capstone cha 7.

4. Establishing objectives is a a. top-level activity. b. centralized activity. c. decentralized activity. d. centralized-decentralized activity. e. command-and-control activity.

Ans: c. decentralized activity.

12. A disagreement between two or more parties on one or more issues is called a(n) a. integrated solution. b. conflict. c. compromise. d. diffusion. e. avoidance.

b. conflict.

33. The primary benefit sought from restructuring is a. employee involvement. b. cost reduction. c. increased morale. d. increased number of hierarchical levels in the organization. e. increased innovation.

b. cost reduction.

30. Restructuring is also referred to as a. starting over. b. delayering. c. diversifying. d. job security. e. integrating.

b. delayering

50. Just in time describes a. implementing strategies just before bankruptcy. b. delivering materials just as they are needed. c. a scheduling method for meetings. d. a personnel planning method. e. a process for improving quality.

b. delivering materials just as they are needed.

43. What challenge facing all organizations requires managers to formulate strategies that preserve and conserve natural resources and control pollution? a. economic b. ecological c. compensational d. benchmarking e. global

b. ecological

1. Strategy formulation a. is managing forces during the action. b. focuses on effectiveness. c. is primarily an operational process. d. requires coordination among many people. e. all of the above

b. focuses on effectiveness

13. Conflict in an organization is a. always bad. b. always good. c. sometimes good and sometimes bad. d. a sign of bankruptcy. e. avoidable.

c. sometimes good and sometimes bad.

28. Which organizational structure has ambiguous roles for senior executives as a major disadvantage? a. functional b. divisional c. strategic business unit (SBU) d. matrix e. process

c. strategic business unit (SBU)

52. Approximately how many people in the United States are now part of two-career families? a. 2 million b. 8 million c. 21 million d. 60 million

d. 60 million

17. Which approach for managing and resolving conflict involves playing down differences between conflicting parties while accentuating similarities and common interests? a. Avoidance b. Resistance c. Compliance d. Diffusion e. Confrontation

d. Diffusion

37. What pay strategy requires employees or departments to establish performance targets, such as "if actual results exceed objectives then all members get bonuses." a. Profit sharing b. Bonus system c. Salary d. Gain sharing e. Hourly wage system

d. Gain sharing

16. Which approach for managing and resolving conflict involves ignoring the problem in hopes that the conflict will resolve itself? a. Avoidance b. Resistance c. Compliance d. Diffusion e. Confrontation

a. Avoidance

14. What are three categories of approaches for managing and resolving conflict? a. Avoidance, diffusion and confrontation b. Avoidance, payoff and diffusion c. Confrontation, ignorance and objectivity d. Buy, sell and hold e. There are no good ways to manage conflict

a. Avoidance, diffusion and confrontation

24. How would Hershey's current divisional structure most likely be classified? a. By geographic area b. By product c. By service d. By customer e. By process

a. By geographic area

18. Why do changes in company strategy often require changes in the way an organization is structured? a. Structure dictates how goals and objectives will be established. b. Structure dictates authority over projects. c. Structure dictates how resources will be obtained. d. Structure dictates strategy. e. Structure dictates how money is spent.

a. Structure dictates how goals and objectives will be established.

11. _______ is not a major factor that commonly prohibits effective resource allocation. a. Underprotection of resources b. Organizational politics c. Vague strategy targets d. Reluctance to take risks e. Lack of sufficient knowledge

a. Under protection of resources

21. Medium-sized firms are more likely to use which type of structure. a. divisional b. matrix c. SBU d. functional e. process

a. divisional

48. The Russian people are known for their a. drive. b. desire to succeed. c. laziness. d. lack of motivation. e. lack of education.

a. drive

46. Desire for __________ is a part of the social fabric in worker-manager relations in Mexico. a. harmony b. friction c. conflict d. independence e. punctuality

a. harmony

26. What is the best divisional structure when a few major customers are of paramount importance and many different services are provided to these customers? a. by geographic area b. by customer c. by product d. by process e. by cost

b. by customer

25. A divisional structure by geographic area is most appropriate when a. organizations have similar branch facilities located in widely dispersed areas. b. an organization offers only a limited number of products or services. c. strict control and attention to product lines are needed. d. an organization has many skilled managers. e. the firm serves one geographic area.

a. organizations have similar branch facilities located in widely dispersed areas.

51. A concern in matching managers with strategy is that jobs have relatively __________ responsibilities, while people are __________ in their development. a. static; dynamic b. dynamic; static c. quick; slow d. exciting; dull e. dull; exciting

a. static; dynamic

55. What is not a major benefit of having a diverse workforce? a. Improvement of the bottom line b. An increase in training costs c. An increase in productivity d. A decrease in complaints and litigation e. Higher retention of employees

b. An increase in training costs

39. Which Fortune 500 CEO had the greatest salary in 2004? a. Richard Kinder from Kinder Morgan Energy b. Bob Nardelli from Home Depot c. Steve Jobs from Apple Computer d. Jeff Bezos from Amazon e. Warren Buffett from Berkshire Hathaway

b. Bob Nardelli from Home Depot

19. What type of organizational structure do most small businesses follow? a. Divisional structure by product b. Functional structure c. Divisional structure by customer d. Process type structure e. Matrix structure

b. Functional structure

36. Which pay strategy is not a form of incentive compensation? a. Bonus system b. Hourly wage c. Gain sharing d. Profit sharing e. All of these are forms of incentive compensation.

b. Hourly wage

8. What are guidelines, methods, procedures, rules, forms and administrative practices known as? a. Long-term objectives b. Policies c. Annual objectives d. Strategies e. Goals

b. Policies

9. Which of the following issues may not require a management policy? a. To establish a high- or low-safety stock of inventory b. To increase motivation c. To offer numerous or few employee benefits d. To discourage insider trading e. To promote from within to or to hire from the outside

b. To increase motivation

44. Formal statements of organizational philosophy, charters, creeds, materials used for recruitment and selection and socialization help an organization a. abide by SEC laws. b. link culture to strategy. c. set guidelines for firing. d. increase profits. e. manage conflicts between stakeholders.

b. link culture to strategy.

