Org. Theory and Design: Chapter 1 (MC)
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Questions and Answers

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?

    <p>Input, conversion, output</p> 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?

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

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

    <p>Customer feedback</p> Signup and view all the answers

    What does the organizational structure control?

    <p>The formal system of task and authority relationships</p> Signup and view all the answers

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

    <p>Stock price, ROI, profitability</p> Signup and view all the answers

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

    <p>To take advantage of economies of scale and scope</p> Signup and view all the answers

    What does organizational theory study?

    <p>How organizations function and how they affect the environment</p> Signup and view all the answers

    What is the purpose of managing the organizational environment?

    <p>To manage complex environments beyond the abilities of individuals</p> Signup and view all the answers

    What determines how effectively managers can coordinate and motivate workers?

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

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

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

    What allows a company to develop a strategy?

    <p>Core competences</p> Signup and view all the answers

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

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

    What determines how effectively an organization functions and operates according to the internal system approach?

    <p>The structure and culture that foster adaptability and quick responses to changing conditions in the environment</p> Signup and view all the answers

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

    <p>To ensure that people coordinate their actions to achieve organizational goals</p> Signup and view all the answers

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

    <p>Core competences</p> Signup and view all the answers

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