management exam 3 review

3 stages in order of the entrepreneurship process

- identify, - evaluate, - & exploit opportunities

value analysis

a cost-control and cost-reduction technique that helps managers control operations by focusing primarily on material costs

organizational rejuvenation

a firm that is focusing on new processes instead of new products in order to improve its ability to execute strategy is undergoing

committee

a group of individuals charged with performing a specific activity and is usually classified as a task group

process strategy

a plan of action outlining the means and methods the organization will use to transform resources into goods and services

zero-based budgeting

a planning and budgeting process that requires managers to justify their entire budget in detail rather than referring to budget amounts established in previous years

doing personal favors for people is an example of an attempt to create which kind of attitude when working to increase managerial power?

a sense of obligation toward the manager

cross-functional team

a work team composed of individuals from various functional specialities

equity principle

according to this principle, management shall respect the rights of all employees when setting policy regarding security measures

accountability principle

according to this principle, organizations must clearly define and acknowledge information security accountability and responsibility

total revenue

all sales dollars accumulated from selling manufactured products or services

renting games from an automatic vending machine

an example of a new method of organizing

product strategy

an operational plan of action outlining which goods and services an organization will product and market

current ratio

calculated as current assets divided by current liabilities

return on investment

calculated as profit after taxes divided by total assets

storming stage of group development

characterized by intragroup conflict

group

consists of any number of people who interact with one another and are psychologically aware of one another

kaizen

continuous improvement

cost accounting

determination of the cost to manufacture a product and preparation of internal reports for management of the processing divisions

informal organizational communication

does not follow the lines of the organization chart; instead, this type of communication typically follows the pattern of personal relationships among organization members

JIT

emphasizes maintaining organizational operations by using only the resources that are absolutely necessary to meet customer demand

behavior modification theory

emphasizes that behaviors are functions of their consequences

Miguel believes creativity among his team members is suffering. to address this issue, what should Miguel do?

encourage team members to respect others' perspectives

an individual who notices new patterns of people's behavior has ________

entrepreneurial alertness

Shannon, a marketing executive, compares his quarterly sales to those of others in his department. he feels demotivated when he realizes that he is rewarded less even though he puts in the same amount of effort as others. which of the following theories explains Shannon's behavior?

equity theory

which creative idea follows Crosby's work on how to achieve quality in an organization?

establishing an organizational bias toward handling quality issues immediately

according to mcgregor's theory Y, workers __________

exercise self-direction

investments are committed in the __________ stage of entrepreneurship

exploitation

communication macrobarriers

factors that hinder successful communication in a general communication situation

formal organizational communication

follows the lines of the organization chart, which depicts relationships of people and jobs and shows the formal channels of communication among them

listening shows organization members that the manager is interested in what subordinates have to say and encourages them to use ______________ communication channels in subsequent situations

formal

you're the financial controller of a small assisted-living center in upstate New York that serves mentally and physically disabled clients. which of the following represents the most complete list of the main functions over which you should exert control?

general accounting, budgeting, cost accounting, performance reporting, data processing, and product development

creativity

generating an original idea that is useful and actionable

within the __________, members attempt to maximize the group's success by matching individual abilities with group activities and by assisting one another

group control

quality

how well a product does what it is intended to do--how closely it satisfies the specifications to which it was built

information asymmetry helps individuals to ________

identify opportunities

performance reporting

identifying individuals in the organization who control activities and preparing reports to show how well or how poorly employees perform

market position standards

indicate the total sales of a particular market that a company would have relative to its competitors

show respect for team members strategy

managers need to show team members that they are highly valued

communication and decision-making stage

members are able to communicate frankly with one another

excess capacity

output capacity that results in higher product costs

location strategy

plan of action that provides the organization with a competitive site for its headquarters, manufacturing, services, and distribution activities

general accounting

preparing balance sheets, income statements, and other statements and reports

profitability standards

return on investment

total cost

sum of fixed and variable costs associated with production

Arbitrage

taking advantage of a glitch

information quantity is one of the four primary factors in determining the value of information; it is defined as _________

the amount of decision-related information managers possess

loss

the amount of the total costs of producing a product that exceeds the total revenue gained from selling the product

