MBA 704 EXAM 1 PRACTICE QUESTIONS WITH
DETAILED EXPLANATIONS 2026
◉ Open System.
Answer: System made up of interactive parts from external
environment
◉ Contingency Approach.
Answer: No single best way to organize
Design must be fitted to existing environmental conditions
◉ Organizational learning.
Answer: Emphasizes innovation and creativity over adapting to
change
◉ Learning Organizaitions.
Answer: Single Loop
Double Loop
◉ Single Loop.
Answer: Improving organization's capacity to achieve known
objectives (routine and behavioral learning)
,◉ Double Loop.
Answer: Reevaluating objectives and the beliefs surrounding them
(changing the organizational culture)
◉ Characteristics of Learning Organizationa.
Answer: Presence of tension
Systems thinking
Culture
◉ Presence of Tension.
Answer: Creative tension (motivation to learn)
◉ Systems Thinking.
Answer: Shared visions and openness to new ideas
◉ Culture.
Answer: High value placed on process of learning
◉ Organization Behavior in Learning Organizations.
Answer: Adaptive learning
Generative learning
,Cultural values
◉ Adaptive Learning.
Answer: Employees simply react to changing with standard
responses leading to short term solutions
◉ Generative Learning.
Answer: Examine effect of decisions and change behavior as needed
◉ Cultural values.
Answer: Everyone has useful ideas
Learning flows up and down and new ideas are important
Mistakes are learning opportunities
◉ Organizational Design.
Answer: Creating or reshaping of the organizations structure
Horizontal
Hollow
Modular
Network
Radical Redesign
Virtual Organization
, ◉ Horizontal Design.
Answer: Improves coordination and communication
Organized around workflow process not task
Flattened hierarchy and use of teams to manage everything
Teams performance rewarded
Customer satisfying as driver of performance
Supplier and customer contact max
Fully informed and training employees
◉ Hollow Design.
Answer: Core competencies (product design and marketing) kept in
house
Entire non core process (manufacturing or customer service)
outsourced to vendors who do them cheaper and faster
◉ Modular Design.
Answer: Parts of produce or service outsources instead of entirety
process
◉ Network Design.
Answer: Horizontal, Hollow, and Modular
DETAILED EXPLANATIONS 2026
◉ Open System.
Answer: System made up of interactive parts from external
environment
◉ Contingency Approach.
Answer: No single best way to organize
Design must be fitted to existing environmental conditions
◉ Organizational learning.
Answer: Emphasizes innovation and creativity over adapting to
change
◉ Learning Organizaitions.
Answer: Single Loop
Double Loop
◉ Single Loop.
Answer: Improving organization's capacity to achieve known
objectives (routine and behavioral learning)
,◉ Double Loop.
Answer: Reevaluating objectives and the beliefs surrounding them
(changing the organizational culture)
◉ Characteristics of Learning Organizationa.
Answer: Presence of tension
Systems thinking
Culture
◉ Presence of Tension.
Answer: Creative tension (motivation to learn)
◉ Systems Thinking.
Answer: Shared visions and openness to new ideas
◉ Culture.
Answer: High value placed on process of learning
◉ Organization Behavior in Learning Organizations.
Answer: Adaptive learning
Generative learning
,Cultural values
◉ Adaptive Learning.
Answer: Employees simply react to changing with standard
responses leading to short term solutions
◉ Generative Learning.
Answer: Examine effect of decisions and change behavior as needed
◉ Cultural values.
Answer: Everyone has useful ideas
Learning flows up and down and new ideas are important
Mistakes are learning opportunities
◉ Organizational Design.
Answer: Creating or reshaping of the organizations structure
Horizontal
Hollow
Modular
Network
Radical Redesign
Virtual Organization
, ◉ Horizontal Design.
Answer: Improves coordination and communication
Organized around workflow process not task
Flattened hierarchy and use of teams to manage everything
Teams performance rewarded
Customer satisfying as driver of performance
Supplier and customer contact max
Fully informed and training employees
◉ Hollow Design.
Answer: Core competencies (product design and marketing) kept in
house
Entire non core process (manufacturing or customer service)
outsourced to vendors who do them cheaper and faster
◉ Modular Design.
Answer: Parts of produce or service outsources instead of entirety
process
◉ Network Design.
Answer: Horizontal, Hollow, and Modular
