Question 1

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

Accepted Answer

The term "liability of newness" refers to the potential risks and challenges that a company may encounter when entering a new and unfamiliar market. These risks can include lack of brand recognition, unfamiliarity with local regulations and business practices, and difficulty in building relationships with suppliers and customers. Being the first to enter a new market can also result in significant costs and investments in research and development, marketing, and infrastructure. As a result, companies that enter new markets face a higher risk of failure than those that operate in established markets.

Question 2

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.

Accepted Answer

Coercive isomorphism refers to changes an organization makes in response to pressure from other organizations or from societal expectations, not from the transfer of norms and values by individuals moving between organizations.

Question 3

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

Accepted Answer

An environmental niche refers to the role or position a species has in its environment, including the set of resources it uses, how it interacts with other organisms, and its habitat. This concept can be extended to refer to a particular set of resources or skills in various contexts, such as business or technology, where a company or individual might focus on a specific niche market or skill set.

Question 4

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

Accepted Answer

Population density refers to the number of individuals or organizations that can compete for the same resources in a particular environment. Options A, B, and D do not relate to population density.

Question 5

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) ________.

Accepted Answer

The group of fast-food restaurants in Houston, Texas, compete for environmental resources (i.e. dollars) to obtain food conveniently. This describes a population of organizations competing for resources in a specific market.

Question 6

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

Accepted Answer

The definition of an entrepreneur is someone who recognizes and takes advantage of opportunities to create value using their skills and competences. Boundary spanners work across different areas of an organization, whistle-blowers expose illegal or unethical behavior within an organization, and free riders take advantage of the benefits of a group without contributing their fair share. None of these choices properly fit the description of someone who creates and starts an organization.

Question 7

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

Accepted Answer

According to Greiner's model of organizational growth, the stage of "growth through direction" is followed by the stage of "growth through delegation," not "growth through collaboration."

Question 8

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

Accepted Answer

During the "growth through direction" stage, an organization experiences a crisis of autonomy where there is a need for clear structures and hierarchies to manage the growing complexity and scale.

Question 9

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

Accepted Answer

The crisis of control actually occurs during the "growth through direction" stage, not the "growth through creativity" stage.

Question 10

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

Accepted Answer

According to Weitzel and Jonsson's model of organizational decline, the first stage is "blinded," where the organization fails to recognize the need for change, not "faulty action."

Question 11

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.

Accepted Answer

Isomorphism is normative as it refers to the process by which organizations in the same environment come to resemble one another through the adoption of similar norms and values.

Question 12

According to population ecology theory, ________.

Accepted Answer

Population ecology theory holds that the number of organizations in a population is determined by the availability of resources. This theory suggests that organizations compete for limited resources and those that are better adapted to their environment are more likely to survive and thrive, while those that are less adapted may struggle or fail. The theory does not necessarily suggest that all organizations move through the four stages of the life cycle at the same rate, nor does it prioritize shareholders as the most important stakeholders.

Question 13

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

Accepted Answer

Organizational inertia refers to the internal resistances and obstacles within an organization that make it difficult for the organization to change.

Question 14

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

Accepted Answer

Organizational birth is the stage associated with the greatest chance of failure because it involves the initial challenges of establishing the business, securing resources, and gaining market acceptance, all of which are critical hurdles that new organizations must overcome to survive.

Question 15

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

Accepted Answer

According to Weitzel and Jonsson, once an organization reaches the dissolution stage, it cannot recover and decline is irreversible.

Question 16

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

Accepted Answer

The term that refers to a sequence of stages of growth and development through which organizations may pass is the organizational life cycle.

Question 17

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?

Accepted Answer

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.

Question 18

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

Accepted Answer

The term "population" of organization refers to the organizations that are competing for the same set of resources in the environment. This concept is often used in organizational ecology and resource dependence theory to understand competition among organizations. A cluster refers to a group of organizations that are located in the same geographic area or operate in the same industry. A conglomeration refers to a collection of diverse businesses that are owned by a larger parent company. An aggregation refers to a collection or grouping of things, but it does not specifically relate to organizations competing for resources.

Question 19

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

Accepted Answer

The first stage of Greiner's model of organizational growth is "growth through creativity," where the focus is on creating products and services and establishing a market presence.

Question 20

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

Accepted Answer

The answer of Isomorphism is normative when organizations intentionally imitate...

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