Chapters 6-10 Test

Explain how delegating authority, responsibility, and accountability are related.

related.All of these are related, but there is a difference in the meaning of each of these words. Delegation of authority is the assigning of tasks to employees while giving them the power to make commitments, use resources, and take actions necessary to accomplish them. Responsibility is the obligation to carry out assigned tasks satisfactorily. Accountability is the answerability of a subordinate to a superior for the outcome of an assigned task.

Distinguish between centralization and decentralization. Under what circumstances is each appropriate?

A centralized organization is one in which top-level managers delegate very little authority to lower-level employees. A decentralized organization is one in which authority is delegated as far down the chain of command as possible. A centralized organization is appropriate when the decisions to be made are risky and when low-level managers are not highly skilled in decision making. Decentralization is appropriate when the organization operates in complex and unpredictable environments.

Describe some of the methods a firm may use to control inventory.

A firm may use a variety of methods to control inventory including economic order quantity (identifies the optimum number of items to order to minimize the costs of managing them), just-in-time inventory management (eliminates waste by using smaller quantities of materials that arrive "just-in-time" for use), and material-requirements planning (a planning system that schedules the precise quantity of materials needed to make the product).

In what industry would the fixed-position layout be most efficient? The process layout? The product layout? Use real examples.

A fixed-position layout uses a central location for the basic product, and all resources required to create the product are moved to that location. Students' examples will vary, but a bridge under construction would be one example of fixed-position layout.The process or functional layout organizes the transformation process into departments according to the type of work to be done. These organizations are known as intermittent organizations and deal with products of lesser magnitude than product organizations. They are able to create a product to a customer's specifications and produce relatively few units of each product. Students' examples will vary, but a factory that engages in printing activities would be one example of fixed-position layout. A product or line layout requires that the work of creating a product be broken down into activities or tasks requiring relatively short periods of time and be assigned to workers positioned along the line. The product moves from one worker to another and each one in turn performs the required tasks or activities. Organizations using this layout are known as continuous manufacturing organizations because once they are set up they run continuously, creating products with many similar characteristics. Students' examples will vary, but a company that makes plastic components would be one example of fixed-position layout.

What are self-managed work teams and what tasks might they perform that traditionally are performed by managers?

A self-managed work team is a group of employees responsible for an entire work process or segment that delivers a product to an internal or external customer. They might be given the authority to implement work decisions, especially when problems arise in the production process.

Besides collective bargaining and grievance procedures, what other alternatives are available to labor and management to handle labor disputes?

Both labor and management can use pressure tactics to resolve disputes. Although most labor disputes are handled through collective bargaining or grievance procedures, sometimes management or labor may resort to more drastic measures to achieve their objectives. Labor might use picketing or boycotts. Picketing is a public protest against management practices and involves union members marching—often waving antimanagement signs and placards—at the employer's plant or worksite. Boycotts are an attempt to keep people from purchasing the products from a company. The most effective weapon wielded by unions against management is the strike. Striking makes carrying out the normal operations of a business difficult or impossible. A lockout is management's version of a strike; management actually closes down the workplace so the employees cannot work. Strikebreakers are people hired by management to replace striking employees; they're sometimes called scabs. Sometimes a third party may be brought in to aid in conciliation, mediation, or arbitration.

Identify four types of departmentalization and give an example of each type.

Departmentalization is grouping jobs into working units usually called departments, units, groups, or divisions. Functional departmentalization is the grouping of jobs that perform similar functional activities, such as finance, manufacturing, marketing, and human resources. Product departmentalization is grouping jobs around the products of a firm. Geographical departmentalization is grouping jobs by geographic location, such as country, region, or an even smaller area. Customer departmentalization is grouping jobs around the needs of various types of customers, which allows an organization to respond to the needs of each group of customers. (Examples of these departmentalization types will vary according to the examples given by students).

What activities are involved in acquiring and maintaining the appropriate level of qualified human resources? Name the stages of the selection process.

Human resources managers are concerned with maximizing employees' satisfaction and improving their efficiency to meet organizational objectives. Human resources managers are involved with planning and forecasting, recruitment and selection, training and development, and determining compensation. The selection process includes an application, interview, testing, and reference checking.

What are Herzberg's hygiene and motivational factors? How can managers use them to motivate workers?