profit

the amount of total revenue that exceeds the total costs of producing the products sold

information quality

the degree to which information represents reality

information timeliness

the extent to which the receipt of information allows decisions to be made and action to be taken so the organization can gain some benefit from possessing the information

linking pin

the managers or supervisors are responsible for the coordination of and communication among formal organizational groups

break-even analysis

the process of gathering information that summarizes various levels of profit or loss associated with levels of production

information appropriateness

the relevancy of information to the decision-making situation the manager faces

authority

the right to command others to respond to others

production

the transformation of organizational resources into products

insufficient capaciti

this output capacity results in loss of sales

layout strategy

this strategy is a plan of action that outlines the location and flow of all organizational resources around, into, and within production and service facilities?

increasing productivity

treat employees with dignity and make them feel they are part of the team

optimal capacity

type of output capacity that has the quantity and timing in balance, minimizes operating costs, and maximizes profits

timeliness principle

under this principle, organizations should act in a timely manner to prevent or respond to breaches of and threats to information systems

assessment principle

under this principle, organizations should periodically assess the risks to information and information systems

ethics principle

under this principle, organizations should use information and execute information security in an ethical manner

receiving activities

uploading, identifying, reporting, and storing inbound shipments

who is LEAST likely to identify an entrepreneurial opportunity?

Charlie, who has a narrow social network and has always lived in his hometown

this situation creates a new geographic market opportunity for entrepreneurs to sell their products and services

a country lifts its trade embargo with another country

job rotation

a job design strategy that states that moving workers from job to job, rather than requiring them to perform only one simple job, will decrease boredom

which of the following best describes the strategy of job enlargement?

a manager increasing the number of operations an individual performs

in the innovation process, what must have before a new idea can be made practical in order to enhance organizational success?

a new idea that could help the organization be more successful must be established

according to Maslow's hierarchy of needs, _________ is a social need

a person's desire to be accepted by others

in the incremental improvement approach, what happens after an improvement theme is chosen?

a quality improvement team is organized

job design

a strategy that managers can use to motivate organization members that involves designing jobs that organization members perform

self-managed team

a work team that operates without a manager and is responsible for a complete work process or segment

emotional intelligence

ability of people to recognize their own feelings and the feelings of others

process theory of motivation

an explanation of motivation that emphasizes how individuals are motivated

in the incremental improvement approach, what happens before a quality improvement team is organized?

an improvement theme is chosen

angel investor

an individual who gives money to an entrepreneur to provide funding for an opportunity

friendship group

an informal group that forms in organizations because of the personal affiliation members have with one another

interest group

an informal group that gains and maintains memberships primarily because of a common concern members have about a specific issue

successful communication

an interpersonal communication situation in which the information the source intends to share with the destination and the meaning the destination derives from the transmitted message are the same

innovation

applying a new idea to improve organizational processes or products

an entrepreneur who does not want to give up a portion of his firm's equity in exchange for funding should work with a(n) _________

bank

the behavior modification theory emphasizes ____________

behaviors are functions of their consequences

in the ____________ strategy, managers keep team members informed of organizational news

communicate often to team members

in __________, considering the other person's interests and needs is exemplified by taking the opportunity to convey something of help or value to the receiver

communication

upward organizational communication

communication that flows from any point on an organization chart upward to another point on the organization chart

downward organizational communication

communication that follows from any point on an organization chart downward to another point on the organization chart

verbal communication

communication that uses either spoken or written words to share information with others

what is the second stage of groupthink?

concurrence seeking

when time pressure is low, managers can increase creativity by __________

conveying the importance of the work

which step of the innovation process puts a new idea in front of end users or customers to test its value?

diffusing

communication microbarriers

factors that hinder successful communication in a specific communication situation

before evaluating the practicality of the opportunity, the entrepreneur must __________

identify the entrepreneurial opportunity

process ideas focus on inventions that __________

improve how manufacturing works

choosing a(n) _________ is the first step in the incremental approach to TQM

improvement theme

according to the porter-lawyer theory of motivation, the extent to which an individual accomplishes a task is determined by the _________

individual's perception of what is required to perform the task

decoding

interpreting the message to determine its meaning

what is true about entrepreneurship?

