Principles of Management Smartbook Questions Test 2 Fall 2019 Ben McLarty

Dax is an assembly line worker at an automotive plant. He is paid $14.50 per hour. This amount reflects the _______ of Dax's job. fringe benefits incentives profits base pay

Base Pay

Insurance, retirement plans, health club memberships, and education reimbursement are just a few examples of compensation in the form of _____. wages incentives benefits base pay

Benefits

What are two factors that contribute to resistance to change? Market characteristics Competitor characteristics Change agent characteristics Employee characteristics

Change agent characteristics Employee characteristics

Research shows that employees have more positive work attitudes in organizations with a(n) _____ culture. clan adhocracy hierarchy market

Clan

Strategic _____ involves monitoring the execution of strategy and taking corrective action when necessary. differentiation control integration supply

Control

Which level of strategic management focuses on the organization as a whole? business-level task-level corporate-level functional-level

Corporate-level

Which two of Porter's competitive strategies are appropriate when addressing a narrow market? Choose all that apply. diversification cost-leadership cost-focus focused-differentiation

Cost-focus and focused-differentiation

Which of the following are among the seven methods of fostering innovation? Create an innovation strategy Get commitment from top managers Institute the necessary human resource policies, practices, and procedures Create a climate of employee complacency Establish the required structure and processes Establish a firm hierarchy, with mechanisms of control at all levels

Create an innovation strategy Get commitment from top managers Institute the necessary human resource policies, practices, and procedures Establish the required structure and processes

Factors such as the increasing number of women in the workforce and the growing number of older workers exemplify which force for change outside the organization? Market changes Demographic characteristics Customer demands Supplier practices

Demographic characteristics

The more subunits into which an organization breaks down, the more highly _____ it is. integrated customized accommodated differentiated

Differentiated

_____ is the tendency of the parts of an organization to disperse and fragment. Integration Mechanistic Differentiation Organic

Differentiation

What strategy is American Tile Corp. using when it acquires a company that makes industrial cleaning products which American Tile doesn't currently offer? isolationism diversification arbitration fabrication

Diversification

Anton's company has undergone a massive reorganization, and hundreds of jobs have been permanently eliminated, along with Anton's job. Which of the following BEST describes Anton's dismissal? Downsizing Demotion Firing Layoff

Downsizing

What is the most valuable competitive resource for a manager who needs alternative solutions to a problem? Employees with ideas Customers of competitors Facilities with open space Money from investors

Employees with ideas

The agency whose job it is to enforce anti-discrimination and other employment laws is called the _____. Occupational Safety and Health Administration Equal Employment Opportunity Commission Fair Labor Standards Board Sarbanes Oxley Commission

Equal Employment Opportunity Commission

What is the third stage of the rational model of decision making? Identify the problem or opportunity. Evaluate alternatives and select a solution. Develop alternative solutions. Implement and evaluate the chosen solution.

Evaluate alternatives and select a solution.

_____ is the process that helps align the last two phases of the strategic-management process: strategic implementation and strategic control. Differentiation Diversification Operations Execution

Execution

Salaried executives, administrative, and professional employees are exempt from over time rules as outlined in the _____. National Labor Relations Act Equal Employment Act Occupational Safety and Health Act Fair Labor Standards Act

Fair Labor Standards Act

True or false: It is common practice today for most small business owners to engage in strategic planning.

False Small businesses don't really participate in strategic planning. More for big businesses

A _____ is a vision or projection of the future that is made following a SWOT analysis. market analysis forecast strategy cyclic pattern

Forecast

Jai is a member of a tight-knit team at work that avoids any kind of disagreement.Team members, therefore, avoid considering new ideas. What behavior is Jai's team exhibiting? Goal displacement Groupthink Overconfidence Burnout

Groupthink

Rites and rituals, which are activities and _____ used to celebrate important organizational events or achievements, can be leveraged in the process of culture change. slogans communications ceremonies stories

ceremonies

The three elements of ___________ include wages and salaries, incentives, and benefits.

compensation

Organizational development can be used to manage ______ within an organization. promotions conflict diversity profits

conflict

One assumption of a systems approach to change is that change ______. can be mitigated through clear management hierarchies creates a ripple effect through an organization should be avoided at any cost relies on having a culture where failure is not an option

creates a ripple effect through an organization

A system of shared beliefs and values that develops within an organization and guides the behavior of its members is called organizational ______. policies demeanor attitude culture

culture

According to psychologist Daniel Kahneman, which of the following characteristics describe System 2 thinking? Intuitive Deliberate Unconscious Conscious Analytical

deliberate conscious analytical

An employee may be _______ or moved downward to a job with lower responsibilities and pay, if he or she performs poorly for an extended period.

