MGMT 300 Exam 3
Coordination is defined as: a. the ability of the organization to produce timely products. b. the quality of collaboration across departments. c. differentiation. d. the quantity of goods produced by the organization. e. all of these.
b
Focusing on how well resources and human capital are being managed for the company's future refers to which component of the balanced scorecard? a. Customers b. Learning and growth c. Financials d. Internal business processes e. External business processes
d
Organizational development can help managers address problems such as merger/acquisitions, conflict management, and _____ . a. cultural changes b. force field analysis c. organizational productivity d. organizational decline/revitalization e. none of these
d
Small-batch production is distinguished by standardized production runs. a. True b. False
f
The Six Sigma approach is a comprehensive management control system that balances traditional financial measures with operational measures relating to a company's critical success factors. a. True b. False
f
The balance sheet shows the firm's financial position with respect to expenses and credits at a specific point in time. a. True b. False
f
The functional structure offers a way to decentralize decision making and provide direction from the teams in the field. a. True b. False
f
The distinctive feature of the project manager position is that the person is not a member of one of the departments begin coordinated. a. True b. False
t
The divisional structure encourages decentralization. a. True b. False
t
The implementation of total quality management involves the use of many techniques such as quality circles, benchmarking, Six Sigma principles, reduced cycle time, and continuous improvement. a. True b. False
t
Traditional views of organizational design recommend a span of management of about 7 to 10 subordinates per manager. a. True b. False
t
Communication and education tactic to change implementation should be used when: a. initiators clearly have power. b. group has power over implementation. c. change is technical. d. users need to feel involved. e. group will lose out in change.
c
Gina wishes to transfer authority and responsibility to her subordinates. This process is known as: a. accountability. b. coordination. c. delegation. d. departmentalization. e. passing the buck.
c
In times of crisis or risk of company failure, authority should be: a. decentralized. b. centralized at the bottom. c. centralized at the top. d. spread through a wide span of management. e. flat.
c
Strategy defines _____ to do (it) while organizing defines _____ to do (it). a. how; what b. how; why c. what; how d. what; why e. when; what
c
The _____ is a unit separate from the rest of the organization responsible for the development of a major innovation. a. new product group b. matrix group c. new-venture team d. vertical group e. change team
c
_____ is the lack of information about future events. a. Uncertainty b. Risk c. Worry d. Stress e. Change resistance
a
_____ standards represent an international standard for quality management. a. ISO 9000 b. Six Sigma c. TQM d. Kiazan e. Foreign Economy Index
a
At which stage of the change process do managers evaluate problems and opportunities? a. Monitor forces for change b. Need for change c. Initiate change d. Implement change e. Internal forces
b
Which of the following organizations have a flat structure compared to others? a. Organization A with eleven hierarchical levels b. Organization B with three hierarchical levels c. Organization C with eight hierarchical levels d. Organization D with six hierarchical levels e. Organization E with seven hierarchical levels
b
Which of the following refers to funding activities with borrowed money? a. ROA b. Leverage c. Liquidity d. Profitability e. Activity
b
_____ change is a change in the organization's product or service outputs. a. Technology b. Product c. Entrepreneurship d. Creative e. Incremental
b
shooting Star, Inc. has slow response to external changes, centralized decision making, and poor coordination across departments. It is likely structured: a. along divisional lines. b. along functional lines. c. based on the team approach. d. based on the virtual network approach. e. none of these.
b
the matrix structure violates which of the following principles of management? a. Unity of direction b. Unity of command c. Work specialization d. Division of labor e. Span of management
b
which of the following structures is the leanest of all organization forms because little supervision is required? a. Functional approach b. Virtual network approach c. Team approach d. Matrix approach e. Divisional approach
b
According to the control model, after establishing standards of performance the manager should: a. compare performance to standards. b. get the standards approved by the supervisors and subordinates. c. measure actual performance. d. take corrective action. e. provide feedback.
c
All functions in a specific country or region report to the same division manager in _____ divisions. a. functional b. matrix c. geographic-based d. teams e. networks
c
All of the following are characteristics of creative organizations EXCEPT_____. a. use of teams b. risk taking norms c. centralization d. long term horizon. e. loose controls
c
All of the following are key steps of setting up feedback control systems EXCEPT: a. comparing performance to standards. b. establishing standards. c. getting employee opinions. d. measuring performance. e. making necessary corrections.
