Business test 2

An advertising agency that has separate departments for artwork, creative design, print advertising, radio advertising, television advertising, and specialty advertising is using _____ departmentalization.

Functional

Which of the following statements describes one the strengths of group decision making?

Group decision making results in a higher-quality decision then individual decision making.

_____ is at the core of most business failures.

Inadequate Planning

Which of the following is NOT one of the five key types of power?

Influential

One of the disadvantages of the matrix structure is:

Lack of Cohesiveness

Two co-workers at Nortel came up with an idea for renting software over the Internet. Nortel's top management liked the idea and set up a special division called Channelware devoted to taking the idea and making a new product. The establishment of a new company and assigning the employees in the division the task of making an idea a reality requires which management function?

Organizing

_____ involves coordinating and allocating a firm's resources so that the firm can carry out its plans and achieve its goals.

Organizing

When nurses at Children's Memorial Medical Center were asked what makes a great place to work. They responded with, "Great places to work have leaders that listen to staff feedback and act upon it. At great places to work, staff value developing their job expertise, actively support teamwork, are passionate about providing quality service, and are not afraid to take risks and try innovative approaches. Mutual respect is the interpersonal chemistry that produces a collegial environment that inspires excellence at great places to work." From this information, it appears that the nurses would also appreciate a _____ approach to management.

Theory Y

Wes Johnston overheard his manager say, "Work is as natural as play, and workers seek more job responsibility." This statement supports:

Theory Y assumptions

_____ is financing obtained from investment firms that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money.

Venture Capital

In buying an existing business, the prospective buyer should ask questions about the operation of the business. Which of the following would be an inappropriate question to ask?

What are you going to do with the down payment?

_____ is responsible for identifying the Theory Z style of management.

William Ouchi

Frederick Taylor's scientific management emphasized:

Work Efficiency

The difference between small business owners and entrepreneurs is that small business owners:

accept the status quo and take a short-term view of the future

A group of management consultants is studying OGSI Manufacturing and its team management strategy. Once Pete Jazoni's work group was selected for special attention by the management consultants, the work group's production output nearly doubled. Jazoni's group's reaction to the special attention is an example of:

the Hawthorne effect

_____ are groups of employees who share resources and coordinate efforts so as to help members better perform their individual duties and responsibilities. The performance of this group can be evaluated by adding up the contributions of the individual group members.

Work Groups

The first step in starting your own business is:

A self assessment

_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.

Angel Investors

When he read Chicken Soup From the Soul, Joe Farmer was struck by how many of the stories mentioned the scent of the islands. So Farmer created bottles filled with Hawaiian air and some scented essence beads. When customers shake the bottles up and open the lids, they're transported back to paradise. While many marketing experts did not think that consumers would buy bottles of air, Farmer has earned more than half a million dollars of sale during his first year of operation. Farmer was an example of a _____ entrepreneur.

Classic

Airline stewards in China will remove someone from the plane if they attempt to bring their own food with them. Instead, passengers must buy the food sold on the plane. The stewardesses have been given _____ power to deal with passengers who won't obey the rules.

Coercive

Jack Welch, former CEO of General Electric, was known by his employees as "Bloody Jack" because of the downsizing and restructuring he insisted the company do if its various departments were unable to achieve organizational goals. Knowing this nickname, you can assume that Welch used _____ power to accomplish his goals for GE.

Coercive

Which of the following statements about the committee structure is true?

Committees can be slow to reach a decision

A large furniture and appliance rental business is considering sponsorship options. It has brought together vice-presidents from the various functional areas of the company to determine which sponsorships will most effectively reach the rental company's prospective customers. The rental company has established a:

Cross functional team

American Express is organized into four divisions that cater to businesses, consumers, travelers, and investors. American Express uses _____ departmentalization.

Customer

A supervisor engaged in ______ is grouping people, tasks, and resources into organizational units to facilitate the planning, leading, and control processes.

Departmentalization

Once Arnold Patel had decided he wanted to quit working as a Web designer for a large advertising agency and go into some kind of business for himself, he did a self-assessment, which indicated that he had an entrepreneurial spirit. His next step will be to:

Look for customers

_____ is the process of guiding the development, maintenance, and allocation of resources needed to attain organizational goals.

Management

Plant manager Peter Kwillen receives the master budget from divisional headquarters and breaks it down for the three shift managers. He coordinates with other plant managers and manages lower-level managers. Kwillen is a(n) _____ manager.

Middle

A _____ is a formal written statement that describes in detail the idea for a new business and how it will be carried out.

Mission Statement

The world's largest bank. Deutsche Bank set as its objective to make its name more recognizable in the United States. The success of its decision to sponsor a PGA golf tournament to accomplish this organizational objective will ultimately depend on which management function?