demoted

The common term used to describe the techniques for implementing planned change to make people and companies more effective is called organizational ______. development diagnosis placement intervention

development

Organizations wishing to change their culture may alter their physical layout and design in order to: (select all that apply) recreate historical narratives encourage employee productivity send a strong message about the culture

encourage employee productivity send a strong message about the culture

The third step in the organization development process is ______. feedback diagnosis intervention evaluation

evaluation

Symbols in organizational culture represent objects or actions that convey an organization's most important values to others. narratives based on true events which are repeated to emphasize particular values. people whose accomplishments embody the values of the organization. activities that celebrate important occasions and accomplishments in the organization's life.

objects or actions that convey an organization's most important values to others.

A(n) _____ is a system of consciously coordinated activities or forces of two or more people. adhocracy culture organization team

organization

A box-and-lines illustration showing the formal lines of authority and the organization's work specializations is called a(n) ______ chart. organizational networking values mission

organizational

Helping a new employee to learn the ropes of the organization and fit easily into the new job is known as ______. recruitment selection orientation performance appraisal

orientation

Which of the following can leaders pay attention to, measure, and control in order to change the organization's culture? (select all that apply) outcomes processes heroes activities

outcomes processes activities

A _____ consists of assessing an employee's performance and providing him or her with appropriate feedback. vision statement performance appraisal marketing mix mission statement

performance appraisal

The continuous cycle of improving job performance through defining performance, monitoring and evaluating performance, reviewing performance, and providing consequences is known as _____. development training performance management performance appraisal

performance management

The extent to which your personality and values match the climate and culture in an organization is referred to as _____. person-organization fit person-work fit person-job fit person-role fit

person-organization fit

The rational model of decision-making is considered _____ in that it describes how managers should make decisions, rather than how they actually make them. unethical predictive prescriptive unconventional

prescriptive

When a change is made to a product or service that changes its appearance or performance, this is known as a(n) ______ innovation. radical process incremental product

product

Last week Jordan's boss told him he was moving him from sales team manager to the director of sales. This career move represents a _____. transfer demotion promotion downsizing

promotion

Developing a systematic, comprehensive strategy for understanding current employee needs and predicting future employee needs is referred to as ____ human resource planning. production capital strategic deferred

strategic

The three types of organizational design are: traditional horizontal open boundaries sectional

traditional horizontal open boundaries

True or false: Multiple organizational development interventions have been found to work better than single interventions.

true

Common purpose, one of the four common elements of organizations proposed by Schein, unifies members and helps everyone understand the organization's reason for being. arranges discrete parts of a task done by different people. coordinates individual efforts into group effort. ensure the right people do the right things at the right time.

unifies members and helps everyone understand the organization's reason for being.

Flat organizations generally have few levels with _______ spans of control, with one manager overseeing many employees. narrow short wide tall

wide

Porter's five competitive forces form a model for _____ analysis. industry staff cost production

Industry

Carol is in charge of a meeting to decide what the company should do about the new sales people who don't know how to follow-up with former clients. Which stage of the organizational development process is Carol participating in? Evaluation Diagnosis Feedback Intervention

Intervention

What is the intended benefit of the forced ranking approach to performance appraisal? It highlights any biases or perceptual errors in the appraisal process. It encourages employees to participate in the appraisal process and to think critically about their own performance. It encourages managers to reward top performers and discipline poor performers. It shields the company from legal action by subjecting all employees to the same treatment.

It encourages managers to reward top performers and discipline poor performers.

Which of these describe how knowledge of decision-making styles affects managers' work? It reduces managers' ability to predict future challenges. It gives managers an understanding of how different people reach different conclusions. It enables managers to more accurately blame others for problems. It allows managers to better identify personal strengths and weaknesses.

It gives managers an understanding of how different people reach different conclusions. It allows managers to better identify personal strengths and weaknesses

Which statement about organizational development is true? Successful organization development usually involves multiple interventions. Single interventions are generally more effective than multiple interventions. Training is the most successful type of organizational development intervention. It best to master one intervention and use it in all situations.

