Deck 11: Organizational Transformations: Birth, Growth, Decline, and Death

Question 1

Power struggles between top managers and lower- level managers are most likely to occur in the stage of Greiner's model.

A)delegation
B)direction
C)collaboration
D)creativity

Answer 1

A

Question 2

Which of the following theorists assume that organizations have the ability to change?

A)Natural selection theorists
B)Isomorphism theorists
C)Population ecology theorists
D)Adaptation theorists (including Greiner)

Answer 2

D

Question 3

Which of the following statements about generalists and specialists is true?

A)Generalists typically have superior products.
B)A specialist is better able to survive in an uncertain environment than a generalist.
C)Specialists and generalists can coexist in an environment.
D)A generalist is able to provide better customer service than a specialist.

Answer 3

C

Question 4

According to population ecology theorists, births diminish over time because:

A)companies are unwilling to adapt to the institutional environment.
B)the new environment lacks legitimacy.
C)isomorphism arises.
D)existing organizations may engage in actions, such as extensive advertising, to deter new entrants.

Question 5

An organization will gain first- mover advantages when it pursues which of the following strategies?

A)Specialist strategy
B)r- strategy
C)K- strategy
D)Generalist strategy

Question 6

is a theory that studies how organizations can increase their ability to grow and survive in a competitive environment by satisfying their stakeholders.

A)Population ecology theory
B)Coercive isomorphism
C)Institutional environment
D)Institutional theory

Question 7

In Greiner's growth through direction stage, an organization may experience a crisis of .

A)red tape
B)control
C)autonomy
D)leadership

Question 8

Which of the following is not included in the typical business plan?

A)a functional analysis of the jobs to be done
B)a list of the resources required for implementation
C)a time line
D)a mission statement

Question 9

Greiner's model of growth suggests all of the following except:

A)an organization should develop an internal labor market to resolve the crisis of red tape.
B)an organization passes through five growth stages during the course of organizational evolution.
C)it is possible to regress to an earlier stage of growth.
D)an organization will enter decline if it fails to manage a crisis.

Question 10

Organizations follow equal employment opportunity (EEO)laws. This is an example of .

A)coercive isomorphism
B)mimetic isomorphism
C)natural selection
D)normative isomorphism

Question 11

are organizations that spread their skills thinly to compete for a broad range of resources in many niches.

A)Generalists
B)r- strategists
C)Entrepreneurs
D)Specialists

Question 12

recognize and take advantage of opportunities to use their skills and competences to create value.

A)Supervisors
B)Top managers
C)External stakeholders
D)Entrepreneurs

Question 13

The benefits an organization derives from being an early entrant into the environment are called .

A)birth
B)population growth
C)liability of newness
D)first- mover advantages

Question 14

An internal labor market can be developed to resolve which of the following crises?

A)Crisis of inaction
B)Crisis of red tape
C)Crisis of autonomy
D)Crisis of control

Question 15

A manager continues to undertake projects that have been successful in the past instead of trying new projects. This aversion to risk will likely result in:

A)an innovative culture.
B)an increase in sales and profits.
C)an increase in organizational inertia.
D)changes in the environment.

Question 16

To prevent the onset of organizational decline, a manager should not:

A)analyze the organization's structure.
B)have the founder step down.
C)make the founder a permanent leader.
D)pinpoint sources of inertia.

Question 17

Learning outdated procedures is a potential disadvantage of _ .

A)isomorphism
B)an r- strategy
C)natural selection
D)population ecology theory

Question 18

All of the following increase organizational inertia except .

A)risk aversion
B)bureaucratic culture
C)liability of newness
D)increased size

Question 19

When organizations attend the meetings of trade associations, which of the following is a potential result?

A)Coercive isomorphism
B)Normative isomorphism
C)Organizational inertia
D)Liability of newness

Question 20

Weitzel and Jonsson propose that an organization goes through which of the following stages of decline?

A)Blinded, inaction, faulty action, crisis, and dissolution
B)Blinded, inaction, coordination, dissolution, and death
C)Blinded, faulty action, crisis, and death
D)Coordination, collaboration, crisis, faulty action, and dissolution

Question 21

If an organization lacks an effective monitoring and information system, it risks entering the stage of decline.

A)blinded
B)death
C)dissolution
D)crisis

Question 22

According to Greiner, an organization progresses through which of the following stages?

A)Creativity, delegation, crisis, decline, and death
B)Birth, coordination, collaboration, growth, and decline
C)Delegation, coordination, growth, crisis, and decline
D)Creativity, direction, delegation, coordination, and collaboration

Question 23

All the fast food restaurants in Barrie, Ontario, compete for business from students. This is an example of _ _.

A)a population of organizations
B)organizational growth
C)entrepreneurship
D)marketing theory

Question 24

An organization experiences a crisis of red tape in the stage of Greiner's model.

A)creativity
B)collaboration
C)coordination
D)faulty action

Question 25

The four principal stages of an organization's life cycle are:

A)birth, growth, crisis, and death.
B)birth, growth, decline, and death.
C)birth, crisis, decline, and death.
D)birth, growth, collaboration, and death.

