Exam 2 Management Process

Caterpillar announced plans to cut its production of construction equipment due to forecasted increases in steel prices. By discovering the problem with product inputs and letting customers know that its output will fall short, Caterpillar used ____ controls. a. feedforward b. feedback c. concurrent d. stasis e. goal-based

ANS: A Because Caterpillar monitored its inputs, it realized that a problem with its output would occur in the near future. PTS: 1 DIF: Moderate REF: 340 NAT: Level I Knowledge TOP: AACSB Technology | AACSB Analytic KEY: Operations Management | Information Technologies

When Marriott decided to improve the quality of service offered to customers, it asked special corporate guests to comment on the good and bad issues of their stay and also to tell what the competition is doing that is better than Marriott. The Marriott acted accordingly. In other words, it used ____. a. benchmarking b. data decentralization c. information processing d. mirroring e. comparative criterion

ANS: A Benchmarking is the process of identifying outstanding practices and standards in other companies and adapting them to your company. PTS: 1 DIF: Easy REF: 338 NAT: Level I Knowledge TOP: AACSB Technology | AACSB Analytic KEY: Operations Management | Creation of Value | Information Technologies | Environmental Influence

____ allows a trucking company not only to compare its safety performance with other companies but to also adopt those practices found to be superior. a. Benchmarking b. Data decentralization c. Information processing d. Mirroring e. Comparative criterion

ANS: A Benchmarking is the process of identifying outstanding practices and standards in other companies and adapting them to your company. PTS: 1 DIF: Moderate REF: 338 NAT: Level I Knowledge TOP: AACSB Technology | AACSB Analytic KEY: Operations Management | Creation of Value | Information Technologies | Environmental Influence

When the local fast-food restaurant manager caught one of her employees giving free food to his friends, she fired him on the spot. When another employee stayed late after work one night to help a woman start her car, the manager rewarded him. What type of control did the restaurant manager use in these two instances? a. bureaucratic b. objective c. self-control d. autocratic e. connotative

ANS: A Bureaucratic control is defined as top-down control in which managers try to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures. PTS: 1 DIF: Moderate REF: 342 NAT: Level II Comprehension TOP: AACSB Technology KEY: Operations Management | Leadership Principles | HRM

In essence, reengineering changes organizations by ____. a. increasing reciprocal interdependence b. decreasing the use of autonomy c. increasing pooled interdependence d. decreasing delegation e. increasing sequential interdependence

ANS: A By reducing the handoffs between different jobs or groups, reengineering decreases sequential interdependence. By making groups or individuals responsible for larger, more complete processes, reengineering increases reciprocal interdependence. PTS: 1 DIF: Difficult REF: 191-192 NAT: Level II Comprehension TOP: AACSB Analytic KEY: Creation of Value | Operations Management | HRM

Which of the following statements about functional departmentalization is true? a. Functional departmentalization allows work to be done by highly qualified specialists. b. Functional departmentalization increases costs by reducing duplication. c. Functional departmentalization complicates communication and coordination for departmental managers. d. Functional departmentalization requires the same kinds of functional departments in any company. e. Functional departmentalization is also called free-form specialization.

ANS: A Functional departmentalization lowers costs by reducing duplication. People within a department organized by functional departmentalization have an easy time communicating with one another. One company that uses functional departmentalization might have an accounts receivable department while another may only have an accounting department. PTS: 1 DIF: Moderate REF: 179-180 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Leadership Principles | HRM | Creation of Value

Which of the following statements about the organic form of organization design is true? a. The organic form of organization design is characterized by broadly defined jobs and responsibility; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge. b. The organic form of organization design works best in stable business environments. c. The organic form of organization design is better suited to using organizational design techniques based upon functional departmentalization and centralized authority. d. The organic form of organization design is typically less appropriate than the mechanistic approach for the environments in which today's businesses compete. e. All of these statements about the organic form of organization design are true.

ANS: A Organic organizations work best in dynamic business environments, are loosely defined, and are more appropriate for today's businesses. PTS: 1 DIF: Moderate REF: 191 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Creation of Value | Operations Management | HRM

1. As a class project, Senora is working with other classmates to create a company that would market NASCAR memorabilia. Senora's teacher has instructed her to use the traditional approach to create the organization's structure. What should Senora do? a. create an organizational structure with vertical and horizontal configurations b. use an organizational process to create a matrix design c. create a virtual organization d. use the organizational structure to control creativity e. create a matrix structure that will adhere to the unity of command principle

ANS: A Organizational structure is the vertical and horizontal configuration of departments, authority, and jobs within a company. PTS: 1 DIF: Moderate REF: 177 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Leadership Principles | Group Dynamics | Individual Dynamics

Which of the following factors can help managers determine whether more or different control is worthwhile? a. regulation costs b. customer flows c. channelization d. synergy e. subordinate empathy

ANS: A Regulation costs are the costs associated with implementing or maintaining control. PTS: 1 DIF: Moderate REF: 340-341 NAT: Level II Comprehension TOP: AACSB Technology KEY: Operations Management | Creation of Value

The average time between breakdowns (for machinery) is referred to as ___? a. reliability b. serviceability c. responsiveness d. consistency e. effectiveness

ANS: A Reliability refers to the average time between breakdowns. PTS: 1 DIF: Moderate REF: 382 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management

According to the text, which of the following levels produces the greatest minimization of waste? a. waste prevention and reduction b. recycle and reuse c. waste treatment d. waste disposal e. waste remarketing

ANS: A See Exhibit 16.6. PTS: 1 DIF: Moderate REF: 354 NAT: Level II Comprehension TOP: AACSB Technology KEY: Operations Management

Companies may determine standards by ____. a. benchmarking other companies b. implementing vertical loading c. using outsourcing d. taking corrective action e. doing all of these

ANS: A Standards are also determined by goal achievement and by listening to customers. PTS: 1 DIF: Moderate REF: 337 NAT: Level I Knowledge TOP: AACSB Technology | AACSB Analytic KEY: Operations Management | Creation of Value | Information Technologies | Environmental Influence

A large university library has decided to make it nearly impossible for all but the most renowned Civil War experts to access their Civil War collection. The librarian in charge of this collection feels that this new policy will adversely influence the use of the collection in research on the experiences of everyday people during the war. This is an example of the use of control creating ____. a. suboptimization b. control loss c. cybernetic infeasibility d. feedforward control e. sacrificing

ANS: A Suboptimization occurs when performance improvement is attained in one part of an organization but only at the expense of decreased performance in another part. PTS: 1 DIF: Moderate REF: 346 NAT: Level II Comprehension TOP: AACSB Technology KEY: Operations Management

Which of the following statements about total quality management (TQM) is true? a. TQM is an integrated organization-wide strategy for improving product and service quality. b. TQM is a specific technique used to reposition a company's product so as to justify higher prices. c. TQM is based on four mutually reinforcing principles: customer focus, customer satisfaction, participative management, and delegation. d. TQM was developed and is monitored by the International Organization of Standards. e. All of these statements about TQM are true.

