Podcast
Questions and Answers
What happens when organizations begin to exchange more specific goods and services?
What happens when organizations begin to exchange more specific goods and services?
- Transaction costs decrease
- Bureaucratic costs decrease
- Uncertainty decreases
- Transaction costs increase (correct)
In a high-transaction-cost situation, what should an organization choose to manage exchanges?
In a high-transaction-cost situation, what should an organization choose to manage exchanges?
- Long-term contracts (correct)
- Increased uncertainty
- Informal linkage mechanism
- More exchange partners
What are bureaucratic costs considered to be according to the text?
What are bureaucratic costs considered to be according to the text?
- Costs of operating linkage mechanisms (correct)
- Difficult to avoid
- Costs of achieving integration and communication
- External transaction costs
How can transaction cost theory help managers in choosing an interorganizational strategy?
How can transaction cost theory help managers in choosing an interorganizational strategy?
When should an organization use more formal linkage mechanisms to govern its exchanges?
When should an organization use more formal linkage mechanisms to govern its exchanges?
What is the impact of uncertainty on transaction costs?
What is the impact of uncertainty on transaction costs?
What is the process of establishing and controlling the division of labor, or degree of specialization, in the organization?
What is the process of establishing and controlling the division of labor, or degree of specialization, in the organization?
Which of the following is a subunit composed of a group of people who possess similar skills or use the same kind of knowledge, tools, or techniques to perform their jobs?
Which of the following is a subunit composed of a group of people who possess similar skills or use the same kind of knowledge, tools, or techniques to perform their jobs?
What is the process of coordinating various tasks, functions, and divisions so they work together, not at cross purposes?
What is the process of coordinating various tasks, functions, and divisions so they work together, not at cross purposes?
Which mechanism coordinates various organizational roles by differentiating people based on the amount of authority they possess?
Which mechanism coordinates various organizational roles by differentiating people based on the amount of authority they possess?
What refers to the way an organization groups organizational tasks into roles and roles into subunits (functions and divisions)?
What refers to the way an organization groups organizational tasks into roles and roles into subunits (functions and divisions)?
Which type of department is created to coordinate the activities of functions or divisions?
Which type of department is created to coordinate the activities of functions or divisions?
What is the power to hold people accountable for their actions and to make decisions concerning the use of organizational resources?
What is the power to hold people accountable for their actions and to make decisions concerning the use of organizational resources?
What enables an organization to keep its departments in operation?
What enables an organization to keep its departments in operation?
What is a business authorized to sell a company’s products in a certain area, with the right to use its resources in return for a fee or a share of the profits?
What is a business authorized to sell a company’s products in a certain area, with the right to use its resources in return for a fee or a share of the profits?
Which mechanism can be seen as a way to achieve the benefits of a formal linkage mechanism without incurring its costs?
Which mechanism can be seen as a way to achieve the benefits of a formal linkage mechanism without incurring its costs?
What are the building blocks of differentiation?
What are the building blocks of differentiation?
Which function allows an organization to adjust to changes in the environment?
Which function allows an organization to adjust to changes in the environment?
What is the advantage of centralization?
What is the advantage of centralization?
What is the downside of decentralization?
What is the downside of decentralization?
What is mutual adjustment in the context of organizational structures?
What is mutual adjustment in the context of organizational structures?
What is the purpose of formalization in organizational structures?
What is the purpose of formalization in organizational structures?
In what type of organizational structure do specific norms and values develop emphasizing personal competence, expertise, and freedom to act in innovative ways?
In what type of organizational structure do specific norms and values develop emphasizing personal competence, expertise, and freedom to act in innovative ways?
According to the contingency theory, what must an organization do in response to various contingencies?
According to the contingency theory, what must an organization do in response to various contingencies?
What is the purpose of socialization in an organization?
What is the purpose of socialization in an organization?
What is the disadvantage of high formalization in an organization?
What is the disadvantage of high formalization in an organization?
What results when an organization chooses joint specialization, complex integrating mechanisms, decentralization, and mutual adjustment?
What results when an organization chooses joint specialization, complex integrating mechanisms, decentralization, and mutual adjustment?
What is the mechanism designed to induce people to behave in predictable, accountable ways?
What is the mechanism designed to induce people to behave in predictable, accountable ways?
According to Paul Lawrence and Jay Lorsch, what has a direct effect on the extent of differentiation inside an organization?
According to Paul Lawrence and Jay Lorsch, what has a direct effect on the extent of differentiation inside an organization?
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