Course Introduction
Organizational Theory Exam Review
Organizational Theory explores the structures, processes, and dynamics that shape organizations and their behavior. This course examines the historical evolution of organizational thought, foundational theories such as bureaucracy, scientific management, and institutionalism, as well as contemporary perspectives on culture, power, and change. Students analyze how organizations adapt to their environments, manage resources, and interact with stakeholders. Through case studies and theoretical frameworks, the course provides tools for understanding organizational effectiveness, innovation, and the ethical challenges organizations face in a globalized world.
Recommended Textbook
Modern Management Concepts and Skills 14th Edition by Samuel C. Certo
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21 Chapters
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Page 2
Chapter 1: Principles of Modern Management: Concepts and Skills
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Sample Questions
Q1) Roland, a firm believer in management policies, always manages his team by the book. His team members agree that he is more of a manager than a leader. This indicates that Roland should work on ________ his team.
A) organizing
B) influencing
C) controlling
D) monitoring
E) planning
Answer: B
Q2) George is identifying what tasks need to be completed and how many tasks each employee can effectively complete each day. George's activities are a part of the ________ function.
A) planning B) organizing C) influencing D) evaluating E) controlling
Answer: B
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Chapter 2: Managers, Society, and Sustainability
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Sample Questions
Q1) ________ is the degree to which a person or an entity can meet its present needs without compromising the ability of other people or entities to meet their needs in the future.
A) Accountability
B) Reliability
C) Sustainability
D) Maintainability
E) Scalability
Answer: C
Q2) The greater the degree of effectiveness and efficiency, the more socially responsive the organization is said to be.
A)True
B)False Answer: True
Q3) Empirical studies, conducted by various corporations in the United States, have demonstrated a definitive relationship between social responsibility and profitability. A)True
B)False
Answer: False
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Page 4
Chapter 3: Management and Diversity
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Sample Questions
Q1) The assimilation approach to promoting cultural diversity ________.
A) relies on the maxim "Do unto others as you would have them do unto you"
B) addresses past injustices experienced by a particular group
C) pressurizes employees who do not belong to the dominant culture to conform
D) teaches employees the norms and practices of another culture
E) advocates incorporating changes into organization culture based on the cultures of employees
Answer: C
Q2) Treating an issue, person, or behavior unjustly or inequitably on the basis of stereotypes and prejudices is known as ________.
A) tokenism
B) discrimination
C) ethnocentrism
D) bicultural conflict
E) xenocentrism
Answer: B
Q3) "Token" employees are always given very high visibility in an organization.
A)True
B)False
Answer: False
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Chapter 4: Managing in the Global Arena
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Q1) Which of the following would not typically be included in training designed to prepare expatriates for their international assignments?
A) Culture profiles
B) Cultural adaptation
C) Logistical information
D) Application of their new job
E) Performance appraisals of employees in their current jobs
Q2) Countries that highly promote ________ have citizenry that tends to emphasize, expect, and accept more autocratic than democratic leadership.
A) short-term orientation
B) individualism
C) power distance
D) masculinity
E) collectivism
Q3) Host-country nationals do not need to be relocated or undergo training in the culture, language, or tax laws of the country where the organization is doing business.
A)True
B)False
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6
Chapter 5: Plans and Planning Tools
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Sample Questions
Q1) ________ are techniques managers can use to help develop plans.
A) Departmental planners
B) Organizational planners
C) Sales forecasts
D) Planning tools
E) Product stages
Q2) Planning is the process of determining how the organization can get where it wants to go and what it will do to accomplish its objectives.
A)True
B)False
Q3) Marjorie is confused with the differences between policies and procedures. How would you explain these terms and their use in the planning process to Marjorie?
Q4) In order to increase the quality of their objectives, managers should ________.
A) set employees' goals as high as possible
B) ensure that they set objectives entirely by themselves
C) establish goals that are within easy reach
D) let the people responsible for attaining the objectives have a voice in setting them
E) avoid relating objectives to specific actions
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Chapter 6: Making Decisions
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Q1) Which of the following is an advantage of group decision making?
