D073

Marney budgeted advertising expenses to increase beyond what was spent in the previous year. She believes that if she increases spending by 20%, she will be able to increase sales by 5%. She has not done any research to arrive at this decision but believes strongly that it is the correct way to proceed. Which statement is correct about this approach? - She is the sales manager and knows the market best. - She is ensuring that the company meets its financial goals. - She is understating the incremental sales increase. - She is making an assumption without any proof.

- She is making an assumption without any proof.

Transactional Theories

-people are motivated by rewards and punishments -leader delegates task -followers complete task based on reward system

Income Statement

A financial statement showing the revenue and expenses for a fiscal period.

balance sheet

A financial statement that reports assets, liabilities, and owner's equity on a specific date.

Great Man theory of Leadership

A nineteenth-century theory that states that history is largely explained by the impact of great men or heroes and their superior intellect and attributes.

portfoloio

A range of investments or business held by an organization or person

Just in case (JIC)

A situation where a company keeps a small stock of components (or complete items) or ones that take a long time to make, just in case of a rush order.

Corporate Strategy

A strategy that determines the means for utilizing resources in the various functional areas to reach the organization's goals. There are four components: allocation of resources, organizational design, portfolio management, and strategic trade-offs.

To ensure a productivity goal is met, a manager provides new computers and software updates for all employees in the company. Which aspect of a SMART goal is reflected by this manager's action? Time-bound Operational Strategic Achievable

Achievable: When setting achievable SMART goals, it is important to make sure that the resources needed to accomplish a task are available to the employees.

The VP understands that the managers will not be able to resolve their conflict during the staff meeting, so the VP invites the two managers to dinner the following evening at a restaurant of their choosing to further discuss the situation. How is the VP mitigating this conflict situation? Achieving individual and shared needs Clarifying perceptions Identifying a neutral meeting location Parting on good terms

Achieving individual and shared needs

Two people own and operate a family business but have historically failed to share a common vision for the company. One individual wants to expand the business into other areas while the other wants to focus on improving customer service. The business has suffered due to this ongoing conflict. Which action should the owners take to resolve this conflict? Identify which owner was responsible for past problems Address the issue and agree on how to move forward Hire attorneys to represent each owner's legal interests Focus on individual owner's needs and prioritize them

Address the issue and agree on how to move forward

An individual working in a university admissions office complained to the supervisor about one of the long-time employees not doing their share of the work. The supervisor investigated the situation and found no productivity or work-related problems. What type of conflict does this situation represent? Value Affective Constructive Leadership

Affective

Which organizational characteristic affects a company's ability to rapidly change its processes? Mindfulness Hierarchy Agility Collaboration

Agility

Corporate Allocate resources Create Economies of Scales Offer Goods that are cost-driven Specialize in one product or service

Allocate resources

Chief marketing officer (CMO), Cynthia Troutman, was tasked with developing and communicating a marketing brand to win over new customers for the new rechargeable battery. Which managerial attribute should she use to successfully complete this assignment on this tight timeline? Creating vision Eyeing the horizon Taking on risk Allocating proper resources

Allocating proper resources

Use humor when appropriate

Allows people to distance themselves emotionally from the conflict

Just-in-time (JIT)

An inventory-management approach in which supplies arrive just when needed for production or resale

lean organization

An organization that understands what customers want, identifies customer value by analyzing all activities required to produce products, and then optimizes the entire process from the customer's perspective.

PESTLE analysis

Analysis of the external political, economic, social, technological, legal and environmental factors affecting a business

Scope of Change

Any change to the project scope. A scope change almost always requires an adjustment to the project cost or schedule.

Two employees are working on the same project and are involved in a serious argument about the matter. Their manager intervenes to address the conflict. How should further discussion about this issue be handled? At a later date During the regular staff meeting As soon as possible In one of the professional's offices

At a later date

Which management style is likely to alienate employees? Laisse-faire Authoritarian Persuasive Democratic

Authoritarian

Which guideline is necessary to follow when writing a precise job description? Be specific about the qualifications and experience required Provide information on the associated salary and benefits Include trends for related positions Include general terminology regarding roles and responsibilities

Be specific about the qualifications and experience required

A manager makes time during monthly staff meetings to talk about the company's vision. The manager's enthusiasm inspires staff to exceed their duties. Which leadership attribute is this manager displaying? Setting objectives Being an influencer Implementing plans Reducing risks

Being an influencer

Executive team members in a computer chip company have differing opinions on subjects ranging from solving quality control problems to changing supply sources. This type of conflict is encouraged as long as the interaction does not disrupt teamwork. Why does the company permit this situation to occur? Improved leadership skills Less work force turnover Better management decisions Fewer process changes Previousquestion

Better Management decisions

What do job costing and process costing for projects have in common? Both are for different jobs with varied production requirements. Both are for a single long-term product. Both have predetermined overhead rates. Both have costs accumulated by department.

Both have predetermined overhead rates.

The frontline employees of a manufacturing company have developed a list of environmentally friendly practices they would like to see the company adopt. They have presented this list to executive leadership during a board meeting. Which approach to change is being used by this company? Incremental Top-down Bottom-up Immediate

Bottom-up

The chief information officer (CIO) for a credit union is planning to make sweeping changes to the network infrastructure and the software used to manage banking. The CIO wants the new technology to be accepted as widely as possible throughout the organization by reducing employee resistance to change. Which result is this CIO attempting to achieve? Input Buy-in Consensus Feedback

Buy-in

Chief marketing officer (CMO), Cynthia Troutman, is setting SMART goals for developing the new marketing brand for Sure Start. One of the goals involves increasing new customers for the rechargeable electric batteries. Which SMART goal should be used to obtain this result? By the end of the calendar year, buy placement in the top auto industry print publications in U.S., German, and Chinese markets Increase the number of new customers who have heard of Sure Start's rechargeable electric battery through advertising and promotion Send out emails to the top auto manufacturers worldwide to promote the new electric battery product line as an eco-friendly choice Advertise in magazines in all of the countries where Sure Start wants to attract new automotive customers and offer discounts

By the end of the calendar year, buy placement in the top auto industry print publications in U.S., German, and Chinese markets Increase the number of new customers who have heard of Sure Start's rechargeable electric battery through advertising and promotion

Carl Spith (COO) was tasked by Charlie (CEO) to relocate to Vietnam to open an office there and eventually to manufacture batteries within that country. How is Carl's power to manage others different than Charlie's power to lead? Charlie's power is based on his use of authority to get compliance. Charlie's power comes from his appointment to his position. Carl's power is derived from his ability to persuade others to follow him. Carl's power comes from his position within the hierarchy of the organization.

