BAM 532 California Coast University Organizational Theory Final Exam Multiple Choice Questions (Enter your answers on the enclosed answer sheet) 1. At Micr

BAM 532 California Coast University Organizational Theory Final Exam Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1. At Microsoft, to control scientists and make use of their talents, Bill Gates put them in
teams. This is an example of a change in an organization’s ________.
a. culture
b. behavior
c. environment
d. structure
2. Which of the following definitions best describes a contingency?
a. It is an event which occurred in the past which resulted in heavy profits for the company.
b. It is an event due to which a company identifies its competitive advantage.
c. It is an event that might occur and must be planned for.
d. It is an event which occurred in the past, resulting in heavy loss for the company.
3. Which of the following are contingencies that cause the organization to face uncertainty?
a. organizational design and organizational processes
b. changing technology and organizational design
c. global environment and changing technology
d. organizational structure and global environment
4. Competitive advantage is the ability of a company to ________.
a. identify changes in consumer tastes and preferences
b. outperform another company because its managers are able to create more value from the
resources at their disposal
c. develop a flexible organization structure that can quickly respond to changes in the
environment
d. achieve economies of scale by manufacturing a product in large volumes
5. Which of the following terms refers to the specific pattern of decisions and actions managers
take to use core competencies to achieve a competitive advantage and outperform
competitors?
a. strategy
b. value chain
c. organizational design
d. histogram
7
Final Examination
BAM 532 Organizational Theory
6. The quality of organizational decision making is a function of the ________.
a. organizational core competencies
b. environment of the organization
c. diversity of the viewpoints that get considered
d. value chain followed by the organization
7. An organization’s ________ determine how effectively managers are able to coordinate and
motivate workers.
a. environmental factors
b. core competencies
c. structure and culture
d. competitive advantages
8. Which of the following managers has a staff role?
a. R&D manager
b. production manager
c. divisional manager
d. assembly line supervisor
9. A(n) ________ problem is a problem in determining managerial accountability that arises
when delegating authority to managers.
a. self-dealing
b. organizational contract
c. line of command
d. agency
10. Which of the following is one of the two conditions that lead to a moral hazard problem?
a. the principal possesses more information than the agent
b. the agent has an incentive to pursue goals and objectives different from the principal’s
c. the principal acts in his own best interest, as opposed to the interests of the other
stakeholders
d. the agent is given the authority to allocate scarce organizational resources
11. Which of the following statements is true regarding a divisional manager?
a. A divisional manager is a part of the top-management team.
b. Divisional managers act as outside directors for the company.
c. A divisional manager is not a corporate manager.
d. A marketing manager is an example of a divisional manager.
8
Final Examination
BAM 532 Organizational Theory
12. “Self-dealing” is defined as ________.
a. a manager acting in his own best interest, as opposed to the interests of the other
stakeholders
b. a cash bonus distributed privately amongst the top-management team
c. a manager promoting family members at the expense of others
d. a form of control that aligns the interests of principal and agent so both parties have the
incentive to work together to maximize organizational effectiveness
13. Which of the following is generally used to solve agency problems?
a. self-dealing
b. stock-based compensation schemes
c. a highly centralized organization structure
d. a matrix organization structure
14. As per the ________ Act, CEOs, COOs, and the chief financial officer are required to sign off
on their company’s balance statements so they can be held personally and legally liable for
accidental or deliberate mistakes found later.
a. Sarbanes-Oxley
b. Taft-Hartley
c. Walsh-Healey
d. Davis-Bacon
15. A manager decides to locate a manufacturing plant in a location that maximizes the overall
benefits to the stakeholders. Which model of ethics is being used by the manager?
a. justice
b. moral rights
c. utilitarian
d. mutual association
16. Which of the following terms refers to the amount of resources available to support an
organization’s domain?
a. environmental dynamism
b. environmental complexity
c. environmental richness
d. environmental naturalness
9
Final Examination
BAM 532 Organizational Theory
17. Which of the following is most likely to be a reason for poor environment?
a. Resources are plentiful.
b. Environmental uncertainty is low.
c. Competition is high.
d. The country is wealthy.
18. Which of the following is most likely to increase environmental uncertainty?
a. Increase in the richness of the environment.
b. Decrease in the dynamism of the environment.
c. Decrease in the depth of the environment.
d. Increase in the complexity of the environment.
