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1. What are formal structures designed for?
a. To support the strategic direction of the firm by enhancing efficiency and effectiveness
b. To clarify roles and responsibilities
c. To ensure accountability and oversight
d. To create a coherent organization chart
2. How does the degree of differentiation change over the life an organization?
a. Differentiation generally remains stable throughout the life of the organization
b. As the number of employees increases, there is greater differentiation
c. As an organization becomes more successful and profitable, there is a greater need to differentiate tasks
d. As a workforce becomes more embedded and cross-trained, the degree of differentiation diminishes
3. Organizations that have a more decentralized decision-making process tend to be structured in what way?
4. If a merger makes good business sense, an organization might not pursue it due to which of the following reasons?
a. Shareholders may be upset
b. It may be too expensive
c. The cultures of the two organizations clash
d. There is not unanimity among the board
5. Which kind of power tends to be least important on its own?
a. Positional power
b. Network power
c. Knowledge power
d. Personality power
6. Which of the following tends to be the least popular power tactic?
a. Referring to a higher authority
c. Developing coalitions
d. Applying sanctions