According to the principle of systems thinking, to create a learning organization, ________.
A) decision-making should be centralized
B) managers must recognize the effects of one level of learning on the others
C) span of control should be narrow
D) middle and lower-level managers should be discouraged from risk taking
Question 2A ________ is a business authorized to sell a company's products in a certain area.
A) cartel
B) joint venture
C) franchise
D) collusion
Question 3Which of the following terms refers to the authority that an organization gives to its members to receive and use organizational resources?
A) enhancement rights
B) patents
C) property rights
D) licenses
Question 4Cultural values of the organization are most likely to be derived from ________.
A) the practices followed by the competitors
B) the beliefs of the founders
C) the preferences of the customers
D) the opinions of the industry experts
Question 5If the corporate culture does not support a strategic change, but yet the change is important to the corporation, then _____.
a. middle managers must be relied on more
b. it may be necessary to modify the strategy to fit more closely with the current culture
c. key participants will readily accept the strategy
d. only technological change will be effective
e. all of the above
Question 6According to Kotter and Heskett, ________ cultures are those that value innovation and encourage and reward experimenting and risk taking by middle and lower-level managers.
A) associative
B) inert
C) mechanistic
D) adaptive
Question 7Which of the following statements about the difference between transaction cost theory and resource dependence theory is true?
A) Transaction cost theory proposes the use of a merger as an interorganizational strategy but resource dependence theory advocates the use of joint venture.
B) Transaction cost theory explains how to manage symbiotic interdependencies but resource dependence theory explain how to manage competitive interdependencies.
C) Transaction cost theory is a better predictor than a resource dependence theory of why companies choose a certain form of interorganizational strategy.
D) Resource dependence theory proposes the use of strategic alliances, but transaction cost theory recommends not using alliances.
Question 8When an organization faces a large-scale change with a high probability of cultural resistance, the OD practitioner and management must determine _____.
a. how to reinforce the new value system
b. a way to break the culture
c. the budgeting process in the reorganization
d. the economic, political, and cultural forces at work
e. whether strategic change is really a viable alternative
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