Exam 17: Organizational Design, Effectiveness, and Innovation

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What are the three key factors that distract managers from learning from success?

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Decision making tends to be centralized in mechanistic organizations.

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Which of the following is true of organizations designed horizontally?

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A stakeholder audit enables management to identify all parties significantly impacted by the organization's performance.

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Efron & Co. have been active in the cell phone manufacturing business for the last two years and have been the market leaders for the last one-and-a-half years. Recently, its research and development department has suggested adding a few games to the phone that they say will attract people in the age group of 15 to 25 years. However, Charlotte, the head of the marketing department, declined to make any changes to the existing product, stating that the product was already a huge success so there was no need to make any changes to it. Charlotte is displaying a(n):

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Innovation can begin and sustain in an organization whose culture rarely supports experimentation.

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Smith & Co. has divided its employees into various groups like manufacturing, marketing, and finance. Smith & Johnson is said to have a(n) _____ structure.

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A hollow organization results from strategic application of the trend toward outsourcing.

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Organizations defined by the traditional approach tend to have functional, divisional, and/or matrix structures.

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A(n) _____ represents group members' shared, organized understanding and mental representation of knowledge about key elements of the group's relevant environment.

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Innovation is a spur-of-the-moment thing in which an idea is hatched.

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The internal process approach to assessing the effectiveness of an organization is appropriate when powerful stakeholders can significantly benefit or harm the organization.

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While the rest of the academia is suffering from labor shortages, Southwestern University averages five applicants for every position opening. With this ratio of applicants to openings, the university can pick and choose from among the top candidates. Southwestern University is successful according to which organizational effectiveness criterion?

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The creation of something new that makes money and finds a pathway to the consumer is known as:

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According to the contingency approach to organization design, organizations tend to be more effective when they are structured to fit the demands of the situation.

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A functional structure can save money by grouping together people who need similar materials and equipment.

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A modular organization uses:

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Like divisional organizations, hollow organizations tap people in particular specialties, who may be more expert than the generalists of a functional or vertical organization.

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Which of the following is true of decentralized organizations?

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An organization is a system of consciously coordinated activities or forces of two or more persons.

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