Fashion Business Practices Exam #2: Chapters 5, 6, 7, 9, 10

A motivational method in which the work is restructured to better match the worker could accomplish its goal by using work teams or establishing closer customer relationships. What is the name of this motivational method?

job redesign

When employers are concerned that their employees may become bored with performing the same tasks repetitively, they use ______________ to systematically shift employees to other jobs to give them opportunities to perform new tasks.

job rotation

Employers may work with employees' schedules to accommodate the employees' lifestyles. What is the name given to the working arrangement in which the employer permits two employees to work less than a full-time schedule but work at the same tasks?

job sharing

What is the name given to the assignment of distinct tasks within an organization to different people so each person become extremely proficient at performing that single task?

job specialization

What is the name given to a management structure in which the line managers are provided with specialists? Please select the most specific answer.

line and staff structure

_____ structures provide flexibility, enhanced cooperation, and creativity, and they enable the company to respond quickly to changes in the environment by giving special attention to specific projects or problems.

matrix

Like all companies, The Fruit Guys need to be concerned that employees have an internal process that energizes, directs, and sustains behavior in a way that helps the firm achieve its goals. This is best described as

motivation

The Fruit Guys supply other companies with fresh fruit for their office break rooms. For those companies, the perk of fresh fruit may serve as a(n)_______, according to Frederick Herzberg.

motivation theory

The underlying cause for a person to act in a particular manner may be referred to as a ____

motive

The morale of an individual on the job is closely tied to job satisfaction and having needs met. Which of the following is a need that, according to the authors, would be satisfied by employment?

need for financial security

When the management of a business want to show the relationships and positions within the business they create a(n)

organizational chart

Compensation System

policies and strategies that determine employee compensation

Statistics show that most small business failures are related to

poor management

Employees from different departments within the company may be brought together temporarily in a ____ to tackle a specific problem

problem- solving team

Fred Smith, CEO and founder of FedEx, once described the early days of the company, the issues they had to resolve, and the drive and determination that pushed them through the obstacles. He said there were times that the entire board of directors, which was made up of individuals with varying specialties, expertise, and skills, would come together to resolve an issue—in his case this usually meant finding a way to get shipments from one point to another by the deadline with very few resources. What kind of team did he form?

problem- solving team

Management is not a step-by-step procedure that can be carefully mapped out and calendared, it is a __________ with a feedback loop that represents flow.

process

Title VII of the Civil Rights Act

prohibits discrimination in employment based on five criteria: race, color, religion, gender, or national origin

Family and Medical Leave Act of 1993

requires employers to provide up to 12 weeks of unpaid leave for family and medical emergencies

Gabriel Farms, one of The Fruit Guys' vendors, believes in paying its employees a "living wage," which is higher than a typical minimum wage. Which of Abraham Maslow's hierarchy of needs is satisfied by a living wage?

safety needs

Studies show that the incidence of innovation among ______________ -business workers is significantly higher than among workers in ______________ businesses.

small / large

Sears, Roebuck & Co., and General Motors rely heavily on ___________________ to provide merchandise, parts, supplies, and other goods and services. Companies like these buy parts and assemblies for these businesses because it is less expensive than manufacturing them in their own factories.

small business firms

The number of persons reporting to one manager is referred to as the __________ and after years of research, it has been determined that there is no perfect ratio of subordinates to managers.

span of management

Planning is an essential part of managing an enterprise. A(n)____________ plan is developed as a guide during the planning process for major policy setting and decision making.

strategic

Motivation affects an individual's internal process. Which of the following is not something that we would consider motivational for an individual?

support

Job Analysis

systematic procedure for studying jobs to determine their various elements and requirements

During the planning stage, managers develop a ________ plan which is smaller in scale and developed to implement strategy and will most likely cover a one- to three-year period.

tactical

If a company has a major problem, what type of committee might it create to investigate the problem?

task force

Small businesses enjoy several unique benefits that larger firms may not have such as

the ability to adapt to change and simplified record keeping

Frederick W. Taylor used scientific management as a means to improve ____

the efficiency of individual workers

Douglas McGregor observed management's view of workers from two perspectives. In one perspective, he said managers view workers as slothful, lazy, and have no desire to work. In the other view, he said managers view workers as individuals who like to work, will work toward goals to which they are committed, and seek out and willingly accept responsibility.

