Business Management Final Study Guide

Which of the following is an example of a project that enhanced an existing product:

A software update for your computer

Larissa tells her employees to spend one-third of their time on sales reports, one-third on answering emails, and one-third on generating new leads. This is an example of which step of the organizing process?

Allocate resources

Which of the following terms refers to the flow of authority within an organization:

Chain of command

In which stage of project management is the product delivered?

Closing

Which of the following skills is at the core of most business activities:

Communication skills

In what way might an HR manager be involved in employee benefits?

Determining eligibility and costs

After a company's training needs are determined, what is the next step in training and development?

Determining what training resources are available

Textronics, Inc. manufactures and sells its computer chips in six countries. It employs over 8,000 people worldwide. Which organizational structure makes the most sense for Textronics, Inc.?

Divisional

Labor-union negotiations are part of which HR management activity?

Employee relations

In which stage of project management does the actual work of the project take place?

Execution

True or false: Companies without an HR department do not participate in HR management activities.

False; in companies without HR departments, other managers and supervisors participate in HR management activities.

Which of the following business trends affects HR management:

Globalization

Which of the following is a benefit of using project management software:

Improved efficiency

Which of the following is an effect of overstaffing:

Inefficiency

Which of the following industries exists to protect individuals and businesses from financial losses:

Insurance

Which of the following is a disadvantage of the matrix organizational structure:

It violates the unity of command principle.

Which of the following is a compliance issue:

Minimum wage

Completing an employee's insurance and tax paperwork is part of which staffing task?

Onboarding

Which of the following is an indicator that human resources needs may change:

Organizational growth

In which stage of project management does risk analysis take place?

Planning

Which of the following documents is drafted in the initiation stage of project management:

Statement of work

Which of the following workplace-related safety and health issues would most likely be regulated by law:

Storage and disposal of chemicals

Which of the following is a disadvantage of using the divisional organizational structure:

Support staff may not have a permanent "home."

What are the equipment and supplies needed by a business to produce and/or sell its goods?

The equipment and supplies needed by a business to produce and/or sell its goods are the business's material resources.

Which of the following is a reason that the role of HR management is changing:

There is greater diversity in the workforce.

Which of the following is a true statement about human resources needs:

They are always changing.

Which of the following is a true statement about projects:

They are short-term undertakings.

How does organizing provide a sense of security for employees?

They know exactly what is expected of them.

Which of the following is a purpose of an exit interview:

To gain constructive suggestions for improvement

Which task in the staffing process ensures that employees are knowledgeable and productive?

Training and developing

True or false: All employees make an impact on a business.

True; all employees make either a positive or negative impact on a business.

Which of the following documents is drafted in the planning stage of project management:

Work breakdown structure

Marla and her fellow managers at the Frisco Corporation have determined that rearranging their human resources could increase the company's efficiency. This human resources change is most likely the result of

a need for process improvement.

A commission or bonus is an example of a form of

compensation

An hourly wage or a yearly salary is a form of

compensation.

Making sure a company follows laws and regulations describes the HR management activity of

compliance.

The staffing function is different from the organizing function because staffing is

continuous

Diana prepares bills and invoices for her company. Her career is in the area of

corporate finance.

An organization's "personality" is also referred to as its

culture.

A workload analysis assesses

current and future human resources needs.

Every project creates a(n)

deliverable

The first task in the HR management activity of staffing is

determining need.

A business's human resources needs may change if it begins to require new types of skills and experience. This occurs frequently because the business world is

dynamic.

The best business career prospects are available to candidates who have

earned a bachelor's degree.

Employees who have supervisory responsibilities for part or all of the business work in

general management.

Rules and regulations for keeping a project on track are known as

governance mechanisms.

The people who work to produce goods and services are known as

human resources.

Managers must create explanations of the responsibilities and tasks associated with each work position. These are known as

job descriptions.

Mason is the vice president of marketing at his company. He directly supervises everyone who works in the department. Mason has __________ authority.

line

Taylor works as a public relations manager. His career is in the area of

marketing communications.

