Intro. To Business Management Mid-Term

In an attempt to regain a competitive edge, U.S. firms have reduced production costs by selecting suppliers that offer high-quality raw materials and components at reasonable prices. used green manufacturing to conserve natural resources and sustain the planet. used computer-aided and flexible manufacturing systems that allow a higher degree of customization. improved control procedures to help ensure lower manufacturing costs. done all of the above.

done all of the above.

In an organization with a matrix structure, authority flows both down and across. up and down. up and across. in lines and in circles. through groups and individuals.

down and across.

The ___ leadership style tends to take initiative and be visionary. autocratic participatory consensus consultative entrepreneurial

entrepreneurial

A biotechnology company is constantly faced with important decisions that are likely to have severe consequences on the future of the company. The top managers should decentralize decision-making authority. appoint lawyers to make business decisions. train first-line managers to make these decisions. exercise centralized decision-making authority. consult investors when making important daily decisions.

exercise centralized decision-making authority.

A business will usually choose to produce a new product in an existing facility if the cost is less than the cost of building a new one and the type of technology needed for the new product is the same as the technology used by the existing products. new product is an extension of an existing product line already produced in the factory. human resources requirement for the new product and existing products can be satisfied with the facility's current employees. product design is already completed. existing factory has enough capacity to handle demand for the new product as well as the existing products.

existing factory has enough capacity to handle demand for the new product as well as the existing products.

Needles, Inc. has five of its ten products at the end of the product life cycle. To maintain its market share, the firm must at least find ways to reduce the cost of marketing its products. cut manufacturing costs. extend or refine the want-satisfying capability of its products. reduce the number of employees. increase the price of the product.

extend or refine the want-satisfying capability of its products.

Product extension and refinement shorten the product life cycle. extend the product life cycle. are too costly for most firms. take place during basic research. end the product life cycle.

extend the product life cycle.

When Nabisco introduces Oreos with half chocolate and half peanut butter cream in the middle, it is ____ its Oreos line. refining implementing extending heavily advertising applying

extending

The television has undergone a large number of changes since its introduction. For example, Sony now produces not only color televisions but also such innovative products as televisions that include video equipment. This sort of product evolution is referred to as product extension. design planning. differentiation. integration. expansion.

extension.

All of the following are reasons for a narrow span of management except workers are located far from one another. few new problems are expected. the manager must do a lot of work other than managing. a great deal of interaction between management and workers is needed. new problems arise frequently.

few new problems are expected.

An Illinois-based firm crushes materials to make gravel, its only product. The gravel company has few production processes. a focus on human resources. very little utility. many production processes. a focus on financial resources.

few production processes.

Kelly is in charge of both accounting and investments and all of the employees involved with these functions at her firm. Kelly is a(n) ____ manager. executive financial first-line middle operations

financial

Ford cars and trucks are completed and ready for delivery to customers. Because of this, they are classified as raw materials. finished goods. goods in waiting. production inventory. delivered goods.

finished goods.

​A manager who coordinates the activities of operating employees is a(n) ____ manager. first-line middle top executive functional

first-line

In an organization with a ____, a manager is most likely to spend considerable time supervising and working with employees. flat organizational width and a wide height span narrow span of control and a tall organizational height flat organizational height and a wide span of control wide span of control and a tall organizational height narrow span of control and a flat organizational height

flat organizational height and a wide span of control

Chevron and other refiners emphasize material resources in the conversion process. This implies that the material resources are the ____ of the conversion process. catalyst technology output impetus focus

focus

When considering the conversion process, human resources in the form of hair stylists and cosmetologists are the ____ for a beauty salon. magnitude utility focus production process width analytic process

focus

To ensure that work flows according to schedules, operations managers use a procedure called cycle control. equilibrium control. inspection. monitoring and evaluation. follow-up.

follow-up.

The type of utility on which production and operations management focuses is ____ utility. place time form possession need

form

When 3M satisfies consumers' needs for notepads that will not get lost easily by converting paper and glue into Post-It Notes, it is creating reminders for employees. technological advancement. productive output. form utility. possession utility.

form utility.

Committees and task forces represent ____ groups within an organization, whereas employee bowling teams and gatherings represent ____ groups. staff; line formal; informal staff; staff informal; formal line; staff

formal; informal

Planning, organizing, leading, motivating, and controlling make up the four organizational goals every firm wants to achieve. step-by-step management procedure. four basic functions in the management process. process of coordinating people and other resources to achieve the goals of the organization. steps taken to achieve an organization's operational plans.

four basic functions in the management process.

An organization with a(n) ___ culture is characterized by employees not becoming friends and having a high degree of autonomy and flexibility. communal networked informal mercenary fragmented

fragmented

The two types of corporate culture that have low levels of sociability among employees are networked and communal. fragmented and networked. family and communal. mercenary and networked. fragmented and mercenary.

fragmented and mercenary.

If a new company desires to departmentalize in a way that will simplify supervision and facilitate coordination, it will most likely departmentalize by product. location. worker skill level. customer. function.

function.

The Morgan Company, a small furniture manufacturer, divides its organization into marketing, human resources, accounting, and production departments. This is an example of departmentalization by location. specialty. product. taste. function.

function.

Shane does not specialize in a particular function; instead, he provides overall guidance and leadership for the company. Shane is an administrative or ____ manager. marketing first-line general operations human resources

general

All of the following options are available to a firm when capacity exceeds demand except to lay off workers and shut down a portion of the facility. operate on a shorter work week. produce other goods or services. sell unused facilities. give away some of the products to selected customers.

give away some of the products to selected customers.

If on January 1, 2011, Microsoft stated that by 2020 it wants to have a 85 percent share of the U.S. software market, it is stating a(n) goal. objective. plan. strategy. task.

goal.

In many cases, customers will travel farther to purchase a(n) ____ than they would travel to purchase a(n) ____. service; good inexpensive good; expensive good product; good good; service inexpensive service; expensive good

good; service

An informal communications network is known as a memo. company newspaper. chain of command. grapevine. bulletin board.

grapevine.

The number of subordinates reporting directly to one manager is called the chain of command. a decentralized organization. a centralized organization. the span of control. the management hierarchy.

he span of control.

An organization's most important resource is its ____ resources. material human financial information technical

human

Lawyers, accountants, and engineers are ____ resources of Microsoft. informational non-revenue-producing material human financial

human

Managers charged with managing the organization's formal human resources program are ____ managers. human resources general administrative operations financial

human resources

Managers who must be familiar with the Equal Employment Opportunity Commission regulations are ____ managers. financial operations marketing administrative human resources

human resources

The first step in the managerial decision-making process is to evaluate the problem. create a problem opportunity. identify an opportunity. identify a solution to the problem. generate alternative solutions to the problem.

identify an opportunity.

One primary difference between services and the production of goods is that services are consumed ____ whereas goods can be ____. one at a time; consumed more than one at a time immediately; stored intangibly; tangible or intangible later; consumed now as they are produced; special ordered

immediately; stored

Jack is reviewing the recently implemented sales strategy the company developed and considering whether or not the company made the right decision. Jack is in the ____ stage of the managerial decision-making process. adopting a different alternative identifying the problem or opportunity selecting an alternative implementing and evaluating the solution generating alternatives

implementing and evaluating the solution

The Motorola Corporation has begun a program that promises to improve employee motivation. This is an example of a way to ____ productivity. decrease retard increase eliminate stifle

increase

Leadership can best be defined as the ability to identify problems. relate to others. influence others. generate reasonable solutions to problems. deal effectively with others.

influence others.

Although Frank is not in top management, he is charismatic and well liked by others in his organization. Other employees often look to Frank to see how he reacts to new policies implemented by top management, and they follow his lead. Frank has ____ leadership in his organization. personal formal informational unofficial informal

informal

Personal rather than formal relationships among employees are known as the span of management. chain of command. informal organization. bureaucratic structure. grapevine.

informal organization.

A corporate culture is generally defined as the manner in which employees interact with each other and with management. incorporation of company policies and procedures into employee activities. inner rites, rituals, heroes, and values of a firm. management philosophy pertaining to customer service. informal interaction of employees outside work during nonbusiness hours.

inner rites, rituals, heroes, and values of a firm.

Thad is in charge of examining the quality of work in process at a furniture factory. Thad's duty is referred to as inventory control. process control. critical review. designing. inspection.

inspection.

The examination of work in process for the purpose of controlling quality is called quality control. inspection. inventory control. quality circle. product design.

inspection.

A former CEO at International Telephone and Telegraph had a reputation for publicly humiliating subordinates who annoyed or disappointed him. This manager obviously needed to improve his ____ skills. conceptual diagnostic functional interpersonal negotiating

interpersonal

A manager who has the abilities to relate to people, understand their needs, and show compassion has ____ skills. personal people compassionate communication interpersonal

interpersonal

A benefit of job specialization is that it is more difficult to design equipment. is easier to train new employees. is more time-consuming to change from one operation to another. eliminates boredom. enriches the job.

is easier to train new employees.