theory x and theory y

When developing the human relations function at The Fruit Guys, Chris Mittelstaedt drew from his own unsatisfying experiences as an hourly employee trying to build a career and support a family. Consequently, he wanted his company to value employees' opinions and to treat and reward them well. Which of the following theories does he most likely follow?

theory y

HCL Technologies is a multi-national corporation providing a wide variety of technological services to business clients worldwide. In order to keep the company operating as a single entity, the CEO has created an intra-company information exchange similar to Facebook, he has a weekly newsletter posted on-line for employees, and takes input for improvements or problem solutions from any employee wherever they are located and whatever their position is. Often, when a new client needs a technological solution that cannot be solved in any one location, individuals who would like to work on the project, volunteer and communicate via a company video conferencing and information exchange site. In light of the methods used to communicate within these volunteer teams, what would the most likely designation be for these teams?

virtual team

A _____ span of management exists when a manager directly supervises a very large number of subordinate employees. A _____ span of management exists when a manager directly supervises only a few subordinates.

wide / narrow

If a company has very competent workers, a well-established set of standard operating procedures, and few expected problems, what type of management should it adopt?

wide span of management

Companies, the military, the government, and nonprofit organizations can operate because they have determined the levels of authority and reporting structure for their organizations. What is the name given to this line of authority?

chain of command

Wage Survey

collection of data on prevailing wage rates within an industry or a geographic area

Skills Inventory

computerized data bank containing information on the skills and experience of all present employees

When a manager plans for the future of his business and is able to see how all of the parts of the organization work together, it is said that he or she is engaging ______________ to see the "big picture."

conceptual skills

What type of leader seeks input from almost all workers and makes the final decisions based on their support?

consensus leaders

What type of leader is one who consults workers before making decisions, helps workers understand their goals, and imposes and fosters a sense of ownership and commitment, and makes the final decisions him- or herself after gathering employee input?

consultative

The inner rites, rituals, heroes, and values of a firm are known as:

corporate culture

A ____ team consists of employees from different departments and different specialties that are brought together to complete a project that requires a diversity of skills. It is frequently managed from within the team itself.

cross- functional team

A store with different sections such as household appliances, bed and bath, clothing, tools, furniture, jewelry, perfume, and cosmetics will often assign employees to work exclusively within one of those sections. In doing so the management is engaging in

departmentalization By Product

What is the advantage of departmentalization by customer?

departmentalization by customer allows the firm to deal efficiently with unique customers or customer groups.

Departmentalization is the grouping together of work units or departments to create manageable units. What is the name given to departmentalization of a group of employees based on them all doing the same organizational activity?

departmentalization by function

A company that groups its activities according to the defined geographic area in which they are performed—whether that is a city block, nation, or continent—has

departmentalization by location

When a company looks to departmentalize by areas of business like Japan, America, and Australia it is exemplifying ______.

departmentalization by location

HR Planning

development of strategies to meet a firms HR needs

"Houston, we have a problem," is one of the most famous sentences in history resulting from a problem that arose during the Apollo 13 mission to the moon. When business managers identify a problem, they are identifying

discrepancy between an actual condition and desired condition

A contingency plan outlines alternate courses of action that may be taken if an organization's other plans are __________ or become ___________ .

disrupted, ineffective

Management Decisions

1. wage level 2. wage structure 3. individual wage

______ is a systematic program of encouraging desirable behavior involving rewards to encourage desirable actions and punishments to discourage undesirable actions.

Behavior modification

Check My Work (1 remaining) If a city is considering building a new city office complex, it may appoint a(n) _____________ to research possible locations for the offices within the city, then to present their findings to the city manager for review and presentation to the city council. The committee would be disbanded after its assignment has been completed.

ad hoc committee

Replacement Chart

list of key personnel and their possible replacements

As the head Fruit Guy, Chris Mittelstaedt wants to treat everyone—employees, customers, and suppliers—fairly. The idea that people are motivated to obtain and preserve equitable treatment for themselves stems from`

equity theory

The ____ maintains that people are motivated to obtain and preserve fair treatment for themselves.

equity theory

Performance Apprasial

evaluation of employees current and potential levels of performance to allow managers to make objective human resource decisions - check performance and let you know how you are doing

