ARE 112 Midterm 1 Questions & Answers 100% Correct!!why organizations exist? - ANSWER-to achieve goal or set of goals organizations try to ____ goals - ANSWER-optimize or satisfy
10 innovations since WWII - ANSWER-Lesson: all come from organizations
- steps to organization - ANSWER-1. acquire people and resources 2. organize and
harness ingenuity of people 3. respond to social, commercial environment 4. produce and distribute goods and services BSS, PCS, TS - ANSWER-buy side, strategy, sell side, people, culture, structures, tasks, systems strategy - ANSWER-what is our business and how do we compete?
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external environment - ANSWER-buy side: predictable/ sell side: uncertain
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structure - ANSWER-formal and informal system of tasks and reporting relationships that control and coordinate employees systems - ANSWER-policies that complement structure; human resources for example culture - ANSWER-core value, norms that guide the organization and direct it external fit - ANSWER-how well organization responds to environment internal fit - ANSWER-how well the components of the organization are; how well the organization uses its resources oliver williamson interview - ANSWER- transactions costs - ANSWER-cost of doing things; should minimize transaction costs cost of uncertainty - ANSWER-insurance, putting multiple people on a job to reduce risks. Reducing uncertainty reduces transaction costs 1 / 2
bounded rationality - ANSWER-Bounded rationality is the idea that when individuals make decisions, their rationality is limited by the information they have, the cognitive limitations of their minds, and the time available to make the decision.incomplete contracts - ANSWER-More recent developments known as the theory of incomplete contracts, pioneered by Oliver Hart and his coauthors, study the incentive effects of parties' inability to write complete contingent contracts, e.g. concerning relationship-specific investments.Because it would be impossibly complex and costly for the parties to an agreement to make their contract complete,[1] the law provides default rules which fill in the gaps in the actual agreement of the parties.what causes incomplete contracts - ANSWER-transaction costs, cost of uncertainty, bounded rationality organizational analysis MECE - ANSWER-mutually exclusive collectively exhaustive; McKinsey mutually exclusive - ANSWER-is each issue a separate and distinct issue collectively exhaustive - ANSWER-does every aspect of the issue come under one, and only one of the issues why this is done? - ANSWER-to avoid making early selection of solution before facts are known steps in analysis process - ANSWER-descriptive, diagnostic, prescriptive, comment descriptive - ANSWER-determine the facts diagnostic - ANSWER-determines facts that relate to organizational goals prescriptive - ANSWER-change the facts to align with goals or the goals to align with facts comment - ANSWER-business analysis/ business analytics and intelligence mother city - ANSWER-Caral, 150 acre complex of building, pyramids is perhaps oldest civilization ever. Did not find remaining of pots, meaning pre ceramic. Were involved in outside trading, made fisherman nets and traded for shellfish and dried fish types of organizations - ANSWER-
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