When a worker has to learn only a specific, highly specialized task, that individual should be able to learn to do it very efficiently. However, this efficiency could eventually become inhibited by job monotony and boredom. This situation could be alleviated through job rotation. technical job training. job specialization. job design. assembly-line production.

job rotation.

In a furniture factory, one worker cuts the wood according to the design, another glues the furniture together, and another stains and finishes the furniture. This is an example of departmentalization. decentralization. job specialization. job rotation. an automated assembly line.

job specialization.

The book, The Wealth of Nations, published in the eighteenth century, emphasizes the power of job rotation. technical job training. job specialization. job design. assembly-line production.

job specialization.

Ann delegated work to an employee who mismanaged public funds. Ann, rather than the employee, was reprimanded for this mismanagement. Ann is now reluctant to delegate because she does not care whether the work is properly done. knows the person who delegates remains accountable for the work. does not trust any of her subordinates. fears a subordinate will do the work so well that he or she will attract the approval of top management. is so disorganized that she simply cannot plan and assign work effectively.

knows the person who delegates remains accountable for the work.

Technology that is characterized by low initial costs and high operating costs is termed a quality circle. capital-intensive. an industrial installation. labor-intensive. a process layout.

labor-intensive.

The process of influencing people to work toward a common goal is motivating. leading. a sign of an autocratic leader. a hands-off approach. implementing.

leading.

​Harrison Home Builders is evaluating the way certain parts of homes are manufactured as drop-in components. It would like to eliminate waste from the process to increase profits. Harrison Home Builders is seeking to apply _____ to the home building process. ​lean manufacturing ​productivity trends automation ​invention

lean manufacturing

A small restaurant with wait staff that reports to staff manager who reports to a floor manager who reports to the restaurant manager is a clear example of a(n) ____ organizational structure. matrix line line-and-staff informal network

line

The ____ structure is considered the simplest and the oldest form of organizational structure. cross-functional team matrix formal line-and-staff line

line

During the design planning stage for its new appliances, Torr, Inc. needs to determine how many different product variations there will be. This is the same as determining the product features. life cycles. line. prices. availability.

line.

Grouping the United States into the Northeast Region, the Northwest Region, the Southeast Region, and the Southwest Region would be departmentalization by location. customer. function. product. task.

location.

The president of Digital Equipment Corporation discovered that his company was having a problem with counterproductive product groups who were working selfishly rather than cooperating with one another. To solve the problem, he combined the company's twelve U.S. product groups into three regional management centers. This solution is referred to as departmentalization by location. function. product. customer. objective.

location.

Like many firms in the electronics industry, Godin Manufacturing experiences ups and downs in the demand for its high-tech products. To increase capacity during high-demand periods, management would do all of the following except change from one shift to two shifts a day. lower the prices that customers pay. open a new plant. approve overtime for existing employees. subcontract a portion of the work to other producers.

lower the prices that customers pay.

In a service industry such as a package carrier, the ____ of the conversion process is usually small or none at all. focus magnitude width of processes utility result

magnitude

Tom's Toothpicks and Don's Doghouses both use lumber as the major input in their conversion processes. Although the input is the same for each factory, the ____ of the conversion process varies greatly between the two. catalyst focus impetus magnitude capacity

magnitude

The degree to which input resources are physically changed by the conversion is referred to as the width of the conversion process. magnitude of change. depth of a conversion. number of technologies. focus of the conversion process.

magnitude of change.

Angered by the informal discussions among employees, a supervisor has posted rules against rumors, gossip, and discussions about the company's financial situation as well as other company matters. Your managerial know-how tells you that this supervisor is trying to support employees' First Amendment rights. trying to eliminate inaccurate information. making a big mistake by trying to eliminate the grapevine. recognizing the need for a grapevine. attempting to use the grapevine as a managerial tool.

making a big mistake by trying to eliminate the grapevine.

Marketing managers at Hasbro estimate that they will be able to sell 250,000 units of their Trivial Pursuit board game in the upcoming year if the price is kept the same. In this situation, 250,000 is the ____ for Trivial Pursuit games. capacity consumer demand market demand required supply level of production

market demand

A manager responsible for facilitating the exchange of products between an organization and its customers through distribution and advertising is known as a(n) ____ manager. administrative human resources financial operations marketing

marketing

Scott is in charge of managing, selling, and distributing the company's products. Scott is a(n) ____ manager. marketing operations human resources administrative financial

marketing

Those who are responsible for facilitating the exchange of products between the organization and its customers or clients are ____ managers. financial operations administrative marketing accounting

marketing

Because customer preferences must be considered, ____ play an important role in product-line decisions. marketing managers production managers human resources managers financial managers first-line supervisors

marketing managers

Airplanes, crates, and trucks represent ____ resources for Federal Express. revenue-producing material human financial informational

material

A computerized system that integrates production planning and inventory control is called computerized inventory management. just-in-time record keeping. materials requirements planning. support inventory control. inventory control management.

materials requirements planning.

When a functional structure is combined with a project structure, the resulting structure is called a(n) ____ structure. line-and-staff network integrated matrix hybrid

matrix

A line-and-staff structure tends to work best for ____ organizations. medium and large size small to medium size informal flat tall

medium and large size

Chris Gomez is a plant manager for National Manufacturing Company. With regard to levels of management, Chris is a(n) ____ manager. first-line middle top executive functional

middle

Grant is a division manager for a large chemical company. He frequently works to implement the strategies set by the CEO and supervises the activities of the supervisors under him. Grant is a ____ manager. top middle front-line first-line financial

middle

Although departmentalization may be determined within an organization on the basis of one criterion, such as location, most organizations find ____ to be a more efficient means of conducting business. decentralization more than one basis for departmentalization delegation of authority centralization managerial decision making

more than one basis for departmentalization

Cisco Systems manufactures computer hardware, uses software programs, and provides networking services to customers. As a result, Cisco uses research implementation. more than one production process. a complex magnitude of change. basic research applications. multiple outputs.

more than one production process.

A manager who hears employees gossiping about him and attempts to stop the gossip by enacting rules against spreading rumors, gossip, and discussions about the company will most likely fail. ​terminate the company grapevine. ​increase employees' freedom of speech. ​make employees happy.

most likely fail.

The two managerial functions that compose the process of directing an organization are planning and organizing. goal setting and planning. leading and organizing. motivating and leading. planning and leading.

motivating and leading.

It is important for a manager to understand the ____ of subordinates in order to encourage effective performance. control needs leadership skills standards financial needs motivations

motivations

A manager with few subordinates is said to have a narrow span of control. flat organizational structure. managerial hierarchy. matrix structure. wide span of control.

narrow span of control.

Galvin Corporation provides institutional food facilities with bread and other baked goods. The company does not actually produce or market the bread, and it has very few employees, most of whom are top executives or clerical workers. Galvin Corporation has a(n) ____ organizational structure. matrix line-and-staff network informal line

network

Many online companies strive to have a corporate culture based on trust and friendship among employees, a strong commitment to the company, and a relaxed and informal atmosphere. This is a ____ culture. communal fragmented networked family mercenary

networked

At Silver Paper's company meeting in August, the owner states that the company will increase its sales of Christmas cards by 50 percent over last year's sales. This statement is called a(n) goal. mission. strategy. objective. tactical plan.

objective.

Specific statements detailing what the organization intends to accomplish over a short period of time are called planning statements. strategies. control statements. objectives. goals.

objectives.

As a new manager for Sears, Peter is unwilling to delegate work. He realizes that, although he can delegate assignments to others, he cannot delegate his power to carry them out. authority obligation to see that tasks are completed. responsibility to carry out assignments. function to complete tasks.

obligation to see that tasks are completed.

The choice of a particular location for production facilities depends solely on the transportation costs from suppliers. depends entirely on the availability of skilled and unskilled workers. is based entirely on the geographic locations of suppliers of parts. depends mainly on the arrangement of machinery, equipment, and personnel. often involves balancing the variables.

often involves balancing the variables.

A timeline for a strategic plan can be as long as 10 years. However, the timeline for a strategic plan for a company is generally a maximum of one year. a minimum of one year. one to two years. five years. seven years.

one to two years.