7. Which term would most likely be incorporated into written objective statements? a. Maximize b. Minimize c. 10% increase d. Adequate

c. 10% increase

54. What is the stated reason for Boeing's recent firing of CEO Harry Stonecipher? a. Poor company performance b. Enforcing discriminatory hiring practices c. Having an extramarital affair with a coworker d. Stealing from the company e. Exorbitant use of company planes

c. Having an extramarital affair with a coworker

2. Which of these is true about strategy implementation? a. It is positioning forces before the action. b. It focuses on effectiveness. c. It is primarily an operational process. d. It is primarily an intellectual process. e. It requires intuitive skills.

c. It is primarily an operational process.

27. What is the most complex form of organizational structure? a. Divisional b. SBU c. Matrix d. Functional e. Geographic

c. Matrix

34. What action involves reconfiguring or redesigning work, jobs and processes for the purpose of improving costs, quality, service and speed? a. Restructuring b. Downsizing c. Reengineering d. Delayering e. Benchmarking

c. Reengineering

6. Which of the following is not true about objectives? a. They should be communicated throughout the organization. b. They should have an appropriate time dimension. c. They should incorporate policies. d. They should be measurable. e. They should be consistent

c. They should incorporate policies

45. Which strategy could be best defined as an effective, multi-method technique of studying and altering a firm's culture? a. Benchmarking b. Delivering c. Triangulation d. Process management e. Educative change strategy

c. Triangulation

53. Of the Fortune 500 firms, how many have a woman CEO? a. two b. four c. five d. twelve e. twenty-four

c. five

40. What change strategy involves giving orders and enforcing those orders? a. self-interest b. educative c. force d. rational e. diffusion

c. force

20. Which organizational structure is the most simple and inexpensive? a. departmental b. strategic business unit c. functional d. decentralized e. process

c. functional

35. A firm uses information technology to break down functional barriers and create a work system based on business processes, products, or outputs rather than on functions or inputs in a. restructuring. b. benchmarking. c. reengineering. d. decentralization. e. delayering.

c. reengineering.

29. When developing an organizational chart, you should: a. Recommend dual titles for executives b. Use the title "president" for the top person c. Make sure that the chief financial officer is not at the same level as the chief operating officer d. Have division presidents report to a chief operating officer e. Have the controller or treasurer report directly to the president

d. Have division presidents report to a chief operating officer

49. Which of the following does not describe most Japanese managers? a. Reserved b. Quiet c. Distant d. Impulsive e. Introspective

d. Impulsive

10. Which term is best defined as a central management activity that allows for strategy execution. a. Policy-making b. Goal-setting c. Establishing annual objectives d. Resource allocation e. Conflict

d. Resource allocation

47. How is life in Mexico in comparison to life in the United States? a. Faster b. More affluent c. Time-dictated d. Slower e. Less harmonious

d. Slower

42. A change strategy that attempts to convince people the change is to their personal advantage is a. diffusion. b. force. c. educative. d. rational. e. compromise.

d. rational

23. A divisional structure by product is most effective when a. special emphasis needs to be placed on specific products. b. an organization offers few products. c. an organization's products or services differ substantially. d. special emphasis needs to be placed on specific services. e. All of the above

e. All of the above

3. How are objectives in the areas of profitability, growth and market share commonly established? a. Business segment b. Geographic location c. Customer groups d. Product e. All of the above

e. All of the above

32. Which of these involves comparing a firm against the best firms in the industry on a wide variety of performance-related criteria? a. Restructuring b. Process redesign c. Reengineering d. Delayering e. Benchmarking

e. Benchmarking

22. What is not one of the basic ways a divisional structure can be organized? a. By geographic area b. By product or service c. By customer d. By process e. By cost

e. By cost

15. Which approach for managing and resolving conflict involves exchanging members of conflicting parties of that each can gain an appreciation of the others point of view? a. Avoidance b. Resistance c. Compliance d. Diffusion e. Confrontation

e. Confrontation

38. Which of these is not one of the tests used to determine whether a performance-pay plan will benefit an organization? a. Does the plan capture attention? b. Do employees understand the plan? c. Is the plan improving communications? d. Does the plan pay out when it should? e. Does the plan reduce management layers?

e. Does the plan reduce management layers?

31. Which term is most often concerned primarily with shareholder well-being rather than employee well-being? a. Benchmarking b. Reengineering c. Product redesign d. Process management e. Restructuring

e. Restructuring

41. Resistance to change can manifest itself through a. absenteeism. b. sabotaging production machines. c. filing unfounded grievances. d. unwillingness to cooperate. e. all of the above.

e. all of the above.

5. Considerable time and effort should be devoted to assuring objectives are well conceived because they represent the basis for a. monitoring processes. b. establishing divisional priorities. c. allocating resources. d. evaluating managers. e. all of the above.

e. all of the above.