Mid-Term Study Guide

__________ planning is the process of identifying the specific procedures and processes required at lower levels of an organization a. Strategic b. Operational c. Tactical d. Contingency e. Acquisition

B. operational

Identify a difference between a mechanistic and an organic organization

In a mechanistic organization the source of guidance is rules, whereas in an organic organization the source of guidance is personal judgment.

Amy and Mike seem to be advocating that control be __________ while Leo believes it should be __________. a. bureaucratic; clan b. clan; bureaucratic c. clan; market d. bureaucratic; collective e. market; tactical

a. bureaucratic; clan

Chenault was a celebrity at American Express. He was dominant and self-confident, and created an aura of competence and success at the organization. Based on this, Chenault was most likely a(n) __________ leader. a. charismatic b. task-motivated c. laissez-faire d. ethical e. bridge

a. charismatic

"My business relationship with the Midwest sales rep has really deteriorated. We used to cooperate; now we __________," said the manager of the Southwest region. "And I blame our new control system. Every month, managers across the entire enterprise get profit and loss statements for all divisions and business units. We look at one another's performance and are less likely to help one another when we know that our business unit or division may suffer a loss in profitability as a result. After all, promotions, salary increases, and bonus pools are tied to our profitability." A. compete B. promote change C. feel unrelated D. sabotage E. ignore one another

a. compete

Amy asks Leo why he does not "have people on the line manually checking batteries as we go?" What type of control is Amy advocating for? a. concurrent b. feedforward c. feedback d. lateral e. strategic

a. concurrent

Freshii headquarters uses a flat organization, which means decision making is more a. decentralized. b. centralized. c. coordinated. d. integrated. e. bottom-up.

a. decentralized

In the context of the vertical structure of a firm, a wide span of control builds a __________ organization with few reporting levels. A. flat B. centralized C. tall D. bureaucratic E. formal

a. flat

Part of Alonso's struggle is that he is a ______, while Sophie and Ashley are ______. a. frontline manager; middle-level managers b. frontline manager; frontline managers c. middle-level manager; middle-level managers d. middle-level manager; frontline managers e. top-level manager; middle-level managers

a. frontline: middle-level managers

__________ has a strong positive impact on follower satisfaction and motivation and also on leader effectiveness. a. Group maintenance behavior b. Task performance behavior c. Autocratic leadership d. Laissez-faire leadership e. Authoritarian leadership

a. group maintenance behavior

Supervisory leadership is behavior that provides a. guidance, support, and corrective feedback for day-to-day activities. b. purpose and meaning to an organization. c. a means to anticipate changes in the future. d. projections for the viable future of an organization. e. a way to collaborate with others to initiate changes.

a. guidance, support, and corrective feedback for day-to-day activities.

A top management strategic plan has a __________ level of detail. a. low b. boundaryless c. medium d. high e. framed

a. low

Empowerment is important in organizations today because A. management has changed. B. employees' jobs have become less challenging. C. employees are more concerned about pay. D. labor unions are growing. E. the role of technology has increased.

a. management has changed

Assume Leo's manufacturing line was producing close to the company's goals, but just slightly under. If Amy and Mike still complain about Leo's control of the line, they would be violating which of the following? a. principle of exception b. feedforward control c. concurrent control d. feedback control e. external audits

a. principle of exception

In the context of a firm's vertical structure, a powerful trend for U.S. businesses over the past few decades has been to a. reduce the number of hierarchical layers. b. replace flat organizational structures with tall organizational structures. c. increase the number of reporting levels. increase formalization. d. limit decision-making authority to top management.

a. reduce the number of hierarchical layers.