ANS: A TQM is not a specific tool or technique. TQM is based on the three principles of continuous improvement, customer focus and satisfaction, and teamwork. PTS: 1 DIF: Moderate REF: 385-386 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management | HRM

The Balanced Scorecard approach to control ____. a. forces managers at each level of the company to set specific goals and measure performance in each of four areas b. places greatest priority on the most important aspect of control, the financial perspective c. maximizes the chances of suboptimization d. only looks at factors within a company's controllable environment e. has no real advantages over traditional control techniques

ANS: A This is one of the advantages inherent in the use of the Balanced Scorecard. PTS: 1 DIF: Difficult REF: 346-347 NAT: Level II Comprehension TOP: AACSB Technology KEY: Operations Management | Creation of Value | Leadership Principles

9. Which of the following types of departmentalization does NOT have a problem with the duplication of resources? a. functional b. geographic and matrix c. product and customer d. customer and functional e. geographic

ANS: A PTS: 1 DIF: Difficult REF: 179-180 NAT: Level I Knowledge TOP: AACSB Analytic KEY: HRM | Creation of Value | Group Dynamics | Operations Management

____ controls should be used when it is necessary to standardize operating procedures and establish limits. a. Bureaucratic b. Normative c. Concertive d. Input e. Output

ANS: A PTS: 1 DIF: Difficult REF: 342 NAT: Level I Knowledge TOP: AACSB Technology KEY: Operations Management

5. ____ departmentalization is defined as organizing work and workers into separate units responsible for particular business functions or areas of expertise. a. Functional b. Customer c. Matrix d. Product e. Hierarchical

ANS: A PTS: 1 DIF: Easy REF: 179 NAT: Level I Knowledge TOP: AACSB Analytic KEY: HRM | Creation of Value | Group Dynamics | Individual Dynamics

26. A(n) ____ is a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources directly. a. simple matrix b. networked matrix c. empathetic matrix d. matrix of convenience e. synergistic matrix

ANS: A PTS: 1 DIF: Easy REF: 184 NAT: Level I Knowledge TOP: AACSB Analytic KEY: HRM | Creation of Value | Group Dynamics | Individual Dynamics | Leadership Principles

____ is the degree to which a job is perceived to have a substantial impact on others inside or outside the organization. a. Task significance b. Skill feedback c. Skill variety d. Autonomy e. Task identity

ANS: A PTS: 1 DIF: Easy REF: 190 NAT: Level I Knowledge TOP: AACSB Analytic KEY: HRM | Individual Dynamics

Except for the core business activities that they can perform better, faster, and cheaper than others, ____ outsource all remaining business activities to outside companies, suppliers, specialists, or consultants. a. modular organizations b. hierarchical organizations c. boundaryless organizations d. organizational networks e. virtual organizations

ANS: A PTS: 1 DIF: Easy REF: 195-196 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Creation of Value | Operations Management | HRM

____ control is top-down control in which managers try to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures. a. Bureaucratic b. Normative c. Concertive d. Objective e. Administrative

ANS: A PTS: 1 DIF: Easy REF: 342 NAT: Level I Knowledge TOP: AACSB Technology KEY: Operations Management | Leadership Principles | HRM

In the traditional control systems used at most companies, ____ measures are used to assess performance. a. financial b. customer c. value/quality d. quality/profit e. optimization

ANS: A PTS: 1 DIF: Easy REF: 347-348 NAT: Level I Knowledge TOP: AACSB Technology KEY: Operations Management | Information Technologies

According to ____, the cost of computing will drop by 50 percent as computer-processing power doubles every 18 months. a. Moore's law b. Gordon's law c. the Peter principle d. the rule of e-commerce e. Gresham's Law

ANS: A PTS: 1 DIF: Easy REF: 357 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies

Two critical steps are required to make sure that data can be accessed by authorized users and no one else. They are ____. a. authentication and authorization b. authorization and empowerment c. delegation and empowerment d. encryption and empowerment e. authentication and encryption

ANS: A PTS: 1 DIF: Easy REF: 370 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Operations Management

A(n) ____ allows companies to exchange information and conduct transactions by purposefully providing outsiders with direct, Web browser-based access to authorized parts of a company's intranet. a. extranet b. virtual portal c. Web service d. corporate portal e. secure logic system (SSL)

ANS: A PTS: 1 DIF: Easy REF: 374 NAT: Level II Comprehension TOP: AACSB Technology KEY: Information Technologies | Operations Management

12. Which of the following is an important characteristic of a quality product? a. reliability b. validity c. responsiveness d. homogeneity e. tangibility

ANS: A PTS: 1 DIF: Easy REF: 382 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management

Organizational authority is traditionally characterized by ____. a. chain of command b. empowerment c. behavioral informality d. reengineering e. all of these

ANS: A PTS: 1 DIF: Moderate REF: 185 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Leadership Principles

48. Decentralization ____. a. leads to faster decision making and more satisfied customers and employees b. tends to stymie employee capabilities c. is characteristic of large companies d. is more appropriate where standardization is important e. is accurately described by all of these

ANS: A PTS: 1 DIF: Moderate REF: 187 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Leadership Principles

When it comes to finances, the Balanced Scorecard focuses on one simple question. That question is ____. a. How are we performing for our shareholders? b. How do we look to our customers? c. Are we making a profit? d. What is the bottom line? e. Are we retaining enough earnings to allow for market growth?

ANS: A PTS: 1 DIF: Moderate REF: 346 NAT: Level II Comprehension TOP: AACSB Technology | AACSB Analytic KEY: Operations Management | Creation of Value | Information Technologies

Three kinds of information technology are used by executives, managers, and workers inside the company to access and share information. They are ____. a. executive information systems, portals, and intranets b. local area networks, extranets, and management information systems c. intranets, local area networks, and portals d. expert systems, decision support system, and virtual private networks e. Internet-accesses, SSL encryption, and intranets

ANS: A PTS: 1 DIF: Moderate REF: 372-373 NAT: Level II Comprehension TOP: AACSB Technology KEY: Information Technologies | Operations Management

Most ____ work by using a collection of "if-then" rules to sort through information and recommend a course of action. a. expert systems b. decision support systems c. executive information systems d. RAID systems e. trend analyses

ANS: A PTS: 1 DIF: Moderate REF: 376 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Operations Management

Although firewalls can protect personal computers and network services connected to the corporate network, people away from their offices who interact with their company networks via the Internet face a safety risk. Which of the following technologies has proven to be an inexpensive solution to this problem? a. safe software for logic (SSL) encryption b. virtual private networks c. local area networks d. firewall reassignment e. reengineered applets

ANS: B A VPN is software that securely encrypts data sent by employees outside the company network, decrypts the data when they arrive, and does the same when the data are sent back. PTS: 1 DIF: Moderate REF: 371 NAT: Level II Comprehension TOP: AACSB Technology KEY: Information Technologies | Operations Management

Job specialization can result in ____. a. high job satisfaction b. employee boredom c. low employee turnover d. complicated job designs e. low absenteeism

ANS: B A job that is only a small part of a larger job tends to be repetitive. PTS: 1 DIF: Easy REF: 188 NAT: Level I Knowledge TOP: AACSB Analytic KEY: HRM | Individual Dynamics

Baseball management discovered that its sales increased by almost 100 percent in those seasons when it held an open house prior to the opening game and allowed people to see the box seats and examine the view of the stadium from those seats. In terms of data mining, the management discovered a(n) ____ pattern. a. affinity b. sequence c. association d. adjacency e. collaborative

ANS: B A sequence pattern occurs in data mining when two or more database elements occur together in a significant pattern, with one of the elements preceding the other. PTS: 1 DIF: Moderate REF: 366-367 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Operations Management

Have you ever purchased a book or CD on Amazon.com and noticed that as soon as you put your selection in the shopping cart, you were offered a series of other items that people who made the same purchase as you did also bought? This would be an example of ____ data mining. a. sequence b. association c. predictive d. adjacency e. extrapolative

ANS: B An association (also called an affinity) pattern occurs when two or more database elements tend to occur together in a significant way. PTS: 1 DIF: Moderate REF: 366 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Operations Management

A system that requires employees to scan their thumbprints as they start work is called a(n)___________. a. intangible cookies b. biometrics c. personal RFID tags d. individual bar codes e. optical scanners

ANS: B Biometrics is the identification of users by unique, measurable body features. PTS: 1 DIF: Moderate REF: 370 NAT: Level II Comprehension TOP: AACSB Technology KEY: Information Technologies | Operations Management

