Questions - ORGANISATIONS AND
THEIR ENVIRONMENT
ORGANISATIONS AND THEIR ENVIRONMENT
August 8, 2025
This document contains the exam questions and answer key with detailed explanations for the
Organizational Theory course
Trang 21.1 Chapter 1 The Nature and Structure of Organizations
1.1.1 Question 1
Which of the following is true?
a) Public sector organizations cannot be commercial organizations
b) Co-operatives are non-profit seeking
c) Not-for-profit organizations can be public or private sector
d) Not-for-profit organizations are public sector
1.1.2 Question 2
Which three of the following are true about tall narrow structures?
a) Prevents close supervision of subordinates
b) Good vertical communication
c) Large span of control
d) Allows close supervision of subordinates
e) Small span of control
f) Poor vertical communication
1.1.3 Question 3
Which of the following structures will formally show that a subordinate has to report to more than one person?
a) Matrix structure
b) Entrepreneurial structure
c) Functional structure
d) Divisional structure
1.1.4 Question 4
Which two of the following are probably true about decentralization?
a) Better coordination for the group
b) Worse coordination for the group
c) Worse decisions by divisions
d) Better decisions by divisions
Trang 31.1.5 Question 5
Which of the following is part of the informal organization?
a) Organization charts
b) Mission statements
c) Group norms
d) Staff appraisals
1.2 Chapter 2 An Organizations Environment
1.2.1 Question 6
Which of the following is not one of Porter’s Five Forces?
a) Substitutes
b) Rivals
c) Social
d) Suppliers
1.2.2 Question 7
Which two of the following are potential barriers to entry?
a) Low competition
b) Low fragmentation of the market
c) Low regulation
d) Government grants for new firms
e) Low capital expenditure
f) High know-how
1.2.3 Question 8
Which of the following is not part of PESTEL?
a) Political
b) Economics
c) Equality
d) Legal
1.2.4 Question 9
Which two of the following are not primary activities in Porter’s value chain?
a) Procurement
Trang 4c) Human resources management
d) Outbound logistics
1.2.5 Question 10
Which two of the following SWOT elements are external influences?
a) Weaknesses
b) Threats
c) Opportunities
d) Strengths
1.3 Chapter 3 An Organizations Stakeholders
1.3.1 Question 11
Which of the following would be regarded as a connected stakeholder?
a) Government
b) Employee
c) Director
d) Customer
1.3.2 Question 12
Which two of the following are typical of a ‘keep satisfied’ stakeholder in Mendelow’s matrix? a) High interest
b) High power
c) Low interest
d) Low power
1.3.3 Question 13
Which of the following is true?
a) Stakeholders’ requirements are likely to be in conflict and that would be management’s fault
b) Stakeholders’ requirements can be simplified into looking just at shareholder require-ments
c) Stakeholders’ requirements are likely to be congruent
d) Stakeholders’ requirements are likely to be in conflict and management has to deal with that
Trang 51.3.4 Question 14
Which two of the following are typical of a ‘keep informed’ stakeholder in Mendelow’s matrix? a) High interest
b) High power
c) Low interest
d) Low power
1.3.5 Question 15
Select three correct answers:
a) The local population is an example of an internal stakeholder
b) An employee is an example of an external stakeholder
c) A company’s bank is an example of a connected stakeholder
d) An employee is an example of a connected stakeholder
e) An employee is an example of an internal stakeholder
f) The local population is an example of a connected stakeholder
g) A company’s bank is an example of an internal stakeholder
h) A company’s bank is an example of an external stakeholder
1.4 Chapter 4 Organizational Culture
1.4.1 Question 16
Which of the following is not part of the cultural web?
a) Rituals and routines
b) Control systems
c) Substitutes
d) Organizational structure
1.4.2 Question 17
Which two of the following are not part of Hofstede’s analysis of national cultures?
a) Masculinity
b) Uncertainty avoidance
c) Individualism/collectivism
d) Language
e) Power/distance
f) Demographics (population statistics)
Trang 6Which of the following is not one of Handy’s cultural classifications?
a) Power
b) Role
c) Person
d) Matrix
1.4.4 Question 19
Which of the following is not one of Schein’s three levels of culture?