Planning

Kohber is a Swiss-company that makes medical equipment. It recently purchased a company, which manufactures packaging for high-value drugs. Since it will run the packaging company as a separate division, it would seem that Kohber is departmentalized by:

Product

Another name for the matrix structure is the:

Project Management Approach

Many organizations that experienced success using problem-solving teams expanded the team concept to allow team members to have greater responsibility in making decisions, implementing solutions, and monitoring outcomes. These highly autonomous groups are called:

Self Managed Work Teams

The difference between the small business owner and the entrepreneur is that the entrepreneur:

assumes the risk of the business

Mark Ghermizian had quit his job and was looking to start a small business so he could be his own boss. When he read that people spend up to fifteen minutes every day staring at a bathroom stall door, he decided he would find advertisers who wanted to pay to have their advertising messages on bathroom stall doors. Since he has his idea, Ghermizian's next step is to:

choose a form of business organization

The disadvantages of group cohesiveness include:

conflict with other work groups in the organization

As a believer in the Theory Y style of management, Stacey Lovett believes in all of the following EXCEPT:

constant and close supervision

A business plan:

describes in detail the idea for the new business and how it will be carried out

According to Theory X, workers _____ their work.

dislike every facet of

Medical diagnostic equipment specialist Georgiana Rutland was asked to attend a medical conference in which the attendees discussed new uses for laser technology in diagnosing certain types of cancer. Rutland exerted considerable influence over the decisions to adopt the laser technology because of her _____ power.

expert

Once the business plan is finished, the next step is to:

find financing for the business

A team made up of employees from about the same hierarchical level, but different functional areas of an organization is called a:

horizontally-organized team

One criticism of Herzberg's motivator and hygiene theory is that it:

ignores the impact of situational variables

A Theory X manager would assume his or her workers are:

lazy employees who can't be trusted

The Theory Z style of management emphasizes:

long-term employment

Both Kennedy and LaGuardia Airports have established airport management committees. These structures are advantageous because it:

makes the coordination of activities much easier

A common use of business plans is to:

persuade lenders and investors to finance the venture

Which of the following is NOT a need identified in Maslow's hierarchy of needs?

psychological needs

Which of the following is NOT an example of a hygiene factor?

recognition

In Herzberg's model, which of the following would be an example of a motivating factor?

responsibility

Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. Its primary challenge will be to convince the 2,000 employees it inherited from the government-owned facility to work more efficiently. Manila Water sought to boost employee morale by linking pay to performance. In other words, management has used its _____ power to improve employee productivity.

reward

Which of the following is NOT an example of a job satisfier?

salary and fringe benefits

A manufacturing company in which industrial engineers have maximized efficiency by determining the best way to perform every task from tightening a bolt to operating a forklift would be illustrative of:

scientific management

In Herzberg's model, which of the following would be an example of a hygiene factor?

supervision

An article on the health care industry revealed several assumptions that health care administrators have adopted during the last decade. The administrators assume their (1) employees have several interests other than work and will work only to the degree necessary. (2) employees will accept additional responsibilities only if they receive rewards, and (3) employees exhibit little loyalty and will leave employment for reasons that are in their short-term interest. These assumptions lead support to the _____ approach to management.

the Theory X style of management

Safeway Stores has installed dashboard computers in their trucks to monitor the delivery truck drivers as they work their routes. Safeway is checking on drivers to make sure they are working. This mistrust of employees derives from trust in the veracity of:

the Theory X style of management

Elton Mayo, America's first industrial psychologist, was responsible for formulating:

the explanation of the Hawthorne effect

Division of labor refers to:

the process to dividing work into separate jobs

According to the Hawthorne effect,:

workers respond to being paid attention to

Two co-workers at Nortel came up with an idea for renting software over the Internet. Nortel's top management liked the idea and set up a special division called Channelware devoted to taking the idea and making a new product. The ability of the Nortel top management to create this new division and assign employees to it is a result of their having _____ power.

Legitimate

Dean Jager is the supervisor of the volunteer staff at the Booth Western Art Museum. He makes the work assignments, determines work schedules, and makes sure the museum uses all its volunteer staff efficiently. Jager is involved in _____ planning.

Operational

A(n) _____ is a picture of the relationships among tasks and those employees given authority to do those tasks.

Organization chart

The Austrian-company Wienerberger is the world's largest brickmaker. It had to use the management function of _____ when it integrated the employees and manufacturing facilities that it gained from a merger with a brickmaking company in Great Britain.

Organzing

_____ planning is the creation of long-range, comprehensive objectives and the development of long-term courses of action.

Strategic

_____ planning is short-range, detailed planning that is based on long-range planning. It typically has a time frame that is less than one year long.

Tactical

Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. Its primary challenge will be the management function of ____ because it needs to convince the 2,000 employees it inherited from the government-owned facility to work more efficiently.

Leadership