MGT Exam 2

According to the competing values framework (CVF), organizational _____ varies along two dimensions. a. structure b. effectiveness c. focus d. differentiation

effectiveness

True or false: Many small business owners do not engage in strategic planning. a. True b. False

true

___________ reflects the extent to which a person focuses on either task and technical concerns or people and social concerns when making decisions. a. Value orientation b. Tolerance for ambiguity c. People focus

value orientation

Flat organizations generally have few levels with _______ spans of control, with one manager overseeing many employees. a. narrow b. tall c. short d. wide

wide

What are Porter's four competitive strategies? a. Cost-leadership b. Differentiation c. Focused-differentiation d. Cost-focus e. Related diversification f. Vertical integration g. Single-product

-Cost-leadership -Differentiation -Focused-differentiation -Cost-focus

peter drucker

-creator and inventor of modern management -father of modern management -management by objectives

What is the most accurate description of person-organization fit? a. The degree to which the organization's culture aligns with its strategic context b. The education level of an individual and its relation to the job or tasks she or he performs at work c. A match between an individual's personality and values and those of the organization d. How much the culture of the organization is related to the firm's long-term financial perspective

A match between an individual's personality and values and those of the organization

bossidy and charan

came up with 3 core processes of business naming people as the most important

Research shows that employees have more positive work attitudes in organizations with a(n) _____ culture. a. clan b. adhocracy c. hierarchy d. market

clan

A system of shared beliefs and values that develops within an organization and guides the behavior of its members is called organizational ______. a. culture b. demeanor d. policies e. attitude

culture

_____ is the process that helps align the last two phases of the strategic-management process: strategic implementation and strategic control. a. Operations b. Differentiation c. Execution d. Diversification

execution

More positive organizational outcomes are associated with _____ cultures. a. market b. clan c. hierarchy d. adhocracy

market

The readily apparent symbols and manifestations of an organization's culture are called its _____. a. vision statements b. basic assumptions c. observable artifacts d. espoused values

observable artifacts

Edgar Schein

organizational culture

You can use the continuous feedback loop known as the _____ cycle to ensure you're headed in the right direction once you've made plans. a. goal-setting b. SMART c. compare/contrast d. planning/control

planning/control

The rational model of decision-making is considered _____ in that it describes how managers should make decisions, rather than how they actually make them. a. unconventional b. predictive c. prescriptive d. unethical

prescriptive

Heuristics are strategies that ______ the process of making decisions. a. initiate b. simplify c. categorize d. complicate

simplify

Common purpose, one of the four common elements of organizations proposed by Schein, a. coordinates individual efforts into group effort. b. ensure the right people do the right things at the right time. c. unifies members and helps everyone understand the organization's reason for being. d. arranges discrete parts of a task done by different people.

unifies members and helps everyone understand the organization's reason for being.

Which two of the following are some of the strongest ways to embed organizational culture? a. Stories b. Status symbols c. Rewards d. Rites

-rewards -status symbols

Which of the following represent learning-related tools that can be leveraged to change an organization's culture? a. role modeling b. coaching c. training d. profits

-role modeling -coaching -training

Organizations wishing to change their culture may alter their physical layout and design in order to: a. send a strong message about the culture b. encourage employee productivity c. recreate historical narratives

-send a strong message about the culture -encourage employee productivity

What are the two types of goals in business? a. Short-term b. Long-term c. Nonspecific d. Noncommittal

-short term -long term

According to Barnard's definition, which of the following examples represent organizations? a. the BumbleBee or StarKist tuna companies with their thousands of employees b. a person eating a tuna sandwich during their lunch break c. a crew of two people coordinating their activities on a commercial tuna fishing boat

-the BumbleBee or StarKist tuna companies with their thousands of employees -a crew of two people coordinating their activities on a commercial tuna fishing boat

What four characteristics are being addressed in a VRIO analysis? a. variety b. value c. organization d. obsolescence e. imitability f. replacement g. rarity e. intent

-value -rarity -imitability -organization

Consulting firm Accenture predicts that by 2035 artificial intelligence will have which economic effect? a. Economic growth will fall by half. b. Economic growth will stay roughly the same. c. Economic growth will increase by 2 or 3 percent. d. Economic growth will double.

Economic growth will double.