c
All of the following are characteristics of creative individuals EXCEPT _____. a. originality b. playfulness c. curiosity d. rationality e. open-mindedness
d
In _____ production, firms produce goods in batches of one or a few products designed to customer specification. a. service b. customer-induced c. continuous process d. small batch e. mass
d
The Brain" is a permanent secret group within one of the nation's largest auto manufacturers. Members of this elite group focus intently on developing new and innovative automobile technologies. "The Brain" can best be described as what type of group or team? a. Cross-functional team b. Fast-cycle team c. Brainstorming team d. Skunkwork e. New-venture team
d
The people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command. This is called _____. a. delegation b. line authority c. staff authority d. accountability e. hierarchy
d
Which of the following is an incorrect fit in a stable organizational environment? a. A tight structure b. A rigid structure c. A functional structure d. A horizontal structure e. A vertical structure
d
Which of the following is(are) an advantage of team structure? a. Increased barriers among departments b. Unplanned decentralization c. Time and resources spent on meetings d. Less response time, quicker decisions e. All of these
d
_____ schedule materials to arrive at a company just as they are needed on the production line. a. Mass customization system b. LIFO system c. First-in-First-out system d. Just-in-time inventory system e. Last-in-First-out
d
Advantages of the matrix structure include: a. it increases employee participation. b. it makes efficient use of human resources. c. it works well in a changing environment. d. it develops both general and specialist management skills. e. all of these.
e
An open team is a multifunctional, and sometimes multinational, team that works under stringent timelines and is provided with high levels of resources and empowerment to accomplish an accelerated product development project. a. True b. False
f
Open-book management ties employee rewards to the company's overall success. a. True b. False
t
. Which of the following describes a person who is passionately committed to a new product of idea despite rejection by others? a. An idea champion b. A sponsor c. A new-venture team d. A skunkwork e. An investor
a
How does managerial authority flow through the organizational hierarchy? a. Vertically b. Sporadically c. Horizontally d. In a circular fashion e. Authority is static - it does not flow
a
In the _____ structure, the organization is viewed as a central hub surrounded by a network of outside specialists which are sometimes spread all over the world. a. virtual network b. matrix c. functional d. divisional e. geographic
a
When work specialization is extensive: a. employees perform a single task. b. employees perform many tasks. c. employees are often highly challenged. d. employees are often inefficient. e. jobs tend to be large.
a
Which approach should a group use to resist change if the group has power over implementation and if the group will lose out in the change? a. Negotiation b. Top management support c. Participation d. Coercion e. Education
a
Which of the following allows employees to see for themselves the financial condition of the company? a. Open-book management b. An economic value-added system c. Activity-based costing d. An inappropriate control system e. Market value-added system
a
Which of the following is a change in the manner in which an organization does its work? a. Technology b. Product c. Entrepreneurship d. Creativity e. Incremental
a
Which of the following is considered a leverage ratio? a. Debt ratio b. Return on total assets c. Profit margin on sales d. Conversion ratio e. Inventory turnover
a
All of the following are advantages of a functional structure EXCEPT: a. economies of scale. b. excellent coordination between functions. c. in-depth skill specialization and development. d. high quality technical problem solving. e. career progress within functional departments.
b
An advantage of the bottom-up budgeting process is: a. its emphasis on bureaucratic control. b. lower managers are more involved. c. top managers control the information flow. d. top managers are often not committed to achieving budget targets. e. all of these.
b
In the _____ approach, a manufacturing company uses outside suppliers to provide entire chunks of a product, which are then assembled into a final product by a handful of workers. a. virtual network b. modular c. virtual organization d. team e. matrix
b
Louise works in the manufacturing department at Ice Sculptures. The work in Louise's department is low in task specialization. As a result, Louise: a. usually performs a single task. b. does a variety of tasks and activities. c. is often bored. d. is rarely challenged. e. generally goofs-off.
b
Organization structure is defined as the: a. visual representation of the organization. b. framework in which the organization defined how tasks are divided, resources are deployed, and departments are coordinated. c. division of labor. d. unbroken line of authority that links all individuals in the organization. e. none of these.
b
Shared development of innovations among several departments is emphasized by the _____ approach to innovation a. vertical b. horizontal linkage model c. top down d. bottom-up e. diagonal
b
_____ departments include all of those that provide specialized skills in support of _____ departments. a. Line; staff b. Staff; line c. Primary; functional d. Functional; primary e. Line; functional
b
_____ indicators focus on production and operating statistics. a. Financial performance b. Business process c. Critical success d. Potential for learning and growth e. Performance measurement
b
A task force is _____ committee(s) formed to solve a specific problem. a. a standing b. a permanent c. a temporary d. all of these e. none of these
c
The outcome of information and cooperation is _____. a. organization b. planning c. coordination d. differentiation e. controlling
c
What is the key to successful benchmarking? a. Application b. Implementation c. Analysis d. Strategy e. Planning
c
Which of the following is a person who sees the need for and fights for productive change in an organization? a. A creative individual b. A catalyst c. An idea champion d. A sponsor e. A critic
c
All of the following are critical innovation strategies for changing products and technologies EXCEPT _____. a. exploration b. cooperation c. innovation roles d. risk propensity e. all of these are critical innovation strategies
d
An example of an organizational would be: a. the switch to a new production method. b. the decision to offer a new product line. c. the introductions of a new pay for performance system. d. all of these. e. the switch to a new production method or the decision to offer a new product line.
