CAT Exam  >  CAT Questions  >  DIRECTION for the question:Read the passage a... Start Learning for Free
DIRECTION for the question: Read the passage and answer the question based on it.
Demography of organizations, also called population ecology is an interesting field. It proposes that organisational mortality processes depend upon the age and size of the organizations, as well as on characteristics of populations and environments. Moreover, there is evidence of an imprinting process – meaning that environmental conditions at certain early phases in an organisation’s development have long-term consequence. In particular, organizations subject to intense competition have elevated mortality hazards at all ages. A central theme is structural inertia, the tendency for organizations to respond slowly relative to the speed of environmental change. A central argument holds that the inertia derives from the very characteristics that make organizations favoured actors in modern society in terms of reliability and (formal) accountability. It follows that changes in an organisation’s core features are disruptive and increase mortality hazards, at least in the short-run. Research on this subject tends to support this view. The concept of niche provides a framework for relating environmental variations and competition to population dynamics and segmentation. Much empirical work examines the niches of organisational populations in terms of dimensions of social, political, and economic environments. Most research in this field builds on theories of resource partition and of density dependence. Resource-partitioning theory concerns the relationship between increasing market concentration and increasing proliferation of specialists in mature industries. The key implication of this theory concerns the effects of concentration on the viability of specialist organizations (those that seek to exploit a narrow range of resources). The theory of density-dependent organisational evolution synthesizes ecological and institutional processes. It holds that growth in the number of organizations in a population (density) drives processes of social legitimatization and competition that, in turn, shape the vital rates.
Q. Most top-notch business consultants recommend changing the entire configuration of an organisation’s strategy, structure and systems. If the ideas contained in the passage are agreed to, then such a recommendation:
  • a)
    Tends to rejuvenate the organization
  • b)
    Tends to make the organization more aligned to the external environment
  • c)
    Tends to increase the competitiveness of the organization by redefining its core competence
  • d)
    Tends to increase the vulnerability of the organization
  • e)
    Tends to make the organization industry leader by reformulating its niche
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
DIRECTION for the question:Read the passage and answer the question ba...
Since change is ‘disruptive and increases mortality hazards’ it follows that ‘changing the entire configuration of an organisation’s strategies, structure and systems would make it more vulnerable.
View all questions of this test
Most Upvoted Answer
DIRECTION for the question:Read the passage and answer the question ba...
<br>

Explanation:

Increasing vulnerability of the organization:
- According to the passage, organizations tend to have structural inertia and respond slowly to environmental changes.
- Changing the entire configuration of an organization's strategy, structure, and systems can disrupt the organization's core features, increasing mortality hazards in the short run.
- This disruption can make the organization more vulnerable to competition and environmental pressures.

Therefore, the correct answer is option 'D' - Tends to increase the vulnerability of the organization.
Attention CAT Students!
To make sure you are not studying endlessly, EduRev has designed CAT study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CAT.
Explore Courses for CAT exam

Similar CAT Doubts

DIRECTION for the question: Read the passage and answer the question based on it.Demography of organizations, also called population ecology is an interesting field. It proposes that organisational mortality processes depend upon the age and size of the organizations, as well as on characteristics of populations and environments. Moreover, there is evidence of an imprinting process – meaning that environmental conditions at certain early phases in an organisation’s development have long-term consequence. In particular, organizations subject to intense competition have elevated mortality hazards at all ages. A central theme is structural inertia, the tendency for organizations to respond slowly relative to the speed of environmental change. A central argument holds that the inertia derives from the very characteristics that make organizations favoured actors in modern society in terms of reliability and (formal) accountability. It follows that changes in an organisation’s core features are disruptive and increase mortality hazards, at least in the short-run. Research on this subject tends to support this view. The concept of niche provides a framework for relating environmental variations and competition to population dynamics and segmentation. Much empirical work examines the niches of organisational populations in terms of dimensions of social, political, and economic environments. Most research in this field builds on theories of resource partition and of density dependence. Resource-partitioning theory concerns the relationship between increasing market concentration and increasing proliferation of specialists in mature industries. The key implication of this theory concerns the effects of concentration on the viability of specialist organizations (those that seek to exploit a narrow range of resources). The theory of density-dependent organisational evolution synthesizes ecological and institutional processes. It holds that growth in the number of organizations in a population (density) drives processes of social legitimatization and competition that, in turn, shape the vital rates.Q.Recently it was reported that Indian textile sector was not doing well. If the ideas contained in the passage are agreed to, then which of the following could be the possible reason(s)?A. All Indian firms are as old as international firms.B. Indian textile firms are dispersed all over the country, with most of them also having international presence.C. Textile firms in India were subjected to trade union activity in the period from 1960s to 1980s.

