Organization Theory And Design 12th Edition by Richard L. Daft - Test Bank

Organization Theory And Design 12th Edition by Richard L. Daft - Test Bank   Instant Download - Complete Test Bank With Answers     Sample Questions Are Posted Below   1. Relatively enduring resource transactions, flows, and linkages that occur among two or more organizations are called:   a. intraorganizational networks.   b. interorganizational relationships.   …

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Organization Theory And Design 12th Edition by Richard L. Daft – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

1. Relatively enduring resource transactions, flows, and linkages that occur among two or more organizations are called:

  a. intraorganizational networks.
  b. interorganizational relationships.
  c. internal processes.
  d. regulation processes.

 

ANSWER:   b
RATIONALE:   Feedback: Relatively enduring resource transactions, flows, and linkages that occur among two or more organizations are called interorganizational relationships.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-01 – 05-01
NATIONAL STANDARDS:   United States – AACSB: Operations Management
TOPICS:   Organizational Ecosystems
KEYWORDS:   Bloom’s: Remember

 

2. A system formed by the interaction of a community of organizations and their environment is referred to as a(n):

  a. organizational ecosystem.
  b. interorganizational network.
  c. collaboration network.
  d. institutional environment.

 

ANSWER:   a
RATIONALE:   Feedback: A system formed by the interaction of a community of organizations and their environment is referred to as an organizational ecosystem.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-01 – 05-01
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Organizational Ecosystems
KEYWORDS:   Bloom’s: Remember

 

3. In which of the following approaches do businesses, governments, and nonprofit organizations join together across sectors and industries to tackle huge, compelling problems of mutual interest?

  a. The Behavioral approach
  b. The Internal process approach
  c. The Megacommunity approach
  d. The Open innovation approach

 

ANSWER:   c
RATIONALE:   Feedback: In the megacommunity approach, businesses, governments, and nonprofit organizations join together across sectors and industries to tackle huge, compelling problems of mutual interest, such as energy development, world hunger, or cybercrime.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-01 – 05-01
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Organizational Ecosystems
KEYWORDS:   Bloom’s: Remember

 

4. Which of the following is true of collaborative roles played by managers?

  a. They have direct control over people and resources.
  b. They are accountable for specific business results.
  c. They are rigid and passive.
  d. They have direct authority over horizontal colleagues.

 

ANSWER:   b
RATIONALE:   Feedback: Collaborative roles do not have direct authority over horizontal colleagues or partners, but are nonetheless accountable for specific business results.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-02 – 05-02
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Organizational Ecosystems
KEYWORDS:   Bloom’s: Remember

 

5. Which of the following theories argues that organizations try to minimize their reliance on other organizations for the supply of important resources and try to influence the environment to make resources available?

  a. The Resource-retention theory
  b. The Environmental resource theory
  c. The Resource-dependence theory
  d. The Economic supply theory

 

ANSWER:   c
RATIONALE:   Feedback: The resource-dependence theory argues that organizations try to minimize their reliance on other organizations for the supply of important resources and try to influence the environment to make resources available.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-03 – 05-03
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Resource Dependence
KEYWORDS:   Bloom’s: Remember

 

6. Organizations operating under the resource-dependence philosophy will:

  a. withdraw control over external resources, thereby maximizing dependence.
  b. succeed by emphasizing interdependence with other companies, thereby establishing lasting relationships.
  c. do whatever is needed to avoid dependence on the environment, thereby reducing uncertainty.
  d. set up dependencies when they become more self-reliant, thereby maximizing autonomy.

