13 Aug Multiple Choice Questions (Enter your answers on the enclose

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 inteams. This is an example of a change in an organization’s ________.a. cultureb. behaviorc. environmentd. structure2. 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 processesb. changing technology and organizational designc. global environment and changing technologyd. organizational structure and global environment4. Competitive advantage is the ability of a company to ________.a. identify changes in consumer tastes and preferencesb. outperform another company because its managers are able to create more value from theresources at their disposalc. develop a flexible organization structure that can quickly respond to changes in theenvironmentd. achieve economies of scale by manufacturing a product in large volumes5. Which of the following terms refers to the specific pattern of decisions and actions managerstake to use core competencies to achieve a competitive advantage and outperformcompetitors?a. strategyb. value chainc. organizational designd. histogram7Final ExaminationBAM 532 Organizational Theory6. The quality of organizational decision making is a function of the ________.a. organizational core competenciesb. environment of the organizationc. diversity of the viewpoints that get consideredd. value chain followed by the organization7. An organization’s ________ determine how effectively managers are able to coordinate andmotivate workers.a. environmental factorsb. core competenciesc. structure and cultured. competitive advantages8. Which of the following managers has a staff role?a. R&D managerb. production managerc. divisional managerd. assembly line supervisor9. A(n) ________ problem is a problem in determining managerial accountability that ariseswhen delegating authority to managers.a. self-dealingb. organizational contractc. line of commandd. agency10. 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 agentb. the agent has an incentive to pursue goals and objectives different from the principal’sc. the principal acts in his own best interest, as opposed to the interests of the otherstakeholdersd. the agent is given the authority to allocate scarce organizational resources11. 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.8Final ExaminationBAM 532 Organizational Theory12. “Self-dealing” is defined as ________.a. a manager acting in his own best interest, as opposed to the interests of the otherstakeholdersb. a cash bonus distributed privately amongst the top-management teamc. a manager promoting family members at the expense of othersd. a form of control that aligns the interests of principal and agent so both parties have theincentive to work together to maximize organizational effectiveness13. Which of the following is generally used to solve agency problems?a. self-dealingb. stock-based compensation schemesc. a highly centralized organization structured. a matrix organization structure14. As per the ________ Act, CEOs, COOs, and the chief financial officer are required to sign offon their company’s balance statements so they can be held personally and legally liable foraccidental or deliberate mistakes found later.a. Sarbanes-Oxleyb. Taft-Hartleyc. Walsh-Healeyd. Davis-Bacon15. A manager decides to locate a manufacturing plant in a location that maximizes the overallbenefits to the stakeholders. Which model of ethics is being used by the manager?a. justiceb. moral rightsc. utilitariand. mutual association16. Which of the following terms refers to the amount of resources available to support anorganization’s domain?a. environmental dynamismb. environmental complexityc. environmental richnessd. environmental naturalness9Final ExaminationBAM 532 Organizational Theory17. 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 complexityb. an increase in the level of environmental stabilityc. an increase in the level of profitd. an increase in the level of environmental uncertainty20. The government attempted to control prescription drug prices during the 1990s. What wouldhave been the effect of this change on this industry?a. It would have increased competition, thereby reducing the complexity of theenvironment.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 lessdynamic.d. It would have enlarged the domain of this industry.21. According to the ________, an organization should minimize its dependence on otherorganizations for resources and find ways of influencing them to make resources available.a. organizational theoryb. resource dependence theoryc. contingency theoryd. group theory10Final ExaminationBAM 532 Organizational Theory22. Which of the following theories states that an organization must respond to the needs anddemands of other organizations in its environment?a. contingency theoryb. the enacted environment conceptc. resource dependence theoryd. transaction cost theory23. As per the resource dependence theory, in which of the following situations is an organizationsaid 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 directlysupervises?a. span of controlb. chain of authorityc. degree of standardizationd. level of centralization25. Which of the following is one of the ways in which an organization can avoid becoming tootall 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 thenumber of managers at the lower levels in the hierarchy.d. The division of labor will be too low.