Hygiene factors relate to the work setting—not work content—and include adequate wages, comfortable working conditions, fair company policies, and job security. Motivational factors relate to the content of the work and include achievement, recognition, the work itself, involvement, responsibility, and advancement. Managers must make certain that hygiene factors are present or workers will become dissatisfied and possibly leave. They can motivate workers by providing motivational factors.

Explain the difference between groups and teams.

In a group, two or more individuals communicate with one another, share a common identity, and have a common goal. The purpose of the group is the same as the broader organizational mission, whereas the team has a specific purpose that is defined by the team itself. The leadership roles in the team are shared, and both the team members and the whole team are accountable for the results of their work. In a group, the leadership is clearly focused on one person; thus, each individual is accountable.

What is flexible manufacturing? How can it help firms improve quality?

In flexible manufacturing, computers direct machinery to adapt to different versions of similar operations. This can help the firm improve quality because one machine can be programmed to carry out its function for several different versions of an engine. This eliminates the need to shut down the production line to refit the machine.

What was the goal of the Hawthorne studies? What was the outcome of those studies?

In the Hawthorne studies, Elton Mayo and a team of researchers tried to determine what physical conditions in the workplace, such as light and noise levels, stimulate employees to be most productive. Their studies revealed that social and psychological factors significantly affect productivity and morale.

Distinguish among job analysis, job descriptions, and job specifications. How do they relate to planning in human resources management?

Job analysis is observing the specific tasks that make up a job; the skills, knowledge, and abilities needed to perform it; and the job environment. A job description is a formal, written description of a specific job. A job specification is a description of the qualifications necessary for a specific job. Employment analysis establishes the general personnel requirements of the business. Next, managers analyze the jobs within the organization to match the human resources to the available jobs.

Why is management so important, and what is its purpose?

Management is the process of coordinating human, physical, and financial resources to achieve an organization's objectives. Management is important because people in an organization must work together to achieve some stated or implied objective. Management takes place in any organization calling for the coordination of resources.

Why do managers need to understand the needs of their employees?

Managers need to understand the needs of their employees because in an organizational setting individuals and groups need to be satisfied in order to achieve organizational goals. Human relations is concerned with the needs of employees, their goals, and the impact of these needs and goals on job performance. Social and psychological factors significantly affect productivity and morale. Managers who understand employees' needs, beliefs, and expectations are most successful in motivating them.

Compare and contrast a manufacturer versus a service provider in terms of operations management.

Manufacturers and service providers both must schedule and control operations as well as allocate necessary resources. However, though manufacturers and service providers often perform similar activities, they differ in the following five basic ways: (1) nature and consumption of outputs, (2) uniformity of inputs, (3) uniformity of outputs, (4) labor requirements, and (5) measurement of productivity.

Why are motivational strategies important to both employees and employers?

Motivation can foster employee loyalty and boost productivity. It affects all relationships within an organization and influences many areas, such as pay, promotion, job design, training opportunities, and reporting relationships. Motivating employees is important for organizations seeking to remain competitive in the global marketplace.

Describe the motivation process.

Motivational factors relate to the content of the work and include achievement, recognition, the work itself, involvement, responsibility, and advancement. These factors promote higher levels of performance.

What is operations management?

Operations management is the development and administration of the activities involved in transforming resources into goods and services.

Define span of management. Why do some organizations have narrow spans and others wide spans?

Span of management is the number of subordinates who report to a particular manager. A wide span of management exists when a manager directly supervises a large number of employees. A narrow span of management exists when a manager directly supervises only a few subordinates. The nature of spans of management in a company depends on the physical distance between managers and subordinates, on the managers' responsibilities other than supervision, and on the degree of interaction required between managers and subordinates. Other factors include the frequency of problems, the competence of subordinates, and the existence of specific operating procedures.

Define supply chain management and summarize the activities it involves.

Supply chain management refers to connecting and integrating all parties or members of the distribution system in order to satisfy customers. It includes all the activities involved in obtaining and managing raw materials and component parts, managing finished products, packaging them, and getting them to customers. Its primary activities include purchasing, managing inventory, and scheduling.

How have technological advances made electronic oversight a necessity in many companies?

Technological advances as alternatives to face-to-face communication have caused problems as employees face information overload. Electronic oversight is necessary in many companies to insure that employees use technology appropriately and efficiently.

