Organizational Behavior: Multiple Choice Questions and Answers, Exams of Advanced Education

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MULTIPLE CHOICE QUESTIONS AND

ANSWERS

The key element of an organization is A) its buildings and policies. B) its people and their relationships. C) its profits. D) the location of its facilities. - B) its people and their relationships. Scientific management was A) pioneered by Henri Fayol. B) an outgrowth of the Hawthorne Studies, which found that people performed best in an environment of clearly specified, narrow job tasks. C) focused on effectiveness rather than efficiency. D) focused on increasing output, in part through the use of incentive systems. - D) focused on increasing output, in part through the use of incentive systems. The central purpose of an organization is to A) generate profits. B) serve the needs of society. C) coordinate people and resources to accomplish desired goals. D) develop new and better ways of doing things. - C) coordinate people and resources to accomplish desired goals. Which of the following is not a structural dimension of organizations? A) organizational technology B) complexity C) centralization D) specialization - A) organizational technology Contingency means that A) organizations should be structured loosely. B) management structure is determined by the era or times. C) one thing depends on other things; for example, structure depends on environment. D) the key contingent of workers should be college graduates. - C) one thing depends on other things; for example, structure depends on environment. Which of the following is a contingency rather than a structural dimension of an organization? A) labour force B) culture C) professionalism D) centralization - B) culture

An organization is A) a goal-directed entity that has members who set goals and achieve them through strategic planning. B) an entity with identifiable permanent boundaries. C) a social entity that is goal directed and has a deliberately structured activity system and a permeable boundary. D) a business that performs work activities and contributes to society by employing people. - C) a social entity that is goal directed and has a deliberately structured activity system and a permeable boundary. Some specific challenges today's managers and organizations face include all of the following, except A) ethical scrutiny. B) increasing diversity. C) a traditional workplace. D) globalization. - C) a traditional workplace. The 385-page book that McDonald's uses to describe all rules and procedures in each of its stores best represents which of the following? A) learning theory B) sequential interdependence C) formalization D) specialization - C) formalization The study of organizational behaviour is A) the same as the study of organization theory. B) a subset of the study of organization theory. C) a focus on people, structure, and environment. D) different from the study of organization theory because it has a different focus. - D) different from the study of organization theory because it has a different focus. From the institutional view, which of the following is true about the two essential dimensions of organization? A) The institutional structure is the part of the organization that is most visible to the outside public. B) The public dimension is governed by norms of efficiency. C) The technical dimension will reflect environmental expectations rather than the demands of work activities. D) The formal structure and design process are rational with respect to work flow and products. - A) The institutional structure is the part of the organization that is most visible to the outside public. Which of the following is true about Porter's competitive strategies? A) Differentiation strategies address whether the market scope is broad or narrow. B) Differentiation can be broken down into low-cost or broad-scope categories.

C) An airline using the differentiation strategy likely offer refreshments to travelers at a reasonable price, rather than serve big meals. D) The statement by coffee café Starbucks' international president—"We're not in the business of filling bellies, we're in the business of filling souls"—is indicative of a differentiation strategy. - D) The statement by coffee café Starbucks' international president—"We're not in the business of filling bellies, we're in the business of filling souls"—is indicative of a differentiation strategy. Assessment of environmental uncertainty of an organization is based primarily on the analysis of which two dimensions? A) the need for information about the environment and the need for resources from the environment B) the number of sectors and the organization's niche C) the extent of turbulence and the amount of available resources D) differentiation and integration - A) the need for information about the environment and the need for resources from the environment _______ pertains to the training, promotion, safety, and growth of employees. A) Market share B) Innovation C) Productivity of the industry D) Employee development - D) Employee development Which theory argues that organizations try to minimize their reliance on other organizations for the supply of important resources and try to influence the environment to make resources available? A) interorganization theory B) environmental-resource theory C) resource-dependence theory D) economic-supply theory - C) resource-dependence theory Official goals provide ________________, while operating goals and strategies provide _________________. A) measurable objectives, legitimacy B) legitimacy, employee direction C) employee direction, decision guidelines D) decision guidelines, legitimacy - B) legitimacy, employee direction In organizations characterized by very _______ and _______ environments, almost no managers are assigned to integration roles. A) simple, stable B) simple, unstable C) complex, stable D) complex, unstable - A) simple, stable

