Exam 9: Organization Size,Life Cycle,and Decline

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Small companies are standardized,often mechanistically run,and complex.

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_____ is accused of many sins,including inefficiency,rigidity,and demeaning routinized work that alienates both employees and the customers an organization tries to serve.

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Explain the role of personnel ratios in an organization's structure.

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A characteristic of bureaucracy relates to personnel ratios for administrative,clerical,and professional support staff.The most frequently studied ratio is the administrative ratio.Two patterns have emerged.The first is that the ratio of top administration to total employees is typically smaller in large organizations,indicating that organizations experience administrative economies as they grow larger.The second pattern concerns clerical and professional support staff ratios.These groups tend to increase in proportion to organization size.The clerical ratio increases because of the greater communication and reporting requirements needed as organizations grow larger.The professional staff ratio increases because of the greater need for specialized skills in larger,complex organizations.

The faulty action stage of an organizational life cycle precedes the crisis stage.

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Overcommunication,during turbulent times,does more harm than good.

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As organizations become larger,greater centralization is necessary.

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Open communication about a pending layoff is always harmful.

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Clan control cannot function alone; it needs to be linked with bureaucratic control.

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A(n)_____ implies incorporating structures and processes that are appropriate for both small-company creativeness and large-company systems for exploiting innovations.

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The dissolution stage is not irreversible,major organizational restructuring can still turn things around.

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What is clan control?

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Which of the following statements best describes the elaboration stage of organizational life cycle?

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Every time a layer of bureaucracy is added,information gets diluted.

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What are the benefits and drawbacks of a large organization?

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Alphacone Inc.is a multinational plasticware manufacturing company.It operates in nine countries,and employs around 7000 people.The large firm is difficult to manage,and the director is looking for a way to capture the mindset and advantages of small businesses to turn the management process around.Which of the following approaches should the director of Alphacone Inc.use?

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In the faulty action stage of an organizational life cycle,indicators of poor performance cannot be ignored.

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Carter is a middle-level manager in his organization.He was satisfied with his job for the first three years,but he has decided to quit as he feels stifled by the bureaucracy and lack of innovation.Carter's organization is most likely in the _____ of the organizational life cycle.

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During times of high uncertainty,the most effective structure is one that loosens the lines of command.

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As organizations increase in size,the _____ declines and the ratios for other support groups increase.

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The goal of a company in the elaboration stage is _____.

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