Exam 9: Organization Size, Life Cycle, and Decline

What has research on personnel ratios found?

The elaboration stage involves the installation and use of rules, procedures, and control systems.

The manager of an established small manufacturing plant said, "We can't compete with large organizations, because they have the advantage of economies of scale." Use arguments from the chapter to discuss his position, explaining any factors that might tend to counter it. How should he manage in order to take advantage of the firm's small size?

The incident commander is ultimately responsible for all activities that occur, and everyone knows clearly who is in charge of what aspect of the situation.

The bureaucratic control system was developed to maintain the efficiency and control benefits of bureaucracy yet prevent the problem of slow response to crises.

Discuss the causes for organizational decline. List and define the stages of organizational decline.

Increased training can substitute for bureaucratic rules and procedures.

Carson is the manager of Cutter's Consulting, a consulting company comprised of professionals from different fields. What would Carson be wise to do in such a company?

There are ten stages of life cycle development an organization must generally go through in order to reach the final stage when rewards are personal and aimed at those who contribute to organizational success.

Which of the following is based on the idea that the organization can glide smoothly between a highly formalized, hierarchical structure that is effective during times of stability and a more flexible, loosely structured hierarchy when needed to respond well to unexpected and demanding environmental conditions?

In a large company going through the organizational life cycle, the replacement of top management may occur in its elaboration stage as it struggles to revitalize.

Which of the following is a factor that causes organizational decline?

Weber's prediction of the triumph of bureaucracy proved accurate.

Max Weber wrote during a time in world history when favouritism and payoffs were common techniques for personnel action. He was opposed to such methods. What did he recommend as the basis of control for organizational decisions and activities?

Which of the following was developed to maintain the efficiency and control benefits of bureaucracy yet prevent the problem of slow response to crises?

An e-commerce organization is in its sixth month of online operations selling academic regalia for graduation. The founders had long had their own personal Web pages, and had stumbled upon an inexpensive source for the sewing of gowns. They invested all their savings and took out a loan in order to finance the inventory and equipment needed to go into business. By March of its first year of operations, an unexpectedly large number of orders reached the company. The founders devoted their full energies to getting product where it needed to be in time for graduation. At odd hours of day and night, they could be found doing anything from the job of the information systems specialist they had recently hired, to the job of the mail clerks. As this company grows and takes on related product lines, what would you expect to happen as they go through the stages of development?

As organizations become larger, a smaller percentage of technical and professional support staff is recommended.

Shelli's organization operates in an industry with a great deal of competition that produces a commodity-type product. She measures success based on cost control and profit maximization. Which form of control does she use?

What are small businesses characterized by, in contrast to large businesses?

Compare and contrast the three types of organizational control strategies.