Carl's power comes from his position within the hierarchy of the organization.

Which conflict management style is expected when an individual averages high on both dimensions of the Thomas-Kilmann Index (TKI)? Competition Collaboration Avoidance Accommodation

Collaboration

Which conflict management style ranks high in assertiveness and cooperation? Avoiding Collaborative Competing Accommodating

Collaborative

Sure Start needs to achieve success as it makes changes to its company structure. What is one thing Charlie and his leadership team need to do to meet this goal? Communicate effectively with all stakeholders Adopt change management methods used by competitors Keep any negative information from employees Set clear consequences of what happens if employees fail

Communicate effectively with all stakeholders

A company has hired an organization development (OD) consultant to work with the internal managers to effect a significant change in organizational culture. Which technique increases the chance of success? Launching directly into the new culture to minimize organizational stress for employees during the change process Building a change plan with select employees to reduce internal stress before announcing changes at a company-wide meeting Communicating the change so that employees are fully informed of the plan prior to implementation Developing a plan to help those employees who resist change to find a new job role

Communicating the change so that employees are fully informed of the plan prior to implementation

During a weekly staff meeting, the manager of the loading department complains that his department is not being staffed as well as the unloading department and this is the cause of their struggles. This elicits a response from the unloading department manager that he has the same staffing needs but has been able to get more from his employees. Which of the five basic conflict management strategies is the load manager demonstrating by this response? Accommodating Avoiding Collaborating Competing

Competing

Which external force motivates a fast food restaurant chain to initiate a change project? Competitor adds healthy menu items that will attract customers State worker compensation rates decline due to fewer accidents The Board of Directors conducts a nationwide search for a new president Food service employees reach out to the local union for organizing information

Competitor adds healthy menu items that will attract customers

Which external force motivates a fast food restaurant chain to initiate a change project? Food service employees reach out to the local union for organizing information Competitor adds healthy menu items that will attract customers The Board of Directors conducts a nationwide search for a new president State worker compensation rates decline due to fewer accidents

Competitor adds healthy menu items that will attract customers

The chief operating officer (COO) of an organization understands how the various parts of the system are interdependent. The COO also recognizes how the smooth operation of the organization produces value for customers. Which type of leadership skill is being illustrated by this COO? Technical Interpersonal Conceptual Problem-solving

Conceptual

When the plans for producing the new rechargeable electric battery in Vietnam were announced, the first shift supervisor for shipping in North Carolina quickly jumped to the conclusion that all battery production was being sent to Vietnam and that the facility in North Carolina would close. What type of bias is being exhibited by this supervisor? Causality Self-serving Framing Confirmation

Confirmation

During which stage of project management are success factors identified? Estimating the resources needed Developing detailed implementation plans Considering constraints on time, money, and resources Defining the project and list all necessary tasks

Considering constraints on time, money, and resources

Which aspect of project management requires identifying limits or risks to the project? Plans Constraints Definition Estimation

Constraints - Project constraints explain what limits or risks are associated with the project. For example, an economic downturn could result in customers spending less on a company's product, which presents a risk to a company that is investing in producing a new product.

The success of a company stems from their ability to create strong economies of scale and use efficient operations. Which competitive operational strategy is this company employing? Differentiation Speed to market Cost leadership Market varuation

Cost Leadership

An organization has decided to use economies of scale to gain a competitive advantage. Which competitive strategy is this organization using? Differentiation strategy Cost leadership Customer driven Mark segmentation

Cost leadership

Which strategy describes a company singularly focused on achieving economies of scale? Differentiation Customer-driven Cost leadership Market segmentation

Cost leadership

core competencies Allocate resources Create Economies of Scales Offer Goods that are cost-driven Specialize in one product or service

Create Economies of Scales

The operations manager for a chain of restaurants is budgeting for the addition of more healthy menu options and realizes the project may involve unanticipated costs. How should the manager budget for these costs? Document opportunity costs Estimate cash flow Forecast net revenue Create a contingency fund

Create a contingency fund

Maintain a balanced power structure

Create a sense of fairness

Because of its expansion into new parts of the world and entrance into the rechargeable electric car battery market, Sure Start's organizational culture will change. Sure Start needs to help employees understand and align with the values and direction of the evolving company. What is one way Sure Start can meet this goal? Show the employees the financial results that could be achieved by the change Allow the employees a few days off to process the news of all the changes Increase employee pay to offset any worries that the staff may experience due to change Create a sense of urgency by explaining to the employees why change is important

Create a sense of urgency by explaining to the employees why change is important

An organization merges with another, forming a new organization. Members of a team composed of executives and managers from both organizations agree that the strategic goal of the new organization is to expand market share to 50% of its niche in five years. Which operational strategy should be used to achieve this target? Devise a new internal slogan supporting the plan to improve morale Feature the new organization's executives in an industry publication Revise the organization's mission statement to address the merger Create a specific set of actions and metrics for implementation

Create a specific set of actions and metrics for implementation

What is the first step Rachel and the other managers should take to manage the company's human capital? Determine how many employees to hire Change the structure of the organization Develop a robust training program Create a strategic talent resource plan

Create a strategic talent resource plan

How should a company influence organizational culture to support a change management initiative? Create new symbols and stories Adopt industry best practices Use laissez faire tactics Develop a new mission statement

Create new symbols and storiest

Which leadership attribute does Charlie Wicker demonstrate during the expansions being undertaken by Sure Start? Eyes bottom line Enacts the direction Manages the process Creates a vision

Creates a vision

A change professional has been asked to help prepare an organization to implement a new electronic production system to replace the current, inefficient system. The organization has finished the preparation for the project and is beginning the actual change process. Which strategy should be used to reduce potential resistance and barriers at this stage of this process? Creating a history of success that demonstrates how the change effort is expected to progress Requiring employees to attend mandatory diversity and inclusion training Identifying potential naysayers and encouraging them to leave the organization prior to implementation Providing a severance package to displaced workers and assisting with job searches