 

ANSWER:   c
RATIONALE:   Feedback: The resource dependence theory argues that organizations try to minimize their reliance on other organizations for the supply of important resources and try to influence the environment to make resources available.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-03 – 05-03
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Resource Dependence
KEYWORDS:   Bloom’s: Understand

 

7. Arkal Corp. manufactures wooden chairs and Borston Corp. manufactures plastic chairs. Arkal Corp. wants to enter into a resource-dependence relationship with Borston Corp. Which of the following types of resource-dependence relationships is most likely to result in Arkal Corp. gaining full control over the joint outcome?

  a. Acquisition
  b. Joint Venture
  c. Strategic Alliance
  d. Interlock

 

ANSWER:   a
RATIONALE:   Feedback: Acquisition/Merger offers the greatest amount of control over joint outcomes because the acquiring firm absorbs all of the resources, assets, and liabilities of the target organization.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-03 – 05-03
NATIONAL STANDARDS:   United States – AACSB: Operations Management
TOPICS:   Resource Dependence
KEYWORDS:   Bloom’s: Apply

 

8. In the _____, companies join together to become more competitive and to share scarce resources.

  a. institutional perspective
  b. resource-dependence perspective
  c. population-ecology perspective
  d. collaborative-network perspective

 

ANSWER:   d
RATIONALE:   Feedback: The collaborative-network perspective is an emerging alternative to resource-dependence theory in which companies join together to become more competitive and to share scarce resources.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-04 – 05-04
NATIONAL STANDARDS:   United States – AACSB: Operations Management
TOPICS:   Collaborative Networks
KEYWORDS:   Bloom’s: Remember

 

9. Getwel Corp. and Sebastian Inc. are two computer manufacturers that share with each other the details of commonly occurring issues and customer complaints. This enables them to work together and provide better service to their customers and also saves the time required to diagnose the issues. Which of the following does this scenario illustrate?

  a. A Collaborative network
  b. Resource dependence
  c. Normative forces
  d. A Trade association

 

ANSWER:   a
RATIONALE:   Feedback: Getwel Corp. and Sebastian Inc. have formed a collaborative network to serve their customers more efficiently. In collaborative networks, organizations allow themselves to become dependent on other organizations to increase value and productivity for all.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-04 – 05-04
NATIONAL STANDARDS:   United States – AACSB: Operations Management
TOPICS:   Collaborative Networks
KEYWORDS:   Bloom’s: Remember

 

10. Which of the following is a characteristic of the new orientation to interorganizational relationships?

  a. Equity and fair dealing
  b. Contract limiting the relationship
  c. Minimal up-front investment
  d. Legal resolution of conflict

 

ANSWER:   a
RATIONALE:   Feedback: The new orientation to interorganizational relationships is characterized by equity and fair dealing.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-05 – 05-05
NATIONAL STANDARDS:   United States – AACSB: Operations Management
TOPICS:   Collaborative Networks
KEYWORDS:   Bloom’s: Understand

 

11. Which of the following statements is true about the population-ecology perspective?

  a. It focuses on organizational diversity and adaptation within organizations.
  b. It focuses on the alliance of companies to share scarce resources.
  c. It focuses on minimizing the dependence of an organization on other organizations.
  d. It focuses on the congruence between an organization and the expectations from its environment.

 

ANSWER:   a
RATIONALE:   Feedback: The population-ecology perspective differs from the other perspectives because it focuses on organizational diversity and adaptation within a population of organizations.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Understand

 

12. Which of the following is an assumption of the population-ecology perspective?

  a. Management competence is the biggest factor in the survival of organizations.
  b. Individual organizations find it difficult to adapt to environmental changes.
  c. Principles of evolution are not applicable to organizations because the fittest do not survive.
  d. A community of organizations is a closed system.