In what areas can managers specialize? From what area do top managers typically come?

The areas of management include financial management, production and operations management, human resources (personnel) management, marketing management, information technology management, and administrative management. Financial managers deal primarily with an organization's financial resources. Production and operations managers are concerned with the transformation of an organization's resources into goods, services, and ideas. Human resources managers deal with employees in a formalized manner as related to hiring, training, and benefits. Marketing managers are responsible for planning, pricing, and promoting products and making them available to customers. Information technology managers deal primarily with establishing, maintaining, and controlling computer networks. Administrative managers do not specialize in any particular area but manage an entire business or major segment of a business.

Name the five functions of management and briefly describe each function.

The five functions of management include planning, organizing, staffing, directing, and controlling. Planning is the process of selecting a course of action to achieve organizational objectives. Organizing consists of structuring all resources and activities to accomplish objectives in an efficient and effective manner. Staffing is hiring people to carry out the work of the organization. Directing is motivating and leading employees to achieve organizational objectives. Controlling is evaluating and correcting activities to keep the organization on course.

What criteria do businesses use when deciding where to locate a plant?

The following factors are considered for plant location:a. Proximity to marketb. Availability of raw materialsc. Availability of transportationd. Availability of powere. Climatic influencesf.Availability of laborg. Community characteristicsh. Taxes and inducements

Who is involved in planning products?

The functions involved in planning products include research, engineering, and operations management. In larger corporations, these functions may be separate departments; however, in smaller companies, one or two individuals may be responsible for all planning functions. It is important to have every part of a firm involved in planning products to ensure that they not only satisfy customers but also allow a firm to achieve its objectives.

Discuss the role of the grapevine within organizations. How can managers use it to further the goals of the firm?

The grapevine is an informal channel of communication, separate from management's formal, official communication channels. Astute managers try to identify informal leaders to gain their support for the organization's objectives. Managers can use the grapevine to their advantage, feeding it facts to squelch rumors and incorrect information. They can also obtain valuable facts from the grapevine to improve decision making.

What is the significance of a performance appraisal? How do managers appraise employees?

The performance appraisal is identifying an employee's strengths and weaknesses on the job. It is one of the most difficult tasks for managers. It provides employees with feedback on how they are doing and what they need to do to improve their performance. It provides a basis for determining how to distribute rewards. It provides the organization with information about the quality of its selection, training, and development activities. Appraisals can be objective or subjective. Whether objective or subjective, the manager uses the performance appraisal to discuss the results with the employee.

Discuss the different forms of organizational structure. What are the primary advantages and disadvantages of each form?

The process of delegation establishes a pattern of authority and accountability, often called bureaucracy, within the organization. Various forms of bureaucracy include line structure, line-and-staff structure, and matrix structure, as well as committees. A line structure is based on direct lines of authority that extend from the top executive to employees at the lowest level of an organization. This structure provides a clear chain of command, but it also requires managers to possess a wide range of knowledge. In the line-and-staff structure there is a line relationship between superiors and subordinates, and line departments are directly involved in the operation of the organization. Specialized managers, called staff managers, are available to assist line managers. The matrix structure involves setting up teams from different departments and creating two or more intersecting lines of authority. The matrix structure improves cross-pollination of ideas but is generally temporary.

What is the role of benefits? Name some examples of benefits.

The role of benefits is to attract and help retain employees, increase employee security and, to a certain extent, increase morale and motivation. In addition, utilization of the benefits may keep employees healthy and productive, thereby reducing absenteeism, waste, and turnover. Some examples of benefits include pension plans, holidays, health programs, employee assistance programs, health insurance, and so forth.

Identify the three levels of management. What is the focus of managers at each level?

The three levels of management include top management, middle management, and first-line management. Top management includes the president and other top executives who have overall responsibility for the organization. Middle management includes plant managers, division managers, and other managers who have a narrower focus under top managers. First-line management includes all the managers who supervise workers. These managers are involved in the everyday operations of the organization.6

Contrast the assumptions of theory X and theory Y. Why has theory Y replaced theory X in management today?

