Deck 1: Organizations and Organizational Effectiveness

Question 1

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

Answer 1

False

Question 2

The internal systems approach considers corporate culture.

Answer 2

True

Question 3

Organizational structure can be shaped by organizational culture.

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

Economies of scale are cost savings achieved when an organization manufactures products in large volumes.

Question 10

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

Question 11

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

Question 12

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

Question 13

One of the difficulties in studying organizations is that they are intangible. In other words, we cannot touch or see them.

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

An organization:

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

Question 22

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

Question 23

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

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

Question 24

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

Question 25

Operative goals give employees direction.

Question 26

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

Question 27

The organization's environment includes all except ________.

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

Question 28

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

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

Question 29

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

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

Question 30

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 exert power and control to achieve goals
D) To provide people with jobs

Question 31

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

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

Question 32

One of the main problems with Xerox's structure was that the decentralized structure was not very effective for creating new and innovative products

Question 33

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

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

Question 34

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

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

Question 35

An organization's output include all except ________.

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

Question 36

An organization's inputs include all except ________.

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

Question 37

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

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

Question 38

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

Question 39

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

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

Question 40

In the Xerox case, Mulcahy's structural changes were the primary reason for the successful turnaround

Question 41

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

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

Question 42

________ 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) Competitive advantage
C) Organizational design
D) Strategy

Question 43

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

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

Question 44

Which of the following approaches is concerned with measuring productivity?

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

Question 45

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

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

Question 46

When organizational design is poor, ________.

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

Question 47

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) exerting power and control.
C) increasing division of labor.
D) managing the external environment.

Question 48

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) culture
D) structure

Question 49

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

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

Question 50

________ is a means of implementing strategy.

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

Question 51

The means an organization uses to achieve its goals are:

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

Question 52

Organizational culture:

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

Question 53

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

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

Question 54

The process of selecting organizational structure and organizational culture is ________.

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

Question 55

Organizational design:

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

Question 56

________ is the formal system of task and authority relationships.

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

Question 57

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

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

Question 58

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

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

Question 59

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) the organization's mission
D) organizational design

Question 60

Organizational design is:

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

Question 61

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 62

________ goals provide legitimacy to the organization.

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

Question 63

________ 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) Organizational design
C) Innovation
D) Efficiency

Question 64

List four examples of "organizational inputs."

Question 65

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

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

Question 66

Operative goals:

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

Question 67

Which of the following approaches considers organizational culture?

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

Question 68

The Ford Motor case best illlustrates ________.

A) how different cultures can both succeed
B) how important it is to restructure in the global economy
C) how not managing change can negatively impact the organization
D) how a structure that is tall and inefficient can cause an organization to decline.

Question 69

List two examples of what an organization uses to transform inputs and add value.

Question 70

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

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

Question 71

List four examples of "organizational outputs."

Question 72

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

Question 73

Reducing time to market is:

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

Question 74

In the late 1990s, what did the toy maker Mattel do in response to what it perceived were changing consumer needs?

A) Re-focused its efforts on classic toys, such as Barbie
B) Tried to become a major player in the computer game market
C) Entered the retail arena
D) Tried to acquire more of the game market through lower prices

Question 75

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

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

Question 76

________ goals provide employee direction.

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

Question 77

________ 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 78

The Southwest Airlines case illustrates ________.

A) the contingency approach to organizational design
B) How economies of scope can make an airline profitable
C) how a structure that results in lower costs can be a competitive advantage
D) how Herb Keheller created a "fun place to work"

Question 79

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

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

Question 80

The case, "Mattel's Rocky Road" best illlustrates ________.

A) how mergers and acquisitions are not always the best strategy
B) the technical approach to measurement
C) economies of Scale in production.
D) how operative goals can change over time