d
Jacob was recently looking at his company's organization chart in an attempt to discover who reports to whom. Jacob is studying his organization's: a. degree of formalization. b. amount of differentiation. c. degree of centralization. d. chain of command. e. division of labor.
d
Net income divided by sales is the correct formula for calculating: a. return on total assets. b. a current ratio. c. a liquidity ratio. d. profit margin on sales. e. a corporate evaluation.
d
Relative to a flat organizational structure, a tall structure has a _____ span of management and _____ hierarchical levels. a. wide; fewer b. narrow; fewer c. narrow; wider d. narrow; more e. wide; more
d
The goal of _____ is to get every employee thinking and acting like a business owner. a. management-by-walking around b. closed-book management c. MBO d. open-book management e. just-in-time inventory systems
d
The team approach to departmentalization is a response to: a. lack of participative teams. b. centralized decision-making. c. the competitive global environment. d. all of these. e. both lack of participative teams and centralized decision-making.
d
Today's most successful companies are including _____ directly in the product and service development process. a. employees b. internal buyers c. competitors d. customers e. all of these
d
Traditionally, a span of management of about _____ has been recommended. a. three b. five c. fifteen d. seven e. twenty
d
When the organization is structured along _____ lines, coordination is required. a. functional b. divisional c. team d. all of these e. functional or divisional
d
Which of the following is a comprehensive management control system that balances traditional financial measures with operational measures relating to a company's critical success factors? a. Economic value-added system b. Activity-based costing system c. Market value-added system d. Balanced scorecard e. Open-book management system
d
Which of the following provides a safe harbor where ideas from employees throughout the company can be developed without interference from company bureaucracy or politics? a. An idea champion b. A sponsor c. A new-venture team d. An idea incubator e. An inventor
d
Which of the following refers to a major shift in the norms, values, attitudes, and mindset of the entire organization? a. Organization change b. Organization development c. People change d. Culture change e. Artifact change
d
_____ is(are) most beneficial when employees have challenging jobs. a. Six Sigma b. Total Quality Management c. Kaizen d. Quality circles e. Continuous improvement
d
_____ refer(s) to the difference between assets and liabilities and is the company's net worth in stock and retained earnings. a. Assets b. Current debt c. Net profit d. Owners' equity e. Liabilities
d
_____ refers to innovations in products, services, or processes that radically change an industry's rules of the game for producers and consumers. a. Restructuring innovation b. Trickle up innovation c. Productive innovation d. Disruptive innovation e. Reverse innovation
d
hich of the following is a contemporary approach to structural design in departmentalization? a. Functional b. Divisional c. Traditional divisions d. Teams e. Geographic-based
d
All of the following are advantages of a divisional structure EXCEPT: a. high concern for customers' needs. b. fast response, flexibility in an unstable environment. c. emphasis on overall product and division goals. d. development of general management skills. e. there is little duplication of services across divisions.
e
All of the following are the major disadvantages of the matrix structure EXCEPT: a. it generates a large amount of conflict. b. managers spend much time resolving conflict. c. the confusion caused by the dual chain of command. d. the power imbalance that can result between the sides of the matrix. e. enlarged tasks for employees.
e
All well-designed control systems involve the use of _____ to determine whether performance meets established standards. a. opinions b. advice c. consultants d. benchmarks e. feedback
e
Decentralized control is usually implemented in all of the following areas EXCEPT: a. self-control. b. peer group. c. corporate culture. d. employee selection and socialization. e. the quality control department.
e
organizational structure includes which of these? a. The set of formal tasks assigned to individuals b. The set of formal tasks assigned to departments c. The design of systems to ensure effective coordination of employees across departments d. Formal reporting relationships e. All of these are part of organizational structure.
