Course Introduction
Management Theory
Study Guide Questions
Management Theory explores the foundational concepts, principles, and models that have shaped the discipline of management over time. This course examines classical, behavioral, and contemporary management theories, offering insights into how effective organizations are designed and led. Students will analyze the evolution of management thought, including scientific management, human relations, systems theory, and contingency approaches. The course emphasizes the practical application of management theories in todays complex and dynamic business environment, fostering critical thinking and decision-making skills essential for future managers and leaders.
Recommended Textbook
Organization Theory and Design 2nd canadian Edition by Richard L. Daft
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Page 2
Chapter 1: Organizations and Organizational Theory
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Sample Questions
Q1) Contingency means that one thing depends on other things, and for organizations to be effective, there must be a "goodness of fit" between their structure and the conditions of their external environment.
A)True
B)False
Answer: True
Q2) List the seven reasons organizations exist.
Answer: Organizations exist to do the following: (1) bring together resources to achieve goals, (2) create products/services efficiently, (3) encourage innovation, (4) use modern technologies, (5) adapt to and influence their environments, (6) create value for stakeholders, and (7) accommodate ongoing challenges of diversity, ethics, and the motivations and coordination of employees.
Q3) Which subsystem would the surgery department in a hospital belong to?
A) production
B) boundary spanning
C) maintenance
D) management
Answer: A
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3
Chapter 2: Strategy, Organizational Design, and Effectiveness
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Sample Questions
Q1) Which of the following are models for formulating organizational strategies?
A) Perrow's typology and Porter's model
B) Perrow's typology and Pfeiffer's typology
C) Porter's model and Miles and Snow's typology
D) Pfeiffer's typology and Miles and Snow's model
Answer: C
Q2) Organizations using the differentiation strategy try to distinguish their products or services from others in the industry.
A)True
B)False
Answer: True
Q3) Operative goals refer to the formally stated definition of business scope and outcomes the organization is trying to achieve.
A)True
B)False
Answer: False
Q4) Describe the internal-process effectiveness measure of economic efficiency.
Answer: The measure looks at the extent to which an organization's internal processes run well, particularly employee-oriented processes.
Page 4
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Chapter 3: Fundamentals of Organizational Structure
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Sample Questions
Q1) Assume that you are being interviewed for the position of project manager by a corporate recruiter. The recruiter says, "We've been having some problems with product communication and so have just created new project manager positions. I see on your transcript that you took a course in organizational theory. Tell me what you learned about project managers, and why you feel that this would be a good position for your career in management."
Answer: As you have good interpersonal and negotiation skills, you have the necessary skills to succeed in the role. As a project manager, you will have lots of responsibility without much authority so if you can succeed in the role, you should be able to manage in many different situations.
Q2) Extreme outsourcing is also known as a modular structure.
A)True
B)False
Answer: True
Q3) Rules and plans are lower on the ladder of mechanisms for vertical linkage than is adding positions to the hierarchy.
A)True
B)False
Answer: True
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Page 5
Chapter 4: The External Environment
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Sample Questions
Q1) In rapidly changing environments, an organic structure is usually better.
A)True
B)False
Q2) What term is used to refer to high quality collaboration between departments?
A) differentiation
B) integration
C) uncertainty
D) cooptation
Q3) Refer to Case 4.0. Would you recommend that AligatorAde switch from its current strategy to a differentiation strategy that it markets to the public in general? Why or why not?
Q4) Which of the following is likely in organizations characterized by very simple and stable environments?
A) almost no managers are assigned to integration roles
B) many departments are added
C) there is formal, centralized authority
D) there is extensive planning, forecasting and high-speed responses
Q5) How might an economic recession affect the design of organizations?
Q6) Distinguish between complexity and instability in an organization's environment.
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Q7) List and describe three organizational adaptations to environmental uncertainty.
Chapter 5: Interorganizational Relationships
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Sample Questions
Q1) Which of the following best defines resource dependence theory?
A) A small supplier should count on price competition for locking in accounts.
B) A small supplier should lock in a single large company for the bulk of its sales.
C) Organizations will do whatever is needed to avoid dependence on the environment and increase their autonomy.
D) Organizations will set up dependencies when they become more self-reliant.
Q2) Universities, consulting firms, and professional training institutions develop norms among professional managers.
A)True
B)False
Q3) The major reasons for collaboration between organizations are sharing risks when entering new markets, mounting expensive new programs, reducing costs, and enhancing organizational profile in selected industries or technologies.
A)True
B)False
Q4) Is the use of management fads any different, in your opinion, from the pursuit of legitimacy through mimetic processes?
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Chapter 6: Designing Organizations for the International Environment
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Sample Questions
Q1) Discuss each of the motivations for global expansion.
Q2) Discuss the three primary approaches to coordination and control as represented by Japanese, North American, and European companies.
Q3) Why are global companies sometimes described as stateless corporations?
Q4) Describe the stages of international evolution in terms of their strategic orientation.
Q5) Compare and contrast the global product division structure and global matrix structure.
Q6) In what stage does a specific division replace the export department, requiring the need to hire specialists to handle sales, service, and warehousing abroad?
A) domestic
B) international
C) global
D) multinational
Q7) The international stage of international development means that exporting is taken seriously and that the company deals with the competitive issues of each country separately.
A)True
B)False
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Chapter 7: Manufacturing and Service Technologies
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Q1) Routine technologies are characterized by little task variety and the use of objective, computational procedures, whereas engineering technologies tend to be complex because there is substantial variety in the tasks performed.