. Kimberly-Clark is subdivided into organizational units called Kimberly-Clark Health Care, which provides products to hospitals, Kimberly-Clark Professional, which sells to businesses, and Kimberly-Clark Consumer, which sells the company's products to customers. From this information, you know that Kimberly-Clark uses ____. a. hierarchical functionalization b. departmentalization c. a nonlinear organizational structure d. a product layout e. product formatting

ANS: B Departmentalization is a general term that refers to subdividing work and workers into separate organizational units that are responsible for completing particular tasks. PTS: 1 DIF: Easy REF: 179 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Creation of Value | Operations Management | HRM

The key to sustaining competitive advantage is ____. a. faster computers with more memory b. using information technology to continuously improve and support the core functions of a business c. the Internet d. the ability of the managers to delegate e. how important the company's culture perceives conceptual skills

ANS: B Exhibit 15.2 lists other issues that need to be addressed to sustain a competitive advantage. PTS: 1 DIF: Moderate REF: 359 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Strategy

Which of the following statements about intranets is true? a. Intranets require users to build a completely new network. b. Intranets are Web-based. c. The software required to set up an intranet is expensive. d. Intranets are difficult to use. e. All of these statements about intranets are true.

ANS: B Firewalls are used to set up intranets on the Internet. Intranets are intuitive and easy to use. PTS: 1 DIF: Moderate REF: 372-373 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Operations Management

Which of the following statements about productivity is true? a. Productivity is a ratio of benefits to costs (i.e., benefits divided by costs). b. For companies, higher productivity can lead to lower costs. c. For countries, higher productivity produces a lower standard of living. d. Productivity decreases make products more affordable. e. All of the statements about productivity are true.

ANS: B For companies, higher productivity (that is, doing more with less) results in lower costs. PTS: 1 DIF: Moderate REF: 380 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management

Which of the following statements about mechanistic organizations is true? a. Mechanistic organizations rely on decentralized authority. b. Mechanistic organizations work best in stable, unchanging business environments. c. Mechanistic organizations are characterized by horizontal communication based on task knowledge. d. Mechanistic organizations have broadly defined jobs. e. None of these statements about mechanistic organizations is true.

ANS: B Mechanistic organizations use job specialization, a rigid chain of command, and vertical communication. PTS: 1 DIF: Difficult REF: 191 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Creation of Value | Operations Management | HRM

2. Which of the following is a specific component of internal service quality? a. MBO b. high value service c. delegation d. autonomy e. span of management

ANS: B See Exhibit 18.3, Service-profit chain. PTS: 1 DIF: Moderate REF: 387 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management | HRM | Leadership Principles

The basic control process of business begins with ____. a. either benchmarking or keystoning b. the establishment of clear standards of performance c. the comparison of actual performance to expected performance d. problem identification e. determining what corrective action will be if actual performance does not equal or exceed expected performance

ANS: B See also Exhibit 16.1. PTS: 1 DIF: Easy REF: 339 NAT: Level I Knowledge TOP: AACSB Technology | AACSB Analytic KEY: Operations Management | Information Technologies

75. Zara clothing stores has developed a system that can order new fashions and deliver them to the store in only three weeks. It uses ____ to pass information to the next person in the line of development. a. standardization b. sequential interdependence c. pooled interdependence d. manager empowerment e. transactional intradependence

ANS: B Sequential interdependence is work completed in succession. PTS: 1 DIF: Moderate REF: 193 NAT: Level I Knowledge TOP: AACSB Analytic| AACSB Technology KEY: HRM | Operations Management

A report calling for a company to set clear targets to improve fuel economy and to cut factory emissions would want the company to establish emission control ____. a. autonomous measurements b. standards c. value ratios d. dependence measurements e. performance predictors

ANS: B Standards are a basis of comparison for measuring the extent to which organizational performance is satisfactory or unsatisfactory. PTS: 1 DIF: Easy REF: 337 NAT: Level I Knowledge TOP: AACSB Technology | AACSB Analytic KEY: Operations Management | Creation of Value | Motivation Concepts

Which of the following approaches to job redesign entails more than simply providing additional variety in job tasks? a. the job enrichment plan b. the job characteristics model c. the Gantt chart d. the task specialization map e. the task breakdown plan

ANS: B The JCM is an approach to job redesign that seeks to formulate jobs in ways that motivate workers and lead to positive work outcomes. PTS: 1 DIF: Difficult REF: 189-191 NAT: Level I Knowledge TOP: AACSB Analytic KEY: HRM | Individual Dynamics | Operations Management

17. The primary disadvantage of customer departmentalization is ____. a. an over-emphasis on customer needs b. duplication c. difficulties in coordinating across departments d. overspecialization of managers and workers e. an inability to solve problems for specific customers

ANS: B The customer basis of departmentalization tends to result in functional duplication (e.g., marketing employees in each customer group). PTS: 1 DIF: Moderate REF: 181 NAT: Level I Knowledge TOP: AACSB Analytic KEY: HRM | Creation of Value | Strategy | Environmental Influence

When higher management in a(n) ____ organization admits there is a need for better communication, the response is to tether subordinates to their jobs and to appoint newly hired employees who specialize in establishing liaison relationships. a. centralized b. mechanistic c. departmentalized d. organic e. modular

ANS: B The reliance on vertical communication in a mechanistic organization precludes subordinates from sharing ideas, etc. PTS: 1 DIF: Difficult REF: 191 NAT: Level I Knowledge TOP: AACSB Analytic | AACSB Communication KEY: Group Dynamics

A company expressing its ongoing commitment to continuous product improvement and premium quality products is committed to ____. a. a bureaucratic structure b. total quality management c. winning ISO 8000 certification d. implementing an MRP program e. autonomous work stations

ANS: B The three principles that characterize TQM are continuous improvement, customer focus and satisfaction, and teamwork. PTS: 1 DIF: Easy REF: 385-386 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management | Creation of Value | Strategy

Economic value added (EVA) is so important because it ____. a. demonstrates the importance of a business or subset of a business to customers b. makes managers at all levels pay much closer attention to how they run their segment of the business c. causes managers and workers to maintain the status quo d. determines if a business or unit of a business is a star, question mark, cash cow, or dog and the necessary action to follow e. is an improved form of the Balanced Scorecard approach to control

ANS: B This is because EVA for subsets of the organization can be so easily calculated. PTS: 1 DIF: Difficult REF: 348-349 NAT: Level I Knowledge TOP: AACSB Technology | AACSB Analytic KEY: Operations Management | Group Dynamics | HRM | Leadership Principles

34. As a result of their structures, matrix organizations automatically violate the principle of ____. a. line authority b. unity of command c. delegation of authority d. degree of centralization e. staff authority

ANS: B Unity of command is the principle that workers should report to just one boss. PTS: 1 DIF: Moderate REF: 185 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Leadership Principles

An organization that relies heavily on ____ controls is likely to be highly resistant to change and slow to respond to customers and competitors. a. behavior b. bureaucratic c. subjective d. normative e. output

ANS: B PTS: 1 DIF: Difficult REF: 342 NAT: Level II Comprehension TOP: AACSB Technology KEY: Operations Management | Group Dynamics | HRM | Leadership Principles

. ____ is characterized by simple, easy-to-learn steps; low variety; and high repetition. a. Job consistency b. Job specialization c. Task reengineering d. Standardization e. Task homogeneity

ANS: B PTS: 1 DIF: Easy REF: 188 NAT: Level I Knowledge TOP: AACSB Analytic KEY: HRM | Operations Management

A(n) ____ organization is part of a network in which many companies share skills, costs, capabilities, markets, and customers with each other. a. modular b. virtual c. matrix d. electronic e. boundaryless