Leo believes that Amy and Mike's ideas will diminish the importance of which effective control system criteria? a. relationship between empowerment and control b. use of multiple approaches c. communicate adequate information to employees d. based on valid performance standards e. use return on investment as a primary indicator of success

a. relationship between empowerment and control

After comparing performance to standards, what is Leo not doing? a. taking corrective action b. measuring performance c. establishing standards d. documenting actions e. auditing

a. taking corrective action

The __________ budget is used for the cost of fixed assets like plants and equipment. A. master B. capital C. production D. cash E. cost

b. capital

For organizations, the formal planning model is generally __________, with top-level strategies flowing down through the levels of the organization into more specific goals and plans. a. horizontal b. hierarchical c. random d. concentrated e. disordered

b. hierarchical

Sophie speaks very quickly and the way she communicates with Alonso confuses him. She also comes across as very aggressive. It seems she struggles with her ______ role a. decisional b. interpersonal c. informational d. technical e. monitor

b. interpersonal

Designing an affordable, energy-efficient car in the next four years is a a. long-term strategy. b. long-term goal. c. short-term strategy. d. short-term goal. e. plan.

b. long term goal

The organization chart depicts the A. geographical location of the different branches of a business. B. positions in the firm and the way they are arranged. C. office assignments by area of the firm. D. responsibilities of each job specification. E. phone numbers for each employee.

b. positions in the firm and the way they are arranged.

A leader who has __________ power influences others because he or she controls valued benefits; people comply with the leader's wishes so as to receive those benefits. a. legitimate b. reward c. referent d. expert e. coercive

b. reward

The __________ is the number of subordinates who report directly to an executive or supervisor. A. degree of standardization B. span of control C. degree of specialization D. division of labor E. locus of control

b. span of control

__________ leadership gives purpose and meaning to organizations by anticipating and envisioning a viable future for the organization and working with others to initiate changes that create such a future. a. Shared b. Strategic c. Lateral d. Bridge e. Supervisory

b. strategic

Labyrinth is a new, very successful, brand of organic clothing recently introduced globally. The company is unique in the way it has collaborated with its suppliers and potential customers to bring the clothing to market. Labyrinth's founders have always focused on efficiency. What is the best advice you should give them, given the quick success they have had with Labyrinth? a. Efficiency is the only key to their continued success. b. Now it is time for them to consider only effectiveness because they clearly have efficiency under control and this is not likely to change in the future. c. To continue their success, they should maintain a clear focus on both effectiveness and efficiency, especially while their company is experiencing such a high growth in sales. d. They should maintain the status quo without implementing any changes to continue making quick sales. e. As top-level managers, the best action plan for them is to begin to minimize collaboration with customers and suppliers because they have proven themselves.

c. To continue their success, they should maintain a clear focus on both effectiveness and efficiency, especially while their company is experiencing such a high growth in sales.

The __________ shows the financial picture of a company at a given time. a. debt-equity ratio b. balanced scorecard c. balance sheet d. management audit e. net working capital ratio

c. balance sheet

What process is used to assess how well one company's basic functions and skills compare with those of another company or set of companies? a. brainstorming b. situational analysis c. benchmarking d. satisficing e. strategic planning

c. benchmarking

Sophie is thinking analytically and wants to know how much Alonso focused on core customers and market preferences. What type of managerial skill set does she seem to portray? human political conceptual and decision technical interpersonal and communication

c. conceptual decision

__________ detect and correct significant variations, or discrepancies, in the results of plans and activities. A. Quality standards B. Quantity standards C. Control systems D. Performance systems E. Communication strategies

c. control systems

In __________, new or additional responsibilities to a subordinate are assigned. A. mutual adjustment B. centralization C. delegation D. integration E. job specialization

c. delegation

Based on what you've learned about Freshii, which of the following would most likely be true? a. Freshii has a narrow span of control. b. Freshii is a mechanistic organization. c. Freshii is an organic organization. d. Decision making at Freshii is centralized. e. Freshii has a tall organizational structure.

c. freshii is an organization organization

_______ is assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals. a. controlling b. planning c. organizing d. leading e. quantifying

c. organizing

Based on how attracted his followers were to his vision, what source of power did Chenault have at American Express? a. expert b. coercive c. referent d. legitimate e. reward

c. referent

Nigel said to his manager, "Tomas, I've received an unsolicited offer from a competitor. I've enjoyed my eight years here, and I'd like to stay. But the offered salary is 20 percent higher than my current salary. The other firm cited what I have learned this past year on the public works job as a particularly valuable skill." Nigel is a highly valued employee, and Tomas has been grooming him as his successor. If Tomas were to consider market rates as an important indicator of worth in responding to Nigel, Tomas would most likely A. Transfer Nigel to a division in another city where the competitor does not have an office. B. explain to Nigel that internal resource considerations establish Nigel's salary. seek to retain Nigel by increasing his salary by 25 percent. C. contact the competitor and inform them that Nigel is "off limits." D. terminate Nigel's employment for insubordination and lack of loyalty.

c. seek to retain Nigel by increasing his salary by 25 percent.

