SEVI 2053, Exam 2 Review

This deals with establishing organizational goals and deciding how to accomplish them; it is sometimes referred to as the "first" management function because all other management functions depend upon it. a. Mission b. Planning c. Leading d. Human resources e. Dore competencies

b

Utility is the ability of a good or service to satisfy a human need. Which type of utility is the concern of operations management? a. Place utility b. Form utility c. Possession utility d. Time utility

b

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

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? a. Assign responsibility b. Assign accountability c. Accepting responsibility d. Grant authority

b

Giving employees not only tasks but also the power to make commitments, use resources, and take whatever actions are necessary to carry out those tasks is the definition of: a. departmentalization. b. delegation of authority. c. leadership. d. responsibility. e. accountability.

b

If a company has a major problem, what type of committee might it create to investigate the problem? a. Ad hoc committee b. Task force c. Seated committee d. Standing committee

b

Mark's job involves purchasing raw materials, managing inventory, and scheduling the workers who build the company's product, Mark is a(n) _____ manager. a. marketing b. operations c. administrative d. human resources e. financial

b

The major decisions involved in design planning deal with: a. human resources, community development, and use of technology. b. product line, required capacity, and use of technology. c. type of business ownership, financial planning, and human resources. d. required capacity, financial planning, and physical location. e. financial planning, product line, and supply-chain management.

b

What is the name given to an economy in which less effort is devoted to the production of goods than other things? a. Command economy b. Service economy c. Market economy d. Mixed economy

b

Which leadership style is considered the best? a. Participative b. Each of the leadership styles can be highly effective in the right situation. c. Entrepreneurial d. Autocratic e. Free-rein

b

Which managers are responsible for recruiting and hiring employees, developing and administering employee benefits, training and performance appraisal programs, and dealing with government regulations concerning employment practices? a. Marketing managers b. Human resources managers c. Operations managers d. Administrative managers e. Financial managers

b

What type of leader seeks input from almost all workers and makes the final decisions based on their support? a. Consultative leaders b. Collaborating leaders c. Democratic leaders d. Consensus leaders

d

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

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

A(n) ____ manages the systems that convert resources into goods and services.

operations manager

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

organizational chart

_____ involves three phases to convert an idea that meets customer needs to an actual good or service.

planning for production

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

When a company tests products to ensure that the goods and services are produced in accordance with design specifications, it is engaged in ____

quality control

Part of the development of a product involves ___ and ____ as the product is improved, which generally results in an essentially new product.

refinement extension

____ of materials is the sequence of workstations that the materials will follow in the production process.

routing

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

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

When a research and development department is engaged in activities geared toward discovering new knowledge with some potential use it is engaged in ____

applied research

"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 _______

a discrepancy between an actual condition and a desired condition

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? a. Informal group b. Informal organization c. Grapevine d. Formal organization

a

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? a. Chain of command b. Organizational hierarchy c. Organizational command chain d. Organizational chart

a

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? a. Departmentalization by function b. Departmentalization by customer c. Departmentalism by product d. Departmentalization by location

a

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? a. Wide span of management b. Narrow span of management c. Centralized span of management d. Line structure of management

a

Jake works in production for his company. Each week his work group is assigned a production quota to ensure enough product is available to meet the goals of the company. In this case, the production quota is an example of a(n) _____ plan. a. operational b. tactical c. business d. SWOT e. strategic

a

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? a. Intellectuals b. Materials c. Finances d. People

a

Manufacturing in the United States has dropped significantly, however the cost of manufacturing has decreased. Which of the following can be attributed to the increase in manufacturing productivity in the United States? a. Innovation and skilled workers b. Reduced competition and outsourcing c. Innovation and technology d. Technology and abundance of workers

a

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. A communal corporate culture b. A fragmented corporate culture c. A mercenary corporate culture d. A health-focused corporate culture

a

The level of management that is responsible for developing tactical and operational plans and makes up the largest group of managers in most organizations is _____. a. middle management b. financial management c. operational management d. first-line management e. top management

a

The major resources used in production are financial, material, information, and people. What does the magnitude of change have to do with the conversion process of these resources? a. The magnitude of change of a conversion process is the degree to which the resources are physically changed. b. The magnitude of change refers to the resource or resources that make up the major or most important input. c. The magnitude of change refers to the concentration of a particular input used to produce a particular product. d. The magnitude of change refers to the percentages of each of the resources that are consumed in the manufacturing process.

