MGMT 443 Midterm Exam Questions
with Complete Solutions
Recall the current challenges that are affecting organizational design - Answer-
Globalization - allows for markets, technologies, and organizations to be increasingly
interconnected
Intense competition - creates an extremely complex and competitive environment (low
price tends to win)
Ethics and the Green movement - pressure to hold employees to high ethical and
professional standards. Green movement you want to avoid doing anything that can
negatively impact the environment (key word: sustainability)
Speed and responsiveness- challenge is to respond quickly and decisively to
environmental changes, org crises, and or shifting customer expectations. "Speed of
development contributes to new product success"
Social Business and Data- digital revolution, facilitating collaboration and
communication
Recall the definitions of the different dimensions of organization design as well as the
contingency factors that affect organizational design - Answer-All are interdependent:
Structural dimensions: Labels to describe the internal characteristics of the org
Formalization- pertains to the amount of written docs in an org i.e procedures, job
descriptions, regulations
Specialization- degree in which org tasks are subdivided into separate jobs (key word:
division of labor)
Hierarchy of authority- who reports to whom, (key word: span of control)
Complexity- # of distinct departments or activities within an org
Centralization- refers to the hierarchical level of whom makes the decisions
Contingency factors: Encompass larger elements that influence structural dimensions
Size- typically measured by # of employees. Can be measured as a whole or specific
components
Organizational technology- tools, techniques, and actions used to transform inputs into
outputs
The environment- all elements outside the boundaries of the org
Orgs goal and strategy- define the purpose and competitive techniques that set it apart
from others
Org Culture- underlying set of values, key beliefs, understandings, and norms shared by
employees
Contingency: one thing depends on other things
Recall the definitions of the different operating goal types. - Answer-1.Overall
performance goals-> profitability reflects overall performance, growth and output
, 2.Resource goals-> pertains to the acquisition of needed material and financial
resources from the environment
3.Market goals-> relate to the market share or market standing desired by the org
4.Employee development goals-> pertains to the training, promotion, safety, and growth
for employees
5.Productivity goals-> concern the amount of output with the available resources
6.Innovation and change goals-> internal flexibility and ability to adapt to environmental
changes
strategies proposed in michael porters theory - Answer-Differentiation Strategy: a
business strategy that attempts to distinguish an organization's products or services
from others in the industry
Low-Cost Leadership: a strategy that tries to increase market share by keeping costs
low compared to competitors
strategies proposed in miles and snows theory - Answer-Prospector: a business
strategy of innovating, taking risks, seeking out new opportunities, and growing
Defender: a business strategy that is concerned with stability or even retrenchment
Analyzer: the analyzer tries to maintain a stable business
Reactor: a response to environmental threats and opportunities in an ad hoc fashion
Recall the different approaches to measure effectiveness in organizations. - Answer-
Goal Approach: consists of identifying an organization's output goals and assessing
how well the organization has attained those goals
Resource-Based Approach: looks at the input side of the transformation process.
Assumes organizations must be successful in obtaining and managing valued
resources in order to be effective because strategically valuable resources give an
organization a competitive edge.
Internal Process Approach: Effectiveness is measured as internal organizational health
and efficiency
Strategic Constituents Approach: measures effectiveness by focusing on the
satisfaction of key stakeholders, those who are critical to the organization's ability to
survive and thrive.
vertical information systems communication - Answer-Vertical Linkages - are used to
coordinate activities between the top and bottom of an organization and are designed
primarily for control of the organization
Hierarchical Referral - Also know as chain of command, if an employee doesn't know
how to handle something they are referred to the next level in the hierarchy
with Complete Solutions
Recall the current challenges that are affecting organizational design - Answer-
Globalization - allows for markets, technologies, and organizations to be increasingly
interconnected
Intense competition - creates an extremely complex and competitive environment (low
price tends to win)
Ethics and the Green movement - pressure to hold employees to high ethical and
professional standards. Green movement you want to avoid doing anything that can
negatively impact the environment (key word: sustainability)
Speed and responsiveness- challenge is to respond quickly and decisively to
environmental changes, org crises, and or shifting customer expectations. "Speed of
development contributes to new product success"
Social Business and Data- digital revolution, facilitating collaboration and
communication
Recall the definitions of the different dimensions of organization design as well as the
contingency factors that affect organizational design - Answer-All are interdependent:
Structural dimensions: Labels to describe the internal characteristics of the org
Formalization- pertains to the amount of written docs in an org i.e procedures, job
descriptions, regulations
Specialization- degree in which org tasks are subdivided into separate jobs (key word:
division of labor)
Hierarchy of authority- who reports to whom, (key word: span of control)
Complexity- # of distinct departments or activities within an org
Centralization- refers to the hierarchical level of whom makes the decisions
Contingency factors: Encompass larger elements that influence structural dimensions
Size- typically measured by # of employees. Can be measured as a whole or specific
components
Organizational technology- tools, techniques, and actions used to transform inputs into
outputs
The environment- all elements outside the boundaries of the org
Orgs goal and strategy- define the purpose and competitive techniques that set it apart
from others
Org Culture- underlying set of values, key beliefs, understandings, and norms shared by
employees
Contingency: one thing depends on other things
Recall the definitions of the different operating goal types. - Answer-1.Overall
performance goals-> profitability reflects overall performance, growth and output
, 2.Resource goals-> pertains to the acquisition of needed material and financial
resources from the environment
3.Market goals-> relate to the market share or market standing desired by the org
4.Employee development goals-> pertains to the training, promotion, safety, and growth
for employees
5.Productivity goals-> concern the amount of output with the available resources
6.Innovation and change goals-> internal flexibility and ability to adapt to environmental
changes
strategies proposed in michael porters theory - Answer-Differentiation Strategy: a
business strategy that attempts to distinguish an organization's products or services
from others in the industry
Low-Cost Leadership: a strategy that tries to increase market share by keeping costs
low compared to competitors
strategies proposed in miles and snows theory - Answer-Prospector: a business
strategy of innovating, taking risks, seeking out new opportunities, and growing
Defender: a business strategy that is concerned with stability or even retrenchment
Analyzer: the analyzer tries to maintain a stable business
Reactor: a response to environmental threats and opportunities in an ad hoc fashion
Recall the different approaches to measure effectiveness in organizations. - Answer-
Goal Approach: consists of identifying an organization's output goals and assessing
how well the organization has attained those goals
Resource-Based Approach: looks at the input side of the transformation process.
Assumes organizations must be successful in obtaining and managing valued
resources in order to be effective because strategically valuable resources give an
organization a competitive edge.
Internal Process Approach: Effectiveness is measured as internal organizational health
and efficiency
Strategic Constituents Approach: measures effectiveness by focusing on the
satisfaction of key stakeholders, those who are critical to the organization's ability to
survive and thrive.
vertical information systems communication - Answer-Vertical Linkages - are used to
coordinate activities between the top and bottom of an organization and are designed
primarily for control of the organization
Hierarchical Referral - Also know as chain of command, if an employee doesn't know
how to handle something they are referred to the next level in the hierarchy