 

ANSWER:   b
RATIONALE:   Feedback: According to the population-ecology view, when looking at an organizational population as a whole, the changing environment determines which organizations survive or fail. The assumption is that individual organizations suffer from structural inertia and find it difficult to adapt to environmental changes.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Understand

 

13. All of the following except _____ are the stages of the population ecology model of organizations.

  a. retention
  b. variation
  c. exertion
  d. selection

 

ANSWER:   c
RATIONALE:   Feedback: The stages of the population ecology model of organizations are retention, variation, and selection.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Operations Management
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Remember

 

14. Which of the following stages of the population ecology model of organizations refers to the preservation and institutionalization of selected organizational forms?

  a. Retention
  b. Variation
  c. Exertion
  d. Selection

 

ANSWER:   a
RATIONALE:   Feedback: Retention is the preservation and institutionalization of selected organizational forms.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Remember

 

15. Organizations with a wide niche or domain, that is, those that offer a broad range of products and services or that serve a broad market are:

  a. specialists.
  b. generalists.
  c. mutualists.
  d. pacifists.

 

ANSWER:   b
RATIONALE:   Feedback: Organizations with a wide niche or domain, that is, those that offer a broad range of products and services or that serve a broad market are generalists.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Remember

 

16. In the context of the population-ecology perspective, which of the following best illustrates a generalist strategy?

  a. Maffles Inc. sells books, electronic equipment, furniture, and fashion accessories.
  b. Harpors Inc. sells fiction novels in Canada.
  c. Tradcom Corp. sells music DVDs over the Internet.
  d. Togyon Corp. sells toys manufactured from recycled plastic and discarded toys.

 

ANSWER:   a
RATIONALE:   Feedback: Maffles Inc. follows a generalist strategy. Organizations with a wide niche or domain, that is, those that offer a broad range of products and services or that serve a broad market are generalists.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Apply

 

17. In the population-ecology model of organizations, _____ means the appearance of new, diverse forms in a population of organizations.

  a. retention
  b. selection
  c. variation
  d. legitimacy

 

ANSWER:   c
RATIONALE:   Feedback: Variation means the appearance of new, diverse forms in a population of organizations.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Remember

 

18. In the context of the population-ecology perspective, which of the following is a difference between specialists and generalists?

  a. Specialists offer a broader range of products or services than generalists.
  b. Specialists move slower than generalists and are less flexible.
  c. Specialists are generally more competitive than generalists.
  d. Specialists are generally larger than generalists.

 

ANSWER:   c
RATIONALE:   Feedback: Specialists are generally more competitive than generalists in the narrow area in which their domains overlap. Organizations with a wide niche or domain, that is, those that offer a broad range of products and services or that serve a broad market are generalists. Organizations that provide a narrower range of goods or services or that serve a narrower market are specialists.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Understand

 

19. _____ is defined as the general perspective that an organization’s actions are desirable, proper, and appropriate within the environment’s system of norms, values, and belief.

  a. Variation
  b. Legitimacy
  c. Niche
  d. Retention

 

ANSWER:   b
RATIONALE:   Feedback: Legitimacy is defined as the general perspective that an organization’s actions are desirable, proper, and appropriate within the environment’s system of norms, values, and belief.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-07 – 05-07
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Institutionalism
KEYWORDS:   Bloom’s: Remember

 

20. _____ is the process that causes one unit in a population to resemble other units that face the same set of environmental conditions.

  a. Allomorphism
  b. Chromaticism
  c. Isomorphism
  d. Isochronism

 

ANSWER:   c
RATIONALE:   Feedback: Isomorphism is the process that causes one unit in a population to resemble other units that face the same set of environmental conditions.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-07 – 05-07
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Institutionalism
KEYWORDS:   Bloom’s: Remember

 

21. Garin Corp., an automobile manufacturing company, tried to increase its sales by releasing car models with new colors. In the light of its huge success, other automobile manufacturers began doing the same. Which of the following mechanisms for institutional adaptation is best illustrated in this scenario?

  a. Mimetic forces
  b. Coercive forces
  c. Normative forces
  d. Generic forces

 

ANSWER:   a
RATIONALE:   Feedback: This scenario best illustrates mimetic forces. Mimetic forces refer to the pressure to copy or model other organizations that are generally regarded as successful.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-07 – 05-07
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Institutionalism
KEYWORDS:   Bloom’s: Apply

 

22. Which of the following statements is true about mimetic forces?

  a. Organizations are forced to behave similarly in order to maintain productive relationships.
  b. Political and governmental processes force organizations to become similar.
  c. In the face of uncertainty, organizations copy or model each other.
  d. Diversity is maintained in order for organizations to find and maintain a marketing niche.

