ORGANIZATION THEORY FINAL EXAM ANSWER FOR QUESTIONS RAISED BY STUDENTS

I.TRUE OR FALSE SECTION

QUESTION 1: Complexity is a factor causing uncertainty in an organization associated with
environmental domain of stability. False
ANSWER: The simple–complex dimension concerns environmental complexity, which refers to
heterogeneity, or the number and dissimilarity of external elements relevant to an organization’s
operations.
 The stable–unstable dimension refers to whether elements in the environment are dynamic. An
environmental domain is stable if it remains the same over a period of months or years. Under
unstable conditions, environmental elements shift abruptly. Environmental domains seem to be
increasingly unstable for most organizations.
UNSTABILITY is a factor causing uncertainty in an organization associated with environmental
domain of stability

II. Choose the best answer among the given alternatives

QUESTION 2: Which one of the following could be considered as a task environment for an
organization?
A. Suppliers B. Employees C. Prospects D. Labor market
ANSWER:
 The task environment includes sectors with which the organization interacts directly and that
have a direct impact on the organization’s ability to achieve its goals. It includes industry, raw
materials, and market sectors, and perhaps the human resources(EMPLOYEES) and international
sectors
 The task environment is a part of the general environment and it includes specific groups that
directly affect a particular business's goals and performance. These groups include the
stakeholders of the business such as the suppliers, workers, employees, customers, etc, and the
competitors.
 Some student where asking if suppliers and labor market can be an answer and both are part
of the task environment but the Question state choose the best answer among the alternatives
in this case the closest task environment element for a firm which are the employees when
compared to suppliers and overall Labor/job market.