Business: Ch.1 L.3 Organizational Performance Reading Check

What is the primary purpose of management according to the text?

• To maximize profits for shareholders

• To attain organizational goals efficiently and effectively

• To create a social entity within a company

• To develop complex technologies

How is an organization defined in the passage?

• A profit-driven entity focused on financial gains

• A group of people working independently

• A social entity that is goal-directed and deliberately structured

• A system designed to achieve technological advancements

Which of the following is NOT mentioned as a potential goal for an organization?

• Making a profit

• Winning pay increases for members

• Meeting spiritual needs

• Competing with rival companies

What does the WeWork example illustrate?

• The importance of creating hype for a company

• The success of modern start-up companies

• The value of sublet office spaces

• The necessity of good management for operational excellence

According to the study by Nicholas Bloom and John Van Reenen, what was the result of improved middle management practices in textile factories?

• Increased employee satisfaction

• Higher stock prices

• Reduced defects and improved profits

• Expanded market share

Which companies took the top three spots in the Drucker Institute's Management Top 250 ranking?

• Google, Facebook, and Twitter

• Amazon, Microsoft, and Apple

• Walmart, PepsiCo, and 3M

• Mastercard, Procter & Gamble, and Alphabet

How is organizational effectiveness defined?

• The amount of resources used to achieve a goal

• The degree to which an organization achieves its stated goals

• The ability to cut costs and increase profits

• The level of employee satisfaction within a company

What is the primary benefit of the Square app for small businesses?

• It increases customer loyalty

• It provides detailed financial reports

• It allows for credit card payment processing

• It automates inventory management

What potential negative consequence of severe cost-cutting is illustrated by the EMI example?

• Increased operational costs

• Loss of market share to competitors

• Damage to organizational effectiveness and ability to recruit artists

• Improved financial efficiency

How is high performance defined in the context of management?

• Achieving organizational goals using resources efficiently and effectively

• Maximizing profits at any cost

• Maintaining a positive public image

• Expanding into new markets rapidly