 

ANSWER:   c
RATIONALE:   Feedback: In the face of uncertainty, mimetic forces, the pressures to copy or model other organizations, occur.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-07 – 05-07
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Institutionalism
KEYWORDS:   Bloom’s: Understand

 

23. _____ means identifying who is best at something in an industry and then duplicating the technique for creating excellence, perhaps even improving it in the process.

  a. Retention
  b. Benchmarking
  c. Ballooning
  d. Variation

 

ANSWER:   b
RATIONALE:   Feedback: Benchmarking means identifying who is best at something in an industry and then duplicating the technique for creating excellence, perhaps even improving it in the process.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-07 – 05-07
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Institutionalism
KEYWORDS:   Bloom’s: Remember

 

24. In the context of mechanisms for institutional adaptation, benchmarking is a:

  a. mimetic process.
  b. coercive process.
  c. normative process.
  d. generic process.

 

ANSWER:   a
RATIONALE:   Feedback: Benchmarking is a mimetic process. It involves identifying who is best at something in an industry and then duplicating the technique for creating excellence, perhaps even improving it in the process.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-07 – 05-07
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Institutionalism
KEYWORDS:   Bloom’s: Remember

 

25. Which of the following is a reason for a mimetic process to occur in an organization?

  a. Managers face high risks by supporting innovation.
  b. Managers are old-fashioned and stick to their original approach.
  c. Managers are unaware of the innovations occurring in the environment.
  d. Managers face high uncertainty.

 

ANSWER:   d
RATIONALE:   Feedback: The mimetic process occurs because managers face high uncertainty, they are aware of innovations occurring in the environment, and the innovations are culturally supported, thereby giving legitimacy to adopters.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-07 – 05-07
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Institutionalism
KEYWORDS:   Bloom’s: Understand

 

26. _____ are the external pressures exerted on an organization to adopt structures, techniques, or behaviors similar to other organizations.

  a. Mimetic forces
  b. Coercive forces
  c. Normative forces
  d. Generic forces

 

ANSWER:   b
RATIONALE:   Feedback: Coercive forces are the external pressures exerted on an organization to adopt structures, techniques, or behaviors similar to other organizations.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-07 – 05-07
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Institutionalism
KEYWORDS:   Bloom’s: Remember

 

27. Organizational changes that result from coercive forces occur due to _____.

  a. dependence
  b. obligation
  c. uncertainty
  d. professionalism

 

ANSWER:   a
RATIONALE:   Feedback: Coercive forces are the external pressures exerted on an organization to adopt structures, techniques, or behaviors similar to other organizations. Organizational changes that result from coercive forces occur when an organization is dependent on another.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-07 – 05-07
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Institutionalism
KEYWORDS:   Bloom’s: Remember

 

28. _____ are pressures to achieve standards of professionalism and to adopt techniques that are considered by the professional community to be up to date and effective.

  a. Mimetic forces
  b. Coercive forces
  c. Normative forces
  d. Generic forces

 

ANSWER:   c
RATIONALE:   Feedback: Normative forces are pressures to achieve standards of professionalism and to adopt techniques that are considered by the professional community to be up to date and effective.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-07 – 05-07
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Institutionalism
KEYWORDS:   Bloom’s: Remember

 

29. Companies accept normative pressures to become like one another due to _____.

  a. dependence
  b. obligation
  c. uncertainty
  d. independence

 

ANSWER:   b
RATIONALE:   Feedback: Companies accept normative pressures to become like one another through a sense of obligation or duty to high standards of performance based on professional norms shared by managers and specialists in their respective organizations.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-07 – 05-07
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Institutionalism
KEYWORDS:   Bloom’s: Remember