Successful organization development usually involves multiple interventions.

Increasing segmentation of the marketplace and the need to get products to market faster in light of competitors' specialized solutions are examples of ______ currently influencing the future of business. supertrends microtrends discontinuous trends niche trends

Supertrends

Luxury Linens Inc. produces the highest thread-count sheets available anywhere and does so at a price that none of its competitors can duplicate. It can be said that Luxury Linens has a(n) _____. forecast analysis organizational weakness economies of scale sustainable competitive advantage

Sustainable competitive advantage

What occurs as a result of the horizontal organizational design? Internal boundaries are strengthened Teams are used to improve collaboration and work Employees are grouped around regional locations People with similar occupations are put together

Teams are used to improve collaboration and work

Refer to Figure 6.2. Place the steps in the strategic-management process in the correct order, with the first step listed at the top. Maintain strategic control Formulate corporate, business, and functional strategies Execute the strategies Establish the mission, vision, and values statements Assess the current reality

1) Establish the mission, vision, and values statement 2) Assess the current reality 3) Formulate corporate, business, and functional strategies 4) Execute the strategies 5) Maintain strategic control

List the steps of the rational model of decision making in the correct order, with the first step listed at the top and the last step listed at the bottom.

1) Identify the problem or opportunity 2)Think of alternative solutions 3)Evaluate alternatives and select a solution 4) Implement and evaluate the solution chose

Which type of change implementation makes employees feel the least threatened? Innovative change Administrative change Adaptive change Radically innovative change

Adaptive change

In which step of the learning and development process does the employer identify if there are gaps in what new employees need to know and if those gaps can be filled by learning and development? Evaluation Assessment Selection Implementation

Assessment

Turbine Manufacturing uses artificial intelligence in its factories to automate basic tasks, freeing human employees to perform more high-level finishing and quality assurance tasks. Which area of artificial intelligence does this illustrate? Autonomous intelligence Applied intelligence Assisted intelligence Augmented intelligence

Assisted intelligence

Maria, a senior product manager at Impasse Software, recently retired. Since sales of Maria's primary products have been declining for years, the human resource manager decides not to replace her and instead reassigns all of her subordinates to different departments. What is this an example of? Forced ranking Attrition Onboarding Turnover

Attrition

What is the BEST example of a mutual-benefit organization? Humane shelter Labor union Hospital University

Labor Union

What are common results of groupthink? Loss of new ideas Ideas that are too ambitious or unorthodox Failure to consider new information Infighting and conflict

Loss of new ideas Failure to consider new information

Which of these assumptions are made in the rational model of decision making? Managers are able to make logical decisions without prejudice or emotional blind spots. Managers will be influenced by their own self-interest when choosing among alternative courses of action. Managers will not be limited by time or money constraints when implementing the chosen solution. Managers have complete, error-free information about alternative courses of action and their consequences. Managers will always select the course of action that they know will most benefit the organization.

Managers are able to make logical decisions without prejudice or emotional blind spots. Managers have complete, error-free information about alternative courses of action and their consequences. Managers will always select the course of action that they know will most benefit the organization.

What two things does the BCG matrix evaluate? market share cost of goods sold economies of scale business growth rates

Market share & business growth rates

Which models are characteristic nonrational models of decision making? Models that try to predict future behaviors and consequences Models that describe how managers actually make decisions Models that describe how managers should make decisions Models that train managers how to make ethical decisions

Models that describe how managers actually make decisions

As a manager, Colin realizes that there is no single formula for making easy decisions. In reality, business decisions he has to make involve uncertainty and risk. This describes the _____ model of decision making. rational nonrational prescriptive complacent

Nonrational

Which legislative act was passed to ensure safe and healthy working conditions for employees? Equal Employment Opportunity Act Civil Rights Act of 1964 Fair Labor Standards Act Occupational Safety and Health Act (OSHA)

Occupational Safety and Health Act (OSHA)

What are the three core processes of business identified by Bossidy and Charan? people strategy competition operations finance

People, Strategy, Operations

As the human resource manager for her firm, Candace is responsible for identifying and attracting qualified applicants for available positions within the organization. This role is known as _____. development performance management job analysis recruiting

Recruiting

Research has shown that an effective employee socialization program has which of the following effects? Reduced turnover Enhanced job satisfaction Improved employee performance Stronger customer loyalty

