18 Questions
What is the primary purpose of an organization according to the text?
To coordinate human actions
What triggers the creation of new organizations according to the text?
Technological advancements
What term describes the process of recognizing opportunities to satisfy needs and using resources to meet those needs?
Entrepreneurship
In which stages does value creation take place in an organization, as depicted in figure 1.1?
Input, conversion, output
What is defined as the set of forces and conditions that operate beyond an organization's boundaries but affect its ability to acquire and use resources?
Organizational environment
Which of the following is NOT included in the input stage of value creation in an organization?
Customer feedback
What does the organizational structure control?
The formal system of task and authority relationships
What are the indicators used by managers to measure the effectiveness of their control over the external environment?
Stock price, ROI, profitability
What is the purpose of using large-scale technology in organizations?
To take advantage of economies of scale and scope
What does organizational theory study?
How organizations function and how they affect the environment
What is the purpose of managing the organizational environment?
To manage complex environments beyond the abilities of individuals
What determines how effectively managers can coordinate and motivate workers?
Organizational culture
What is shaped by people, ethics, and organizational structure?
Organizational culture
What allows a company to develop a strategy?
Core competences
What is the process by which managers select and manage aspects of structure and culture?
Organizational design
What determines how effectively an organization functions and operates according to the internal system approach?
The structure and culture that foster adaptability and quick responses to changing conditions in the environment
Why do organizations use a formal system of task and authority relationships?
To ensure that people coordinate their actions to achieve organizational goals
What is considered a source of sustained competitive advantage for organizations?
Core competences
Test your understanding of the first section of 'Organizational Theory, Design and Change' which introduces the concept of organizations and their effectiveness. Explore the definition of an organization and its role in satisfying human needs and goals.
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