A)True
B)False
Q2) Which of the following has resulted from the impact of technology on job design?
A) job simplification
B) greater division of labour
C) jobs requiring higher-level skills
D) lower compensation because of the financial emphasis on equipment
Q3) What is the goal of the sociotechnical systems approach?
A) to design the organization for joint optimization
B) to design the organization for re-engineering
C) to design the organization for self-regulation of advanced technology
D) to design the organization for strong organization culture
Q4) Discuss the impact technology has on job design.
Q5) If interdependence is now pooled, should efforts be made to force the entities into greater interrelationship? Defend your position.
Q6) How is organization structure related to technology? Explain.
Page 9
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Chapter 8: Information Technology and Control
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Q1) EIS collects data from transactions such as sales, purchases, and inventory changes, and stores them in a database.
A)True
B)False
Q2) Managers use quality control systems to train employees in quality control methods, set targets for employee participation, establish benchmarking guidelines, and assign and measure Six Sigma goals.
A)True
B)False
Q3) Information reporting systems are designed for non-managerial and nonsupervisory personnel to have access to basic information on the status of product orders.
A)True
B)False
Q4) What happens to most activities in a modular structure?
A) They are outsourced.
B) They are eliminated.
C) They are performed by in-house professionals.
D) They are simplified.
Q5) Compare executive information systems and decision support systems.
Page 10
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Chapter 9: Organization Size, Life Cycle, and Decline
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Q1) Which term is defined as the use of rules, policies, hierarchy of authority, written documentation, standardization, and other mechanisms to standardize behaviour and assess performance?
A) market control
B) bureaucratic control
C) traditional control
D) clan control
Q2) Explain the relationship between organization size and at least three specific structural characteristics.
Q3) The general finding concerning incident commanders is that branches have substantial autonomy and decentralized authority to make necessary decisions.
A)True
B)False
Q4) In the collectivity stage, departments are established along with a hierarchy of authority, job assignments, and a beginning division of labour.
A)True
B)False
Q5) Why would a large organization tend to be more formalized?
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Chapter 10: Organizational Culture and Ethical Values
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Q1) Which of the following is an example of formal structure and formal systems that can be used to shape ethical values?
A) patterning from senior management
B) repetition of words such as those ending Wal-Mart's cheer: "Who's No. 1? The Customer!"
C) a whistle-blowing disclosure mechanism
D) values-based leadership
Q2) Which two dimensions are represented on the matrix that plots the relationship of environment and strategy to corporate culture?
A) (1) internal vs. external; (2) flexible vs. stable
B) (1) prospector vs. defender; (2) simple vs. complex
C) (1) flexible vs. stable; (2) internal vs. environmental
D) (1) open vs. closed; (2) strategic vs. operative
Q3) Give an example of an ethical dilemma that would perplex you as a manager if it were to occur in an organization where you work. What makes the situation you describe meet the definition of "ethical dilemma"?
Q4) What is Bakan's main argument about corporations? What is your view and why?
Q5) List and describe the three values incorporated into a strong adaptive culture.
Q6) What are the important functions of organizational culture in an organization?
Page 12
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Chapter 11: Innovation and Change
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Sample Questions
Q1) In the dual-core approach, change is facilitated in the administrative core by a mechanistic structure and in the technical core by an organic structure.
A)True
B)False
Q2) Which type of change is strategic?
A) changing domain
B) installation of teams
C) culture
D) development of interorganizational relationships
Q3) Which of the following occurs mainly through the established structure and management processes of an organization?
A) evolution of the organizational culture
B) incremental change
C) technology improvements
D) radical change
Q4) Give an example of an administrative change, and explain how it should be implemented using principles of organizational theory.
Q5) What are the barriers to change?
Q6) What is a venture team?
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Chapter 12: Decision-Making Processes
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Q1) Which of the following is part of the garbage can model of decision making?
A) Solutions may be proposed even when problems do not exist.
B) Choices are not made unless problems are solved.
C) Many problems are solved.
D) No problem is allowed to persist without being solved.
Q2) Management science, although cumbersome, cannot produce failures in decision making.
A)True
B)False
Q3) What term is used for the agreement among managers about the nature of a problem or opportunity and about which goals and outcomes to pursue?
A) organizational decision making
B) problemistic search
C) contingency decision making
D) problem consensus
Q4) Which of the following are characteristics of organized anarchies?
A) rapid change, unclear technology, and nonbureaucratic environment
B) unclear technology, turnover, and problematic preferences
C) problematic preferences, nonbureaucratic environment, and turnover
D) rapid change, turnover, and unclear technology
Page 14
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Chapter 13: Conflict, Power, and Politics
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Sample Questions
Q1) Contrast three tactics for enhancing collaboration with three tactics for increasing power.
Q2) The following statement is a correct usage of the terms power and authority. "Some secretaries are likely to have a great deal of power in the organization even though they have little authority."
A)True
B)False
Q3) Which of the following denotes the ability of one person/department to influence other persons/departments to carry out orders or do something they would not otherwise have done?
A) cooperation
B) authority
C) power
D) personal position
Q4) Put labour-management teams on a continuum ranging from cooperative to competitive; defend your position. Then put labour-management teams on a continuum ranging from win-win strategy to win-lose strategy; defend your position.
Q5) Why is it that some employees may obtain power disproportionate to the level of their formal position?
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