Question 26

Amazon.com was the first to use the Internet to sell books, and others have difficulty competing because of:

A)natural selection.
B)population ecology.
C)a first- mover advantage.
D)decreased use of the Internet.

Question 27

is the process that ensures the survival of the organizations that have the skills and abilities that best fit the environment.

A)K- strategy
B)Birth
C)Growth
D)Natural selection

Question 28

Signs of deterioration first become obvious to managers in the stage of decline.

A)crisis
B)dissolution
C)inaction
D)faulty action

Question 29

In the creativity stage, an organization:

A)develops a formal structure.
B)has a high division of labor.
C)experiences a crisis of leadership.
D)focuses primarily on costs.

Question 30

A restaurant is experiencing declining sales. It determines that the reason is that it has a formal dress code, such as a coat and tie policy for customers. Because they determine that the restaurant market in their domain prefers a more casual dress code, they eliminate the policy. This is an example of _ _.

A)faulty action
B)isomorphism
C)natural selection
D)growth through direction

Question 31

is the set of values and norms that governs the behavior of a population of organizations.

A)Institutional environment
B)Natural selection
C)Mimetic isomorphism
D)Growth theory

Question 32

In Greiner's model of growth, the phase of growth following a crisis of control is:

A)growth through delegation.
B)growth through collaboration.
C)growth through coordination.
D)growth through direction.

Question 33

A major reorganization is needed when an organization reaches which of the following stages of decline?

A)Coordination
B)Dissolution
C)Faulty action
D)Crisis

Question 34

In a SWOT analysis, which of the following would fall under the category of "weakness?"

A)A product that is priced too high for the market
B)Owners with little expertise
C)A tight labor force
D)A saturated marketplace

Question 35

According to Greiner's model of growth, delegation is most likely to follow a crisis of .

A)control
B)red tape
C)leadership
D)autonomy

Question 36

The danger associated with being first in a new environment is known as .

A)population ecology theory
B)decentralization
C)organizational inertia
D)the liability of newness

Question 37

In Greiner's model of growth, the phase growth through collaboration follows a crisis of .

A)red tape
B)autonomy
C)leadership
D)control

Question 38

When an organization within a population focuses on particular sets of resources, it pursues .

A)a population strategy
B)an environmental niche strategy
C)a generalist strategy
D)organizational birth

Question 39

Which theory proposes that an organization must gain legitimacy in the eyes of stakeholders in order to grow and survive?

A)Contingency theory
B)Greiner's theory
C)Population ecology theory
D)Institutional theory

Question 40

A large video company observes that smaller companies are having success with pay- per- view movies and decides to enter the pay- per- view market. This video company is pursuing which of the following strategies?

A)r- strategy
B)Specialist strategy
C)K- strategy
D)r- specialist strategy

Question 41

In Greiner's model, a crisis of leadership is followed by which of the following stages?

A)Growth through creativity
B)Growth through collaboration
C)Growth through direction
D)Growth through delegation

Question 42

Population ecology theorists state that the number of births in a new environment:

A)is slow at first but then increases rapidly in a linear fashion.
B)is determined by the institutional environment.
C)depends on the availability of resources.
D)is restricted by organizational inertia.

Question 43

Why has franchising become so popular in the United States?

A)Training time for managers is greatly reduced.
B)Very little capital is needed to begin.
C)By definition, franchisees skip the dangerous birth stage.
D)Risks are reduced by using an existing business plan.

Question 44

is the number of organizations that can compete for the same resources in a particular environment.

A)Population density
B)Population growth
C)Population ecology
D)Globalization

Question 45

After Apple founded the personal computer market, IBM realized the potential and developed personal computers. IBM followed a(n).

A)generalist strategy
B)r- strategy
C)specialist strategy
D)K- strategy

Question 46

A large computer company focuses on the higher education market. They are pursuing .

A)a population strategy
B)global expansion
C)a K- strategy
D)an environmental niche

Question 47

The organizations that are competing for the same resources in the same environment are known as .

A)ecology
B)liability of newness
C)organizational theory
D)a population of organizations

Question 48

The population ecology model of organizational birth, which is driven by natural selection, implies all of the following except:

A)new organizations survive if they can stake a claim to an environmental niche.
B)entrepreneurship keeps the cycle of birth going.
C)a new organization must adopt rules and values that govern the behavior of organizations in its population.
D)weak organizations will die.

Question 49

An auto manufacturer increased its effectiveness by using flexible manufacturing. Many other companies have intentionally imitated the technology of this manufacturer. This is an example of .

A)coercive isomorphism
B)natural isomorphism
C)mimetic isomorphism
D)normative isomorphism

Question 50

Which of the following controls an organization's behavior when it is in the growth through creativity stage of Greiner's model?

A)Informal organization
B)Rules and standard operating procedures
C)Organizational structure
D)Formalization

Question 51

An organization experiences a crisis of control in the stage of Greiner's model.

