MGT504 MCQS by KHURAM

MGT504 - Quiz # 4 – (Lecture # 1-40) Fall 2012
SOLVED by MSBA_124 and Khurram Saeed

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Attempted by KHURRAM SAEED
Question # 1 of 30 ( Start time: 04:44:29 PM ) Total Marks: 1
Which one of the following is not one of the eight steps in the decision making
process?
Identifying the problem
Analyzing alternative solutions
Implementing the decision
Delegating the decision making
Which of the following is not a reason of making an organization?
Use modern manufacturing and computer-based technology
Adapt to and influence a changing environment
Reducing Inflation
Create value for owners, customers and employees
Collaboration between which of the two departments is most desired for the
success of innovation in an organization?
Select correct option:
Technical and marketing department
Technical and finance department
Finance and marketing department
Marketing and IT department
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Organizational dimensions fall into two types. One is the structural dimension
and the other one is
Geographic dimension
Environmental dimension
Contextual dimension.
Hybrid dimension
Which one of the following is not an essential element in defining the word
“organization”?
Social entity
Goal directed
Deliberately structured
Must be commercial
What is the effectiveness criterion for Government?
Contribution to community affairs
Satisfactory transactions
Obedience to laws, regulations
Quality of goods and services
Which of the following is NOT a mechanism of explicit knowledge management?
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Data warehousing
Knowledge mapping
Dialogue
Electronic libraries
Which one of the following approaches considers the satisfaction of all the stake
holders as the best measurement for the performance of an organization?
Goal Approach
Resource-Based Approach
Internal Process Approach
Constituency approach
In which type of departmental technology, both the task variety and task
analyzability are low?
Engineering technology
Non routine technology
Routine technology
Craft technology
In which one of the following types of culture, Innovation, creativity and risk
taking are valued and rewarded?
The Mission Culture
The Clan Culture
The Adaptability Culture
The Bureaucratic Culture

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Task variety and analyzability are the two most important elements for
rationalizing and deciding which one of the following,
Manufacturing technology
Departmental technology
Service technology
None of the above
Narratives based on true events that are frequently shared among organizational
employees and told to new employees to inform them about an organization are
known as,
Artifact
Rite
Ritual
Stories
Employees of an organization will perform to a narrow range of tasks if there is

high level of
Formalization
Diversity
Specialization
Decentralization
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Which of the following provides members with a sense of organizational identity
and generates a commitment to beliefs and values that are larger than
themselves?
Tradition
Custom
Norms
Culture
Which of the following strategy is to innovate, take risks, seek out new
opportunities, and grow?
Prospector
Defender
Reactor
Analyzer
What is measured as the amount of resources used to produce a unit output?
Efficiency
Effectiveness
Legitimacy
Hierarchy
What is the reason that most companies want to maintain a smaller size these
days. Which one of the following options is true for small size organizations?
Companies want to be more responsive to customers
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Companies want to quickly adjust with external changes
Companies with smaller size have been more successful of late
All of the above
Which type of decisions requires bargaining and conflict resolution?
Non Programmed decisions
Emergency decisions
Programmed decisions
None of the given options
Which of the following is a formal linkage that occurs when a member of the
board of directors of one company sits on the board of directors of another
company?
Interlocking directorate
Professional Linkage
Interdepartmental Linkage
Board of directorates
Which of the following is the problem associated with strong and stable
corporate culture?
It creates hurdles in changing with turbulent environment
It can clash with sub cultures
It will make organization “learning organization” with variety in culture
None of the given option is true
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Engineering department of a large multinational organization is dealing with

multiple tasks which are thoroughly monitored. What type of departmental
technology is being used in that department?
Engineering technology
Non routine technology
Routine technology
Craft technology
Strategic Business Unit (SBU) is an example of which type of organizational

structure?
Functional structure
Divisional structure
Matrix structure
Hybrid Structure
Business environment in Pakistan is very dynamic and uncertain. What type of

structural design will be suitable here for a multinational company in this
situation which has diversified businesses of different products?
Select correct option:
Geographic structure
Matrix structure
Strengths and Weaknesses of Divisional Organization Structure

