Business Management exam 2

Which of the following statements is true about mechanistic organizations?

They structure their activities in predictable ways

_____ is a piecemeal response to circumstances as they develop

Reactive change

​_____ is one major element of organizational politics that is especially relevant to decision making

​Coalitions

​A(n) _____ is a form of group decision making in which a group arrives at a consensus of expert opinion

​Delphi group

Which of the following is one of the characteristics of Weber's bureaucracy?

​Distinct division of labor

franchising agreement

- Operation of the franchised business by the entrepreneur (the franchisee) under a license by a parent firm (the franchiser). - The entrepreneur pays the parent firm for use of trademarks, products, formulas, and business plans.

Basic Strategic Challenges

-choosing an industry in which to compete -emphasizing distinctive competencies -gaining first mover advantage

Disadvantages of Franchising- FRANCHISER

-failure of the franchisee to operate franchise property -disputes with and lawsuits by franchisees over the terms of the franchise

Forms of Group Decision Making

-interacting groups or teams -delphi groups -nominal groups

When faced with a decision managers should... (The Classical Decision Making Model)

-obtain complete and perfect information -eliminate uncertainty -evaluate everything rationally and logically ...and end up with a decision that best serves the interests of the organization

why entrepreneurs fail

-over-reach -lack of finances -inexperience -lack of effort and devoted time -weak control systems

sources for financing a new business

-personal resources -strategic alliances -lenders -venture capital companies -small business investment companies -SBA Financial programs

Disadvantages of Franchising- FRANCHISEE

-start-up fees to purchase franchise -Franchisor retains a large amount of control -Limitations of franchise (market area, product, customers)

Trends in new business start-ups

-the emergence of E-commerce -crossovers to small business by former large-business employees -increase entrepreneurial opportunities for minorities and woman -better survival rates for small businesses

_____ is a concept suggesting that decision makers are limited by their values and unconscious reflexes, skills, and habits

Bounded rationality

A company has set an objective to increase its product sales by 50 percent in the next two years. Identify the step of the organization change process of the company

Establishment of goals for the change

The _____ design is essentially a holding company that results from unrelated diversification.

H-form

Which of the following is an advantage of job specialization?

It decreases transfer time between tasks.

Which of the following statements is true about the administrative model of decision making?

It suggests that managers may not always make decisions that best serve the interests of their organizations

_____ involves systematically moving employees from one job to another

Job rotation

The Law of Intuition

Leaders evaluate everything with a leadership bias

Who among the following is most likely to be an entrepreneur?

Mariam has taken a loan to fund her new café

Which of the following is an example of a company that has identified a new market?

NutriMax has introduced its low-fat cookies in Asia

Jenny runs a small boutique in New Orleans and has five employees working under her. Lately, she has noticed that her boutique has not been delivering customer orders on time, and she has realized that it is because of the rise in the number of customers and insufficient manpower. She has decided to employ another five employees. Which step of the change process is illustrated in the scenario?

Selection of an appropriate change technique

Beta LLC has decided to change its hiring criteria so that more people with technical expertise can join the company. Which step of the change process is illustrated in the scenario?

Selection of appropriate change technique

Begun in 1976, _____ are designed to consolidate information from various disciplines and institutions, including technical and professional schools

Small Business Development Centers

_____ is the conversion process used by an organization to transform inputs into outputs

Technology

What is a disadvantage of starting a business through a franchise agreement?

The franchise agreement may be difficult to terminate

Which of the following statements is true about a franchise agreement?

The franchisee can consult the franchiser for managerial and financial help

Which of the following is an advantage of a franchising agreement?

The franchisee can easily establish a business with reduced risks

Which of the following is a disadvantage of franchising agreements?

The franchisee loses some independence in running the venture

Identify an advantage of a franchising agreement

The franchiser can grow rapidly from franchising agreements

Which of the following is one of the assumptions on which the theory and practice of organization development (OD) are based?

The total organization and the way it is designed influence the way individuals behave within the organization

Which of the following statements is true about small businesses?

The vast majority of small firms are owner-operated

Which of the following is true of interacting groups?

They can be regular work teams

Law of Solid Ground

Trust is the foundation of leadership - good character makes trust possible

When Beta Inc. acquired Redd Communications, there was a huge uproar by the staff of Redd Communications as there were rumors of staff reductions and operations closures. _____ was the cause for this reaction by the Redd Communications staff

Uncertainty

Which stage of the Lewin model of organization change involves managers letting people who will be affected by an impending change know the reasons for the change?

