a. encompasses larger elements that influence structural dimensions, including the organization’s
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p size, technology, environment, culture, and goals.
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b. gives us the tools to evaluate and understand how and why some organizations grow and succeed while
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p others do not.
p p
c. obtains inputs from the external environment, adds value through a transformation process, and
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p discharges products and services back to the environment.
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d. provides labels to describe the internal characteristics of an organization.
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ANSWER: b
RATIONALE: Feedback: Organization design gives us the tools to evaluate and understand how and why some
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p organizations grow and succeed while others do not. It helps us explain what happened in the
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p past, as well as what might happen in the future, so that we can manage organizations more
p p p p p p p p p p p p p p p p
p effectively.
POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-03 - 01-03
p p p p
NATIONAL STANDARDS: United States - AACSB: Analytic
p p p p p p
TOPICS: Organization Design in Action p p p
KEYWORDS: Bloom’s: Understand p
2. refers to economic development that generates wealth and meets the needs of the current generation while
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saving the environment so future generations can meet their needs as well.
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a. Centralization
b. Formalization
c. Contingency
d. Sustainability
ANSWER: d
RATIONALE: Feedback: Many companies are embracing the philosophy of sustainability, which refers to
p p p p p p p p p p p
p economic development that generates wealth and meets the needs of the current generation
p p p p p p p p p p p p
p while saving the environment so future generations can meet their needs as well.
p p p p p p p p p p p p
POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-02 - 01-02
p p p p
NATIONAL STANDARDS: United States - AACSB: Analytic
p p p p p p
Cengage pLearning pTesting, pPowered pby Page p1
Cognero
,TOPICS: Organization Design in Action p p p
KEYWORDS: Bloom’s: Understand p
3. Pendant Inc., a retail chain based in England, has implemented an energy-efficient trucking fleet. It is increasing its
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use of green materials in buildings, and aims to dispose all the waste of the company by 2025. Which of the
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following measures is Pendant Inc. focusing its efforts on?
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a. Going green p
b. Scientific management
p
c. Contingency
d. Centralization
ANSWER: a
RATIONALE: Feedback: Pendant Inc. is focusing its efforts on going green. Going green has become a new
p p p p p p p p p p p p p p p
business imperative, driven by shifting social attitudes, new government policies, climate changes,
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and the information technology that quickly spreads news of a corporation’s negative impact on
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the environment.
p p
POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-02 - 01-02
p p p p
Cengage pLearning pTesting, pPowered pby Page p2
Cognero
, NATIONAL STANDARDS: United States - AACSB: Reflective Thinking
p p p p p p p
TOPICS: Organization Design in Action p p p
KEYWORDS: Bloom’s: Apply p
4. refers to technologies, skills, and processes for searching and examining massive sets of data to uncover
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hidden patterns and correlations.
p p p p
a. Scientific management p
b. Social business p
c. A social media program
p p p
d. Big data analytics
p p
ANSWER: d
RATIONALE: Feedback: Big data analytics refers to technologies, skills, and processes for searching and
p p p p p p p p p p p p
p examining massive sets of data to uncover hidden patterns and correlations. Big data is not just
p p p p p p p p p p p p p p p
p for online companies.
p p
POINTS: 1
LEARNING OBJECTIVES: ORGT.DAFT.16.01-02 - 01-02
p p p p
NATIONAL STANDARDS: United States - AACSB: Analytic
p p p p p p
TOPICS: Organization Design in Action p p p
KEYWORDS: Bloom’s: Remember p
5. Which of the following is a difference between for-profit businesses and nonprofit organizations?
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a. Financial resources for for-profit businesses come from government appropriations, grants, and
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donations, while nonprofit organizations are funded by the sale of products or services to customers.
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b. In for-profit businesses, managers focus on improving an organization’s products and services to increase
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p sales revenues, while in nonprofit organizations, however, services are typically provided to nonpaying
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clients.
p
c. For-profit businesses are committed to servicing clients with limited funds, while nonprofit organizations
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have access to unlimited funds to service clients.
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d. In for-profit businesses, services are typically provided to nonpaying clients, while in nonprofit
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organizations, services are typically provided to paying clients.
p p p p p p p p
ANSWER: b
RATIONALE: Feedback: In for-profit businesses, managers focus on improving an organization’s products and
p p p p p p p p p p p
Cengage pLearning pTesting, pPowered pby Page p3
Cognero