Deck 11: Organizational Transformations: Birth, Growth, Decline, and Death

Question 1

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

Answer 1

False

Question 2

Population ecology theory seeks to explain the factors that affect the rate at which new organizations are born (and die) in a population of existing organizations.

Answer 2

True

Question 3

The institutional environment is the set of values and norms that govern the behavior of a population of organizations.

Answer 3

True

Question 4

Early in an environment, as a niche develops and new resources become available, new organizations that begin to operate in this niche tend to be K-generalists.

Question 5

Organizational isomorphism is the process by which organizations in a population become more alike or similar.

Question 6

The term population density refers to the number of organizations that have the same rate of growth in a particular industrial segment.

Question 7

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

Question 8

Specialists can often outcompete generalists when there is considerable uncertainty in the environment.

Question 9

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.

Question 10

The Institutional theory argues that the organizations operating in uncertain environments should use a tall hierarchy of authority.

Question 11

A "population of organizations" comprises the organizations that are going through the same stage of organizational life cycle at the same time.

Question 12

The term environmental niche refers to a particular set of resources or skills.

Question 13

Organizations that follow a K-strategy are founded early in a new environment-they are early entrants.

Question 14

Specialist organizations concentrate their competences and skills to compete for resources
in a single niche.

Question 15

According to population ecology theory, the availability of resources determines the number of organizations in a population.

Question 16

Specialists and generalists normally coexist in many environments.

Question 17

The term "liability of newness" refers to the dangers associated with being the first to operate in a new environment.

Question 18

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

Question 19

The organizational growth stage in the organizational life cycle is associated with the greatest chance of failure.

Question 20

Natural selection is the process that ensures the survival of the organizations that have the skills and abilities that best fit with the environment.

Question 21

The dangers associated with being the first to operate in a novel environment is known as the ________.

A) external liability
B) liability of inertia
C) liability of newness
D) dependence liability

Question 22

Managers and employees frequently move from one organization to another and bring with them the norms and values of their former employers. This leads to coercive isomorphism.

Question 23

Which of the following terms refers to a particular set of resources or skills?

A) population density
B) environmental niche
C) clustered skill set
D) resource conglomeration

Question 24

The term population density refers to the number of organizations that ________.

A) have the same rate of growth in a particular industrial segment
B) operate in the same market segment and employ more than 1000 employees
C) can compete for the same resources in a particular environment
D) are at the same stage in the organizational life cycle at a particular time

Question 25

All the fast-food restaurants in Houston, Texas, compete to obtain environmental resources in the form of dollars that people are willing to spend on to obtain food conveniently. This group of restaurants is an example of a(n) ________.

A) group of boundary spanners
B) cluster of environmental niches
C) aggregation of marketers
D) population of organizations

Question 26

Organizations are born when people called ________ recognize and take advantage of opportunities to use their skills and competences to create value.

A) boundary spanners
B) entrepreneurs
C) whistle-blowers
D) free riders

Question 27

According to Greiner's model of organizational growth, the stage of "growth through collaboration" immediately follows the stage of "growth through direction."

Question 28

According to Greiner's model of organizational growth, during the "growth through direction stage" an organization experiences a crisis of autonomy.

Question 29

According to Greiner's model of organizational growth, organizations experience a crisis of control during the "growth through creativity" stage.

Question 30

According to Weitzel and Jonsson's model of organizational decline, "faulty action" is the first stage of decline.

Question 31

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.

Question 32

According to population ecology theory, ________.

A) organizations experience the greatest risk of failure during the growth stage of the organizational life cycle
B) the number of organizations in a population is determined by the availability of resources
C) all the organizations move through the four stages of the life cycle but at different rates
D) shareholders are the most important stakeholders in an organization

Question 33

The term "organizational inertia" refers to the forces outside an organization that make it difficult for the organization to change.

Question 34

Which of the following stages of the organizational life cycle is associated with the greatest chance of failure?

A) organizational growth
B) organizational death
C) organizational decline
D) organizational birth

Question 35

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

Question 36

Which of the following terms refers to a sequence of stages of growth and development through which organizations may pass?

A) organizational life cycle
B) organizational integration
C) organizational metamorphosis
D) organizational decentralization

Question 37

Which of the following theories seeks to explain the factors that affect the rate at which new organizations are born (and die) in a population of existing organizations?

A) contingency theory
B) population ecology theory
C) institutional theory
D) transaction cost theory

Question 38

The term ________ of organization refers to the organizations that are competing for the same set of resources in the environment.

