37 Questions
What is the term used to describe the sequence of stages of growth and development through which organizations may pass?
Organizational life cycle
Why is organizational birth considered a dangerous stage of the life cycle?
Because it lacks a formal structure and is fragile
What is one of the dangers associated with being the first to operate in a new environment?
Liability of newness
Why does a new organization lack reliability and stability in its value-creation processes during the birth stage?
Because it lacks a formal structure
What makes the organizational birth stage dangerous in terms of environmental conditions?
Hostility from the environment
What characteristic allows an organization during its birth stage to adapt and continually improve its routines to meet the needs of its environment?
Flexible and responsive structure
In Greiner's model of organizational growth, which stage is characterized by the crisis of leadership?
Stage 1: Growth through creativity
What is the crisis faced in Stage 2 of Greiner's model of organizational growth?
Crisis of leadership
According to Greiner's model, what problem causes a crisis in Stage 3 of organizational growth?
Crisis of autonomy
What is the main challenge in Stage 4 of Greiner's model of organizational growth?
Balancing centralized and decentralized control
What is emphasized in Stage 5 of Greiner's model of organizational growth?
Greater spontaneity in management actions through teams
What stage usually follows continued growth in the life cycle of an organization according to the text?
Organizational decline
What is the difference between 'proft' and 'profitability' as mentioned in the text?
'Profit' is the monetary difference between sales revenues and operating costs, while 'profitability' measures how well resources are used.
What are the major sources of uncertainty in an organization's environment according to the text?
Complexity, dynamism, and richness
What causes inertia within an organization according to the text?
Risk aversion, desire to maximize rewards, and bureaucratic culture
'Blinded' is the stage in Weitzel and Jonsson's model of organizational decline where organizations:
Are unable to recognize threats to their long-term survival.
'Blinded' is followed by which stage in Weitzel and Jonsson's model of organizational decline?
Stage where prompt action can reverse decline.
'Blinded' is characterized by inability to recognize threats due to lack of:
Monitoring and information systems.
What is the first step in planning for a new business?
Identifying an opportunity to develop a new or improved good or service
According to population ecology theory, what determines the number of organizations in a population?
The availability of resources in the environment
What is the difference between a specialist strategy and a generalist strategy?
Specialists compete for a narrow range of resources, while generalists compete for a broad range
What gives rise to the four strategies that organizations can pursue according to population ecology model?
The process of natural selection
How do organizations gain and strengthen their legitimacy according to institutional theory?
By imitating the goals, structure, and culture of successful organizations in their population
What is coercive isomorphism in organizational isomorphism?
When organizations adopt certain values and norms because they are pressured to by other organizations or by society in general
What is the process of natural selection in the context of population ecology model?
The competitive process that ensures the survival of the organizations that best fit with the environment
What does organizational growth allow an organization to do?
Increase its division of labor and specialization
What are r-strategy and K-strategy according to population ecology theory?
r-strategy is a strategy of entering an environment early, while K-strategy is a strategy of entering a new environment late
What explains why organizations become more alike according to institutional theory?
All of the above
What are disadvantages of organizational isomorphism?
It results in outdated ways of operating and reduced effectiveness
In which stage of decline do top managers fail to take prompt wide-ranging action to correct problems?
Stage 2: Inaction
At which stage does the organization experience problems despite corrective action being taken by managers?
Stage 3: Faulty action
At which stage does an organization face a critical point in its history and the only chance of recovery is a major reorganization?
Stage 4: Crisis
At which stage does an organization lose the support of its stakeholders and its access to resources shrivels?
Stage 5: Dissolution
Which stage signifies the need for an organization to shrink, downsize, and focus its resources on a narrower range of products and markets?
Stage 5: Dissolution
Which stage requires radical top-down changes to an organization's strategy and structure to stop rapid decline?
Stage 4: Crisis
During which stage do top managers engage in prompt wide-ranging action to gain access to good information and effective top managers?
Stage 1: Remedial action
'At this stage, remedial action to gain access to good information and effective top managers who can react quickly' refers to which stage?
Stage 1: Remedial action
Explore Greiner's model of organizational growth focusing on the first stage, where entrepreneurs develop skills and abilities to create and introduce new products for new markets.
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