Business Management- Exam 2!

_____ departmentalization groups together those jobs involving the same or similar activities.

Functional

Janice owns a bakery that has only ten employees, out of which three are bakers, four are waiters, and the rest belong to the housekeeping staff. Which of the following approaches to departmentalization would work best for the bakery?

Functional departmentalization

Which of the following forces for change is present in the task environment of an organization?

Prices at which suppliers sell raw materials

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

Promotions based on technical expertise

_____ exists when activities flow both ways between units.

Reciprocal interdependence

Which of the following is a good strategy for small businesses?

Starting service businesses

Which of the following can help make the business change process more effective?

Starting the process with a new, clean slate

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 is one of the assumptions on which the theory and practice of organization development (OD) are based?

The total organization and the way it is designed influence the way individuals behave within the organization

Which of the following is an accurate statement about small businesses?

They are likely to eliminate jobs at a far higher rate than large companies

Which of the following statements is true about wholesalers?

They need fewer employers than manufacturers or retailers.

Under the _____ arrangement, the members and units in an organization are grouped into functional departments such as marketing and production.

U-form

Entrepreneurs:

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

​Lucy needs to buy a new laptop for her business, and she buys a particular brand even though it does not support the software that is required for her business. She does this because all her family members have used computers of the same brand all their lives. This is an example of how decision makers are constrained by _____.

bounded rationality

A(n) _____ is a model of organization design based on a legitimate and formal system of authority.

bureaucracy

In a _____, the entrepreneur summarizes the business strategy and how that strategy is to be implemented

business plan

​When Irene wants to buy new laptops for her marketing executives and she has to pick them up from a single brand that is preinstalled with the marketing software that her company needs, she's making a decision under a condition of _____.

certainty

The first step of the change process involves:

recognizing the need for change

When decision making is under a condition of uncertainty:

the alternatives are not known.

_____ is an innate belief about something without conscious consideration.

​Intuition

Ryan, the production manager at the Tan Shoes Company, chose the cheapest leather-cutting machine from a set of five machines from different manufacturers. Ryan was engaged in _____.

​decision making

​A(n) _____ is a market in which several large firms compete according to relatively well-defined criteria.

​established market

Managers with higher levels of risk propensity are more likely than their conservative counterparts to:​

​rely heavily on intuition and gamble big investments on their decisions.

Ryan has started a store where customers can find a wide range of organic products manufactured by different companies. Ryan's business is in the _____ industry.

​retail

A wholesale business buys products from producers and then sells them to _____.​

​retailers

The _____ industry provides a higher return on time invested than any other industry group.

​service

Which of the following statements is true in the context of decision making under a condition of uncertainty?

A decision maker greatly relies on intuition, judgment, and experience.

​Which of the following is one of the characteristics of Weber's bureaucracy?

Distinct division of labor

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

Which of the following is an example of a goal for change for an organization?

Deciding to decrease employee turnover rates by 90 percent

Which of the following is a cause for the resistance to change that a worker might feel because the worker disagrees with the management that the change will be best for the organization in the long-run?

Different perceptions

A company has set an objective to increase its product sales by 50 percent in the next two years. Identify the step of the organization change process of the company.

Establishment of goals for the change

In which step of the rational decision-making model does the decision maker test the feasibility and satisfactoriness of alternatives before choosing one?

Evaluating alternatives

​_____ is a situation that occurs when a group or team's desire for consensus and cohesiveness overwhelms its desire to reach the best possible decision.

Groupthink

_____ was one of the first experts to develop the administrative model of decision making.

Herbert Simon

Which of the following is an advantage of job specialization?

It decreases transfer time between tasks.

_____ is one of the factors that makes an alternative infeasible

Legal barriers

Which of the following is an advantage of group decision making when compared to individual decision making?

More alternatives are likely to be generated.

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

_____ is one of the three specific ways for promoting innovation in organizations.

Organization culture

According to Woodward, which of the following is true about the relationship between organization design and core technology

Organizations with large-batch technologies tend to be more bureaucratic

Which of the following represents organization change in the area of change in technology and operations?

Upgrading the management information system

​Which of the following is an important question that is answered in a business plan?

What are the entrepreneur's goals and objectives?

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.