Strengths
1. Suited to fast change in unstable environment
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2. Leads to client satisfaction because product responsibility and contact points are clear
3. Involves high coordination across functions
4. Best in large organizations with several products
5. Decentralizes decision making
What is meant by the vertical flow of communication from lower level to one or
more higher levels in the organization?
Upward communication
Downward communication
Formal Communication
Horizontal communication
Which of the following may be the barrier for change in an organization?
Failure to perceive benefits
Uncertainty avoidance
Fear of loss
All of the given options
Which one of the following requires the use of standardized methods of work
processing and finding one best way for doing a job?
Scientific management
Time and motion studies
Administration principles
Hawthorne studies
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What is the name of American management guru, who declared that “the fortune
500 is over” in early 1990’s?
John Wohler
Adam Smith
Peter Drucker
Joan Woodward
Which one of the following may be the best description for a learning
organization?
An organization where lot of training takes place
An organization where employees are aligned with business strategy
An organization which develops a culture of constant learning from the past

experiences
None of the above
Attempted by ULFAT JAFERY
Question # 1 of 30 ( Start time: 03:47:41 PM)
What is the advantage of e-commerce in the large size service businesses like those of
banks?
Organizations can overcome the barrier of time and place
Organizations can manage to risk of financial loss
Organizations can have more branches for the customers
None of the above
The Internet tears down boundaries of time and space, enabling-organizations to create entirely new business
and reach markets they never could have before. Page 6
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In which type of organizational structure, a company can become truly global with the
maximum use of IT in only a single building?
Matrix structure
Network structure
Question # 3 of 30: Organizations are the social entities which are linked with which one
of the following aspects.
External Environment
Internal Environment
Hybrid Environment
Uncertain Environment
Organizations are (1) social entities that (2) are goal directed (3) are designed as deliberately structured
and coordinator activity systems, and (4) are linked to the external environment.
Who proposed division of labor?
Jean Woodwards
F W Taylor
Henri Fayol
Adam Smith
Adam Smith, an early economist, suggested that productivity would rise significantly when the
division of labor principle was usedAdam Smith, an early economist, suggested that productivity
would rise significantly when the division of labor principle was used.
http://www.enotes.com/division-labor-reference/division-labor-174234
Interpersonal skills of employees are most important for which type of the following
business?
Service organization
Manufacturing organization
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None of them
Both of them
Service employees need social and interpersonal skills as well as technical skills. Page 60
Why do the companies use venture teams under the ambidextrous approach in the
organizations?
To produce more entrepreneurs in the organizations
To enhance the level of innovation in the organization
To enhance the company profits through this approach
None of the above
Venture teams are a recent technique used to give free rein to creativity within organizations. Page 105
Which one of the following types of forces creates pressure on management to copy or
model the practices of other organizations when the situation is indecisive and
uncertain?
Mimetic force
Coercive force
Normative force
None of the above
Mimetic Forces: Most organizations especially business organizations, face great uncertainty. It is not clear to
senior executives exactly what products, services, or technologies will achieve desired goals, and sometimes the
goals themselves are not clear. In the face of this uncertainty mimetic forces occur, which is the pressure to copy
or model other organizations.
Which one of the following is not a basic function of management?
Planning
Organizing
Motivating
Controlling
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Which of the following is a part of organizational culture?
Values
Beliefs
Feelings
According the population Ecology view, which factor determines about the survival and
failure of organizations?
Changing environment
Stable environment
Low uncertainty environment
Low – moderate uncertainty environment
According to the population ecology view, when looking at an organizational population as a

whole, the changing environment determines which organizations survive or fail.
What type of change is more suitable in an environment which is stable?
Incremental change
Random change
Business process re-engineering
None of the above
Which of the following structure promotes a focus on teamwork and collaboration?
Hybrid structure
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Vertical Structure
Horizontal Structure
None of the above
HORIZONTAL STRUCTURE
Strangths: 4. Promotes a focus on teamwork and collaboration
Which one of the following decision approaches indicated that organization – level
decisions involved many managers and that a final choice was based on a coalition
among those mangers?
Carnegie Model
Garbage Can Model
Incremental decision process model
None of the above
Research by the Carnegie group indicated that organization – level decisions involved many managers
and that a final choice was based on a coalition among those mangers.
Which of the following formally stated definitions of business scope and outcomes the
organization is trying to achieve?
Operative goals
Strategic goals
Big goals
Technical goal
Official goal statements typically define business operations, Page 17
Which of the following is the first stage in the development of the organization?
Elaboration Stage
Formalization Stage
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Collectivity Stage
Entrepreneurial Stage
1. Entrepreneurial Stage: When an organization is born, page 83
When the environmental domain of an organization remains same over a period of time
then it is called as,
Simple environment
Complex environment
Stable environment
Unstable environment
An important phenomenon of modern day organization is the use of
Information Technology
Classical Management
Television
Bureaucratic Structure
How many steps are involved in the rational decision making approach?
Three
Five
Eight
Which of the following can be organized according to individual product, services,