DIRECTION for the question: Read the passage and answer the question based on it.Demography of organizations, also called population ecology is an interesting field. It proposes that organisational mortality processes depend upon the age and size of the organizations, as well as on characteristics of populations and environments. Moreover, there is evidence of an imprinting process – meaning that environmental conditions at certain early phases in an organisation’s development have long-term consequence. In particular, organizations subject to intense competition have elevated mortality hazards at all ages. A central theme is structural inertia, the tendency for organizations to respond slowly relative to the speed of environmental change. A central argument holds that the inertia derives from the very characteristics that make organizations favoured actors in modern society in terms of reliability and (formal) accountability. It follows that changes in an organisation’s core features are disruptive and increase mortality hazards, at least in the short-run. Research on this subject tends to support this view. The concept of niche provides a framework for relating environmental variations and competition to population dynamics and segmentation. Much empirical work examines the niches of organisational populations in terms of dimensions of social, political, and economic environments. Most research in this field builds on theories of resource partition and of density dependence. Resource-partitioning theory concerns the relationship between increasing market concentration and increasing proliferation of specialists in mature industries. The key implication of this theory concerns the effects of concentration on the viability of specialist organizations (those that seek to exploit a narrow range of resources). The theory of density-dependent organisational evolution synthesizes ecological and institutional processes. It holds that growth in the number of organizations in a population (density) drives processes of social legitimatization and competition that, in turn, shape the vital rates.Q.Consider the following: “Tata Steel, one of biggest steel makers in the world, was born in Jamshedpur.” If above passage is true, then it can be concluded that location of Tata Steel has been one of the reasons for its success.A. The conclusion is false.B. This is a farfetched conclusion.C. This is a valid conclusion.

DIRECTION for the question: Read the passage and answer the question based on it.Demography of organizations, also called population ecology is an interesting field. It proposes that organisational mortality processes depend upon the age and size of the organizations, as well as on characteristics of populations and environments. Moreover, there is evidence of an imprinting process – meaning that environmental conditions at certain early phases in an organisation’s development have long-term consequence. In particular, organizations subject to intense competition have elevated mortality hazards at all ages. A central theme is structural inertia, the tendency for organizations to respond slowly relative to the speed of environmental change. A central argument holds that the inertia derives from the very characteristics that make organizations favoured actors in modern society in terms of reliability and (formal) accountability. It follows that changes in an organisation’s core features are disruptive and increase mortality hazards, at least in the short-run. Research on this subject tends to support this view. The concept of niche provides a framework for relating environmental variations and competition to population dynamics and segmentation. Much empirical work examines the niches of organisational populations in terms of dimensions of social, political, and economic environments. Most research in this field builds on theories of resource partition and of density dependence. Resource-partitioning theory concerns the relationship between increasing market concentration and increasing proliferation of specialists in mature industries. The key implication of this theory concerns the effects of concentration on the viability of specialist organizations (those that seek to exploit a narrow range of resources). The theory of density-dependent organisational evolution synthesizes ecological and institutional processes. It holds that growth in the number of organizations in a population (density) drives processes of social legitimatization and competition that, in turn, shape the vital rates.Q.“Tata Steel, one of biggest steel makers in the world, was born in Jamshedpur. The very success of Tata Steel could lead to its failure in the future and hence the challenge for Tata Steel is to recognize its strengths that made it successful in initial conditions and stick to them.”A. This is a valid conclusion.B. The conclusion is contrary to the ideas described in the passage.C. The conclusion is an internally contradictory.

