b.elaboration stagec.formalization staged.collectivity stageANS: DPTS:1REF:324BLM: Remember5.At which stage in the life cycle of a newly established hierarchy dodepartments emerge and get established, along with the beginnings ofdivision of labour?a.entrepreneurialb.formalizationc.collectivityd.elaborationANS: CPTS:1REF:324-325BLM: Remember
6.Which of the following is a characteristic of the formalization stage of theorganizational life cycle?PTS:1REF:326BLM: Remember
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7.Two brothers, Jake and Tommy, were hired by an organization with abureaucratic organizational structure. Because they had different sets ofskills, they ended up working in different parts of the organization. Whichdimension of bureaucracy is this an example of?PTS:1REF:330BLM: Apply
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8.Why did Max Weber develop the concept of a bureaucracy?PTS:1REF:330BLM: Evaluate
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Chapter 9
Copyright © 2012 by Nelson Education Ltd. 115
CHAPTER 9—ORGANIZATION SIZE, LIFE CYCLE, AND DECLINE
MULTIPLE CHOICE
1. What are small businesses characterized by, in contrast to large businesses?
a decreasing percentage of employees in the economy as a whole
fewer numbers, as merger mania continues to create a larger proportion of large
firms in the world economy
the front/back combinations that combine small units into larger ones
ANS: A PTS: 1 REF: 320 BLM: Evaluate
2. What is the major goal of an organization during the entrepreneurial stage of the life cycle?
complete organizational structure
ANS: C PTS: 1 REF: 324 BLM: Remember
3. Which of the following best describes organizations going through the organizational life
cycle?
They usually reach elaboration in 12–18 months.
They tend to become very bureaucratic by the collectivity stage.
They usually resolve crises associated with each stage, or face restricted growth.
They tend to experience their wildest and most rapid growth period in the
formalization stage.
ANS: C PTS: 1 REF: 327 BLM: Evaluate
4. When do organizations begin to develop clear goals and direction?
ANS: D PTS: 1 REF: 324 BLM: Remember
5. At which stage in the life cycle of a newly established hierarchy do departments emerge and
get established, along with the beginnings of division of labour?
ANS: C PTS: 1 REF: 324-325 BLM: Remember