 

30. A company may use any or all of the mechanisms of mimetic, coercive, or normative forces to change itself for greater _____ in the institutional environment.

  a. profit
  b. market share
  c. resource dependency
  d. legitimacy

 

ANSWER:   d
RATIONALE:   Feedback: A company may use any or all of the mechanisms of mimetic, coercive, or normative forces to change itself for greater legitimacy in the institutional environment.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-07 – 05-07
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Institutionalism
KEYWORDS:   Bloom’s: Remember

 

31. The term frenemies refers to the trend toward companies being both collaborators and competitors.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: Frenemies refers to the trend toward companies being both friends and enemies, collaborators and competitors.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-01 – 05-01
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Organizational Ecosystems
KEYWORDS:   Bloom’s: Remember

 

32. In the changing role of management, managers think about vertical processes rather than horizontal structures.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: In the changing role of management, managers think about horizontal processes rather than vertical structures.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-02 – 05-02
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Organizational Ecosystems
KEYWORDS:   Bloom’s: Understand

 

33. Managers in collaborative roles have direct authority over horizontal colleagues or partners.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: Collaborative roles do not have direct authority over horizontal colleagues or partners, but are nonetheless accountable for specific business results.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-02 – 05-02
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Organizational Ecosystems
KEYWORDS:   Bloom’s: Understand

 

34. Acquisition offers the greatest amount of control over joint outcomes.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: Acquisition offers the greatest amount of control over joint outcomes.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-03 – 05-03
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Resource Dependence
KEYWORDS:   Bloom’s: Understand

 

35. According to the resource-dependence perspective, when threatened by greater dependence, organizations will assert control over external resources to minimize that dependence.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: According to the resource-dependence perspective, when threatened by greater dependence, organizations will assert control over external resources to minimize that dependence.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-03 – 05-03
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Resource Dependence
KEYWORDS:   Bloom’s: Understand

 

36. In resource-dependence relationships, large independent companies have power over smaller suppliers or partners.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: In resource-dependence relationships, large independent companies have power over smaller suppliers or partners.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-03 – 05-03
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Resource Dependence
KEYWORDS:   Bloom’s: Understand

 

37. A strategic alliance is more formal and binding than a joint venture.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: A strategic alliance is less formal and binding than a joint venture.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-03 – 05-03
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Resource Dependence
KEYWORDS:   Bloom’s: Understand

 

38. The goal of supply sourcing is to reduce risk and overdependence on one company in the supply chain.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: The goal of supply sourcing is to reduce risk and overdependence on one company in the supply chain.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-03 – 05-03
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Resource Dependence
KEYWORDS:   Bloom’s: Understand

 

39. One of the main reasons for interorganizational collaboration is sharing risks when entering new markets.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: Some key reasons for collaboration include sharing risks when entering new markets, mounting expensive new programs and reducing costs, and enhancing an organization’s profile in selected industries or technologies.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-04 – 05-04
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Collaborative Networks
KEYWORDS:   Bloom’s: Understand

 

40. Interorganizational linkages encourage risk taking.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: Interorganizational linkages provide a kind of safety net that encourages long-term investment, information sharing, and risk taking.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-04 – 05-04
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Collaborative Networks
KEYWORDS:   Bloom’s: Understand

 

41. The traditional adversarial orientation is characterized by loose performance measures, equity, and fair dealing.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: The traditional adversarial orientation is characterized by detailed performance measures, price, efficacy, and own profits. The partnership orientation on the other hand is characterized by loose performance measures, equity, and fair dealing.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-05 – 05-05
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Collaborative Networks
KEYWORDS:   Bloom’s: Understand

 

42. In the partnership-orientation view, dependence on another company is seen to increase rather than reduce risks.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: In the partnership-orientation view, dependence on another company is seen to reduce rather than increase risks.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-05 – 05-05
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Collaborative Networks
KEYWORDS:   Bloom’s: Understand