Directions:Read the following passage and answer the question that follows.Few entrepreneurs start out with both a well-defined strategy and a plan for developing an organisation that can achieve that strategy. In fact, many start-ups, which dont have formal control systems, decision-making processes, or clear roles for employees, can hardly be called organisations. The founders of such ventures improvise. They perform most of the important functions themselves and make decisions as they go along.Informality is fine as long as entrepreneurs arent interested in building a large, sustainable business. Once that becomes their goal, however, they must start developing formal systems and processes. Such organisational infrastructure allows a venture to grow, but at the same time, it increases overhead and may slow down decision-making. How much infrastructure is enough and how much is too much? To match investments in infrastructure to the requirements of a ventures strategy, entrepreneurs must consider the degree to which their strategy depends on the following:As a young venture grows, its founders will probably need to delegate many of the tasks that they used to perform. To get employees to perform those tasks competently and diligently, the founders may need to establish mechanisms to monitor employees and standard operating procedures and policies. Consider an extreme example. Randy and Debbi Fields pass along their skills and knowledge through software that tells employees in every Mrs. Fields Cookies shop exactly how to make cookies and operate the business. The software analyses data such as local weather conditions and the day of the week to generate hourly instructions about such matters as which cookies to bake, when to offer free samples, and when to reorder chocolate chips.Telling employees how to do their jobs, however, can stifle initiative. Companies that require frontline employees to act quickly and resourcefully might decide to focus more on outcomes than on behaviour, using control systems that set performance targets for employees, compare results against objectives and provide appropriate incentives.In a small-scale start-up, everyone does a little bit of everything but as a business grows and tries to achieve economies of scale and scope, employees must be assigned clearly defined roles and grouped into appropriate organisational units. An all purpose workshop employee, for example, might become a machine tool operator, who is part of a manufacturing unit. Specialised activities need to be integrated by, for example, creating the position of a general manager, who coordinates the manufacturing and marketing functions, or through systems that are designed to measure and reward employees for cross-functional cooperation. Poor integrative mechanisms are reasons why geographic expansion, vertical integration, broadening of product lines and other strategies to achieve economies of scale and scope often fail.Cash-strapped businesses that are trying to grow need good systems to forecast and monitor the availability of funds. Outside sources of capital such as banks often refuse to advance funds to companies with weak controls and organisational infrastructure.If entrepreneurs hope to build a company that they can sell, they must start preparing early. Public markets and potential acquirers like to see an extended history of well-kept financial records and controls to reassure them of the soundness of the business.Q.None of the following statements can be inferred from the passage EXCEPT that

InstructionsRead the passage carefully and answer the questions givenMore and more companies, government agencies, educational institutions and philanthropic organisations are today in the grip of a new phenomenon: ‘metric fixation’. The key components of metric fixation are the belief that it is possible -and desirable - to replace professional judgment (acquired through personal experience and talent) with numerical indicators of comparative performance based upon standardised data (metrics); and that the best way to motivate people within these organisations is by attaching rewards and penalties to their measured performance.The rewards can be monetary, in the form of pay for performance, say, or reputational, in the form of college rankings, hospital ratings, surgical report cards and so on. But the most dramatic negative effect of metric fixation is its propensity to incentivise gaming: that is, encouraging professionals to maximise the metrics in ways that are at odds with the larger purpose of the organisation. If the rate of major crimes in a district becomes the metric according to which police officers are promoted, then some officers will respond by simply not recording crimes or downgrading them from major offences to misdemeanours. Or take the case of surgeons. When the metrics of success and failure are made public - affecting their reputation and income - some surgeons will improve their metric scores by refusing to operate on patients with more complex problems, whose surgical outcomes are more likely to be negative. Who suffers? The patients who don’t get operated upon.When reward is tied to measured performance, metric fixation invites just this sort of gaming. But metric fixation also leads to a variety of more subtle unintended negative consequences. These include goal displacement, which comes in many varieties: when performance is judged by a few measures, and the stakes are high (keeping one’s job, getting a pay rise or raising the stock price at the time that stock options are veste d), people focus on satisfying those measures -often at the expense of other, more important organisational goals that are not measured. The best-known example is ‘teaching to the test’, a widespread phenomenon that has distorted primary and secondary education in the United States since the adoption of the No Child Left Behind Act of 2001.Short-termism is another negative. Measured performance encourages what the US sociologist Robert K Merton in 1936 called ‘the imperious immediacy of interests … where the actor’s paramount concern with the foreseen immediate consequences excludes consideration of further or other consequences’. In short, advancing short-term goals at the expense of long-range considerations. This problem is endemic to publicly traded corporations that sacrifice long-term research and development, and the development of their staff, to the perceived imperatives of the quarterly report.To the debit side of the ledger must also be added the transactional costs of metrics: the expenditure of employee time by those tasked with compiling and processing the metrics in the first place - not to mention the time required to actually read them. . . .Q.Which of the following is NOT a consequence of the metric fixation phenomenon mentioned in the passage?