ANS: B PTS: 1 DIF: Easy REF: 196-197 NAT: Level II Comprehension TOP: AACSB Analytic| AACSB Technology KEY: HRM | Creation of Value | Strategy | Information Technologies

55. The traditional approach to controlling financial performance does NOT examine ____. a. financial ratios b. customer defections c. cash flow d. income statements e. budgets

ANS: B PTS: 1 DIF: Easy REF: 350 NAT: Level I Knowledge TOP: AACSB Technology | AACSB Analytic KEY: Operations Management | Information Technologies

____ is the process of discovering unknown patterns and relationships in large amounts of data. a. Information keystoning b. Data mining c. Data warehousing d. Data outsourcing e. Patterning

ANS: B PTS: 1 DIF: Easy REF: 366 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies

____ productivity shows how much labor, capital, materials, and energy it takes to create an output. a. Temporal b. Multifactor c. Functional d. Continuous e. Quantitative

ANS: B PTS: 1 DIF: Easy REF: 381 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management

The easier it is to maintain a working product or fix a broken product, the more ____ that product appears. a. reliable b. serviceable c. durable d. tangible e. effective

ANS: B PTS: 1 DIF: Easy REF: 382 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management

The highest degree of processing occurs in ____ operations. a. assemble-to-order b. make-to-order c. make-to-stock d. batch e. real-time

ANS: B PTS: 1 DIF: Easy REF: 390 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management

11. Functional departmentalization ____. a. makes it easier for top managers to assess work-unit performance b. allows work to be done by highly qualified specialists c. produces managers with broader experience and expertise d. enhances coordination between departments e. encourages interdepartmental communication

ANS: B PTS: 1 DIF: Moderate REF: 179-180 NAT: Level II Comprehension TOP: AACSB Analytic KEY: Creation of Value | Operations Management | HRM

. A(n) ____ function is an activity that contributes directly to creating or selling the company's products. a. staff b. line c. mechanistic d. organic e. charted

ANS: B PTS: 1 DIF: Moderate REF: 185 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Leadership Principles | Creation of Value

____ is the extent to which it is possible to implement each step in the control process. a. Control feasibility b. Cybernetic feasibility c. A quasi-control assessment d. A Balanced Scorecard assessment e. Information management

ANS: B PTS: 1 DIF: Moderate REF: 341 NAT: Level IV Analysis TOP: AACSB Technology KEY: Operations Management | Creation of Value

____ should be used when it is difficult to create good measures of worker behavior and output and when organizational culture, values, and beliefs are strong. a. Bureaucratic control b. Normative control c. Concertive control d. Self-control e. Input control

ANS: B PTS: 1 DIF: Moderate REF: 343-344 NAT: Level I Knowledge TOP: AACSB Technology KEY: Operations Management | Group Dynamics | HRM

Because they are inexpensive and easy to use, ____, which convert printed text and pictures into digital images, have become an increasingly popular method for capturing data electronically. a. electronic data interchanges b. electronic scanners c. radio frequency information digitizers (RFIDs) d. data digitalization e. bar coding devices

ANS: B PTS: 1 DIF: Moderate REF: 365 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies

____ is the direct electronic transmission of purchase and ordering information from one company's computer system to another company's computer system. a. Automated processing b. Electronic data interchange c. Transaction channeling d. Data manipulation e. Information exchange

ANS: B PTS: 1 DIF: Moderate REF: 373 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Operations Management

In inventory management situations involving independent demand systems, ____ should be used, whereas with dependent demand systems, ____ should be used. a. JIT; MRP and/or EOQ b. EOQ; JIT and/or MRP c. MRP; JIT and/or EOQ d. MRP; JIT or EOQ e. EOQ; JIT or MBO

ANS: B PTS: 1 DIF: Moderate REF: 395-397 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management | Strategy

67. Materials requirement planning (MRP) is ____. a. a method for inventory mining b. used with dependent demand systems c. used with tickets that indicate when to reorder various inventory items d. used with independent demand systems e. not concerned with finished product inventories

ANS: B PTS: 1 DIF: Moderate REF: 396 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management | Strategy

A company decided to reduce its inventory by lowering their prices. The plan to get rid of excessive inventory was so successful that the company found itself completely sold out in just a couple of days. In other words, The company experienced ____. a. a loss of amortization b. negative sales c. a stockout d. aggregated turnover e. negative turnover

ANS: C A stockout occurs when a company runs out of finished product. PTS: 1 DIF: Moderate REF: 393 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management | Strategy

ISO 14000 ____. a. provides ISO certification for service providers b. is a series of five international standards for achieving consistency in quality management and quality assurance in companies throughout the world c. is a series of international standards for managing, monitoring, and minimizing an organization's harmful effect on the environment d. is the interim ISO certification that is granted in the event that ISO 9000 certification is temporarily withdrawn e. is only given to manufacturers who have achieved the highest possible level of product quality and assurance

ANS: C Definition of ISO 14000. PTS: 1 DIF: Difficult REF: 383 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management

. As a consequence of the Industrial Revolution and its emphasis on specialization, institutions providing higher education developed strict departments that contained specialized functions. This organizational structure was perceived as a way to enhance the accumulation and dissemination of knowledge. Institutions providing higher education have traditionally used ____. a. reengineering b. functionalization c. departmentalization d. functional empowerment e. job dissemination

ANS: C Departmentalization is a general term that refers to subdividing work and workers into separate organizational units that are responsible for completing particular tasks. PTS: 1 DIF: Moderate REF: 179 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Creation of Value | Operations Management | HRM

10. Which of the following is NOT a characteristic of functional departmentalization? a. Functional departmentalization allows work to be done by highly qualified specialists. b. Functional departmentalization lowers costs by reducing duplication. c. Functional departmentalization produces managers with broader experience and expertise. d. Functional departmentalization complicates coordination between departments. e. Functional departmentalization organizes workers into separate units responsible for performing particular business functions.

ANS: C Functional departmentalization may produce managers and workers with narrow experience and expertise because departments are focused on one function. PTS: 1 DIF: Moderate REF: 179-180 NAT: Level II Comprehension TOP: AACSB Reflective Thinking KEY: Strategy | Creation of Value

Elena works in a data processing department for a large credit reporting service and is bored. She spends her days inputting an endless stream of monotonous data into much larger data bases. According to the job characteristics model (JCM), one of the primary reasons for her boredom is ____. a. a low degree of feedback b. a high degree of autonomy c. a low degree of task identity d. a high degree of task significance e. a high degree of skill variety

ANS: C Her job is just a small part of a much bigger task, so Elena does is not involved in the entire task as it is done from beginning to end. PTS: 1 DIF: Difficult REF: 190 NAT: Level I Knowledge TOP: AACSB Analytic KEY: HRM | Individual Dynamics

Mass distributors lowered prices substantially to sell increased volumes of hardware products, and hardware stores managed the ____ costs of maintaining larger than needed inventories by including them as overhead. a. containment b. stockout c. holding d. amortization e. setup

ANS: C Holding costs are the costs of keeping inventory. They include storage costs, insurance, taxes, obsolescence, and opportunity costs. PTS: 1 DIF: Moderate REF: 395 NAT: Level II Comprehension TOP: AACSB Analytic KEY: Operations Management

Which of the following statements about ISO 9000 is true? a. ISO 9000 is a single international standard for achieving consistency in quality management and quality assurance in companies throughout the world. b. The ISO 9000 standard is applicable only to the manufacturing of goods and not to the delivery of services. c. ISO 9000 certification may be suspended or canceled if companies fail a periodic audit following their initial certification. d. Ninety-eight percent of companies that already have achieved ISO 9000 certification said they did so because it increases profitability. e. Service providers can achieve ISO 14000 certification.