Unfreezing

organization change

any substantive modification to some part of the organization

Small businesses:

are a key source of new jobs in various industries

Entrepreneurs:

are involved in planning and organizing activities of a business venture

When compared to flat organizations, tall organizations:

are more expensive

_____ is the process of systematically retaining power and authority in the hands of higher-level managers.

centralization

____ is the process of linking the activities to the various departments of the organization

coordination

The _____ design is based on multiple businesses in related areas operating within a larger organizational framework

divisional

In most change situations, there are factors that make the change process more difficult and others that seem to ease the process. The process by which a manager identifies these factors and then tries to tip the balance so that the factors facilitating the change outweigh those hindering the change is called ____

force-field analysis

According to the results of a classic study, employee participation:

increases productivity and satisfaction

A(n) _____ is a person who actually conceives of and develops the new idea, product, or service by means of the creative process

inventor

The rational decision-making process

involves the evaluation of different alternatives

Jimmy owns an ice cream parlor. He designs a schedule for the different tasks the employees have to perform in order to prevent monotony at work. According to the schedule, if an employee makes waffle cones on a day, he serves ice creams the next day and clears the tables on the day after that. Jimmy is using the _____ approach at his ice cream parlor

job rotation

Alternatives to Job Specialization

job rotation, job enlargement, job enrichment, job characteristics approach, work teams

The reengineering process can be made effective by:

limiting employee participation in the process

Delta LLC. purchases raw materials such as leather and canvas from suppliers and processes them into finished shoes. Delta LLC. operates in the _____ industry

manufacturing

A wide span of management in a flat organization may result in a manager having ____

more administrative responsibility

When managers want to be sure to get innovative and creative ideas, they will often create a(n) ____ group

nominal group

Best Option

optimizes profits, sales, employee welfare and market share minimizes loss, expense, or employee turnover

Substantive modification to some part of an organization is known as _____

organization change

Bailey is the HR manger at the gamma Inc and has been tasked with redefining job descriptions and reporting relationships. What type of organizational change is she leading?

organizational structure and design change

To overcome resistance to change, the top management of a company discusses with its employees the new employee policies and procedures that it proposes to bring in and also seeks their involvement in the change process. This scenario illustrates the _____ technique that helps reduce resistance to change

participation

Attempting to change the attitudes and values of a company's workforce indicates a change in the area of ____

people

An example of a force for change in the task environment of an organization is ____

pricing strategies of competitors

When the inventory manager of Cuisine Royale, a restaurant, decides to order a batch of brown bread because the stock is almost empty, she's making a(n) _____ decision

programmed

The National Association of Women Business Owners:

provides networking forums for entrepreneurs

Programmed decisions

recur more frequently than nonprogrammed decisions

According to the Lewin model of organization change process, refreezing involves ____

reinforcing the change so that it becomes a part of the system

Programed decisions

relatively structured, occurs with some frequency

Un-programed decisions

relatively unstructured, occurs much less

In the rational decision-making model, once the alternatives have been evaluated, the next step is to ____

select the best alternative

​A _____ is privately owned by one individual or a group of individuals and has sales and assets that are not adequate enough to meaningfully influence its environment

small business

The Law of Empowerment

the best leaders build other leaders up and help them achieve their goals

Law of the Inner Circle

the closest people to you will determine your potential as a leader

According to the job characteristics approach, task identity is _____

the extent to which a worker does a complete portion of the total job

Refreezing

the phase at which change is stabilized- evaluating change, revising change

Unfreezing

the phase during which a situation is prepared for change- bringing awareness

Changing

the phase where a planned change actually takes place- communication is important, emotion and reason are both used

Departmentalization

the process of grouping jobs according to some logical arrangement

entrepreneurship

the process of planning, organizing, operating, and assuming the risk of business venture

A virtual organization:

typically has only a handful of permanent employees

Managers are most prone to error in a condition of ____

uncertainty

People resist change because of:

uncertainty, threats to self-interests power influence, different perceptions, feelings of loss in disrupted social networks, power, security, and familiarity with existing procedures

Kurt Lewin's Model

unfreezing, changing, refreezing -needed when entropy occurs

The _____ of an organizational life cycle is characterized by growth and the expansion of organizational resources

youth

_____ is the tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency

​Satisficing

Jason has started a restaurant of his own. He makes all the major operational decisions and is completely liable for the profits and losses the restaurant makes. Jason is most likely to be a(n):

​entrepreneur

A manager who has a high level of risk propensity is likely to

​make decisions quickly

​Decisions made by top managers involving strategy, such as signing mergers or making acquisitions, are examples of _____ decisions

​nonprogrammed

Pet care salons, skin clinics, and day care centres are all examples of businesses operating in the _____ industry

​service

why entrepreneurs succeed

-hard work -analysis of market -managerial competence/experience -luck/opportunity

Business plan

A document that summarizes the business strategy and structure

Bureaucratic Model

A logical, rational, and efficient organization design based on a legitimate and formal system of authority

_____ is power that has been legitimized by the organization

Authority

Which of the following is a cause for the resistance to change that a worker might feel because the worker disagrees with the management that the change will be best for the organization in the long-run?

Different perceptions

Which of the following is an accurate statement about small businesses?

They are likely to eliminate jobs at a far higher rate than large companies

_____ is a common platform for changing business processes

Enterprise resource planning

GE's organizational structure

conglomerate (H) organizational design