A) Groups take less time than individuals to arrive at a decision because of the collective and diverse mentality of groups.
B) Group decisions do not cost the organization as much as individual decisions do.
C) Group decisions are of a higher quality than individual decisions because of the friendly relationships that exist within the group.
D) Group decisions can be effectively controlled and influenced by the dominant members of the group.
E) Members of the group tend to support the implementation of the decision more fervently than they would if the decision had been made by an individual.
Q2) The first step in the Delphi technique is ________.
A) asking group members to offer solutions
B) identifying a problem
C) allowing group members to meet face to face
D) preparing a questionnaire on the problem at hand
E) identifying experts on the matter being discussed
Q3) What are the orientations of weak decision makers?
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Page 8
Chapter 7: Strategic Planning: Strategies, Tactics, and Competitive Dynamics
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Q1) In general, the strategic management process is thought to consist of sequential and continuing steps.
A)True
B)False
Q2) Which of the following is true about a star SBU?
A) Star SBUs may barely support themselves; in some cases, they actually drain off cash resources generated by other SBUs.
B) Star SBUs provide the organization with large amounts of cash because their market is not growing significantly.
C) An SBU that is a star has a small share of a high-growth market.
D) An SBU that is a star has a high share of a high-growth market and typically needs large amounts of cash to support rapid and significant growth.
E) Because the market of star SBUs is not growing significantly, the cash is generally used to meet the financial demands of the organization in other areas.
Q3) What is a SWOT analysis and what benefit does conducting this analysis offer to managers?
Q4) Briefly differentiate Michael Porter's three generic strategies.
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Chapter 8: Fundamentals of Organizing
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Sample Questions
Q1) The more experienced the employees and manager are, the ________ the manager's span of management can be.
A) wider
B) narrower
C) briefer
D) flatter
E) taller
Q2) What role does division of labor play in the organizing function of management?
Q3) According to the contingency viewpoint to designing span of management, the appropriate span of management narrows when ________.
A) the activities performed by supervised individuals are similar
B) subordinates are carrying out simple functions
C) the manager spends little time on planning activities
D) subordinates' activities need to be synchronized carefully
E) subordinates are physically located close to one another
Q4) Discuss the connection between the planning and organizing functions of management.
Q5) Describe what is meant by the term "division of labor." Also explain the advantages and disadvantages associated with division of labor.
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Chapter 9: Responsibility, Authority, and Delegation
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Sample Questions
Q1) ABC Insurance Company hired a manager for their operations team. The manager divided the job activities among his team members by examining the management system objectives, designating appropriate activities that must be performed to reach those objectives, designing specific jobs by grouping similar activities, and making specific individuals responsible for performing those jobs. Which of the following methods is the manager using to divide job activities?
A) functional similarity
B) overlapping responsibility chart
C) process control
D) centralization
E) cash flow forecasting
Q2) Authority is the right to perform or command.
A)True
B)False
Q3) List guidelines managers should follow when working to make delegation effective in their organization.
Q4) Describe the functional similarity method of dividing job activities.
Q5) List and briefly describe the four key dimensions of responsible management behavior.
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Chapter 10: Human Resource Management
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Sample Questions
Q1) Private employment agencies collect a fee from either the person hired or the organization doing the hiring, once the hire has been finalized.
A)True
B)False
Q2) Which of the following best identifies the continuing activity that focuses on how organization members can become more productive and useful to an organization and its quest for quality?
A) recruitment
B) selection
C) performance appraisal
D) compensation and benefits
E) workplace safety
Q3) ________ are training vehicles for assigning a particular task to an individual to furnish him or her with experience in a designated area.
A) Virtual teams
B) Cross-functional teams
C) Special project committees
D) Geographically dispersed teams
E) New product committees
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Page 12
Chapter 11: Organizational Change: Stress, Conflict and Virtuality
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Sample Questions
Q1) Alterx Technologies International Inc., a technology solutions company, provides managed technology solutions to small and medium sized businesses. The company is planning to bring about substantial changes in its operations. However, the company understands some degree of stability is also a prerequisite for long-term organizational success. Which of the following will provide Alterx the highest probability of growth and survival?