 

43. According to the population-ecology view, when looking at an organizational population as a whole, the changing environment determines which organizations survive or fail.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: According to the population-ecology view, when looking at an organizational population as a whole, the changing environment determines which organizations survive or fail.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Understand

 

44. When rapid change occurs, old organizations are likely to thrive.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: According to the population-ecology view, when looking at an organizational population as a whole, the changing environment determines which organizations survive or fail. The assumption is that individual organizations suffer from structural inertia and find it difficult to adapt to environmental changes. Thus, when rapid change occurs, old organizations are likely to decline or fail.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Understand

 

45. The niche is usually large in the early stages of an organization and reduces in size over time.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: The niche is usually small in the early stages of an organization but may increase in size over time if the organization is successful.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Understand

 

46. Selection is the preservation and institutionalization of selected organizational forms.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: Selection refers to whether a new organizational form is suited to the environment and can survive.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Remember

 

47. When excessive resources are available to an organization, that organization will be “selected out.”

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: When there is insufficient demand for a firm’s product or service and when insufficient resources are available to the organization, that organization will be “selected out.”
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Remember

 

48. The struggle for existence is most intense among old organizations.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: The struggle for existence is most intense among new organizations, and both the birth and survival frequencies of new organizations are related to factors in the larger environment.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Understand

 

49. Specialists are generally more competitive than generalists in the narrow area in which their domains overlap.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: Specialists are generally more competitive than generalists in the narrow area in which their domains overlap.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Understand

 

50. Given their flexibility, specialists are able to reallocate resources internally to adapt to a changing environment, whereas generalists are not.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: Because of the diversity of products, services, and customers, generalists are able to reallocate resources internally to adapt to a changing environment, whereas specialists are not.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Remember

 

51. The institutional dimension in an organization is governed by expectations from people and organizations in the external environment.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: The institutional dimension in an organization is governed by expectations from people and organizations in the external environment.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-07 – 05-07
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Institutionalism
KEYWORDS:   Bloom’s: Remember

 

52. Coercive forces stem from responses to uncertainty.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: Coercive forces stem from political influence.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-07 – 05-07
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Institutionalism
KEYWORDS:   Bloom’s: Remember

 

53. The social basis for the mimetic process is that the innovations are culturally supported.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: The mimetic process occurs because managers face high uncertainty, they are aware of innovations occurring in the environment, and the innovations are culturally supported, thereby giving legitimacy to adopters.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-07 – 05-07
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Institutionalism
KEYWORDS:   Bloom’s: Understand

 

54. Organizational changes that result from coercive forces occur when an organization is completely independent of another.

  a. True
  b. False

 

ANSWER:   False
RATIONALE:   Feedback: Organizational changes that result from coercive forces occur when an organization is dependent on another.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-07 – 05-07
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Institutionalism
KEYWORDS:   Bloom’s: Understand

 

55. Companies accept normative pressures to become like one another through a sense of obligation or duty to high standards of performance.

  a. True
  b. False

 

ANSWER:   True
RATIONALE:   Feedback: Companies accept normative pressures to become like one another through a sense of obligation or duty to high standards of performance.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-07 – 05-07
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Institutionalism
KEYWORDS:   Bloom’s: Understand

 

56. What is an organizational ecosystem? How does this concept impact the changing role of management?

ANSWER:   An organizational ecosystem is a system formed by the interaction of a community of organizations and their environment. Within business ecosystems, managers have to look beyond the boundaries of their own company and build relationships with a network of partners by focusing on horizontal processes rather than vertical structures. In this changing environment, rather than trying to force suppliers into low prices or customers into high prices, managers strive to strengthen the larger system evolving around them, finding ways to understand this big picture and how to contribute. They need to adhere to either an operations role or a collaborative role in order to achieve success.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-01 – 05-01
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Organizational Ecosystems
KEYWORDS:   Bloom’s: Understand

