Question 1

In a large company going through the organizational life cycle, the replacement of top management may occur in its elaboration stage as it struggles to revitalize.

Accepted Answer

The elaboration stage is characterized by growth and expansion, but it can also be a challenging period as the company tries to navigate increased complexity and competition. As a result, top management may need to be replaced or restructured in order to revitalize the organization and ensure continued success.

Question 2

Larry is a great leader who has run his organization for many years, and has the kind of personality that everyone wants to be around. What type of authority does Larry have?

Accepted Answer

Larry's personality suggests that he has a charismatic authority. Charismatic authority derives from a person's personality and their ability to inspire and lead others.

Question 3

Shelli's organization operates in an industry with a great deal of competition that produces a commodity-type product. She measures success based on cost control and profit maximization. Which form of control does she use?

Accepted Answer

Shelli's focus on cost control and profit maximization suggests that she is using market control, which is appropriate for an industry with a lot of competition and a commodity-type product. Market control is based on the market's response to organizational performance, with prices and revenues serving as important indicators of success.

Question 4

In which stage does denial occur despite signs of deteriorating performance?

Accepted Answer

The inaction stage is characterized by denial and avoidance of the problem, despite clear signs of deteriorating performance. The individual may believe that the situation will improve on its own, or that they are doing enough to address the issue.

Question 5

Which of the following is a factor that causes organizational decline?

Accepted Answer

Vulnerability, such as a lack of innovation or inability to adapt to changing market conditions, can contribute to organizational decline. Increased product prices and increased market control may also have a negative impact, but they are not necessarily causes of decline. Organizational realignment could potentially lead to positive changes and growth, or may be a response to decline rather than the cause of it.

Question 6

The big/small approach may be used to combine small units in order to gain advantages of efficiencies.

Accepted Answer

The answer of The big/small approach may be used to...

Question 7

Which type of authority is the most widely used form to govern internal work activities and decision making, particularly in large organizations?

Accepted Answer

Rational-legal authority is the most widely used form of authority in large organizations. It is based on rules, procedures, and laws, and is used to govern work activities and decision-making processes within the organization. This type of authority is believed to be the most efficient and effective way to manage complex organizations.

Question 8

Which type of authority refers to employees' belief in the legality of rules and the right of those elevated to positions of authority to issue commands?

Accepted Answer

Rational-legal authority is based on the belief in the legality of rules and the right of those in positions of authority to issue commands. They are seen as legitimate because they operate within a formal system of laws and regulations.

Question 9

In the collectivity stage, departments are established along with a hierarchy of authority, job assignments, and a beginning division of labour.

Accepted Answer

This statement is true as the collectivity stage marks the establishment of departments and the beginning of the division of labor, along with a hierarchy of authority and job assignments.

Question 10

There are ten stages of life cycle development an organization must generally go through in order to reach the final stage when rewards are personal and aimed at those who contribute to organizational success.

Accepted Answer

The concept of organizational life cycle typically includes fewer stages, such as startup, growth, maturity, and decline, rather than ten distinct stages.

Question 11

Ninety-nine percent of businesses that make it past the first year still fail within five years because they can't make the transition from the entrepreneurial stage.

Accepted Answer

The statement is incorrect. According to the Small Business Administration, about two-thirds of businesses with employees survive at least 2 years and about half survive at least 5 years. However, the failure rate does tend to increase over time.

Question 12

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

Accepted Answer

The answer of The elaboration stage involves the installation and...

Question 13

What term is used for a condition in which a substantial, absolute change in an organization's resource base occurs over a period of time?

Accepted Answer

Organizational decline refers to a substantial, absolute change in an organization's resource base over time, often leading to reduced performance or failure.

Question 14

The life-cycle phenomenon is a powerful concept used for understanding problems facing organizations and how managers can respond in a positive way to move an organization to the next stage.

Accepted Answer

The life-cycle phenomenon is a widely accepted concept for understanding the problems faced by organizations and how managers can respond to move the organization to the next stage.

Question 15

When downsizing, which of the following helps eases the downsizing process and reduces tension of both employees who leave and those who remain?

Accepted Answer

Providing assistance, such as outplacement services or severance packages, can help ease the transition for employees who were let go and show remaining employees that the company cares about their well-being.

Question 16

Weber believed that a well-managed bureaucracy would ensure efficient organizational functioning in both government and business settings.

Accepted Answer

Weber is known for his theory of bureaucratic management, which emphasizes the importance of formal rules and procedures, hierarchical authority structures, and specialized roles and tasks. He believed that a well-managed bureaucracy would ensure efficient organizational functioning in both government and business settings.

Question 17

Despite the increasing size of many companies, the economic vitality of North America is tied to small and mid-sized businesses.

Accepted Answer

According to various studies and reports, small and mid-sized businesses are major contributors to job creation and economic growth in North America, making them crucial to the overall economic vitality of the region.

Question 18

In what stage does the organization face serious problems, and indicators of poor performance can no longer be ignored?

Accepted Answer

The answer of In what stage does the organization face...

Question 19

In what kind of organizations is clan control most often used?

Accepted Answer

Clan control is most often used in small, informal organizations or ones with a strong culture. This is because clan control relies on social norms, informal communication, and shared values, which are more prevalent in smaller organizations with an established culture. In larger or more formal organizations, other types of control, such as bureaucratic or market control, may be more effective.

Question 20

The following organization is in its collectivity stage: Employees at Ace identify with the company mission and goals, and they typically put in 55-hour work weeks. Ace is established in the marketplace, and is concentrating on getting more and more dealers to sign on. Ace does not have a written policies and procedures manual for its own employees.

Accepted Answer

The organization is in its collectivity stage, as indicated by the employees identifying with the company mission and goals, as well as the company's focus on expanding their dealers. However, the lack of a written policies and procedures manual suggests that they may still be in the entrepreneurial stage of development.

Quiz 9: Organization Size, Life Cycle, and Decline