Theory X assumes that (1) workers do not like work and will avoid it when possible; (2) workers must be coerced, controlled, directed, or threatened with punishment to get them to work toward achievement of organizational goals; and (3) workers prefer to be directed, prefer to avoid responsibility, want security, and have little ambition.By contrast, theory Y assumes (1) the expenditure of physical and mental effort and work is natural; (2) workers will exercise self-direction and self-control in the service of objectives to which they are committed; (3) workers will commit to objectives when they realize that achievement to those objectives will bring about their personal reward; and (4) workers will accept and seek out responsibilities.Probably the main reason theory Y has supplanted theory X is that managers had determined that theory X management styles did not lead to improved productivity. Also, many organizations have studied the success of the Japanese in worker productivity. The Japanese had long ago dropped theory X management styles.

What is theory Z? How can businesses apply theory Z to the workplace?

Theory Z stresses employee participation in all aspects of organizational decision making. This theory includes many elements of the Japanese approach to management. Theory Z is less formal and more personal, work relationships are long term, there is less specialization, there is more group decision making, control is more informal, and managers focus on the worker's whole life. Businesses wishing to apply theory Z have to change to a more participative, employee-involved, or work-team oriented program. This means dropping old traditional manager-employee management styles. For theory Z to work, management must be committed to employee involvement.

What are three styles of leadership? Describe situations in which each style would be appropriate.

There are three styles of leadership: autocratic, democratic, and free-rein.Autocratic leaders make all decisions and then tell employees what must be done and how to do it. Autocratic leaders work best when dealing with lower-level employees who are poorly motivated and require more supervision to accomplish the task. Democratic leaders allow their employees to get involved in decision making. Democratic leaders work well in organizations that allow people to participate in decisions, such as accounting firms, consulting agencies, middle- and upper-management areas, or corporations. Free-rein leaders let their employees work without much interference. Free-rein leaders work well in research and development firms where employees are highly educated and need freedom to conduct research projects.

What is the mathematical formula for perfect management? What do managers spend most

There is no mathematical formula for perfect management. Most management decisions are largely subjective.Most managers spend as much as 75 percent of their time working with others. They also spend a lot of time establishing and updating an agenda of goals, networking with their colleagues, and confronting the complex and difficult challenges in the business world today.

What are the two types of training programs? Relate training to kinds of jobs.

Training is teaching employees how to do their job; development is teaching managers and professionals how to perform their jobs. On-the-job-training allows workers to learn by actually performing the task on the job under the guidance of an experienced employee. Classroom training consists of lectures, conferences, films, case studies, and other classroom teaching techniques to teach employees about a job and its requirements.

Why does turnover occur? List the types of turnover. Why do businesses want to reduce turnover due to separations?

Turnovers can occur because they are initiated by the employer or by the employee. Sometimes the turnovers, especially layoffs, are initiated because of economic downturns. The types of turnover include promotions, transfers, and separations. Promotion is advancement to a higher level job with increased authority, responsibility, and pay. A transfer is a move to another job within the company at essentially the same level and wages. Separations include resignation, discharge, layoff, and retirement. Businesses want to reduce turnover due to separation because selection and training of new employees is an expensive and time consuming process.

Discuss how an organization's culture might influence its ability to achieve its objectives. Do you think that managers can "manage" the organization's culture?

When an organization's culture consists of values shared by all members of the organization, results can be positive as all members work toward shared objectives. Managers can "manage" an organization's culture by establishing values and rules through authority, partly in organizational and policy manuals, and by example. The manager's awareness of a company's culture is management's strongest tool in dealing with problems and weaknesses.

When might a firm decide to inspect a sample of its products rather than test every product for quality?

Whether to inspect 100 percent of the output or only part of it is related to the cost of the inspection process, destructiveness of the inspection process, and the importance of the item to the safety of consumers or others. The greater the cost and the more destructive the inspection process, the more likely the firm is to use sampling techniques. However, the more important an item is to the safety of consumers or others, the more likely the firm is to examine all items.

Identify and describe the job-design strategies.

strategies.There are several strategies managers may use to structure jobs to promote employee motivation.a. Job rotation allows employees to move from one job to another in an effort to relieve boredom associated with specialization.b. Job enlargement involves adding tasks to a job instead of treating each task as a separate job.c. Job enrichment involves achievement, recognition, responsibility, and advancement into the job situation.d. Flexible scheduling strategies involve deviations from the traditional 40-hour work week consisting of five 8-hour days with fixed starting and ending times.

Explain Maslow's hierarchy of needs. What does it tell us about employee motivation?

