

Answer 1

D

Question 2

The decision making at Jerome's organization is partly the responsibility of the middle and even the lower level managers. His organization is of a size large enough that having top levels of management to make all the necessary decisions would prove to be counter- productive for the business. It is most probable that Jerome's organization is .

A) traditionally authoritative
B) centralized
C) bureaucratic
D) a charismatic authority
E) decentralized

Answer 2

E

Question 3

Which of the following is a characteristic or an advantage of a small organization?

A) Flat structure, organic
B) Economies of scale
C) Complex
D) Global reach
E) Stable market

Answer 3

A

Question 4

Charismatic and direction-giving top management style is characteristic during which stage of the organizational life cycle?

A) Entrepreneurial
B) Formalization
C) Elaboration
D) Delegation
E) Collectivity

Question 5

The term organizational decline is used to define a condition in which a substantial, absolute decrease in an organization's resource base occurs over a period.

Question 6

Too much red tape is a crisis during which stage of the organizational life cycle?

A) Entrepreneurial
B) Formalization
C) Elaboration
D) Delegation
E) Collectivity

Question 7

What organizational life cycle stage would most likely have the characteristics of being non-bureaucratic, the top manager provides the structure and control system for the organization, and it is a one-person show?

A) Entrepreneurial stage
B) Collectivity stage
C) Elaboration stage
D) Formalization stage
E) Innovation stage

Question 8

Formalization refers to rules, procedures and written documentation that prescribe the goals of the company.

Question 9

Vulnerability reflects an organization's strategic ability to prosper in its environment.

Question 10

At what life cycle stage would an organization most likely begin to develop clear goals and direction and have established departments along with a hierarchy of authority?

A) Elaboration stage
B) Entrepreneurial stage
C) Formalization stage
D) Collectivity stage
E) New birth stage

Question 11

Bureaucracy is an organizational framework marked by rules and procedures, specialization and division of labour, hierarchy of authority, technically qualified personnel, separate position and incumbent and written communications and records.

Question 12

All of the following are methods to more effectively downsize an organization except which one?

A) Communicate openly to employees about what is happening
B) Provide counselling services to surviving workers
C) Provide training for displaced workers
D) Provide assistance in finding new employment to departing workers
E) Maintain silence about the pending downsizing so as to prevent panic

Question 13

What percentage of businesses that make it past the first year still fail within five years because they cannot make the transition from the entrepreneurial stage?

A) 25%
B) 79%
C) 80%
D) 18%
E) 62%

Question 14

When an organization has a substantial, absolute decrease in its resource base that occurs over time, it is most likely experiencing which of the following?

A) Organizational decline
B) Organizational atrophy
C) Vulnerability
D) Downsizing
E) The dissolution stage

Question 15

refer(s) to the proportions of administrative, clerical and professional support staff.

A) Incident command systems
B) Organizational decline
C) Collectivity
D) Personnel ratios
E) Atrophy

Question 16

All of the following statements are true regarding large-sized organizations except which one?

A) Large organizations can recoup faster and get back to business quicker than small firms after any form of disaster.
B) Large size organizations are more adept at finding niches in the market arena.
C) Larger organizations have more resources and are thus better able to compete globally.
D) Once a large organization becomes established, its presence can be stabilizing to the market for years.
E) They provide employees a better chance for employment longevity.

Question 17

The formalization stage involves the installation and use of rules, procedures and control systems.

Question 18

Who or what is attributed with the development of the dimensions of bureaucracy?

A) Richard Cavanagh
B) UPS
C) Max Weber
D) Max Van Helsing
E) President Jimmy Carter