19. A poor environment is most likely to lead to ________.
a. a decrease in the level of environmental complexity
b. an increase in the level of environmental stability
c. an increase in the level of profit
d. an increase in the level of environmental uncertainty
20. The government attempted to control prescription drug prices during the 1990s. What would
have been the effect of this change on this industry?
a. It would have increased competition, thereby reducing the complexity of the
environment.
b. It would have made the environment more complex due to the reduction in profits.
c. It would have increased the demand for drugs, thereby making the environment less
dynamic.
d. It would have enlarged the domain of this industry.
21. According to the ________, an organization should minimize its dependence on other
organizations for resources and find ways of influencing them to make resources available.
a. organizational theory
b. resource dependence theory
c. contingency theory
d. group theory
10
Final Examination
BAM 532 Organizational Theory
22. Which of the following theories states that an organization must respond to the needs and
demands of other organizations in its environment?
a. contingency theory
b. the enacted environment concept
c. resource dependence theory
d. transaction cost theory
23. As per the resource dependence theory, in which of the following situations is an organization
said to be weak?
a. The organization is highly centralized.
b. There are only a few suppliers of a resource needed by the organization.
c. The organization uses a divisional organizational structure.
d. The organization manufactures a wide variety of products.
24. Which of the following terms refers to the number of subordinates a manager directly
supervises?
a. span of control
b. chain of authority
c. degree of standardization
d. level of centralization
25. Which of the following is one of the ways in which an organization can avoid becoming too
tall yet maintain effective control of its workforce?
a. Encouraging upward communication but discouraging downward communication.
b. Conducting 360 degrees appraisal of the employees.
c. Increasing its managers’ span of control.
d. Increasing the number of levels in the hierarchy.
26. Which of the following is most likely to happen if the span of control is too wide?
a. The speed of decision making will increase.
b. Subordinates will shirk responsibility.
c. The number of managers at the higher levels in the hierarchy will be more than the
number of managers at the lower levels in the hierarchy.
d. The division of labor will be too low. BAM 532
Text:
Organizational Theory, Design, and Change
7th Edition, 2013
ISBN-13: 9780132729949
Author(s):
Gareth R. Jones
Publisher:
Pearson
925 North Spurgeon Street, Santa Ana, CA 92701
Phone: 714-547-9625 Fax: 714-547-5777
www.calcoast.edu
rev. 11/16
Final Examination
Organizational Theory
All rights reserved. No part of this may be reproduced or transmitted in any form or by any
means, electronic or mechanical, including photocopying, recording or by any information
storage and retrieval system without written permission, except for the inclusion of brief
quotation in review.
Copyright ©2020 by California Coast University
BAM 532 Organizational Theory
Final Examination
Instructions
About the Final Examination
After you have successfully completed all of the unit examinations
and writing assignments, it will be time for you to take the final
examination.
California Coast University requires that all students complete all
final examinations—with the exception of general elective courses—
under the supervision of a proctor.
Proctors will have the following responsibilities:
•
•
•
•
•
Ensure that all final examination materials are kept secure and
confidential.
Ensure that the student completes the examination without any
outside assistance of any kind other than the course textbook,
notes and other study materials.
Verify the student’s identification based on a government-issued
photo ID. Proctors will need to verify the student’s name and date
of birth.
Sign the final examination answer sheet (unsigned answer sheets
will not be graded).
Return the signed and completed answer sheet to California
Coast University for grading and evaluation via the student portal,
mail, or fax.
General Elective Courses:
If this is a general elective course, you will not need to complete the
final examination under the supervision of a proctor.
Submitting Your Final Examination
Final Examinations can be submitted online through the Coast
Connection student portal, by mail, or by fax.
Submitting Your Examination Through the Student Portal
For online submissions, once you have logged into the student portal,
click on My Academic Plan and select the course you are working on
to complete the final examination. You must input the unique
password that was sent to your proctor in order to unlock your final
examination questions. Remember to keep a copy of your answers for
your own personal records.
3
BAM 532 Organizational Theory
Final Examination
Instructions
Submitting Your Examination by Mail
You may send your completed and signed final examination answer
sheet to the following mailing address:
California Coast University
Testing Department
925 N. Spurgeon Street
Santa Ana, California 92701
Submitting Your Examination by Fax
You can also fax your completed and signed final examinations to the
Grading Department at (714) 547-1451. When faxing exams, please
do not resize your fax.
Challenging a Test Item
We make every effort to ensure that all examination items are fair and
free of errors. However, problems sometimes arise in the selection
or interpretation of test items. For example, you might argue that
two alternatives could be correct, based on the materials you read,
or that the correct answer is not among the choices. Occasionally, a
typographical error might make a question difficult to answer.
