BADM 509 Managing Organizations Exam Questions With Verified Solutions

BADM 509 Managing Organizations Exam Questions With Verified Solutions Purpose - answerThe reason why an organization exists mission statement - answera short statement of why an organization exists. It often includes reference to what an organization does as well as who the organization serves Corporate Governance - answerthe system by which organizations are directed and controlled. Corporate governance deals directly with issues related to the purpose of the organization and how it is controlled. Stakeholder Theory - answera theory of corporate governance that suggests that firms must account for multiple constituencies impacted by business entities like employees, suppliers, local communities, creditors, shareholders and others. It is sometimes contrasted with the shareholder value perspective. Shareholder Value - answera perspective that suggests that the primary responsibility of the firm is to maximize returns for shareholders. Organizational Effectiveness - answerThe extent to which an organization fulfills its intended purpose. A broader measure of performance that goes beyond efficiency and financial measures of success. Balanced Scoreboard - answera performance management tool that can be used by managers to keep track of key performance indicators across a range of relevant outcomes. Typically includes metrics related to financial performance, operational efficiency, learning and growth of employees, and customer or other stakeholder satisfaction. Rational System - answerA way of thinking about organizations that treats the organization as similar to a machine that operates efficiently to reach a well-defined goal. Agency Theory - answera perspective on organizations that is focused on reducing costs associated with the principal-agent problem where sometimes an agent has incentives to not act in the best interests of the principal. Natural System Approach - answera way of viewing organizations as a community of people, with the complexities that accompany human behavior and interaction. Acknowledges realities such as multiple organizational goals, political maneuvering, the development of organizational culture, informal structure etc. Pluralistic Ignorance - answerA situation wherein individuals underestimate the extent to which others share their concerns. Open System Approach - answera way of viewing organizations as similar to adaptive organisms that must adapt to the circumstances of the external environment in order to survive. Organizational structure - answerthe ways in which tasks in the organization are divided, grouped, and coordinated Functional structure - answera way of organizing that groups employees according to a similar set of roles or tasks. Divisional structure - answera way of organizing that groups employees according to particular products, services, geographic locations or markets. Matrix structure - answera way of organizing that simultaneously implements elements of a functional and divisional structure in an effort to achieve the benefits of both types of structure. Matrix structures have dual reporting lines. Hybrid structure - answera way of organizing in which more than one organizational structure is used. Network structure - answera way of organizing in which the firm focuses on its core competencies and outsources other aspects of the organization Contingency Theory - answerperspective that suggests there is not one best way to structure a company. Rather, the best structure is contingent upon a variety of different contextual factors that must be accounted for when making design choices. Holacracy - answerA method of decentralized management and organizational governance, in which authority and decision-making are distributed among self-organizing teams rather than residing in a management hierarchy. Retrieved from Mechanistic Structure - answera way of organizing that uses formal structure, rules, processes, and standard operating procedures to accomplish work in an efficient manner. Jobs are clearly defined and highly specialized, decision-making is centralized at the top. Organic Structure - answera way of organizing that is less formalized, with few rules and standard operating procedures. Jobs are tend to be broad and not clearly defined and decision- making is decentralized throughout the organization. Organizational Life Cycles - answera way of thinking about organizations that suggests that most organizations go through predictable stages as they grow and that each phase presents similar challenges that the firm must overcome to continue to grow. Organizational integration - answerthe ways in which different parts of the organization coordinate and work together