What is the third stage of the rational model of decision making? a. Develop alternative solutions. b. Identify the problem or opportunity. c. Evaluate alternatives and select a solution. d. Implement and evaluate the chosen solution.

Evaluate alternatives and select a solution.

What is the name of a technique used to help groups generate multiple ideas for solving problems in which potential ideas or solutions are collected (sometimes anonymously) and written on a board or flip chart? a. The Delphi technique b. Benchmarking c. A decision support system d. Brainstorming

brainstorming

The process of ensuring that the strategic goals set at the top align with more specific short-term goals at lower organizational levels is known as _____ goals. -divisional -SMART -cascading -organization-wide

cascading

Rites and rituals, which are activities and _____ used to celebrate important organizational events or achievements, can be leveraged in the process of culture change. a. stories b. slogans c. ceremonies d. communications

ceremonies

Which decision-making style is characterized by a high tolerance for ambiguity and the consideration of many options together with a willingness to take risks? a. Conceptual b. Behavioral c. Directive d. Analytical

conceptual

The process of fitting the organization to its environment is referred to as the _______ approach to organizational structure. a. category b. hollow c. contingency d. virtual

contingency

Strategic _____ involves monitoring the execution of strategy and taking corrective action when necessary. a. control b. differentiation c. integration d. supply

control

__ involves using sound reasoning to analyze situations, make decisions, and solve problems. a. Active listening b. Goal setting c. Critical thinking d. Management by objectives

critical thinking

Chester I. Barnard

defines an organization as a system of consciously coordinated activities or forces of two or more people

According to Kahneman, which of the following characteristics describe System 2 thinking? a. Deliberate b. Conscious c. Analytical d. Unconscious e. Intuitive

deliberate conscious analytical

The more subunits into which an organization breaks down, the more highly _____ it is. a. differentiated b. integrated c. customized d. accommodated

differentiated

People with the ______ style of decision making are action-oriented and like to focus on facts. They also tend to be autocratic-type managers. a. behavioral b. analytical c. directive d. conceptual

directive

True or false: Overconfidence bias is the tendency of decision makers to be influenced by the way a situation or problem is presented to them. a. True b. False

false

An organization where authority is centralized, tasks and rules are clearly specified, and employees are closely supervised is called _____. a. network b. modular c. contingency d. mechanistic

mechanistic

A company's _____ is the purpose of the organization. a. plan b. mission c. strategy d. vision

mission

The _____ statement expresses the purpose of an organization. a. operational b. mission c. values d. vision

mission

The purpose of management by objectives (MBO) is to ______ subordinates. a. scrutinize b. control c. motivate d. organize

motivate

Diversification involves a. moving into new lines of business. b. expansion of sales revenues. c. little or no significant strategic change.

moving into new lines of business.

In organizational culture, a story is a(n) a. activity or ceremony that celebrates important accomplishments in the organization's life. b. object or action that is used to convey an organization's most important values. c. process by which people learn the values, norms, and behaviors required to participate as organizational members. d. narrative based on true events which is repeated in order to emphasize a particular value.

narrative based on true events which is repeated in order to emphasize a particular value.

Evidence-based decision relies on ______. a. polls to determine the most popular approach b. personal beliefs about what should work c. a leader's authority to make a final choice d. observations about what actually works

observations about what actually works

It is the function of the _____ to take the strategic plan and develop actionable short-term goals that a business can achieve. a. operating plan b. tactical plan c. mission statement d. vision statement

operating plan

A box-and-lines illustration showing the formal lines of authority and the organization's work specializations is called a(n) ______ chart. a. mission b. networking c. organizational d. values

organizational

Of the three core processes of business identified by Bossidy and Charan, which do they believe is the most important? a. people b. strategy c. operations

people

The _______ process helps us to cope with uncertainty by formulating future courses of action designed to help achieve specified results. a. assessment b. management c. strategy d. planning

planning

Which of these are examples of business analytics? a. Groupthink b. Marketing plans c. Portfolio analysis d. Advertising campaigns e. Time-series forecast

portfolio analysis time-series forecast

Strategic positioning attempts to achieve sustainable competitive advantage by: a. changing key aspects of a company's identity b. preserving what is distinctive about a company c. performing similar activities as those of rivals and in similar ways

preserving what is distinctive about a company

SWOT analysis

strengths, weaknesses, opportunities, threats

When other companies cannot duplicate the value provided by a competitor, then the competitor has established a(n) _____ competitive advantage. a. sustainable b. benchmark c. ambiguous d. VRIO

sustainable

In terms of organizational culture, a _______ is an artifact, act, quality, or event that conveys an organization's most important values to others. a. ritual b. story c. symbol d. hero

symbol

overconfidence bias

the bias in which people's subjective confidence in their decision making is greater than their objective accuracy