 

57. Summarize the perspectives for understanding interorganizational relationships.

ANSWER:   Relationships among organizations can be characterized by whether the organizations are dissimilar or similar and whether relationships are competitive or cooperative. By understanding these perspectives, managers can assess their environment and adopt strategies to suit their needs. The first perspective is called resource-dependence theory, which describes rational ways organizations deal with each other to reduce their dependence on the environment. The second perspective is about collaborative networks, wherein organizations allow themselves to become dependent on other organizations to increase value and productivity for all. The third perspective is population ecology, which examines how new organizations fill niches left open by established organizations and how a rich variety of new organizational forms benefits society. The final approach is called institutionalism, which explains why and how organizations legitimate themselves in the larger environment and design structures by borrowing ideas from each other.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-02 – 05-02
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Organizational Ecosystems
KEYWORDS:   Bloom’s: Remember

 

58. Explain in brief the different types of resource-dependence relationships.

ANSWER:   Organizations operating under the resource-dependence philosophy will do whatever is needed to avoid excessive dependence on other organizations and maintain control of resources and outcomes, thereby reducing their uncertainty. They use the following types of resource dependence relationships in order for them to maintain an autonomy:
a. Acquisition/Merger: This type of relationship offers the greatest amount of control over joint outcomes because the acquiring firm absorbs all of the resources, assets, and liabilities of the target organization.
b. Joint Venture: A joint venture offers less control than full ownership. It is a new and distinct organizational entity set up by two or more organizations to jointly develop an innovative product or shared technology.
c. Strategic Alliance: A strategic alliance is less formal and binding than a joint venture. It is a collaborative agreement between two or more organizations that contribute resources to a common endeavor while maintaining their individuality.
d. Supply Sourcing: Many organizations establish contracts with key suppliers to acquire resources to supplement in-house resources and capabilities. The goal is to reduce risk and overdependence on one company in the supply chain.
e. Trade Association. A trade association is a federation that allows organizations, often in the same industry, to meet, share information, and monitor one another’s activities. A trade association can also use collective resources to lobby for government policies to protect the industry.
f. Board Interlock: A board interlock occurs when a director serves on the boards of multiple companies, creating connections among the companies.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-03 – 05-03
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Resource Dependence
KEYWORDS:   Bloom’s: Remember

 

59. Describe the power implications of resource-dependence relationships.

ANSWER:   In resource-dependence relationships, large independent companies have power over smaller suppliers or partners. When a large company asks the small companies that it dominates for deals or lower prices, then the small companies have to oblige. Resource dependence can work in the opposite direction too. When the smaller companies produce or supply resources required by the larger companies, the smaller companies have power over the larger companies. Thus, the power relationships in various industries are always shifting.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-03 – 05-03
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Resource Dependence
KEYWORDS:   Bloom’s: Understand

 

60. Explain how collaborative-network perspective is an emerging alternative to resource-dependence theory.

ANSWER:   The collaborative-network perspective is an emerging alternative to resource-dependence theory. Companies join together to become more competitive and to share scarce resources. Large aerospace firms partner with one another and with smaller companies and suppliers to design next-generation jets. Large pharmaceutical companies join with small biotechnology firms to share resources and knowledge and spur innovation. Consulting firms, investment companies, and accounting firms may join in an alliance to meet customer demands for expanded services. Some companies have moved away from the idea of remaining independent to allow themselves to develop mutually dependent relationships with other organizations and accomplish things none of the organizations could do alone.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-04 – 05-04
NATIONAL STANDARDS:   United States – AACSB: Operations Management
TOPICS:   Collaborative networks
KEYWORDS:   Bloom’s: Understand

 

61. Compare and contrast the traditional adversarial orientation with the new partnership orientation of interorganizational relationships.

