MBA 704 - KUNGU - WEEK 7 - CHAPTERS 11 & 12
COMPREHENSIVE STUDY GUIDE 2026 FULL QUESTIONS
AND SOLUTIONS GRADED A+
● T/F: The modern approach to organization theory and design consists of very flexible
networks, and recognizes the interaction of information technology and people..
Answer: True
● T/F: The first major development in organization theory was to view the organization
as a system made up of independent parts.. Answer: False
● T/F: The contingency approach challenges the organizational ecology theory..
Answer: False
● T/F: The organizational ecology approach to organization theory suggests that
organizations change as a process of 'survival of the fittest.'. Answer: True
● T/F: Under single-loop, the organization is learning with significant changes in its
basic assumptions.. Answer: False
● T/F: Double-loop learning involves changing the organization's culture.. Answer: True
● T/F: Creative tension stems from the gap between the organizations' continually
upwardly upgraded vision and the reality and suggests the learning organization's
continually questioning and challenging the status quo.. Answer: True
● T/F: Empathy is reflected by the genuine concern for and the interest in employee
suggestions and innovations that can be operationalized through a feedback systems..
Answer: False
● T/F: Taken at a more individual employee organizational behavior level, employees
would react to environmental changes in a standard, routine response in the adaptive
organization, often resulting in short-run solutions.. Answer: True
● T/F: In a learning organization, managers learn how to encourage their people to
redirect their energies toward the substance of disagreements rather than toward
personality clashes or political infighting.. Answer: True
, ● T/F: Creativity includes the willingness to accept personality clashes.. Answer: False
● T/F: Managers at a learning organization encourage risk-taking, and creative
behavior by providing a challenging environment.. Answer: False
● T/F: In a learning organization, the vision is provided by the top management..
Answer: False
● T/F: In horizontal organizations, the primary driver and measure of performance is
customer satisfaction, not profits or stock appreciation.. Answer: True
● T/F: When parts of the product or service are outsourced, it's called the "Hollow
Organization" design.. Answer: False
● T/F: Horizontal, hollow and modular organization designs are sometimes subsumed
under the single term "Network Designs.". Answer: True
● T/F: Greenfield redesign means breaking completely from the classical structure and
establishing a totally different design.. Answer: True
● T/F: In network redesign, established companies return to a previously successful
design by eliminating unproductive structural additions and modifications.. Answer:
True
● T/F: One network approach is to require internal units of a firm to interact at market
prices - buy and sell to each other at prices equal to those that can be obtained by
outsourcing partners.. Answer: True
● T/F: The word virtual as used in virtual organizations comes from the popular 'virtual
reality.'. Answer: False
● T/F: Organizational climate is an overall "feeling" that is conveyed by the physical
layout, the way participants interact, and the way members of the organization conduct
themselves with customers or other outsiders.. Answer: True
● T/F: Subcultures are typically a result of religions or personal beliefs that are shared
by members of a department or a unit.. Answer: False
● T/F: Subcultures do not weaken or undermine an organization even when they are in
conflict with the dominant culture and/or the overall objectives.. Answer: False
● T/F: The socialization process can help solidify the acceptance of core values and
ensure that the culture maintains itself.. Answer: True
COMPREHENSIVE STUDY GUIDE 2026 FULL QUESTIONS
AND SOLUTIONS GRADED A+
● T/F: The modern approach to organization theory and design consists of very flexible
networks, and recognizes the interaction of information technology and people..
Answer: True
● T/F: The first major development in organization theory was to view the organization
as a system made up of independent parts.. Answer: False
● T/F: The contingency approach challenges the organizational ecology theory..
Answer: False
● T/F: The organizational ecology approach to organization theory suggests that
organizations change as a process of 'survival of the fittest.'. Answer: True
● T/F: Under single-loop, the organization is learning with significant changes in its
basic assumptions.. Answer: False
● T/F: Double-loop learning involves changing the organization's culture.. Answer: True
● T/F: Creative tension stems from the gap between the organizations' continually
upwardly upgraded vision and the reality and suggests the learning organization's
continually questioning and challenging the status quo.. Answer: True
● T/F: Empathy is reflected by the genuine concern for and the interest in employee
suggestions and innovations that can be operationalized through a feedback systems..
Answer: False
● T/F: Taken at a more individual employee organizational behavior level, employees
would react to environmental changes in a standard, routine response in the adaptive
organization, often resulting in short-run solutions.. Answer: True
● T/F: In a learning organization, managers learn how to encourage their people to
redirect their energies toward the substance of disagreements rather than toward
personality clashes or political infighting.. Answer: True
, ● T/F: Creativity includes the willingness to accept personality clashes.. Answer: False
● T/F: Managers at a learning organization encourage risk-taking, and creative
behavior by providing a challenging environment.. Answer: False
● T/F: In a learning organization, the vision is provided by the top management..
Answer: False
● T/F: In horizontal organizations, the primary driver and measure of performance is
customer satisfaction, not profits or stock appreciation.. Answer: True
● T/F: When parts of the product or service are outsourced, it's called the "Hollow
Organization" design.. Answer: False
● T/F: Horizontal, hollow and modular organization designs are sometimes subsumed
under the single term "Network Designs.". Answer: True
● T/F: Greenfield redesign means breaking completely from the classical structure and
establishing a totally different design.. Answer: True
● T/F: In network redesign, established companies return to a previously successful
design by eliminating unproductive structural additions and modifications.. Answer:
True
● T/F: One network approach is to require internal units of a firm to interact at market
prices - buy and sell to each other at prices equal to those that can be obtained by
outsourcing partners.. Answer: True
● T/F: The word virtual as used in virtual organizations comes from the popular 'virtual
reality.'. Answer: False
● T/F: Organizational climate is an overall "feeling" that is conveyed by the physical
layout, the way participants interact, and the way members of the organization conduct
themselves with customers or other outsiders.. Answer: True
● T/F: Subcultures are typically a result of religions or personal beliefs that are shared
by members of a department or a unit.. Answer: False
● T/F: Subcultures do not weaken or undermine an organization even when they are in
conflict with the dominant culture and/or the overall objectives.. Answer: False
● T/F: The socialization process can help solidify the acceptance of core values and
ensure that the culture maintains itself.. Answer: True