The saying "form follows function" indicates that organizational design must fit with organizational

objectives.

Which of the following is an on-boarding activity:

orientation

Businesses use organizational design to structure their

people, information, and technology.

Staffing is one of the five functions of management, along with

planning

A manufacturing company is well-suited for a divisional organizational structure broken down by

process.

Learning new job skills or updating your current job skills is known as

professional development.

A project is officially authorized to begin by the

project charter.

When a project's scope slowly gets bigger and bigger, it creates a challenge for project managers known as

project creep.

The part of staffing that involves seeking out and attracting qualified potential job candidates is called

recruiting

When HR management executives participate in a company's long-range planning efforts, they are taking part in

strategic management.

A well-planned organizational design helps a business to better compete because

the business is more productive.

A workforce analysis assesses

the human resources that are available.

Staffing is important because human resources are

the organization's most valuable assets.

A job specification is an explanation of

the skills, knowledge, and characteristics required for a job.

Human resources are a company's most important resources because

they control all other company resources.

The three common constraints on a project are scope, budget, and

time.

Managers hope to increase sales by 10 percent this year as part of their overall effort to become #1 in the industry. This effort will affect human resources and is part of the organization's

vision.

Jenn has bookkeeping responsibilities at her new job. In what department does she likely work?

Accounting

Which of the following is a career area in business management:

business information management

The key to recruiting is

finding the right number of applicants.

An organization will likely consider its purpose for existing when developing an appropriate human resources management strategy. This purpose is referred to as the organization's

mission

Steve manages employees who are highly skilled and need little supervision. Therefore, he can supervise quite a few employees at once. Steve's span of control is

wide.

Which of the following is an example of an employee-assistance program:

Career and education planning

Which of the following is a benefit of using the functional organizational structure:

It reduces the duplication of certain activities.

Which of the following is a career area in business:

Marketing

When developing a human resources management strategy, managers

determine how to bridge gaps between HR needs and available HR.

None of the other managerial functions can be carried out effectively without staffing because

staffing supplies the human resources needed for management.

Which of the following describes the matrix organizational structure:

It is a combination of two other organizational structures.

Which of the following is a true statement about the matrix organizational structure:

It is useful for most types of organizations.

Which of the following is an advantage of the matrix organizational structure:

It makes good use of organizational resources.

Discuss the organizing management function.

Organizing involves setting up the way the business's work will be done. When managers organize, they review the plans that they have made, determine the jobs that need to be performed, group those jobs into departments, and establish lines of authority.

Why is it important for managers to understand the jobs of the workers they manage?

Managers need to understand the jobs their workers perform in order to effectively manage the employees who do the work. If managers understand the jobs, they know how workers should do their jobs and are able to answer questions and help employees solve problems. They are aware of what it takes to complete certain tasks.

When the hybrid vehicle was introduced, it was an example of a project that

used entirely new technology.

Which of the following describes a divisional organizational structure:

AJK Corporation has a CEO, followed by six vice presidents that manage the company's product lines.

Which of the following is a true statement regarding project managers:

Anyone with the right skills can be a project manager.

Which of the following tasks would a manager complete when organizing:

Arranging an office space

Why do businesses manage information?

Businesses manage information in order to make good decisions about business activities. Businesses gather internal and external information to understand current conditions that will allow them to operate successfully and to achieve their goals.

Explain why businesses manage their financial resources.

Businesses manage their financial resources in order to have money available to buy supplies and materials, to pay employees, and to cover their other operating expenses. The way managers handle the business's financial resources often determines whether the business succeeds or fails.

Which of the following is a common way for a divisional organizational structure to be broken down:

By territory

Describe the controlling management function.

Controlling involves monitoring the work effort. When managers control, they coordinate the business's activities to make sure that the company is performing effectively and achieving its goals. Managers also monitor and measure employees' performance, identify problem areas, and make corrections when necessary.

What are the responsibilities of first-line managers?