Top Courses for CAT

DIRECTION for the question:Read the passage and answer the question based on it.Demography of organizations, also called population ecology is an interesting field. It proposes that organisational mortality processes depend upon the age and size of the organizations, as well as on characteristics of populations and environments. Moreover, there is evidence of an imprinting process – meaning that environmental conditions at certain early phases in an organisation’s development have long-term consequence. In particular, organizations subject to intense competition have elevated mortality hazards at all ages. A central theme is structural inertia, the tendency for organizations to respond slowly relative to the speed of environmental change. A central argument holds that the inertia derives from the very characteristics that make organizations favoured actors in modern society in terms of reliability and (formal) accountability. It follows that changes in an organisation’s core features are disruptive and increase mortality hazards, at least in the short-run. Research on this subject tends to support this view. The concept of niche provides a framework for relating environmental variations and competition to population dynamics and segmentation. Much empirical work examines the niches of organisational populations in terms of dimensions of social, political, and economic environments. Most research in this field builds on theories of resource partition and of density dependence. Resource-partitioning theory concerns the relationship between increasing market concentration and increasing proliferation of specialists in mature industries. The key implication of this theory concerns the effects of concentration on the viability of specialist organizations (those that seek to exploit a narrow range of resources). The theory of density-dependent organisational evolution synthesizes ecological and institutional processes. It holds that growth in the number of organizations in a population (density) drives processes of social legitimatization and competition that, in turn, shape the vital rates.Q.Most top-notch business consultants recommend changing the entire configuration of an organisation’s strategy, structure and systems. If the ideas contained in the passage are agreed to, then such a recommendation:a)Tends to rejuvenate the organizationb)Tends to make the organization more aligned to the external environmentc)Tends to increase the competitiveness of the organization by redefining its core competenced)Tends to increase the vulnerability of the organizatione)Tends to make the organization industry leader by reformulating its nicheCorrect answer is option 'D'. Can you explain this answer?