A) population
B) cluster
C) conglomeration
D) aggregation

Question 39

The first stage of growth in Greiner's model of organizational growth is "growth through delegation."

Question 40

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

Question 41

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

A) environmental benchmark
B) cultural cluster
C) population density
D) institutional environment

Question 42

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

A) Organizations following an r-strategy
B) Generalist organizations
C) Organizations following a K-strategy
D) Specialist organizations

Question 43

An organization that increasingly depends on other organizations will tend to adopt their values and norms so it will become increasingly similar to them. This is an example of ________.

A) coercive isomorphism
B) environmental institutionalization
C) normative isomorphism
D) natural selection

Question 44

According to the population ecology theory, which of the following strategies advocates entering an environment late, after the uncertainty in that environment is reduced and the correct way to compete is apparent?

A) r-strategy
B) generalist strategy
C) K-strategy
D) specialist strategy

Question 45

Which of the following statements is most likely to be true about generalists?

A) Generalists concentrate their competences and skills to compete for resources in a single niche.
B) Generalists are more likely to use matrix organizational structure than specialists.
C) Generalists are more likely to use product differentiation strategy than the specialists.
D) Generalists can often outcompete specialists when there is considerable uncertainty in the environment.

Question 46

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

A) Specialists compete for resources in many or all niches in an environment.
B) Typically, a specialist is better able to survive in an uncertain environment than a generalist.
C) Specialists are often able to develop core competences that allow them to outperform generalists in that niche.
D) As compared to generalists, specialists produce a wider range of products.

Question 47

A large, established organization pursues a broad range of resources in many niches. This company created a new niche in which a new firm could enter and survive. Which of the following strategies is most likely to be used by the organization that enters the newly created niche?

A) r-specialist
B) r-generalist
C) K-specialist
D) K-generalist

Question 48

An entrepreneur designs a new product. Which of the following strategies is most likely to be pursued by the entrepreneur?

A) r-specialist
B) r-generalist
C) K-specialist
D) K-generalist

Question 49

Which of the following statements is most likely to be true regarding an organization that follows an r-strategy?

A) Organizations following an r-strategy always concentrate their competences and skills to compete for resources in a single niche.
B) Typically, organizations use an r-strategy when they are operating in an oligopoly.
C) An organization following an r-strategy obtains first-mover advantages.
D) Typically, an r-strategy is used by that organization which has diversified its business in unrelated areas.

Question 50

________ is the process that ensures the survival of the organizations that have the skills and abilities that best fit the environment.

A) Triangulation
B) Stimulus generalization
C) Natural selection
D) Habituation

Question 51

Organizational ________ is the life cycle stage in which organizations develop value-creation skills and competences that allow them to acquire additional resources.

A) growth
B) clustering
C) birth
D) decline

Question 52

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

A) r-strategy
B) K-strategy
C) generalist strategy
D) specialist strategy

Question 53

Population ecologists have identified two sets of strategies that organizations can use to gain access to resources and enhance their chances of survival in the environment. Which of the following is one of these strategies?

A) vertical integration strategy
B) related diversification strategy
C) r-strategy
D) cost leadership strategy

Question 54

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

A) Organizations pursuing r-strategy
B) Generalist organizations
C) Organizations pursuing K-strategy
D) Specialist organizations

Question 55

According to the population ecology theory, the number of organizational births in a new environment is rapid at first because ________.

A) the organizations have very few external stakeholders
B) there is an increase in the knowledge and skills available to generate similar new organizations
C) the environment of the organizations is highly stable
D) the bargaining power of the suppliers of the organizations is high

Question 56

The benefits an organization derives from being an early entrant into a new environment are called ________.

A) whistle-blower's advantages
B) advantages of clustering
C) first-mover advantages
D) advantages of boundary spanning

Question 57

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?

A) r-strategy
B) K-strategy
C) specialist strategy
D) generalist strategy

Question 58

Which of the following statements is most likely to be true regarding an organization that follows a K-strategy?

A) Typically, organizations use a K-strategy when they have a monopoly in the industry.
B) Organizations following a K-strategy always concentrate their competences and skills to compete for resources in a single niche.
C) Typically the K-strategy is used by organizations for the introduction of highly complex technical products.
D) Organizations following a K-strategy wait to enter a new environment until the uncertainty in that environment is reduced.

