BADM 509 Managing Organizations Exam Questions and
Answers Grade A+
purpose - Answer-The reason why an organization exists
mission statement - Answer-a short statement of why an organization exists. It
often includes reference to what an organization does as well as who the
organization serves
Corporate Governance - Answer-the system by which organizations are directed
and controlled. Corporate governance deals directly with issues related to the
purpose of the organization and how it is controlled.
Stakeholder Theory - Answer-a theory of corporate governance that suggests that
firms must account for multiple constituencies impacted by business entities like
employees, suppliers, local communities, creditors, shareholders and others. It is
sometimes contrasted with the shareholder value perspective.
Shareholder Value - Answer-a perspective that suggests that the primary
responsibility of the firm is to maximize returns for shareholders.
Organizational Effectiveness - Answer-The extent to which an organization fulfills
its intended purpose. A broader measure of performance that goes beyond
efficiency and financial measures of success.
Balanced Scoreboard - Answer-a performance management tool that can be used
by managers to keep track of key performance indicators across a range of
relevant outcomes. Typically includes metrics related to financial performance,
operational efficiency, learning and growth of employees, and customer or other
stakeholder satisfaction.
Rational System - Answer-A way of thinking about organizations that treats the
organization as similar to a machine that operates efficiently to reach a well-
defined goal.
, Agency Theory - Answer-a perspective on organizations that is focused on
reducing costs associated with the principal-agent problem where sometimes an
agent has incentives to not act in the best interests of the principal.
Natural System Approach - Answer-a way of viewing organizations as a community
of people, with the complexities that accompany human behavior and interaction.
Acknowledges realities such as multiple organizational goals, political
maneuvering, the development of organizational culture, informal structure etc.
Pluralistic Ignorance - Answer-A situation wherein individuals underestimate the
extent to which others share their concerns.
Open System Approach - Answer-a way of viewing organizations as similar to
adaptive organisms that must adapt to the circumstances of the external
environment in order to survive.
Organizational structure - Answer-the ways in which tasks in the organization are
divided, grouped, and coordinated
Functional structure - Answer-a way of organizing that groups employees
according to a similar set of roles or tasks.
Divisional structure - Answer-a way of organizing that groups employees according
to particular products, services, geographic locations or markets.
Matrix structure - Answer-a way of organizing that simultaneously implements
elements of a functional and divisional structure in an effort to achieve the
benefits of both types of structure. Matrix structures have dual reporting lines.
Hybrid structure - Answer-a way of organizing in which more than one
organizational structure is used.
Network structure - Answer-a way of organizing in which the firm focuses on its
core competencies and outsources other aspects of the organization
Contingency Theory - Answer-perspective that suggests there is not one best way
to structure a company. Rather, the best structure is contingent upon a variety of
Answers Grade A+
purpose - Answer-The reason why an organization exists
mission statement - Answer-a short statement of why an organization exists. It
often includes reference to what an organization does as well as who the
organization serves
Corporate Governance - Answer-the system by which organizations are directed
and controlled. Corporate governance deals directly with issues related to the
purpose of the organization and how it is controlled.
Stakeholder Theory - Answer-a theory of corporate governance that suggests that
firms must account for multiple constituencies impacted by business entities like
employees, suppliers, local communities, creditors, shareholders and others. It is
sometimes contrasted with the shareholder value perspective.
Shareholder Value - Answer-a perspective that suggests that the primary
responsibility of the firm is to maximize returns for shareholders.
Organizational Effectiveness - Answer-The extent to which an organization fulfills
its intended purpose. A broader measure of performance that goes beyond
efficiency and financial measures of success.
Balanced Scoreboard - Answer-a performance management tool that can be used
by managers to keep track of key performance indicators across a range of
relevant outcomes. Typically includes metrics related to financial performance,
operational efficiency, learning and growth of employees, and customer or other
stakeholder satisfaction.
Rational System - Answer-A way of thinking about organizations that treats the
organization as similar to a machine that operates efficiently to reach a well-
defined goal.
, Agency Theory - Answer-a perspective on organizations that is focused on
reducing costs associated with the principal-agent problem where sometimes an
agent has incentives to not act in the best interests of the principal.
Natural System Approach - Answer-a way of viewing organizations as a community
of people, with the complexities that accompany human behavior and interaction.
Acknowledges realities such as multiple organizational goals, political
maneuvering, the development of organizational culture, informal structure etc.
Pluralistic Ignorance - Answer-A situation wherein individuals underestimate the
extent to which others share their concerns.
Open System Approach - Answer-a way of viewing organizations as similar to
adaptive organisms that must adapt to the circumstances of the external
environment in order to survive.
Organizational structure - Answer-the ways in which tasks in the organization are
divided, grouped, and coordinated
Functional structure - Answer-a way of organizing that groups employees
according to a similar set of roles or tasks.
Divisional structure - Answer-a way of organizing that groups employees according
to particular products, services, geographic locations or markets.
Matrix structure - Answer-a way of organizing that simultaneously implements
elements of a functional and divisional structure in an effort to achieve the
benefits of both types of structure. Matrix structures have dual reporting lines.
Hybrid structure - Answer-a way of organizing in which more than one
organizational structure is used.
Network structure - Answer-a way of organizing in which the firm focuses on its
core competencies and outsources other aspects of the organization
Contingency Theory - Answer-perspective that suggests there is not one best way
to structure a company. Rather, the best structure is contingent upon a variety of