product groups, major projects or programs, divisions, businesses, or profit centers?
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Matrix structure
Geographical structure
The term divisional structure is used here as the generic term for what is some times called a product structure
or strategic business units. With this structure, divisions can be organized according to individual product,
services, product groups, major projects or programs, divisions, businesses, or profit centers. The distinctive
feature of a divisional structure is that grouping is based.
Which one of the following may be the best description for a learning organization?
An organization which develops a culture of constant learning from the past experiences
None of the above
Which of the following directs the attention toward the production and delivery of value
to the customer?
Vertical Structure
Hybrid structure
None of the above
Horizontal structure Directs the attention of everyone toward the production and delivery of value
to the customer
Which of the following is characterized by strategic focus on the external environment

through flexibility and change to meet customer needs?
Bureaucratic culture
Clan culture
Mission culture
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Entrepreneurial culture
The adaptability / entrepreneurial culture is characterized by strategic focus on the external environment
through flexibility and change to meet customer needs, the culture encourages.
What is the reason that most companies want to maintain a smaller size these days.
Which one of the following options is true for small size organizations?
Companies want to be more responsive to customers
Companies want to quickly adjust with external changes
Companies with smaller size have been more successful of late
All of the above
In the American market, Phillips Corporation temporarily has adopted a strategy of

temporarily using the organic structure for generation of new ideas whenever needed.
Which one of the following techniques they are using for maintaining an ambidextrous
approach in the organization?
Switching structures
Separate creative department
Venture teams
All of the above
Switching Structures:Switching structures mean an organization creates an organic structure

when such as structure is needed for the initiation of new ideas. Someof the ways organizations
have switched structures to achieve the ambidextrous approach are as follow.
What is the effectiveness criterion for Suppliers?
Contribution to community affairs
Satisfactory transactions
Obedience to laws, regulations
Quality of goods and services
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Which of the following may be the barrier for change in an organization?
Failure to perceive benefits
Uncertainty avoidance
Fear of loss
Which one of the following is not a part of horizontal linkages model?
Specialization
Boundary Spanning
Horizontal Linkages
Total Quality Management
Ref: HORIZONTAL LINKAGES MODEL
The organization design for achieving new product innovation involves three components ---
departmental specialization, boundary spanning, and horizontal linkages. (Page no 108 of
handouts)
Identify which of the following organizations possess a strong and flexible culture.
Flat structure organizations
Bureaucratic organizations
Learning organization
Learning organization has strong, adaptive cultures that incorporate the following values.
Which one of the following describes that organizations should try to adapt to the
changes in their external environment?
Contingency theory
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Scientific Management theory
Theory X
Theory Y
Which of the following strategy is to innovate, take risks, seek out new opportunities,
and grow?
Prospector
Defender
Reactor
Analyzer
Attempted by ABDUL SABOOR
Question: Imran is a general manager in a restaurant. According to the nature of the