Question 59

Early in an environment, as a niche develops and new resources become available, new organizations that begin to operate in this niche are likely to be ________.

A) K-specialists
B) r-specialists
C) K-generalists
D) r-generalists

Question 60

Which of the following theories proposes that an organization must gain legitimacy in the eyes of stakeholders in order to grow and survive?

A) Greiner's theory
B) population ecology theory
C) institutional theory
D) contingency theory

Question 61

In Greiner's model, the "growth through creativity" stage is immediately followed by the "growth through ________" stage.

A) direction
B) coordination
C) delegation
D) collaboration

Question 62

Which of the following is the first stage of growth according to Greiner's model of organizational growth?

A) growth through coordination
B) growth through direction
C) growth through delegation
D) growth through creativity

Question 63

According to Greiner's model of organizational growth, an organization experiences a crisis of control in the "growth through ________" stage of Greiner's model.

A) coordination
B) direction
C) delegation
D) creativity

Question 64

Managers and employees frequently move from one organization to another and bring with them the norms and values of their former employers. This leads to ________ isomorphism.

A) reciprocal
B) coercive
C) normative
D) mimetic

Question 65

An auto manufacturer increased its effectiveness by implementing total quality management (TQM). Many other companies have intentionally imitated this manufacturer in order to increase their effectiveness. This is an example of ________ isomorphism.

A) coercive
B) mimetic
C) normative
D) natural

Question 66

According to Greiner's model of organizational growth, to resolve the crisis of control, an organization enters into the "growth through ________" stage.

A) delegation
B) coordination
C) creativity
D) direction

Question 67

Many of the top software engineers in an organization left the company because they felt lost in the growing organizational bureaucracy and became frustrated with their lack of autonomy. According to Greiner's model of organizational growth and based on the given information, the company is most likely to be in the "growth through ________" stage of organizational growth.

A) creativity
B) association
C) direction
D) integration

Question 68

According to Greiner's model of organizational growth, which of the following statements is true regarding the "growth through delegation" stage?

A) This is the first stage of growth in the Greiner's model of organizational growth.
B) During this stage an organization experiences a crisis of red tape.
C) Organizations solve the crisis occurring in this stage by moving into the "growth through coordination" stage.
D) This stage is immediately followed by the "growth through creativity" stage.

Question 69

A new organization tends to imitate the structure and processes of successful organizations when the environment is highly uncertain and so it needs to search for a structure, strategy, culture, and technology that will increase its chance of survival. This process of imitation results in ________ isomorphism.

A) mimetic
B) normative
C) coercive
D) natural

Question 70

According to Greiner's model of organizational growth, which of the following stages immediately follows the "growth through direction" stage?

A) growth through creativity
B) growth through delegation
C) growth through collaboration
D) growth through coordination

Question 71

________ proposes that during the process of organizational growth each stage ends with a crisis that must be resolved before the organization can advance to the next stage.

A) Population ecology model
B) Institutional theory
C) Greiner's model
D) Transaction cost theory

Question 72

Which of the following controls an organization's behavior when it is in the "growth through creativity" stage of Greiner's model?

A) organizational culture
B) organizational structure
C) rules and standard operating procedures
D) industrial benchmarking

Question 73

According to Greiner's model, an organization experiences crisis of leadership in "growth through ________" stage.

A) collaboration
B) creativity
C) coordination
D) delegation

Question 74

According to Greiner's model of organizational growth, during the "growth through coordination" stage an organization experiences crisis of ________.

A) autonomy
B) inaction
C) red tape
D) control

Question 75

Organizations indirectly acquire specific sets of values and norms through membership in industry, trade, and professional associations. Through meetings, personal contacts, and publications, these associations promote specific ideas and norms to their members. This leads to ________ isomorphism.

A) mimetic
B) reciprocal
C) coercive
D) normative

Question 76

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

A) Coercive
B) Mimetic
C) Normative
D) Natural

Question 77

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

A) coercive
B) mimetic
C) normative
D) reciprocal

Question 78

Which of the following is one of the five stages in Greiner's model of growth?

A) direction
B) integration
C) association
D) centralization

Question 79

According to Greiner's model of organizational growth, during the "growth through direction" stage an organization experiences a crisis of ________.

A) leadership
B) control
C) autonomy
D) red tape

Question 80

________ is the process by which organizations in a population become more alike or similar.

A) Natural selection
B) Cultural clustering
C) Organizational isomorphism
D) Organizational institutionalization