________________ include(s) those sectors that might not directly impact the daily operations of a firm but that will indirectly influence it. A) The general environment B) The international context C) The task environment D) Buffering roles - A) The general environment The extent to which goals are obtained is a traditional definition of the degree of ________________ in the organization. A) efficiency B) scientific management C) strategy D) effectiveness - D) effectiveness Bobby Barista is a researcher in the R&D department at 3M. Part of her job is to read technical and scientific journals and to attend conferences to find out what new developments are occurring. When she is doing this part of her job she is carrying out a _______________ role. A) buffering B) boundary-spanning role C) managerial D) maintenance - B) boundary-spanning role Coercive forces result in A) efficiency. B) professionalism. C) effectiveness. D) the appearance of legitimacy. - D) the appearance of legitimacy. The top management role in organization effectiveness involves examining the external environment, which includes A) threats. B) mission. C) production technology. D) strengths. - A) threats. Organizations with a wide niche or domain—that is, those that offer a broad range of products and services or that serve a broad market—are A) specialists. B) generalists. C) niches. D) legitimate. - B) generalists. ______________ can be used to erect regulatory barriers against new competitors or to quash unfavourable legislation. A) Cooptation

B) Contracts C) Joint ventures D) Political strategy - D) Political strategy An organization's domain comprises the A) set of positions and departments within the organization. B) buildings and grounds that are owned or leased by the organization, in which inputs are transformed into outputs. C) organization's niche that has been staked out with respect to products, services, and markets served. D) technical core that is buffered by other departments so that it can operate as a closed system. - C) organization's niche that has been staked out with respect to products, services, and markets served. Models for formulating organizational strategies include A) Perrow's typology and Porter's model. B) Daft's model and Pfeiffer's typology. C) Porter's model, and Miles and Snow's typology. D) Bowerman's typology, and Miles and Snow's model. - C) Porter's model, and Miles and Snow's typology. The ______________ strategy tries to maintain a stable business while innovating on the periphery. A) reactor B) prospector C) analyzer D) defender - C) analyzer The resource-based approach emphasizes A) input into an organization. B) the output of an organization. C) achievement of profitability. D) the amount of inventory that an organization leaves idle. - A) input into an organization. A _____________ strategy can reduce rivalry with competitors and fight off the threat of substitute products because customers are loyal to the company's brand. A) low-cost leadership B) focused C) defensive D) differentiation - D) differentiation A basic assumption of the population ecology perspective is that A) management competence is the biggest factor in the survival of organizations. B) the environment determines which organizations survive or fail. C) principles of evolution do not apply to organizations because the fittest don't survive.

D) a community of organizations is a closed system. - B) the environment determines which organizations survive or fail. A departmental work process that is important to the organization but that is not directly related to its primary process is called A) secondary. B) subordinate. C) a core technology. D) a noncore technology. - D) a noncore technology. The implementation of a large number of small incremental improvements in all areas of the organization on a continuous basis refers to A) the balanced scorecard. B) kaizen. C) Six Sigma. D) ERP. - B) kaizen. Woodward's classification of technology (into three clusters of organizational technologies) was based on a scale that measured A) the number of employees in the span of control. B) the interdependence of tasks. C) the technological complexity of the organization's technical core. D) the variety and analyzability of tasks within each department. - C) the technological complexity of the organization's technical core. The use of huge databases that combine all of a company's data and allow users to access data directly, create reports, and obtain responses to what-if questions is referred to as A) data mining. B) data processing. C) transactional processing systems. D) data warehousing. - D) data warehousing. _______ data refers to any massive data set that exceeds the boundaries and conventional processing capabilities of IT. A) Big B) Meta C) Superfluous D) Outsourceable - A) Big The goal of the sociotechnical systems approach is to design the organization for A) joint optimization. B) re-engineering. C) self-regulation of advanced technology. D) strong organizational culture. - A) joint optimization.

The general pattern in technology research is that when technologies are routine, analyzable, independent, and well-defined, A) organic structures with less control, fewer procedures, decentralized decision making, and face-to-face communications should be used. B) a sociotechnical approach should be used. C) mechanistic structures with tighter control, formalized procedures, centralized decision making, and written communications are appropriate. D) coordination must be achieved through CIM. - C) mechanistic structures with tighter control, formalized procedures, centralized decision making, and written communications are appropriate. Which of the following link together manufacturing components that previously stood alone? A) continuous process systems B) flexible manufacturing systems C) advanced technological systems D) computerized process systems - B) flexible manufacturing systems The evolution of organizational applications of information technology moves from first- line to the top as follows: A) business resource, networking, transaction processing systems B) management information systems, electronic data interchange, operations C) operations, decision-making and control, strategic weapons D) work-flow redesign, transaction processing systems, decision support systems - C) operations, decision-making and control, strategic weapons The frequency of unexpected and novel events that occur in the conversion process is referred to as A) uncertainty. B) accountability. C) variety. D) analyzability. - C) variety. Which of the following is not a characteristic of service technology? A) Longer response time is acceptable. B) It is labour and knowledge intensive. C) Customer interaction is generally higher. D) Quality is perceived and difficult to measure. - A) Longer response time is acceptable. Which of the following is not a perspective of the balanced scorecard? A) financial performance B) employee performance C) customer service D) statistical reporting - D) statistical reporting