Harrington Golf Co. states that it will double its employee staff and decrease its advertising budget by 25 percent in order to keep up with its high customer demand. This is part of its ____ plan. strategic tactical contingency operational long-term

operational

If Kmart states that it is going to spend $100 million in advertising in the upcoming year to help increase its market share, it is explaining part of its ____ plan. tactical operational strategic contingency directional

operational

A(n) ____ is a type of plan designed to implement tactical plans. strategy mission operational plan contingency plan management objective

operational plan

The objective of ____ is to decide on the amount of products or services each facility will produce during a specified period of time. design planning strategic planning operational planning capacity planning output specification

operational planning

All of the managerial activities in which managers engage for the purpose of creating goods and services are known as ____ management. personnel operations production site plant

operations

Greg is in charge of making sure the raw steel brought into his company's factory is turned into high-quality bearings for sale to customers. Greg is a(n) ____ manager. marketing operations productivity middle finance

operations

Heather is in charge of ensuring that the processes at her bank run smoothly so that the business will be able to provide its services efficiently and effectively. Heather is a(n) ____ manager. marketing administrative human resources operations financial

operations

Managers who create and manage systems that convert resources into goods and services are known as ____ managers. administrative financial marketing operations human resources

operations

A positive problem may be viewed as a(n) discrepancy. alternative. opportunity. symptom. unimportant matter.

opportunity.

Ted Thompson is responsible for two departments that continually set conflicting goals. Ted must get involved in ____ to achieve some sort of balance between those goals. optimization maximization planning controlling organizing

optimization

The number of layers in the organizational structure of Dayton Hudson Corporation indicates the company's chain of command. organizational height. line authority. organizational structure. management hierarchy.

organizational height.

The number of layers, or levels, in a firm is referred to as the firm's organizational structure. managerial hierarchy. cluster structure. organizational height. bureaucratic structure.

organizational height.

When JCPenney first decided to sell its merchandise online, the manager in charge of the process had to hire a technical staff to create the website, gather other resources necessary for the project, and ensure the site would be introduced in an effective and efficient manner. This is a description of the manager's ____ function. planning organizing goal-setting motivating controlling

organizing

Grouping resources and activities to efficiently and effectively accomplish a result is called planning. organizing. directing. controlling. goal setting.

organizing.

Gary Downs recently has noticed that the plant he is managing is delivering only 30 percent of its products on time. To determine what is causing the problem, he assembles the various department heads and the plant supervisor to get their input on the matter. Although the ultimate responsibility is his, he has no difficulty in delegating decision-making authority to any member of this group. This style of leadership suggests that Gary is a(n) ____ leader. Gary Downs recently has noticed that the plant he is managing is delivering only 30 percent of its products on time. To determine what is causing the problem, he assembles the various department heads and the plant supervisor to get their input on the matter. Although the ultimate responsibility is his, he has no difficulty in delegating decision-making authority to any member of this group. This style of leadership suggests that Gary is a(n) ____ leader. participative authoritative autocratic passive dependent

participative

The leadership style advocating that a leader involve subordinates in most decisions as well as the assignment of tasks is called laissez-faire. hands-off. existential. authoritarian. participative.

participative.

An outline of the actions an organization intends to take to accomplish its goals and objectives is called its policy. plan. organization function. mission. control function.

plan.

The executives and operations specialists for Hyster, an industrial equipment manufacturer, meet and determine the operational plan for the next two years. Two years is Hyster's planning time frame. goal outlook. operational time plan. span of operational management. planning horizon.

planning horizon.

The period of time over which an operational plan will be in effect is known as a planning horizon. fiscal period. quality circle. process layout. research period.

planning horizon.

Authority and ____ are synonymous terms. power responsibility duty delegation accountability

power

Implementing a decision requires time, planning, and optimization. a combination of alternatives. maximization. brainstorming. preparation of personnel.

preparation of personnel.

When different sequences of operations are required for creating small batches of different products, the type of design or layout used is the product design. product layout. process layout. quota layout. output layout.

process layout.

An industrial company contacts Caterpillar to design a specific type of equipment for use in its manufacturing facility. If Caterpillar accepts this offer, the two companies will have to create a set of specifications from which the product can be made. This process is called a product line. development and implementation. design planning. product design. capacity planning.

product design.

When Taco Bell determines what different food items it will offer on its menu and how many it will offer, it is deciding its capacity. design planning. product design. product life cycle. product line.

product line.

General Motors has separate divisions for Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac. This is an example of departmentalization by function. location. customer. product. model.

product.

Billy is in charge of obtaining the flour, sugar, and other ingredients needed for her employer, Baker's Café. Billy is in charge of procurement. corporate buying. purchasing. inventory control. shopping.

purchasing.

Deborah works for Northrop Grumman Corporation. She is assigned to a group of employees who work on solving quality issues the company is facing. Deborah participates in a(n) quality circle. employee group. total quality management program. inspection control group. quality review committee.

quality circle.

American major appliance manufacturers have recently adopted a strategy that calls for better quality in their products. One method of implementing this strategy at the operations level is through innovation circles. a Gantt chart. PERT. quality circles. another layer of resourceful managers.

quality circles.

Sarah regularly spends an entire working day ensuring that goods and services are produced in accordance with design specifications. Obviously ____ is important in her company. product design design planning quality control inventory control operations control

quality control

Companies that emphasize the importance of output inspection and quality circles are making an effort to improve production standards. operations control. inventory control. preventive maintenance. quality control.

quality control.

The process of checking and testing products to ensure that they meet specifications is called inventory control. quality control. quality inspection. assurance. check pointing.

quality control.

Steinway, a company that produces concert quality grand pianos, has ivory in storage waiting to be made into piano keys. This ivory is classified as finished-goods inventory. materials requirements planning. raw-materials inventory. work-in-process inventory. raw supplies.

raw-materials inventory.

Analytical skills give a manager the ability to identify problems creatively, generate _____ alternatives, and select the "best" alternative to solve problems. reasonable ​perfect ​conflicting ​obscure

reasonable

To produce a BMW sport-utility vehicle, an operations manager must engage in all of the following activities except recruitment of human resources. control of product quality. effective use of planning. inventory management. control of production costs.

recruitment of human resources.

A set of activities intended to identify new ideas and technical advances that may result in new goods and services is called research and development. operations management. design planning. product design. horizon planning.

research and development.

Dana is assigned to create a training program for newly hired mortgage loan officers. She has the ____ to complete this assignment. authority delegation network responsibility accountability

responsibility

One's duty to do a job or perform a task is called authority. accountability. responsibility. delegation. obligation.

responsibility.

FMS allows a company to combine ____ into a single system. people and robotics robots and digital personal computers robotics and computer-integrated manufacturing people and materials robots and materials

robotics and computer-integrated manufacturing

Ford and Xerox are two companies that have begun moving away from strict job specialization to alleviate employee motivation problems. Each company has adopted a job design alternative that involves workers in a wider variety of tasks. The method they have employed is known as job enlargement. enrichment. generalization. rotation. substitution.

rotation.

Workers at the pharmaceutical company, Eli Lilly are less likely to become bored or dissatisfied with their jobs because Eli Lilly practices job enlargement. rotation. enrichment. generalization. substitution.

rotation.

Managers should avoid satisficing in the ____ stage of the managerial decision-making process. selecting an alternative identifying the problem or opportunity implementing and evaluating the solution satisfying the customer generating alternatives

selecting an alternative

The American economy is now characterized as a(n) ____ economy. industrial centralized service stagnant bureaucratic

service

Determining how many subordinates will report to each manager gives an organization its chain of command. span of management. degree of centralization. nature and degree of departmentalization. degree of specialization.

span of management.

The head of the marketing department at CBS Environmental, Inc. supervises twelve people in her department. This represents her chain of command. degree of specialization. level of authority. span of management. nature and degree of departmentalization.

span of management.

Ted Landry finds he has less and less energy to go to work each day. On average he misses two days a week. Ted may be suffering from boredom, which is one negative side effect of job rotation. enrichment. specialization. enlargement. enhancement.

specialization.

The various tasks in IBM's manufacturing plant are arranged so that one worker draws the wiring, another strengthens the wires, a third cuts them, a fourth inserts them, and a fifth seals them together. This is an example of job rotation. redesign. specialization. enrichment. enlargement.

specialization.

Human resources is a(n) ____ type of job, so it does not fit directly into the chain of command. line staff advisory top management authoritative

staff

The legal affairs attorney working for Intel would most likely occupy a(n) vice president position. high position in the chain of command. staff position. nonessential position. authoritarian position.

staff position.

A group of managers from various departments is in charge of evaluating the performance of the staff employees every year. This is a(n) ad hoc committee. permanent committee. task force. standing committee. organizational review committee.

standing committee.

A relatively permanent committee charged with performing some recurring task is called a(n) cluster structure. ad hoc committee. informal group. task force. standing committee.

standing committee.

The just-in-time inventory system focuses on minimizing scheduling. materials resource planning. stock-out costs. customer complaints. storage and holding costs.

storage and holding costs.

The broadest set of plans developed as a guide for major policy setting and decision making is called a(n) management process. strategic plan. contingency plan. mission. objective.

strategic plan.

