MADM 701 Ch 3 Exam Questions and
Answers
Chester Barnard - Answers --Formal organization
-Believed that authority should come from the bottom up
-Put emphasis on importance of human element in organization
formal organization - Answers -a system of coordinated activities or forces of two or
more persons
Open-systems - Answers -system made up of interacting parts from external
environment
Contingency Approach - Answers -No single best way to organize; design must be fitted
to existing environmental conditions
Organizational Learning - Answers -Emphasizes innovation and creativity over adapting
to change
Two types of learning - Answers -single loop and double loop
single-loop learning - Answers -improving organization's capacity to achieve known
objectives (routine and behavioral learning)
double-loop learning - Answers -reevaluating objectives and the beliefs surrounding
them (changing the organizational culture)
Dominant value - Answers -major values expected to be shared
-High product quality, low absenteeism, high efficiency
philosophy - Answers -beliefs how to treat employees and/or customers
Rules - Answers -guidelines related to getting along in the organization
Organizational Climate - Answers -overall "feeling" conveyed
-Physical layout, the way participants interact, and the way members of the organization
treat customers and other outsiders
Uniformity of Culture - Answers -Organizational culture perceptions not shared to same
degree, resulting in a dominant culture and subcultures
, Dominant culture - Answers -set of core values shared by majority
Subcultures - Answers -set of values shared by a small minority
-Typically a result of problems or experiences shared by certain unit
Characteristics of Learning Organization - Answers -Presence of Tension
Systems Thinking
Culture
Presence of Tension - Answers -creative tension (motivation to learn)
System Thinking - Answers -shared vision and openness to new ideas
Culture - Answers -high value placed on process of learning
Organizational Behavior in Learning Organization - Answers -Adaptive learning
Generative learning
Adaptive Learning - Answers -employees simply react to environmental changes with
standard responses leading to short-term solutions
Generative Learning - Answers -employees examine effect of decisions and change
behavior as needed
Cultural values - Answers --Everyone has useful ideas and closest to problem usually
have best
-Learning flows up and down and new ideas are important
-Mistakes are learning opportunities
Organizational Design - Answers -Creation or reshaping of the organization's structure
Horizontal Design - Answers -Improves coordination and communication
Horizontal Design Principles - Answers --Organized around workflow process, not the
task
-Flattened hierarchy and use of teams to manage everything
-Team performance rewarded
-Customer satisfaction as driver of performance
-Supplier and customer contact maximized
-Fully informed and trained employees
Hollow Design - Answers --Core competencies such as product design and marketing
kept in house
-Entire noncore processes such as manufacturing or customer service outsourced to
vendors who do them cheaper and faster
Answers
Chester Barnard - Answers --Formal organization
-Believed that authority should come from the bottom up
-Put emphasis on importance of human element in organization
formal organization - Answers -a system of coordinated activities or forces of two or
more persons
Open-systems - Answers -system made up of interacting parts from external
environment
Contingency Approach - Answers -No single best way to organize; design must be fitted
to existing environmental conditions
Organizational Learning - Answers -Emphasizes innovation and creativity over adapting
to change
Two types of learning - Answers -single loop and double loop
single-loop learning - Answers -improving organization's capacity to achieve known
objectives (routine and behavioral learning)
double-loop learning - Answers -reevaluating objectives and the beliefs surrounding
them (changing the organizational culture)
Dominant value - Answers -major values expected to be shared
-High product quality, low absenteeism, high efficiency
philosophy - Answers -beliefs how to treat employees and/or customers
Rules - Answers -guidelines related to getting along in the organization
Organizational Climate - Answers -overall "feeling" conveyed
-Physical layout, the way participants interact, and the way members of the organization
treat customers and other outsiders
Uniformity of Culture - Answers -Organizational culture perceptions not shared to same
degree, resulting in a dominant culture and subcultures
, Dominant culture - Answers -set of core values shared by majority
Subcultures - Answers -set of values shared by a small minority
-Typically a result of problems or experiences shared by certain unit
Characteristics of Learning Organization - Answers -Presence of Tension
Systems Thinking
Culture
Presence of Tension - Answers -creative tension (motivation to learn)
System Thinking - Answers -shared vision and openness to new ideas
Culture - Answers -high value placed on process of learning
Organizational Behavior in Learning Organization - Answers -Adaptive learning
Generative learning
Adaptive Learning - Answers -employees simply react to environmental changes with
standard responses leading to short-term solutions
Generative Learning - Answers -employees examine effect of decisions and change
behavior as needed
Cultural values - Answers --Everyone has useful ideas and closest to problem usually
have best
-Learning flows up and down and new ideas are important
-Mistakes are learning opportunities
Organizational Design - Answers -Creation or reshaping of the organization's structure
Horizontal Design - Answers -Improves coordination and communication
Horizontal Design Principles - Answers --Organized around workflow process, not the
task
-Flattened hierarchy and use of teams to manage everything
-Team performance rewarded
-Customer satisfaction as driver of performance
-Supplier and customer contact maximized
-Fully informed and trained employees
Hollow Design - Answers --Core competencies such as product design and marketing
kept in house
-Entire noncore processes such as manufacturing or customer service outsourced to
vendors who do them cheaper and faster
