Organizational Dynamics: 2016 – 2018

Indian Institute of Management Udaipur

End-term Exam Key

Total Points – 100

Section A
(10 points)

1) Which one of the following is NOT a component of Horizontal Coordination Model with
regards to innovation?

a) Specialization
b) Boundary spanning
c) Open innovation
d) None of the above (textbook, p.445-446)

2) Excessive focus on costs, failure to perceive benefits, and lack of coordination and
cooperation etc. often act as ______________ in an innovative organization.

Obvious things to expect

Barriers to change (textbook, p.457)
Facilitators
All of the above

3) Entrepreneurial stage, collectivity stage, formalization stage etc. are processes of

____________ development in an organization.

a) Cultural
b) Leadership
c) Team
d) Life cycle (textbook, p.545-549)

4) According to Max Weber, although ______________ in an organization is a threat to

personal liberties, it is also the most efficient possible system of organizing.

a) Red tape
b) Bounded rationality
c) Bureaucracy (textbook, p.551)
d) Formalization

5) Which one of the following could be regarded as an element of the process of ecological
change?

a) Variation
b) Selection
c) Retention
d) All of the above (textbook, p.187-188)

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6) ______________ is the emergence of a common structure and approach among
organizations in the same field.

a) Institutional coordination
b) Institutional symmetry
c) Institutional aphorism
d) Institutional isomorphism (textbook, p.191)

7) A family-owned hardware store situated in a secluded suburban community is an example

of _____________ environment.

a) Complex
b) Simple (textbook, p. 257)
c) Rural
d) Paradoxical

8) As environmental uncertainty increases, organizations tend to become more _________,

which means decentralizing authority and responsibility to lower levels, encouraging
employees to take care of problems by working directly with one another, encouraging
teamwork, and taking an informal approach to assigning tasks and responsibilities.

a) Organic (textbook, p.266-267)

b) Divergent
c) Task-oriented
d) Relationship-based

9) _________ refers to the high-tech analysis of a company’s data in order to make better
strategic decisions.

a) Organizational strategy
b) Transaction approach
c) Business intelligence (textbook, p.499)
d) Behaviour control

10) The balanced scorecard and strategy map are techniques used primarily by _________
level managers.

a) Every
b) Top and upper (textbook, p.511)
c) Middle and lower
d) All of the above

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 Section B
(40 points)

Respond to any TWO of the following questions. These questions are essay-type. You are
expected to elaborate on your responses.

1) Describe the processes of knowledge management as presented in “A Note on Knowledge

Management” with proper examples. For every process, please make separate paragraphs for
description and example. [4 (2.5+2.5)] = 20 points

The four distinct processes are:

1) Generating – creation of knowledge

2) Organizing – systematically saving the knowledge for easy and proper retrieval
3) Developing – Further refinement of knowledge
4) Distributing – how people gain access to the material

If you just describe all the four processes without examples – you get 10 points
If you describe and give examples of only 2 of the processes – you get 10 points
If you give examples of all the four processes without describing them – you get 10
points

2) Describe with examples any 4 of the characteristic features of service industry technology.
For every feature, please make separate paragraphs for description and example [4 (2.5+2.5)]
= 20 points

The 8 characteristic features of service industry technology are (textbook p. 592-594):

1) Intangible output
2) Production and consumption take place simultaneously
3) Labour and knowledge-intensive
4) Customer interaction generally high
5) Human element very important
6) Quality is perceived and difficult to measure
7) Rapid response time is usually necessary, &
8) Site of facility is extremely important

If you just describe all the four features without examples – you get 10 points
If you describe and give examples of only 2 of the features – you get 10 points
If you give examples of all the four features without describing them – you get 10 points

3) Describe any four requirements of change and innovation at an organizational level. 5x4 =
20 points

The 5 requirements for change and innovation are (textbook, p.434 – 436):

1) Ideas
2) Need
3) Decision to adopt
4) Implementation

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5) Resources

If you describe any 4 of them - you get 20 points

If you describe any 3 of them – you get 12 points
Or else you get 7 points

Section C
(50 points)

1) How does Meru gain competitive advantage in its service business? – 10 points

a) State of the art processes

b) Investment in technology
c) Automation
d) Scale

Resulting in the achievement of multiple goals, including making money, providing

customer satisfaction and maximizing asset utilization.

If you write 3 of the aspects with adequate explanation – you get 10 points
If you write 2 of the aspects with adequate explanation – you get 7 points
Or else, you get 4 points

2) Why has Meru invested so heavily in technology? What have been the positives and
negatives? – 15 points

a) Reasons for investment – 5 points

i. To scale up service efficiently

ii. To improve service consistency and reliability and reduce the frequency of poor
customer service.
ii. The size of technology helps the company anticipate problems, wherein it is no longer
in a reactive mode.

If you describe all the 3 aspects – you get 5 points (full marks for this subsection)
If you describe any 2 aspect – you get 4 points
Or else, you get 2 points

b) Positive effects – 7 points

i. Short booking time.

ii. Meru’s cabs are on time at least 97 per cent of the time
iii. Streamlined call center to reduce customer wait time
iv. Integrated real-time website
v. Service delivery determined only when the meter is switched on

If you describe any 3 aspects – you get 7 points (full marks for this subsection)
If you describe any 2 aspects – you get 5 points
Or else, you get 2 points

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c) Negative effects – 3 points

i. The biggest negative is the high fixed cost

If you describe this aspect you get 3 points, or else you get no point

3) What are the operating challenges Meru faces and how does it propose to overcome them?
Do you see hurdles to growth arising from its operational decisions? – 15 points

a. Related to the driver – 5 points

i. No driver bids
ii. Lack of punctuality
iii. Driver cheats

If you describe any 2 aspects – you get 5 points (full marks for this subsection)
If you describe any 1 aspect – you get 3 points
Or else, you get 2 points

b. Related to the cab – 5 points

i. Old cabs
ii. Cab breaks down in an area where there is limited presence of other Meru cabs.
iii. One of the features within the cab, such as the meter, may not be working.

If you describe any 2 aspects – you get 5 points (full marks for this subsection)
If you describe any 1 aspect – you get 3 points
Or else, you get 2 points

c. Specific to some cities – 5 points

i. Customer comes late and the cab is waiting on a busy street.

ii. In cities like Mumbai, there may be delays due to traffic bottlenecks.
iii. Competition from low-cost radio cab operators in cities like Delhi and Mumbai.

If you describe any 2 aspects – you get 5 points (full marks for this subsection)
If you describe any 1 aspect – you get 3 points
Or else, you get 2 points

You get a maximum of 3 points for discussion on the hurdles

4) Discuss the elements of a good service design in the context of Meru Cabs. – 10 points

i. Is it user-friendly?
ii. Is it robust?
iii. Is it structured so that consistent performance by its people and systems is easily
maintained?”
iv. Does it provide effective links between the back office and the front office so that
nothing falls between the cracks?

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v. Does it manage the evidence of service quality in such a way that customers see the
value of the service provided?
vi. Is it cost-effective?

If you describe any 3 aspects – you get 10 points (full marks for this subsection)
If you describe any 2 aspect – you get 7 points
Or else, you get 4 points