According to the authors, franchises may become unsuccessful because the franchisor

expanded too rapidly

A modern motivational theory based on the assumption that motivation depends on how much an employee wants something and on how likely the employee thinks he or she will receive it, requires employees to balance the value they place on different aspects of their life against the goal they seek. Balancing is required because of the possibility of any action leading to varied outcomes. What theory is this?

expectancy theory

Five Factors of HR

1. human resource planning 2. job analysis 3. recruiting 4. selection 5. orientation

Performance Appraisal 3 Objectives

1. managers do so to let workers know how they are doing and how they can improve 2. provide effective basis for rewards; raises 3. helps the organization monitor its employee selection, training, and development activities

Perfomance Feedback

1. tell and sell 2. tell and listen 3. problem solving 4. 360- degree evaluation

Franchising agreements fall into three general categories, which of the following is not one of those categories?

A distributor franchises the channels of distribution to franchisees.

Which of the following is a definition of "franchise"?

A franchise is a license to operate an individually owned business as if it were part of a chain of outlets or stores.

Americans with Disabilities Act of 1990

A law passed in 1990 that requires employers and public facilities to make "reasonable accommodations" for people with disabilities and prohibits discrimination against these individuals in employment.

Which of the following is an accurate statement about business profitability?

According to the SBA, the most profitable companies in the United States are small firms that have been in business for more than ten years and employ fewer than 20 people

The Small Business Administration (SBA) defines a small business as "one which is independently owned and operated for profit and is not dominant in its field." How small must a firm be to not dominate its field?

By the SBA's definition, the factors that determine the size of a business depend on the particular industry it is in.

____________ refers to the traditions, heroes, informal methods of interacting, giving of recognition and other values of a firm and can be strong and used to bind members of the organization like a family, or weak so that connections remain on a professional-only level.

Cooperate culture

When managers are engaged in problem solving, there are several steps they should go through in order to prevent themselves from providing a resolution to a problem that is unrelated to the actual issue under examination. Which of the following most correctly delineates the steps in problem-solving?

Defining the problem, generating alternatives, selecting an alternative, implementing and evaluating the solution.

The coordinated effort of the three levels of managers is required to implement the goals of any company. Which of the following best represents the three basic levels of management?

First-line managers, top managers, and middle managers

Leaders within an organization can be formed in a variety of ways. Which of the following best describes the difference between formal and informal leaders?

Formal leaders have authority within an organization to influence others to work towards the organization's objectives, but informal leaders usually have no such authority.

Which of the following is not a management resource provided by the Small Business Administration?

Free assistance in closing failed small businesses

Total quality management (TQM) has been shown to benefit a company beyond improving a product. Which of the following is not a benefit of TQM?

Improved ability to engage in competitive pricing

Which of the following is true concerning total quality management (TQM)?

It is the coordination of efforts directed at improving customer satisfaction, increasing employee participation, strengthening supplier partnerships, and facilitating an organizational atmosphere of continuous quality improvement.

____is the process of coordinating people and other resources to achieve the goals of an organization.

Management

___ is a motivation technique in which managers and employees collaborate in setting goals for the purpose of clarifying the roles employees are expected to play in reaching the organization's goals.

Management by objectives

Every business must keep records of sales, profits and losses, fixed assets, contacts, tax returns, customers, and a variety of other information that affects the growth and operability of the business. Which of the following is true about small business?

Many small firms need only a simple set of records.

_____ is an employee's attitude or feeling about the job.

Morale

What percentage of home-based businesses have no employees?

Over 90%

Line, line-and-staff, matrix, and network all refer to

forms of organizational structure

____ businesses are important to the U.S. economy because, among other things, they employ about half of all private sector employees, pay 42 percent of total U.S. private payroll, and hire 37 percent of high-tech workers (scientists, engineers, computer programmers, and others).

