Org. Theory and Design: Chapter 1 (MC)

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What is the primary purpose of an organization according to the text?

To invent new technologies

To maximize profit

To transform human needs

To coordinate human actions (correct)

What triggers the creation of new organizations according to the text?

Technological advancements (correct)

Environmental degradation

Lack of resources

Discovery of new needs

What term describes the process of recognizing opportunities to satisfy needs and using resources to meet those needs?

Entrepreneurship (correct)

Innovation

Quality management

Resource allocation

In which stages does value creation take place in an organization, as depicted in figure 1.1?

Input, conversion, output (C) Signup and view all the answers

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 (A) Signup and view all the answers

Which of the following is NOT included in the input stage of value creation in an organization?

Customer feedback (A) Signup and view all the answers

What does the organizational structure control?

The formal system of task and authority relationships (D) Signup and view all the answers

What are the indicators used by managers to measure the effectiveness of their control over the external environment?

Stock price, ROI, profitability (A) Signup and view all the answers

What is the purpose of using large-scale technology in organizations?

To take advantage of economies of scale and scope (A) Signup and view all the answers

What does organizational theory study?

How organizations function and how they affect the environment (B) Signup and view all the answers

What is the purpose of managing the organizational environment?

To manage complex environments beyond the abilities of individuals (A) Signup and view all the answers

What determines how effectively managers can coordinate and motivate workers?

Organizational culture (B) Signup and view all the answers

What is shaped by people, ethics, and organizational structure?

Organizational culture (B) Signup and view all the answers

What allows a company to develop a strategy?

Core competences (D) Signup and view all the answers

What is the process by which managers select and manage aspects of structure and culture?

Organizational design (B) Signup and view all the answers

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 (C) Signup and view all the answers

Why do organizations use a formal system of task and authority relationships?

To ensure that people coordinate their actions to achieve organizational goals (B) Signup and view all the answers

What is considered a source of sustained competitive advantage for organizations?

Core competences (A) Signup and view all the answers