e
A balance sheet budget is a budget that plans and reports investments in major assets to be depreciated over several years. a. True b. False
f
A organizational map is a visual representation of an organization's structure, showing communication and lines of power. a. True b. False
f
A process in which lower level managers anticipate their department's resource needs and pass them to top management for approval is called top-down budgeting. a. True b. False
f
Large cost savings from reduced inventories and labor savings by needing fewer workers to handle inventory can be driving forces associated with the implementation of just-in-time inventory control systems. a. True b. False
f
Most organizations today discourage managers to delegate authority to the lower levels given the challenges to meet customer needs and adapt to the environment. a. True b. False
f
Organizing defines what to do while strategy defines how to do it. a. True b. False
f
People change starts with training everyone in the organization. a. True b. False
f
Quick response to external changes is an advantage of vertical functional structure. a. True b. False
f
The level of funds flowing through the organization and the nature of cash disbursements is shown through the capital budget. a. True b. False
f
The overseer of both the product and functional chains of command, responsible for the entire matrix is the matrix boss. a. True b. False
f
The three distinct steps for achieving behavioral and attitudinal change with organizational development are planning, changing,and stabilizing. a. True b. False
f
With a matix structure, the entire organization is made up of horizontal teams that coordinate their work and work directly with customers to accomplish the organization's goals. a. True b. False
f
Within the balanced scorecard, customer service indicators measure things such as employee retention and satisfaction. a. True b. False
f
A standard for performance is included in an organization's overall strategic plan to compare organizational activities against. a. True b. False
t
An activity ratio that measures how many times the inventory is turned over to meet the total sales figure is called the inventory turnover. a. True b. False
t
An ambidextrous approach means incorporating structures and processes that are appropriate for both the creative impulse and for the systematic implementation of innovations. a. True b. False
t
An idea incubator is in-house program that provides a safe harbor where ideas from employees throughout the organization can be developed without interference from company bureaucracy or politics. a. True b. False
t
Authority is the right to use resources, make decisions and issue orders in an organization. a. True b. False
t
Continuous improvement is the implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis. a. True b. False
t
Coordination is the quality of collaboration across departments. a. True b. False
t
Culture change refers to a major shift in the norms, values, attitudes, and mindset of the entire organization. a. True b. False
t
Effective management control involves subjective judgment and employee discussions, as well as objective analysis of performance data. a. True b. False
t
Exploration is the aspect of product and technology innovation that involves creating mechanisms to make sure new ideas are carried forward, accepted, and implemented. a. True b. False
t
For companies to operate effectively, the amount of centralization or decentralization should fit the firm's strategy. a. True b. False
t
In the unfreezing step, participants must be made aware of problems and be willing to change. a. True b. False
t
The divisional structure fosters excellent coordination within divisions, but coordination across divisions is often poor. a. True b. False
t
The disparity between existing and desired performance levels is the need for change. a. True b. False
t
. Madison has been assigned to work on the development of a budget that plans future investments in major assets such as buildings and heavy machinery. Madison is working on a(n) _____ budget. a. cash b. capital c. revenue d. operating e. expense
b
A quality circle is a group of _____ volunteer employees. a. 2 to 4 b. 6 to 12 c. 10 to 20 d. 15 to 25 e. 30 to 50
b
A(n) _____ works best in a stable organizational environment. a. loose organizational structure b. vertical structure c. organic structure d. horizontal structure e. loose organizational structure or an organic structure
b
. Which of the following is not an approach to structural design that reflects different uses of the chain of command? a. Matrix approach b. Team-based approach c. Process approach d. Divisional approach e. Virtual network approach
c
A fund providing resources from which individuals and groups draw to develop new ideas, products, or businesses is referred to as a _____. a. personal fund b. development fund c. new-venture fund d. change fund e. mutual fund
c
A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting their common work activities is a _____. a. feedforward control group b. work team c. quality circle d. committee e. problem team
c
A step in the diagnosis stage of organizational development in which participants are made aware of problems is referred to as _____, a. change agent b. changing c. refreezing d. unfreezing e. exercising
d
A formal chain of command for both functional and divisional relationships is provided by the _____ approach to structure. a. matrix b. vertical functional c. divisional d. product e. team-based
a
All of the following are major perspectives of the Balanced Scorecard EXCEPT _____. a. competitors b. customers c. learning and growth d. financial e. internal business processes
a
The role of the _____ is to prevent people in other roles from adopting a bad idea. a. critic b. inventor c. sponsor d. ombudsman e. obstructionist
a
Which department performs tasks that reflect the organization's primary goals and mission? a. Line b. Staff c. Primary d. Functional e. Strategic planning
a
Change and uncertainty in the environment are usually associated with _____. a. work specialization b. decentralization c. centralization d. tight vertical control e. division of labor
b
Which quality control technique uses a five-step methodology to define, measure, analyze, improve, and control processes, otherwise referred to as DMAIC? a. Quality circles b. Six Sigma c. Benchmarking d. Balanced scorecard e. Continuous improvement
b
____ provide the basic information used for financial control of an organization. a. Owners equity b. Income statements c. Financial position d. Mission Statements e. 100-K's
b
_____ means that each employee is held accountable to only one supervisor. a. Scalar principle b. Unity of command c. Work specialization d. Division of labor e. Span of management
b
A pure functional structure is most appropriate for achieving: a. innovation. b. differentiation. c. internal efficiency goals. d. flexibility. e. all of these
c
Which of the following happens as organizations grow? a. Positions and departments are deleted. b. Management layers are eliminated to save cost. c. Managers have to find ways to tie different departments. d. Top management becomes more autocratic. e. None of these.
