LSUS MBA 704 Module 2 PowerPoints
Comprehensive Exam Questions with Detailed
Verified Answers – 2025/2026 Edition – Already
Graded A+
Section 1: Historical and Modern Theoretical Foundations
1. Who proposed a comprehensive theory of cooperation in formal organizations?
A) Peter Senge
B) Chris Argyris
C) Chester Barnard
D) Frederick Taylor
Correct Answer: C
Rationale: Chester Barnard is credited with proposing a comprehensive theory of
cooperation in formal organizations. He defined a formal organization as a "system of
consciously coordinated activities of two or more persons" and emphasized that authority
should come from the bottom up, not top-down .
, 2. According to Chester Barnard, authority in an organization should:
A) Flow from the top down through a strict bureaucratic hierarchy
B) Come from the bottom up
C) Be determined solely by position and title
D) Be eliminated entirely in favor of self-management
Correct Answer: B
Rationale: Barnard maintained that authority should come from the bottom up, rather than
through a top-down bureaucratic approach. He believed this was essential for cooperation
and emphasized the importance of the human element in organizations .
3. Chester Barnard's view of formal organizations stressed:
A) Strict hierarchical control and top-down decision making
B) The cooperative aspects of organizations and the human element
C) Efficiency and scientific management principles
D) The elimination of all organizational structure
Correct Answer: B
Rationale: Barnard stressed the cooperative aspects of organizations and emphasized the
importance of the human element, rather than viewing organizations merely as boxes on an
organization chart. He was critical of classical organization theory for being too descriptive
and superficial .
, 4. A formal organization, according to Chester Barnard, is defined as:
A) A group of people working independently toward individual goals
B) A system of consciously coordinated activities of two or more persons
C) A rigid hierarchical structure with clear chains of command
D) An informal network of social relationships within a company
Correct Answer: B
Rationale: Barnard defined a formal organization as a "system of consciously coordinated
activities of two or more persons." He emphasized that people, not boxes on an
organization chart, make up a formal organization .
5. Which theoretical approach emphasizes that organizations are systems made up of
interacting parts that receive input from the external environment?
A) Contingency Approach
B) Closed-Systems Approach
C) Open-Systems Approach
D) Ecological Approach
Correct Answer: C
Rationale: The Open-Systems Approach stresses the input of the external environment and
views the organization as a system made up of interacting parts. This concept has had a
tremendous impact on modern organization theory .
, 6. The Open-Systems approach to organizational theory:
A) Ignores the external environment
B) Focuses only on internal processes
C) Emphasizes the interaction between the organization and its external environment
D) Views organizations as completely self-contained entities
Correct Answer: C
Rationale: The Open-Systems approach emphasizes the interaction between the
organization and its external environment, recognizing that organizations are influenced by
and must respond to external factors .
7. According to the Contingency Approach to organizational theory:
A) There is one best way to organize all organizations
B) Organizational design must be fitted to existing environmental conditions
C) Organizations should ignore environmental factors
D) All organizations should use the same structure regardless of context
Correct Answer: B
Rationale: The Contingency Approach states that there is no single best way to organize;
the organizational design must be fitted to the existing environmental conditions. What
works for one organization may not work for another .
Comprehensive Exam Questions with Detailed
Verified Answers – 2025/2026 Edition – Already
Graded A+
Section 1: Historical and Modern Theoretical Foundations
1. Who proposed a comprehensive theory of cooperation in formal organizations?
A) Peter Senge
B) Chris Argyris
C) Chester Barnard
D) Frederick Taylor
Correct Answer: C
Rationale: Chester Barnard is credited with proposing a comprehensive theory of
cooperation in formal organizations. He defined a formal organization as a "system of
consciously coordinated activities of two or more persons" and emphasized that authority
should come from the bottom up, not top-down .
, 2. According to Chester Barnard, authority in an organization should:
A) Flow from the top down through a strict bureaucratic hierarchy
B) Come from the bottom up
C) Be determined solely by position and title
D) Be eliminated entirely in favor of self-management
Correct Answer: B
Rationale: Barnard maintained that authority should come from the bottom up, rather than
through a top-down bureaucratic approach. He believed this was essential for cooperation
and emphasized the importance of the human element in organizations .
3. Chester Barnard's view of formal organizations stressed:
A) Strict hierarchical control and top-down decision making
B) The cooperative aspects of organizations and the human element
C) Efficiency and scientific management principles
D) The elimination of all organizational structure
Correct Answer: B
Rationale: Barnard stressed the cooperative aspects of organizations and emphasized the
importance of the human element, rather than viewing organizations merely as boxes on an
organization chart. He was critical of classical organization theory for being too descriptive
and superficial .
, 4. A formal organization, according to Chester Barnard, is defined as:
A) A group of people working independently toward individual goals
B) A system of consciously coordinated activities of two or more persons
C) A rigid hierarchical structure with clear chains of command
D) An informal network of social relationships within a company
Correct Answer: B
Rationale: Barnard defined a formal organization as a "system of consciously coordinated
activities of two or more persons." He emphasized that people, not boxes on an
organization chart, make up a formal organization .
5. Which theoretical approach emphasizes that organizations are systems made up of
interacting parts that receive input from the external environment?
A) Contingency Approach
B) Closed-Systems Approach
C) Open-Systems Approach
D) Ecological Approach
Correct Answer: C
Rationale: The Open-Systems Approach stresses the input of the external environment and
views the organization as a system made up of interacting parts. This concept has had a
tremendous impact on modern organization theory .
, 6. The Open-Systems approach to organizational theory:
A) Ignores the external environment
B) Focuses only on internal processes
C) Emphasizes the interaction between the organization and its external environment
D) Views organizations as completely self-contained entities
Correct Answer: C
Rationale: The Open-Systems approach emphasizes the interaction between the
organization and its external environment, recognizing that organizations are influenced by
and must respond to external factors .
7. According to the Contingency Approach to organizational theory:
A) There is one best way to organize all organizations
B) Organizational design must be fitted to existing environmental conditions
C) Organizations should ignore environmental factors
D) All organizations should use the same structure regardless of context
Correct Answer: B
Rationale: The Contingency Approach states that there is no single best way to organize;
the organizational design must be fitted to the existing environmental conditions. What
works for one organization may not work for another .