A) high acceptability and accountability
B) high stability and adaptability
C) high credibility and capability
D) high mobility and plausibility
E) high visibility and profitability
Q2) ________ is a training process that goes beyond the boundaries and structure of traditional training.
A) Virtual training
B) Virtual teams
C) Virtuality
D) Virtual corporation
E) Virtual organization
Q3) Discuss factors managers need to consider when determining what should be changed.
Page 13
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Chapter 12: Influencing and Communication
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Sample Questions
Q1) Which of the following is one of the primary managing activities?
A) building corporate culture
B) reducing conflicts
C) eliminating workplace stress
D) creating norms
E) maintaining work-life balance
Q2) When executives were asked to rank essential skills employees need in their jobs
________ skills ranked as number one.
A) interpersonal
B) motivational
C) oral and written communication
D) collaboration
E) planning
Q3) Which of the following should the source do to gather nonverbal feedback?
A) Observe the destination's gestures and facial expressions.
B) Ask the destination questions about the message.
C) Repeat the message and ask for specific feedback.
D) Ask the destination about how the message was perceived.
E) Use tests and procedures that suit the situation.
Q4) What is emotional intelligence? Why is it important in organizations?
Page 14
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Chapter 13: Leadership
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Q1) According to the Michigan studies, behavior that focuses primarily on the work a subordinate is doing is known as ________.
A) employee-centered behavior
B) job-centered behavior
C) consideration behavior
D) structure behavior
E) subordinate-centered behavior
Q2) Which of the following types of leadership involves leaders changing organizations through both their goals and having an impact on their followers' values?
A) transitional
B) charismatic
C) authoritarian
D) transformational
E) democratic
Q3) The trait approach to leadership proposes that leaders are made, not born.
A)True
B)False
Q4) Explain how leaders behave and make decisions using the 7 concepts of Tannenbaum and Schmidt Leadership Continuum.
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Chapter 14: Motivation
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Sample Questions
Q1) Rolfo Company offers its employees the opportunity to buy shares of the company stock as a way to motivate them to boost production. This kind of a program is called
A) job enrichment
B) self-actualization
C) employee stock ownership plans (ESOP)
D) an individual retirement account (IRA)
E) a non-monetary incentive
Q2) ________ is the inner state that causes an individual to behave in a way that ensures the accomplishment of some goal.
A) Cognitive dissonance
B) Motivation
C) Socialization
D) Achievement
E) Emotion
Q3) Define motivation and the two basic types of motivation theories.
Q4) Briefly explain Likert's management systems.
Q5) What role does reinforcement play in behavior modification as a strategy for motivating employees?
Page 16
Q6) What is flextime? What are the advantages and disadvantages of using flextime?
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Chapter 15: Groups and Teams
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Q1) Linda, a project manager at a cosmetic company, is handling an assignment to rejuvenate the company's supply chain management. Linda is working with a new team of experts who have never worked with each other before. In a recent meeting, her team members expressed radically different opinions on what should be done to update the company's supply chain. Linda had to intervene a couple of times during the meeting to bring the discussion back on track. Linda's team is in the ________ stage of team development.
A) storming
B) learning
C) adjourning
D) performing
E) norming
Q2) List the stages of formal group development.
Q3) The ________ stage of groupthink occurs when a group does not collect the needed information to make an effective decision.
A) decision-making defects
B) antecedents
C) poor decision outcomes
D) symptoms of groupthink
E) concurrence seeking
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Chapter 16: Managing Organization Culture
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Sample Questions
Q1) ________ is an organization culture that reflects values that emphasize stability and control along with an external focus.
A) Adhocracy culture
B) Clan culture
C) Market culture
D) Hierarchy culture
E) Bureaucracy culture
Q2) When Joe tells his new employees stories about the company's beginnings, he is illustrating the firm's culture through the sharing of ________.
A) organizational symbols
B) organizational language
C) organizational sagas
D) organizational ceremonies
E) organizational myths
Q3) How does building a hierarchy of objectives help build a high-performance organization culture?