c
_____ control is the process of setting targets for an organizations expenditures. a. Quality b. Income c. Budgetary d. Systems e. Supply chain
c
_____ is NOT a type of current problem that organizational development can help address. a. Mergers b. Acquisitions c. Diversification d. Organizational decline e. Conflict management
c
_____ is a control system that identifies the various activities needed to produce a product and determines the cost of those activities. a. Open-book management b. An economic value-added system c. Activity-based costing d. An inappropriate control system e. None of these
c
_____ is the trend in recent years. a. Greater work specialization b. Less delegation c. Wider spans of management d. Narrower spans of management e. Tall structure
c
_____ means that decision authority is located near the _____ of the organization. a. Centralization; bottom b. Decentralization; top c. Centralization; top d. Centralization; middle e. None of these
c
_____ refers to the fact that services are perishable and cannot be stored in inventory. a. Boundarylessness b. Tangible output c. Intangible output d. Flexible operations e. Centralization
c
Which of the following includes anticipated and actual expenses for a responsibility center? a. Revenue budget b. Cash budget c. Capital budget d. Expense budget e. Operating budget
d
Which of the following is a quality control approach that emphasizes a relentless pursuit of higher quality and lower costs? a. Continuous improvement b. Cycle time c. Quality circles d. Six Sigma e. Benchmarking
d
Which of the following symbolizes to all employees that the change is important for the organization? a. Education b. Coercion c. Participation d. Negotiation e. Top management support
e
_____ is an approach that brings together participants from all parts of the organization to discuss problems or opportunities and plan for major change. a. Virtual-group intervention b. Traditional organization development c. Multi-unit intervention d. Strategic planning committee e. Large-group intervention
e
Benchmark control focuses on the quantity of an end product or service. a. True b. False
f
Liabilities are the firm's debts, both current and long-term. a. True b. False
t
Organizational change refers to the adoption of a new idea or behavior by an organization. a. True b. False
t
TQM tends to be most successful when it enriches jobs and improves employee motivation. a. True b. False
t
The certification based on a set of international standards for quality management, setting uniform guidelines for processes to ensure that products conform to customer requirements is the ISO certification. a. True b. False
t
The deployment of organizational resources to achieve strategic goals refers to organizing. a. True b. False
t
The horizontal linkage model is increasingly important in high pressure business environments that require rapidly developing and commercializing products and services. a. True b. False
t
The pure functional structure is appropriate for achieving internal efficiency goals. a. True b. False
t
The right to advise, recommend, and counsel in the staff specialists' area of expertise is included in staff authority. a. True b. False
t
The system of governing an organization so that the interests of corporate owners are protected refers to corporate governance. a. True b. False
t
The systematic process of regulating organizational activities to make them consistent with the expectations in plans, targets, and standards of performance refers to organizational control. a. True b. False
t
The use of cultural values, traditions, shared beliefs and trust to increase compliance with goals refers to decentralized control. a. True b. False
t
Three of the most popular and effective OD activities are team building, survey feedback, and large-group interventions. a. True b. False
t
Training is one of the most frequently used approaches to changing people's mindsets. a. True b. False
t
Two possible tactics for overcoming resistance to change are coercion and negotiation. a. True b. False
t
An advantage of functional structures is the: a. resulting economies of scale. b. enlarged tasks for employees. c. easy pinpointing of responsibility for product problems. d. development of general management skills. e. flexibility in an unstable environment.
a
For control, this type of measure is an important part of achieving higher performance. a. Statistical b. Theoritical c. Emotional d. Employee conflict e. Market
a
For the compact disc industry, the advent of MP3 technology can best be described as what type of innovation? a. Disruptive innovation b. Service innovation c. Productive innovation d. Restructuring innovation e. Reverse innovation
a
Quality circles are based on the assumption(s) that: a. the people who do the job know it better than anyone else. b. quality can be increased by increasing the size of the organization. c. quality can be increased by talking more about it. d. the more employees talk, the more satisfied they will be. e. all of these.