​Hallmark has a line of cards that is made of recyclable materials and has flower seeds pressed into the paper so once a person has read the card, they can plant it. With this new product line, Hallmark is attempting to achieve _____. sustainability ​productivity ​displacement ​flexibility

sustainability

​Starbucks strives to make its cups from recyclable materials, to give back to the communities where it has stores, to aid the communities where the coffee beans are harvested, and to reduce its environmental impact. Starbucks promotes sustainability. ​productivity. ​displacement. ​flexibility.

sustainability.

Kraft combines elbow macaroni, cheese, and cardboard to make packages of Kraft Macaroni and Cheese. This most closely resembles a(n) ____ process. analytical assembly combined synthetic quantitative

synthetic

When Black & Decker manufactures its wide array of tools, it is using a(n) ____ process. analytical qualitative synthetic assembly conversion

synthetic

A(n) ____ is a smaller-scale plan developed to implement a strategy. strategy goal mission tactical plan objective

tactical plan

Generally speaking, a narrow span of management implies that the height of the organization will be ____; a wide span of management implies that the height of the organization will be ____. tall; flat tall; sloped flat; tall short; tall long; short

tall; flat

A(n) ____ has been appointed to investigate the pending merger of your company and the Tandy Corporation. standing committee task force standing force ad hoc committee grievance committee

task force

A committee created to investigate a major problem or pending decision is called a(n) ad hoc committee. standing committee. task force. work team. venture committee.

task force.

Executives from several departments at Ford Motor Company were brought together recently to discuss the advantages and disadvantages of acquiring Jaguar. This type of committee is known as a(n) task force. standing committee. liaison committee. ad hoc committee. matrix team.

task force.

Michael Dell is the CEO of Dell, a large computer manufacturer. He started the company himself, building and selling computers during college. Although he does not frequently use these skills now, it is likely that he has good ____ skills. conceptual interpersonal employee administrative technical

technical

Specific skills needed to accomplish specialized activities such as drafting and welding are known as ____ skills. standard operating tactical interpersonal conceptual technical

technical

Managerial communication skills include both oral and written and involve the ability to speak, listen, and write effectively. ​the ability to read and write effectively. the ability to read, write, and speak effectively. ​the ability to write and speak effectively.

the ability to speak, listen, and write effectively.

n a recent task force meeting, the human resources manager gave many reasons why the organization needed some specialization. In so doing, she stated that a worker who learns only a specific, highly specialized task becomes inefficient at that task. a worker who does the same job over and over loses time changing from one operation to another. the more specialized the job, the harder it may be to design specialized equipment for those doing it. the more specialized the job, the easier it is to train new employees when an employee quits or is absent. the job of most organizations is simply too large for one person to handle. Several people carrying out different functions are needed.

the more specialized the job, the easier it is to train new employees when an employee quits or is absent.

​Jenna is giving a speech on job specialization for her business class. She will most likely tell the class that one of the reasons for job specialization is the organization is too large for one person to do everything. ​special skills are not needed to complete specialized tasks. ​a worker repeating the same job becomes bored and slows down the operation. ​not everyone wants to do the same thing.

the organization is too large for one person to do everything.

The number of workers who report directly to one manager is called authority. accountability. responsibility. the span of management. centralization.

the span of management.

During the period after World War II, the United States was the most productive country in the world for approximately ____ years. five ten twenty thirty fifty

thirty

As a scheduler, Wanda is concerned with the sequence of workstations that the materials will follow. This sequencing is called product flow. critical path. inventory control. routing. timing.

timing.

​Digital communications are used by managers to manage an organization effectively and to stay informed. ​to eavesdrop on employees. ​to track company vehicles to prevent employees from loitering. ​to prevent theft of company property.

to manage an organization effectively and to stay informed.

Common job titles associated with ____ management include president, vice president, and chief executive officer. first-line middle top executive functional

top

The CEO's role at General Electric requires him to spend a great deal of time on planning. This indicates that he is a(n) ____ manager. administrative operations top middle first-line

top

For a total quality management program to be effective, it must be treated as a top priority by the human resources director. line management. first-line management. middle management. top management.

top management.

​Prioritizing by top management and coordination of the specific elements so they work in harmony with each other are required for _____ to be effective. total quality management (TQM) ​institutional communications ​industrial relations ​negotiation strategies

total quality management (TQM)

​Lower operating costs and higher return on sales and on investments are the benefits of total quality management (TQM). ​communication skills. ​technical skill development. ​financial oversight.

total quality management (TQM).

When a business firm implements several programs to encourage prompt and courteous customer service, employee participation, and better coordination with suppliers, it is making an effort to use quality concern focus. total quality management. quality improved planning. quality development. quality commitment.

total quality management.

​Freddie's Auto Service stations were fined for failure to provide the services billed and other things. After being fined, Freddie's refocused its business and began a coordination of efforts directed at improving customer satisfaction, increasing employee participation in decision making, improving supplier partnerships, and facilitating an organizational atmosphere of continuous quality improvement known as total quality management. ​total quality commitment. ​quality improvement planning. ​customer satisficing.

total quality management.

Carl Smith overheard that Joe Dunn was blowing the whistle on managers at XYZ Company and that a full story would appear in Sunday's paper. Carl quickly alerted the managers, who were able to stop the newspaper from printing the article. This is an example of managers' ignoring the grapevine. involving the grapevine as a useless communication network. trying to eliminate the grapevine. using the grapevine as a managerial tool. reducing the credibility of information from the grapevine.

using the grapevine as a managerial tool.

If a good or service satisfies a human need, it has value. focus. magnitude. form. utility.

utility.

A manager with many subordinates is said to have a tall organizational structure. narrow span of control. managerial hierarchy. wide span of control. matrix structure.

wide span of control.

Products that have been partially completed but require further processing are known as ____ inventory. raw-materials work-in-process finished-goods component-parts processed-goods

work-in-process

A group of athletic shoes in a shoe factory are partially completed but still lack their innersoles and shoestrings. These shoes are classified as work-in-process inventory. materials inventory. partially-controlled inventory. finished-goods inventory. ready for sale.

work-in-process inventory.

​Machines are used for almost all of the computer chip manufacturing process. These companies are said to be _____ companies. ​automated ​lean manufacturing productive ​anti-human

​automated

​_____ are used to assemble machinery, weld joints, and a variety of other tasks by manipulating materials and tools. robots tools ​droids ​computer-aided design machines

​robots

Today approximately ____ percent of American workers are employed in service industries. 28 47 87 90 94

87

​The author of the book, The Wealth of Nations, which emphasized the power of specialization, was Adam Smith ​John Smith ​Fred Smith ​Wilber Smith

Adam Smith

Robin Baker, a top manager at Westinghouse, has recently been put in charge of a new multi-million dollar project. She selects several individuals to participate in this effort and assigns each certain tasks to perform. Furthermore, she has set up a group hierarchy and indicated that all decisions must be routed through this chain of command. Robin is exhibiting which leadership style? Democratic Autocratic Laissez-faire Participative Despotic

Autocratic

Which of the following is a TQM tool? Organizing Leading Benchmarking Planning SWOT analysis

Benchmarking

Nancy Malone works for a California-based computer manufacturer. According to Nancy, the time required to develop a new product has decreased because of the increased use of ____ software. CAB CAD CAP CAM FMS

CAD

__ culture is represented by friendship, commitment, and high focus on performance. Corporate Mercenary Networked Fragmented Communal

Communal

____ programs are used to develop products. ​Computer-aided design (CAD) Computer-aided manufacturing (CAM) ​Computer-integrated manufacturing (CIM) ​Computer-generated mistakes (CGM)

Computer-aided design (CAD)

Liz Claiborne, Inc. has a system that combines the use of computers to aid in the development of products and the use of computers to plan and control manufacturing processes. What is this combined system called? Computer-aided design Computer-integrated manufacturing Flexible marketing Computer-aided manufacturing Computer robotics

Computer-integrated manufacturing

When the management of a large grocery store heard that Walmart might be coming to town, they developed alternative courses of action they could take if their competitive landscape changed. What type of plan did they develop? Strategic Objective Contingency Tactical Operational

Contingency

The investment decisions of many traders on Wall Street in the early 2000s led to the downfall of several investment companies, demonstrating that employee goals were not aligned with company goals. This indicates a failure of which basic managerial function? Planning Organizing Leading Motivating Controlling

Controlling

As Shelly Jones, manager of Sears, hands out customer questionnaires to get a better idea of customers' needs as well as their concerns, she is exercising which facet of total quality management (TQM)? Employee participation in improving the quality of work Customer satisfaction Strengthening relationships with suppliers who are also customers Continuous quality improvement Strong leadership skills

Customer satisfaction

____ is the process of developing a set of possible alternative solutions and choosing one alternative from among that set. Decision making Leadership Implementing Leading and motivating Evaluating and regulating

Decision making

Which of the following is not one of the steps in operational planning? Adjusting products or services to meet demand Designing new products or services Selecting a planning horizon Comparing market demand with capacity Estimating market demand

Designing new products or services

Which of the following is not considered a communication skill that may be essential in management success?. Writing e-mails Creating sales reports Displaying genuine compassion Making sales presentations Conducting interviews

Displaying genuine compassion

By holding focus groups with employees, Robert Keening of Snow Bird Airlines is employing which aspect of total quality management? Democratic leadership Reaching consensus Customer satisfaction Obtaining feedback Employee participation

Employee participation

Which of the following is the objective of purchasing? Routinely replenish the stock. Ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost. Select suppliers. Determine the facility's level of output. Control inventory and product quality.

Ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost.

A broad set of plans that outlines alternative courses of action when problems develop is called a strategy. True or False?

False

A highly centralized organization usually means that lower-level employees have the opportunity to make decisions regarding the best way to accomplish their assigned tasks. True or False?

False

A manager with strong conceptual skills is able to think well in concrete terms. True or False?

False

A process layout is used when all products undergo the same operations in the same sequence. True or False?

False

A service economy is one in which more effort is devoted to the production of goods than to the production of services. True or False?

False

A supervisor may delegate all accountability to subordinates. True or False

False

According to management experts, increased government regulations have increased productivity among American workers. True or False?

False

Accountability is the power within an organization to accomplish an assigned job or task. True or False?

False

After years of research, theorists have decided that the optimal span of management is one manager per twenty employees. True or False?

False

All large firms maintain complete and detailed organization charts because it is important to maintain a clear line of authority. True or False?

False

An advantage of decision-making by a committee in lieu of an individual is that committee deliberations are always faster than individual decisions. True or False?

False

An auto repair shop is an example of a fixed-position layout. True or False?

False

An informal group in an organization is formed by the line managers of that organization. True or False?

False

An informal organization can be shown on a formal organization chart. True or False?

False

An interpersonal role is one in which the manager must either gather or provide information. True or False?

False

An organization in which management consciously attempts to spread authority to the lower organizational levels is said to be centralized. True or False?

False

An organization's tactical plan is its broadest set of plans developed as a guide for major policy setting and decision making. True or False?

False

Another term used to refer to a formal organization's network of communication is grapevine. True or False?

False

As a manager carries out his or her functions, the first step is to control, the second is to organize, and the third is to plan. True or False?

False

CAD stands for "computer-assisted development programs." True or False?

False

Capacity to a service business means something completely different from capacity to a production business. True or False?

False

Certain techniques can help generate creative alternatives, but those techniques do not include brainstorming. True or False?

False

Committees are necessary in an organization but do not offer any advantages over individual decisions and actions. True or False?

False

Common titles for middle managers are office managers and supervisors. True or False?

False

Common titles for middle managers are office managers and supervisors. True or False?

False

Companies like Southwest Airlines and Saturn attribute a great deal of their success to their strong corporate cultures, which is inaccurate. In reality, research has determined that, over time, corporate culture has only a marginal influence on firm performance. True or False?

False

Conceptual skills refer to the ability to deal effectively with other people, both inside and outside the organization. True or False?

False

Cross-functional teams are not very effective structures to use when developing a new product or service. True or False?

False

Financial managers create and manage the systems that convert resources into goods and services. True or False?

False

Goals are established for only one year at a time. True or False?

False

Goals are set only for top-level management. True or False?

False

Green Sports Incorporated is a small start-up company that manufactures and markets sports equipment made from recycled materials. Green Sports is best suited to base its departmentalization on product. True or False?

False

Improved customer satisfaction can include developing good working relationships with suppliers, developing self-managed work teams, and improving quality of employee work. True or False?

False

In order to compete in the global economy, U.S. firms have focused on increasing prices and improving the bottom-line profit amount. True or False?

False

Increased business investment in facilities and equipment usually results in lower employee productivity. True or False?

False

Informal groups are never powerful within an organization. True or False?

False

It is important that every company use only one departmentalization basis. True or False?

False

Managerial decision making involves a four-step process that begins with generating alternatives and ends with selecting an alternative. True or False?

False

Managers within a line structure are typically known as staff managers. True or False?

False

Middle managers occupy the management level that falls between the operating employees and first-line managers. True or False?

False

Nearly all experts and academics in the field of leadership agree that a participative leadership style is the best within an American organization. True or False?

False

Of the three styles of leadership, the most effective is the participative style. True or False?

False

Older, larger firms producing and selling various products base departmentalization on function. True or False?

False

Operations managers are concerned strictly with the production of goods, not services. True or False?

False

Over the last few years, most U.S. firms have regained the dominant competitive positions they had previously held. True or False?

False

Purchasing personnel need not worry about a tiny difference in price when a large quantity is being bought. True or False?

False

Quality control is the process of ensuring that materials are at the right place at the right time. True or False?

False

Robots are especially effective in carrying out creative tasks and assignments. True or False?

False

Since ISO 9000 quality standards were developed in Switzerland and affect only European firms, they don't apply to firms in the United States doing business in Europe. True or False?

False

Since computers have been invented, materials requirements planning (MRP) is an outdated method of controlling inventory. True or False?

False

Staff managers are part of the chain of command of an organization. True or False?

False

Strengths and weaknesses are the external factors of a company SWOT analysis. True or False?

False

Texaco uses a synthetic process when it refines crude oil. True or False?

False

The ability to see the big picture is at the heart of a manager's interpersonal skills. True or False?

False

The ability to write and speak effectively within an organization is an example of interpersonal skills. True or False?

False

The control function includes three steps: setting standards, measuring performance, and recycling the system. True or False?

False

The cost of implementing a total quality management program normally results in lower returns on sales and investments. True or False?

False

The cost of running out of inventory is referred to as a holding cost. True or False?

False

The goal of applied research is scientific advancement, without regard for its potential uses in the development of goods and services. True or False?

False

The major objective of quality control is to see that the organization produces no imperfect products. True or False?

False

The most appropriate, short-term committee to provide a recommendation for a health care benefit plan for a medium size corporation would be a task force. True or False?

False

The primary functions a manager performs include planning, solving problems, leading and motivating, and controlling. True or False?

False

The process of establishing an organization's major goals and objectives and allocating the resources to achieve them is called tactical planning. True or False?

False

The term magnitude is used to describe the number of production processes that are used to produce products or services. True or False?

False

To regain market share, many American firms have lowered quality standards. True or False?

False

Top managers probably make up the largest group of managers in most organizations. True or False?

False

When authority is concentrated at the top level of management, the organization is said to be decentralized. True or False?

False

When firms use inspection to monitor quality, only the finished product is examined for defects or potential problems. True or False?

False

When machines and equipment do most of the work in a manufacturing plant, it is referred to as a mechanical-intensive process. True or False?

False

When managers attempt to spread authority widely in the lower levels of an organization, they are attempting to centralize authority. True or False?

False

Accounting and investments are areas within which management field of specialization? Administration Operations Marketing Finance Human resources

Finance

____ resources are used to meet obligations to investors and creditors. Tangible Intangible Material Financial Human

Financial

___ consist(s) of goods that are awaiting shipment to customers. Raw-materials inventory Work-in-process inventory Finished-goods inventory Supplies Controlled inventory

Finished-goods inventory

A Boeing factory in Everett, Washington, manufactures 787 Dreamliner jet aircrafts. What type of layout is most likely in this factory? Output Fixed-position Product Process Cell-rotation

Fixed-position

Which of the following statements is false? Quality and productivity have often been viewed as conflicting goals. Over the years, a number of managers have realized that quality is an essential ingredient of the good or service being manufactured. Quality has become an overall approach to doing business. For most businesses, quality costs too much money. Making products right the first time reduces many of the rejects and much of the rework.

For most businesses, quality costs too much money.

The techniques of brainstorming and "Blast! Then Refine" would be helpful to use during which step in the managerial decision-making process? Generating alternatives Implementing the solution Evaluating the outcome Selecting an alternative Identifying the problem or opportunity

Generating alternatives

Which of the following is not considered a basic step of benchmarking? Forming a benchmarking team Collecting and analyzing data Acting on results of data collection Goal setting Identifying objectives

Goal setting

Which of the following statements is true? ISO is Greek for "unacceptable." ISO 9000 sets guidelines for quality management procedures. ISO 9000 is accepted more in Japan than in the United States or Europe. ISO 14000 is a system used to notify customers who have purchased unsafe products from manufacturers in foreign nations. Although ISO 9000 was popular in the early 1990s, it has been replaced with ISO 20000.

ISO 9000 sets guidelines for quality management procedures.

