Organizational Theory
Chapter Exam Questions
Course Introduction
Organizational Theory explores the fundamental principles, models, and frameworks used to understand how organizations function, evolve, and interact with their environments. The course examines classical, neoclassical, and contemporary perspectives on organizational structure, behavior, culture, and change. Students will analyze how factors such as technology, strategy, power, and environment influence organizational design and effectiveness. Through case studies and theoretical applications, this course equips students with the analytical tools needed to critically assess organizational issues and contribute to the development and transformation of modern organizations.
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Understanding Management 11th Edition by Richard
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Page 2
L. Daft
Chapter 1: The World of Innovative Management
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Q1) For a widget manufacturing company, measuring the numbers of hours worked by employees to produce enough widgets to meet their first quarter goals is a measure of organizational _____.
A)effectiveness
B)performance
C)efficiency
D)structure
E)assets
Answer: C
Q2) An organization must be managed as a coordinated whole, and to see the entire picture, a manager must recognize the concept of _______,which says that the whole is greater than the sum of its parts.
Answer: synergy
Q3) __________ refers to the field of management that specializes in the physical production of goods or services.
Answer: Operations management
Q4) The process whereby companies find out how others do something better than they do and then try to imitate or improve it is known as __________.
Answer: benchmarking
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Chapter 2: The Environment and Corporate Culture
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Q1) An object, act, or event that conveys meaning to others is known as a __________.
Answer: symbol
Q2) In the current external business environment, which of the following is true?
A)Corporate culture defines success.
B)The business environment is static.
C)Companies are more adversarial than ever before.
D)Mergers are declining.
E)Joint ventures are on the rise.
Answer: E
Q3) The task environment includes factors that ________ affect an organization's operations and performance.
A)indirectly
B)might
C)occasionally
D)directly
E)almost never
Answer: D
Q4) Steve Jobs exemplified the __________ figure in corporate culture.
Answer: hero
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Chapter 3: Managing in a Global Environment
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Q1) Austria's cultural preference is for achievement, heroism, assertiveness, work centrality, and material success.This would be considered ______.
A)power distance
B)individualism
C)masculinity
D)ethnocentrism
E)collectivism
Answer: C
Q2) Describe the joint venture announced by Tony the Tiger.
Answer: Tony the Tiger announced a joint venture between U.S.-based Kellogg Company and Singapore-based Wilmar International Limited for the manufacture, sale, and distribution of breakfast cereals and snacks in China.
Q3) A multinational corporation typically receives at least __________ percent of its total sales revenues from outside the parent's home country.
Answer: 25
Q4) __________ under U.S.$1,500 a year signifies membership in the "bottom of the pyramid."
Answer: Per capita income
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Chapter 4: Managing Ethics and Social Responsibility
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Q1) Principle-based statements are designed to affect_____ as policy-based statements are procedures to be used in _____.
A)corporate culture; specific ethical situations
B)marketing practices; conflicts of interest
C)observance of laws; proprietary information
D)specific situations; corporate culture
E)political gifts; equal opportunities
Q2) Define the justice approach to moral reasoning.
Q3) Disk Replacement Services has just completed a procedure manual on how to handle employee grievances.One of the main directives is to make it clear to employees that rules will be administered fairly and consistently.This directive illustrates use of the ______ approach.
A)procedural justice
B)utilitarian
C)individualism
D)defensive
E)free-choice
Q4) A general statement of principle is often called a __________.
Q5) Define compensatory justice.
Q6) List the four types of ethical managerial behavior discussed in your text.
Page 6
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Chapter 5: Planning and Goal Setting
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Q1) Reasonable yet highly ambitious and compelling goals that energize people and inspire excellence are called ______ goals.
A)aspirational
B)acceptable
C)visionary
D)stretch
E)motivational
Q2) United Products Group holds a diverse portfolio of business interests including several question marks.What does having question marks mean for United's strategies?
A)United should monitor the question marks and divest itself of those that do not perform well.