a
Recently, a high level manager at Trophy Trinkets noted a rise in customer satisfaction complaints. This rise is inconsistent with Trophy's goals in this area. This manager has identified: a. a need for change. b. a critical incident. c. a behavioral occurrence. d. an environmental opportunity. e. a SWOT analysis.
a
Relative to the functional structure, the divisional structure: a. encourages decentralization. b. has a higher degree of work specialization. c. has a more pronounced division of labor. d. has excellent coordination across departments. e. results in an efficient use of resources.
a
Self-contained unit structure is a term used for: a. divisional structure. b. functional structure. c. term structure. d. matrix structure. e. virtual network structure.
a
The _____ is the product or functional boss, who is responsible for one side of the matrix. a. matrix boss b. production supervisor c. department boss d. top leader e. two-boss employee
a
The _____ plans future investments in major assets to be depreciated over several years. a. capital budget b. balance sheet budget c. cash budget d. revenue budget e. profit budget
a
The adoption of a new idea or behavior by an organization is known as organizational _____. a. change. b. development. c. structure. d. intervention. e. responsibility.
a
The biggest advantage to a virtual network approach is _____ and _____ on a global scale. a. flexibility; competitiveness b. coordination; organization c. communication; organization d. communication; no cost e. flexibility; coordination
a
The conversion ratio is considered to be a(n) _____ ratio. a. activity b. liquidity c. profitability d. leverage e. cash
a
The innovation strategy for changing products and technologies that involves designing the organization to encourage creativity and the initiation of new ideas is known as _____. a. exploration b. cooperation c. entrepreneurship d. idea incubator e. horizontal linkage
a
There are many organizational development activities, which are effective in solving many different problems. _____ enhances the cohesiveness and success of organizational groups. a. Team building b. Survey feedback c. Intergroup activities d. Process-Consultation activities e. Symbolic management
a
Which of the following is the reinforcement stage of organization development in which individuals acquire a desired new skill or attitude and are rewarded for it by the organization? a. Refreezing b. Restating c. Unfreezing d. Changing e. Jumping
a
Which of the following leads to strong coordination across functional areas and greater flexibility in responding to changes in the environments? a. Reengineering b. Layoffs c. Downsizing d. A temporary committee e. An ad hoc committee
a
_____ is also referred to as work specialization. a. Division of labor b. Unity of command c. Scalar chain d. Esprit de corps e. Virtual network approach
a
_____ refers to a clearly defined line of authority in the organization that includes all employees. a. Scalar principle b. Unity of command c. Work specialization d. Division of labor e. Span of management
a
n a _____ organization, the entire work flow is mechanized in a sophisticated and complex form of production technology. a. service production b. mass production c. large-batch production d. small-batch production e. continuous process production
a
Creative organizations: a. are characterized by an unusually high number of routine jobs. b. are loosely structured. c. have little ambiguity. d. have too many layers of management. e. use a centralized decision making approach.
b
The _____ approach to change implementation should be used when users have power to resist. a. education b. participation c. coercion d. top management support e. domination
b
The _____ ratio refers to the ability of the organization to meet its current debt obligation. a. activity b. liquidity c. profitability d. conversion e. growth
b
The control "system" at FreshFood Corporation is based on the culture of the organization and norms that develop in the individual work teams. This is an example of: a. bureaucratic control. b. decentralized control. c. organizational control. d. feedback control. e. none of these.