First-line managers are responsible for carrying out the actions and plans that the middle managers identified. In other words, they are generally responsible for the day-to-day activities of the employees who do the routine work of the business. They train these employees, assign work to these employees, evaluate employees' job performance, and maintain respect and discipline among the employees. In addition, first-line managers often work side-by-side with these workers.

Which of the following is a benefit of the division of labor:

Increased efficiency

Which of the following is a career area in finance:

Insurance

Which of the following is an advantage of using the divisional organizational structure:

It can create better customer experiences.

Under what circumstances would a company adopt a matrix organizational structure?

It frequently uses cross-functional teams.

Which of the following describes the functional organizational structure:

It includes traditional departments, such as sales and marketing.

What is management?

Management is the logical process of coordinating resources, such as money and employees, in order to accomplish an organization's goals.

Professional selling belongs in what career area?

Marketing

Which of the following is a career area in marketing:

Merchandising

Describe the functions of middle managers.

Middle managers serve as a link between top-level and first-line management, and they are responsible for implementing the goals set by top management. They actively plan, organize, and control various aspects of the business. The planning that middle managers do is more tactical in nature, meaning that they develop short-term plans to carry out within the next year in response to top management's decisions.

Amy is a manager at an advertising agency. She spends much of her time delegating and coordinating work among her employees. This is an example of what function of management?

Organizing

Which of the following is an element of any project:

Outcome

Caitlin is the manager for a busy accounting department and has decided not to replace the payroll specialist who recently resigned. She wants Martin, who currently handles the firm's accounts receivable, and David, the accounts payable clerk, to jointly take over the payroll-processing responsibilities. She also wants her assistant, Fiona, to take over some of Martin's and David's current tasks. What organizing activity is Caitlin performing?

Reallocating resources

What might happen if a business's managers do not put any time and effort into organizing?

Reduced productivity

Which of the following is a true statement regarding a project champion:

S/He can mobilize the necessary resources to get the project done.

Which principle of organizational design states that authority should flow in a clear, unbroken line from the top of an organization to the bottom?

Scalar principle

Which industry includes brokerage firms and stock exchanges?

Securities and investments

How can managers coordinate employees' activities?

Share organizational charts with them.

What is a question that a manager might ask when evaluating the effectiveness of organizing processes?

Should the company be restructured?

What is the directing management function?

The directing management function involves providing guidance to workers and work projects, as well as motivating and leading workers to accomplish the business's goals. Managers use their skills to develop a team spirit among employees and reward employees for their hard work.

Who are the people who work to produce a business's goods and services?

The people who work to produce a business's goods and services are the business's human resources.

Explain the planning management function.

The planning management function involves deciding what work will be done and how it will be accomplished. When managers plan, they identify the goals for the business, methods of achieving those goals, the resources required to carry out the plans, and target completion dates for tasks and projects.

Describe the management function of staffing.

The staffing function involves finding employees who know how to do the necessary work of the business. When managers conduct staffing, they identify the types of skills that employees need to have, develop ways to recruit and hire the most qualified people, assign new employees to specific work areas, determine compensation for workers, and decide what skills will be needed in the future.

Explain the three categories of skills that managers need to be successful.

The three categories of skills that managers need are: technical skills, interpersonal skills, and conceptual skills. Technical skills help managers to understand the technical aspects of the business. Managers need to be able to answer questions, give directions, and solve problems. To do this, they must understand various work processes, and they should know how to use the specialized tools required for these processes. Interpersonal skills help managers to communicate, interact, and build relationships. To do that, they need to treat employees fairly, listen to their concerns, and understand that employees are important for business success. And, managers must clearly communicate their ideas and expectations to employees so that the workers can be productive. Conceptual skills help managers to look at the organization as a whole and understand how the various parts of the organization are interrelated. Managers must also understand how the organization fits into its environment. Managers also need strong conceptual skills to think creatively and make wise decisions.

Explain the responsibilities of top-level management.