A)dissolution
B)direction
C)delegation
D)coordination

Question 52

When an organization is at the dissolution stage,

A)it can recover.
B)it cannot recover.
C)it should use a niche strategy.
D)it should add new divisions.

Question 53

An organization in the blinded stage should:

A)change its domain.
B)replace its top- management team with managers that have a vision.
C)create cross- functional teams to reduce conflict.
D)monitor internal and external factors to get accurate information.

Question 54

is a sequence of stages of growth and development through which organizations may pass.

A)Organizational life cycle
B)Decentralization
C)Vertical integration
D)Organizational learning

Question 55

Which of the following is not a stage in Greiner's model of growth?

A)Collaboration
B)Crisis
C)Coordination
D)Creativity

Question 56

Which of the following is not a stage in Weitzel and Jonsson's model?

A)Dissolution
B)Death
C)Inaction
D)Faulty action

Question 57

A restaurant has been experiencing declining sales. Management finally increases advertising, but refuses to changes its strategy or structure. This company is in the _ stage of decline.

A)faulty action
B)blinded
C)inaction
D)crisis

Question 58

A new organization designs its organization structure in which of the following stages of Greiner's model of growth?

A)Collaboration
B)Delegation
C)Coordination
D)Direction

Question 59

Packard, a high- priced, handcrafted car could not survive when Ford's low- cost, mass- produced cars dominated the market. This is an example of .

A)population ecology
B)natural selection
C)r- strategy
D)organizational growth

Question 60

A large, established organization pursues a broad range of resources in many niches. This company created a new niche in which a new firm could enter and survive. The new firm will likely use which of the following strategies?

A)r- generalist
B)r- specialist
C)K- generalist
D)K- specialist

Question 61

In Greiner's model of growth, a crisis of autonomy is followed by the growth through delegation stage.

Question 62

An entrepreneur designs a new product. He or she will most likely pursue which of the following strategies?

A)K- specialist
B)K- generalist
C)r- generalist
D)r- specialist

Question 63

XYZ company has experienced tremendous growth due to the leadership of a strong
top- management team, but the turnover of scientists and researchers has been high. What stage of the organizational life cycle is this company in and what is the crisis it is facing? How can the company resolve this crisis?

Question 64

One reason for the liability of newness is that new organizations lack a formal structure.

Question 65

In Greiner's model of growth, the growth through direction stage follows a crisis of control.

Question 66

At a trade show, a manager discusses with his competitor several different ideas on how to serve customers better. The competitor then uses some of these ideas in her organization. This is an example of _ _.

A)natural selection
B)normative isomorphism
C)a collusion agreement
D)coercive isomorphism

Question 67

A large organization has lost money two years consecutively. Top management is reluctant to make radical changes, and stakeholders are starting to withdraw their support. What stage of the organizational life cycle is this company in and what can it do to prevent organizational death?

Question 68

General Dynamics managed the decline process by _.

A)expanding core competences
B)downsizing
C)maintaining its traditional activities
D)global expansion

Question 69

Organizations have the greatest risk of failure when they are in the stage of the organizational life cycle.

A)birth
B)delegation
C)coordination
D)decline

Question 70

Which of the following theories attempts to explain the rate of organizational birth in a new environment?

A)Transaction cost theory
B)Institutional theory
C)Contingency theory
D)Population ecology theory

Question 71

A new management team may be needed to turn an organization around once it reaches the stage of decline.

A)faulty action
B)blinded
C)dissolution
D)crisis

Question 72

An organization in the dissolution stage should:

A)replace its top- management team to prevent death.
B)reorganize to reduce costs to prevent death.
C)change to a specialist strategy to survive.
D)liquidate its assets and declare bankruptcy.

Question 73

An entrepreneur develops a new product and starts an organization. What strategy is he or she pursuing? What advantages are associated with this strategy and what future problems do you foresee?

Question 74

In the inaction stage, managers:

A)must initiate a major reorganization to prevent further decline.
B)do not see the signs of decline.
C)face a crisis of control.
D)may fail to act because they perceive the situation as temporary.

Question 75

Which of the following is not included in a SWOT analysis?

A)Opportunities
B)Weaknesses
C)Standards
D)Threats

Question 76

In Greiner's model of growth, the phase of growth following a crisis of leadership is called:

A)growth through delegation.
B)growth through collaboration.
C)growth through coordination.
D)growth through direction.

Question 77

General Dynamics had a top- management team that:

A)did not see the signs of decline due to lack of an effective monitoring and information system.
B)quickly responded to changes in the company's environment.
C)failed to take action due to organizational inertia.
D)made small changes but was afraid to make radical changes.

Question 78

In a SWOT analysis, strengths and weaknesses are inside the organization, while opportunities and threats are environmental.

Question 79

McDonald's was one of the first fast- food restaurants and has a recognized name because of .

A)decreased competition
B)top management
C)ate entry advantages
D)first- mover advantages

Question 80

are organizations that concentrate their skills to pursue a narrow range of resources in a single niche.

A)Globalists
B)Specialists
C)Generalists
D)K- strategists