What is the main focus of Resource Dependence Theory?
a) Internal resource allocation
b) External control over organizational resources
c) Employee satisfaction
d) Organizational autonomy
Answer: b) External control over organizational resources
Who are the key contributors to Resource Dependence Theory?
a) Jeffrey Pfeffer and Gerald Salancik
b) Peter Drucker and Michael Porter
c) Henry Mintzberg and Philip Kotler
d) Herbert Simon and Chester Barnard
Answer: a) Jeffrey Pfeffer and Gerald Salancik
What is the title of the foundational book on Resource Dependence Theory?
a) “Competitive Advantage”
b) “The External Control of Organizations”
c) “The Functions of the Executive”
d) “Managing Innovation”
Answer: b) “The External Control of Organizations”
Which year marks the introduction of Resource Dependence Theory?
a) 1965
b) 1978
c) 1985
d) 1992
Answer: b) 1978
Resource Dependence Theory suggests that organizations are dependent on:
a) Technological advancements
b) Internal stakeholders
c) External resources
d) Organizational culture
Answer: c) External resources
According to Resource Dependence Theory, dependency increases when:
a) Resources are abundant
b) Resources are scarce and critical
c) Organizations have diversified suppliers
d) There is no competition
Answer: b) Resources are scarce and critical
What is one strategy organizations use to reduce resource dependency?
a) Centralized decision-making
b) Vertical integration
c) Employee layoffs
d) Eliminating partnerships
Answer: b) Vertical integration
What is the role of interlocking directorates in Resource Dependence Theory?
a) Enhancing internal efficiency
b) Reducing resource dependency through strategic alliances
c) Focusing on customer retention
d) Streamlining production processes
Answer: b) Reducing resource dependency through strategic alliances
Which environment is Resource Dependence Theory most applicable to?
a) Stable and predictable environments
b) Dynamic and uncertain environments
c) Bureaucratic organizations
d) Small businesses only
Answer: b) Dynamic and uncertain environments
Resource Dependence Theory views power relationships as:
a) Symmetrical and equal
b) Asymmetrical based on resource control
c) Irrelevant to organizational success
d) Always in favor of smaller organizations
Answer: b) Asymmetrical based on resource control
Which type of organization is most likely to benefit from applying Resource Dependence Theory?
a) Highly diversified corporations
b) Organizations in resource-scarce industries
c) Sole proprietorships
d) Government agencies
Answer: b) Organizations in resource-scarce industries
Resource Dependence Theory highlights the importance of:
a) Internal innovation
b) Controlling external dependencies
c) Employee engagement
d) Operational efficiency
Answer: b) Controlling external dependencies
What is a limitation of Resource Dependence Theory?
a) Focuses too much on internal processes
b) Neglects power dynamics in resource relationships
c) Assumes static resource environments
d) Overemphasizes organizational culture
Answer: c) Assumes static resource environments
What is a common application of Resource Dependence Theory in business?
a) Marketing strategies
b) Diversifying supplier relationships
c) Enhancing employee benefits
d) Implementing cost-cutting measures
Answer: b) Diversifying supplier relationships
What role does diversification play in Resource Dependence Theory?
a) Reduces dependency on specific resources
b) Focuses exclusively on core competencies
c) Increases dependency on external stakeholders
d) Limits organizational growth
Answer: a) Reduces dependency on specific resources
In which industry is Resource Dependence Theory particularly relevant?
a) Retail
b) Natural resources extraction
c) Information technology
d) Hospitality
Answer: b) Natural resources extraction
How does Resource Dependence Theory view alliances?
a) As a means to increase internal competition
b) As a strategy to reduce resource dependency
c) As irrelevant to organizational success
d) As a method to decentralize decision-making
Answer: b) As a strategy to reduce resource dependency
What is a key factor influencing resource dependency?
a) Organizational size
b) Availability of alternative resources
c) Employee turnover
d) Market share
Answer: b) Availability of alternative resources
Which organizational structure is aligned with Resource Dependence Theory?
a) Bureaucratic structure
b) Flat structure
c) Network structure
d) Hierarchical structure
Answer: c) Network structure
Which governance mechanism reduces resource dependency?
a) Increased outsourcing
b) Vertical integration
c) Decentralization
d) Eliminating alliances
Answer: b) Vertical integration
What is the ultimate goal of organizations under Resource Dependence Theory?
a) Eliminate all external dependencies
b) Balance resource dependency and organizational autonomy
c) Maximize internal efficiencies
d) Avoid forming partnerships
Answer: b) Balance resource dependency and organizational autonomy
What does Resource Dependence Theory emphasize about the external environment?
a) It is static and predictable
b) It shapes organizational strategies and behaviors
c) It has minimal impact on internal operations
d) It is controlled entirely by the organization
Answer: b) It shapes organizational strategies and behaviors
What is the primary focus of power in Resource Dependence Theory?
a) Internal management control
b) Negotiating resource dependencies
c) Aligning employee performance
d) Reducing market competition
Answer: b) Negotiating resource dependencies
What role do suppliers play in Resource Dependence Theory?
a) Irrelevant to organizational dependency
b) Central to creating dependency dynamics
c) Solely focused on cost reduction
d) Secondary to customer relationships
Answer: b) Central to creating dependency dynamics
What is the relationship between power and resource control?
a) Power is irrelevant in resource dependency
b) Power increases with resource control
c) Power decreases with resource control
d) Power is constant regardless of resource availability
Answer: b) Power increases with resource control
How can organizations enhance their autonomy in resource dependency?
a) Relying on a single supplier
b) Forming multiple alliances
c) Eliminating strategic partnerships
d) Centralizing all decision-making
Answer: b) Forming multiple alliances
What is an example of resource dependency mitigation?
a) Implementing cost-cutting measures
b) Reducing supplier diversity
c) Acquiring a critical supplier
d) Decentralizing authority
Answer: c) Acquiring a critical supplier
Resource Dependence Theory highlights the importance of:
a) Technological innovation
b) Managing external relationships
c) Streamlining internal operations
d) Employee empowerment
Answer: b) Managing external relationships
What is a disadvantage of high resource dependency?
a) Increased organizational autonomy
b) Higher vulnerability to external control
c) Enhanced operational flexibility
d) Reduced strategic partnerships
Answer: b) Higher vulnerability to external control
What role do suppliers play in RDT?
a) Central to creating dependency dynamics
b) Secondary to customer relationships
c) Irrelevant in competitive industries
d) Solely focused on cost reduction
Answer: a) Central to creating dependency dynamics
What is the ultimate goal of organizations under RDT?
a) To eliminate external resource dependence
b) To balance dependency and autonomy
c) To maximize internal efficiencies
d) To avoid alliances
Answer: b) To balance dependency and autonomy
What does RDT emphasize about the external environment?
a) It is static and predictable
b) It shapes organizational strategies and behaviors
c) It has minimal impact on internal operations
d) It should be controlled entirely by the organization
Answer: b) It shapes organizational strategies and behaviors