Top-level management is responsible for the operation of the entire organization. They set the organization's goals, communicate these goals to everyone else, conduct strategic planning, and monitor the business's performance.

Which of the following is a benefit of organizing:

Tracking, accountability, and growth

Brianna works for a marketing agency, and she is skilled at graphic design. She spends all of her time creating graphics, rather than working on any other aspects of the marketing campaign. Brianna is

a specialized worker.

An employee who answers phone calls and manages the office schedule works in

administrative services.

When a hurricane interrupted a business's new product development, the project team had a plan for getting things back on track. This is an example of how project management

allows employees to adapt to risk.

Projects are different from business operations because business operations

are permanent.

Organizing can help companies handle issues with __________ so employees know to whom to report and who is responsible for what.

authority

Mitch's boss placed him in charge of shipping at his company. Whenever anyone wants to ship a package, they need his approval and oversight. Mitch has

authority.

John has just been hired as a loan officer. His new career is in the area of

banking services.

A banking institution is well-suited for a divisional organizational structure broken down by

customer type.

The organizing function of management is important to a business because it

defines workplace roles and relationships.

Nadia gives her assistant permission to accept or deny meeting requests for her. Nadia is

delegating authority

Nathan is a project manager in charge of four other employees. He has divided up responsibilities and assigned them to specific team members to work on. This is known as

delegation

A company has a goal to launch a new product. After setting this goal, company management needs to

determine the work needed to accomplish it.

When managers are grouping related tasks into departments or teams, they are

determining the organizational structure.

At a hair salon, one employee washes customers' hair, another employee cuts it, and another dries and styles it. This allows the employees to make the most efficient use of their time and illustrates an organizational principle known as

division of labor.

A chain of command must have unity of command, which means that

employees should only report to one supervisor.

Yabbie's BBQ just hired several new staff members, so it decides to increase the number of managers working at once. This is an example of how

employees' competence affects organizing decisions.

Coordinating business activities is an important aspect of the organizing function of management because it

establishes clear relationships among the company's resources.

Nick is the CEO of a business. The vice presidents of marketing, product development, finance, and operations all report to him, and they each have their own teams made up of several employees. This is a __________ structure.

functional

An organization with a wide span of control usually

has a lack of middle managers.

Jared was just hired for a new job. The employee who interviewed him and took him through the hiring process works in

human resource management.

A small organization might need a(n) __________, whereas a large company might need a __________.

informal organizational structure; formalized, complex structure

Because of a business's organizational design, its employees are able to work together to come up with a brand-new product. The business's employees are engaged in

innovation.

The amount of teamwork included in an organizational design is often referred to as

lateral relations.

Katharine has just been hired as a brand manager at a retail chain. Her career is in the area of

marketing management.

Employees who look for meaningful clues about what customers want and why they want it work in

marketing research.

Bo's job is to choose and buy clothing for a retail store. His career is in the area of

merchandising

Brynn manages employees who are new on the job and need quite a bit of supervision. Therefore, she can only supervise a few employees at once. Brynn's span of control is

narrow.

Jill's company just took on a new project, and she knows that she needs to decide which staff members will be in charge of each aspect of the project. Jill is

organizing

Whenever clients arrive at the Skin Solutions Dermatology office, the receptionists struggle to find their records. Clients fill out multiple forms with the same information, and they wait a long time to be seen by a doctor. Skin Solutions is losing a lot of patients quickly. This is an example of how

poor organizing damages a company's reputation.

A manager worked to streamline the production process and was able to save the company several thousands of dollars. This is an example of how organizing

reduces waste and improves efficiency.

The project manager controls what the project will and will not do, known as the project's

scope.

Keri works as a public relations consultant for a large corporation. She reviews issues and makes recommendations to managers. Keri has __________ authority.

staff

Jon is always telling Petra what to do, but Petra doesn't know whether or not Jon is her superior. Petra's company needs

to implement the scalar principle.

A business creates an organizational design in which no employee has to report to more than one manager at a time. This is following an organizational principle called

unity of command.