b
The final step to be managed in the change process is: a. freezing b. implementation c. intervention d. planning change e. envisioning change
b
The functional, _____, and _____ are traditional approaches that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy. a. divisional, teams b. divisional, matrix c. matrix, teams d. matrix, networks e. teams, networks
b
The generation of novel ideas that may meet perceived needs or respond to opportunities for the organization is called _____. a. a search initiative b. creativity c. an ideal champion d. a great idea e. strategic analysis
b
The innovation strategy for changing products and technologies that involves creating conditions and systems to facilitate internal and external coordination and knowledge sharing is known as _____. a. exploration b. cooperation c. entrepreneurship d. idea incubator e. horizontal linkage
b
What is the first step in the feedback control system? a. Establishing strategic objectives b. Establishing standards of performance c. Taking corrective action d. Comparing performance to standard e. Measuring previous performance
b
Which of the following is a control system that measures performance in terms of after-tax profits minus the cost of capital invested in tangible assets? a. Open-book management b. Economic value-added system c. Activity-based costing d. Inappropriate control system e. None of these
b
Which of the following is a philosophy of organization-wide commitment to continuous improvement, focusing on teamwork, customer satisfaction, and lowering costs? a. Engineering b. Total quality management c. Outsourcing d. Culture e. Diversity
b
Which of the following is a ratio that measures the firm's internal performance with respect to key activities defined by management? a. A liquidity ratio b. An activity ratio c. Return on total assets d. A current ratio e. Profit margin on sales
b
Which of the following is the systematic process through which managers regulate organizational activities? a. Strategic planning b. Organizational control c. Organizational goal setting d. Strategic regulation e. Organizational leading
b
Which of the following refers to the number of employees reporting to a supervisor? a. The line of authority b. The span of management c. The chain of command d. The management chain e. Delegation
b
Which of the following refers to the system of governing an organization so that the interests of corporate owners are protected? a. Quality circle b. Corporate governance c. ISO certification d. Open-book management e. Balance scorecard
b
_____ indicates a disparity between existing and desired performance levels. a. Environmental opportunity b. Need for change c. Behavioral occurrence d. Critical incident e. Organizational structural imbalance
b
_____ is any organizational department or unit under the supervision of a single person who is responsible for its activity. a. Independent center b. Responsibility center c. Analysis center d. Control center e. Budgeting center
b
_____ refers to the steps taken to complete a company process. a. Continuous improvement b. Cycle time c. Quality circles d. Six sigma e. Benchmarking
b
_____ teams are brought together as a formal department in the organization. a. Cross-functional b. Permanent c. Formal d. Ad-hoc e. Task
b
After every quarterly board meeting, Bernice's Bracelets, Inc. announces big changes. They usually do not follow through on these changes. What is causing this lack of enthusiasm? a. Disagreements about the benefits b. Self interests c. A lack of trust d. Goals and assessments e. Competitors
c
Successful change requires that organizations be capable of both creating and implementing ideas, which means the organization must learn to be _____. a. cordial b. rightsized c. ambidextrous d. compliant e. intra-focused
c
The _____ is an organization structure that divides the major functions of the organization into separate companies. a. diversification approach b. team approach c. virtual network approach d. BCG approach e. functional approach
c
The _____ is purchase orders divided by customer inquiries. a. current ratio b. inventory turnover ratio c. conversion ratio d. profit margin on sales e. none of these
c
The basic philosophy of control at Nutrients-For-You, Inc. is based on the policies found in the employee handbook, as well as a strict hierarchy of authority. This philosophy is consistent with: a. clan control. b. bottom-up control. c. hierarchical control. d. culture control. e. decentralized control.
c
The formal and legitimate right of a manager to make decisions is _____. a. delegation b. responsibility c. authority d. span of management e. leadership
c
The horizontal linkage model is best applied to a: a. low pressure environment. b. stable environment. c. environment that requires speed. d. customer service environment. e. manufacturing environment.
c
To reduce the organization's cycle time is to reduce the number of: a. of committees in the organization. b. layers of management. c. steps in an organizational process. d. staff employees in the organization. e. none of these.
c
Total quality management: a. is based on the ideas of Frederick Taylor. b. gives managers total responsibility for achieving quality goals. c. gives all employees the responsibility for achieving quality goals. d. was first successfully implemented in the United States. e. is all of these.
c
Unity of command and the scalar principle are both closely related to the: a. amount of work specialization in an organization. b. degree of formalization. c. chain of command. d. amount of bureaucracy in the organization. e. matrix structure.
c
What is force field analysis? a. The analysis of the forces that drive customers to a certain organization b. The analysis of the forces that drive the organization of a company c. The process of determining which forces drive and which resist a proposed change d. The process by which an organization forces changes to occur e. none of these
c
When departments are grouped together on the basis of organizational outputs, the organization is using a: a. functional structure. b. matrix structure. c. divisional structure. d. virtual network structure. e. team-based structure.
c
Which approach to change implementation should be used when a crisis exists? a. Education b. Participation c. Coercion d. Top management support e. None of these
c
Which of the following is a characteristic of the large-group intervention model? a. Results in incremental change b. Learning for the small group c. Addresses the entire system d. Gradual time frame e. Limited distribution
c
Which of the following is defined by the text as the application of behavioral science knowledge to improve an organization's health and effectiveness through its ability to cope with environmental changes, improve internal relationships, and increase problem-solving capabilities? a. Conflict management b. Organizational revitalization c. Organizational development d. Organizational linkage e. Horizontal linkage
c
Which of the following refers to the degree to which organizational tasks are subdivided into individual jobs? a. Multitasking b. Lines of authority c. Work specialization d. Autonomy e. Team structure
c
Which of the following refers to the deployment of organizational resources to achieve strategic goals? a. Planning b. Controlling c. Organizing d. Leading e. Strategic management
c
Which of the following refers to the generation of novel solutions to perceived problems? a. Problem solving b. Organizational development c. Creativity d. Brainstorming e. Perceived solution
c
Which of the following structures works best in an uncertain organizational environment? a. A tight structure b. A mechanistic structure c. A horizontal structure d. A functional structure e. A vertical structure
c
Which of the following typically is NOT considered a staff department? a. Strategic planning b. Accounting c. Manufacturing d. Human resources e. Research and development
c
Which of these is a financial budget that estimates cash flows on a daily basis or weekly basis to ensure that the company can meet its obligations? a. Capital expenditure budget b. Balance sheet budget c. Cash budget d. Revenue budget e. Profit budget
c
Which of these is based on a set of international standards for quality? a. Quality circle b. Corporate governance c. ISO certification d. Open-book management e. Balance scorecard
c
Disadvantages of the virtual network approach include: a. a lack of hands-on control. b. the possibility of losing an important part of the organization. c. weakened employee loyalty. d. all of these. e. a lack of hands-on control and weakened employee loyalty.