Within a SWOT analysis, the letter "T" represents a company's _____. a. territory b. time c. trends d. threats

threats

Strategic planning is done by _____ managers. a. first-line b. top c. operations d. middle

top

True or false: A decision tree is an analytical tool that can help managers to understand the possible consequences of their decisions and to create a plan to reach a goal. a. True b. False

true

True or false: According to Bossidy and Charan, execution is the central part of any company's strategy. a. True b. False

true

Without having a plan in place, managers may focus only on _____ instead of keeping a long-range view and anticipating new opportunities. a. emerging opportunities for expansion b. whatever is in front of them c. overall company strategy d. competitors' movements

whatever is in front of them

Flat organizations generally have few levels with _______ spans of control, with one manager overseeing many employees. a. short b. wide c. tall d. narrow

wide

What is the best way to develop a ready-made solution? a. Conduct a cost-benefit analysis and pursue the cheapest options. b. Conduct a survey of preferred approaches to a problem and implement the most common responses. c. Identify best practices and turn them into standard operating procedure. d. Borrow the approaches that worked best for other individuals or organizations whom you admire.

Identify best practices and turn them into standard operating procedure.

The three types of organizational design are: a. open boundaries b. horizontal c. traditional d. sectional

-open boundaries -horizontal -traditional

What are four steps anyone can take to become a more proactive learner? a. judge others carefully and thoughtfully b. participate in professional conversations c. take initiative and rely on yourself d. follow along with group decisions e. engage in groupthink f. set realistic goals g. focus on solutions rather than problems

-participate in professional conversations -take initiative and rely on yourself -set realistic goals -focus on solutions rather than problems

daniel kahneman

-psychologist -winner of Nobel prize 2002 in economics -2 systems of thinking

What are three characteristics of an organization with a simple structure? (Select all that apply.) a. A tall hierarchy b. A flat hierarchy c. Customized work types d. Low work specialization e. Dispersed authority f. Authority in a single person

-A flat hierarchy -Low work specialization -Authority in a single person

Which of these are areas in which experts believe AI can be applied to decision making? (Select all that apply.) a. Augmented intelligence b. Strategic intelligence c. Operational intelligence d. Autonomous intelligence e. Assisted intelligence

-Augmented intelligence -Autonomous intelligence -Assisted intelligence

Which of the following are outcomes associated with various types of organizational culture? a. Better financial performance in market and hierarchy cultures b. Higher customer satisfaction in clan and market cultures c. Higher market share in clan and market cultures d. Stronger quality and innovation in hierarchy cultures e. More positive work attitudes in clan cultures f. More positive organizational outcomes in market cultures g. Higher market share in adhocracy cultures

-Better financial performance in market and hierarchy cultures -Higher customer satisfaction in clan and market cultures -Higher market share in clan and market cultures -More positive work attitudes in clan cultures -More positive organizational outcomes in market cultures

Successful implementation of major decisions requires which of the following? a. Careful planning b. Ignoring ethical dilemmas c. Reliance on the easy way out of the problem d. Sensitivity to those affected by the decision

-Careful planning -Sensitivity to those affected by the decision

Which one of the following best describes the decisions made by a person with an analytical style? a. Supportive of others and receptive to suggestions b. Carefully considers lots of information and alternatives c. Frequently rely on intuition and good at finding creative solutions d. Autocratic, action oriented, and decisive

-Carefully considers lots of information and alternatives

Which steps are recommended for establishing a process or method for making decisions? a. Ignore feedback or opinions from others and go with your gut instinct. b. Consider whether the decision is consistent with your values. c. Conduct a cost-benefit analysis. d. Analyze the situation.

-Consider whether the decision is consistent with your values. -Conduct a cost-benefit analysis. -Analyze the situation.