Abraham Maslow theorized that human beings have five basic needs: physiological, security, social, esteem, and self-actualization. Maslow's hierarchy arranged these needs in the order in which people strive to satisfy them. Maslow's theory suggests that employees will be motivated to contribute to organizational goals only if they are first able to satisfy their physiological, security, and social needs through their work.

Explain why the American Heart Association would need management, even though its goal is not profit-related

All organizations, whether profit or nonprofit organizations, are involved with the process of coordinating human, physical, and financial resources to achieve their objectives. Managers and employees of nonprofit organizations work together to achieve the objectives of their organizations.

Why must a company have financial resources before it can use human and physical resources?

An organization must have financial resources in order to purchase human resources (hire people) and to purchase physical resources.

Describe the negotiation process through which management and unions reach an agreement on a contract.

Collective bargaining is the negotiation process through which management and unions reach an agreement about issues such as compensation, working hours, and working conditions. The union prepares a list of concessions that it wants from management; management defines what it is willing to concede to the union and still maintain a reasonable level of profitability. Management tries to maintain control over work schedules, the hiring and firing of workers, production standards, and other work policies. Unions tend to focus on issues such as magnitude of wages; better pay rates for holidays; overtime; undesirable shifts; scheduling of pay increases; and benefits. After union representatives and management negotiate issues and reach agreement on terms of a contract, union members vote on the contract. If they ratify the contract, it becomes the legally binding agreement for union and management for a specified period.

Explain the steps in the decision-making process.

Decision making is a six-step process that occurs at all management levels. The first step involves recognizing and defining the situation. Step two involves developing possible courses of action, both standard and creative ones. Step three involves analyzing the feasibility, appropriateness, and consequences of each option. Step four involves selecting the best option from the list of options. The decision is implemented in step five. Step six requires the monitoring of the decision's consequences. These steps in decision making should be viewed only as a broad framework to help people in their approaches to decision making.

Name and describe some flexible scheduling strategies. How can flexible schedules help motivate workers?

Flexible scheduling strategies include:a. Flextime—allows employees to choose their starting and ending times as long as they are at work during a specified core period.b. The compressed workweek—a four-day (or shorter) period in which an employee works 40 hours.c. Job sharing—when two people do one job.A business may use flexible scheduling strategies to accommodate the needs of employees (students or parents, for example) as well as to motivate them. Alternative schedules may be needed to survive tough economic times.

Relate wages, salaries, bonuses, and benefits to Herzberg's distinction between hygiene and motivation factors. How does the form of compensation relate to the type of job?

Frederick Herzberg's theory of motivation focused on job factors, as discussed in Chapter 9. Hygiene factors relate to the work setting and include adequate wages, comfortable working conditions, fair company policies, and job security. Motivational factors relate to the content of the work and include achievement, recognition, the work itself, involvement, responsibility, and advancement. It should be obvious to students that adequate wages, salaries, and benefits are necessary hygiene factors for employees.In general, salaries are associated with white-collar workers such as office personnel, executives, and professional employees. Time-based wages are associated with blue-collar workers, clerks, maintenance personnel, and so forth. Finally, piece-based wages are associated with skilled craftworkers, while commissions are associated with certain types of sales positions.

Differentiate among the terms operations,production, and manufacturing.

Production and manufacturing are used interchangeably to represent the activities and processes used in making tangible products. Operations is a broader term, describing those processes used in the making of both tangible and intangible products.

What skills do managers need? Give examples of how managers use these skills to do their jobs.

Skills needed by managers include leadership, technical expertise, conceptual skills, analytical skills, and human relations skills. Leadership is the ability to influence and motivate employees to work toward the achievement of organizational goals. Technical expertise is the specialized knowledge needed to perform a job, such as managing an auto production line. Conceptual skills are the ability to think in abstract terms so that a manager can fit parts together to form a whole perspective of a business operation. Analytical skills are the ability to identify relevant issues and recognize their importance, understand the relationships between them, and perceive their underlying causes. Human relations skills involve dealing with people both inside and outside the organization.

What are the benefits associated with a diverse workforce?

Some of the benefits of work-force diversity include a more productive use of a firm's human resources, reduced conflict among employees, increased attention to organizational goals, increased innovation and creativity in decision making and problem solving, and greater ability to serve a diverse customer base.