Group Theory 10 Final Bam 532 California Coast Un

Group Theory 10 Final Bam 532 California Coast Un

Group Theory 10 Final Bam 532 California Coast Un

Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1. At Microsoft, to control scientists and make use of their talents, Bill Gates put them in
teams. This is an example of a change in an organization’s ________.
a. culture
b. behavior
c. environment
d. structure
2. Which of the following definitions best describes a contingency?
a. It is an event which occurred in the past which resulted in heavy profits for the company.
b. It is an event due to which a company identifies its competitive advantage.
c. It is an event that might occur and must be planned for.
d. It is an event which occurred in the past, resulting in heavy loss for the company.
3. Which of the following are contingencies that cause the organization to face uncertainty?
a. organizational design and organizational processes
b. changing technology and organizational design
c. global environment and changing technology
d. organizational structure and global environment
4. Competitive advantage is the ability of a company to ________.
a. identify changes in consumer tastes and preferences
b. outperform another company because its managers are able to create more value from the
resources at their disposal
c. develop a flexible organization structure that can quickly respond to changes in the
environment
d. achieve economies of scale by manufacturing a product in large volumes
5. Which of the following terms refers to the specific pattern of decisions and actions managers
take to use core competencies to achieve a competitive advantage and outperform
competitors?
a. strategy
b. value chain
c. organizational design
d. histogram
7
Final Examination
BAM 532 Organizational Theory
6. The quality of organizational decision making is a function of the ________.
a. organizational core competencies
b. environment of the organization
c. diversity of the viewpoints that get considered
d. value chain followed by the organization
7. An organization’s ________ determine how effectively managers are able to coordinate and
motivate workers.
a. environmental factors
b. core competencies
c. structure and culture
d. competitive advantages
8. Which of the following managers has a staff role?
a. R&D manager
b. production manager
c. divisional manager
d. assembly line supervisor
9. A(n) ________ problem is a problem in determining managerial accountability that arises
when delegating authority to managers.
a. self-dealing
b. organizational contract
c. line of command
d. agency
10. Which of the following is one of the two conditions that lead to a moral hazard problem?
a. the principal possesses more information than the agent
b. the agent has an incentive to pursue goals and objectives different from the principal’s
c. the principal acts in his own best interest, as opposed to the interests of the other
stakeholders
d. the agent is given the authority to allocate scarce organizational resources
11. Which of the following statements is true regarding a divisional manager?
a. A divisional manager is a part of the top-management team.
b. Divisional managers act as outside directors for the company.
c. A divisional manager is not a corporate manager.
d. A marketing manager is an example of a divisional manager.
8
Final Examination
BAM 532 Organizational Theory
12. “Self-dealing” is defined as ________.
a. a manager acting in his own best interest, as opposed to the interests of the other
stakeholders
b. a cash bonus distributed privately amongst the top-management team
c. a manager promoting family members at the expense of others
d. a form of control that aligns the interests of principal and agent so both parties have the
incentive to work together to maximize organizational effectiveness
13. Which of the following is generally used to solve agency problems?
a. self-dealing
b. stock-based compensation schemes
c. a highly centralized organization structure
d. a matrix organization structure
14. As per the ________ Act, CEOs, COOs, and the chief financial officer are required to sign off
on their company’s balance statements so they can be held personally and legally liable for
accidental or deliberate mistakes found later.
a. Sarbanes-Oxley
b. Taft-Hartley
c. Walsh-Healey
d. Davis-Bacon
15. A manager decides to locate a manufacturing plant in a location that maximizes the overall
benefits to the stakeholders. Which model of ethics is being used by the manager?
a. justice
b. moral rights
c. utilitarian
d. mutual association
16. Which of the following terms refers to the amount of resources available to support an
organization’s domain?
a. environmental dynamism
b. environmental complexity
c. environmental richness
d. environmental naturalness
9
Final Examination
BAM 532 Organizational Theory
17. Which of the following is most likely to be a reason for poor environment?
a. Resources are plentiful.
b. Environmental uncertainty is low.
c. Competition is high.
d. The country is wealthy.
18. Which of the following is most likely to increase environmental uncertainty?
a. Increase in the richness of the environment.
b. Decrease in the dynamism of the environment.
c. Decrease in the depth of the environment.
d. Increase in the complexity of the environment.
19. A poor environment is most likely to lead to ________.
a. a decrease in the level of environmental complexity
b. an increase in the level of environmental stability
c. an increase in the level of profit
d. an increase in the level of environmental uncertainty
20. The government attempted to control prescription drug prices during the 1990s. What would
have been the effect of this change on this industry?
a. It would have increased competition, thereby reducing the complexity of the
environment.
b. It would have made the environment more complex due to the reduction in profits.
c. It would have increased the demand for drugs, thereby making the environment less
dynamic.
d. It would have enlarged the domain of this industry.
21. According to the ________, an organization should minimize its dependence on other
organizations for resources and find ways of influencing them to make resources available.
a. organizational theory
b. resource dependence theory
c. contingency theory
d. group theory
10
Final Examination
BAM 532 Organizational Theory
22. Which of the following theories states that an organization must respond to the needs and
demands of other organizations in its environment?
a. contingency theory
b. the enacted environment concept
c. resource dependence theory
d. transaction cost theory
23. As per the resource dependence theory, in which of the following situations is an organization
said to be weak?
a. The organization is highly centralized.
b. There are only a few suppliers of a resource needed by the organization.
c. The organization uses a divisional organizational structure.
d. The organization manufactures a wide variety of products.
24. Which of the following terms refers to the number of subordinates a manager directly
supervises?
a. span of control
b. chain of authority
c. degree of standardization
d. level of centralization
25. Which of the following is one of the ways in which an organization can avoid becoming too
tall yet maintain effective control of its workforce?
a. Encouraging upward communication but discouraging downward communication.
b. Conducting 360 degrees appraisal of the employees.
c. Increasing its managers’ span of control.
d. Increasing the number of levels in the hierarchy.
26. Which of the following is most likely to happen if the span of control is too wide?
a. The speed of decision making will increase.
b. Subordinates will shirk responsibility.
c. The number of managers at the higher levels in the hierarchy will be more than the
number of managers at the lower levels in the hierarchy.
d. The division of labor will be too low.