Creating a history of success that demonstrates how the change effort is expected to progress

A manager is working with an employee on a career development program and decides to use SMART goals as part of that process. How will using this approach help the program succeed? An increase in job satisfaction in the employee's current position within the organization Improving the chance that the employee will get a strong performance review Better performance for employees in the current work dynamic Creating transparency as to whether the goals of the program have been met

Creating transparency as to whether the goals of the program have been met

An incoming chief executive officer (CEO) has a plan to move the company toward products that are certified as manufactured from 100% sustainable sources and suggests an employee training program to educate the workforce on environmental sustainability. Which aspect of change does this plan impact? Policy Culture Technology Mission

Culture

Which information does a projected income statement report as a function of the budget-planning process? Current profit Deferred revenue Market share Sales plan

Current profit - The projected income statement contains sales and other data from the previous financial period. This provides information on current profit and expenses.

Which element of project management requires budgeting for customer choices? Production timeline Customization costs Inventory requirements Implementation initiative

Customization costs

What is one reason organizational change is resisted? Decreases employee power Weakens competitive standing Diminishes customer relationships Reduces productivity of workforce

Decrease employee power

During the budgeting process, Will determined that his group needed to develop a project to help increase productivity in the dyeing department. Rob has asked Will to put together a budget for this project. For Will to get buy in from Rob, which steps should he include in budgeting for the new project? - List anything that could go wrong, hire new employees, determine time to complete, and find consultants - Define the project, list all associated tasks, estimate time and costs, and list constraints and considerations - Schedule meetings with stakeholders and board of directors, determine scope of project, list resources available, and create process flow chart - Track return on investment, forecast sales volume, list changes in inventory, and calculate cash flow

Define the project, list all associated tasks, estimate time and costs, and list constraints and considerations

What is a purpose of the first step in Lewin's change model? Creating a change history of small wins Demonstrating the urgency for change Rewarding people who embrace change Understanding the change obstacles

Demonstrating the urgency for change

What is a purpose of the first step in Lewin's change model? Creating a change history of small wins Rewarding people who embrace change Demonstrating the urgency for change Understanding the change obstacles

Demonstrating the urgency for change

An organization is considering a broad new initiative to change its existing culture into one that delivers high performance. The leader of the change process would like to assess the need for change and determine factors that would help reduce potential resistance. Which process should this leader use to meet this objective? Determining the scope, level, and intentionality of the change Considering the downsides of the change should it fail Considering using six sigma techniques to reduce change barriers Determining how change will affect personal and coworker practice

Determining the scope, level, and intentionality of the change

Which risk occurs for existing employees if Sure Start poorly executes its change management initiative? Loss of trust by customers Diminished morale Loss of reputation Decreased revenue

Diminished morale

n employee has expressed an interest in career advancement. Consequently, the employee and the respective manager begin establishing a career development program for the employee. They establish a number of SMART goals to support the effort. Which goal focuses on the T element of the SMART model for this employee? Earn a certification within three months that will support promotion Obtain a promotion into management within the organization Get a higher-paying job outside the organization based upon training Redevelop current job responsibilities to prepare for advancement

Earn a certification within three months that will support promotion

Which term describes the training opportunities a firm adopts to help employees meet organizational goals? Team brainstorming Staff cultivation Employee development Resource acquisition

Employee Development

Which employees will have the most resistance to change? Employees who can maintain their present habits Employees who are experts in their jobs Employees who will be getting more power Employees who are extroverts

Employees who are experts in their jobs

Which employees will have the most acceptance to change? Employees who are experts in their jobs Employees who are introverted Employees who are low in openness Employees who can maintain their habits

Employees who can maintain their habits

Two nurses in an urgent care clinic disagree on the best way to obtain patients' answers to personal questions, and this disagreement has resulted in inconsistent data collection. One nurse is from a culture where it is important to avoid uncertainty, and the other nurse is from a culture that is more comfortable with trying new approaches. Which action should the leadership take to resolve this conflict? Reassign one of the nurses Encourage compromise of viewpoints Ignore the conflict Require new skills training

Encourage compromise of viewpoints

Which decisional role does a manager play within an organization? Entrepreneur Liaison Advocate Disseminator

Entrepreneur

As the leader of the organization, in which task must Charlie Wicker excel for Sure Start to be successful? Administering detailed processes Establishing a direction Implementing the plan Controlling existing circumstances

Establishing a direction

A manager discusses with employees the company's long-term strategic-planning goal of reducing employee injuries by 50% over the next five years.Which operational strategy will management use to start monitoring goal achievement? Analyzing competitor safety management strategies Identifying trends in the industry related to the goal Establishing baseline performance measures Surveying employees to ascertain safety priorities

Establishing baseline performance measures

Sure Start management wants to use non-management employees to be champions for a pending organizational redesign. They want these employees to influence the staff at large to understand the importance of the company change. Which Big Five personality trait must these champions for change demonstrate to a high degree? Extraversion Openness Conscientiousness Neuroticism

Extraversion

What are the two major components of the master budget? Direct materials and overhead budgets Financial and operating budgets Selling and administrative budgets Capital expenditures and cash budgets

Financial and operating budgets

An organization has developed plans to expand its reach by taking advantage of opportunities in foreign countries. The plan includes manufacturing its primary product in a specific country. Which operational strategy must be completed as part of this project? Determining if the country chosen recognizes the dollar Working with attorneys to secure intellectual property rights Revising the organization's mission and vision Finding a location for the production facility

Finding a location for the production facility

Corporate leadership of a company informs the sales managers that they will need to adopt and use differentiation strategies to help improve operational performance at the beginning of the next fiscal year. Which action should the sales team take to meet this directive? Sell a large volume of goods at a low cost Liquidate existing inventory to create new sales opportunities Focus on strengthening the company's branding Target a segment of the market that is not being addressed

Focus on strengthening the company's branding

Why should a manager regularly compare budgeted revenues and expenses with actual operational performance? To create contingency plans To analyze environmental factors For control purposes For financial prediction purposes

