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Statistics > Managing Orgs > Flashcards

Managing Orgs Flashcards

1
Q

T/F: Leaders within an organization should help employees connect with the larger purposes of the organization.

A

True

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2
Q

In the end, governance is all about:

A

Effective leadership

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3
Q

T/F: Clarity of purpose is an essential element of organizational design

A

True

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4
Q

T/F: Governance is about deciding what the purpose of the organization should be, then deciding who is going to have power, and how we can hold people accountable for pursuing our intended purpose.

A

True

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5
Q

T/F: In relation to the purpose of a business, we sometimes see debates between those who believe that the purpose of the firm is to pursue profit and those who claim that firms have a social responsibility.

A

True

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6
Q

Who said, “There is one and only one social responsibility of a business- to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.”

A

Milton Friedman

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7
Q

T/F: The shareholder value perspective suggests that a business should be run to maximize returns to shareholders

A

True

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8
Q

The stakeholder perspective has been criticized for:

A

Ambiguity regarding how to balance the demands of different constituencies

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9
Q

The stakeholder perspective recognizes the complexities of the many players with an interest in the firm and has been said to:

A

Facilitate a long-term focus among managers

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10
Q

T/F: When an employee of an organization comes to work just for a paycheck or out of a sense of duty, they are likely to become disengaged, lack motivation, and have lower levels of commitment to the organization

A

True

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11
Q

T/F: Successful organizations help people to connect their work to a purpose beyond their economic self-interest

A

True

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12
Q

T/F: Satisfying the needs of customers by providing something desirable and of value can help employees connect to a larger purpose beyond monetary gain

A

True

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13
Q

T/F: When employees feel like their position in the organization makes a difference and has purpose beyond monetary gain, their job becomes more meaningful and motivating.

A

True

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14
Q

T/F: Mission statements are primarily aimed at the organization’s top management

A

FALSE- they are for all employees

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15
Q

T/F: A good mission statement always identifies the organization’s purpose, products and services, and customers

A

FALSE

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16
Q

T/F: It is generally a good idea to align your mission statement with your competitors’

A

False- you want to differentiate

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17
Q

T/F: A mission statement will have the greatest impact when top managers commit to lead and live by it

A

True

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18
Q

T/F: Its imperative that mission statements are developed by top management

A

False - best developed by individuals throughout

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19
Q

From a rational system perspective, one of the most influential theories of governance in organizations is known as

A

Agency Theory

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20
Q

T/F: According to agency theory, the principals in the principal-agent relationship are the owners of the firm

A

True

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21
Q

The responsibility of a board of directors is to:

A

Compensate, evaluate, hire and fire management

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22
Q

The interests of shareholders and managers may not align because

A

Managers pursue projects that don’t maximize returns, managers may be too risk averse, managers don’t work hard enough, shareholders want to see returns over a different time horizon

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23
Q

T/F: Pluralistic ignorance occurs when individuals within groups do not recognize that others share their concerns

A

True - group members who have private concerns will tend to underestimate the concerns of other group members

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24
Q

A natural system lens view of corporate governance tends to focus on:

A

The individuals involved in corporate governance and their interactions

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25
Q

T/F: Research shows a strong relationship between implementing a rational view structure of corporate governance and the firm’s financial performance

A

False

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26
Q

T/F: A natural system lens view of corporate governance tends to emphasize the importance of group dynamics among board members

A

True

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27
Q

Efficiency or effectiveness: maximizing results without wasting time or resources

A

Efficiency

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28
Q

T/F: From a natural system perspective, success can be measured by financial metrics and outcomes related to quality

A

FALSE- natural system is focused on people. These indicators are for rational system

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29
Q

Governance is fundamentally about which two things

A

purpose and control

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30
Q

What is easier to measure- a lagging or leading indicator?

A

Lagging indicators

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31
Q

What do “theories” do?

A

Help us frame the way we think about organizations and ultimately the actions that we take. Theories -> principles -> Applications

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32
Q

From a rational system perspective, organizational structure:

A

Is primarily focused on formal relationships

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33
Q

T/F: Contingency theory suggest that if management is trying to build a culture of innovation, they should reduce their reliance on bureaucracy and use structures that encourage the free flow of information among groups and individuals

A

True

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34
Q

T/F: Contingency theory emphasizes that organizational structure has a direct impact on organizational performance

A

FALSE- structure alone won’t lead to increased performance. it’s the fit of the structure and the organization’s context that could help improve performance

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35
Q

T/F: The size of the organization is irrelevant to choosing the best organizational structure

A

FALSE

36
Q

T/F: Within a functional structure, groups are formed around people engaged in similar activities

A

True

37
Q

T/F: Functional structures are typically more efficient and can reduce the duplication of roles in the organization

A

True

38
Q

Functional structures are most likely to be seen in what kinds of organizations?

A

Small/med, operating in stable environment, firms that value outcomes like efficiency and consistency, organizations with limited number of product offerings

39
Q

T/F: Within a divisional structure, firms create business units that operate much like separate firms

A

True

40
Q

T/F: Divisional structures can include groupings around products and services, different geographic regions, and different types of customers

A

True

41
Q

Divisional structures would not be appropriate for which kind of firm?