Q4) Give a brief description of the organizational socialization process for new employees.
Q5) Briefly explain the concept of organizational commitment.
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Chapter 17: Controlling, Information, and Technology
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Q1) ________ sets the goals for the firm, while ________ monitors progress towards the accomplishment of the goals.
A) Controlling; planning
B) Planning; leading
C) Planning; controlling
D) Influencing; controlling
E) Planning; influencing
Q2) ________ is managerial activity aimed at bringing organizational performance up to the level of performance standards.
A) Laddering
B) Corrective action
C) Reprogramming
D) Market correction
E) Contrarian investing
Q3) How does user satisfaction with an IS determine the effectiveness of the IS? How can companies effectively manage user satisfaction?
Q4) Outline the steps involved in the controlling process.
Q5) Describe the six steps necessary to effectively operate an IS.
Q6) What are the challenges faced by executives in managing the IS workforce?
Page 19
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Chapter 18: Production and Control
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Q1) Pure-breakdown policy involves regular activities such as machine adjustments, lubrication, cleaning, parts replacement, and painting.
A)True
B)False
Q2) ________ is an operations control activity that determines the flow of materials from vendors through an operations system to customers.
A) Just-in-time philosophy
B) Zero-based control
C) Work scheduling
D) Production planning
E) Materials control
Q3) Organizations commonly employ more than one type of manufacturing process at the same time and in the same facility.
A)True
B)False
Q4) Briefly describe JIT inventory control.
Q5) Explain and discuss the concept of operations strategies.
Q6) What are the potential pitfalls of budgets?
Q7) Briefly define the main points of strategies, systems, and processes.
Page 20
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Chapter 19: Appendix 1: Managing History and Current Thinking
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Q1) ________ is commonly called the "father of scientific management" because of the significance of his contributions.
A) Frank Gilbreth
B) Henry L. Gantt
C) Lillian Gilbreth
D) Henri Fayol
E) Frederick W. Taylor
Q2) What value does studying the evolution of management provide to students of managers and managers themselves?
Q3) Which of the following is a characteristic of situations in which management science techniques are applied?
A) Managers need help analyzing a large number of variables.
B) The use of behavioral models to investigate the decision situation is indicated.
C) Managers want to determine the psychological and behavioral attitudes of employees.
D) Managers want to determine quality of the customer experience.
E) Social implications are used as guidelines for making a particular decision.
Q4) What value does the Management Science approach offer to managers today?
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Chapter 20: Management and Entrepreneurship: Handling
Start-Ups and New Ventures
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Q1) Exploitation exists when entrepreneurs overestimate the extent to which they can control the outcome of an opportunity.
A)True
B)False
Q2) What is entrepreneurial risk? In this context, explain downside loss.
Q3) Which of the following is true about corporate entrepreneurship?
A) Corporate entrepreneurs focus on less quantitative performance measures that are not related to money.
B) The purpose of corporate entrepreneurship is to create value for the public.
C) Corporate entrepreneurs face more difficulties attracting capital from angel investors, venture capitalists, or banks.
D) Corporate entrepreneurship results in new companies that often continue to work closely with the parent company.
E) Corporate entrepreneurs often face difficulties in the form of hiring and compensating employees.
Q4) Define social entrepreneurship.
Q5) Describe opportunity exploitation.
Q6) Explain the fundamentals of entrepreneurship.
Page 22
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Chapter 21: Encouraging Creativity and Innovation
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Q1) What are the steps involved in the incremental improvement process?
Q2) According to the time-pressure/creativity matrix, if employees feel like they are on a treadmill, they are most likely to ________.
A) receive little encouragement from senior management to be creative
B) focus on one activity for a significant part of the day because they are undisturbed or protected
C) collaborate with one person rather than with a group
D) experience a highly fragmented workday, with many different activities
E) believe that they are doing important work and report feeling positively challenged by the work
Q3) ________ ideas are ideas that focus on invention relating to the way in which the organization is supervised.
A) Management
B) Process
C) Technology
D) Service
E) Product
Q4) What is the "innovation process"? Briefly describe the different steps involved in the innovation process.
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