business, which one of the following is the most important resource of his organization?
Capital
Inventory
Human resource
Building
What has been the impact of IT on the internal and external coordination of the
organizations?
Coordination has improved because of IT Page# 75
Coordination has reduced because of IT
Coordination has no impact because of IT
Coordination is not required because of IT
An external environment may consist of different sub divisions or sectors. Which one of
the following is a sub division of external environment?
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Government regulations
Economic conditions
Industry's situation
All of them
Which of the following is not a part of Porters model and strategies?
Differentiation
Low-cost leadership
Focus
Real GDP
Which one of the following is NOT a step in the process of ecological change?
Variation
Selection
Innovation
Retention
Which of the following is a component of organizational design for the innovation of new
product which means that technical, marketing and production people share ideas and
information and the decision to launch a new product is ultimately a joint decision
among all three departments.
Departmental specialization
Boundary spanning
Horizontal linkages Page 107
None of the above
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Business environment in Pakistan is very dynamic and uncertain. What type of structural
design will be suitable here for a multinational company in this situation which has
diversified businesses of different products?
Geographic structure
Matrix structure
Which one of the following means the radical redesigning of business processes to bring
about dramatic performance improvements?
Incremental change
Re-engineering
Total Quality Management
None of the above
Page 110 - Reengineering is a cross – functional initiative involving the radical redesign of business processes to
bring about simultaneous changes in culture, structure, and information technology and produce dramatic
performance improvements in areas such as customer service, quality, cost and speed.
Question: Which of the following is the lowest form of interdependence among

departments?
Sequential
Reciprocal
Pooled
Pooled: Pooled interdependence is the lowest form of interdependence among departments.(P-63)
At which stage of organization life cycle development, red tape crisis becomes pertinent
in the organization?
Entrepreneurial stage
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Collectivity stage
Formalization stage page 83
Elaboration stage
Which of the following identifies the grouping together of individuals into departments
and of departments into the total organization?
Organization policy
Organization structure
Organization environment
Organization reputation
Which of the following structure promotes a focus on teamwork and collaboration?
Hybrid structure
Vertical Structure
None of the above
Which one of the following is a type of culture that is characterized by strategic focus on
the external environment through flexibility and change to meet customer needs and it
can also detect signals for the external environment?
The Mission Culture
The Clan Culture
The Adaptability Culture
The Bureaucratic Culture
The adaptability / entrepreneurial culture is characterized by strategic focus on the

external environment through flexibility and change to meet customer needs.

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Which one of the following was a contribution of Joan Woodward, who was a British
industrial sociologist?
Study of services technology
Study of computer technology
Study of manufacturing technology
None of the above
Which one of the following includes the assignment of goals and tasks to be
accomplished by employees?
Job design
Job rotation
Job satisfaction
Job motivation
JOB DESIGN
Job design includes the assignment of goals and tasks to be accomplished by employees. (Page-65)
For which type of culture, managers tend to be somewhat isolated, political and
bureaucratic and as a result, they do change their strategies quickly to adjust for taking
advantage of changes in their business environments?
Adaptive Corporate Culture
Unadaptive Corporate Culture Page 94 in table
None of the above
Both of the above
Which one of the following may be the best description for a learning organization?
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An organization which develops a culture of constant learning from the past experiences
None of the above
Learning organizations keep everyone in constant touch with the environment so they
can spot threats and opportunities, enabling the organization to respond immediately.
The visual and graphical display of the structure of an organization is called,
Organizational graph
Organizational chart
Organizational matrix
Gant chart
Which of the following means that one thing depends on other things, and for
organizations to effective, there must be a “goodness of fit” between their structure and
the conditions in their external environment?
Contingency Page 4
Competency
Consistency
None of the given option
At which stage of organization life cycle development, activities like installation of rules,
procedures and development of control systems are performed?
Collectivity stage
Formalization stage page 83
Elaboration stage
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Philips Electronics has a stable market share and wants to maintain it. For this purpose,
top management avoids risk taking and keeps making efforts for enhancing internal
efficiency of different operations. Which of the following strategy is being used by them?
Defender
Analyzer
Prospector
Reactor
Question # 24: When activities among departments require strong coordination over a
long period of time, then which one of the following is often the solution?
Task force
Full time integrator
Cross functional team
Functional team
When activities among departments require strong coordination over a long period of time, a cross –
functional team is often the solution.
At which stage of organization life cycle development, large number of employees cause
problems and need for effective leadership remains high in the organization?
Collectivity stage
Formalization stage
None of the above
Crisis: Need for leadership as the organization starts to grow, the larger number of employees causes
problems. The creative and technically oriented owners are confronted with management Page 83
Boundary spanning, planning, and forecasting is normally associated with which one of
the following,
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Low – moderate uncertainty environment
Low uncertainty environment
High-moderate uncertainty
High uncertainty environment
The high uncertainty environment is both complex and unstable and is the most difficult environment
from a management perspective. Organizations are large and have many departments, but they are also
organic. A large number of management personnel are assigned to coordination and integration, and
the organization uses boundary spanning, planning, and forecasting.
Which of the following has a primary focus on the involvement and participation of the
organization’s members and on rapidly changing expectations, from the external
environment?
Bureaucratic culture
Clan culture
Mission culture
Entrepreneurial culture
THE CLAN CULTURE

