BA 490 Exam 2

All of the following statements about simple organizational structures are true EXCEPT which?

Creativity and individualism are rare.

An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure?

Strategic business unit structure

According to the skills approach to leadership, conceptual skills are least needed at what level of management compared to the others

Supervisory

Rules and regulations are examples of

boundaries and constraints.

Increasing Capacity tends to

reduce the number of workers on Second Shift -Increasing Capacity tends to reduce the number of workers on the Second Shift. As an example, a production order of 1,200 units on a line with a Capacity of 800 units (numbers in thousands) will require 400 units to be produced by the Second Shift. Increasing Capacity to a total of 1,000 units will result in 1,000 units manufactured by First Shift labor, and only 200 units produced by more expensive Second Shift labor.

Five components of emotional intelligence include

self awareness, self regulation, motivation, empathy, and social skills.

Which skill is associated with having knowledge about and being proficient in a specific type of work or activity?

Technical

According to the S-shaped curve, diminishing returns for a single year budget becomes significant at

$750,000

There are 4 organizational culture types we studied. They are:

Adhocracy, clan, hierarchy, and market

Which of the following is an advantage of a divisional type of organizational structure?

An enhanced ability to respond quickly to changes in the external environment.

The exact outcome of TQM efforts appear on the TQM report, and as bar charts on the RQM spreadsheet. There results are for

Cumulative for the previous and all remaining rounds (assuming no additional investment is made),

Cash and profit are synonymous.

False

Leaders are not expected to accept personal responsibility for ethical behavior in an organization because ethics is a matter of individual choice.

False

Rarely does it make sense to run a company using debt.

False

Teams can eliminate all Recruiting Costs if they wish

False -Teams can choose to enter 0 in the Recruiting Spend cell on the Human Resources screen, however that number is in addition to a base Recruiting Cost of $1,000 per worker. A Recruiting Spend entry facilitates recruiting a better quality of worker.

Worker training is entered by the

Hour -Hours are entered on the HR Screen. Training costs $20.00 per hour per worker.

According to trait theory, there are 5 traits that all leaders should possess or cultivate if one seeks to be perceived by others as a leader. Which of the following is NOT one of these traits:

Self interest

Most organizations with strong cultures and a sound system of rewards and incentives can eventually internalize boundaries rather than use explicit rules and regulations. Which of the following is not a technique for moving in that direction?

Minimize training and indoctrination.

Which financial obligation is best satisfied with Bond Issues?

Paying for increased production capacity

Which financial obligation is best satisfied with Current Debt Issues as opposed to other financing choices according to the Team Member Guide?

Paying for increased production capacity

Generally, Separation Costs will be incurred when

Production levels decrease and / or Automation levels increase -The Needed Complement is determined by a combination of a) the number of units ordered into production; and b) the Automation level of the assembly lines. Decreasing the number of units produced from one year to the next will decrease the Needed Complement. Similarly, increases in Automation will decrease the Needed Complement. If teams adjust the This Year cell to match the Needed Complement, Separation Costs will be incurred.

Recruiting Costs are incurred when

Production runs increase and teams match hiring to Needed Complement -Increasing production and then matching the Needed Complement will result in new hires, and therefore increase Recruiting Costs.

If a company with low automation wanted to invest in a single area that exclusively lowers costs, they would select

QIT (quality initiative training)

Position power is that which is associated with the office or rank in an organization. All of the following fall under position power EXCEPT

Referent

The TQM report can be accessed from

The foundation Fastrack

Hiring the Needed Complement will always eliminate

a Second Shift -Hiring the Needed Complement eliminates all Overtime. The Second Shift workers are paid the same as workers on Overtime, however, Second Shift workers are more efficient and do not seek work elsewhere, therefore reducing turnover.

A firm's bond rating slips by 1 category for each ______ in interest

additional 0.5%

Capital needed for company activities cannot be acquired through:

arbitrarily firing employees

Increasing Training Hours tends to

both increase and decrease the Needed Complement -In the short term, increasing Training Hours will increase the Needed Complement-- Workers are taken off the production line and put in the classroom. However, as time goes on, investing in Training Hours increases worker productivity, and therefore tends to decreases the Needed Complement.

Management should strive to

decrease Turnover -Lowering Turnover reduces Recruitment costs.

Assuming the Productivity Index is greater than 100%, adding Overtime will

decrease the Productivity Index -While the Productivity Index can never fall below 100%, it is possible for teams to increase the Index by investing in a higher quality of worker (Recruiting Spend) and in education (Training Hours). However, scheduling Overtime will decrease the Index because workers will become tired and disgruntled.

Investing in the same TQM initiative round after round will create

diminishing returns

Which component of Emotional Intelligence (EI) enables a manager to have a deep understanding of the existence and importance of cultural and ethnic differences?

empathy

At ABC Corporation, work is divided into units that specialize in production, marketing, research and development, and other management tasks. This is an example of a

functional structure.

Which of the following is an important characteristic of a leader?

goal-oriented

When subcultures emerge that have shared values opposite from the dominant culture of an organization

individuals begin working at cross purposes.

Top managers at ABC Company meet every Friday to review daily operational reports and year-to-date data. This is an example of

informational control.

Complicated working relationships and intense power struggles are disadvantages of what type of organizational structure?

matrix

Production runs can be scheduled in

one or two shifts -Up to twice the production line's First Shift Capacity can be scheduled for each individual product. Production runs that exceed the First Shift Capacity result in either Overtime and/or a Second Shift, depending on the Worker Complement.