MBA 704 PRACTICE EXAM QUESTIONS AND
DETAILED SOLUTIONS 2026
▶ Horizontal Design. Answer: Improves coordination and communication
Organized around workflow process not task
Flattened hierarchy and use of teams to manage everything
Teams performance rewarded
Customer satisfying as driver of performance
Supplier and customer contact max
Fully informed and training employees
▶ Hollow Design. Answer: Core competencies (product design and
marketing) kept in house
Entire non core process (manufacturing or customer service) outsourced to
vendors who do them cheaper and faster
▶ Modular Design. Answer: Parts of produce or service outsources
instead of entirety process
▶ Network Design. Answer: Horizontal, Hollow, and Modular
Alternatives to traditional hierarchy or functional designs
Boundaryless due to info tech and globalization
▶ Radical Redesign. Answer: Greenfield: Clean slate
Rediscovery: Return to previous design
Network: Find where to add value, then hire a firm to do it
▶ Virtual Organization. Answer: A company outside a company created to
respond to an exceptional market opportunity that is often temporary
Key attributes:
Tech: Informational networks to increase connections
Opportunism: Less permanent, less formal partnerships
No borders: More cooperation among competitors and suppliers
Trust: More dependence on other companies
Excellence: Core competency from all leading to best overall company
▶ Characteristics of Organizational Culture. Answer: Behavioral
regulatories
, Norms
Dominant values
Philosophy
Rules
Organizational climate
▶ Behavioral Regulatories. Answer: Common languages and rituals
▶ Norms. Answer: Behavior standards including how much work to do
▶ Dominant Values. Answer: Major values expected to be shared (high
product quality, low absenteeism, high efficiency)
▶ Philosophy. Answer: Beliefs on how to treat employees and/or
customers
▶ Rules. Answer: Guidelines related to getting along in the organization
▶ Organizational Climate. Answer: Overall feeling conveyed
Physical layouts, the way participants interact, and the way members of the
organization treat customers and other outsiders
▶ Uniformity of Culture. Answer: Organizational culture perceptions not
shared to same degree, resulting in a dominant culture and subcultures
Dominant: Set of core values by majority
Subcultures: Set of values by small minority
▶ Creating Organizational Culture. Answer: A single person (founder) has
idea for new business
Founder brings in key people with common vision
Founding group acts together to create an organization by raising capital,
obtaining patents, incorporating, finding a location
Others brought into company; common history is built
▶ Steps of Socialization. Answer: Selection
Job Placement
Job Mastery
Measuring/Rewarding Performance
Adherence to Important Values
Reinforcing the Stories of Folklore
Recognition and Promotion
DETAILED SOLUTIONS 2026
▶ Horizontal Design. Answer: Improves coordination and communication
Organized around workflow process not task
Flattened hierarchy and use of teams to manage everything
Teams performance rewarded
Customer satisfying as driver of performance
Supplier and customer contact max
Fully informed and training employees
▶ Hollow Design. Answer: Core competencies (product design and
marketing) kept in house
Entire non core process (manufacturing or customer service) outsourced to
vendors who do them cheaper and faster
▶ Modular Design. Answer: Parts of produce or service outsources
instead of entirety process
▶ Network Design. Answer: Horizontal, Hollow, and Modular
Alternatives to traditional hierarchy or functional designs
Boundaryless due to info tech and globalization
▶ Radical Redesign. Answer: Greenfield: Clean slate
Rediscovery: Return to previous design
Network: Find where to add value, then hire a firm to do it
▶ Virtual Organization. Answer: A company outside a company created to
respond to an exceptional market opportunity that is often temporary
Key attributes:
Tech: Informational networks to increase connections
Opportunism: Less permanent, less formal partnerships
No borders: More cooperation among competitors and suppliers
Trust: More dependence on other companies
Excellence: Core competency from all leading to best overall company
▶ Characteristics of Organizational Culture. Answer: Behavioral
regulatories
, Norms
Dominant values
Philosophy
Rules
Organizational climate
▶ Behavioral Regulatories. Answer: Common languages and rituals
▶ Norms. Answer: Behavior standards including how much work to do
▶ Dominant Values. Answer: Major values expected to be shared (high
product quality, low absenteeism, high efficiency)
▶ Philosophy. Answer: Beliefs on how to treat employees and/or
customers
▶ Rules. Answer: Guidelines related to getting along in the organization
▶ Organizational Climate. Answer: Overall feeling conveyed
Physical layouts, the way participants interact, and the way members of the
organization treat customers and other outsiders
▶ Uniformity of Culture. Answer: Organizational culture perceptions not
shared to same degree, resulting in a dominant culture and subcultures
Dominant: Set of core values by majority
Subcultures: Set of values by small minority
▶ Creating Organizational Culture. Answer: A single person (founder) has
idea for new business
Founder brings in key people with common vision
Founding group acts together to create an organization by raising capital,
obtaining patents, incorporating, finding a location
Others brought into company; common history is built
▶ Steps of Socialization. Answer: Selection
Job Placement
Job Mastery
Measuring/Rewarding Performance
Adherence to Important Values
Reinforcing the Stories of Folklore
Recognition and Promotion