If you encounter a problem with a test item while taking your exam,
you may “challenge” it by providing a brief explanation along with the
page number(s) from the textbook in which the correct answer can be
found. Likewise, you may also submit a test item challenge after your
exam has been graded if you feel a test item was scored incorrectly.
Students may submit up to four test item challenges.
Submitting Your Test Item Challenges Through the Student Portal
Please log into the Coast Connection student portal for specific
instructions. You will submit your test item challenges directly
through the student portal.
Submitting Your Test Item Challenges by Mail
4
•
For each test question you wish to challenge, fill in option “F” on
the answer sheet for that question.
•
On a separate sheet of paper, indicate your name and student ID
number, identify the examination you are working on (i.e., Unit
Exam 1, 2, 3, etc.), and the specific question number you are
challenging.
•
Write out the question and its given choices and explain why you
are “challenging” the test item.
BAM 532 Organizational Theory
Final Examination
Instructions
•
Provide a page reference from the textbook to support your
answer. If you do not provide a page reference, we may not be
able to give you credit.
•
Mail your multiple choice answer sheet and test item challenge
documents to the Testing Department.
The information you provide is important to us. It will help us further
validate and correct any possible errors in the testing materials.
If you follow the Test Item Challenge procedure, your challenges will
be reviewed and if correct, you will be given credit. You should allow
an additional week for the review and scoring of your examination.
Examination Grading
Your grade on the final examination will be determined by the
percentage of correct answers.
A
B
C
D
F
=
=
=
=
=
90% – 100% correct
80% – 89% correct
70% – 79% correct
60% – 69% correct
59% and below correct
Be sure to keep a copy of all work you submit to the university.
5
BAM 532 Organizational Theory
Final Examination
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1. At Microsoft, to control scientists and make use of their talents, Bill Gates put them in
teams. This is an example of a change in an organization’s ________.
a.
b.
c.
d.
culture
behavior
environment
structure
2. Which of the following definitions best describes a contingency?
a.
b.
c.
d.
It
It
It
It
is
is
is
is
an
an
an
an
event
event
event
event
which occurred in the past which resulted in heavy profits for the company.
due to which a company identifies its competitive advantage.
that might occur and must be planned for.
which occurred in the past, resulting in heavy loss for the company.
3. Which of the following are contingencies that cause the organization to face uncertainty?
a.
b.
c.
d.
organizational design and organizational processes
changing technology and organizational design
global environment and changing technology
organizational structure and global environment
4. Competitive advantage is the ability of a company to ________.
a. identify changes in consumer tastes and preferences
b. outperform another company because its managers are able to create more value from the
resources at their disposal
c. develop a flexible organization structure that can quickly respond to changes in the
environment
d. achieve economies of scale by manufacturing a product in large volumes
5. Which of the following terms refers to the specific pattern of decisions and actions managers
take to use core competencies to achieve a competitive advantage and outperform
competitors?
a.
b.
c.
d.
6
strategy
value chain
organizational design
histogram
BAM 532 Organizational Theory
Final Examination
6. The quality of organizational decision making is a function of the ________.
a.
b.
c.
d.
organizational core competencies
environment of the organization
diversity of the viewpoints that get considered
value chain followed by the organization
7. An organization’s ________ determine how effectively managers are able to coordinate and
motivate workers.
a.
b.
c.
d.
environmental factors
core competencies
structure and culture
competitive advantages
8. Which of the following managers has a staff role?
a.
b.
c.
d.
R&D manager
production manager
divisional manager
assembly line supervisor
9. A(n) ________ problem is a problem in determining managerial accountability that arises
when delegating authority to managers.
a.
b.
c.
d.
self-dealing
organizational contract
line of command
agency
10. Which of the following is one of the two conditions that lead to a moral hazard problem?
a. the principal possesses more information than the agent
b. the agent has an incentive to pursue goals and objectives different from the principal’s
c. the principal acts in his own best interest, as opposed to the interests of the other
stakeholders
d. the agent is given the authority to allocate scarce organizational resources
11. Which of the following statements is true regarding a divisional manager?
a.
b.
c.
d.
7
A divisional manager is a part of the top-management team.
Divisional managers act as outside directors for the company.
A divisional manager is not a corporate manager.
A marketing manager is an example of a divisional manager.
