Practice Exam OT-OI 2024

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Practice exam:

This is a practice exam for both the courses Organisation Theories and
Organisation and Innovation. These questions will give you an idea of what the
exam will look like. The practice exam contains one multiple-choice question for
each week in the course and one example of an open question. As you will see,
the practice exam contains both ‘knowledge questions’ (e.g. definitions,
statements) and ‘application questions’ (e.g. cases or examples). The final exam
of this course will exist of 20 multiple-choice questions and 4 open questions that
are quite similar to what you will encounter in this practice exam.

Multiple-choice question:

Minseo Kyung is a manager at Netflix and her specific function is 'Regional


Manager Content, Asia-Pacific'.

Matrisia Filomenos is a manager at Coca-Cola and her specific function is


‘Manager Hydration, Sports and Tea Category'.

What type of managers are Minseo Kyung and Matrisia Filomenos?

Both are line-role managers


Both are staff-role managers
Kyung is a staff-role manager and Filomenos is a line-role manager
Kyung is a line-role manager and Filomenos is a staff-role manager

Question 2: “Your company is growing, and you don’t have the time and the
skills to manage it anymore. You hire professional directors to manage the
company. Now that you’re not in charge anymore, the professional managers
know more about the daily operations of your company than you do. On the
other hand, their interests might not be aligned with your interests, and
therefore, you are not sure whether the organization is managed in the best
possible way.”
What theoretical problem describes this situation best?
Agency problem
Decision problem
Stewardship problem
Contingency problem

Question 3: “A disadvantage of centralization is that ________.”


coordination becomes difficult to achieve within the organization
the organization tends to lose its focus on achieving its goals
the extent of standardization is reduced within the organization
the top managers have little time for long-term strategic decision-
making
.

Question 4: Samantha is a manager in a company. She believes strongly in


following existing laws, but when making ethical choices, she always puts the
claims of the shareholders above the other stakeholders. Her stance on
corporate social responsibility could best be described as ________.

accommodative
proactive
obstructionist
defensive

Question 5: As a result of the global pandemic of COVID-19 a serious shortage


of microchips arose affecting many industries. Examples of companies that were
affected by the shortage are Tesla, the electric vehicle manufacturer, and Apple,
the consumer electronics company.
Statement I: Both Tesla and Apple have a competitive interdependency with the
chip manufacturers
Statement II: There is no interdependency between Tesla and Apple because
they operate in different markets

Statement I is false, statement II is correct


Statement I is correct, statement I is false
Both statements are false
Both statements are correct

Question 6: Which of the following descriptions fits Greiner’s Model of


Organizational Growth?
An organization must choose one of the four strategies (K-generalist, r-
generalist, K-specialist, r-specialist) in order to grow efficiently
All organizations go through a life cycle consisting of birth, growth, decline,
and death
An organization passes through sequential growth stages and at each
stage a specific organizational design problem causes a crisis that must
be solved
In order to grow, an organization must obtain as many scarce resources as
possible in order to develop its core competences
Question 7: Which one of the following is true of different models of
organizational decision making?

The Carnegie model offers a less accurate description of how decision-making


takes place in a real-life organization than does the rational model.
The rational model assumes that managers are aware of all
alternative courses of action and their consequences.
The Carnegie model assumes that all the information required for decision-
making is available.
The incrementalist model works best in an environment that changes suddenly
or abruptly.

Question 8: At a dairy farmer cooperative, the members are divided on an


important decision. Some of the members want the cooperative to only process
the milk, while other members want the cooperative to invest in the
manufacturing of a wider range of dairy products, such as yogurt, condensed
milk, dairy-based beverages, cheese, butter and cream.

What problem to the managers is described here?

Decision problem
Follow-up problem
Monitoring problem
Influence cost problem

Question 9: Which model learned in the course can be described as follows:

"Organizations do not always base their decisions on finding solutions to specific


problems but are solution-driven. These solutions are based on existing
organizational competencies."

Pondy´s model
Carbage can model
Incremental model
Transaction cost model
Question 10: Which of the following statements is true regarding evolutionary
change?
Evolutionary change is broadly focused.
r-strategy is one of the ways of achieving evolutionary change
Evolutionary change involves a bold attempt to quickly find new ways to be
effective.
Evolutionary change is gradual and incremental.

Question 11: Fill in the blank.


Without proper integration, too much ____ can lead to subunit orientation.
vertical differentiation
horizontal differentiation
vertical integration
centralisation

Question 12: Which of the following characteristics of organizational structure is


most likely to increase the responsiveness of the organization to environmental
changes?
tall hierarchy of authority
centralized decision-making
standardization of behavior through rules and procedures
extensive use of mutual adjustment

Question 13: Which of the following was not discussed during the course as a
source of transaction costs?
Dynamism of contracts
Environmental uncertainty
Number of suppliers
Asset specificity

Question 14: McDonalds standardization through SOP’s, rules and norms


throughout their supply chain, food preparation, and customer service.

What kind of source of core competences is described here?


Functional resource
Corporate resource
Organisational resource
Coordination resource

Question 15:
The dangers associated with being the first to operate in a novel environment is
known as the ________.
liability of inertia
liability of newness
liability of dependence
liability of entry

Open question:
Proper Paper is a paper manufacturing company with over 500 employees. The
paper manufacturing industry can be characterized as highly stable and Proper
Paper has 3 main competitors.

A) Using contingency theory, would you expect Proper Paper to have a


mechanistic structure or an organic structure? Why?

Answer: According to contingency theory, Proper Paper should have a


mechanistic organization structure because it is operating in a highly
stable environment. Better control and performance can be realized by
keeping authority centralized and creating top-down decision-making.
Probably not too many different subunits are necessary to respond to the
environment.

B) Proper Paper is currently using a low-cost strategy. Argue whether this is a


logical strategy to use or not.

Answer: Student that argue that it might be hard to differentiate on a


product like paper only get some points. You get all points when you
argue that a low-cost strategy is mostly suitable in stable environments,
as it is easier to have the close control needed for a low-cost strategy.

C) Proper Paper is considering making a move to only manufacture paper


responsibly and sustainably harvested wood. One of their managers is
concerned that his will only unnecessarily drive up their costs. Which of
the three generic strategies would you suggest to convince this manager
of the idea? Why?

Answer: Low-cost would be the least logical choice. Only a minimal


amount of points can be scored when it is argued that the costs for
responsible wood are high, so you should keep all other costs low to
convince the manager. Differentiation might already be more logical, as
students can argue that using responsible wood would lead to a higher
quality paper for the entire industry. However, one could question whether
all types of customers would consider this higher quality. Focus strategy is
the most logical strategy as the company could focus on an
environmentally conscious customer segment that is willing to pay more
for sustainable products.

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