Chapter 1

Question 1

What is an organization?

Answer 1

A tool people use to coordinate their actions to obtain something they desire or value.(to achive their goals)

Question 2

Explain value-creation model

Answer 2

It takes place at three stages:input, conversuin, output

Question 2

What is an Entreprenuership?

Answer 2

The process by which people recognize the opprotunities and resources to satisfy their needs

Question 2

What is an organizational environment?

Answer 2

Set of forces and conditions the operate beyond organization’s boundries but affect its ability to acquire and use resources to create value.

Question 3

Why do organizations exist?

Answer 3

1.To increase specialziation and division of labour
2.To use large-scale technology
3.To manage organizational nevironment
4.To economize transaction cost
5.To exert power and control

Question 4

What is Economies of scale?

Answer 4

Cost savings that result when goods and services are produced in large volume on automated production lines

Question 5

What is Economies of scope?

Answer 5

Cost savings that result when an organization is able to use underused resources more effectively because they can be shared across several different products or tasks.

Question 6

What is organizational theory?

Answer 6

Study of how organizations function and how they affect and are affected by the environment in which they operate.

Question 7

What is organizational structure?

Answer 7

Is the formal system of task and authority relationships that controls how people coordinate their actions and use resources to achieve organizational goals. TO CONTROL AND INCREASE EFFECTIVENSS OF IT

Question 8

Organizational culture

Answer 8

Set of shared values and norms that controls organizational member’s interactions with each other and with suppliers, customers and other people outside the organization.

Question 9

Organizational design

Answer 9

-Organizational structure and culture are the means the organization uses to achieve its goals.
-Organizational design is about how and why various means are chosen.

Question 10

What is contingency?

Answer 10

An event that might occur and must be planned for

Question 11

Examples of contingency

Answer 11

Changing environment pressure, raising gas prices or entrance of new competitor

Question 12

Core compentences

Answer 12

Managers skills and abilities in value-creation activities.

Question 13

What is strategy?

Answer 13

The specific pattern of decisions and actions that managers take to use core compentences to achieve a competitive advantage and outpreform competitors.

Question 14

Nabroj three most important procceses managers use to asses and measure effectivness

Answer 14

1.Control
2.Innovation
3,Efficiency

Question 15

Describe control

Answer 15

Having control over external environment and having the ability to attract resources and customers.

Question 16

External resource approach

Answer 16

Allows managers to evaluate how effectively an organization manages and controls its external environment. Npr. to influence stakeholders in their favor

Question 17

Technical approcah

Answer 17

Allows managers to evaluate how efficiently an organization can convert some fixed amount of organizational skills and resources into finished goods and service.

Question 18

Official goals

Answer 18

-Guding principles that the organization formally states in its annual report and in other public documents.
-They are meant to legitimize the organization and its activities, to allow it to obtain resources.
-It includes mission

Question 19

What is mission?

Answer 19

It explains why the organization exists and what it should be doing.

Question 20

What are operative goals?

Answer 20

-Specific long- and short-term goals that guide managers and employees as they preform the work of the organization.
-Managers can use to evaluate organizational effectivnes.
-To measure how well they manage the environment