Question Description
DIRECTION for the question:Read the passage and answer the question based on it.Demography of organizations, also called population ecology is an interesting field. It proposes that organisational mortality processes depend upon the age and size of the organizations, as well as on characteristics of populations and environments. Moreover, there is evidence of an imprinting process – meaning that environmental conditions at certain early phases in an organisation’s development have long-term consequence. In particular, organizations subject to intense competition have elevated mortality hazards at all ages. A central theme is structural inertia, the tendency for organizations to respond slowly relative to the speed of environmental change. A central argument holds that the inertia derives from the very characteristics that make organizations favoured actors in modern society in terms of reliability and (formal) accountability. It follows that changes in an organisation’s core features are disruptive and increase mortality hazards, at least in the short-run. Research on this subject tends to support this view. The concept of niche provides a framework for relating environmental variations and competition to population dynamics and segmentation. Much empirical work examines the niches of organisational populations in terms of dimensions of social, political, and economic environments. Most research in this field builds on theories of resource partition and of density dependence. Resource-partitioning theory concerns the relationship between increasing market concentration and increasing proliferation of specialists in mature industries. The key implication of this theory concerns the effects of concentration on the viability of specialist organizations (those that seek to exploit a narrow range of resources). The theory of density-dependent organisational evolution synthesizes ecological and institutional processes. It holds that growth in the number of organizations in a population (density) drives processes of social legitimatization and competition that, in turn, shape the vital rates.Q.Most top-notch business consultants recommend changing the entire configuration of an organisation’s strategy, structure and systems. If the ideas contained in the passage are agreed to, then such a recommendation:a)Tends to rejuvenate the organizationb)Tends to make the organization more aligned to the external environmentc)Tends to increase the competitiveness of the organization by redefining its core competenced)Tends to increase the vulnerability of the organizatione)Tends to make the organization industry leader by reformulating its nicheCorrect answer is option 'D'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about DIRECTION for the question:Read the passage and answer the question based on it.Demography of organizations, also called population ecology is an interesting field. It proposes that organisational mortality processes depend upon the age and size of the organizations, as well as on characteristics of populations and environments. Moreover, there is evidence of an imprinting process – meaning that environmental conditions at certain early phases in an organisation’s development have long-term consequence. In particular, organizations subject to intense competition have elevated mortality hazards at all ages. A central theme is structural inertia, the tendency for organizations to respond slowly relative to the speed of environmental change. A central argument holds that the inertia derives from the very characteristics that make organizations favoured actors in modern society in terms of reliability and (formal) accountability. It follows that changes in an organisation’s core features are disruptive and increase mortality hazards, at least in the short-run. Research on this subject tends to support this view. The concept of niche provides a framework for relating environmental variations and competition to population dynamics and segmentation. Much empirical work examines the niches of organisational populations in terms of dimensions of social, political, and economic environments. Most research in this field builds on theories of resource partition and of density dependence. Resource-partitioning theory concerns the relationship between increasing market concentration and increasing proliferation of specialists in mature industries. The key implication of this theory concerns the effects of concentration on the viability of specialist organizations (those that seek to exploit a narrow range of resources). The theory of density-dependent organisational evolution synthesizes ecological and institutional processes. It holds that growth in the number of organizations in a population (density) drives processes of social legitimatization and competition that, in turn, shape the vital rates.Q.Most top-notch business consultants recommend changing the entire configuration of an organisation’s strategy, structure and systems. If the ideas contained in the passage are agreed to, then such a recommendation:a)Tends to rejuvenate the organizationb)Tends to make the organization more aligned to the external environmentc)Tends to increase the competitiveness of the organization by redefining its core competenced)Tends to increase the vulnerability of the organizatione)Tends to make the organization industry leader by reformulating its nicheCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for DIRECTION for the question:Read the passage and answer the question based on it.Demography of organizations, also called population ecology is an interesting field. It proposes that organisational mortality processes depend upon the age and size of the organizations, as well as on characteristics of populations and environments. Moreover, there is evidence of an imprinting process – meaning that environmental conditions at certain early phases in an organisation’s development have long-term consequence. In particular, organizations subject to intense competition have elevated mortality hazards at all ages. A central theme is structural inertia, the tendency for organizations to respond slowly relative to the speed of environmental change. A central argument holds that the inertia derives from the very characteristics that make organizations favoured actors in modern society in terms of reliability and (formal) accountability. It follows that changes in an organisation’s core features are disruptive and increase mortality hazards, at least in the short-run. Research on this subject tends to support this view. The concept of niche provides a framework for relating environmental variations and competition to population dynamics and segmentation. Much empirical work examines the niches of organisational populations in terms of dimensions of social, political, and economic environments. Most research in this field builds on theories of resource partition and of density dependence. Resource-partitioning theory concerns the relationship between increasing market concentration and increasing proliferation of specialists in mature industries. The key implication of this theory concerns the effects of concentration on the viability of specialist organizations (those that seek to exploit a narrow range of resources). The theory of density-dependent organisational evolution synthesizes ecological and institutional processes. It holds that growth in the number of organizations in a population (density) drives processes of social legitimatization and competition that, in turn, shape the vital rates.Q.Most top-notch business consultants recommend changing the entire configuration of an organisation’s strategy, structure and systems. If the ideas contained in the passage are agreed to, then such a recommendation:a)Tends to rejuvenate the organizationb)Tends to make the organization more aligned to the external environmentc)Tends to increase the competitiveness of the organization by redefining its core competenced)Tends to increase the vulnerability of the organizatione)Tends to make the organization industry leader by reformulating its nicheCorrect answer is option 'D'. Can you explain this answer?.
