Org. Theory and Design: Chapter 11 (MC)
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Questions and Answers

What is the term used to describe the sequence of stages of growth and development through which organizations may pass?

  • Lifecycle evolution
  • Organizational life cycle (correct)
  • Corporate development cycle
  • Organizational growth cycle

    • Why is organizational birth considered a dangerous stage of the life cycle?

  • Because it lacks a formal structure and is fragile (correct)
  • As it requires significant investment in marketing and advertising
  • Because it often faces resistance from competitors
  • Due to the high costs associated with establishing a new organization

    • What is one of the dangers associated with being the first to operate in a new environment?

  • Lack of access to venture capital funding
  • Liability of newness (correct)
  • High competition from existing organizations
  • Inability to attract skilled employees

    • Why does a new organization lack reliability and stability in its value-creation processes during the birth stage?

    <p>Because it lacks a formal structure</p> Signup and view all the answers

    What makes the organizational birth stage dangerous in terms of environmental conditions?

    <p>Hostility from the environment</p> Signup and view all the answers

    What characteristic allows an organization during its birth stage to adapt and continually improve its routines to meet the needs of its environment?

    <p>Flexible and responsive structure</p> Signup and view all the answers

    In Greiner's model of organizational growth, which stage is characterized by the crisis of leadership?

    <p>Stage 1: Growth through creativity</p> Signup and view all the answers

    What is the crisis faced in Stage 2 of Greiner's model of organizational growth?

    <p>Crisis of leadership</p> Signup and view all the answers

    According to Greiner's model, what problem causes a crisis in Stage 3 of organizational growth?

    <p>Crisis of autonomy</p> Signup and view all the answers

    What is the main challenge in Stage 4 of Greiner's model of organizational growth?

    <p>Balancing centralized and decentralized control</p> Signup and view all the answers

    What is emphasized in Stage 5 of Greiner's model of organizational growth?

    <p>Greater spontaneity in management actions through teams</p> Signup and view all the answers

    What stage usually follows continued growth in the life cycle of an organization according to the text?

    <p>Organizational decline</p> Signup and view all the answers

    What is the difference between 'proft' and 'profitability' as mentioned in the text?

    <p>'Profit' is the monetary difference between sales revenues and operating costs, while 'profitability' measures how well resources are used.</p> Signup and view all the answers

    What are the major sources of uncertainty in an organization's environment according to the text?

    <p>Complexity, dynamism, and richness</p> Signup and view all the answers

    What causes inertia within an organization according to the text?

    <p>Risk aversion, desire to maximize rewards, and bureaucratic culture</p> Signup and view all the answers

    'Blinded' is the stage in Weitzel and Jonsson's model of organizational decline where organizations:

    <p>Are unable to recognize threats to their long-term survival.</p> Signup and view all the answers

    'Blinded' is followed by which stage in Weitzel and Jonsson's model of organizational decline?

    <p>Stage where prompt action can reverse decline.</p> Signup and view all the answers

    'Blinded' is characterized by inability to recognize threats due to lack of:

    <p>Monitoring and information systems.</p> Signup and view all the answers

    What is the first step in planning for a new business?

    <p>Identifying an opportunity to develop a new or improved good or service</p> Signup and view all the answers

    According to population ecology theory, what determines the number of organizations in a population?

    <p>The availability of resources in the environment</p> Signup and view all the answers

    What is the difference between a specialist strategy and a generalist strategy?

    <p>Specialists compete for a narrow range of resources, while generalists compete for a broad range</p> Signup and view all the answers

    What gives rise to the four strategies that organizations can pursue according to population ecology model?

    <p>The process of natural selection</p> Signup and view all the answers

    How do organizations gain and strengthen their legitimacy according to institutional theory?

    <p>By imitating the goals, structure, and culture of successful organizations in their population</p> Signup and view all the answers

    What is coercive isomorphism in organizational isomorphism?

    <p>When organizations adopt certain values and norms because they are pressured to by other organizations or by society in general</p> Signup and view all the answers

    What is the process of natural selection in the context of population ecology model?

    <p>The competitive process that ensures the survival of the organizations that best fit with the environment</p> Signup and view all the answers

    What does organizational growth allow an organization to do?

    <p>Increase its division of labor and specialization</p> Signup and view all the answers

    What are r-strategy and K-strategy according to population ecology theory?

    <p>r-strategy is a strategy of entering an environment early, while K-strategy is a strategy of entering a new environment late</p> Signup and view all the answers

    What explains why organizations become more alike according to institutional theory?

    <p>All of the above</p> Signup and view all the answers

    What are disadvantages of organizational isomorphism?

    <p>It results in outdated ways of operating and reduced effectiveness</p> Signup and view all the answers

    In which stage of decline do top managers fail to take prompt wide-ranging action to correct problems?

    <p>Stage 2: Inaction</p> Signup and view all the answers

    At which stage does the organization experience problems despite corrective action being taken by managers?

    <p>Stage 3: Faulty action</p> Signup and view all the answers

    At which stage does an organization face a critical point in its history and the only chance of recovery is a major reorganization?

    <p>Stage 4: Crisis</p> Signup and view all the answers

    At which stage does an organization lose the support of its stakeholders and its access to resources shrivels?

    <p>Stage 5: Dissolution</p> Signup and view all the answers

    Which stage signifies the need for an organization to shrink, downsize, and focus its resources on a narrower range of products and markets?

    <p>Stage 5: Dissolution</p> Signup and view all the answers

    Which stage requires radical top-down changes to an organization's strategy and structure to stop rapid decline?

    <p>Stage 4: Crisis</p> Signup and view all the answers

    During which stage do top managers engage in prompt wide-ranging action to gain access to good information and effective top managers?

    <p>Stage 1: Remedial action</p> Signup and view all the answers

    'At this stage, remedial action to gain access to good information and effective top managers who can react quickly' refers to which stage?

    <p>Stage 1: Remedial action</p> Signup and view all the answers

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