For control purposes

An advertising firm is tasked with developing a slogan for a new, healthier type of yogurt for a local business. The firm presents two slogans to the owner of the business. One slogan says, "This yogurt is healthier and contains only 10% fat" and one slogan says, "This yogurt is healthier and is 90% fat free". The owner chooses the second slogan. What form of bias is this exhibited by this owner? Intellectual short-cut First impression bias Anchoring bias Framing bias

Framing bias

Executives at a manufacturing company have started a change initiative focused on retooling the production process to be more efficient. Which group will resist this change due to possible job loss? Sales force Executive team Frontline workers Assembly trainers

Frontline workers

Why should companies conduct human capital planning as part of the strategic planning process? Fulfills the plan Adjusts the existing plan Establishes the plan Evaluates the plan

Fulfills the plan

Cristine discovers that the company does not have a formal performance appraisal process to support individual employee development and suggests using the most common approach. Which system is Christine suggesting the company use? Behavioral checklists Employee-comparison Objective production Graphic rating scale

Graphic rating scale

A company has decided to reconfigure its office layout and consolidate the employees' workstations onto one floor instead of three. An employee voices concern about the move and how it will affect access to a copy machine, an essential piece of equipment for the person's job. Which barrier to change is this employee displaying? Habit disruption Influence insecurity Role confusion Task conflict

Habit disruption

How could Will use the sales budget to plan for increased production and the use of more overtime? - He could make plans to either incur the overtime costs or increase production earlier in the first quarter to offset some of the overtime costs. - He could ask Marney to revise the sales budget to make it easier on the operation group of the company. - He could buy additional equipment and buildings to increase the capacity of producing carpet. - He could review the sales budget and fulfill a percentage of customer orders.

He could make plans to either incur the overtime costs or increase production earlier in the first quarter to offset some of the overtime costs.

What is an element that Rachel should include as part of her hiring practice? Select candidates who are willing to start within two days Choose candidates who want to work flexible hours Use employment service companies to screen candidates Hire candidates who will be with the company long term

Hire candidates who will be with the company long term

Which business function addresses a firm's ability to quickly and reliably identify the skill sets and personal characteristics necessary to increase company productivity? Financial budget forecasting External competitive analysis Mission statement development Human capital planning

Human Capital Planning

As Sure Start works to establish their offices in Germany and Vietnam, its managers will be doing so in cultures that they are not familiar with and will be hiring local employees to fill the positions. According to Robert Katz, which managerial attribute will support expansion into these new markets? Human relation skills Technical skills Conceptual understanding Long-term vision

Human relation skills

A hardworking, dependable employee is struggling to perform a particular job. What is the first step a manager should take before assigning this employee to another job? Provide the employee with training and a mentor Contact the employee's union representative for suggestions Refer the employee to human resources for an evaluation Identify the employee's strengths and weaknesses

Identify the employee's strengths and weaknesses

What is the function of a tactical plan? Creating long-term goals Committing significant resources Identifying short-term actions Emphasizing future operations

Identifying short-term actions. A tactical plan identifies the steps required to achieve the strategic goals of the organization. The plan is specific, and is adjusted as the strategic goals are changed based on organizational and environmental conditions.

Two separate manufacturing firms are planning on merging within the next six months. A member of one of the firms has been anxious about this pending change and the impact it will have on the individual's job security. As a result, this individual has been spending a good deal of time taking initiative on new projects, mentoring other employees, completing extra work, and supporting management. What type of behavior is this individual displaying? Non-verbal communication Impression management Cognitive dissonance Team dynamics

Impression Management

An employee in a tutoring service is upset with the boss for scheduling a session on a date that the employee requested be held open for a family event. The manager was aware of the need to avoid that date, so the employee asks for a meeting to discuss the situation. Where should the meeting be held? In any work area immediately available so the issue is handled rapidly In the manager's office where it is possible to speak privately In a busy restaurant that has music and entertainment In a quiet offsite location where it is possible to speak privately

In a quiet offsite location where it is possible to speak privately

Change Management

Includes all of the processes involved to prepare, support and lead individuals, groups or organizations in making change

Which report shows the change in the company's financial performance over a stated period of time? Balance sheet Income statement Revenue projection Sales budget

Income Statemen t

Which leadership style considers company culture and employee attitudes when making process changes? Integrated Continuous Panacea Rational

Integrated

Which conflict resolution approach is the vice president asking the department managers to utilize to help manage their conflict? Mediating Distributing Avoiding Integrating

Integrating

What type of conflict is being demonstrated by the mangers in this staff meeting? Intrapersonal Intergroup Interpersonal Intragroup

Intergroup

A manager with a building construction company hears that the building permits submitted to the city's works department for approval have been delayed. The manager offers to speak with the city's works department head, who is a member of the manager's church. Which Mintzberg's managerial role is this manager fulfilling? Setting objectives Changemaker Decision maker Interpersonal relationships

Interpersonal relationships

A marketing director and financial officer in a retail firm disagree about the direction of the next sales campaign. The financial officer is concerned about the costs of the campaign. Instead of responding with specifics, the marketing director counters with blanket statements such as "you always..." and "you never..." when discussing the situation. What type of cognitive bias is being exhibited by the marketing director? First impression bias Irrational stubbornness Overconfidence Anchoring bias

Irrational stubbornness

What is a benefit to firms hiring externally as compared to internally when using the human capital planning process? The employees can be trained faster. It increases organizational diversity. The employees have a lower level of risk. It is less expensive.

It increases organizational diversity.

Which action should an effective leader take to resolve conflict within a team setting? Keep the parties involved from taking sides Defer addressing the issue to a later time Discipline the involved parties Select the outcome for the parties involved

Keep the parties involved from taking sides

KPI

Key performance indicator - a statistical measure of how well a company is doing in a certain area.

What are leadership responsibilities?