Solutions for DIRECTION for the question:Read the passage and answer the question based on it.Demography of organizations, also called population ecology is an interesting field. It proposes that organisational mortality processes depend upon the age and size of the organizations, as well as on characteristics of populations and environments. Moreover, there is evidence of an imprinting process – meaning that environmental conditions at certain early phases in an organisation’s development have long-term consequence. In particular, organizations subject to intense competition have elevated mortality hazards at all ages. A central theme is structural inertia, the tendency for organizations to respond slowly relative to the speed of environmental change. A central argument holds that the inertia derives from the very characteristics that make organizations favoured actors in modern society in terms of reliability and (formal) accountability. It follows that changes in an organisation’s core features are disruptive and increase mortality hazards, at least in the short-run. Research on this subject tends to support this view. The concept of niche provides a framework for relating environmental variations and competition to population dynamics and segmentation. Much empirical work examines the niches of organisational populations in terms of dimensions of social, political, and economic environments. Most research in this field builds on theories of resource partition and of density dependence. Resource-partitioning theory concerns the relationship between increasing market concentration and increasing proliferation of specialists in mature industries. The key implication of this theory concerns the effects of concentration on the viability of specialist organizations (those that seek to exploit a narrow range of resources). The theory of density-dependent organisational evolution synthesizes ecological and institutional processes. It holds that growth in the number of organizations in a population (density) drives processes of social legitimatization and competition that, in turn, shape the vital rates.Q.Most top-notch business consultants recommend changing the entire configuration of an organisation’s strategy, structure and systems. If the ideas contained in the passage are agreed to, then such a recommendation:a)Tends to rejuvenate the organizationb)Tends to make the organization more aligned to the external environmentc)Tends to increase the competitiveness of the organization by redefining its core competenced)Tends to increase the vulnerability of the organizatione)Tends to make the organization industry leader by reformulating its nicheCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CAT. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.
Here you can find the meaning of DIRECTION for the question:Read the passage and answer the question based on it.Demography of organizations, also called population ecology is an interesting field. It proposes that organisational mortality processes depend upon the age and size of the organizations, as well as on characteristics of populations and environments. Moreover, there is evidence of an imprinting process – meaning that environmental conditions at certain early phases in an organisation’s development have long-term consequence. In particular, organizations subject to intense competition have elevated mortality hazards at all ages. A central theme is structural inertia, the tendency for organizations to respond slowly relative to the speed of environmental change. A central argument holds that the inertia derives from the very characteristics that make organizations favoured actors in modern society in terms of reliability and (formal) accountability. It follows that changes in an organisation’s core features are disruptive and increase mortality hazards, at least in the short-run. Research on this subject tends to support this view. The concept of niche provides a framework for relating environmental variations and competition to population dynamics and segmentation. Much empirical work examines the niches of organisational populations in terms of dimensions of social, political, and economic environments. Most research in this field builds on theories of resource partition and of density dependence. Resource-partitioning theory concerns the relationship between increasing market concentration and increasing proliferation of specialists in mature industries. The key implication of this theory concerns the effects of concentration on the viability of specialist organizations (those that seek to exploit a narrow range of resources). The theory of density-dependent organisational evolution synthesizes ecological and institutional processes. It holds that growth in the number of organizations in a population (density) drives processes of social legitimatization and competition that, in turn, shape the vital rates.Q.Most top-notch business consultants recommend changing the entire configuration of an organisation’s strategy, structure and systems. If the ideas contained in the passage are agreed to, then such a recommendation:a)Tends to rejuvenate the organizationb)Tends to make the organization more aligned to the external environmentc)Tends to increase the competitiveness of the organization by redefining its core competenced)Tends to increase the vulnerability of the organizatione)Tends to make the organization industry leader by reformulating its nicheCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of