Business Management Exam 2

_____ is the stage of the innovation process at which an organization introduces new products or services to the marketplace.

Application launch

Which of the following is a possible diagnostic activity in organization development?

Attitude surveys

_____ is the process of systematically retaining power and authority in the hands of higher-level managers.

Centralization

_____ is defined as a clear and distinct line of authority among the positions in an organization.

Chain of command

Which of the following can help make the reengineering process more effective?

Creating a sense of urgency in the organization

Which of the following is a disadvantage of functional departmentalization?

Decision making may tend to become slower as the organization grows.

The top management at Phoenix Inc. planned to shift their corporate office to a bigger and better facility about four streets away from the current location. The top managers knew that their decision would meet with considerable employee resistance, so they informed all the employees well in advance of the advantages of moving to the new office. This minimized the employees' resistance. Which of the following techniques of overcoming resistance is illustrated in the scenario?

Education

The top management at Omega Inc. recently initiated an employee motivation drive to improve employee morale and in turn decrease turnover rates. It has now commissioned a statistics firm to check the effect of its initiative on the employees' morale. Which step of the comprehensive approach to change is illustrated in the scenario?

Evaluation and follow-up

Gamma Corp. is planning to bring in new internal standards for all the products it manufactures. The new standards will ensure better quality and will also help the company gain a competitive advantage. However, the factors that stand in the way of the change are increased workload on employees and the need for skill development among employees. To minimize these factors that hinder the change, Gamma has decided to motivate its employees through a reward system. Which of the following concepts is illustrated in the scenario?

Force-field analysis

A company has built a new manufacturing plant to increase production. This scenario illustrates which step in the Lewin model of organization change?

Implementation

During which phase of the organizational innovation process do most organizations have access to an innovation and apply it in the same way?

Innovation maturity

_____ is the degree to which the various subunits must work together in a coordinated fashion.

Integration

_____ was developed to increase the total number of tasks workers perform. As a result, all workers perform a wide variety of tasks, which presumably reduces the level of job dissatisfaction.

Job enlargement

_____ involves systematically moving employees from one job to another.

Job rotation

_____ is a period of stability in an organizational lifecycle, eventually evolving into decline.

Maturity

Which of the following is an example of identifying a new niche in an established market?

Modifying a computer so that it is usable by untrained persons

Which of the following exemplifies the first step in the comprehensive organization change model?

Noticing that the pension fund has less cash than needed to provide the guaranteed employee benefits

Which of the following is a characteristic of Weber's bureaucracy?

Promotions based on technical expertise

_____ is a piecemeal response to circumstances as they develop.

Reactive change

At Libra Motors Inc. operations managers give availability information to the dealerships department. When the dealerships department has a specific order, it is sent to the operations department. Which of the following concepts is illustrated in the scenario?

Reciprocal interdependence

​Samantha runs a store that exclusively sells handmade vegan cosmetics. The store has a wide range of products manufactured by different companies. The store is relatively small in size and Samantha did not have to invest a lot in it. She knows that only a small segment of customers buy such products and she exclusively focuses on them. Which of the following can be inferred from the scenario?

Samantha uses a niche strategy in the retail industry.

Beta LLC has decided to change its hiring criteria so that more people with technical expertise can join the company. Which step of the change process is illustrated in the scenario?

Selection of appropriate change technique

Which of the following statements is true about the service industry?

Service businesses are the fastest-growing segment of small-business enterprise.

Begun in 1976, _____ are designed to consolidate information from various disciplines and institutions, including technical and professional schools.

Small Business Development Centers

Identify an accurate comparison between small businesses and large businesses.

Small businesses are better than large businesses in identifying niches.

Leading Edge Software Inc. has introduced a new activity called "Group Farming" in which the company's executive groups participate in farming activities for three hours every month. This activity has been designed by the company to emphasize the importance of interdependence and coordination among its employees. Which of the following organization development techniques is the company using?

Team building

Which of the following is an advantage of starting a business from scratch?​

The entrepreneur is free to choose inventories and locations.

Which of the following is a disadvantage of buying an existing business?

The entrepreneur may suffer the ill effects of a prior owner's errors.

Which of the following statements is true about a franchise agreement?

The franchisee can consult the franchiser for managerial and financial help.

Which of the following statements is true about mechanistic organizations?

They structure their activities in predictable ways.

When Beta Inc. acquired Redd Communications, there was a huge uproar by the staff of Redd Communications as there were rumors of staff reductions and operations closures. _____ was the cause for this reaction by the Redd Communications staff.

Uncertainty

Delta Inc., an electric car maker, initially had financing from a small group of investors seeking to make profits through rapid growth. The investors did not lend money, but invested it in the company in return for stock. Delta's source of financing was:

a venture capital company.

When compared to flat organizations, tall organizations:

are more expensive.

Entrepreneurs:

are usually better at discovering new markets than are larger, more mature organizations.

The financial plan is made up of a cash budget, an income statement, balance sheets, and a _____.

break-even chart

In _____ technology, raw materials are transformed to a finished product by a series of machine transformations in such a way that the composition of the materials themselves is changed.

continuous-process

A(n) _____ is any advantage that comes to a firm because it exploits an opportunity before any other firm does.

first-mover advantage

A(n) _____ is a person who actually conceives of and develops the new idea, product, or service by means of the creative process.

inventor

One of the benefits of job specialization is that:​

it makes employees proficient at a task.

In _____, the jobs do not change, but instead workers move from job to job.

job rotation

In organizations using _____, the product is manufactured in assembly-line fashion by combining component parts into another part or finished product.

large-batch technology

Nokia and Samsung make cell phones. They operate in the ____ industry.

manufacturing

A wide span of management in a flat organization may result in a manager having _____.

more administrative responsibility

Substantive modification to some part of an organization is known as _____.

organization change

Robin Plastics Inc. recently set up a new strategic business unit. The company made changes in the area of _____.

organization structure and design

The first step of the change process involves:

recognizing the need for change.

The Red Wagon Utility Store sells home supplies to residents on Charlton Street. It operates in the _____ industry.

retail

​Pet care salons, skin clinics, and day care centers are all examples of businesses operating in the _____ industry.

service

​In the reengineering process, the first step involves:

setting goals and developing a strategy.

A finding of Woodward's study about forms of technology was that:

small-batch organizations tended to have minimal bureaucracy.

The advantage of using the functional departmentalization approach is that:

supervision is facilitated because an individual manager needs to be familiar with only a small set of skills.

ProDairy Inc. reduced the prices of its products to combat competitors that were selling dairy products at lower prices. This scenario illustrates a force for change present in the _____ of an organization.

task environment

Organizational size is defined as:

the total number of full-time or full-time-equivalent employees in an organization.

Wendy is reluctant to accept a new job offer because she's worried about her ability to meet new job demands. The most likely reason for such employee resistance to change is _____.

uncertainty

The _____ of an organizational life cycle is characterized by growth and the expansion of organizational resources.

youth

Which of the following is an advantage of buying an existing business?

​Established supplier relationships Correct

Identify an accurate statement about small businesses and large businesses.

​Most of the products made by big manufacturers are sold to consumers by small businesses.

Which of the following is a true statement about small businesses?

​Small businesses are the first to hire in times of economic recovery.

​One disadvantage of hiring management consultants to solve problems in business is that:

​management consultants are expensive and charge high fees for their services.

​Jordon owns a pet shop which sells specialty products like birthday cakes for dogs, canned cat food, and live food for fishes. He sources these animal foods from different manufacturers, and sells it to local residents. Jordon's shop operates in the _____ industry.

​retail