1. Which of the following structures is most appropriate for an organization that operates in a dynamic environment?
Differentiated
Systematic
Mechanistic
Organic

2. 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. This video company is pursuing which of the following strategies?
R-strategy
Specialist strategy
K-strategy
R-specialist strategy

3. Building alliances with important customers is a valuable tactic because:
external linkages can provide power
stakeholders share goals
control of information provides power
common ties are a source of power

4. Stakeholders will generally participate in an organization if
contributions exceed inducements
inducements exceed kickbacks
payments exceed contributions
inducements exceed contributions

5. At the B.A.R and Grille Restaurant, Bob and Amanda took turns cooking and waiting on tables. This type of organization is
complex
specialized
simple
coordinated

6. A large retail store has a high level of organizational inertia. Managers and employees are highly resistant to change. Which of the following is most likely to encourage organizational learning and improve the quality of decision making?
Experimenting with new ideas
Replacing the top-management team
Adopting a mechanistic structure
Listening to dissenters

7. If a company needs a high level of coordination among group members
top management should be organized in a circle configuration
it is better for top-management membership to continuously change
top management should be organized in a wheel configuration
it is better for top-management team members to have similar backgrounds

8. ________ is the study of how organizations function and how they affect and are affected by the environment in which they operate.
Organizational culture
Organizational theory
Organizational behavior
Organizational structure

9. Company XYZ is missing many new opportunities because employees do not take responsibilities or risks. What is the primary design challenge facing this organization?
Coordinating the formal and informal organization
Establishing levels of horizontal and vertical differentiation
Balancing differentiation and integration
Balancing centralization and decentralization

10. 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?
Technical
Transaction cost
External resource
Internal system

11. Creative destruction is when
the creative process becomes too important to an organization and they forget their core business
entrepreneurs are forced to start their own companies.
an organization's own innovations make its existing product lines obsolete
new, creative organizations drive older, less efficient organizations out of business

12. An organization that uses the internal systems approach to measure organizational effectiveness will most likely employ technology to
reduce costs
improve quality
reduce product development time
increase customer service

13. When local store managers attempt to spot trends and changes so they can respond to customer needs, they are
managing the external environment
increasing division of labor
exerting power and control
using large-scale technology

14. Core team members in a new product development effort
are top managers
typically work on only one development project at a time
are usually engineers
refers to a group of 10 people who are assigned primary responsibility for product development

15. Which innovation technique is most likely to ensure that projects receive the necessary funding?
Stage-gate development funnel
Product champion
Product team structure
Intrapreneurs

16. A large computer manufacturer makes complex products such as notebook computers and multimedia software. This company uses direct contact and the hierarchy of authority to coordinate and control activities. What design challenge does this organization face?
Balancing centralization and decentralization
Balancing standardization and mutual adjustment
Coordinating the informal and formal organizations
Balancing differentiation and integration

17. A computer manufacturer uses its competence in product design to produce laser printers. This company is pursuing which of the following strategies?
Unrelated diversification
Product development
Related diversification
Vertical integration

18. Amazon.com's addition of CD's and gifts represents
reengineering
an incremental innovation
revolutionary change
quantum innovation

19. Honda takes its strength in engine production and uses it to produce cars, motor bikes, and lawn mowers, creating value in different markets. This is an example of ________ strategy.
marketing
business-level
corporate-level
development

20. If an organization wants to achieve stability and predictability, what socialization tactics should it employ?
Sequential, serial, divestiture
Collective, informal, investiture
Sequential, disjunctive, investiture
Random, collective, disjunctive

21. ________ strategy is a plan to use and develop core competences so that the organization not only can protect and enlarge its domain but can also expand into new domains.
Business-level
Global level
Corporate-level
Functional-level

22. ________ defines a strategy for generating and acquiring knowledge that managers can use to define an organization's future state.
Action research
Organizational development
Revolutionary change
Benchmarking

23. Which of the following structures is most appropriate for an organization that operates in a stable environment?
Mechanistic
Systematic
Organic
Differentiated

24. One manager has responsibility for coordinating the Diaper and Baby Soap divisions to enhance marketing activities. Which of the following integrating mechanisms is being used in this example?
Direct contact
Hierarchy of authority
Integrating role
Liaison role

25. Which of the following approaches is concerned with measuring productivity?
External resource
Technical
Internal system
Transaction cost

26. ________ is the technology that involves groups of skilled workers who interact closely to produce custom-designed products.
Mass production
Craftswork
Engineering technology
Progressive manufacture

27. To retain innovative R&D scientists, an organization needs to
adopt a mechanistic structure
have strong property rights
establish a joint venture
adopt TQM

28. Which of the following is an inside stakeholder group?
Trade unions
Suppliers
Shareholders
Customers

29. Bringing in an outside expert is a tactic to
present an objective point of view
shed new light on the conflict
present a neutral point of view
present the view of the coalition in power

30. To maintain a capacity for innovation, an organization should
decrease property rights
recruit like-minded scientists
maintain diversity in scientists
centralize authority