DIRECTION for the question:Read the passage and answer the question based on it.Demography of organizations, also called population ecology is an interesting field. It proposes that organisational mortality processes depend upon the age and size of the organizations, as well as on characteristics of populations and environments. Moreover, there is evidence of an imprinting process – meaning that environmental conditions at certain early phases in an organisation’s development have long-term consequence. In particular, organizations subject to intense competition have elevated mortality hazards at all ages. A central theme is structural inertia, the tendency for organizations to respond slowly relative to the speed of environmental change. A central argument holds that the inertia derives from the very characteristics that make organizations favoured actors in modern society in terms of reliability and (formal) accountability. It follows that changes in an organisation’s core features are disruptive and increase mortality hazards, at least in the short-run. Research on this subject tends to support this view. The concept of niche provides a framework for relating environmental variations and competition to population dynamics and segmentation. Much empirical work examines the niches of organisational populations in terms of dimensions of social, political, and economic environments. Most research in this field builds on theories of resource partition and of density dependence. Resource-partitioning theory concerns the relationship between increasing market concentration and increasing proliferation of specialists in mature industries. The key implication of this theory concerns the effects of concentration on the viability of specialist organizations (those that seek to exploit a narrow range of resources). The theory of density-dependent organisational evolution synthesizes ecological and institutional processes. It holds that growth in the number of organizations in a population (density) drives processes of social legitimatization and competition that, in turn, shape the vital rates.Q.Most top-notch business consultants recommend changing the entire configuration of an organisation’s strategy, structure and systems. If the ideas contained in the passage are agreed to, then such a recommendation:a)Tends to rejuvenate the organizationb)Tends to make the organization more aligned to the external environmentc)Tends to increase the competitiveness of the organization by redefining its core competenced)Tends to increase the vulnerability of the organizatione)Tends to make the organization industry leader by reformulating its nicheCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for DIRECTION for the question:Read the passage and answer the question based on it.Demography of organizations, also called population ecology is an interesting field. It proposes that organisational mortality processes depend upon the age and size of the organizations, as well as on characteristics of populations and environments. Moreover, there is evidence of an imprinting process – meaning that environmental conditions at certain early phases in an organisation’s development have long-term consequence. In particular, organizations subject to intense competition have elevated mortality hazards at all ages. A central theme is structural inertia, the tendency for organizations to respond slowly relative to the speed of environmental change. A central argument holds that the inertia derives from the very characteristics that make organizations favoured actors in modern society in terms of reliability and (formal) accountability. It follows that changes in an organisation’s core features are disruptive and increase mortality hazards, at least in the short-run. Research on this subject tends to support this view. The concept of niche provides a framework for relating environmental variations and competition to population dynamics and segmentation. Much empirical work examines the niches of organisational populations in terms of dimensions of social, political, and economic environments. Most research in this field builds on theories of resource partition and of density dependence. Resource-partitioning theory concerns the relationship between increasing market concentration and increasing proliferation of specialists in mature industries. The key implication of this theory concerns the effects of concentration on the viability of specialist organizations (those that seek to exploit a narrow range of resources). The theory of density-dependent organisational evolution synthesizes ecological and institutional processes. It holds that growth in the number of organizations in a population (density) drives processes of social legitimatization and competition that, in turn, shape the vital rates.Q.Most top-notch business consultants recommend changing the entire configuration of an organisation’s strategy, structure and systems. If the ideas contained in the passage are agreed to, then such a recommendation:a)Tends to rejuvenate the organizationb)Tends to make the organization more aligned to the external environmentc)Tends to increase the competitiveness of the organization by redefining its core competenced)Tends to increase the vulnerability of the organizatione)Tends to make the organization industry leader by reformulating its nicheCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of DIRECTION for the question:Read the passage