Business Management Exam 2

A _____ organization works to facilitate the lifelong personal development of all of its employees while continually transforming itself to respond to changing demands and needs.

learning

_____ is the last step in the change process.

Evaluation and follow up

Unions negotiating for higher wages is an example of a(n) _____ force for change.

External

Blue Bells Inc. is a software services firm. Lately, the company's HR department noticed that its employees' performance levels have plummeted, and a survey conducted by the firm indicated that this was due to low employee satisfaction levels. This prompted the HR department to introduce a new incentive system in the company. This is an example of change in the area of _____.

People

Units with _____ operate with little interaction-the output of the units is put together at the organizational level.

Pooled interdependence

_____ are changes in the way products or services are manufactured, created, or distributed.

Process Innovations

_____ exists when activities flow both ways between units.

Reciprocal Interdependence

When a company changes its work processes, the change is in the area of _____.

Technology and operations

The _____ boasts a total membership of more than 10,000 small-business owner largest number in the country; it offers its members not only networking possibilities but also educational programs and services tailored to their needs.

Council of Smaller Enterprises of Cleveland

The top management at Phoenix Inc. planned to shift their corporate office to a bigger and better facility about four streets away from the current location. The top managers knew that their decision would meet with considerable employee resistance, so they informed all the employees well in advance of the advantages of moving to the new office. This minimized the employees' resistance. Which of the following techniques of overcoming resistance is illustrated in the scenario?

Education

Sarah has started a day care centre of her own. She makes the major decisions about how the centre runs, what services it provides, and at what prices. She has funded the venture with her own savings and will be taking up complete responsibility of the success or failure of the venture. Sarah is most likely a(n) _____.

Entreprenuer

The top management at Omega Inc. recently initiated an employee motivation drive to improve employee morale and in turn decrease turnover rates. It has now commissioned a statistics firm to check the effect of its initiative on the employees' morale. Which step of the comprehensive approach to change is illustrated in the scenario?

Evaluation and follow up

Which of the following would require continually adding new tasks and challenges as part of the job design?

Job Enrichment

In _____, the jobs do not change, but instead workers move from job to job.

Job Rotation

_____ involves systematically moving employees from one job to another.

Job Rotation

Enlightened Minds is a software services firm that uses routine training programs, seminars by eminent developers, and discussion forums to keep employees updated on the recent developments in the software field. Enlightened Minds is an example of a(n) _____.

Learning Organization

Which of the following factors is responsible for the failure of a small business?

Managerial Inexperience

Delta LLC. purchases raw materials such as leather and canvas from suppliers and processes them into finished shoes. Delta LLC. operates in the _____ industry.

Manufacturing

More than any other industry, the _____ industry lends itself to big business.

Manufacturing

Nokia and Samsung make cell phones. They operate in the ____ industry.

Manufacturing

Richard Inc. has been receiving complaints from its customers about the inefficiency of its customer service professionals. The company has now decided to change the recruitment criteria for this role. The new criteria place more emphasis on technical expertise. Richard Inc. is attempting to make a change in the area of _____.

Organization structure and design

_____ is one of the three specific ways for promoting innovation in organizations.

Organizational Culture

Relish Inc. is a large corporation in the food industry that manufactures canned foods, confectionery, and baked foods. The organization has a separate department for each of these types of food manufactured. Each department integrates all the activities required to manage their respective line of food. Which of the following types of departmentalization is illustrated in the scenario?

Product Departmentalization

Johnson recently launched a new electronics store in Fremont. The store sells smartphones, laptops, and mobile accessories from companies like Apple, Samsung, Sony, and Philips. The store operates in the _____ industry.

Retail

Ryan has started a store where customers can find a wide range of organic products manufactured by different companies. Ryan's business is in the _____ industry.

Retail

Which of the following is an advantage of starting a business from scratch?​

The entrepreneur is free to choose inventories and locations.

Which of the following is a disadvantage of buying an existing business?

The entrepreneur may suffer the ill effects of a prior owner's errors.