A

Firms with a low cost strategy (2.4)

42
Q

T/F: Divisional structures can foster competition for resources between different business units in the same company

A

True

43
Q

T/F: One of the structures that can be incorporated into a matrix structure is the project-based organization

A

True

44
Q

T/F: Heavy conflict resolution demands are a disadvantage of the matrix structure

A

True

45
Q

T/F: The matrix structure makes sense to consider when companies face competing pressures on two broad dimensions

A

True

46
Q

T/F: A main advantage of the matrix arises from having two different perspectives (project and function), each having strong input into decisions

A

True

47
Q

T/F: A network structure tends to suit an organization that outsources tasks not in their area of expertise

A

True

48
Q

T/F: A network structure can help to promote flexibility and reduced costs in organizations

A

True

49
Q

T/F: A hybrid structure is a combination of two or more structures

A

True

50
Q

The use of team-based structures designed around specific projects have increased in popularity because such a structure

A

Allows for an organization to be more nimble and adaptable

51
Q

What is NOT consistent with contingency theory?

A

The external environment does not impact decisions about organizational structure

52
Q

T/F: Functional structures are typically more efficient and can reduce the duplication of roles in the organization

A

True

53
Q

T/F: A key intended benefit of the matrix structure is to capture the benefits from multiple organizational structures

A

True

54
Q

T/F: A network structure that outsources key organizational tasks tends to enhance employee loyalty and allows for more organizational control

A

False

55
Q

What are some common challenges associated with organizational growth?

A
  1. inability to quickly respond to the environment, 2. difficulty maintaining culture, 3. overstretched competencies.

NOT lack of open system perspective

56
Q

T/F: Relying on competition between divisions in an organization is an example of bureaucratic control

A

False

57
Q

What is NOT a feature of bureaucracy?

A

Integration of the person and the role

58
Q

Match up the three types of control mechanisms with the 3 lenses

A
  1. Rational = bureaucratic
  2. Natural = clan
  3. Open = market
59
Q

T/F: Organizational growth typically makes it more difficult to ensure that things are well-coordinated and controlled throughout the organization

A

True

60
Q

T/F: Achieving efficiency is the most important goal a manager must achieve when designing an organization

A

False- effectiveness is the most important

61
Q

T/F: Mechanistic organizations tend to have jobs that are clearly defined and highly specialized

A

True- bc standardization is a core principle of mechanistic organizations

62
Q

T/F: Hierarchical decision-making is relatively more important in organic than in mechanistic designs

A

False- hierarchical decision making is central to a mechanistic design

63
Q

T/F: in organic designs, decision-making processes tend to be centralized and then augmented through cross-functional teams and task forces

A

False- organic design decision-making is decentralized, though task forces and cross-functional teams are often utilized

64
Q

T/F: The life cycle model consists of four stages: entrepreneurial, collectivity, formalization and elaboration

A

True

65
Q

What is a challenge existing at the collectivity stage of the organizational life cycle?

A

The need to delegate responsibility

66
Q

T/F: The implementation of formal structures, policies, and procedures is associated with the elaboration stage of the organizational life cycle

A

FALSE- associated with the 3rd stage of formalization

67
Q

T/F: The need for developing a clear vision and establishing culture is associated with the entrepreneurial stage of the organizational life cylce

A

True

68
Q

What does NOT happen when an organization relies on hierarchy?

A

Managers are not encouraged to coordinate horizontally across units; can try to use direct contact method to combat

69
Q

T/F: Direct contact across units tends to work better for sharing information than for influencing decisions

A

True

70
Q

What are some approaches for using integrative mechanisms across organizational units?

A

Committees representing different units, cross-functional teams, task forces, matrix structure

71
Q

T/F: In organic designs, decision-making processes tend to be centralized and then augmented through cross-functional teams and task forces

A

FALSE

72
Q

Which factor in the external environment is most likely to have a direct impact on the functioning of an organization?

A

Customers

73
Q

T/F: PEST analysis may be used as a tool to understand the general environment

A

True. PEST stands for Political, economic, sociocultural, and technological

74
Q

As uncertainty in the environment increases, firms tend to respond how?

A

Add boundary-spanning roles, create specialized departments, collect data from the external environment. THEY DO NOT implement mechanistic structures

75
Q

T/F: A main assumption of resource dependence theory is that organizations typically do not control every resource

A

True

76
Q

What are the broad strategies that organizations use to deal with resource dependence?

A
  1. Create linkages with other organizations, 2. attempt to control the environment directly
77
Q

T/F: Exploitation is defined as “getting better at the things the firm already knows how to do by refining and extending existing competencies”

A

True

78
Q

T/F: Exploratory activities are more likely to lead to breakthrough products or ideas

A

True

79
Q

T/F: Competency traps occur when firms focus too much on exploration while neglecting exploitation

A

FALSE

80
Q

T/F: Most changes in technology can be classified as disruptive

A

FALSE

81
Q

What does an ambidextrous organization allow?

A

separate processes and incentives in the disruptive unit, growth in the disruptive unit, exploration of new opportunities to better the firm’s chance of survival, a way to overcome the innovators dilemma

82
Q

T/F: Uncertainty in an organizations external environment is influenced by its complexity and stability

A

True

83
Q

Firm competencies are supported by:

A

Structures, processes, people, systems. NOT CONVENIENCE

84
Q

T/F: Managers with a long-term focus are more likely to fall into a competency trap

A

False

85
Q

Sustaining innovators refer to the improvements in the existing products and services made by the firm. These innovations are essentially driven by

A

Customer demand

86
Q

T/F: One of the ways a firm can avoid being disrupted is by acquiring potentially disruptive firms

A

True

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