MA COLLEGE

DISTANCE EDUCATION UNIT

ORGANIZATIONAL THEORYFINAL EXAM

Part I
1. Organizational theorists understand 'physical structure' as the spatial-temporal
relationships between what?
A. Material elements and buildings
B. Symbolic meaning and heritage
C. Material elements and symbolic meaning
D. All of the above
2. Which of the following is not a characteristic of bureaucracy identified by
Weber?
A. Specialization and division of labor
B. Selection and promotion based on seniority
C. Centralized decision making guided by strict rules and procedures
D. Separation of person and position (authority rests in position, not
person)
3. Which dimension of the organizational social structure most clearly relates to
the division of labor?
A. Centralization
B. Integration
C. Standardization
D. Departmentalization
4. According to Greiner's organizational lifecycle model, the red tape crisis ends
the ____________ phase and initiates the ____________ phase.
A. Entrepreneurial, formalization
B. Collectivity, delegation
C. Collaboration, renewal
D. Formalization, collaboration
5. Which organizational structure was developed to combine the efficiency of the
functional design with the flexibility and responsiveness of the multidivisional
form?
A. Multidimensional
B. Matrix
C. Hybrid
D. Simple
6. According to the Katz and Kahn model, a company that is beginning to find
ways to buffer its technical core is developing which function of its social
structure?
A. Maintenance
B. Bureaucracy
C. Support
D. Adaptation
7. Which of the following is an example of formalization in organizations?
A. Job descriptions
B. Organizational chart
C. Employee handbook
D. All of the above
8. Which of the following is not a commonly used dimension of organizational
social structure?
A. Differentiation
B. Formalization
C. Centralization
D. Organization
9. Which organization design groups activities according to similarity of work
function?
A. Simple
B. Functional
C. Multidimensional
D. Matrix
10. What is the key difference between a bureaucracy and a mechanistic
organization?
A. Nothing: they are the same
B. Size
C. (De)centralization
D. Departmentalization
11. Which are the two popular methods used to control the behaviour of the
employees?
A. Longitudinal analysis and independent organization
B. Direct surveillance and formalised regulations
C. Complexity and discretion
D. None of the above
12. _________ refers to the information, equipment, techniques and processes
required to transform inputs into outputs in the organisation.
A. Size
B. Technology
C. Power – control
D. Environment
13. Which of the following option was created to hire highly trained specialists for the operating
core?
A. Machine bureaucracy
B. Adhocracy
C. Professional bureaucracy
D. None of the above
14. ________ can be defined as the determination of the basic long - term goals and objectives
of an enterprise, the adoption of courses of action and the allocation of resources necessary for
carrying out these goals..
A. Strategy
B. Strategic dimension
C. Business level strategy
D. None of the above
15. Which of the following option is a strategic dimension?
A. Innovation
B. Cost control
C. Marketing differentiation
D. Breadth
E. All of the above
 Part II MATCH FROM B TO A
1. Strategic apex -----
2. Techno - structure ------
3. Middle line ------
4. Support staff ------
5. Operating core -------
6. Machine Bureaucracy
7. Simple Structure
8. Adhocracy
9. Professional Bureaucracy
rules
10. Divisional Structure
A. Decentralized and professional bureaucracy
B. Centralized and Simple structure
C. Dominant standardization and machine bureaucracy
D. Autonomy and Divisional structure
E. Mutual adjustments and machine bureaucracy
F. Performing standard activities efficiently& subunit conflicts
G. Flexible and limited applicability
H. Ad-hoc teams and conflicts
I. Performing specialized tasks & compulsion to follow
J. functional goals override organizational goals
Part III

