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1. Final Exam
Dr. Nehal Elhelaly
OT
2023/2024

2. Parts Excluded from the Final Exam
Ch01 & Ch03 are EXCLUDED

3. Parts Covered in the Final Exam
Ch02: Strategy, Organizational Design, & Effectiveness
Ch04: Organizational Environment
Ch05: Organization Size, Life Cycle, and Bureaucracy
Ch06: Organizational Technologies
Ch07: Organizational Change
Ch08: Organizational Decision Making & Conflict

4. Practice Questions I
Final Exam
Dr. Nehal Elhelaly
OT
2023/2024

5. 1. The specific measurable outcomes pertaining to the primary
tasks of an organization that the organization strives to achieve are
known as:
a)Official goals
b)Organizational goals
c)Operative goals
d)Primary goals
e)None of the other choices
Answer: c

6. 2. Which of the following is NOT among the commonly set overall
performance goals?
a)Increasing profitability.
b)Achieving more growth.
c)Offering services within a given budget.
d)Increasing the triple-bottom-line impact.
e)Obtaining more funds to finance operations.
Answer: e

7. 3. Walmart’s desire to obtain high-quality supplies at low costs is an
example of a(n) ____goal.
a)Overall performance.
b)Efficiency.
c)Resources.
d)Productivity.
e)Market.
Answer: c

8. 4. Which of the following statements about differentiation strategy is TRUE?
a)Implementing a differentiation strategy requires deploying substantial cost
reduction techniques.
b)A differentiation strategy is associated with centralized authority and standard
operating procedures.
c)A differentiation strategy targets innovator customers who are also concerned with
price.
d)Implementing a differentiation strategy helps an organization overcome the threat
of substitute products.
e)None of the other statements is true.
Answer: d

9. 5. Which strategy of the following requires massive investments in
research and product design to develop products with distinctive
features to appeal to various markets?
a)Low cost.
b)Differentiation.
c)Defender.
d)Reactor.
e)Focus.
Answer: b

10. 6. Which of the following better describes a defender strategy?
a)It is concerned with innovation, risk taking and expanding into new
markets.
b)It is more appropriate when an organization is facing rapid changes in
customer needs.
c)It is concerned with producing reliable, high-quality products to maintain
steady growth.
d)It responds to market dynamics without a clear strategy.
e)None of the other choices.
Answer: c

11. 7. Which organizational design does the
figure to the right best describes?
a)Efficiency design.
b)Mechanistic design.
c)Decentralized design.
d)Participative design.
e)Organic design.
Answer: e

12. 8. To assess its organizational effectiveness, Root evaluates its
performance based on several metrics including profitability, ROI,
market share, and social responsibility. Which approach does Root
utilize?
a)Goal approach.
b)Resource-based approach.
c)Internal process approach.
d)Strategic constituents approach.
e)Organizational effectiveness approach.
Answer: a

13. 9. The external forces from outside groups such as customers,
suppliers, and competitors that directly affect an organization’s
ability to secure resources are known as the:
a)External environment.
b)General environment.
c)Specific environment.
d)External stakeholders.
e)Organizational environment.
Answer: c

14. 10. Which of the following statements about environmental uncertainty is TRUE?
a)Uncertainty makes it difficult to predict changes in the external environment.
b)Uncertainty increases the risk of failure for organizational responses to market
dynamics.
c)Environmental complexity and environmental dynamism are two main causes of
uncertainty.
d)When the environment is complex but stable, organizations are facing a low-
moderate uncertainty.
e)All the other statements are true.
Answer: e

15. 11. Walmart is a giant retail chain that depends on tens of thousands of global
suppliers to satisfy the diverse yet predictable demands of various customer
segments. In this scenario, Walmart is operating in a(n)__________ environment.
a)Simple, stable.
b)Complex, stable.
c)Simple, unstable.
d)Complex, unstable.
e)Complex, dynamic.
Answer: b

16. 12. In response to the increased environmental uncertainty facing organizations in
current times, organizations may implement each of the following EXCEPT:
a)Remove departments to reduce their internal complexity.
b)Create more boundary spanning roles.
c)Increase organizational differentiation.
d)Employ more horizontal integrators.
e)All the other statement are true.
Answer: a

17. 13. A strategic alliance among two or more organizations that agree to establish and
share the ownership of a new business is known as:
a)Merger.
b)Acquisition.
c)Joint venture.
d)License agreement.
e)Supplier arrangement.
Answer: c

18. 14. All of the following are reasons why an organization may seek to grow EXCEPT:
a)Attract skilled employees.
b)Have more power in the market place.
c)Satisfy growing demands of its customers.
d)Become more innovative and adaptive to market changes.
e)Control distribution channels.
Answer: d

19. 15. Large organizations are generally characterized by all the following EXCEPT:
a)They have the resources that enable them to compete globally.
b)They are more resilient and thus able to recover from crises quickly.
c)They are more attractive to employees.
d)They have complex, organic structure.
e)They have the capabilities to develop complicated products.
Answer: d

20. 16. Which organizational structure would grant an organization the flexibility of a
small organization along with the power and large resources of a big organization?
a)Organic structure.
b)Mechanistic structure.
c)Bureaucratic structure.
d)Divisional structure.
e)None of the other choices.
Answer: d

21. 17. Smarty is a small organization with no written rules that focuses on developing
innovative smart watches to survive competition with Apple and Samsung. In this
scenario, Smarty is in the ________ phase of its life cycle.
a)Introduction.
b)Early growth.
c)Continuous growth.
d)Maturity.
e)Decline.
Answer: a

22. 18. An organization in the continuous growth stage may experience all of the
following EXCEPT:
a)An accelerating growth in its sales.
b)The development of new products.
c)Market expansion.
d)Becoming large and bureaucratic.
e)The focus of top management on strategy and planning.
Answer: d

23. 19. A deliberate and strategic process through which an organization reduces its size,
primarily by eliminating positions or entire departments within the organizational
structure is known as:
a)restructuring
b)downsizing.
c)declining.
d)departmentalizing.
e)formalizing.
Answer: b

24. 20. Which of the following statements about bureaucracy is NOT true?
a)It has the ability to ensure more efficient functioning of organizations.
b)It provides an effective way to prevent abuses of power.
c)It provides systematic and rational ways to organize and manage tasks too
complex to be understood and handled by a few individuals.
d)It employees technically qualified employees and thus enhances creativity and
rapid responses of organizations.
e)Organizations may overcome the problems of bureaucracy by implementing the
incident command system.
Answer: d