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 (C)</p> Signup and view all the answers

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

<p>Hostility from the environment (D)</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 (C)</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 (B)</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 (C)</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 (D)</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 (C)</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 (A)</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 (A)</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. (B)</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 (B)</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 (A)</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. (B)</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. (A)</p> Signup and view all the answers

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

<p>Monitoring and information systems. (B)</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 (C)</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 (A)</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 (C)</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 (B)</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 (B)</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 (D)</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 (C)</p> Signup and view all the answers

What does organizational growth allow an organization to do?

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

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

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

What are disadvantages of organizational isomorphism?

<p>It results in outdated ways of operating and reduced effectiveness (A)</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 (B)</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 (C)</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 (C)</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 (D)</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 (D)</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 (C)</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 (D)</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 (A)</p> Signup and view all the answers

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