LRP Controlling Environmental Scanning Supervision Coordination or Collaboration Customer Relations and Marketing Community Relations Internal consulting Monitoring products and services

Leadership at an IT manufacturing company decides to outsource future production to decrease labor costs. The production team immediately goes on strike to demonstrate their opposition to this decision. As a result, production stops. Which barrier to change does this represent? Customer Labor Supplier Technology

Labor

Charlie and his senior management team hire interpreters to attend meetings with prospective partners. Which communication barrier to change is the company working to overcome? Language Technological Time zone Cultural

Language

A customer is upset about having to wait for more than 30 minutes to get a food order in a restaurant. Once the food arrives, the customer enjoys the food and is appreciative of its high quality. When the customer finishes the meal, the customer complains to the manager about the long wait. The manager is aware of an issue that occurred in the kitchen caused by the urgent departure of the chef. How should the manager handle the situation to satisfy the customer? Listen attentively to the customer and offer a discount on the meal Disregard the complaint because there was a kitchen issue Clearly state that unexpected things occur so patience is needed Provide the details about why the meal was delayed

Listen attentively to the customer and offer a discount on the meal

Which action is recommended for leading change effectively within an organization? Restricting the decision process to top management Avoiding deviation from the initial strategic plan Listening to what naysayers have to share Ignoring previous efforts to implement change

Listening to what naysayers have to share

Sure Start's mission is "to be the preferred mass producer of rechargeable batteries for electric cars" in the industry. Its vision is: "At Sure Start, we know it is important you know your car will start every time. That is why we are dedicated to producing quality batteries that work every time you start your car." Which statement accurately illustrates how Sure Start should use their goals to support this mission and vision? Long-term goals are only necessary if Sure Start decides to go in a different direction than the mission and vision. Short-term goals are not necessary for Sure Start to develop each year if its long-term goals follow the SMART goal guideline of being specific, measurable, achievable, realistic, and time constrained. Short-term goals that are set annually will only matter to investors that Sure Start may use in the future to fund expansion programs. Long-term goals will help Sure Start define where it intends to be in 3-5 years, while short-term goals will help focus on what needs to be accomplished within one year, in support of its mission.

Long-term goals will help Sure Start define where it intends to be in 3-5 years, while short-term goals will help focus on what needs to be accomplished within one year, in support of its mission.

To finance operations, a company routinely borrows from a local bank at the best possible terms. Which budgetary activity does this action reflect? Process improvement Reducing overhead costs Forecasting revenue Managing cash flow

Managing cash flow

Which individual should work with Heather to start the budgeting process? - Rob, the owner of the company - Marney, sales manager - Will, operations manager - Rachel, human resources manager

Marney, sales manager

Sure Start is beginning the process of setting up offices in Asia and Europe. Because the senior management team is from the United States and there are concerns about expansion into new markets, Charlie Wicker wants all employees to understand the purpose of the change and how to manage its implementation. Which objectives should Sure Start communicate to make this information clear? Establish new ways of doing business, decentralize the organization, and improve customer relations Maximize organizational benefit, minimize impacts on workers, and avoid distractions Define the need to improve, implement Six Sigma, and increase market share Increase return on investment, redefine company culture, and improve manufacturing capabilities

Maximize organizational benefit, minimize impacts on workers, and avoid distractions

A company's operational strategy targets a 10% improvement in customer service satisfaction ratings. Companies in this market usually see a 3% improvement in customer service satisfaction ratings. Which aspect of SMART goal planning does this represent? 4. Time-bound Measurable Realistic Specific

Measurable

To help the newest production employee understand what they must do to be successful, Mike sets the goal of producing 200 pounds of recycled fiber per day by the 20th of the following month. Which component of the SMART goal does the 200 pounds a day represent? Measurable Specific Realistic Time-bound

Measurable

Performance Metric (PM)

Measuring employee performance for the purpose of motivation, improvement, statistical reference, promotion, termination, etc.

A company provides support for employees who are new graduates assuming their first business positions. This support includes assigning experienced managers to help guide the new graduates in their professional, personal, and interpersonal growth. The support also includes helping them integrate the business theories learned in school into actual practice. Which type of individual development is being provided to these employees? Teamwork training Professional networking Orienting Mentoring

Mentoring

Mike has been informed by senior management that they would like for him to learn how to manage the logistics side of the business. In an effort to accomplish this goal, Mike and the manager of the logistics department decide to use job swapping. What is the benefit of this form of training? Mike will be able to learn the functions while still being in the familiar environment of the company The company will be able to increase profit by reducing head-count Christine will be able to show senior management that job swapping is the best form of training The production department will be able to increase production with the new manager

Mike will be able to learn the functions while still being in the familiar environment of the company

Mission, Vision, and Values

Mission is something a company does well, vision is where they want to go and values is what is important

Two managers in a retail store have opposing views on how best to attract customers. Some of this conflict appears to be grounded in a difference in cultural values and individual egos. How should the store owner resolve this situation? Open up the decision to additional employees Disregard the problem Model effective ways to resolve concerns Allow the customers to have input

Model effective ways to resolve concerns

A manager continually gathers data regarding the organization's competition and the general business environment. Which management attribute is this individual displaying? Influencer Monitor Negotiator Figurehead

Monitor

A business owner began to computerize the organization's operations and has encouraged members of the staff to see the change as an opportunity for professional development. Which leadership attribute is this business owner exhibiting? Focusing on short-term goals Motivating employees Eyeing the horizon Reducing risks

Motivating employees

In preparing the production budget, Will looks at the number of times in the past two years that Second Life Flooring has had to re-dye rolls of carpet because the production group dyed it the wrong color. He has determined that they re-dye 20 rolls of carpet annually and that the error costs the company $8,000. He wants to make sure that the budget covers this issue. Should Will budget for the $8,000 additional costs? - No, the re-dye cost is a sunk cost and can lead Will to make the wrong decision of allowing re-dyes instead of fixing the process to prevent incorrect dyeing. - Yes, Will needs to make sure he can capture all costs that occur in the production process so that he will be covered when the actual costs are incurred. - Yes, this will allow the company to achieve its financial goals by accessing the budgeted funds when errors occur that require carpet re-dyes. - No, Will has analyzed the impact of errors on the production process and now he needs to focus on ways to recover the costs of the re-dye errors.

No, the re-dye cost is a sunk cost and can lead Will to make the wrong decision of allowing re-dyes instead of fixing the process to prevent incorrect dyeing.