Which of the following function as the first stage in rational decision making by managers? (Select all that apply.) a. Low staff turnover b. Customer complaints c. Sales shortfalls d. Poor product quality

-Customer complaints -Sales shortfalls -Poor product quality

What are two advantages for a company that establishes deadlines? a. Deadlines ensure excellent quality work. b. Deadlines create competition among the staff. c. Deadlines aid in making quicker decisions. d. Deadlines motivate employees to focus on the goal.

-Deadlines aid in making quicker decisions. -Deadlines motivate employees to focus on the goal.

Which of these are reasons for chief executive officers (CEOs) getting increasingly ousted for ethical violations in the 21st century? a. Globalization allows businesses to operate in regions where ethical risks are greater. b. It has become customary for business leaders to self-report unethical behavior. c. Digital communications are more susceptible to hackers and whistleblowers. d. The 24/7 news cycle places more scrutiny on unethical behavior.

-Globalization allows businesses to operate in regions where ethical risks are greater. -Digital communications are more susceptible to hackers and whistleblowers. -The 24/7 news cycle places more scrutiny on unethical behavior.

Which models are characteristic nonrational models of decision making? a. Models that describe how managers should make decisions b. Models that train managers how to make ethical decisions c. Models that describe how managers actually make decisions d. Models that try to predict future behaviors and consequences

-Models that describe how managers actually make decisions

Which of the following statements regarding the horizontal design are true? a. internal boundaries are broken down b. cross-functional teams are eliminated c. this design is also called a team-based design d. workgroups are used to improve collaboration

-internal boundaries are broken down -this design is also called a team-based design -workgroups are used to improve collaboration

Which of the following are true regarding the second stage in the rational model of decision making? a. Once you have identified a problem or an opportunity and diagnosed its causes, you need to come up with both obvious and creative alternative solutions. b. Creativity precedes innovation and has been described as the source of all intellectual property. c. Evaluating feasible alternatives is a crucial part of the second stage of the rational decision making process.

-Once you have identified a problem or an opportunity and diagnosed its causes, you need to come up with both obvious and creative alternative solutions. -Creativity precedes innovation and has been described as the source of all intellectual property.

Decision-making styles vary along which two dimensions? a. Risk multiplication b. Tolerance for ambiguity c. Value orientation d. Defensive avoidance

-Tolerance for ambiguity -Value orientation

Which of the following are aspects of critical thinking? a. Using reason to analyze situations, make decisions, and solve problems b. Using qualitative and quantitative information to solve problems creatively c. Accepting suggestions from others without questioning them d. Making snap judgments based on intuition and subconscious mental processes

-Using reason to analyze situations, make decisions, and solve problems -Using qualitative and quantitative information to solve problems creatively

Which of the following are examples of Big Data? a. Web-browsing data trails b. Data in corporate databases c. Surveillance data d. Social network communications e. Unrecorded customer interactions

-Web-browsing data trails -Data in corporate databases -Surveillance data -Social network communications

Corporate-level strategy: a. answers questions such as "what business are we in?" and "what products and services shall we offer?" b. does not deal with acquisitions or significant investments in plant and equipment c. involves senior executives in planning d. focuses on the organization as a whole

-answers questions such as "what business are we in?" and "what products and services shall we offer?" -involves senior executives in planning -focuses on the organization as a whole

SMART goals: a. are measurable b. have target dates c. are attainable d. are results-oriented e. have sustainability f. are specific g. are impossible

-are specific -are measurable -are attainable -are results-oriented -have target dates

Which of the following represent competitive forces used in Porter's model for industry analysis? a. bargaining power of suppliers b. rivalry among competitors c. training of new employees d. threat of substitute products or services e. failure of new entrants f. retraining of existing employees g. bargaining power of buyers h. threats of new entrants

-bargaining power of suppliers -rivalry among competitors -threat of substitute products or services -bargaining power of buyers -threats of new entrants

What are the four activities for developing strategic thinking identified in the text? a. engage in lateral thinking b. foster community involvement c. understand the business d. set aside time to reflect e. identify immediate competitors f. broaden task and functional knowledge

-engage in lateral thinking -understand the business -set aside time to reflect -broaden task and functional knowledge