____________________ is defined as the use of rules, policies, hierarchy of authority, written documentation, standardization, and other bureaucratic mechanisms to standardize behaviour and assess performance. A) Market control B) Bureaucratic control C) Traditional control D) Clan control - B) Bureaucratic control Which of the following is not a type of authority that could explain the creation and control of a large corporation? A) charismatic B) rational-legal C) traditional D) competitive - D) competitive High formalization is most closely associated with A) organic structure. B) small size. C) large size. D) responsive style. - C) large size. What is the major goal of an organization during the entrepreneurial stage of the life cycle? A) growth B) goal setting C) survival D) complete organizational structure - C) survival Which of the following is not a dimension of bureaucracy that Weber envisioned as desirable? A) rules and procedures B) specialization and division of labour C) hierarchy of authority D) trained employees - D) trained employees All of the following are factors that cause organizational decline, except A) vulnerability. B) increased product prices. C) environmental decline or competition. D) organizational atrophy. - B) increased product prices. During the ________ stage, the organization begins to develop clear goals and direction. A) entrepreneurial B) elaboration C) formalization

D) collectivity - D) collectivity The use of _______ control requires that outputs be sufficiently explicit for a price to be assigned and that competition exists. A) bureaucratic B) clan C) traditional D) market - D) market When problems and decisions are funneled to top levels of the hierarchy for resolution, ______________ is being used. A) centralized decision authority B) functional structure C) horizontal linkage D) full-time integration - A) centralized decision authority The matrix structure is the appropriate organizational structure when three conditions are met. Which of the following is one of these conditions? A) Pressure exists to share scarce resources across product lines. B) Technical quality is not very important. C) The environmental domain of the organization is simple. D) The environmental domain of the organization is certain and stable. - A) Pressure exists to share scarce resources across product lines. Which of the following operate in truly global fashion, with the entire world as their marketplace? A) multidomestic firms B) domestic organizations C) governmental agencies D) global companies - D) global companies Potential weaknesses of the horizontal structure include A) inflexibility and a slow response to rapid changes in customer needs. B) difficulty in determining core processes around which to organize. C) a failure to promote teamwork. D) organizational goals are viewed by employees from too narrow a perspective. - B) difficulty in determining core processes around which to organize. High ________________ means that people accept inequality in power among institutions, organizations, and people. A) uncertainty avoidance B) power distance C) employee empowerment D) integration - B) power distance

With a ________________ structure, the firm subcontracts most of its major functions or processes to separate companies and coordinates their activities from a small headquarters organization. A) divisional B) multifocused C) virtual network D) functional - C) virtual network A full-time integrator A) improves vertical linkage of the organization. B) has a title such as product manager. C) reports to one of the functional departments being coordinated. D) has the responsibility of coordinating only one department. - B) has a title such as product manager. The global matrix structure A) will increase horizontal coordination but decrease vertical coordination. B) works best when there is pressure for decision making that balances the interests of both product standardization and geographical localization. C) commonly uses matrix bosses as functional and product heads. D) is usually found in firms that have reached the international stage of international evolution. - B) works best when there is pressure for decision making that balances the interests of both product standardization and geographical localization. Worldwide geographic or product structures are most likely to appear during the ____________ stage of international evolution. A) domestic B) international C) multinational D) global - C) multinational Which of the following is not a component in the definition of organization structure? A) It includes the design systems to ensure effective communication, coordination, and integration of effort across each position. B) It identifies the tasks and processes for each position within the organization. C) It identifies the grouping together of individuals into departments and of departments into the total organization. D) It designates formal reporting relationships, including the number of levels in the hierarchy and the span of control of managers and supervisors. - B) It identifies the tasks and processes for each position within the organization. _____________ is (are) a popular approach to sharing development and production costs and penetrating new markets. A) Consortia B) Licensing C) Joint ventures