it exploits opportunities in different contexts

Jenna receives positive feedback about the designs of her smartphone cases at the local flea market and determines her entrepreneurial risk to be low. - which factor explains that Jenna is wrongly assuming her risk to be low?

law of small numbers

as a result of total quality management (TQM), organizations see a decrease in ___________

liability costs

reengineering would be necessary to improve quality when ____________

major changes need to be made simultaneously

customers who find value in a new product provide _______

market demand

monetary incentive

monetary compensation program available to employees as a form of motivation

reverse innovation occurs during the ________ step of the innovation process

monitoring

which of the following is true of the needs-goals theory?

motivation begins with an individual feeling a need

self-actualization need

need for growth

the first principle of reengineering for quality improvement is to ________

organize around outcomes

illusion of control

overestimating one's ability to determine and shape the outcome of an opportunity

to evaluate if an opportunity is practical, entrepreneurs __________

perform a feasibility analysis

according to Alderfer's ERG theory, the basic category of existence need reflects an individual's need for _________

physical well-being

influencing

process of guiding the activities of organization members in appropriate directions

promoting a service in the marketplace is an example of a(n) _______ idea

product

social entrepreneurship

providing long-standing needs to. society by identifying, evaluating, and exploiting opportunities

which creative idea about how to achieve quality in an organization follows Deming's work?

publishing quality goals so workers understand expectations

venture capitalists differ from angel investors in that venture capitalists usually ______________

put up more money per investment

hiring for creativity means looking for someone who is __________

quiet

quality

refers to how closely a product meets the specifications to which it was built

serial transmission

refers to passing information from one individual to another in a series

physiological need

related to the normal functioning of the body and includes the desire for water, food, rest, and sex

nonverbal communication

sharing information without using words to encode thoughts

through ________, it is possible to identify opportunities

social networks

noise

stimuli that compete with the communication message

domain definition

takes place when a firm seeks to create a product market position its competitors haven't recognized

total quality management

the continual process of ensuring all production-related activities have a role in establishing excellence

according to Maslow's hierarchy of needs, __________ is known as an esteem need

the desire for respect

feedback

the destination's reaction to a message

Rebecca and Alwin work for treegena corp., a company based in New York. They have recently started working on an international project. They take some time to settle, to get to know the other team members, and to understand the objectives of their project. Which of the following stages of group development is described in this scenario?

the forming stage

social entrepreneurship differs from corporate entrepreneurship in that __________

the goal structure focuses on creating social value over profit

what makes commercial entrepreneurship different from social entrepreneurship?

the goal structure focuses on creating stakeholder wealth over social value

the grapevine can best be described as _____________

the informal organizational communication network

how is social entrepreneurship different from corporate entrepreneurship?

the primary source of funding is donations, not investment

job enrichment

the process of incorporating motivators into a job situation

encoding

the process of putting information into a form that can be received and understood by another individual

communication

the process of sharing information with other individuals and involves one person projecting a message to one or more other people, which results in everyone arriving at a common understanding of the message

monitoring

the step of the innovation process that tracks a newly implemented idea to decide when to improve or terminate

mcgregor's _________ is/are based on assumptions about human nature

theories of motivation

people tend to be more creative at work when ___________

they have some freedom to influence the process used to perform their jobs

norming

this stage of group development is characterized by agreement among team members on roles, rules, and acceptable behavior while working on a team

signal

transmitting from one person to another

when an organization is creative and innovative, it has the ability to ___________

turn good ideas into tangible benefits

which of the following is an example of a technology idea?

using barcoding to improve inventory management

which opportunity is an example of a new method of using raw materials?

using pipe insulation foam to create pool noodles

when would reengineering be necessary to improve quality?

when markets are changing rapidly

Clara and James work for yoyo corp., a leading drug manufacturer based in Boston. They are a part of the research team, and they generally share their ideas and views with their manager so as to improve the products. Clara and James are also involved with the crisis handling department that constantly helps in handling issues in the organization. Clara and James belong to a problem-solving team, which is ______________

when members share ideas or offer suggestions on how work processes and methods can be improved

performing stage

when the team is fully focused on solving organizational problems