1. List and explain todays challenges that managers face [5 Pts]

2. List the purpose of organizations? [2.5 Pts]
3. What has to be tracked when goal approach is used for organizational Effectiveness [2.5 Pts]
 MA COLLEGE
DISTANCE EDUCATION UNIT
ORGANIZATIONAL THEORY TMA
Part I
1. An organization is a consciously coordinated social unit composed of two or
more people
2. Organizational behavior applies the knowledge gained about individuals,
groups, and the effect of structure on behavior in order to make
organizations work more effectively
3. According to the big five model, the agreeableness dimension refers to an
individual's propensity to defer to others
4. Organizational behavior applies the knowledge gained about individuals,
groups, and the effect of structure on behavior in order to make
organizations work more effectively
5. The three components of an attitude are cognition, affect, and behavior
6. According to Festinger, people seek consistency between their attitudes and
their behaviors
7. Job involvement measures the degree to which people identify
psychologically with the organization's mission and vision
8. An organization is a consciously coordinated social unit composed of two or
more people
9. People's behavior is based on their perception of what reality is, not on
reality itself
10. The tendency to underestimate the influence of external factors and
overestimate the influence of internal factors when making judgments about
the behavior of others is known as the randomness error
11. _________ refers to the information, equipment, techniques and processes
required to transform inputs into outputs in the organisation.
A. Size
B. Technology
C. Power – control
D. Environment
12. Which of the following option was created to hire highly trained specialists for the
operating core?
A. Machine bureaucracy
B. Adhocracy
C. Professional bureaucracy
D. None of the above
13. ________ can be defined as the determination of the basic long - term goals and
objectives of an enterprise, the adoption of courses of action and the allocation of
resources necessary for carrying out these goals..
A. Strategy
B. Strategic dimension
C. Business level strategy
D. None of the above
14. Which of the following option is a strategic dimension?
A. Innovation
B. Cost control
C. Marketing differentiation
D. Breadth
E. All of the above
15. A scientific theory that suggests that relationships in complex, adaptive systems are made
up of numerous interconnections that create unintended effects and render the
environment unpredictable
A. Stakeholder approach
B. Bounded rationality perspective
C. Change process
D. Chaos theory
Part III 15%
1. What are the Four Organizational theories?
2. What is modern organizational theory?
3. What are the five organizational approaches?
 MA COLLEGE
DISTANCE EDUCATION UNIT
ORGANIZATIONAL THEORY FINAL EXAM ANSWER KEY
Part I

Part I
PART I
1. C
2. B
3. D
4. D
5. B
6. C
7. D
8. D
9. B
10. C
11. B
12. B
13. C
14. A
15. E

PART II

PART I
1. B
2. C
3. D
4. E
5. A
6. G
7. F
8. H
9. I
10. J

Part III
1. Challenges
Globalization: The cliché that the world is getting smaller is dramatically true for today’s
●
organizations. With rapid advances in technology and communications, the time it takes to exert influence
around the world from even the most remote locations has been reduced from years to only seconds.
 Intense Competition: This growing global interdependence creates new advantages, but it also
●
means that the environment for companies is becoming extremely competitive. Customers want low
prices for goods and services.
Ethics and Social Responsibility: Today’s managers face tremendous pressure from the
●
government and the public to hold their organizations and employees to high ethical and professional
standards.
Speed and Responsiveness: To respond quickly and decisively to environmental changes,
●
organizational crises, or shifting customer expectations is another challenge of today's organization. For
much of the twentieth century, organizations operated in a relatively stable environment, so managers
could focus on designing structures and systems that kept the organization running smoothly and
efficiently.
The Digital Workplace: Many traditional managers feel particularly awkward in today’s
●
technology-driven workplace. In today’s workplace, many employees perform much of their work on
computers and may work in virtual teams, connected electronically to colleagues around the world.
Diversity: As organizations increasingly operate on a global playing field, the workforce—as well
●
as the customer base—grows increasingly diverse.
2. Purpose
Organizations exist to do the following:
● Bring together resources to achieve desired goals and outcomes

● Produce goods and services efficiently

● Facilitate innovation

● Use modern manufacturing and information technologies

● Adapt to and influence a changing environment

● Create value for owners, customers, and employees

● Accommodate ongoing challenges of diversity, ethics, and the motivation and coordination of

employees
2. Goal approach Effectiveness indicators are;
Indicators tracked with the goal approach include:
Profitability—the positive gain from business operations or investments after expenses are
●
subtracted
Market share—the proportion of the market the firm is able to capture relative to competitors
●
Growth—the ability of the organization to increase its sales, profits, or client base over time
●
Social responsibility—how well the organization serves the interests of society as well as itself
●
Product quality—the ability of the organization to achieve high quality in its products or services
●
 TMA ANSWER KEY

Part I Weight 20%

PART I
1. True
2. True
3. True
4. True
5. True
6. True
7. True
8. True
9. True
10. False
11. B
12. C
13. A
14. E
15. D

Part II Weight 15%

1. Organizational theory is the study of the structures of organizations. Four major theories
contribute to this study – classical organizational theory, human relations or neo-classical
theory, contingency or decision theory and modern systems theory.
2. Modern theory, also called modern organizational theory, includes multiple management
development approaches. This theory considers interactions between people within an
organization and the surrounding environment, as well as the interpersonal interactions
between members of the organization.
3. Five common approaches — functional, divisional, matrix, team, and networking—help
managers determine departmental groupings (grouping of positions into departments). The
five structures are basic organizational structures, which are then adapted to an organization's
needs.
4. Purpose
Organizations exist to do the following:
2. Bring together resources to achieve desired goals and outcomes
3. Produce goods and services efficiently
4. Facilitate innovation
5. Use modern manufacturing and information technologies
6. Adapt to and influence a changing environment
7. Create value for owners, customers, and employees
8. Accommodate ongoing challenges of diversity, ethics, and the motivation and coordination of
employees