D) Franchising - C) Joint ventures Which of the following is not a primary factor that motivates companies to expand internationally? A) cheaper production factors B) smaller number of distribution channels C) economies of scale D) economies of scope - B) smaller number of distribution channels Which of the following is true concerning information in an organization? A) Information should flow horizontally, but not vertically. B) Information should flow vertically, but not horizontally. C) Structure should fit the information requirements of the organization. D) It is not possible to give people too much information. - C) Structure should fit the information requirements of the organization. In the horizontal structure, it is said that A) the process owner is responsible for coordinating the core process in its entirety. B) because team members become recognized experts in a single area, cross-training that characterizes other organizational forms is limited. C) boundaries between departments are clearly defined to ensure functional expertise. D) if the organization has been rooted in a strict, vertical, hierarchical structure, it is ready for immediate and rapid implementation of the horizontal structure. - A) the process owner is responsible for coordinating the core process in its entirety. When a company such as Coca-Cola decides to use the same product design and marketing strategy throughout the world, it is following a ____________ strategy. A) multidomestic B) consortia C) focused D) globalization - D) globalization Which of the following is one of the four strategic types of innovation change highlighted in the textbook? A) changing domain B) installation of teams C) culture D) development of interorganizational relationships - C) culture Which of the following is not an essential element for successful change? A) adoption B) need C) resources D) competition - D) competition Corporate entrepreneurship

A) attempts to release the creative energy of all employees. B) usually results in fewer, though higher quality, innovations. C) will replace creative departments and new venture teams. D) results in idea champions who are the supervisors of production. - A) attempts to release the creative energy of all employees. _________________ are changes in an organization's production process that enable distinctive competence. A) Structural changes B) Technical changes C) Environmental changes D) Incremental changes - B) Technical changes The ________________ reflects the reality that some organizations must adopt frequent administrative changes and need to be structured differently from organizations that rely on frequent technical and product changes for competitive advantages. A) horizontal linkage model B) switching structure C) ambidextrous approach D) dual-core approach - D) dual-core approach The flexibility of a(n) ________ organization is attributed to people's freedom to be creative and introduce new ideas. A) mechanistic B) bureaucratic C) organic D) resource - C) organic In the horizontal coordination model, the ______________ component means that each department involved with new products is linked well to relevant sectors in the external environment. A) specialization B) boundary-spanning C) horizontal linkage D) coordination - C) horizontal linkage The ambidextrous approach refers to A) using different structures and management processes for creation and for implementation. B) introducing parts of a new procedure while maintaining parts of the old procedure. C) not letting the "left hand" (one department) know what the "right hand" (another department) is doing. D) using highly skilled employees to implement a change. - A) using different structures and management processes for creation and for implementation.

The agreement among managers about the nature of a problem or opportunity and about which goals and outcomes should be pursued is referred to as A) organizational decision making. B) problemistic search. C) organized anarchy. D) problem consensus. - D) problem consensus. Only by making mistakes can managers and organizations go through the process of ___________________ and acquire sufficient experience and knowledge to perform more effectively in the future. A) escalating commitment B) nonprogrammed decision making C) problem consensus D) decision learning - D) decision learning Bounded rationality A) should be avoided. B) involves an eight-step decision-making process, including both problem identification and problem solution. C) proves to us that even when time and resources are limited, we should quantify as much as possible, to weigh all alternatives correctly. D) describes how decisions actually have to be made under severe time and resource constraints. - D) describes how decisions actually have to be made under severe time and resource constraints. The first four steps of the rational approach to decision making are specifically designed to help a manager A) follow the scientific method. B) devise a problem solution. C) evaluate alternative solutions. D) identify the problem. - D) identify the problem. The management science model for decision making is best to use when A) problems are unanalyzable, and problem consensus is high. B) problems are analyzable and measurable, and parties involved agree on goals. C) solution knowledge is low and problem consensus is low. D) solution knowledge is low and problems can't be structured logically. - B) problems are analyzable and measurable, and parties involved agree on goals. The incremental decision process model places emphasis on A) political factors. B) social factors. C) the sequence of activities in the decision process. D) intuitive processes. - C) the sequence of activities in the decision process.

