Exam 1: Organizations and Organizational Effectiveness

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Organizational design:

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Which of the following approaches is most concerned with the conversion stage of the value creation process?

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Discuss how an organization can help organizations manage their external environment.

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The internal systems approach considers corporate culture.

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Organizational theory is primarily concerned with how an organization can outperform its competitors.

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Organizational culture:

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Transaction costs are the costs associated with negotiating, monitoring, and governing exchanges between people.

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You are a consultant to Company X. The CEO insists that effectiveness must be evaluated by an increase in stock price to satisfy stockholders. The marketing vice president insists that the main goal is to reduce the time to bring products to the customer. The manufacturing vice president states that costs should be the key focus of the organization. What approach is each manager using to evaluate organizational effectiveness, and what can this organization do to ensure that effectiveness is properly evaluated?

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Give one example each of the external, internal, and technical approaches to measuring organizational effectiveness.

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Economies of scope are cost savings achieved when an organization manufactures products in large volumes.

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________ means developing modern production facilities using new information technologies that can produce and distribute products in a timely and cost-effective manner.

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When organizational design is poor, ________.

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________ is a means of implementing strategy.

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List four examples of factors or entities impacting the organization's environment.

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________ goals provide legitimacy to the organization.

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Coca-Cola takes pride in a long-term commitment to employees; Pepsi is very political and competitive. These are differences in ________.

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________ is the formal system of task and authority relationships.

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Transaction costs are the costs associated with negotiating, monitoring, and governing exchanges between people.

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The environment in which an organization operates is a major source of uncertainty.

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The process by which organizations move from their present state to some desired future state is called ________.

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