Small businesses:

are a key source of new jobs in various industries.

At Delta Corp. the manufacturing and design department frequently consults with the research and development department and the marketing and sales department regularly interacts with the manufacturing and design department. This scenario illustrates _____ at Delta.

coordination

Sarah has started a day care centre of her own. She makes the major decisions about how the centre runs, what services it provides, and at what prices. She has funded the venture with her own savings and will be taking up complete responsibility of the success or failure of the venture. Sarah is most likely a(n) _____.

entrepreneur

William had invested in an initial public offering. He kept incurring losses due to unfavorable market conditions. However, he decided to keep the investment because he had spent so much money on it. This scenario best exemplifies _____.

escalation of commitment

The final step in the decision-making process requires that managers _____.

evaluate the results of the chosen alternative

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

first-mover advantage

After being laid off by their companies, many individuals recognized three options they could choose from before they could secure new jobs: to spend less, to use savings, or to use credit. In the context of the steps involved in the rational decision-making model, they were _____.

identifying alternative

The top executives at Delta Inc. have decided to reorganize the corporation from product divisions into geographic sectors. This is a(n) _____ force for change.

internal

Managers sometimes decide to do something because it feels right or they have a hunch. This is an example of using _____ in decision making.

intuition

An alternative should be eliminated during evaluation if:

it has several unaffordable consequences.

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

Delta LLC. purchases raw materials such as leather and canvas from suppliers and processes them into finished shoes. Delta LLC. operates in the _____ industry.

manufacturing

More than any other industry, the _____ industry lends itself to big business.

manufacturing

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

manufacturing

Alpha Electronics assembles different parts to make standardized laptops. Alpha Electronics uses _____ technology.

mass-production

Gemini Motors has an assembly-line structure. Workers combine separate parts into standardized finished motorbikes. Gemini Motors is most likely to be using _____ technology.

mass-production

According to Woodward's findings related to technology and organization design:

mass-production organizations had a higher level of specialization.

The _____ design is based on two overlapping bases of departmentalization.

matrix

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

organization structure and design

When a firm decides to decrease the number of first-line managers it has, and thus increase the span of management of first-line managers, it is making a change in the area of _____.

organization structure and design

Attempting to change the attitudes and values of a company's workforce indicates a change in the area of _____.

people

Units with _____ operate with little interaction-the output of the units is put together at the organizational level.

pooled interdependence

An example of a force for change in the task environment of an organization is _____.

pricing strategies of competitors

A(n) _____ is usually a middle manager who learns about a new project and becomes committed to it. He helps overcome organizational resistance to change and convinces others to take the innovation seriously.

product champion

Tina works at a coffee shop. One of the four coffee machines at the coffee shop has not been functioning well; the same machine has broken down thrice in two weeks. Now, Tina is looking at the machine and trying to decide if the problem is a bad machine or if people are just using the machine wrong. Tina is currently _____.

recognizing and defining the decision situation

At Heritage Chocolates, the raw materials are processed at a plant and then sent to the manufacturing plant. The manufactured chocolates are finally sent to the packaging plant. This scenario illustrates _____ at Heritage Chocolates.

sequential interdependence

Marianne, who has started a software development firm, is looking for sources of financing. Marianne has approached Zenith LLC., a large consulting firm, to partner with her venture. Zenith has agreed to partner with Marianne's venture and provide it with capital. In this scenario, Marianne's source of financing falls in the category of:

strategic alliances.

Alpha Corp. has divided its business into a number of sub units. This organization change is an example of change in the area of _____.

structure and design

​In general, while identifying alternatives, the more important the decision, _____.

the more alternatives should be generated

Organizational size is defined as:

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

When the top management at Venus Corp. sought to change the organization design, form more work teams, and decrease the managers' span of management, it met with great resistance from the managers. This was because the managers feared that their power within the company would decrease. The managers' reaction to change was brought about by _____.

threatened self-interests

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

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

​Established supplier relationships

Christine, a teacher, notices that the performances of her students at class tests have been declining. While attempting to find a solution to the problem, she thinks of three choices: rewarding students who get good grades, holding class tests more often, or punishing students when they perform poorly in the tests. Which step of the rational decision-making process is Christine in?

​Identifying alternatives