Understanding Organizations and IT

Which of the following is a technical definition of an organization?

• A collection of rights, privileges, and obligations

• A formal social structure that transforms resources into outputs

• A group of individuals bound by shared culture

• A marketplace for exchanging information

Which feature is NOT typically considered part of organizations?

• Hierarchical structure

• Accountability and authority

• Social networking platforms

• Routines and business processes

Business processes are best described as:

• Informal cultural rules within a firm

• A collection of routines

• Independent of organizational politics

• Always disruptive technologies

What is organizational politics primarily caused by?

• Shared routines

• Divergent viewpoints among stakeholders

• Flattened hierarchies

• Transaction cost reduction

Which of the following describes disruptive technologies?

• Small improvements to existing products

• Technologies that bring sweeping change to industries

• Technologies that reduce agency costs only

• Exclusive to manufacturing sectors

Which theory suggests that IT lowers market transaction costs?

• Agency Theory

• Transaction Cost Theory

• Behavioral Theory

• Network Economics

According to Agency Theory, IT can help firms by:

• Reducing costs of supervising employees

• Increasing vertical integration

• Expanding bureaucracy

• Limiting outsourcing opportunities

Which impact does IT have on organizational structure?

• Creates more managerial levels

• Flattens organizations by pushing decision-making downward

• Eliminates cultural differences

• Strengthens organizational resistance

According to Porter’s model, which of the following is NOT a competitive force?

• Suppliers

• Customers

• Value chain activities

• New market entrants

A firm using IT to produce goods at the lowest cost is pursuing:

• Product differentiation

• Focus on market niche

• Low-cost leadership

• Synergy creation