ANS: C ISO 9000 is a series of five international standards for achieving consistency in quality management and quality assurance in companies throughout the world. Certification increases customer satisfaction. ISO 14000 certification has to do with an organization's commitment to minimize its harmful effect on the environment. ISO 9000 is applicable to manufacturers and to service providers. Continued ISO certification is not guaranteed, however. Accredited third parties typically conduct periodic audits to make sure the company is still following quality procedures. If it is not, its certification is suspended or canceled PTS: 1 DIF: Difficult REF: 383-384 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management

. Novo Nordisk is a European manufacturer of pharmaceuticals. An employee , Rikke NedergaardBischoff, who is a clinical-development scientist, contends that Novo upholds the standards expected of public institutions without the stifling bureaucracy. She says, "There's a great deal of empowerment at Novo Nordisk." Novo Nordisk provides NedergaardBischoff with ____. a. a rigid chain of command b. a mechanistic work environment c. feelings of intrinsic motivation d. reengineering opportunities e. a high degree of job significance as defined by the JCM

ANS: C Intrinsic motivation, or empowerment, means permanently passing decision-making authority and responsibility from managers to workers. PTS: 1 DIF: Moderate REF: 194 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Leadership Principles | Motivation Concepts | Operations Management

Marriott's top management decided that there was need for a serious effort to "put democracy back in the company" and make employees feel "involved in the success of the company." Employees asked special corporate guests to comment on the good and bad issues of their stay and also to tell what the competition is doing that is better than Marriott. Then the employees acted accordingly. Marriott adopted ____ control. a. autonomous b. concertive c. normative d. control e. focus

ANS: C Normative control refers to regulation of workers' behavior and decisions through widely shared organizational values and beliefs. PTS: 1 DIF: Moderate REF: 343 NAT: Level I Knowledge TOP: AACSB Technology KEY: Operations Management | Group Dynamics | HRM

Pages listing all of the felony crimes perpetrated in a given city during the last decade would be an example of ____. a. a resource allocation table b. traditional knowledge c. raw data d. perceived knowledge e. information

ANS: C Raw data are facts and figures. PTS: 1 DIF: Moderate REF: 357 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies

Like most large U.S. hospitals, University Health Care System spends an enormous amount on patient supplies. The hospital has more than 15,000 individual products that are purchased on a routine basis. Its purchasing manager instituted a hospital-wide purchasing policy that gave a specific code to each individual item. In other words, the purchasing manager engaged in ____. a. consistency planning b. organizational autonomy c. standardization d. problem empowerment e. procedural planning

ANS: C Standardization is the process of solving problems by consistently applying the same rules, procedures, and processes. PTS: 1 DIF: Moderate REF: 187 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Leadership Principles | Operations Management | Creation of Value

The Food and Drug Administration (FDA) could use data it has collected from millions of suspected drug-related adverse event reports and other electronic medical information to identify a pattern of adverse drug events in a specific population. This data collected by the FDA would be held in a(n) ____. a. Internet database b. competitive intelligence source c. data warehouse d. data extraction e. information clearinghouse

ANS: C The data used in data mining typically come from data warehouses that store huge amounts of data that have been prepared for data mining analysis by being cleaned of errors and redundancy. PTS: 1 DIF: Moderate REF: 366 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Operations Management

Understanding that consumers wanted clean, convenient food when they were away from home was the information the first fast food restaurant founder used to ____. a. acquire a source of perceived knowledge b. create a tactical advantage c. create a first-mover advantage d. pioneer sales in the consumer food industry e. sustain a competitive advantage

ANS: C The first company to use new information technology to substantially lower costs or differentiate products or services often gains a first-mover advantage. PTS: 1 DIF: Difficult REF: 358 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Strategy

53. An organization that has increased the number of different tasks that a worker performs within one particular job has engaged in ____. a. task aggregation b. job specialization c. job enlargement d. employee specialization e. job rotation

ANS: C This is the definition of job enlargement. PTS: 1 DIF: Easy REF: 188 NAT: Level I Knowledge TOP: AACSB Analytic KEY: HRM | Individual Dynamics | Operations Management

Of all types of departmentalization, ____ departmentalization requires the highest level of management skill for successful implementation. a. geographic b. customer c. matrix d. product e. functional

ANS: C This is viewed as one of the disadvantages of matrix departmentalization. PTS: 1 DIF: Moderate REF: 182-184 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Leadership Principles | Group Dynamics | Individual Dynamics

24. The primary advantage of ____ departmentalization is the fact that it allows companies to manage large, complex tasks efficiently by minimizing duplication. a. product b. functional c. matrix d. geographic e. functional

ANS: C PTS: 1 DIF: Difficult REF: 182-184 NAT: Level II Comprehension TOP: AACSB Analytic KEY: HRM | Creation of Value | Group Dynamics | Individual Dynamics | Leadership Principles

The goal of an executive information system is to provide information that is accurate, complete, relevant and ____. a. rich c. timely b. complex d. expedient

ANS: C PTS: 1 DIF: Difficult REF: 372 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Operations Management

15. Large accounting agencies typically have separate departments that deal with households, businesses, and governments. This allows them to better serve the needs of their clients, by using ____ departmentalization. a. matrix b. product c. customer d. geographic e. functional

ANS: C PTS: 1 DIF: Easy REF: 181 NAT: Level II Comprehension TOP: AACSB Analytic KEY: HRM | Creation of Value | Strategy | Environmental Influence

____ is the regulatory process of establishing standards that will achieve organizational goals, comparing actual performance to those standards, and then, if necessary, taking corrective action to restore performance to those standards. a. Implementation b. Goal-setting c. Control d. Suboptimization e. Benchmarking

ANS: C PTS: 1 DIF: Easy REF: 337 NAT: Level I Knowledge TOP: AACSB Technology | AACSB Analytic KEY: Operations Management | Information Technologies

The three basic control methods are ____. a. feedback control, feedforward control, and symmetry control b. balance control, vertical control, and symmetry control c. concurrent control, feedback control, and feedforward control d. feedforward control, presumptive control, and stasis control e. stasis control, feedback control, and simultaneous control

ANS: C PTS: 1 DIF: Easy REF: 339-340 NAT: Level I Knowledge TOP: AACSB Technology KEY: Operations Management

____ costs are the costs associated with implementing or monitoring control. a. Cybernetic b. Heuristic c. Regulation d. Benchmarked e. Targeted

ANS: C PTS: 1 DIF: Easy REF: 340-341 NAT: Level I Knowledge TOP: AACSB Technology KEY: Operations Management | Creation of Value | Information Technologies

____ is a control method that encourages managers to look beyond traditional measures to evaluate four different perspectives on company performance. a. Optimization b. Customer churn c. Balanced Scorecard d. Customer defection e. Financial ratio analysis

ANS: C PTS: 1 DIF: Easy REF: 346 NAT: Level I Knowledge TOP: AACSB Technology KEY: Operations Management | Leadership Principles

The term ____ refers to facts and figures that are in an unusable form. a. nonspecific information b. processed data c. raw data d. perceived knowledge e. relevant information

ANS: C PTS: 1 DIF: Easy REF: 357 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies

____ is a measure of performance that indicates how many inputs it takes to produce or create an output. a. Reliability b. Performance accountability c. Productivity d. TQM e. Effectiveness

ANS: C PTS: 1 DIF: Easy REF: 379 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management

8. ____ is a general term that refers to subdividing work and workers into separate organizational units that are responsible for completing particular tasks. a. Organizational layout b. Organizational process c. Departmentalization d. Job formatting e. Functionalization

ANS: C PTS: 1 DIF: Moderate REF: 179 NAT: Level I Knowledge TOP: AACSB Analytic KEY: HRM | Creation of Value | Group Dynamics | Operations Management

In the process of capturing information, ASCII text is generated by ____. a. bar codes b. electronic scanners c. optical character recognition software d. e-tools e. data mining