The rational approach to decision making involves all but one of the following steps. Which one? A) Define the decision problem. B) Evaluate alternatives. C) Implement an alternative to test its viability. D) Diagnose the problem. - C) Implement an alternative to test its viability. The garbage can model shows A) how poor inputs into decision making result in poor decisions. B) how decisions can be made in mechanistic organizations. C) four streams of events that influence decision making. D) decision making in a stable environment. - C) four streams of events that influence decision making. Being centrally located in the organization and having access to information and people that are critical to the company's success is referred to as A) decision locality. B) strategic contingency. C) network centrality. D) power sourcing. - C) network centrality. Vertical sources of power include all of the following, except A) control of decision premises. B) network centrality. C) formal position. D) manipulation. - D) manipulation. When goals are aligned, there is little differentiation, departments are characterized by pooled interdependence, and resources seem abundant, managers can use _________________ of organization. A) a political model B) a referent power model C) the authority structure D) a rational model - D) a rational model Strategic contingencies refer to A) events and activities that are essential for attaining organizational goals. B) environmental factors that have an indirect influence on goal attainment. C) alternative strategic plans to cope with possible environmental changes. D) competitors who may damage corporate standing. - A) events and activities that are essential for attaining organizational goals. Putting together what you know about the sources of potential conflict and interdependence, which of the following attributes will create the greatest potential for conflict? A) pooled interdependence

B) goal compatibility C) reciprocal interdependence D) routine technology - C) reciprocal interdependence Which of the following means that a department's function cannot be performed by other readily available resources?A) coping with uncertainty B) financial resources C) dependency D) nonsubstitutability - D) nonsubstitutability The greatest cause of intergroup conflict in organizations is probably A) goal incompatibility. B) differentiation. C) task interdependence. D) limited resources. - A) goal incompatibility. Legitimate power comes from A) the positions in the organizations. B) skill and knowledge. C) personal characteristics. D) resources controlled by managers. - A) the positions in the organizations. Which of the following is not a political tactic for using power? A) Expand networks. B) Schedule intergroup consultation. C) Enhance legitimacy and expertise. D) Control decision premises. - B) Schedule intergroup consultation. ___________ is a mechanism for arriving at consensus when uncertainty is high and there is disagreement over goals or problem priorities. A) Power B) Authority C) Politics D) Decision premise. - C) Politics The ____________ culture has an internal focus and is oriented toward consistency for a stable environment. A) organic B) clan C) traditional D) bureaucratic - D) bureaucratic _______________ are principles that guide the decisions and behaviours of managers with regard to whether they are right or wrong in a moral sense. A) Managerial ethics B) Social responsibilities

C) Codes of ethics D) Organization cultures - A) Managerial ethics A relationship between a leader and followers that is based on shared, strongly internalized values that the leader advocates and acts upon is referred to as A) a mission culture. B) values-based leadership. C) a clan culture. D) servant leadership. - B) values-based leadership. A corporate code of ethics A) is a formal statement of the company's values concerning ethics and social responsibility. B) is rare, but about 10 percent of Fortune 500 companies are beginning to develop such a code. C) addresses ethical values rather than specific behaviours. D) guarantees that ethical behaviour will take place in an organization. - A) is a formal statement of the company's values concerning ethics and social responsibility. The _____________ culture is characterized by a strategic focus on the external environment through flexibility and change to meet customer needs. A) adaptability B) mission C) clan D) bureaucratic - A) adaptability Organizational culture A) is usually written. B) provides members with a sense of identity. C) generates commitment to improving market share. D) is/does all of the above. - B) provides members with a sense of identity. Your textbook plots the relationship of environment and strategy to corporate culture on a matrix that has the following two dimensions: A) (1) strategic focus: internal vs. external; (2) environment: flexible vs. stable B) (1) strategic focus: prospector vs. defender; (2) environment: simple vs. complex C) (1) human focus: flexible vs. stable; (2) task focus: internal vs. environmental D) (1) human focus: open vs. closed; (2) task focus: strategic vs. operative - A) (1) strategic focus: internal vs. external; (2) environment: flexible vs. stable Which of the following is an example of the rite of integration in corporate culture? A) awards given to employee-of-the-month B) unpaid three-week orientation and training for prospective (new) employees C) office Valentine's Day party D) organization development activities - C) office Valentine's Day party

Which of the following influences personal ethics? A) individual beliefs and values B) a person's ethical decision framework C) moral development D) all of the above - D) all of the above A learning organization has a strong organizational culture characterized by the following value(s): A) the whole is more important than the part; there are minimal boundaries between parts B) external strategic focus with continual thought of what others are doing that is right C) lifetime employment for workers at every level (unless a work rule is violated) D) all of the above - A) the whole is more important than the part; there are minimal boundaries between parts