a

The three steps of the _____ process include setting standards against which performance can be compared, measuring actual performance and comparing it with the standard, and taking corrective action as necessary. a. controlling b. planning c. motivating d. leading e. organizing

a

When does routing take place for operations managers? a. After materials have been purchased and their use determined b. Prior to even considering which parts to purchase and where c. After materials have been purchased, but before their use is determined d. Prior to all material procurement e. As the final stage of the manufacturing process

a

Which of the following is NOT a factor that influences whether a firm is decentralized? a. A code of ethics b. The external environment c. The abilities of lower-level management d. The nature of decision risk e. Prior use of centralization or decentralization

a

Which technique do businesses use to improve quality of products and services, as well as overall performance? a. Six Sigma b. Continuous improvement c. Statistical process control (SPC) d. Total quality management (TQM)

a

Which of the following is true concerning total quality management (TQM)? a. It includes incentives such as financial rewards to employees and suppliers who excel at the TQM process. b. 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. c. It utilizes benchmarking to evaluate the products and processes within its organization in order to improve quality. d. It is only effective if management addresses each of the components of customer satisfaction, employee accountability, strengthening supplier partnerships, and continuous quality improvement.

b

_____ is the second step in the decision-making process and it depends on creativity for new and useful ideas, regardless of where the ideas come from. a. Identifying the problem b. Generating alternatives c. Selecting an alternative d. Evaluating the solution e. Implementing the solution

b

_____ 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. a. Self-managed b. Matrix c. Line-and-staff d. Line e. Network

b

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? a. First-line managers, second-line managers, and top managers. b. Financial managers, operations managers, and human resource managers. c. First-line managers, top managers, and middle managers d. Marketing managers, human resources managers, and recruitment managers.

c

The final step in managerial decision making entails _____. a. implementing the alternative b. selecting an alternative c. evaluating the solution d. generating alternatives e. identifying the problem

c

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. a. narrow; deep b. wide; deep c. wide; narrow d. narrow; wide e. deep; narrow

c

Employees have different _____; some are interested primarily in earning as much money as they can, while others may be spurred on by opportunities to get promoted. a. planning b. implementing c. motivations d. networking e. agendas

c

How is the production of services similar to the production of manufactured goods? a. Since both manufactured goods and services are intangible, it is difficult to evaluate customer satisfaction. b. The durability is the same for both manufactured goods and services. c. Both types of businesses must plan, design, execute, evaluate, improve, and redesign their products to satisfy customers. d. Both manufactured goods and services are labor-intensive. e. The level of involvement of the customer is the same for both manufactured goods and services.

c

The form of departmentalization that groups jobs that perform similar functional activities, like finance and marketing, is called: a. departmentalization by economics. b. departmentalization by location. c. departmentalization by function. d. departmentalization by product. e. departmentalization by customer.

c

The process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs is referred to as: a. materials requirements planning. b. economic order quantity model. c. inventory control. d. raw materials inventory. e. just-in-time inventory.

c

What is the advantage of departmentalization by customer? a. Departmentalization by customer demands a large administrative staff and elaborate control system for coordination. b. Departmentalization by customer can lead to slow decision making. c. Departmentalization by customer allows the firm to deal efficiently with unique customers or customer groups. d. Departmentalization by customer causes some duplication of specialized activities. e. Departmentalization by customer cannot be combined with any other departmentalization base.

c

What is the name given to a management structure in which the line managers are provided with specialists? Please select the most specific answer. a. Line structure b. Cross-functional structure c. Line and staff structure d. Matrix structure

c

What is the purpose of an organization's mission statement? a. To provide a brief unified statement for marketing purposes b. To provide a framework for customer expectations c. To make a statement of what makes the organization different from others d. To inform the employees of the direction the company intends to take

c

What utility is created by people converting raw materials, finances, and information into finished products? a. Place utility b. Possession utility c. Form utility d. Operations utility e. Time utility

c

When a company looks to departmentalize by areas of business like Japan, America, and Australia it is exemplifying ______. a. departmentalization by economics b. departmentalization by function c. departmentalization by location d. departmentalization by customer e. departmentalization by product