ANS: C PTS: 1 DIF: Moderate REF: 365 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies

For the purposes of data mining, ____ patterns are just the opposite of association patterns. a. sequence b. adjacency c. predictive d. affinity e. asymmetrical

ANS: C PTS: 1 DIF: Moderate REF: 367 NAT: Level II Comprehension TOP: AACSB Technology KEY: Information Technologies

Unlike an executive information system, a decision support system (DSS) ____. a. speeds up and simplifies the acquisition of information b. does not process data c. helps managers understand problems and potential solutions by acquiring and analyzing information with sophisticated models d. can be used to replace all managerial decision making e. removes decision-making bottlenecks by creating a problem organization table

ANS: C PTS: 1 DIF: Moderate REF: 375 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Operations Management

The first step in the service-profit chain is the establishment of ____. a. employee satisfaction b. service capability c. internal service quality d. high value service e. nonmonetary rewards

ANS: C PTS: 1 DIF: Moderate REF: 387 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management | HRM

According to an electronics CEO, the first requirement of management is that it should make the fullest use of the capacities of its members. Thus any individual's job should be as little defined as possible so that it would 'shape itself' to the person's special abilities and initiative. This electronics company more than likely had a(n) ____ organization. a. centralized b. mechanistic c. departmentalized d. organic e. modular

ANS: D An organic organization is characterized by broadly defined jobs and responsibilities; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge. PTS: 1 DIF: Moderate REF: 191 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Leadership Principles | Group Dynamics | Individual Dynamics | HRM

McDonald's fast-food restaurants have a well-designed training program for all new employees. Each new employee is supposed to learn how to perform standardized tasks. Due to labor shortages in some areas, these new employees begin work as soon as they are hired and do not receive any off-the-job training. This nonconformity to standards creates ____. a. ambiguous group norms b. motivational grapevines c. negative benchmarks d. control loss e. monitoring valences

ANS: D Control loss occurs when behavior and work procedures do not conform to standards. PTS: 1 DIF: Moderate REF: 340 NAT: Level II Comprehension TOP: AACSB Technology KEY: Operations Management | HRM

By examining checkout data, supermarkets have learned that people who are buying beer typically also buy a bag of salty snacks. As a result of this finding from ____, supermarkets often place displays of beer near the chips and pretzel aisle. a. optical scanning b. electronic data interchange c. bar coding d. data mining e. data warehousing

ANS: D Data mining is the process of discovering unknown patterns and relationships in large amounts of data. PTS: 1 DIF: Moderate REF: 366 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Operations Management

Leaders during any disaster need to give their employees a sense that everyone is participating in the relief effort. The Gap gave its employees the authority to transfer their paid time off to some 1,300 employees affected by Hurricane Katrina. The Gap used ____ to allow its employees to gain a feeling of intrinsic motivation. a. standardization b. sequential interdependence c. pooled interdependence d. empowerment e. transactional intradependence

ANS: D Empowerment allows workers to gain feelings of intrinsic motivation because they are allowed to determine their own, individual response to a work situation. PTS: 1 DIF: Moderate REF: 194 NAT: Level I Knowledge TOP: AACSB Analytic

A car manufacturer ordered 20,000 window assemblies from a supplier. To make sure the assemblies were made to specifications, the supplier of the window assemblies shipped a sample to the car manufacturer for testing. This is an example of ____ control. a. feedback b. contiguous c. suboptimal d. feedforward e. synergistic

ANS: D Feedforward control is a mechanism for monitoring performance inputs rather than outputs to prevent or minimize performance deficiencies before they occur. PTS: 1 DIF: Moderate REF: 340 NAT: Level I Knowledge TOP: AACSB Technology KEY: Operations Management | Information Technologies

13. Disadvantages of ____ departmentalization include slower decision making, the development of managers and workers with narrow experience and expertise, and makes it more difficult for cross-departmental coordination. a. product b. customer c. geographic d. functional e. hierarchical

ANS: D Functional departmentalization organizes work and workers into separate units responsible for particular business functions. PTS: 1 DIF: Difficult REF: 179-180 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Leadership Principles | Group Dynamics | Individual Dynamics | HRM | Creation of Value

The ____ of a maker of cloth dolls would include over 200 yards of fabric, 100 yards of ribbon, a box of 500 wiggle eyes, stuffing, 20 dolls in various stages of completion, and 15 completed dolls. a. raw materials b. component materials c. finished products d. inventory e. SKUs

ANS: D Inventory is the amount and number of raw materials, parts, and finished products that a company has in its possession. PTS: 1 DIF: Easy REF: 391 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management

Which of the following is NOT an example of a security problem that may threaten data and data networks? a. email snooping b. phishing c. keystroke monitoring d. mob flashing e. password cracking

ANS: D Mob flashing is a red herring. The other choices are all examples of tools/techniques that managers should use to protect data and data networks. See Exhibit 17.3. PTS: 1 DIF: Moderate REF: 369 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Operations Management

Just a teaspoon too much or too little of a single ingredient can turn a great cake into a mediocre cake. The ability to know just how much to add, how long to stir, and how the cake should smell when it is cooked is a skill that a long-time baker would have. Through the use of ____, others can capture this specialized knowledge. a. electronic data interchanges b. pragmatic portals c. data mining d. expert systems e. executive information systems

ANS: D Most expert systems work by using a collection of "if-then" rules to sort through information and recommend a course of action. PTS: 1 DIF: Moderate REF: 376 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Operations Management

A sales manager requires each member of his sales force to make three calls per day on current customers, to call on two potential customers every week, and to sell a minimum of $10,000 worth of merchandise weekly. Which of the following control methods does this indicate the sales manager is using? a. normative b. market-oriented c. industrial betterment d. objective e. administrative

ANS: D Objective control is the use of observable measures of worker behaviors or inputs to assess performance and influence behavior. PTS: 1 DIF: Moderate REF: 342 NAT: Level I Knowledge TOP: AACSB Technology KEY: Operations Management | Leadership Principles | HRM

40. Which of the following positions most likely performs a staff function? a. the supervisor of the loading dock b. the organization's receptionist c. the vice president of marketing d. a member of the office cleaning crew e. a shift supervisor

ANS: D Only the office cleaning crew performs a task that does not directly contribute to the creation or sales of the product. PTS: 1 DIF: Difficult REF: 185 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Leadership Principles

In recent years, the Air Force Weather Agency (AFWA) has undergone a radical change in how it determines and shares local weather conditions with pilots. Before the local base weather station was responsible for warnings. The quality of this information varied. Now AFWA provides the same high standard of weather information to all pilots. This is an example of ____? a. customization b. micro-adaptation c. sequential independence d. reengineering e. customer empowerment

ANS: D Reengineering is the fundamental rethinking and radical redesign of processes to achieve dramatic improvements in performance. PTS: 1 DIF: Moderate REF: 191-192 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Creation of Value | Operations Management | HRM

. Imagine a manufacturer that has a 99 percent error-free production rate and decides it wants 100 percent error-free production. Its management needs to examine ____ to determine if the costs of increased controls outweigh the benefits of error-free production. a. cybernetic costs b. benchmarks c. financial ratios d. regulation costs e. feedback loops

ANS: D Regulation costs are the costs associated with implementing or maintaining control. PTS: 1 DIF: Moderate REF: 340-341 NAT: Level II Comprehension TOP: AACSB Technology KEY: Operations Management | Creation of Value

38. An international distribution company has a shipping division, a warehouse division, a computer hardware and software distribution center, as well as, a marketing research department, a human resources department, and an accounting department. A salesperson who works in the shipping division is told by the accounting department that he must turn in a weekly expense account. His supervisor in the shipping division wants expense accounts submitted monthly. The salesperson is likely experiencing a problem with ____. a. line authority b. delegation of authority c. centralization d. chain of command e. organizational synergy