Rachel needs to forecast the company's human resource needs. Which demand factor should Rachel take into account to complete this task? Projections from competitors on new jobs Number of qualified workers currently employed Level of growth in the construction industry Anticipated number of seasonal workers

Number of qualified workers currently employed

As part of its human capital planning process, a firm is conducting organizational forecasting. The firm decides to examine the variables that are demand based and will affect the forecast first. Which variable is being examined by the firm? Level of available seasonal employees Economic forecasts Industry growth rate Number of qualified workers in the firm

Number of qualified workers in the firm

Competitive Allocate resources Create Economies of Scales Offer Goods that are cost-driven Specialize in one product or service

Offer goods that are cost-driven

Christine has assigned the most senior production employee to work with a group of new employees to help them learn the basic tasks of the job. The senior production employee watches the new employees for a short time to ensure that they perform technical production correctly, and then the senior production employee discontinues working with the new employees. Which training approach is being used for these employees? Employee mentoring Brown bag lunches Job shadowing On-the-job coaching

On-the-job coaching

What type of learning opportunities do people who are motivated by power need according to McClelland's theory? Those that provide opportunities to innovate in the workplace Ones that foster creating collaborative working relationships Ones that increase their level of influence within the organization Those that foster an equitable division of responsibilities within a department

Ones that increase their level of influence within the organization

Which element of the Big Five Model positively influences a person's desire to embrace change within an organization? Conscientiousness Extraversion Agreeableness Openness

Openness

What factor has to be aligned to the company's change management efforts for the change to be successful? Organizational culture Corporate governance Company history Competitive influences

Organizational Culture

Which function is a manager performing when developing the department's annual budget? Negotiating Controlling Planning Organizing

Organizing

What should Rachel do prior to searching for potential employees to hire the right person for this job? Perform a job analysis Create an on-boarding process Determine how many to hire Write job descriptions

Perform a job analysis

Which factor impacts how individuals perceive change within an organization? Work style Personality Benefits Salary

Personality

A manager is great at persuading staff members to undertake tasks they feel are beyond their particular skill set. Which four fundamental management functions help this manager achieve this result? Performing, observing, labeling, and coordinating Planning, orbiting, leaning, and contradicting Planning, organizing, leading, and controlling Performing, orchestrating, learning, and comparing

Planning, organizing, leading, and controlling

PESTLE analysis

Political, Economic, Social, Technological, Legal, Environmental

Which factor impacts a manager's roles and responsibilities? Outside competitive forces Style of leadership Position within the organizational hierarchy Financial performance of the department

Position within the organizational hierarchy

Charlie wants Sure Start to be an early market entrant in the electric car rechargeable battery market since it is new and no one is established as the industry leader. In which operational strategy category is Sure Start focusing their efforts? Developing a well-integrated company Creating a system to measure competitive priorities Producing products that focus on market position Maximizing the organization's core competencies

Producing products that focus on market position

Seven primary functions of Operations Management

Product management Supply chain management Inventory management Forecasting Scheduling Quality assurance Facilities planning and management

Return on Investment (ROI)

Profit earned as a result of a project relative to the value of resources required to complete it. Calculated by dividing the amount of money gained by the cost of the investment expressed as a percentage.

A manager is working on department production goals set by a director and needs to illustrate how planning will be used in the next project. Which action illustrates this component? Appointing a new production manager Projecting the number of units that will be sold Determining if the project was profitable this month Forming a committee to interview potential employees

Projecting the number of units that will be sold

Which action should a firm take to support employees' development and future success? Hire new human resources directors frequently Team employees together to improve performance Provide specific feedback to employees on their work performance Support a quota system for advancement into executive management

Provide specific feedback to employees on their work performance

A manufacturer of baseball bats must determine the level of inventory necessary to make the bats. The bats require raw material of wood blocks. The manager wishes to have a certain number of blocks available in addition to just-in-time inventory. What is an advantage of using this strategy? Efficient supply chain Ready for demand spikes Reduced waste and cost Less inventory to manage

Ready for demand spikes

What is the purpose of using Lean techniques in change management? Analyze need for improvements Create transformational change Reduce process inefficiencies Align operations with the mission

Reduce process inefficiencies

What is the purpose of using Lean techniques in change management? Create transformational change Align operations with the mission Analyze need for improvements Reduce process inefficiencies

Reduce process inefficiencies

When employees receive training on making dental equipment, they are taught the quality standards for each product they will be involved in manufacturing. What is a purpose of this training? Reduce production costs by eliminating waste Provide needed job skills Create job opportunities Encourage teamwork on the production line

Reduce production costs by eliminating waste

A company's new way of doing things is becoming ingrained in the routine of how the company operates on a day-to-day basis. Which stage of Lewin's change model is present in this company? Beginning change Identifying obstacles Refreezing Unfreezing

Refreezing

A production manager has been given the responsibility to prepare the manufacturing employees for a change to different raw materials for making their products. This will require training on how to handle the new materials. Temporarily, this change will slow down production, increase labor costs, and likely increase material waste until the team is fully trained and skilled with the new materials. This manager has not taken time to discuss these issues with the materials procurement team nor with the shipping and sales teams. This manager is exhibiting which hurdle to change? Personal low morale Not listening to bottom up feedback Reinforcing departmental silos Not aligning to organizational goals

Reinforcing departmental silos

A company is making a major change to the manufacturing process of glassware and is adding custom engraving to several of the products. Workers are concerned that productivity will drop when the new step is added and that error rates during the engraving process will be high. The owner understands the issues associated with making a top-down change and is committed to helping the employees understand the reasoning behind the decision. Which employee issue is associated with this change direction? Weakness in managing emergent processes for production Reluctance to move away from an established routine Discomfort with experimentation to determine best practice Inability to work together to construct the needed change

Reluctance to move away from an established routine

A legal assistant, supporting multiple partners in a law firm, is asked by one of the partners to respond to a customer inquiry, but is unable to do so because of a tight project deadline for another partner in the firm. Now there is tension, resulting in several conflicts over work assignments. What is the origin of this conflict? Role incompatibility Resource scarcity Structural issues Value differences

Resource Scarcity

A manager is responsible for controlling and overseeing a small company.Which management attribute is needed to undertake this set of responsibilities? Risk-taker Changemaker Resource allocator Visionary

Resource allocator

What is causing the conflict between these two departments? Informational deficiencies Personal conflict Role incompatibility Resource scarcity

Resource scarcity

What is the desired outcome of a change management initiative? Employee buy-in is used. Impact is clearly identified. Results are attained. Ambiguity is eliminated.