BAM 532 Organizational Theory
Final Examination
12. “Self-dealing” is defined as ________.
a. a manager acting in his own best interest, as opposed to the interests of the other
stakeholders
b. a cash bonus distributed privately amongst the top-management team
c. a manager promoting family members at the expense of others
d. a form of control that aligns the interests of principal and agent so both parties have the
incentive to work together to maximize organizational effectiveness
13. Which of the following is generally used to solve agency problems?
a.
b.
c.
d.
self-dealing
stock-based compensation schemes
a highly centralized organization structure
a matrix organization structure
14. As per the ________ Act, CEOs, COOs, and the chief financial officer are required to sign off
on their company’s balance statements so they can be held personally and legally liable for
accidental or deliberate mistakes found later.
a.
b.
c.
d.
Sarbanes-Oxley
Taft-Hartley
Walsh-Healey
Davis-Bacon
15. A manager decides to locate a manufacturing plant in a location that maximizes the overall
benefits to the stakeholders. Which model of ethics is being used by the manager?
a.
b.
c.
d.
justice
moral rights
utilitarian
mutual association
16. Which of the following terms refers to the amount of resources available to support an
organization’s domain?
a.
b.
c.
d.
8
environmental
environmental
environmental
environmental
dynamism
complexity
richness
naturalness
BAM 532 Organizational Theory
Final Examination
17. Which of the following is most likely to be a reason for poor environment?
a.
b.
c.
d.
Resources are plentiful.
Environmental uncertainty is low.
Competition is high.
The country is wealthy.
18. Which of the following is most likely to increase environmental uncertainty?
a.
b.
c.
d.
Increase in the richness of the environment.
Decrease in the dynamism of the environment.
Decrease in the depth of the environment.
Increase in the complexity of the environment.
19. A poor environment is most likely to lead to ________.
a.
b.
c.
d.
a decrease in the level of environmental complexity
an increase in the level of environmental stability
an increase in the level of profit
an increase in the level of environmental uncertainty
20. The government attempted to control prescription drug prices during the 1990s. What would
have been the effect of this change on this industry?
a. It would have
environment.
b. It would have
c. It would have
dynamic.
d. It would have
increased competition, thereby reducing the complexity of the
made the environment more complex due to the reduction in profits.
increased the demand for drugs, thereby making the environment less
enlarged the domain of this industry.
21. According to the ________, an organization should minimize its dependence on other
organizations for resources and find ways of influencing them to make resources available.
a.
b.
c.
d.
9
organizational theory
resource dependence theory
contingency theory
group theory
BAM 532 Organizational Theory
Final Examination
22. Which of the following theories states that an organization must respond to the needs and
demands of other organizations in its environment?
a.
b.
c.
d.
contingency theory
the enacted environment concept
resource dependence theory
transaction cost theory
23. As per the resource dependence theory, in which of the following situations is an organization
said to be weak?
a.
b.
c.
d.
The organization is highly centralized.
There are only a few suppliers of a resource needed by the organization.
The organization uses a divisional organizational structure.
The organization manufactures a wide variety of products.
24. Which of the following terms refers to the number of subordinates a manager directly
supervises?
a.
b.
c.
d.
span of control
chain of authority
degree of standardization
level of centralization
25. Which of the following is one of the ways in which an organization can avoid becoming too
tall yet maintain effective control of its workforce?
a.
b.
c.
d.
Encouraging upward communication but discouraging downward communication.
Conducting 360 degrees appraisal of the employees.
Increasing its managers’ span of control.
Increasing the number of levels in the hierarchy.
26. Which of the following is most likely to happen if the span of control is too wide?
a. The speed of decision making will increase.
b. Subordinates will shirk responsibility.
c. The number of managers at the higher levels in the hierarchy will be more than the
number of managers at the lower levels in the hierarchy.
d. The division of labor will be too low.
10
BAM 532 Organizational Theory
Final Examination
27. It is more difficult to increase the span of control when ________.
a.
b.
c.
d.
tasks are routine or similar
tasks are highly interrelated
the structure of the organization is highly decentralized
the organization operates in a stable environment
28. Under which of the following situations is it easier to widen the span of control?
a.
b.
c.
d.
The
The
The
The
tasks
tasks
tasks
tasks
are routine.
are complex.
are highly interrelated.
need to be performed by highly skilled professionals.
29. A manager associated with which of the following entities is most likely to have the widest
span of control?
a.
b.
c.
d.
A plant that produces hammers.
A science lab that does complex genetic research.
A plant that manufactures airplanes.
An R&D department in a drug manufacturing company.