Identify an advantage of a franchising agreement.

The franchiser can grow rapidly from franchising agreements.

_____ is the stage of the innovation process at which an organization introduces new products or services to the marketplace.

Application Launch

Gadgetbug Inc. manufactures home appliances. All the decisions are made by the top managers at the company. The middle and lower managers follow the instructions given by top managers rather than making decisions by themselves. Which of the following concepts is illustrated in the scenario?

Centralization

_____ is defined as a clear and distinct line of authority among the positions in an organization.

Chain of command

At Delta Corp. the manufacturing and design department frequently consults with the research and development department and the marketing and sales department regularly interacts with the manufacturing and design department. This scenario illustrates _____ at Delta.

Coordination

At Supertech Inc., a technology company, employees are given more authority and are allowed to make their own decisions. Supertech operates in a business environment that is not predictable. The middle managers, supervisors, and employees have a degree of autonomy and are encouraged to make decisions. Which of the following concepts is illustrated in the scenario?

Decentralization

_____ are the aspects of business that a firm performs better than other companies in the same industry.

Distinctive Competencies

A company has set an objective to increase its product sales by 50 percent in the next two years. Identify the step of the organization change process of the company.

Establishment of goals for the change

Creating different teams for finance, production, and marketing is consistent with _____ departmentalization.

Functional

Which of the following statements is true about an organic organization?

It has a flexible and informal organizational design.

Who among the following is most likely to be an entrepreneur?

Mariam has taken a loan to fund her new café.

A wide span of management in a flat organization may result in a manager having _____.

More administrative responsibility

Which of the following statements is true about small businesses in the United States?

Most U.S. workers are employed by small firms.

A _____ is a segment of a market that is not currently being exploited.

Niche

Which of the following statements is true about the service industry?

Service businesses are the fastest-growing segment of small-business enterprise.

Jeanne owns a boutique in Paris and is best known for the formal suits that she stitches for working women. She makes customized suits for each of her customers, keeping their age, body type, and their appearance in mind. Which of the following technologies is Jeanne using in her boutique?

Small Batch Technology

A(n) _____ is a top-level manager who approves of and supports a project. This person may fight for the budget needed to develop an idea, overcome arguments against a project, and use organizational politics to ensure the project's survival.

Sponsor

Leading Edge Software Inc. has introduced a new activity called "Group Farming" in which the company's executive groups participate in farming activities for three hours every month. This activity has been designed by the company to emphasize the importance of interdependence and coordination among its employees. Which of the following organization development techniques is the company using?

Team Building

Which of the following statements is true about small businesses?

The vast majority of small firms are owner-operated.

Which of the following statements is true about entrepreneurs?

They essentially start new businesses.

Which of the following represents organization change in the area of change in technology and operations?

Upgrading the management information system

A(n) _____ is a model of organization design based on a legitimate and formal system of authority.

bureaucracy

The first stage of the organizational innovation process is _____ of creative ideas.

development

Martin is trying to adopt more automated equipment in his soda bottling facility, and workers are resisting the change. When Martin decides to hold a meeting to explain to workers how the change will be beneficial to them, he is using _____ as a means of overcoming resistance to change.

education

In most change situations, there are factors that make the change process more difficult and others that seem to ease the process. The process by which a manager identifies these factors and then tries to tip the balance so that the factors facilitating the change outweigh those hindering the change is called _____.

force-field analysis

A(n) _____ is a person who actually conceives of and develops the new idea, product, or service by means of the creative process.

inventor

One of the benefits of job specialization is that:​

it makes employees proficient at a task

The first step of the change process involves:

recognizing the need for change

In _____, the output of one unit becomes the input for another in a serial fashion.

sequential interdependence

​In the reengineering process, the first step involves:

setting goals and developing a strategy.

According to Weber, in a bureaucracy:

there should not be any arbitrary dismissals.

Which of the following is an advantage of buying an existing business?

​Established supplier relationships

​One disadvantage of hiring management consultants to solve problems in business is that:

​most management consultants do not provide objective opinions.