Results are attained.

A manager is asked to initiate activities that will support environmental scanning.Which activity should be used by this manager for this purpose? Reviewing production Setting the advertising budget Monitoring competitors Implementing a new program

Reviewing production

Which term describes employees' efforts to emulate the behavior of leaders seeking to affect change within organizations? Impression management Power distance Role modeling Internal equity

Role Modeling

Which component must be developed when creating an operating budget for the upcoming fiscal year? Owner's equity Cash flow Financial assets Sales plan

Sales Plan

A technology company trains businesses to use web-based solutions to track customer product decisions. Which aspect of operations will this technology improve? Inventory management Cash flow management Sales forecasting accuracy Receivables collections

Sales forecasting accuracy

A fast food chain restaurant seeks to open three more locations in a geographic territory within a one-year timeframe. Which type of goal is being used for this expansion? Long-term Immediate-term Ultra-long-term Short-term

Short-term: Short term goals are operational issues a firm seeks to address within a 1-year period.

Customer-driven Allocate resources Create Economies of Scales Offer Goods that are cost-driven Specialize in one product or service

Specialize in one product or service

SMART goals

Specific, Measurable, Attainable, Realistic, Timely

An individual was recently promoted to an executive management position and will frequently be involved in creating objectives that meet the mission of the organization. Which type of planning will this executive be required to perform? Operational Strategic Contingency Tactical

Strategic

Share commonly agreed upon goals

Strengthens the team by stressing their shared focuses

Sure Start is expanding into Asia and Europe and undertaking a new partnering strategy. What type of change is Sure Start undergoing? Structural Developmental Technological Cultural

Structural

A nursing home manager has been given a goal of reducing patient falls by 20% over the next three years by implementing a falls prevention protocol and reporting results annually. What is this manager's role now that the method to meet this objective has been established? Discussing the plan with newly admitted patients Hiring new staff to supervise patient care Supervising implementation of the plan Creating new goals to support the strategic plan

Supervising implementation of the plan

Six Sigma Process

System of measuring, analyzing, improving, and controlling processes once they meet quality standards.

Resolve issues without forcing consensus

Talk over a problem and try to reach an agreement

Strategic Formulation

The development of a set of corporate, business, and functional strategies that allow an organization to accomplish its mission and achieve its goals

The senior management team has decided that for Sure Start to be successful in changing the organizational culture, they need to follow the principle that people are inclined to embrace change when they are respected and have intrinsic worth, agency, and capability. What is an outcome of this approach? The employees may be seen as objects that need to be controlled. The leaders will work harder to achieve employee buy-in. The leaders may be seen as more authoritative. The employees will be seen as partners in change management.

The employees will be seen as partners in change management.

Operations Management

The management of systems or processes that create goods and/or provide services

After Rachel hires new employees, they are offered professional development programs. What is the benefit of offering this type of program? The administration will no longer need to offer bonuses for productivity goals. The skills learned will help the company meet its goals. The employees will become more marketable to other companies. The improved performance will increase employee loyalty to the company.

The skills learned will help the company meet its goals.

How can people benefit from 360 degree reviews as part of their professional development efforts? They can obtain professional feedback across multiple review periods. They can obtain performance feedback from a variety of stakeholders. They can be ensured of promotion into higher levels of management. They can be ensured of longer tenure at the firms where they are employed.

They can obtain performance feedback from a variety of stakeholders.

Why are the North Carolina manufacturing employees resisting these company changes? They are concerned that the company will assign new job responsibilities that exceed their skill levels. They feel uncertain about what the changes will mean for the future of their jobs. They will have to learn to speak German in order to communicate with their peers in Germany. They worry about having enough time to take the new required training.

They feel uncertain about what the changes will mean for the future of their jobs.

Heather has determined that she needs to involve the other managers of Second Life Flooring in the budget process. She decides to review the importance of budgets during the first meeting and provides a list of the reasons why budgets are essential to the company. Which reason should be included on this list? - They will help the managers know how much their bonus will be at the end of the year so they can plan on how they wish to spend their bonus. - They allow investors to see how well the company has done over the last 5 years so they can decide whether or not to invest in the company. - They allow customers to see that the company will be in business for a long time, and they can be confident that they will be able to get the products they order. - They help the managers to know what the expectations are for the upcoming year and will guide them in making decisions that will help them achieve the financial goals of the company.

They help the managers to know what the expectations are for the upcoming year and will guide them in making decisions that will help them achieve the financial goals of the company.

Why should an individual use SMART goals when conducting career planning efforts? They strengthen a resume to gain current employer approval. They develop an individual's career planning competencies. They improve the likelihood that the individual will be recruited by other firms. They increase an individual's chances of success in attaining chosen goals.

They increase an individual's chances of success in attaining chosen goals.

Which attribute is possessed by managers when compared to leaders? They motivate through intrinsic processes. They use their authority to gain compliance. They gain power through their sense of influence. They are most productive when they challenge authority.

They use their authority to gain compliance.

Why is it important that Sure Start managers set SMART goals during this period of growth and uncertainty? It will help reassure the employees in North Carolina that they have a future with the company. They will help the company identify strategic plans that are focused, measurable, and well-defined to help them through this period of growth. It will help ensure that Sure Start will be profitable in the years to come. They will help the managers identify goals that are focused, measurable, and well-defined to accomplish the vision of the company.

They will help the managers identify goals that are focused, measurable, and well-defined to accomplish the vision of the company.

Based on the culture of this company, how will senior management approach training for the production employees? They would be hands off and let the employees make a personal decision about training. They will provide coaching on a weekly basis. They will oversee the professional growth of the employees. They would concentrate on the production employees who demonstrate a desire to learn.

They will oversee the professional growth of the employees.

How do leaders in an organization exercise power? By following a company's bylaws Through their ability to influence others Through their ability to adhere to best practices By reacting to competitive forces

Through their ability to influence others

What is a variable cost for an electronic-watch maker? Routine quality testing equipment for watches Time of a technician to assemble the watch New accounting system software to track watch sales Insurance on the watch assembly line equipment

Time of a technician to assemble the watch

A marketing team sets a goal to increase its product market share by 10%. Which other component of a SMART goal should the team include? Specificity Acceptability Measurable Time-bound

Time-bound: The goal needs a defined deadline for it to be achieved.