ANSWER:   The traditional model is characterized by suspicion and competition. It involves detailed performance measures and provision of limited information and feedback. Any conflict is resolved legally, and there is a minimal involvement in the partner’s product design and production. It involves short-term contracts that limit the relationship with the partners. On the other hand, the partnership orientation is based on independence and trust. People try to add value to both sides and believe in high commitment rather than suspicion and competition. The new model is characterized by lots of shared information, including electronic linkages and face-to-face discussions to provide feedback and solve problems. Partners develop equitable solutions to conflicts rather than relying on legal contracts and lawsuits. Contracts may be loosely specified, and it is not unusual for business partners to help each other outside whatever is specified in the contract.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-05 – 05-05
NATIONAL STANDARDS:   United States – AACSB: Operations Management
TOPICS:   Collaborative networks
KEYWORDS:   Bloom’s: Understand

 

62. What is the impact of rapid environmental changes on organizations?

ANSWER:   Large, established firms often have tremendous difficulty adapting to a rapidly changing environment. Hence, new organizational forms that fit the current environment emerge, fill a new niche, and over time take away business from established companies. According to the population-ecology view, when looking at an organizational population as a whole, the changing environment determines which organizations survive or fail. The assumption is that individual organizations suffer from structural inertia and find it difficult to adapt to environmental changes. Thus, when rapid change occurs, old organizations are likely to decline or fail, and new organizations emerge that are better suited to the needs of the environment.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Understand

 

63. Explain how finding an appropriate niche is important for the survival of an organization.

ANSWER:   The population-ecology model is concerned with organizational forms. Organizational form is an organization’s specific technology, structure, products, goals, and personnel, which can be selected or rejected by the environment. Each new organization tries to find a niche (i.e., a domain of unique environmental resources and needs) sufficient to support it. The niche is usually small in the early stages of an organization but may increase in size over time if the organization is successful. If the organization does not find an appropriate niche, it will decline and may perish.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Understand

 

64. In the context of the population-ecology perspective, compare and contrast specialists and generalists.

ANSWER:   In the population-ecology perspective, generalist and specialist strategies distinguish organizational forms in the struggle for survival. Organizations with a wide niche or domain—that is, those that offer a broad range of products or services or that serve a broad market—are generalists. Organizations that provide a narrower range of goods or services or that serve a narrower market are specialists. Specialists are generally more competitive than generalists in the narrow area in which their domains overlap. However, the breadth of the generalist’s domain serves to protect it somewhat from environmental changes. Though demand may decrease for some of the generalist’s products or services, it usually increases for others at the same time. In addition, because of the diversity of products, services, and customers, generalists are able to reallocate resources internally to adapt to a changing environment, whereas specialists are not. However, because specialists are often smaller companies, they can sometimes move faster and be more flexible in adapting to changes.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-06 – 05-06
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Population Ecology
KEYWORDS:   Bloom’s: Understand

 

65. Describe the essential dimensions of organizations according to the institutional view.

ANSWER:   The institutional view also sees organizations as having two essential dimensions—technical and institutional. The technical dimension is the day-to-day work, technology, and operating requirements. The institutional structure is that part of an organization most visible to the outside public. Moreover, the technical dimension is governed by norms of rationality and efficiency, but the institutional dimension is governed by expectations from people and organizations in the external environment. As a result of pressure to conduct business in a proper and correct way, the formal structures of many organizations reflect the expectations and values of the environment rather than the demand of work activities. This means that an organization may incorporate positions or activities (e.g., e-commerce division, chief compliance officer, social media director) perceived as important by the larger society to increase its legitimacy and survival prospects, even though these elements may decrease efficiency.
POINTS:   1
LEARNING OBJECTIVES:   ORGT.DAFT.16.05-07 – 05-07
NATIONAL STANDARDS:   United States – AACSB: Environmental Influence
TOPICS:   Institutionalism
KEYWORDS:   Bloom’s: Remember

 

 

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