BU398 Midterm Exam Questions With
Complete Solutions
At what point in history was the beginning of organization theory and design? - ANSWER
Industrial revolution
What did the Industrial Revolution lead to? - ANSWER factory system - maximum
efficiency which lead to the development of hierarchy
What were administrative principles? What did they lead to? - ANSWER Henri Fayol's 14
principles of management was the foundation of modern management practise
What did the 1980s lead to? - ANSWER new organizational cultures with leaner staff and
more flexibility
what are 5 current challenges organizations must face? why? - ANSWER 1. globalization
2. ethics and social responsibility
3. speed and responsiveness
4. digital workplace
5. diversity
How is globalization affecting organizational behaviour? - ANSWER it's easier to exert
influence around the world and outsource to other countries
How is speed affecting organizational behaviour? - ANSWER companies have to be
responsive to environmental challenges, organizational crises, and shifting customer
expectations. customers also expect products to be tailored to their exact needs
How is diversity affecting organizational behaviour? - ANSWER Shifting demographics
of the Canadian workforce mean the average worker is older, and there are more
women and visible minorities
What are the components of an organization? - ANSWER - social entities
- goal directed
- deliberately structured and coordinated
- linked to the external environment
What are the components of a nonprofit organization? - ANSWER - financial resources
must be used efficiently - come from government grants and donation
,- diverse stakeholders
- social enterprises are focused on achieving self-sufficiency
Why are organizations important? - ANSWER - Use resources to accomplish specific
goals
- Produce goods and services efficiently at competitive prices
- Facilitate innovation
- Use modern manufacturing and information technologies
- Adapt to a rapidly changing environment (i.e. globalization)
- Accommodate challenges of culture and motivate employees to work together to
accomplish organizational goals
- Create value for owners, customers, and employees
What is a closed system? - ANSWER does not depend on the environment and is
autonomous from the outside world
What is an open system? - ANSWER interacts with the environment to survive
What are the challenges of an open system? - ANSWER resources, environmental
changes, disposal of outputs, coordination of internal activities
What is the flow of an organizational system? - ANSWER input --> transformation
process --> output
What is included in the subsystem for input? - ANSWER boundary spanning - exchanges
with external environment
What is included in the subsystem for transformation? - ANSWER o Production -
produces the product and services output
o Maintenance - maintains smooth operation of organization's physical and human
elements
o Adaptation - organizational change
o Management - coordinating and directing other subsystems
Mintzberg's 5 basic parts of an organization? - ANSWER 1. Technical core: employees
who do basic work of organization
2. Top management: direction, strategy, goals, and policies
3. Middle management: coordination at departmental level
4. Technical support: helps organizations adapt to environment and creates innovations
, in the technical core
5. Administrative support: responsible for smooth operation and upkeep of the
organization
6 structural dimensions? - ANSWER Formalization
Centralization
Specialization
Standardization
Complexity
Hierarchy of Authority
What is formalization? - ANSWER the presence of rules and regulations governing how
people in the organization interact
What is specialization? - ANSWER the degree to which organizational tasks are
subdivided into separate jobs
o Low - employees do a wide range of tasks
o High - each employee performs a narrow range of tasks
What is hierarchy of authority? - ANSWER who reports to whom; span of control for each
manager
What is a centrlized/decentralized organization? - ANSWER - centralized - decision
making is kept at the top level
- decentralized - decisions delegated to lower levels
What is professionalism? - ANSWER level of formal education and training of employees
5 contextual dimensions? - ANSWER 1. goals and strategy
2. environment
3. size
4. culture
5. technology
What is efficiency? - ANSWER amount of resources used to achieve the organization's
goals
What is effectiveness? - ANSWER degree to which an organization achieves its goals
Complete Solutions
At what point in history was the beginning of organization theory and design? - ANSWER
Industrial revolution
What did the Industrial Revolution lead to? - ANSWER factory system - maximum
efficiency which lead to the development of hierarchy
What were administrative principles? What did they lead to? - ANSWER Henri Fayol's 14
principles of management was the foundation of modern management practise
What did the 1980s lead to? - ANSWER new organizational cultures with leaner staff and
more flexibility
what are 5 current challenges organizations must face? why? - ANSWER 1. globalization
2. ethics and social responsibility
3. speed and responsiveness
4. digital workplace
5. diversity
How is globalization affecting organizational behaviour? - ANSWER it's easier to exert
influence around the world and outsource to other countries
How is speed affecting organizational behaviour? - ANSWER companies have to be
responsive to environmental challenges, organizational crises, and shifting customer
expectations. customers also expect products to be tailored to their exact needs
How is diversity affecting organizational behaviour? - ANSWER Shifting demographics
of the Canadian workforce mean the average worker is older, and there are more
women and visible minorities
What are the components of an organization? - ANSWER - social entities
- goal directed
- deliberately structured and coordinated
- linked to the external environment
What are the components of a nonprofit organization? - ANSWER - financial resources
must be used efficiently - come from government grants and donation
,- diverse stakeholders
- social enterprises are focused on achieving self-sufficiency
Why are organizations important? - ANSWER - Use resources to accomplish specific
goals
- Produce goods and services efficiently at competitive prices
- Facilitate innovation
- Use modern manufacturing and information technologies
- Adapt to a rapidly changing environment (i.e. globalization)
- Accommodate challenges of culture and motivate employees to work together to
accomplish organizational goals
- Create value for owners, customers, and employees
What is a closed system? - ANSWER does not depend on the environment and is
autonomous from the outside world
What is an open system? - ANSWER interacts with the environment to survive
What are the challenges of an open system? - ANSWER resources, environmental
changes, disposal of outputs, coordination of internal activities
What is the flow of an organizational system? - ANSWER input --> transformation
process --> output
What is included in the subsystem for input? - ANSWER boundary spanning - exchanges
with external environment
What is included in the subsystem for transformation? - ANSWER o Production -
produces the product and services output
o Maintenance - maintains smooth operation of organization's physical and human
elements
o Adaptation - organizational change
o Management - coordinating and directing other subsystems
Mintzberg's 5 basic parts of an organization? - ANSWER 1. Technical core: employees
who do basic work of organization
2. Top management: direction, strategy, goals, and policies
3. Middle management: coordination at departmental level
4. Technical support: helps organizations adapt to environment and creates innovations
, in the technical core
5. Administrative support: responsible for smooth operation and upkeep of the
organization
6 structural dimensions? - ANSWER Formalization
Centralization
Specialization
Standardization
Complexity
Hierarchy of Authority
What is formalization? - ANSWER the presence of rules and regulations governing how
people in the organization interact
What is specialization? - ANSWER the degree to which organizational tasks are
subdivided into separate jobs
o Low - employees do a wide range of tasks
o High - each employee performs a narrow range of tasks
What is hierarchy of authority? - ANSWER who reports to whom; span of control for each
manager
What is a centrlized/decentralized organization? - ANSWER - centralized - decision
making is kept at the top level
- decentralized - decisions delegated to lower levels
What is professionalism? - ANSWER level of formal education and training of employees
5 contextual dimensions? - ANSWER 1. goals and strategy
2. environment
3. size
4. culture
5. technology
What is efficiency? - ANSWER amount of resources used to achieve the organization's
goals
What is effectiveness? - ANSWER degree to which an organization achieves its goals