30. When there are limits on the usefulness of direct, personal supervision by managers,
organizations have to find other ways to control their activities. In such a situation, which of
the following, typically, is the first step taken by the organizations?
a.
b.
c.
d.
decreasing the level of standardization
increasing the level of horizontal differentiation
increasing the division of labor
increasing the span of control
31. Which of the following functions will most likely have the tallest hierarchy?
a.
b.
c.
d.
11
manufacturing
sales
R&D
accounting
BAM 532 Organizational Theory
Final Examination
32. Which of the following organizational structures has a disadvantage of extensive duplication
of activities within the organization?
a.
b.
c.
d.
functional structure
product division structure
multidivisional structure
market structure
33. A ________ structure is a cross between the product division structure and the multidivisional
structure.
a.
b.
c.
d.
functional
transactional
product team
geographic divisional
34. A ________ structure has specialists from support functions combined into product
development groups that specialize in the needs of a particular kind of product.
a.
b.
c.
d.
product team
task force
transactional
functional
35. Which of the following organizational structures is the more decentralized than a functional
structure?
a.
b.
c.
d.
product division structure
functional structure
product team structure
transactional structure
36. Artists and writers in Hallmark are organized around categories of greeting cards such as
Mother’s Day cards and Christmas cards. Which of the following types of organizational
structures is being used by Hallmark?
a.
b.
c.
d.
12
geographic structure
functional structure
product team structure
transactional structure
BAM 532 Organizational Theory
Final Examination
37. Which of the following statements is true regarding a product team structure?
a. Use of product team structure increases the product development time.
b. In a product team structure divisions are organized according to the requirements of the
different locations in which an organization operates.
c. A product team structure is more decentralized than a functional structure.
d. Typically, a product team structure is used by an organization that operates in a stable
environment where the requirements of the customers do not change quickly.
38. A ________ structure organizes divisions according to the requirements of the different
locations in which an organization appears.
a.
b.
c.
d.
geographic divisional
product divisional
functional
multidivisional
39. A geographic structure is most likely to be appropriate for which of the following companies?
a. A large manufacturer that wants to produce automobiles in Mexico and computers in
Southeast Asia.
b. An oil producer that sells gas, a commodity, in five different regions.
c. A telecommunications company that makes technologically complex equipment.
d. A retailer who specializes in clothing and operates in five different regions of the United
States.
40. Which of the following statements is most likely to be true regarding a geographic divisional
structure?
a. A geographic structure allows some functions to be centralized at one headquarters
location and others to be decentralized to a regional level.
b. A geographic divisional structure is a divisional structure in which specialists from the
support functions are combined into product development teams that specialize in the
needs of a particular kind of product.
c. An organization using a geographic divisional structure employs a transfer pricing
mechanism to transfer its products from one geographic division to the other geographic
division.
d. Organizations that use geographic divisional structure operate in a rich and dynamic
environment.
13
BAM 532 Organizational Theory
Final Examination
41. Which of the following statements is true regarding a market structure?
a. A market structure is a type of a functional structure.
b. A market structure aligns functional skills and competencies with the product needs of
different customer groups.
c. Organizations using the market structure have the tallest hierarchies.
d. The market structure is the most suitable for a company that operates in a continuously
changing environment and manufactures complex products.
42. A market structure organizes people according to ________.
a.
b.
c.
d.
the
the
the
the
skills of the people
types of customers they serve
regional markets they serve
functions they perform
43. A ________ structure is a large organization that has many divisions and simultaneously uses
many different types of organizational structure.
a.
b.
c.
d.
hybrid
an organic structure
a flat organizational structure
decentralized decision making
44. Which of the following statements is true regarding organizational culture?
a.
b.
c.
d.
A competitor can easily imitate another organization’s culture.
Culture is easy to control and manage.
Culture is embedded in the day-to-day interactions of functional personnel.
Culture cannot be a source of competitive advantage.
45. Organic structures are flat and decentralized and rely on ________.
a.
b.
c.
d.
14
sales
manufacturing
materials management
mutual adjustment
BAM 532 Organizational Theory
Final Examination
46. McDonald’s core competencies in manufacturing, marketing, and materials management
create a competitive advantage over rivals Burger King and Wendy’s. This is an example of a
________ strategy.
a.
b.
c.
d.
business-level
global expansion
corporate-level
functional-level
47. Walmart specializes in selling low-price clothing to customers who want or can afford to pay
onl…
Purchase answer to see full
attachment