B)United is likely to experience cash shortfalls in the near future.
C)United needs to divest itself of all of the question marks and sell off their assets.
D)United can afford to invest in riskier businesses.
E)United is likely to grow rapidly as markets expand, regardless of the question marks' performance.
Q3) List the three steps of the crisis preparation stage of crisis planning.
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Chapter 6: Managerial Decision Making
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Q1) Why is the classical model of decision making categorized as normative?
Q2) Briefly describe the assumptions underlying the classical model of decision making.
Q3) In the __________, managers invest time in reviewing the results of decisions and learn from them.
Q4) What are the six steps in the managerial decision-making process?
Q5) Which error occurs when managers allow initial impressions, statistics, or estimates to control or excessively influence subsequent thoughts and decisions?
A)Confirmation bias
B)Fundamental attribution error
C)Anchoring bias
D)Self-serving bias
E)Sunk cost effect
Q6) Satisficing means that decision makers choose the first solution alternative that satisfies minimal decision criteria regardless of whether better solutions are expected to exist.
A)True
B)False
Q7) Why do effective managers often use multiple styles of decision making?
Page 8
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Chapter 7: Designing Organization Structure
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Q1) List the three basic types of production technology.
Q2) List three advantages of the functional structure.
Q3) In small-batch technology, _____ communication is high; in mass production technologies, _____ communication is high; in continuous process technologies, _____ communication is high.
A)verbal; verbal; verbal
B)verbal; written; verbal
C)written; verbal; verbal
D)written; written; verbal
E)verbal; written; written
Q4) The functional structure is appropriate when the primary goal is innovation and flexibility.
A)True
B)False
Q5) __________ is characterized by intangible outputs.
A)Service technology
B)Mass production
C)Large-batch production
D)Small-batch production
E)Continuous process production
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Chapter 8: Managing Change and Innovation
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Q1) Organizational change refers to the adoption of a new idea or behavior by an organization.
A)True
B)False
Q2) Some companies use __________ innovation by creating innovative, low-cost products for emerging markets and then quickly and inexpensively repackaging them for sale in developed countries.
Q3) The unfreezing stage makes people throughout the organization aware of problems and the need for change.
A)True
B)False
Q4) Creative organizations _______.
A)have an unusually high number of routine jobs
B)are loosely structured
C)have little ambiguity
D)have too many layers of management
E)use a centralized decision-making approach
Q5) What is an idea incubator?
Q6) Explain the horizontal linkage model.
Q7) Describe the tactics for overcoming resistance to change.
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Chapter 9: Managing Human Talent and Diversity
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Q1) __________ pay systems encourage people to develop their skills and competencies, thus making them more valuable to the organization, as well as more employable if they leave their current jobs.
Q2) Recruiting activities can be divided into internal recruiting including "promote-from-within" policies and external recruiting including the use of headhunters.
A)True
B)False
Q3) The systematic process of gathering and interpreting information about essential duties, tasks, and responsibilities of a job refers to __________.
Q4) Solicitation of sexual activities with the promise of reward is the most serious level of sexual harassment.
A)True
B)False
Q5) What was the employer expected to provide under the old social contract? What is the employer expected to provide under the new social contract?
Q6) Explain the appraisal process known as 360-degree feedback.
Q7) What is the matching model?
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Chapter 10: Understanding Individual Behavior
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Q1) In the step-by-step guide for managing time described in the text, the three options for getting things done are doing it, delegating it, or deferring it.
A)True
B)False
Q2) List at least three innovative individual approaches to managing stress.
Q3) Define organizational commitment and describe how it is seen in the workplace.
Q4) Which of the following describes the last step in the perception process?
A)Observing information
B)Screening the information
C)Selecting what to process
D)Organizing the selected data into patterns
E)Transmitting the observed information
Q5) The process people use to make sense of the environment by selecting, organizing, and interpreting information from the environment is referred to as ___________.