When looking at the company's sales figures, Martha sees that her salespeople have not achieved high sales in Japan. She is at what stage in the managerial decision-making process? Evaluating the problem Generating a problem Selecting a solution Identifying the problem Implementing the problem

Identifying the problem

As Kyle conducts his annual evaluations of his employees, he notices that Connie and Debbie have both been less productive since they were relocated in the same department. Kyle is in what stage of the managerial decision-making process? Generating alternatives Conducting evaluations Selecting an alternative Identifying the problem or opportunity Implementing and evaluating the solution

Identifying the problem or opportunity

Leadership can best be defined as the ability to identify problems. relate to others influence others. generate reasonable solutions to problems. deal effectively with others.

Influence others.

Which of the following is not one of the four basic forms of organizational structure? Informal Network Line Line-and-staff Matrix

Informal

A manager with ____ skills has the ability to deal effectively with people inside and outside the organization. functional diagnostic conceptual Interpersonal technical

Interpersonal

The ____ is an award given by the president of the United States to organizations that apply and are judged to be outstanding in specific managerial tasks. Total Quality Management Award Malcolm Baldrige National Quality Award Boeing Productivity Award National Quality Circle Award Horatio Alger Award

Malcolm Baldrige National Quality Award

Which of the following is considered a downside of a line structure for an organization? The vast array of expertise brings a wide array of knowledge to a line structure. Slow decision-making by managers is typical of a line structure. Confusion about who is in charge causes grave drawbacks for this structure. Boredom and dissatisfaction is commonplace for managers in a line structure organization. Managers are responsible for a wide range of activities and, therefore, must have vast knowledge about all of these activities.

Managers are responsible for a wide range of activities and, therefore, must have vast knowledge about all of these activities.

Which of the following statements about accountability is false? Managers create accountability. Managers delegate accountability. Accountability is the obligation of the worker. Creating accountability is a step in the delegation process. Managers are accountable for tasks they assign.

Managers delegate accountability.

A large computer company provides well-being seminars free to its employees and provides them with a fitness facility to encourage physical and mental health. The company hopes this will create a satisfying work environment. Which managerial function does this involve? Motivating Organizing Controlling Planning Compensating

Motivating

Which organizational structure is also called a virtual organization? Matrix Informal Line-and-staff Network Line

Network

Which of the following items is not a part of planning? Strategic plan Tactical plan Objective plan Contingency plan Operational plan

Objective plan

What portion of the ideas for new products, refinements, and extensions ever gets to the production stage? About one-third At least half The majority Only a few About two-thirds

Only a few

Which of the following is external to a firm and exists independently of a company? Strengths Weaknesses Goals Core competencies Opportunities

Opportunities

____ is called the "first" management function because all other management functions depend on it. Leading Organizing Controlling Planning Motivating

Planning

What is the most significant difference between leaders and assembly line workers in regard to affecting the behavior of others? Communication skills Interpersonal skills Power Decision-making Technical skills

Power

Cory is at the top of her company's organization chart. Which of the following is most likely to be her job title? Executive manager President Manager Vice president, operations Organization leader

President

​Which of the following statements is false in relation to choosing a supplier? Purchasers should consider price, quality, and reliability when choosing a supplier. Purchasers should always be on the lookout for new suppliers. Purchasers should ensure that the credit terms a supplier offers are agreeable to their company. Purchasers should consider the quality of life for employees and management in the proposed location. Purchasers should focus on having only one supplier for each material needed.

Purchasers should focus on having only one supplier for each material needed.

When New Coke was introduced, it failed miserably in the market. After removing it from its product line, what did Coca-Cola most likely do with the capacity devoted to producing this product? Shift the excess capacity to the production of other soft-drink products Eliminate the excess capacity by selling all New Coke facilities Fire all the employees involved with the production of New Coke Subcontract the production of New Coke to another producer Decrease the work week of its production line employees

Shift the excess capacity to the production of other soft-drink products

Which of the following products is most likely to require a fixed-position layout? Automobile Canoe Clothing Ship Computer

Ship

____ is a disciplined approach that relies on statistical data and improved methods to eliminate defects from a firm's products and services. Six Sigma Quality Magic The National Quality Program The Total Management Program Employee Participation Now Program

Six Sigma

Which of the following is not a step in the decision-making process? Solving the identified problem Implementing and evaluating the solution Identifying the problem or opportunity Selecting an alternative Generating alternatives

Solving the identified problem

What are the two types of costs associated with inventory? Holding costs and selling costs Stock-out costs and holding costs Shipping and handling costs and holding costs Overstock costs and stock-out costs Holding costs and tracking costs

Stock-out costs and holding costs

As a manager at Johnson Electric, an armature motor manufacturer, Charles is responsible for quality. As he carries out his controlling function, Charles sets the standard for the number of defective parts per million, and then he gathers the data measuring the actual performance. What third step of the control function should Charles take next? Change the standards to match the actual performance. Determine the cause of the discrepancy. Begin planning again. Take corrective action. Motivate his employees.

Take corrective action.

What is a disadvantage associated with the participative style of leadership? It does not give employees the opportunity to express their views. The decision-making process is time-consuming. Employees are usually unmotivated to carry out decisions. The communication is always from top to bottom. There is very limited structure involved.

The decision-making process is time-consuming.

Which of the following does not prevent managers from delegating? They are so disorganized that they cannot assign work effectively. They want to make sure the work gets done properly. They usually have few responsibilities and therefore little to delegate. They fear that the subordinate will do excellent work and become a threat to the manager. They know that they are still ultimately responsible for the work.

They usually have few responsibilities and therefore little to delegate.

Which of the following is a disadvantage of departmentalization by function? Supervision is very difficult because workers are involved in different types of activities. This method tends to emphasize the department rather than the organization as a whole. It causes duplication of the same specialized activities throughout the organization. This method requires an extremely large administrative staff. Coordination is very complex because of the way job duties are distributed.

This method tends to emphasize the department rather than the organization as a whole.

A common planning horizon for operational plans is one year. True or False?

True

A labor-intensive technology is one in which people must do most of the work. True or False?

True

A manager's reluctance to delegate may stem from his or her belief that the subordinate will do the work too well. True or False?

True

Accounting and investments are specialized areas within financial management. True or False?

True

Achieving a balance between competing and conflicting goals is called optimization. True or False?

True

Adam Smith, author of The Wealth of Nations, is widely credited with being the first person to emphasize the power of specialization. True or False?

True

All the activities managers engage in to produce goods and services are called operations management. True or False?

True

Among an ad hoc committee, a standing committee, and a task force, only a standing committee is relatively permanent. True or False?

True

An analytical process breaks raw materials into different component parts. True or False?

True

An aspect of the strategic planning process is to allocate resources to achieve an organization's goals and objectives. True or False?

True

An assembly line at a Rubbermaid production facility is an example of a product layout. True or False?

True

An organization is a group of two or more people working together to achieve common goals. True or False?

True

Common names for top-level managers are vice president, chief executive officer, and chief operating officer. True or False?

True

Controlling is the process of evaluating and regulating ongoing activities to ensure achievement of goals. True or False?

True

Core competencies of an organization are the aspects that a company performs well. True or False?

True

Deciding on the product line involves balancing customer preferences and production requirements. True or False?

True

Decision making involves identifying the problem or opportunity, generating alternatives, selecting an alternative, and implementing and evaluating the solution. True or False?

True

Delegation is the act of distributing work and power to subordinates. True or False?

True

Dell Computer attempts to earn a profit by manufacturing premium-quality computers. This action represents its mission. True or False?

True

Departmentalization by location allows an organization to readily respond to the unique demands of each geographic area. True or False?

True

Development and implementation are research activities undertaken to put new or existing knowledge to use in producing goods and services. True or False?

True

First-line managers spend most of their time working with and motivating their employees, answering questions, and solving daily problems. True or False?

True

Ford Motor Company's marketing department has recently been restructured to implement a brand management strategy. This is an example of departmentalization by product. True or False

True

Foreign competition, poor financial performance, and more demanding customers have encouraged businesses to place more emphasis on quality. True or False?

True

Formal leaders have legitimate power that is based on their position within the organization. True or False?

True

In a SWOT analysis, opportunities are considered external to the organization. True or False?

True

In a SWOT analysis, opportunities are considered external to the organization. True or False?

True

In the entrepreneurial style of leadership in an organization, leaders take responsibility for the success or failure of their firm. True or False?

True

It is important for managers to be aware of the informal groups that exist in an organization. True or False?

True

Job rotation is the systematic shifting of employees from one job to another. True or False?

True

Job specialization is the separation of all organizational activities into distinct tasks and the assignment of different tasks to different people. True or False?

True

Making a successful sales presentation or holding an effective press conference takes quality communication skills. True or False?

True

Management is the process of coordinating people and other resources. True or False?

True

Materials that will become part of a product during the conversion process are called raw materials. True or False?

True

Middle managers implement the strategy developed by top management. True or False?

True

Organizing is the process of grouping resources and activities efficiently and effectively to accomplish an end result. True or False?

True

Product extension and refinement are expected results of a firm's development and implementation effort. True or False?

True

Productivity is a measure of output per unit of time per worker. True or False?

