ORG 581/ ORG 581 Final Exam (New)

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





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?


Specialist 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





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?


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


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.'s addition of CD's and gifts represents


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.





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.


Global 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


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





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


Internal system

Transaction cost

26. ________ is the technology that involves groups of skilled workers who interact closely to produce custom-designed products.

Mass production


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




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


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    Attached: ORG 581 Final Exam (Latest).docx


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