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20 Cards in this Set

  • Front
  • Back
Organizational culture ________.
controls organizational members' interactions with each other
When local store managers try to spot trends and changes so that they can respond to customer needs, they are attempting to ________.
manage the external environment
An organization's culture is shaped by the type of structure used by the organization.
True
Which of the following definitions best describes a contingency?
It is an event that might occur and must be planned for.
Which of the following are contingencies that cause the organization to face uncertainty?
global environment and changing technology
An organization is a tool people use to coordinate their actions to obtain something they desire or value.
True
Organizational structure is the formal system of task and authority relationships that control how people coordinate their actions and use resources to achieve organizational goals.
True
Competitive advantage is the ability of a company to ________.
outperform another company because its managers are able to create more value from the resources at their disposal
The quality of organizational decision-making is a function of the ________.
diversity of the viewpoints that get considered
Value creation by an organization takes place at three stages: input, conversion, and output. Out of these three stages, only the conversion stage is affected by the environment in which the organization operates.
False
Researchers analyzing what CEOs and managers do for measuring organizational effectiveness, have pointed to ________ as the three most important processes managers use to assess and measure how effective they, and their organizations, are at creating value.
control, innovation, and efficiency
________ determines how much value is created at the conversion stage.
The way an organization uses human resources and technology to transform inputs into outputs
Transaction costs are the costs associated with negotiating, monitoring, and governing exchanges between people.
True
Economies of scope are cost savings achieved when an organization manufactures products in large volumes.
False
The principal purpose of organizational structure is to ________.
control how people coordinate their actions and use resources
The ________ approach allows managers to evaluate the organization's ability to secure, manage, and control scarce and valued skills and resources.
external resource
An organization's ________ determine how effectively managers are able to coordinate and motivate workers.
structure and culture
Economies of scale are cost savings that result when an organization is able to use underutilized resources more effectively because they can be shared across several different products or tasks.
False
The environment in which an organization operates is a major source of uncertainty.
True
At Microsoft, to control scientists and make use of their talents, Bill Gates put them in teams. This is an example of a change in an organization's ________.
structure