Organization Design, Architecture, and Managing Quiz :Managing Social and Human Capital (Business Foundations Specialization) Answers 2026

Question 1

The organizational architecture of Rose Company is grouped by:

❌ Geographic Structure
❌ Product Structure
❌ Regional Structure
✅ Functional Structure

Explanation:
Rose Company is organized around functions (e.g., marketing, operations, finance), which is characteristic of a functional structure.

Question 2

In the Hausser Food Products case, which organizational structure might have prevented the Florida sales team from withholding information from other sales teams?

✅ Functional Structure
❌ Regional Structure
❌ Geographic Structure
❌ All of the options are correct

Explanation:
A functional structure aligns employees by role rather than territory, reducing information hoarding across regions.

Question 3

According to Equity Theory, which statement is correct?

❌ Both under-rewarded and over-rewarded will not change their performance
❌ Under-rewarded will increase performance while over-rewarded will decrease performance
✅ Under-rewarded will decrease their performance while over-rewarded will not change their performance
❌ Under-rewarded will decrease performance while over-rewarded will increase performance

Explanation:
Research shows under-rewarded employees reduce effort, while over-rewarded employees usually maintain performance.

Question 4

According to research, which statement is correct?

❌ Over-rewarded will be more collectivistic
❌ Both over-rewarded and under-rewarded will be competitive
✅ Over-rewarded will be more competitive
❌ Under-rewarded will be more collaborative

Explanation:
Over-rewarded individuals often behave more competitively to justify their higher rewards.

Question 5

Why does organizational change often not work?

❌ Lack of sufficient financial resources
❌ Mismatch with the current organizational structure
✅ The urgency for the change that was not communicated
❌ Lots of resistance among executive management

Explanation:
Without a clearly communicated sense of urgency, employees fail to commit to change initiatives.

Question 6

According to John Kotter, what must a manager do to successfully generate organizational change?

❌ Assimilate the change culturally
❌ Create a powerful coalition
❌ Continuously communicate vision
✅ All of the options are correct

Explanation:
Kotter emphasizes coalition building, vision communication, and cultural integration for successful change.

Question 7

What was David Pottruck’s major challenge when he decided change must be generated?

❌ Building a powerful coalition among executives
❌ Establishing and communicating a new vision
✅ Creating a sense of urgency among management and employees
❌ Locating necessary financial resources

Explanation:
The key challenge was making people feel the urgency for change before action could occur.

Question 8

When David Pottruck presented his decision to Charles Schwab, which decision-making principle did he use?

❌ Seek advice from experienced counselors
✅ Share information and explain the decision
❌ Avoid conflicting data and seek confirming information
❌ Build multiple simultaneous alternatives

Explanation:
Pottruck focused on transparent communication to gain understanding and support.

Question 9

David Pottruck’s October 15 meeting at the San Francisco hotel was designed to:

❌ Establish a mindset of urgency
❌ Present a vision for a better world
❌ Anticipate obstacles and resistance
✅ All of the options are correct

Explanation:
The meeting served multiple change objectives—urgency, vision, and resistance management.

Question 10

Of Kotter & Cohen’s Eight-Step Model, which steps were demonstrated in the Charles Schwab case? (Select all that apply)

❌ Articulating a vision and empowering action
✅ Establishing urgency and creating a leadership team
❌ Fostering persistence and institutionalizing change
❌ Identifying short-term gains

Explanation:
The case clearly shows urgency creation and formation of a guiding coalition, the early steps in Kotter’s model.

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