The clan culture has a primary focus on the involvement and participation of the organization’s members and on
rapidly changing expectations, from the external environment. Page 91
What type of quality enhancement mechanism infuses quality values throughout every
activity within a company through a slow but a step wise process?
Total Quality Management page 101
Business Process Re-engineering
MBO
All of the above
Which one of the following lies higher in the hierarchy?
Administrative core
Technical core
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Both have same hierarchy level
None of the above
The administrative core is above the technical core in the hierarchy. Page 109
Employees of an organization will perform to a narrow range of tasks if there is high

level of
Formalization
Diversity
Specialization
Decentralization
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MGT504 - Quiz # 4 – (Lecture # 1-40) Fall 2012

SOLVED by MSBA_124 and Khurram Saeed

Question # 1 of 30 ( Start time: 04:44:29 PM ) Total Marks: 1

Identifying the problem

Analyzing alternative solutions

Implementing the decision

Delegating the decision making

Question # 2 of 30 ( Start time: 04:45:05 PM ) Total Marks: 1

Which of the following is not a reason of making an organization?

Use modern manufacturing and computer-based technology

Adapt to and influence a changing environment

Create value for owners, customers and employees

Question # 3 of 30 ( Start time: 04:46:05 PM ) Total Marks: 1

Select correct option:

Technical and marketing department

Technical and finance department

Finance and marketing department

Marketing and IT department

To Join us MGT504, MGT705, FIN611 and ECO404 related help

Question # 5 of 30 ( Start time: 04:48:08 PM ) Total Marks: 1

Question # 6 of 30 ( Start time: 04:48:46 PM ) Total Marks: 1

What is the effectiveness criterion for Government?

Contribution to community affairs

Obedience to laws, regulations

Quality of goods and services

Question # 7 of 30 ( Start time: 04:49:04 PM ) Total Marks: 1

Which of the following is NOT a mechanism of explicit knowledge management?

To Join us MGT504, MGT705, FIN611 and ECO404 related help

Question # 8 of 30 ( Start time: 04:50:18 PM ) Total Marks: 1

Internal Process Approach

Question # 9 of 30 ( Start time: 04:51:43 PM ) Total Marks: 1

Non routine technology

Question # 10 of 30 ( Start time: 04:53:08 PM ) Total Marks: 1

The Mission Culture

The Clan Culture

The Adaptability Culture

The Bureaucratic Culture

To Join us MGT504, MGT705, FIN611 and ECO404 related help

Question # 11 of 30 ( Start time: 04:54:31 PM ) Total Marks: 1

None of the above

Question # 12 of 30 ( Start time: 04:55:22 PM ) Total Marks: 1

Question # 13 of 30 ( Start time: 04:56:27 PM ) Total Marks: 1

Employees of an organization will perform to a narrow range of tasks if there is

Question # 14 of 30 ( Start time: 04:56:47 PM ) Total Marks: 1

To Join us MGT504, MGT705, FIN611 and ECO404 related help

Question # 15 of 30 ( Start time: 04:57:40 PM ) Total Marks: 1

Question # 16 of 30 ( Start time: 04:58:16 PM ) Total Marks: 1

What is measured as the amount of resources used to produce a unit output?

Question # 17 of 30 ( Start time: 04:58:52 PM ) Total Marks: 1

Companies want to be more responsive to customers

To Join us MGT504, MGT705, FIN611 and ECO404 related help

Companies with smaller size have been more successful of late

All of the above

Question # 18 of 30 ( Start time: 04:59:19 PM ) Total Marks: 1

Which type of decisions requires bargaining and conflict resolution?

Non Programmed decisions

None of the given options

Question # 19 of 30 ( Start time: 05:00:16 PM ) Total Marks: 1

Question # 21 of 30 ( Start time: 05:02:24 PM ) Total Marks: 1