MGMT-309 Exam III Review Questions

1. An innovation that changes the physical process by which a product or service is made is a ____ innovation, while an innovation that changes the process by which a product or service is conceived, built, and delivered to customers is a ____ innovation.

technical, managerial

According to Graicunas, which type of interaction is between subordinates only? Operative Direct Group Cross

Cross

1. When a supervisor has many direct reports, the supervisor has a ____ span of management.

Wide

Which of the following factors suggest that an organization would benefit from a narrow span of management? Check all that apply. Employees and their managers work in a single location. The work of the organization requires little communication between employees and their managers. New situations arise frequently, calling for collaboration between staff and their managers. Managers have number of responsibilities which are both functional and supervisory. The culture is one that prioritizes formal authority and gives lower-level employees little discretion to act.

New situations arise frequently, calling for collaboration between staff and their managers. Managers have number of responsibilities which are both functional and supervisory. The culture is one that prioritizes formal authority and gives lower-level employees little discretion to act.

A corporation in the hospitality industry groups jobs according to whether employees work in hotels or restaurants. What basis for departmentalization is the corporation using? Location Function Product Customer

Product

Which of the following factors suggest that an organization would benefit from a narrow span of management? Check all that apply. The culture is one that prioritizes formal authority and gives lower-level employees little discretion to act. The work of the organization requires little communication between employees and their managers. Managers have number of responsibilities which are both functional and supervisory. Employees and their managers work in a single location. New situations arise frequently, calling for collaboration between staff and their managers.

The culture is one that prioritizes formal authority and gives lower-level employees little discretion to act. Managers have number of responsibilities which are both functional and supervisory. New situations arise frequently, calling for collaboration between staff and their managers.

Which of the following factors suggest that an organization could benefit from a wide span of management? Check all that apply. The culture places a value on empowered subordinates who are comfortable making decisions about their work. Employees and managers are highly proficient in their jobs. Employees and managers need to communicate frequently to coordinate their work. Most activities can be performed according to established procedures. Tasks tend to vary greatly among employees.

The culture places a value on empowered subordinates who are comfortable making decisions about their work. Employees and managers are highly proficient in their jobs. Most activities can be performed according to established procedures.

Choose the span of control best suited for the situation. Task specialization. Interdependent work flows. Heavy use of unskilled labor. Highly competent managers.

Wide Narrow Narrow Wide

1. An innovation that completely replaces an existing product or services is _____ innovation, while an innovation that modifies an existing product or service is _____ innovation.

a radical an incremental

To improve the speed of decision making, an organization adopts a ____ structure, reducing the number of layers of management.

flatter

An organization is structured so that only a few employees report to each supervisor; this organization has a ____ span of management.

narrow

Which of the following are assumptions underlying organization development (OD)? Check all that apply. Employees have a strong need to be accepted by others in the organization. The character of the organization influences employee behavior. Employees want to grow and develop. A change effort should completely reimagine the organization.

Employees have a strong need to be accepted by others in the organization. The character of the organization influences employee behavior. Employees want to grow and develop.

The owner of the business where you work has asked for your advice on restructuring the organization. You know that customer service is the cornerstone of the company. What do you recommend? Check all that apply. A taller structure will improve the speed at which decisions are implemented. Flatter structures are appropriate for organizations which empower employees to solve customer problems. With a tall structure, supervisors can avoid hearing about customer complaints. A flatter structure will further centralize decision making.

Flatter structures are appropriate for organizations which empower employees to solve customer problems.

A company groups jobs according to the types of activities the employees perform and the type of expertise they have. What basis for departmentalization is the company using? Functional Location Product Customer

Functional

Identify the step in the innovation process at which the following actions are most likely to occur. Once Eleanor's new clothing line got publicity on blogs and social media, and people began to see the products, sales started to steadily increase.

Growth

Which of the following is a disadvantage of location departmentalization? Administrative costs can be high because activities in different places need to be monitored across department boundaries. Administrative costs can be high due to the need to integrate activities of different departments related to the same customer. It can be difficult to determine which department is accountable for success or failure. Employees may focus on the success of their product and lose sight of tradeoffs that would benefit the organization as a whole.

Administrative costs can be high because activities in different places need to be monitored across department boundaries.

Which of the following is a disadvantage of location departmentalization? Employees may focus on the success of their product and lose sight of tradeoffs that would benefit the organization as a whole. Administrative costs can be high due to the need to integrate activities of different departments related to the same customer. It can be difficult to determine which department is accountable for success or failure. Administrative costs can be high because activities in different places need to be monitored across department boundaries.

Administrative costs can be high because activities in different places need to be monitored across department boundaries.

Which of the following is a disadvantage of customer departmentalization? Administrative costs can be high because activities in different places need to be monitored across department boundaries. It can be difficult to determine which department is accountable for success or failure. Administrative costs can be high due to the need to integrate the common activities of different departments. Employees may focus on the success of their product and lose sight of tradeoffs that would benefit the organization as a whole.

Administrative costs can be high due to the need to integrate the common activities of different departments.

Identify the step in the innovation process at which the following actions are most likely to occur. A single loan officer handles a customer's application throughout the process, rather than having each step completed by a different bank employee.

Application

If a job is designed to give the employee a large amount of control over their work, the job is emphasizing which core dimension of job design? Task significance Autonomy Task identity

Autonomy

A government agency groups jobs according to whether employees provide services to individuals or businesses. What basis for departmentalization is the agency using? Location Customer Product Function

Customer

Which form of departmentalization is best if the company services both business clients and end consumers? Customer Product Function Location

Customer

Identify the step in the innovation process at which the following actions are most likely to occur. A manufacturer that makes compact disk (CD) players sold fewer CD players once people began buying music in MP3 format.

Decline

Identify the step in the innovation process at which the following actions are most likely to occur. Gilberto considers whether a narrower version of the company's smartphone would make the screen too small for most users' needs.

Development

The table lists advantages to organizations of different bases for departmentalization. For each row, select the basis for departmentalization that offers that advantage. (Functional, location, customer, product). Departments are staffed by experts in a certain line of work. All activities associated with a certain output can be easily coordinated. Performance is easily measured and accountability is clear. Decision making tends to be well coordinated and fast. Department supervisors need to be an expert in only one type of work.

Functional Product Product Functional Product Functional

An employee performs well on one dimension of the job and has average performance on all other dimensions of the job. The manager gives the employee a high overall rating. Which kind of error is the manager committing?

Halo error

Identify the step in the innovation process at which the following actions are most likely to occur. Learning from its staffing shortages in the past, a concert venue now has extra ticket-office staff working the first few days after popular concert tickets first become available.

Launch

Using your understanding of the differences between the different forms of innovation, categorize the innovations listed. CRM Systems Online Banking Self check-out system Direct Deposit Instant Messaging

Managerial Technical Technical Technical Managerial

Which of the following is a significant trend today in organization structure and design? Many organizations are becoming taller. Many organizations are upgrading their employees' skills. Many organizations are becoming flatter.

Many organizations are becoming flatter.

1. In which stage of the innovation process do most competitors have access to the innovation?

Maturity

Identify the step in the innovation process at which the following actions are most likely to occur. Although few cell phone manufacturers offered touchscreen phones in the early 2000s, other companies figured out how to add similar technology to their products.

Maturity

In order to provide managers with information about employees' perceptions and attitudes, an organization development consultant would:

conduct an employee survey.