True

Purchasing personnel should check the reliability of potential suppliers as well as suppliers' ability to meet delivery schedules. True or False?

True

Quality circles have been used successfully to solve product defect problems in U.S. firms. True or False?

True

Target has several layers of management in between the entry-level management position and CEO. This implies that the span of management for each manager is relatively narrow and the organizational height of Target is tall. True or False?

True

Technical skills are more important to the first-line manager than to other managers. True or False?

True

The amount of products or services an organization can produce in a given time is known as its capacity. True or False?

True

The effectiveness of a total quality management program is directly related to top management's commitment to its success. True or False?

True

The employees at the Ford production facility in Michigan work on an assembly line where each employee performs a specific task. This method of assembly-line production is a good example of job specialization. True or False?

True

The first step in benchmarking is to identify the objectives. True or False?

True

The four basic management functions are planning, organizing, leading and motivating, and controlling. True or False?

True

The four basic management functions are planning, organizing, leading and motivating, and controlling. True or False?

True

The inner rites, rituals, heroes, and values of a firm make up its corporate culture. True or False?

True

The major resource or resources that comprise the major input for a conversion process is often referred to as the focus. True or False?

True

The matrix organizational structure facilitates greater communication between employees. True or False?

True

The most common bases for departmentalization are by function, by product, by location, and by customer. True or False?

True

The process of managing inventories to minimize both holding costs and potential stock-out costs is called inventory control. True or False?

True

The responsibility for monitoring schedules to ensure that the work flows according to schedule is called follow-up. True or False?

True

The span of control is the number of subordinates who report directly to one manager. True or False?

True

The span of management plays a direct role in determining the organization's height. True or False?

True

The term "satisfice" describes solutions that managers choose that may only adequately solve a problem. True or False?

True

Using more than one basis for departmentalization is the rule rather than the exception for larger firms. True or False?

True

When a company successfully applies the just-in-time system, it minimizes its inventory storage costs. True or False?

True

When a manager has few subordinates, a narrow span of management exists. True or False?

True

When compared to total quality management, Six Sigma often has more top-level support, more training for employees, and more teamwork. True or False?

True

When manufacturing a product like a computer or an automobile, planning takes place both before anything is produced and during the production process. True or False?

True

When the matrix structure is used, employees report to more than one supervisor. True or False?

True

A situation in which machines and equipment do most of the work is known as high technology. quality control. a labor-intensive technology. an industrial installation. a capital-intensive technology.

a capital-intensive technology.

Most large organizations use departmentalization by product. departmentalization by location. departmentalization by customer. a combination of departmentalization bases. no departmentalization.

a combination of departmentalization bases.

A software manufacturer may seriously consider locating its facility in Silicon Valley because the great amounts of electricity that it will need will be readily available. the costs of construction and buildings are low in California. a highly skilled labor force with technology experience will be available. labor rates are likely to be lower in this part of the world than in any other. California is renowned for the exceptional tax benefits packages that it offers.

a highly skilled labor force with technology experience will be available.

A situation in which people do most of the work is called a quality circle. quality control. design planning. a labor-intensive technology. a capital-intensive technology.

a labor-intensive technology.

Delegation consists of giving a subordinate all of the following except responsibility. authority. accountability. a line position. both accountability and a line position.

a line position.

Wesley is a manager in an organization where a great deal of interaction is required between himself and his workers and new problems arise frequently. Wesley is likely to have a wide span of management. little authority to delegate. decentralized power. departmentalization by consumer. a narrow span of control.

a narrow span of control.

A group of similar products that differ only in relatively minor characteristics is called inventory. a product line. product design. design planning. inventory control.

a product line.

A locally owned and operated bakery with just one location is likely to have a short chain of command. a complex chain of command. an extensive advisory staff. a highly departmentalized structure. no organization chart.

a short chain of command.

A committee created for a specific short-term purpose is called a(n) task force. standing committee. ad hoc committee. informal group. organic structure.

ad hoc committee.

A committee was organized at Xerox to study the company's hiring, promotion, and compensation policies. The group will review corporate procedures in these areas for the next six months and disband thereafter. This type of committee is referred to as a(n) standing committee. task force. ad hoc committee. integrative team. liaison committee.

ad hoc committee.

Probably the most obvious advantage of a matrix structure is that of added flexibility. improved motivation. improved communication within the organization. more personal growth and development of employees. lower salary expenses; because people are doing more work, the organization does not need to hire as many people.

added flexibility.

The chief executive officer of Chrysler provides his organization with leadership and overall guidance, and he is generally responsible for interpreting the organization's mission. He would be most properly classified as a(n) ____ manager. administrative human resources operations marketing financial

administrative

Legal services and public affairs are ____ types of jobs, so they do not fit directly into the chain of command. specialized top management authoritative voluntary advisory

advisory

When line managers in an organization encounter issues that a staff member with specialized expertise can assist with, the staff member they consult with has ___ authority. advisory centralized functional line decentralized

advisory

When a lumber company takes timber and converts it into lumber, cardboard, and other paper products, the company is using an analytical process. extraction manufacturing. a synthetic process. an operations process. raw processing.

an analytical process.

​A business grapevine is best defined as an informal communications network. ​a vine that produces grapes. ​an electronic bulletin board. ​a formal means of disseminating information throughout the company.

an informal communications network.

When a manufacturer like ExxonMobil refines crude oil, that corporation is using a(n) ____ process. analytical extraction manufacturing refining synthetic

analytical

A group of design engineers for Ford Motor Company spends two months of summer in the Arizona desert researching fuel performance at extreme temperatures. Ford uses the results of these tests to improve the quality of its automobiles. The group of engineers is engaging in applied research. product design. basic research. design planning. horizon planning.

applied research.

R&D activities aimed at disclosing new knowledge that has some potential use are known as development and implementation. applied research. basic research. product design. design planning.

applied research.

A product layout is often referred to as a(n) fixed-position layout. output layout. fixed capacity. work-cell formation. assembly line.

assembly line.

A basic difference between line managers and staff managers is that line managers have ___ which staff managers rarely have. authority expertise decision-making skills experience responsibility

authority

Janet is a runner for a large law firm. Her duties include purchasing supplies for the copy room. Janet was given permission by the office manager to sign credit-card receipts when making purchases. Janet has been given ____ to use the firm's credit card. responsibility obligation authority staff centrality accountability

authority

Jeanine has formal power in the Coffee Lovers, Ltd. organization while Sam has informal power. One of the primary differences between Jeanine and Sam is that Jeanine has ____ within the organizations while Sam does not. security interpersonal power influence leadership authority

authority

Susan was given the responsibility for chairing a campus committee. To complete the delegation process, she should be given the ____ to carry out this responsibility. duty subordinates authority skills salary

authority

When all employees are exceedingly clear about what is expected from them, guidelines for task completion are clear and understood, and rules and regulations in fulfilling their duties are clearly defined, it is likely the ____ leadership style is in place. entrepreneurial democratic participative autocratic consultative

autocratic

The leadership style advocating that a leader makes all decisions and tells subordinates what to do and how to do it is called consensus. participative. democratic. existential. autocratic.

autocratic.

Productivity is the highest level of output for the best worker. average level of output per worker. lowest level of output for all hourly workers. average level of output for workers with at least five years of experience. average level of output for a randomly selected group of employees.

average level of output per worker.

A government-funded group of scientists is assigned to discover new knowledge and scientific advances. These scientists are not required to consider the potential use of this knowledge. This group is conducting development and implementation. research for product life cycles. applied research. academic research and development. basic research.

basic research.

Operations control includes all of the following except scheduling. inventory control. basic research. purchasing. quality control.

basic research.

Scientists at R&E Labs worked for two years on a project to eventually add more knowledge to the science of photography. But in a meeting with the board of directors last week, they had nothing new to report. This is always a risk with basic research. applied research. development and implementation. a lack of research. underfunded research projects.

basic research.

If Southwest Airlines closely evaluates the products and processes of United Airlines with the intent of improving quality among their own products and practices, Southwest is using SWOT analysis. long-term strategy. partnering strategy. benchmarking. goal establishment.

benchmarking.

​Comparing one's own company to the products, processes, or management practices of another for the purpose of improving quality is typical of benchmarking. comprehensive organizational analysis. ​SWOT analysis. ​stock market analysis.

benchmarking.

​Interpersonal skills permit successful managers the ability to deal effectively with other people both inside and outside the organization. ​within the organization. ​outside the organization. ​in other organizations.

both inside and outside the organization.

A doctor's office allows thirty minutes for each appointment. After taking a one-hour lunch break, the doctor's office has a(n) ____ of sixteen patients a day if it is open from 8:00 a.m. to 5:00 p.m. operating maximum service line capacity labor availability service plan

capacity

The amount of products or services an organization can produce in a given time is known as a product line. design planning. production. lead time. capacity.

capacity.