Reduced turnover Enhanced job satisfaction Improved employee performance

Which of these would be considered observable artifacts in an organization? (select all that apply) Rituals Values Decorations Awards Sales

Rituals Decorations Awards

Successful implementation of major decisions requires which of the following? (select 2) Ignoring ethical dilemmas Reliance on the easy way out of the problem Sensitivity to those affected by the decision Careful planning

Sensitivity to those affected by the decision Careful planning

Which terms describe good performance expectations? Specific Vague Ambitious Achievable

Specific Achievable

Michael Porter defined _____ as an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company. economy of scale domestic rivalry cost-leadership strategic positioning

Strategic Positioning

What are supertrends that are currently affecting the future of business? The overall speed of product releases is decreasing. The way we work is being impacted by offshore suppliers. Simple, one-size-fits-all solutions are becoming more popular. Competitive advantage is coming increasingly from knowledge, not information.

The way we work is being impacted by offshore suppliers. Competitive advantage is coming increasingly from knowledge, not information.

Many employers are wary of giving references for which of the following reasons? They fear that if they give a positive reference for someone who doesn't work out in a new job, they may be sued by that person's new employer. They may not be able to rehire a good employee if they move to a better job. They fear that negative reviews may result in former employees suing the company. They suck up resources and energy from management, who may have to spend too much time on the phone or writing letters.

They fear that if they give a positive reference for someone who doesn't work out in a new job, they may be sued by that person's new employer. They fear that negative reviews may result in former employees suing the company.

What are three characteristics of an organization with a simple structure? a tall hierarchy a flat hierarchy dispersed authority authority in a single person customized work types low work specialization

a flat hierarchy authority in a single person low work specialization

An AI application that learns from human inputs in order to assist humans in making better decisions is known as ______ intelligence

augmented

An organization that wants to eliminate layers in favor of creating a culture where employees have more power should consider adopting a _____ organizational structure. flattened stabilized hierarchical typical

flattened

Organizational culture: (select all that apply) encompasses beliefs, knowledge, and behavior patterns, but not values is written down clearly in the organization's code of conduct helps employees understand why the organization does what it does is the social glue that binds members of the organization together represents beliefs and values shared among workers is passed on to new employees through socialization and mentoring significantly affects work outcomes at all levels of the organization

helps employees understand why the organization does what it does is the social glue that binds members of the organization together represents beliefs and values shared among workers is passed on to new employees through socialization and mentoring significantly affects work outcomes at all levels of the organization

People's reaction to change depends largely on ______. how they were taught to handle change as children how much they enjoy their jobs how long they have been working for the organization whether or not they are highly educated

how they were taught to handle change as children

Scott is a manager at a large electronics company. His primary role within the organization is to plan for the "people needs" of the business, and then attract, develop and retain an effective workforce. Scott is involved in _____ management. strategic human resource (HR) production marketing and sales

human resource (HR)

The first stage in the rational decision-making process involves _____. coming up with possible solutions evaluating alternative solutions implementing the solution identifying the problem

identifying the problem

Organizations use ______ such as commissions, profit-sharing, bonuses, and stock options to attract and retain top performers. fringe benefits incentives givebacks base pay

incentives

The process of creating something new that can be applied profitably is referred to as ______. innovation creativity invention constancy

innovation

A set of interdependent processes and structures that dictate how a company seeks out problems and solutions, synthesizes ideas into a business concept and product design, and chooses projects for funding is a(n) ______. innovation system innovation competition knowledge process organizational system

innovation system

According to psychologist Daniel Kahneman, System 1 thinking is _____. rational and subconscious intuitive and largely unconscious nonrational and conscious analytical and conscious

intuitive and largely unconscious

Making changes in response to problems or opportunities as they arise, rather than attempting to foresee them, is referred to as ______ change. reactive proactive anticipatory preemptive

reactive

If an organization wishes to change its culture, managers can alter the types of _____ and status symbols they give out and to whom they give them. stories rewards rituals heroes

rewards

Which of the following represent competitive forces used in Porter's model for industry analysis? training of new employees rivalry among competitors bargaining power of buyers failure of new entrants threats of new entrants bargaining power of suppliers retraining of existing employees threat of substitute products or services

rivalry among competitors bargaining power of buyers threats of new entrants bargaining power of suppliers threat of substitute products or services

Which of the following represent learning-related tools that can be leveraged to change an organization's culture? (select all that apply) role modeling training profits coaching

role modeling training coaching