An employee has been working at a firm in an entry-level sales support role for the last five years. Unhappy with the future prospects of the position and the company's unwillingness to offer a promotion, the individual decides to establish self-directed career prospects. The individual has a passion for sales and is motivated by money. Considering the employee's desire for advancement, which SMART goal addresses the greatest number of elements of the model? To become a local salesperson for Company X within three years, earning $100K per year To get hired as a salesperson for a successful firm To become a leading salesperson in the related industry To launch a successful 1,000-person company within three months and lead its sales division

To become a local salesperson for Company X within three years, earning $100K per year

Why is it important for managers to sales forecast within a company? To take advantage of marketplace sales opportunities To hire sales representatives with product knowledge To accelerate cash and credit sales inflow To determine how to create and manage the company's sales force

To determine how to create and manage the company's sales force

A significant change in a company's billing process was recently implemented. Which component of change management should be used now? Create a clear strategy Empower employees Communicate effectively Track progress

Track Progress

A significant change in a company's billing process was recently implemented. Which component of change management should be used now? Empower employees Create a clear strategy Communicate effectively Track progress

Track Progress

What is the function of operations management in achieving strategic goals? Describes long-term business goals Transforms resources into profits Defines goals to support mission Focuses on broad company outcomes

Transforms resources into profits. Operations management is focused on producing goods and services from inputs to create profits. Operations management is critical to implementing the day-to-day responsibilities associated with achieving strategic goals.

An urgent care center has changed from being open eight hours on the weekend to 24-hour coverage. They are struggling to find employees to cover the additional shifts. Which step should leadership take at this point to overcome this type of barrier in the change process? Hire staff willing to adapt to the schedule Understand the root cause of resistance Revise tactics to meet strategic objectives Engage a human resource consultant

Understand the root cause of resistance

A company manufactures sensors that are used in hybrid automobiles. Due to an anticipated increase in demand of its products over the next 12-18 months, the firm is looking to hire more employees to fulfill this demand. The manager wants to ensure successful hiring as part of the human capital budgeting process. Which action should the hiring manager take to meet this goal? Rely on governmental quotas to meet diversity goals Benchmark the number of firm hires to the industry Use firm core values to guide the hiring process Perform regression analysis of previous hiring budgets

Use firm core values to guide the hiring process

Behavioral Theory

Use of reinforcement methods to change learners' behaviors

Value Added Ratio

Value added lead time/total lead time

A company owner writes a detailed and clear picture of what the company will look like five years from now. What is he/she defining to the employees? Innate Attribute Vision Statement Organizational Structure Mission Statement

Vision Statement

In which situation would a leader use the competing strategy? When a leader wants the team to develop and learn from their own mistakes When relationships are strained and retaliation may ensue When the concerns of the parties involved are too significant and cannot be compromised When an immediate decision is needed and an outcome cannot be compromised

When an immediate decision is needed and an outcome cannot be compromised

In which situation should a team use the distributive approach to conflict management? When contentious disagreements are avoided by all the team members When the teams focus on the issue and work towards a common goal When the participants are willing to give in on low stake issues When a third neutral party is involved in helping teams find common ground

When the participants are willing to give in on low stake issues

A large global manufacturing company transitioned from classroom education for workers to web-based training. This change saved the company costs associated with the traditional training sessions. Which factor enabled the company to achieve these costs savings? Workers get training on demand at any location. Company trainers share job-specific information. Subject area specialists are more involved. Education materials can be mass produced.

Workers get training on demand at any location.

production budget

a detailed plan showing the number of units that must be produced during a period in order to satisfy both sales and inventory needs

needs assessment

a determination of the customer's specific needs and wants and the range of options the customer has for satisfying them

Contingency Theory

a leadership theory that states that in order to maximize work group performance, leaders must be matched to the situation that best fits their leadership style

SWOT analysis

a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats

Laisez Faire

a policy or attitude of letting things take their own course, without interfering.

master budget

a presentation of an organization's operational and financial budgets that represents the firm's overall plan of action for a specified time period

economies of scale

a proportionate saving in costs gained by an increased level of production.

innate attributes

a quality of feature of something

Strategic Objectives

a set of organizational goals that are used to operationalize the mission statement and that are specific and cover a well-defined time frame

assumptions

a thing that is accepted as true or as certain to happen, without proof.

Managerial Accounting

accounting used to provide information and analyses to managers inside the organization to assist them in decision making

Differentiation

actually differentiating the market offering to create superior customer value

allocation

allowance, portion, share

Mission Statement

describes the purpose of your organization, its goals, and how it will achieve the vision

Vision Statement

describes where a company wants to be in the future

Strategic Evaluation

financial measurement, innovation, employee satisfaction & engagement, monitoring and gauging strategic impact of macro trends

business indicators

numbers that may indicate a positive or negative trend. Examples include demand for product, profit margin, revenue, professional development levels of workforce, market share, amount of debt, and deals finalized by the sales team

P-O-L-C Framework

planning, organizing, leading, controlling

A company's new way of doing things is becoming ingrained in the routine of how the company operates on a day-to-day basis. Which stage of Lewin's change model is present in this company? Beginning change Unfreezing Identifying obstacles Refreezing

refreezing

SWOT analysis

strengths, weaknesses (within the company, opportunities, threats(outside the company)

Chief Financial Officer (CFO) Darris Johnson is recommending that senior leadership create clearly defined goals for both the short term and the long term. Which short-term goal should be created by the senior leadership? Hiring a replacement General Manager for the Asian market. Staffing the Vietnam office with the appropriate headcount Increasing the customer pool by 150% Determining the marketing strategy for the next generation of rechargeable batteries

taffing the Vietnam office with the appropriate headcount

Financial Accounting

the branch of accounting that prepares financial statements for use by owners, creditors, suppliers, and other external stakeholders

opportunity cost

the most desirable alternative given up as the result of a decision

Strategic Planning

the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities

Market Segmentation

the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups

Strategic Implementation

the process of putting strategies into action