and answer the question based on it.Demography of organizations, also called population ecology is an interesting field. It proposes that organisational mortality processes depend upon the age and size of the organizations, as well as on characteristics of populations and environments. Moreover, there is evidence of an imprinting process – meaning that environmental conditions at certain early phases in an organisation’s development have long-term consequence. In particular, organizations subject to intense competition have elevated mortality hazards at all ages. A central theme is structural inertia, the tendency for organizations to respond slowly relative to the speed of environmental change. A central argument holds that the inertia derives from the very characteristics that make organizations favoured actors in modern society in terms of reliability and (formal) accountability. It follows that changes in an organisation’s core features are disruptive and increase mortality hazards, at least in the short-run. Research on this subject tends to support this view. The concept of niche provides a framework for relating environmental variations and competition to population dynamics and segmentation. Much empirical work examines the niches of organisational populations in terms of dimensions of social, political, and economic environments. Most research in this field builds on theories of resource partition and of density dependence. Resource-partitioning theory concerns the relationship between increasing market concentration and increasing proliferation of specialists in mature industries. The key implication of this theory concerns the effects of concentration on the viability of specialist organizations (those that seek to exploit a narrow range of resources). The theory of density-dependent organisational evolution synthesizes ecological and institutional processes. It holds that growth in the number of organizations in a population (density) drives processes of social legitimatization and competition that, in turn, shape the vital rates.Q.Most top-notch business consultants recommend changing the entire configuration of an organisation’s strategy, structure and systems. If the ideas contained in the passage are agreed to, then such a recommendation:a)Tends to rejuvenate the organizationb)Tends to make the organization more aligned to the external environmentc)Tends to increase the competitiveness of the organization by redefining its core competenced)Tends to increase the vulnerability of the organizatione)Tends to make the organization industry leader by reformulating its nicheCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice DIRECTION for the question:Read the passage and answer the question based on it.Demography of organizations, also called population ecology is an interesting field. It proposes that organisational mortality processes depend upon the age and size of the organizations, as well as on characteristics of populations and environments. Moreover, there is evidence of an imprinting process – meaning that environmental conditions at certain early phases in an organisation’s development have long-term consequence. In particular, organizations subject to intense competition have elevated mortality hazards at all ages. A central theme is structural inertia, the tendency for organizations to respond slowly relative to the speed of environmental change. A central argument holds that the inertia derives from the very characteristics that make organizations favoured actors in modern society in terms of reliability and (formal) accountability. It follows that changes in an organisation’s core features are disruptive and increase mortality hazards, at least in the short-run. Research on this subject tends to support this view. The concept of niche provides a framework for relating environmental variations and competition to population dynamics and segmentation. Much empirical work examines the niches of organisational populations in terms of dimensions of social, political, and economic environments. Most research in this field builds on theories of resource partition and of density dependence. Resource-partitioning theory concerns the relationship between increasing market concentration and increasing proliferation of specialists in mature industries. The key implication of this theory concerns the effects of concentration on the viability of specialist organizations (those that seek to exploit a narrow range of resources). The theory of density-dependent organisational evolution synthesizes ecological and institutional processes. It holds that growth in the number of organizations in a population (density) drives processes of social legitimatization and competition that, in turn, shape the vital rates.Q.Most top-notch business consultants recommend changing the entire configuration of an organisation’s strategy, structure and systems. If the ideas contained in the passage are agreed to, then such a recommendation:a)Tends to rejuvenate the organizationb)Tends to make the organization more aligned to the external environmentc)Tends to increase the competitiveness of the organization by redefining its core competenced)Tends to increase the vulnerability of the organizatione)Tends to make the organization industry leader by reformulating its nicheCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice CAT tests.
Explore Courses for CAT exam

Top Courses for CAT

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev