Quiz 1
In order to measure organizational effectiveness, an organization measures the amount of time
needed to get new products to the market, and the amount of time spent coordinating the
activities of different departments. This indicates that the organization is using the internal
systems approach to measure organizational effectiveness.
The principal purpose of organizational structure is to control how people coordinate their
actions and use resources.
Stakeholders will generally participate in an organization if they receive inducements that
exceed the value of the contributions they are required to make.
The primary responsibility of a chief operating officer (COO) is managing the organization's
internal functions.
One of the two conditions that leads to a moral hazard problem is that the agent has an
incentive to pursue goals and objectives that are different from the principal's.
“Environmental activities are often just a facade that cynical corporate actors use to continue
business as usual” is not a reason mentioned by Wright and Nyberg (2017) that limit
corporations from addressing grand challenges.
→ reasons: (a) a meaningful response to the grand challenges requires systemic intervention by
a central authority → (b) corporations are strongly focused on short-term objectives and
outcomes → (c) businesses often are major contributors to the grand challenges they are asked
to solve.
Quiz 2
Vertical differentiation refers to the way in which an organization designs its hierarchy of
authority and creates reporting relationships to link organizational roles and subunits.
An organization should increase centralization if it requires a high level of internal control.
According to the study conducted by Tom Burns and G. M. Stalker, an organization functioning
in an unstable environment should have an organic organizational structure.
As compared to a tall organization, an organization with a flat structure is most likely to
experience fewer motivation problems.
The strength of informal ties between members of the organization, the level of
decentralization and the level of horizontal differentiation affect the shape of an organization's
hierarchy.
“Managers seek to increase the number of their subordinates” is an observation made by
Parkinson that led to the development of Parkinson's law.
, Quiz 3
“Employees can easily become specialized and learn from each other” is an advantage of the
functional structure.
“A geographic structure allows some functions to be centralized at one headquarters location
and others to be decentralized to a regional level” is true regarding a geographic divisional
structure.
A product division structure is commonly used by food processors, furniture makers, and
companies that make personal care products, paper products, or other products that are
broadly similar and use the same set of support functions.
High customer satisfaction is a terminal value.
Rites of enhancement motivate organizational members to be committed to the company's
norms and values.
“Members having difficulty responding to changing conditions” is a disadvantage of the
institutionalized role orientation.
Quiz 4
An organization's environment will be less uncertain when the company decreases the variety
of products it manufactures.
The union does not like the work rules of an automobile plant. In response, the plant forms a
joint union-labor committee and gets key union leaders to join the committee. This is an
example of cooptation.
Business-level strategy is a plan to use and combine an organization's functional core
competencies to position it so it has a competitive advantage in its domain or segment of its
industry.
“An organic structure is more suitable for a differentiator than a mechanistic structure” is true
regarding an organization following a differentiation strategy.
Buying a bottling and trucking company that distributes soft drinks will be considered forward
vertical integration for a soft drinks company.
“The lower the barriers of entry, the higher the threat of new entrants, and the less profitable
the industry” is true according to Porter's five forces.
Quiz 5
Organizations that are part of the same population compete over market shares, the same set
of resources in an environment and customers.
Natural selection among organizations is a competitive process.
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