The number of customers that an Outback Steakhouse can serve at one time is the restaurant's capacity. product line. scope. size. service refinement.

capacity.

To determine the proper size for its new restaurant in Nashville, Tennessee, operations managers and marketing managers for Hard Rock Cafe worked together to determine the restaurant's ____. capacity. product line. required annual sales. lead time. production flow.

capacity.

Rockwood International needs to make risky decisions on a daily basis. Therefore, its managers are likely to centralize decision making. let lower-level managers make important decisions. train lower-level managers to make more decisions. decentralize authority. centralize rare skills.

centralize decision making.

Distinguishing between positions with direct authority and those that are support positions establishes an organization's chain of command. span of management. degree of centralization or decentralization. nature and degree of departmentalization. degree of specialization.

chain of command

​The ___ is the line of authority that extends from the highest to the lowest levels of the organization. chain of command ​organizational chart ​organization ​departmental conundrum

chain of command

Joel Green has been working at The Bicycle Superstore for about two weeks. This morning he noticed that the store's inventory on bicycle tire repair kits is out, but he is unsure of whom he should report to for approval to place an order for more kits. Joel is unclear about the chain of command. degree of specialization. level of authority. span of management. nature and degree of departmentalization.

chain of command.

Vice president, marketing⎯Regional sales manager⎯District manager⎯Sales supervisor represents a(n) organization chart. command hierarchy. corporate organization. chain of command. departmentalization.

chain of command.

Upon beginning her career at Davidson Inc., a small consulting firm, Stephanie Benjamin receives a copy of the firm's organization chart, which will demonstrate the firm's informal network of communication. clarify positions and report relationships within the firm. not be very useful because small firms don't usually adhere to a formal structure. probably be outdated because small firms are always changing. indicate the short-, medium-, and long-term goals of the company.

clarify positions and report relationships within the firm.

Mondell's lack of effective writing skills and his challenges in speaking to groups of people is causing stress in his job. He's becoming very aware that he needs to improve his ___ skills. managerial critical thinking conceptual interpersonal communication

communication

Large shoe manufacturing companies such as Nike and Adidas most likely use ____ to help design shoes and to control the machinery needed to produce the finished product. ​computer-integrated manufacturing (CIM) ​computer-aided design (CAD) ​computer-generated mistakes (CGM) ​computer-aided manufacturing (CAM)

computer-integrated manufacturing (CIM)

A manager who has the ability to see the big picture of an organization and to understand how the various parts of the organization can fit together has ____ skills. leadership technical interpersonal conceptual decisional

conceptual

Vince Martin has been described as a visionary. He has the ability to think in abstract terms and see how all the pieces of his company fit together. Vince has ____ skills. technical interpersonal charisma conceptual people

conceptual

A plan that outlines alternative courses of action is called a(n) ____ plan. objective tactical strategic contingency operational

contingency

​Total quality management (TQM) has several components, but ___ is not one of them. ​continuous supervision of employees ​employee participation ​customer satisfaction ​continuous quality improvement

continuous supervision of employees

A company like Motorola might establish a goal of reducing its inventory by 50 percent over the next year. To ensure that it reaches this goal, the company could monitor its progress on a quarterly or monthly basis. If the managers at Motorola discover that there is a danger of not achieving this goal, they can take corrective action to adjust for the deficiency. This is a description of the managers' ____ function. controlling directing leading organizing planning

controlling

American Airlines has established a goal of increasing its profits by 12 percent next year. To ensure that the goal is reached, management monitors profits on a monthly basis. After three months, if profits have not increased by 3 percent, management will take corrective action to get the company on track. By doing so, management is carrying out its ____ function(s). planning leading and motivating goal-setting and planning organizing controlling

controlling

The process of evaluating and regulating ongoing activities to ensure that goals are achieved is known as organizing. leading. controlling. motivating. planning.

controlling.

McDonalds prides itself on its efficiency and value in delivering a product in a very short time. These characteristics can best be defined as McDonalds' objectives. mission. resources. opportunities. core competencies.

core competencies.

In deciding on a product line, managers should balance ____ and product requirements. convenience goods specialty goods customer preferences demographics last year's sales

customer preferences

Zack asks his customers to complete a survey about the service they receive at his company so that he and his staff can make adjustments and improvements. Zack is focusing on the ____ aspect of total quality management. continuous quality improvement strengthening supplier partnerships customer satisfaction employee participation sales improvement

customer satisfaction

A firm organized on the basis of retail customers and wholesale customers utilizes the concept of departmentalization by location. function. customer. product. task.

customer.

If First National Bank were to assign one of its bank tellers to business merchants and two others to individual accounts, it would be departmentalizing on the basis of location. population. customer. function. service.

customer.

A computer manufacturer is first divided into the following groups: Home Office/Personal Use, Small Business, Large Business, and Educational Institutions. Within each of these divisions, management is organized into finance, operations, marketing, and human resources. This company is organized first by ____, then by ____. function; customer customer; function product; function product; customer customer; location

customer; function

Since Sears operates in a complex and dynamic environment, its store managers are given significant freedom to run their stores. This indicates that top leaders at Sears centralize decision making. deemphasize lower-level management training. control their managers tightly. deemphasize lower-level management accountability. decentralize authority.

decentralize authority.

The more complex and uncertain a company's environment, the more likely it is that the company will decentralize the organization. have a split between decentralized and centralized decision making. centralize the organization. increase the span of control, thus increasing the number of employees on board. decrease the span of control, thus decreasing the workforce.

decentralize the organization.

When Company Tech decides to produce a new product line and determines the desired capacity and use of technology, the next step is to decide how big to build the new factory. hire new workers for the facility. decide whether to build a new plant or refurbish an existing plant. determine which of the company's existing plants is best suited to produce the new product. determine what the magnitude of the conversion process will be.

decide whether to build a new plant or refurbish an existing plant.

A common characteristic of a centralized organization is democratic decision making. decision making by a few top-level managers. a flat span of management. placing decision making near the workplace. authority placed at lower levels.

decision making by a few top-level managers.

When a manager identifies an opportunity, he or she generates alternatives to pursue the opportunity, selects one of them, implements it, and then evaluates the results. This manager is acting out the ____ process. alternative-generating control managing decision-making formal leadership

decision-making

Amy, an administrative assistant in the business division of a university, is assigned the responsibility of serving the needs of the division's professors. However, Amy often reads books and looks at catalogs during working hours because she has plenty of free time. It appears that the professors in the division have failed to delegate. work hard. teach class. prioritize. be held accountable.

delegate.

Jason assigns responsibility to a subordinate for preparing a sales presentation for an important potential client and authorizes the necessary expenditures of money and human resources, but he still requires a dress rehearsal to be presented to him before the actual presentation. Jason realizes that accountability cannot be created. delegated. assigned. expected. accepted.

delegated.

Mark left his position as a manager for JCPenney after two years. He complained of being burned out from having to fulfill too many roles and tasks for one position. Mark probably never learned to use the tool of segmentation. decentralization. control. delegation. centralization.

delegation.

The assignment of part of a manager's work and authority to a worker is called delegation. responsibility. authorization. accountability. relegation.

delegation.

O. Sawyer discovered problems in coordinating the work flow going from her department to marketing. To solve the problem, she identified some situations that needed correction and asked employees to submit their suggestions for improvement. After their suggestions were summarized, the employees selected one for implementation. Next, a supervisor was given responsibility and authority to oversee implementation and to keep Sawyer informed. Sawyer's actions exhibit the ____ leadership style. laissez-faire hands-off existential authoritarian democratic

democratic

Grouping jobs into manageable units according to some reasonable scheme is known as job description. departmentalization. centralized organization. bureaucratic structuring. informal organizing.

departmentalization.

Location, product, function, and customer are common bases for a firm's span of management. job design. job specialization. chain of command. departmentalization.

departmentalization.

Purina has a new product idea to create a cat food that will give cats more energy and allow them to live longer. Management appoints a team to convert this cat food idea into an actual product. This process is called design planning. process engineering. operational planning. product lining. product refining.

design planning.

The development of a plan for converting a product idea into an actual product is called design planning. research and development. product design. operational planning. planning horizon.

design planning.

When Dell decided to produce and market an affordable personal computer, it had to consider a number of issues: what the computer would look like, where and how it would be produced, what options it would include, and so on. Supplying answers to these questions is part of operational planning. basic research. applied research. design planning. scheduling.

design planning.

Once a manager has identified a problem, he or she can generate alternatives to that problem. After this is done, the manager implements the solution. evaluates the decision he or she made. weighs the pros and cons of each alternative. determines the best alternative. implements each solution and determines which had the best results.

determines the best alternative.

Research activities undertaken to put new or existing knowledge to use in producing goods and services are called development and implementation. applied research. basic research. design planning. product design.

development and implementation.