ANS: D The chain of command is the vertical line of authority that clarifies who reports to whom. The salesperson is experiencing competing demands from two different individuals to whom he may be accountable. PTS: 1 DIF: Difficult REF: 185 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Leadership Principles | Individual Dynamics

Pamela Katian makes cloth dolls, which she sells to friends and relatives. Her total inventory includes over 200 yards of fabric, 100 yards of ribbon, a box of 500 eyes, stuffing, 20 dolls in various stages of completion, and 15 completed dolls. How many items are in Katian's work-in-process inventory? a. 100 b. 200 c. 15 d. 20 e. cannot tell from information given

ANS: D Work-in-process inventory refers to partially finished goods consisting of assembled component parts. PTS: 1 DIF: Moderate REF: 392 NAT: Level II Comprehension TOP: AACSB Analytic KEY: Operations Management

. The job design approach associated with ____ involves increasing the number of different tasks that a worker performs within one particular job and giving workers the authority and control to make meaningful decisions about their work. a. job rotation and job enlargement b. job specialization and job enrichment c. job specialization and job enlargement d. job enlargement and job enrichment e. job enrichment and job rotation

ANS: D PTS: 1 DIF: Difficult REF: 188-189 NAT: Level II Comprehension TOP: AACSB Analytic KEY: HRM | Individual Dynamics | Operations Management

Data clusters ____. a. result from the use of internal data mining b. are a statistical technique used for trend analysis c. are used to create samples for statistical analyses d. occur when three or more database elements occur together in a significant way e. are accurately described by all of these

ANS: D PTS: 1 DIF: Difficult REF: 367 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies

The lowest degree of processing occurs in ____ operations, where a company orders parts and assembles standardized products before receiving customer orders. a. assemble-to-stock b. buy-to-sell c. make-to-order d. make-to-stock e. assemble-to-order

ANS: D PTS: 1 DIF: Difficult REF: 390 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management

. When managers delegate work, three transfers occur. The three transfers are responsibility, authority, and ____. a. utility b. synergy c. reciprocity d. accountability e. empathy

ANS: D PTS: 1 DIF: Easy REF: 185-186 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Leadership Principles | Individual Dynamics

60. ____ is the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish their jobs. a. Task significance b. Task identity c. Skill variety d. Autonomy e. Skill feedback

ANS: D PTS: 1 DIF: Easy REF: 190 NAT: Level I Knowledge TOP: AACSB Analytic KEY: HRM | Individual Dynamics

____ is a feeling of intrinsic motivation, in which workers perceive their work to have meaning and perceive themselves to be competent, having an impact, and capable of self-determination. a. Reciprocity b. Motivational assertion c. Eutonomy d. Empowerment e. Autonomy

ANS: D PTS: 1 DIF: Easy REF: 194 NAT: Level II Comprehension TOP: AACSB Analytic KEY: Motivation Concepts | Leadership Principles | HRM

____ control is a method of gathering information about performance deficiencies before they occur. a. Feedback b. Stasis c. Preemptive d. Feedforward e. Concurrent

ANS: D PTS: 1 DIF: Easy REF: 340 NAT: Level II Comprehension TOP: AACSB Technology KEY: Operations Management | Information Technologies

____ is the process of ensuring that data are reliably and consistently retrievable in a usable format for authorized users, but no one else. a. Decryption b. Roadblocking c. Data insulation d. Protecting information e. Cookie manipulation

ANS: D PTS: 1 DIF: Easy REF: 368 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Operations Management

____ productivity is a measure of performance that indicates how much of a particular kind of input it takes to produce an output. a. Breakdown b. Segregated c. Unifactor d. Partial e. Fractional

ANS: D PTS: 1 DIF: Easy REF: 381 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management

The composition of a ____ organization is always changing. a. modular b. boundaryless c. decentralized d. virtual e. mechanistic

ANS: D PTS: 1 DIF: Moderate REF: 196-197 NAT: Level I Knowledge TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Operations Management | HRM

____ control is associated with autonomous work groups. a. Objective b. Normative c. Behavior d. Concertive e. Output

ANS: D PTS: 1 DIF: Moderate REF: 344 NAT: Level I Knowledge TOP: AACSB Technology KEY: Operations Management | Group Dynamics | HRM

Quality is typically defined and measured in three ways. They are ____. a. costs, profitability, and customer satisfaction b. value, customer satisfaction, and conformance to expectations c. profitability, reliability, and conformance d. excellence, value, and conformance to expectations e. performance, conformance, and reliability

ANS: D PTS: 1 DIF: Moderate REF: 351-352 NAT: Level I Knowledge TOP: AACSB Technology | AACSB Analytic KEY: Operations Management | Creation of Value

Process modification, material/product substitution, and ____ are the three strategies used for waste prevention and reduction. a. collective reuse b. modification of organizational culture c. process diversification d. good housekeeping e. product innovation

ANS: D PTS: 1 DIF: Moderate REF: 353-354 NAT: Level I Knowledge TOP: AACSB Technology KEY: Operations Management

Data mining is the ____. a. automated, electronic capture of data b. process of hypothesis testing in large databases c. process of verifying known relationships in large amounts of data d. process of discovering unknown patterns and relationships in large amounts of data e. method used to identify and eliminate perishable data

ANS: D PTS: 1 DIF: Moderate REF: 366 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies

The goal of an executive information system (EIS) is to ____. a. replace the need for intuition in decision making b. create a link among authorized data and network users c. protect organizational data from hackers d. provide accurate, complete, relevant, and timely information to managers e. do none of these

ANS: D PTS: 1 DIF: Moderate REF: 372 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Operations Management

. Intranets are ____. a. doors that allow managers to access transactions as they occur b. standardized protocols used to authenticate and authorize internal network users c. public networks that are only used for business-to-business transactions d. private company networks that allow employees to easily access, share, and publish information using Internet software e. publicly funded networks designed for specific industries

ANS: D PTS: 1 DIF: Moderate REF: 372-373 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Operations Management

The three principles that characterize TQM are continuous improvement, teamwork, and ____. a. third party certification b. delegation c. participative management d. customer focus and satisfaction e. distinctive competence

ANS: D PTS: 1 DIF: Moderate REF: 385-386 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management | HRM

Instead of individual sales people calling on its business customers, Cedartree Tech uses sales teams. The sales team is given complete responsibility for developing long-term partnering relationships with each customer. What kind of control would the company's sales managers most likely approve? a. human resources control b. participative control c. self-control d. administrative control e. concertive control

ANS: E Concertive control is regulation of workers' behaviors and decisions through work group values and beliefs. PTS: 1 DIF: Difficult REF: 344 NAT: Level I Knowledge TOP: AACSB Technology KEY: Operations Management | Group Dynamics | HRM

An Indian Catholic Cardinal's call for local church leaders to have more power and for papal authority to be distributed to lower levels within the Catholic hierarchy has elicited agreement from other church leaders in India. He also asserted that bishops should not have "to run to Rome for everything" and that canon law should be modified to allow the pope to share his authority. Vithayathil is calling for ____. a. centralization b. standardization c. top management empowerment d. job specialization e. decentralization

ANS: E Decentralization is the location of a significant amount of authority in the lower levels of an organization. PTS: 1 DIF: Moderate REF: 187 NAT: Level II Comprehension TOP: AACSB Analytic KEY: Leadership Principles

Commerce Insurance Services has five divisions. They are personal; core commercial; Main Street business; major commercial; and benefits. The company is also departmentalized along product lines. Commerce Insurance Services uses ____ departmentalization. a. boundaryless b. product c. customer d. functional e. matrix