Small

While the ________________ owns the business, the ______________ controls it

franchisee / franchisor

Which modern theory of motivation states that employees are motivated to achieve goals that they and their managers establish together as long as the goals are specific and attainable and rewards are tied to the goal achievement?

goal- setting theory

When a manager gives an employee the power to accomplish an assigned job or task that might include ordering supplies, spend money on behalf of the organization, or hiring and firing employees, the manager has to that employee.

granted authority

A franchise arrangement includes a franchisor and a franchisee with the franchisor________________ to the franchisee.

granting a franchise

The ________ is a designation given to an informal method of communication within an organization. By launching news of pending changes, it can be used by the organization for its own benefit

grapevine

Elton Mayo conducted the _____ at the Western Electric Company in Chicago, to determine the effects of the work environment on employee productivity.

hawthorne studies

Of the four resources managed within an organization, one is considered far more important than any of the others—so much so that management of this resource is considered to have a greater impact on the organization than even the vital components of the organization. Which of the following is the resource described in this paragraph?

human

Which of the following theories or studies maintained that, as pertaining to employees, a state of no dissatisfaction cannot exist because people will always be dissatisfied with something?

hygiene theory

An organization is a formal structure consisting of interrelated positions. What is the name given to a group created within that organization to accomplish goals that may or may not be relevant to the organization?

informal group

What is a group created by the members themselves to accomplish goals that may or may not be relevant to an organization?

informal group

A(n) ____ is used to measure an employee's contribution to the organization

input- output ratio

Jeffrey Inc. is a large business that produces off-road vehicle parts. In addition to this market stream, Jeffrey produces auto parts, boat parts, and parts for machinery and equipment. Inventions, LLC is a small business that focuses only on the off-road vehicle market and has created lighter weight, stronger, and more efficient parts for off-road vehicles. Its primary market is off-road racing which it believes will serve the dual purpose of showcasing its product and filling the needs of its customers. Inventions has significantly increased its market share in the off-road vehicle parts market over the years causing Jeffrey to revamp its marketing techniques and reanalyze its customer's needs. Which of the following is true about the relationship of small businesses to large businesses?

Small businesses challenge larger, established firms in many ways, causing them to become more efficient and more responsive to consumer needs.

The growth of women and minorities in franchising is attributable to which of the following activities?

Special outreach programs designed to encourage franchisee diversity

Having a business plan causes a new business owner to think through all of the aspects of business ownership, costs, capital needed for start-up, and can be used to review company goals and benchmark when they are met. Which of the following is true about the company and industry portion of the business plan?

This section of the business plan gives the background of the company, explains the legal business form it will take, provides information about the products or services to be offered, reviews potential customers, current competitors, and the business's future

What is the purpose of an organization's mission statement?

To make a statement of what makes the organization different from others

Total quality management can be a boon to a business in many aspects of its operation, however it will not work if management fails in two crucial areas. Which of the following statements most closely articulates the issues that, if left unaddressed, could cause TQM to fail?

Top management must be strongly committed to TQM and must coordinate the specific elements of a TQM program so they work in harmony with each other.

___________ was forged by Toyota Motor Company in Japan as a way to coordinate efforts at improving customer satisfaction, employee participation, strengthening supplier partnerships, and improving the quality of their product.

Total quality management

What is meant by dual-branded franchises?

Two franchisors offer their products together

Southwest Airlines is known for closely following its mission statement: Southwest Airlines is dedicated to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. In keeping with this statement, the company has developed inner rites, rituals, heroes, and values including holding a Christmas party in a hanger in Dallas every year and flying in employees from throughout the United States to attend. Awards are given at the party, entertainment is provided by employees, and dinner is provided for everyone. What do these activities describe?

a communal corporate culture

Human Resources Mangement

all activities involved in acquiring, maintaining, and developing an organizations human resources

Several factors contribute to the entrepreneurial spirit in the United States, but the most important is the personal characteristics of the individuals who start businesses. Studies have shown that personal factors in small-business success include family background, willingness to accept a challenge, ____

and a desire to determine one's own destiny

Delegation assigns work and power to other workers as required by the centralization or decentralization of authority within the organization. What is the last step in the delegation process?

assign accountability

Doug is a line manager at XYZ Corporation. He is very task-oriented and makes all of the decisions with little concern for employee opinion. Under his ____________ leadership style, employees are told exactly what is expected from them and given specific guidelines, rules, and regulations on how to achieve their tasks.

autocratic

Managers must coordinate an organization's resources to achieve the organization's goals. Which of the following is not typically considered as an organization's resource?

intellectuals

Three business students are having a discussion regarding leadership styles. One argues that autocratic leadership is best, another argues that participative leadership is best, and the last argues that entrepreneurial leadership is best. Studies have shown however that the most effective style depends on the right balance between

interaction among employees, the work situation, and manager's personality

A business plan is essential for starting a new business because it

is a guide for the person starting a business