d
The organization chart: a. shows the characteristics of the organization's vertical structure. b. is a visual representation of the organization's structure. c. details the formal reporting relationships that exist within an organization. d. all of these. e. both shows the characteristics of the organization's vertical structure and is a visual representation of the organization's structure.
d
Which of the following is NOT a characteristic of a creative individual? a. Conceptual fluency b. Undisciplined exploration c. Persistence and focused approach d. Authorization and dependent e. All of these are characteristic of a creative individual
d
Which of the following is the intervention stage of organization development in which individuals experiment with new workplace behavior? a. Refreezing b. Restating c. Unfreezing d. Changing e. Jumping
d
Which of the following is the process of measuring your organizational process against the best in the industry? a. Outsourcing b. Continuous improvement c. Environmental analysis d. Benchmarking e. Competitive measurement
d
_____ uses formal bargaining to win acceptance and approval of a desired change. a. Education b. Participation c. Coercion d. Negotiation e. Top management support
d
A contingency factor that can influence the success of a TQM program in a negative way is that: a. continuous improvement is a way of life. b. TQM serves to enrich jobs and motivate employees. c. problem-solving skills are improved for all employees. d. participation and teamwork are used to tackle significant problems. e. union leaders are left out of QC discussions.
e
According to BusinessWeek and Boston Consulting Group, 72% of top executives reported that _____ is a top priority. a. planning b. competition c. organization d. cooperation e. innovation
e
An organization strives for internal efficiency with a(n) _____ strategy. a. integration b. diversification c. differentiation d. defensive e. cost leadership
e
In the process of implementing the balanced scorecard approach at his company, operations manager Seth Howard wonders whether internal activities and processes add value for customers and shareholders. This involves which dimension of the balanced scorecard? a. Customers b. Learning and growth c. Financials d. External business processes e. Internal business processes
e
The _____ delineates the chain of command, indicates departmental tasks and how they fit together, and provides order and logic for the organization. a. management chart b. employee directory c. structural table d. administrative chart e. organizational chart
e
The firm's financial position with respect to assets and liabilities at a specific point in time is shown by its: a. activity ratio. b. profitability ratio. c. income statement. d. liquidity ratio. e. balance sheet.
e
When trying to overcome the resistance for change, which approach is best suited when change is technical? a. Coercion b. Top management support c. Negotiation d. Participation e. Communication
e
Which of the following is(are) important role(s) to be played during the process of organizational change? a. The idea champion b. The critic c. The sponsor d. Inventor e. All of these
e
Although work processes can be controlled and regulated, it is impossible to control and regulate employee behavior. a. True b. False
f
Centralization and short time horizon are primarily used by creative organizations. a. True b. False
f
Certainty in the environment is usually associated with decentralization. a. True b. False
f
Customer service, external business processes, financial performances, and the organization's capacity for learning and growth are the four major perspectives of the balanced scorecard. a. True b. False
f
In most companies, managers rely exclusively on qualitative measures to measure actual performance. a. True b. False
f
Lack of understanding or trust are common reasons for resistance to change. a. True b. False
f
Reengineering basically means preserving the past by establishing the sequence of activities by how work was done. a. True b. False
f
Research shows that managers in creative companies avoid risk and experimentation. a. True b. False
f
The capital budget lists planned investments in major assets such as buildings, heavy machinery, or complex information technology systems. a. True b. False
f
The horizontal structure provides traditional control within functional departments, and the vertical structure provides coordination across departments. a. True b. False
f
The traditional organization development model focuses on the entire system and learning takes place throughout the whole organization. a. True b. False
f
The trend in recent years has been toward narrower spans of control as a way to facilitate delegation. a. True b. False
f