__________ planning involves a process of translating broad strategic goals and plans into specific goals and plans relevant to a particular portion of an organization. a. Strategic b. Operational c. Tactical d. Contingency e. Feasibility

c. tactical

Ashley is focused on the presentation itself—how it catches one's attention, its opening, and so on. What seems to be her strongest managerial skill? a. human b. conceptual and decision c. technical d. adaptive e. political

c. technical

During the attacks of September 11, American Express lost 11 employees and suffered major damage to its headquarters. Chenault gathered his employees in Madison Square Garden and declared that the company was "sound" and "will overcome" the tragedy. Based on Path-Goal Theory, what style of leader behavior does this represent? a. participative b. interaction facilitation c. supportive d. achievement-oriented e. directive

d. achievement-oriented

To become an effective manager, one should choose __________ of the four management functions and commit one hundred percent. A. only one B. at least two C. between one and three D. all E. none

d. all

A(n) __________ plan specifies actions when initial plans fail or events in the external environment create sudden change. a. standing b. internal c. single-use d. contingency e. investment

d. contingency

In __________ organizations, more decisions are made at lower levels of management. A. tall B. formal C. mechanistic D. decentralized E. narrow

d. decentralized

Which of the following is a danger to having a competitive culture where employees "own" their specific piece of the business? a. A tall structure is less likely to occur. b. A matrix structure is more likely to occur. c. A virtual network is more likely to occur. d. Differentiation is more likely to occur. e. Integration is more likely to occur.

d. differentiation

If the management team had a strong _______, that person could assist with resolving the conflicts in the meeting. a. entrepreneur b. monitor c. resource allocator d. disturbance handler e. disseminator

d. disturbance handler

The span of control should be wide when A. asks are not clearly defined and instructions are ambiguous. B. subordinates are poorly trained. C. employees' access to information is restricted. D. jobs are similar, and performance measures are comparable. E. subordinates prefer close supervisory control to autonomy.

d. jobs are similar, and performance measures are comparable.

A goal provides a(n) __________ whereas a strategy provides a(n) __________. a. measurement; outcome b. outcome; measurement c. roadmap; measurement d. outcome; roadmap e. roadmap; outcome

d. outcome; roadmap

Operational planning is done by __________ managers. a. top b. tactical c. middle d. team-focused e. frontline

e. frontline

A(n) __________ organization depends heavily on an informal structure of employee networks. a. hierarchical b. authoritative c. mechanistic d. bureaucratic e. organic

e. organic

A(n) __________ is an itemized financial document of the income and the expenses of a company's operations. A. balanced scorecard B. appropriation account C. surplus D. debt-equity ratio E. profit and loss statement

e. profit and loss statement

__________ are targets that establish desired performance levels, motivate performance, and serve as benchmarks against which to assess actual performance. a. Feedback controls b. Liabilities c. Management audits d. Gatekeepers e. Standards

e. standards

The four levels of managers found in large organizations are a. international, national, regional, and local. b. marketing, accounting, human resource, and finance. c. technical, functional, departmental, and organizational. d. planning, coordinating, controlling, and executing. e. top-level, middle-level, frontline, and team leader.

e. top-level, middle-level, frontline, and team leader.

Chenault was able to influence employees in a way that they pursued American Express's goals over their own self-interests. What type of leadership did this portray a. authentic b. laissez-faire c. bridge d. transactional e. transformational

e. transformational

Freshii emphasizes a lean management structure. This means that span of control at Freshii is generally what? a. intermediate b. central c. narrow d. tall e. wide

e. wide