a) Artifacts
b) Espoused values
c) Underlying assumptions
d) Myths and stories
1.4.5 Question 20
A culture in which employees concentrate on getting the job done is known as:
a) A role culture
b) A task culture
c) A person culture
d) A power culture
Trang 72 Part 2: Answer Key and Explanations
2.1 Chapter 1 The Nature and Structure of Organizations
2.1.1 Question 1
Correct Answer: c) Not-for-profit organizations can be public or private sector
Explanation: Not-for-profit organizations can operate in both public (e.g., government-funded charities) and private sectors (e.g., private foundations) Public sector organizations can be commercial (e.g., state-owned enterprises) Co-operatives may distribute profits to members, and not-for-profit organizations are not exclusively public sector
2.1.2 Question 2
Correct Answers: b) Good vertical communication, d) Allows close supervision of subordi-nates, e) Small span of control
Explanation: Tall narrow structures feature many hierarchical levels with a small span of con-trol, enabling close supervision and effective vertical communication Large spans of control and poor vertical communication are typical of flat structures
2.1.3 Question 3
Correct Answer: a) Matrix structure
Explanation: A matrix structure involves dual reporting lines, where subordinates report to multiple managers (e.g., functional and project managers) Other structures typically have single reporting lines
2.1.4 Question 4
Correct Answers: b) Worse coordination for the group, d) Better decisions by divisions Explanation: Decentralization delegates decision-making to divisions, often leading to bet-ter division-specific decisions due to local expertise However, it may result in worse group coordination due to potential misalignment
2.1.5 Question 5
Correct Answer: c) Group norms
Explanation: Informal organizations include unwritten elements like group norms that guide behavior Organization charts, mission statements, and staff appraisals are formal components
2.2 Chapter 2 An Organizations Environment
2.2.1 Question 6
Correct Answer: c) Social
Explanation: Porter’s Five Forces include Threat of New Entrants, Bargaining Power of Sup-pliers, Bargaining Power of Buyers, Threat of Substitutes, and Rivalry Among Existing Com-petitors Social is not a force
Trang 8Correct Answers: b) Low fragmentation of the market, f) High know-how
Explanation: Low market fragmentation (concentrated market) and high know-how (special-ized knowledge) create barriers to entry Low competition, low regulation, government grants, and low capital expenditure reduce barriers
2.2.3 Question 8
Correct Answer: c) Equality
Explanation: PESTEL includes Political, Economic, Social, Technological, Environmental, and Legal factors Equality is not a distinct category
2.2.4 Question 9
Correct Answers: a) Procurement, c) Human resources management
Explanation: Porter’s value chain primary activities include Inbound Logistics, Operations, Outbound Logistics, Marketing and Sales, and Service Procurement and human resources management are support activities
2.2.5 Question 10
Correct Answers: b) Threats, c) Opportunities
Explanation: SWOT analysis categorizes Strengths and Weaknesses as internal factors, while Opportunities and Threats are external influences
2.3 Chapter 3 An Organizations Stakeholders
2.3.1 Question 11
Correct Answer: d) Customer
Explanation: Connected stakeholders have contractual or economic relationships with the or-ganization, such as customers Employees and directors are internal stakeholders, and the government is an external stakeholder
2.3.2 Question 12
Correct Answers: b) High power, c) Low interest
Explanation: In Mendelow’s matrix, ‘keep satisfied’ stakeholders have high power but low interest, requiring management to meet their needs to prevent increased involvement
2.3.3 Question 13
Correct Answer: d) Stakeholders’ requirements are likely to be in conflict and management has to deal with that
Explanation: Stakeholders often have conflicting interests (e.g., shareholders vs employees), and management must balance these Conflicts are not necessarily management’s fault, nor are requirements congruent or reducible to shareholders’ needs
Trang 92.3.4 Question 14
Correct Answers: a) High interest, d) Low power
Explanation: ‘Keep informed’ stakeholders have high interest but low power, requiring regular communication to maintain support without granting significant influence
2.3.5 Question 15
Correct Answers: c) A company’s bank is an example of a connected stakeholder, e) An em-ployee is an example of an internal stakeholder, h) A company’s bank is an example of an external stakeholder
Explanation: Employees are internal stakeholders A company’s bank is a connected stake-holder (economic relationship) and an external stakestake-holder (outside the organization) The local population is typically an external stakeholder but not connected or internal
2.4 Chapter 4 Organizational Culture
2.4.1 Question 16
Correct Answer: c) Substitutes
Explanation: The cultural web includes Rituals and Routines, Control Systems, Organiza-tional Structure, Power Structures, Symbols, Stories, and Myths Substitutes is not included
2.4.2 Question 17
Correct Answers: d) Language, f) Demographics (population statistics)
Explanation: Hofstede’s dimensions include Power Distance, Individualism/Collectivism, Mas-culinity/Femininity, Uncertainty Avoidance, Long-Term Orientation, and Indulgence Lan-guage and demographics are not included
2.4.3 Question 18
Correct Answer: d) Matrix
Explanation: Handy’s cultural classifications are Power, Role, Task, and Person cultures Ma-trix is an organizational structure, not a cultural type
2.4.4 Question 19
Correct Answer: d) Myths and stories
Explanation: Schein’s three levels of culture are Artifacts, Espoused Values, and Underlying Assumptions Myths and stories are part of the cultural web, not Schein’s model
2.4.5 Question 20
Correct Answer: b) A task culture
Explanation: A task culture focuses on job completion, emphasizing teamwork and project-oriented work Role culture emphasizes rules, person culture focuses on individuals, and power culture centers on control