ANS: E Matrix departmentalization is a hybrid organizational structure in which two or more forms of departmentalization are used together. PTS: 1 DIF: Difficult REF: 182-184 NAT: Level I Knowledge TOP: AACSB Analytic KEY: HRM | Operations Management

. Honeywell Inc. reorganized its European operations along customer lines to prepare for a unified European Union. In doing so, it abandoned matrix departmentalization. Why would Honeywell engage in such restructuring? a. to create pools of resources b. to empower its employees c. to better adhere to the management philosophy of staff authority d. to improve its ability to handle complex tasks e. to end conflict between product managers in different parts of its matrix

ANS: E One of the primary disadvantages of matrix departmentalization is the need for a high level of coordination. Alternatives A and D describe advantages of this form of departmentalization. PTS: 1 DIF: Moderate REF: 182-184 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Leadership Principles | Group Dynamics | Individual Dynamics | HRM | Creation of Value

A provider of computer technical support that is using the Balanced Scorecard approach to control would look at ____. a. the percentage of its employees that have received training during the last year b. customer defections c. its cash flow d. percentage of computer owners that requested support more than five times in a month e. all of these and more

ANS: E See Exhibit 16.2. PTS: 1 DIF: Moderate REF: 347 NAT: Level I Knowledge TOP: AACSB Technology KEY: Operations Management | Information Technologies | HRM

Transaction costs and loss of customer goodwill are both examples of ____. a. ordering costs b. setup costs c. holding costs d. depreciation costs e. stockout costs

ANS: E Stockout costs are the costs incurred when a company runs out of product, including transaction costs to replace inventory and the loss of customers' goodwill. PTS: 1 DIF: Moderate REF: 395 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management | Creation of Value

. A(n) ____ organization is an organization that is characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical communication. a. modular b. departmentalized c. standardized d. organic e. mechanistic

ANS: E PTS: 1 DIF: Difficult REF: 191 NAT: Level II Comprehension TOP: AACSB Analytic KEY: Creation of Value | Operations Management | HRM

Normative controls should be used when ____. a. cause-and-effect relationships are clear b. workers have been taught self-control skills c. responsibility for task accomplishment is given to autonomous work groups d. it is necessary to standardize all operations e. organizational culture, values, and beliefs are strong

ANS: E PTS: 1 DIF: Difficult REF: 343-344 NAT: Level II Comprehension TOP: AACSB Technology KEY: Operations Management | Group Dynamics | HRM

According to the resource-based view of information technology, sustainable competitive advantage ____. a. is difficult to create or acquire b. can be created by using information technology to continuously improve and support the core functions of a business c. differs across firms d. occurs when information technology adds value e. is accurately described by all of these

ANS: E PTS: 1 DIF: Difficult REF: 359-360 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Strategy

Unsupervised data mining can be used to recognize ____ patterns. a. association, affinity, and sequence b. association, extrapolative, and predictive c. affinity, predictive, and adjacency d. progressive, predictive, and accommodative e. affinity, sequence, and predictive

ANS: E PTS: 1 DIF: Difficult REF: 366-367 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies

____ is the collection of activities that transform inputs into outputs that customer's value. a. Reengineering b. Functionalization c. Organizational structure d. Production positioning e. Organizational process

ANS: E PTS: 1 DIF: Easy REF: 178 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Creation of Value | Operations Management | HRM

The two basic methods of capturing information are ____. a. systematic and unsystematic b. planned and unplanned c. continuous and intermittent d. functional and hierarchical e. manual and electronic

ANS: E PTS: 1 DIF: Easy REF: 364 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies | Operations Management

Using ____ data mining, the user simply tells the data mining software to uncover whatever patterns and relationships it can find in a data set. a. supervised b. specific c. comprehensive d. heterogeneous e. unsupervised

ANS: E PTS: 1 DIF: Easy REF: 366 NAT: Level I Knowledge TOP: AACSB Technology KEY: Information Technologies

Which of the following statements about firewalls is true? a. Firewalls are a way to protect data. b. Firewalls can be in the form of hardware or software. c. Firewalls prevent unauthorized use of data. d. Firewalls sit between the computers in an internal organizational network and outside networks. e. All of these statements about firewalls are true.

ANS: E PTS: 1 DIF: Easy REF: 370 NAT: Level II Comprehension TOP: AACSB Technology KEY: Information Technologies | Operations Management

. While ____ emphasizes jobs and their authority relationships, ____ emphasizes the activities through which work gets done in the organization. a. departmentalization; functionalization b. organizational process; organizational structure c. interorganizational process; intraorganizational process d. intraorganizational process; interorganizational process e. organizational structure; organizational process

ANS: E PTS: 1 DIF: Moderate REF: 177-178 NAT: Level I Knowledge TOP: AACSB Analytic KEY: HRM | Creation of Value | Group Dynamics | Individual Dynamics

The organizational process ____. a. defines roles not activities b. limits the adaptivity of an organization c. uses vertical and horizontal departmentalization d. is a traditional method for establishing organizational structures e. is the collection of activities that transform inputs into outputs that customers value

ANS: E PTS: 1 DIF: Moderate REF: 178 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Creation of Value | Operations Management | HRM

The primary disadvantage of geographic departmentalization is ____. a. the absence of cross-departmental coordination b. broken chains of command c. spans of control that are too wide d. the lack of empowerment e. duplication of resources

ANS: E PTS: 1 DIF: Moderate REF: 181-182 NAT: Level II Comprehension TOP: AACSB Analytic KEY: Leadership Principles | HRM | Creation of Value

In the automobile industry, three car manufacturers and a variety of suppliers and distributors have formed a network to create economies in production through outsourcing. It is intended for this ____ to cut as much as $3,000 from the costs of producing one car. a. matrix organization b. functional organization c. modular organization d. hierarchical organization e. virtual organization

ANS: E PTS: 1 DIF: Moderate REF: 196-197 NAT: Level II Comprehension TOP: AACSB Analytic| AACSB Technology KEY: Creation of Value | Operations Management | HRM

Control is a(n) ____ process. a. standardized, periodic, and cybernetic b. flexible, intermittent, and automated c. standardized, periodic, and robotic d. continuous, flexible, and automated e. continuous, dynamic, and cybernetic

ANS: E PTS: 1 DIF: Moderate REF: 339 NAT: Level I Knowledge TOP: AACSB Technology | AACSB Analytic KEY: Operations Management | Information Technologies

An article on public libraries contained the following statement: "The Balanced Scorecard helps organize and run the library according to a specific strategic plan, while demonstrating the library's value to the community as a whole." When dealing with the ____ area of the Balanced Scorecard, the article advised librarians to ask, "How can the library continue to improve and create value?" a. financial perspective b. policies and procedures perspective c. customer perspective d. internal business perspective e. innovation and learning perspective

ANS: E PTS: 1 DIF: Moderate REF: 352-355 NAT: Level I Knowledge TOP: AACSB Technology | AACSB Analytic KEY: Operations Management | Creation of Value

Unsupervised data mining is particularly good at identifying ____. a. association or affinity patterns b. sequence patterns c. predictive patterns d. data clusters e. all of these

ANS: E PTS: 1 DIF: Moderate REF: 366 NAT: Level II Comprehension TOP: AACSB Technology KEY: Information Technologies

In general, managers should use ____ to directly compare their overall level of productivity to that of their competitors, and ____ to analyze the contributions of individual components to that overall productivity. a. efficiency measures; a productivity analysis b. partial productivity; multifactor productivity c. integrated productivity; segregated productivity d. fragmented productivity; complete productivity e. multifactor productivity; partial productivity

ANS: E PTS: 1 DIF: Moderate REF: 381 NAT: Level I Knowledge TOP: AACSB Analytic KEY: Operations Management | Creation of Value | Environmental Influence