Q6) ___________ is the degree to which a person is able to get along with others by being good-natured, likable, cooperative, forgiving, understanding, and trusting.
Q7) List and briefly describe the four components of emotional intelligence.
Q8) ___________ are stressors associated with relationships in the organization.
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Chapter 11: Leadership
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Q1) Research indicates that people rate leaders as having greater power and influence when the leaders consistently use a single influence tactic.
A)True
B)False
Q2) A __________ leader is distinguished by a special ability to bring about innovation and change.
Q3) The ability to influence people toward the attainment of goals is known as __________.
Q4) A model of leadership that describes the relationship between leadership styles and specific organizational situations is called a __________ approach.
Q5) List and discuss the three types of hard position power.
Q6) When Lonnie shouts at Kerry in public for not finishing her work and suspends her for two days, he is using his coercive power.
A)True
B)False
Q7) The __________ has the ability to inspire and motivate people to do more than they would normally do, despite obstacles and personal sacrifice.
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Chapter 12: Motivating Employees
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Q1) Which of the following is NOT a need proposed by Maslow in his hierarchy of needs theory?
A)Safety
B)Compensation
C)Physiological
D)Esteem
E)Self-actualization
Q2) Extrinsic reward refers to the satisfaction a person receives in the process of performing a particular action.
A)True
B)False
Q3) __________ is defined as the altering of jobs to increase both the quality of employees' work experience and their productivity.
Q4) The observation that positively reinforced behavior tends to be repeated is the basis for the __________.
Q5) Factors that involve the presence or absence of job dissatisfiers, such as working conditions or pay, are known as __________.
Q6) List and briefly discuss the key components of goal-setting theory.
Q7) List the three categories of needs proposed by Clayton Alderfer.
Page 14
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Chapter 13: Managing Communication
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Q1) Most executives now believe that important information flows from the _____.
A)top down
B)bottom up
C)diagonal level
D)horizontal level to the diagonal level
E)internal to the external
Q2) List at least five keys to effective listening.
Q3) List the three formal communication channels found in organizations.
Q4) Research suggests that 9 percent of employees feel like they know what is going on at their companies most of the time.
A)True
B)False
Q5) The term __________ covers a broad range of applications, including wikis, blogs, content communities, and virtual social worlds.
Q6) What is downward communication, and what are five topics generally associated with downward communication?
Q7) __________ refers to the messages and information sent from top management down to subordinates.
Q8) List at least three tips for improving your writing skills.
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Chapter 14: Leading Teams
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Q1) List three factors that can lead to conflict.
Q2) During the __________ stage of team development, the major emphasis is on problem solving and accomplishing the assigned task.
Q3) __________ negotiation is a competitive and adversarial negotiation approach in which each party strives to get as much as it can, usually at the expense of the other party.
Q4) Research shows that the personalities of the individual members play the most critical role in determining how well a team functions.
A)True
B)False
Q5) What is a functional team?
Q6) The avoiding style of conflict resolution is based on a __________ degree of assertiveness and a __________ degree of cooperativeness.
A)high; high
B)high; low
C)low; high
D)low; low
E)low; medium
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Chapter 15: Managing Quality and Performance
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Q1) Which of the following is characteristic of a decentralized control system?
A)Decentralized control system emphasizes extrinsic rewards.
B)In a decentralized control system, employees follow instructions, and do exactly as they are told.
C)Decentralized control system has a rigid organizational culture.
D)Decentralized control system relies on task-related job descriptions.
E)Decentralized control system is based on the belief that people work best when they are committed to their organization.
Q2) __________ focuses on whether performance meets established standards.
Q3) Identify and describe three approaches to budgeting.
Q4) What is a capital budget and why is it important?
Q5) The systematic process of regulating organizational activities to make them consistent with the expectations established in plans, targets, and standards of performance refers to organizational control.
A)True
B)False
Q6) __________ control uses cultural values, traditions, shared beliefs, and trust to foster generate compliance with organizational goals.
Q7) Define organizational control.
Page 17
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