Organizational culture: a. helps employees understand why the organization does what it does b. represents beliefs and values shared among workers c. is the social glue that binds members of the organization together d. significantly affects work outcomes at all levels of the organization e. is written down clearly in the organization's code of conduct f. encompasses beliefs, knowledge, and behavior patterns, but not values g. is passed on to new employees through socialization and mentoring

-helps employees understand why the organization does what it does -represents beliefs and values shared among workers -is the social glue that binds members of the organization together -significantly affects work outcomes at all levels of the organization -is passed on to new employees through socialization and mentoring

What two things does the BCG matrix evaluate? a. market share b. economies of scale c. business growth rates d. cost of goods sold

-market share -business growth rates

4 styles of decision making

1. Directive 2. Analytical 3. Conceptual 4. Behavioral

Steps in the Strategic Management Process

1. Establish the mission and the vision 2. Assess the current reality 3. Formulate the grand strategy 4. Implement the strategy 5. Maintain strategic control

Advantages of Group Decision Making

1. greater pool of knowledge 2. different perspectives 3. intellectual stimulation 4. better understanding of decision rationale 5. deeper commitment to the decision

steps of the rational model of decision making

1. identify the problem or opportunity 2. think up alternative solutions 3. evaluate alternatives and select a solution 4. implement and evaluate the solution chosen

steps of the planning/control cycle

1. make the plan 2. carry out the plan 3. control the direction by correcting deviations and/or improving future plans 4. control the direction by comparing results with the plan

Group Decision Making

1. they are less efficient 2. their size affects decision quality 3. they may be too confident 4. knowledge counts

Knowledge of decision-making styles can assist managers in many ways except for which one of the following? a. It increases their ability to influence others by catering to their style. b. It helps to identify a manager's own strengths and weaknesses in making decisions. c. It increases the biases of the managers toward their favorite style. d. It facilitates the potential for self-improvement in making decisions.

It increases the biases of the managers toward their favorite style.

Which of the following is an accurate description of decision making? a. The procedure of explaining a choice that has been made b. The act of implementing a plan that has already been conceived c. The process of analyzing the underlying causes of a situation d. The process of identifying and choosing alternative courses of action

The process of identifying and choosing alternative courses of action

A(n) _____ organization is a fluid, highly adaptive organization whose members are linked by information technology and collaborate on common tasks. centralized mechanistic adjustable boundaryless

boundaryless

Personal ___________ is defined as the ability and willingness to adapt to changing situations a. ethic b. adaptability c. flexibility d. adjustment

adaptability

A consensus is reached when all members are able to express their opinions ______. a. and decide on a date to make a final decision b. and vote on a final decision c. but are unable to make a final decision d. and reach agreement to support the final decision

and reach agreement to support the final decision

Which decision-making style is the most people-oriented of the four styles? a. Analytical b. Opinion c. Behavioral d. Directive

behavioral

The process by which a company compares its performance with that of other high-performing organizations is known as _______. a. benchmarking b. competitive analysis c. forecasting d. offshoring

benchmarking

A _____ is a vision or projection of the future that is made following a SWOT analysis. a. cyclic pattern b. strategy c. market analysis d. forecast

forecast

_____ embed preferred culture by describing organizational philosophy, mission, vision, and values. a. Stories, legends, and myths b. Formal statements c. Rites and rituals d. Slogans and sayings

formal statements

All the following are characteristics of group decision-making EXCEPT _____. a. their size affects their decision quality b. their knowledge counts c. they may be too confident d. groups make decisions quickly

groups make decisions quickly

A business that wants to reach more customers and hires more employees to get this done is focusing on a _____ strategy. a. growth b. defensive c. stability

growth

If an organization wishes to become more controlling and authoritative toward its employees, it should consider adopting a(n) _____ structure. a. flat b. powerful c. adhocracy d. hierarchical

hierarchical

Which of the following is an advantage of group decision making? a. goal displacement b. satisficing c. intellectual stimulation d. groupthink

intellectual stimulation

One thing groupthink teaches us is that cohesiveness: a. is universally positive. b. isn't always a good thing. c. is the best outcome associated with group decision making.

isn't always a good thing.

An organization's _____ can pay attention to, measure, and control a number of activities, processes, or outcomes in order to foster a certain culture. a. mission b. statements c. strategy d. leaders

leaders

A _____ plan directs activity, such as a project, that is unlikely to be repeated. a. standing b. single-use c. rocket d. tactical

single-use