MBA 704 - KUNGU - WEEK 7 -
CHAPTERS 11 & 12
COMPREHENSIVE STUDY GUIDE 2026
FULL QUESTIONS AND SOLUTIONS
GRADED A+
◍ T/F: The modern approach to organization theory and design consists of
very flexible networks, and recognizes the interaction of information
technology and people..
Answer: True
◍ T/F: The first major development in organization theory was to view the
organization as a system made up of independent parts..
Answer: False
◍ T/F: The contingency approach challenges the organizational ecology
theory..
Answer: False
◍ T/F: The organizational ecology approach to organization theory suggests
that organizations change as a process of 'survival of the fittest.'.
Answer: True
◍ T/F: Under single-loop, the organization is learning with significant changes
in its basic assumptions..
Answer: False
◍ T/F: Double-loop learning involves changing the organization's culture..
Answer: True
◍ T/F: Creative tension stems from the gap between the organizations'
, continually upwardly upgraded vision and the reality and suggests the
learning organization's continually questioning and challenging the status
quo..
Answer: True
◍ T/F: Empathy is reflected by the genuine concern for and the interest in
employee suggestions and innovations that can be operationalized through a
feedback systems..
Answer: False
◍ T/F: Taken at a more individual employee organizational behavior level,
employees would react to environmental changes in a standard, routine
response in the adaptive organization, often resulting in short-run solutions..
Answer: True
◍ T/F: In a learning organization, managers learn how to encourage their
people to redirect their energies toward the substance of disagreements
rather than toward personality clashes or political infighting..
Answer: True
◍ T/F: Creativity includes the willingness to accept personality clashes..
Answer: False
◍ T/F: Managers at a learning organization encourage risk-taking, and creative
behavior by providing a challenging environment..
Answer: False
◍ T/F: In a learning organization, the vision is provided by the top
management..
Answer: False
◍ T/F: In horizontal organizations, the primary driver and measure of
performance is customer satisfaction, not profits or stock appreciation..
Answer: True
◍ T/F: When parts of the product or service are outsourced, it's called the
"Hollow Organization" design..
, Answer: False
◍ T/F: Horizontal, hollow and modular organization designs are sometimes
subsumed under the single term "Network Designs.".
Answer: True
◍ T/F: Greenfield redesign means breaking completely from the classical
structure and establishing a totally different design..
Answer: True
◍ T/F: In network redesign, established companies return to a previously
successful design by eliminating unproductive structural additions and
modifications..
Answer: True
◍ T/F: One network approach is to require internal units of a firm to interact at
market prices - buy and sell to each other at prices equal to those that can be
obtained by outsourcing partners..
Answer: True
◍ T/F: The word virtual as used in virtual organizations comes from the
popular 'virtual reality.'.
Answer: False
◍ T/F: Organizational climate is an overall "feeling" that is conveyed by the
physical layout, the way participants interact, and the way members of the
organization conduct themselves with customers or other outsiders..
Answer: True
◍ T/F: Subcultures are typically a result of religions or personal beliefs that
are shared by members of a department or a unit..
Answer: False
◍ T/F: Subcultures do not weaken or undermine an organization even when
they are in conflict with the dominant culture and/or the overall objectives..
Answer: False
◍ T/F: The socialization process can help solidify the acceptance of core
CHAPTERS 11 & 12
COMPREHENSIVE STUDY GUIDE 2026
FULL QUESTIONS AND SOLUTIONS
GRADED A+
◍ T/F: The modern approach to organization theory and design consists of
very flexible networks, and recognizes the interaction of information
technology and people..
Answer: True
◍ T/F: The first major development in organization theory was to view the
organization as a system made up of independent parts..
Answer: False
◍ T/F: The contingency approach challenges the organizational ecology
theory..
Answer: False
◍ T/F: The organizational ecology approach to organization theory suggests
that organizations change as a process of 'survival of the fittest.'.
Answer: True
◍ T/F: Under single-loop, the organization is learning with significant changes
in its basic assumptions..
Answer: False
◍ T/F: Double-loop learning involves changing the organization's culture..
Answer: True
◍ T/F: Creative tension stems from the gap between the organizations'
, continually upwardly upgraded vision and the reality and suggests the
learning organization's continually questioning and challenging the status
quo..
Answer: True
◍ T/F: Empathy is reflected by the genuine concern for and the interest in
employee suggestions and innovations that can be operationalized through a
feedback systems..
Answer: False
◍ T/F: Taken at a more individual employee organizational behavior level,
employees would react to environmental changes in a standard, routine
response in the adaptive organization, often resulting in short-run solutions..
Answer: True
◍ T/F: In a learning organization, managers learn how to encourage their
people to redirect their energies toward the substance of disagreements
rather than toward personality clashes or political infighting..
Answer: True
◍ T/F: Creativity includes the willingness to accept personality clashes..
Answer: False
◍ T/F: Managers at a learning organization encourage risk-taking, and creative
behavior by providing a challenging environment..
Answer: False
◍ T/F: In a learning organization, the vision is provided by the top
management..
Answer: False
◍ T/F: In horizontal organizations, the primary driver and measure of
performance is customer satisfaction, not profits or stock appreciation..
Answer: True
◍ T/F: When parts of the product or service are outsourced, it's called the
"Hollow Organization" design..
, Answer: False
◍ T/F: Horizontal, hollow and modular organization designs are sometimes
subsumed under the single term "Network Designs.".
Answer: True
◍ T/F: Greenfield redesign means breaking completely from the classical
structure and establishing a totally different design..
Answer: True
◍ T/F: In network redesign, established companies return to a previously
successful design by eliminating unproductive structural additions and
modifications..
Answer: True
◍ T/F: One network approach is to require internal units of a firm to interact at
market prices - buy and sell to each other at prices equal to those that can be
obtained by outsourcing partners..
Answer: True
◍ T/F: The word virtual as used in virtual organizations comes from the
popular 'virtual reality.'.
Answer: False
◍ T/F: Organizational climate is an overall "feeling" that is conveyed by the
physical layout, the way participants interact, and the way members of the
organization conduct themselves with customers or other outsiders..
Answer: True
◍ T/F: Subcultures are typically a result of religions or personal beliefs that
are shared by members of a department or a unit..
Answer: False
◍ T/F: Subcultures do not weaken or undermine an organization even when
they are in conflict with the dominant culture and/or the overall objectives..
Answer: False
◍ T/F: The socialization process can help solidify the acceptance of core