c

When a local pizza parlor takes raw ingredients such as tomatoes, cheese, and flour to make a pizza for a customer, the raw ingredients are known as the _______ of the conversion process and the degree to which the resources are physically changed is known as the _______ of the conversion process. a. magnitude; utility b. utility; focus c. focus; magnitude d. magnitude; focus e. focus; utility

c

When the decisions to be made by a business are risky and when low-level managers are not highly skilled in decision making then the company tends to be more _____. a. overcentralized b. decentralized c. centralized d. cross-functional e. undercentralized

c

Which of the following is NOT a disadvantage of a network structure? a. Low morale of hourly workers b. Lack of a clear hierarchy c. No centralized leader d. High turnover of hourly workers e. Problems controlling the work quality of other organizations

c

Which of the following is NOT a potentially negative consequence of job specialization? a. Poor quality of work b. Boredom and dissatisfaction with jobs c. Less injuries d. Higher rate of absenteeism e. High employee turnover

c

Which skills are defined as the ability to deal with people, both inside and outside the organizations? a. Conceptual skills b. Analytical skills c. Interpersonal skills d. Communication skills e. Technical skills

c

______ 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.

corporate culture

Factors that bear upon a company's organization include the external environment in which the firm operates, the nature of the decision to be made, the abilities of lower-level managers, and the firm's established practices. If a firm operates in a complex unpredictable environment with dependable lower-level managers, which of the following would be most likely true about the company? a. Top management will delegate authority only when necessary to achieve an immediate goal. b. Top management will concentrate authority at the upper levels of management. c. It will be a centralized organization. d. It will be a decentralized organization.

d

If the span of management is wide, _______ levels are needed, and the organization is _______. If the span of management is narrow, ________ levels are needed, and the resulting organization is _______. a. fewer; tall; more; flat b. more; tall; fewer; flat c. more; flat; fewer; tall d. fewer; flat; more; tall

d

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? a. Formal leaders may exert power, grant rewards and punishments, and possess expert knowledge, but informal leaders lack many or all of these abilities. b. Formal leaders exert their influence in support of the organization, but informal leaders do not. c. Formal leaders work for the good of the organization, but informal leaders have no such authority and work for the employees. d. 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.

d

Nadine manages the quality control department for her company. Recently, Nadine became aware of a quality problem with one of the company's products. After studying the issue Nadine determined the quality of raw materials used in the product was deficient and began looking at changing suppliers. Which step in the decision-making process did Nadine exemplify when she determined the quality of raw materials was substandard? a. Generating alternatives b. Evaluating the solution c. Develop options d. Identifying the problem e. Selecting an alternative

d

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? a. Information b. Financial c. Materials d. Human

d

One reason for _____ is efficiency. People can perform more efficiently if they master just one distinct task rather than all tasks. a. job rotation b. flextime c. job sharing d. job specialization e. job enrichment

d

The production of services is different from the production of manufactured goods in all of the following ways, except: a. Services are usually labor-intensive. b. Services are provided when and where the customer desires the service; in many cases, customers will not travel as far to obtain a service. c. Services are intangible, and it is therefore more difficult to evaluate customer satisfaction. d. When compared to services, customers are much more involved in obtaining the manufactured good they want or need. e. Services are consumed immediately and, unlike manufactured goods, cannot be stored.

d

Top managers spend most of their time performing which of the following management functions? a. Controlling b. Directing c. Staffing d. Planning e. Organizing

d

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? a. Lowering of overall operating costs b. Improved ability to use premium pricing c. Higher return on sales and investments d. Improved ability to engage in competitive pricing

d

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? a. Top management must inform all employees of the need and desire for TQM to further company goals and must make it a top priority. b. Top management must meet with suppliers and employees frequently to ensure that they do not lose sight of the TQM goals. c. Top management must give TQM frequent attention and frequently communicate the TQM goals to employees. d. 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.

d

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? a. Job enlargement b. Job specialization c. Job design d. Job rotation

d

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? a. Autocratic b. Democratic c. Consensual d. Consultative

d

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? a. Analyzing, adopting an alternative, preparing for negative consequences. b. Planning, preparing, evaluating results. c. Brainstorming, norming, determining a solution, implementing. d. Defining the problem, generating alternatives, selecting an alternative, implementing and evaluating the solution.

d

Which characteristic does NOT support a narrow span of management? a. A great deal of interaction is required between supervisor and workers b. New problems arise frequently c. Workers are physically located far from one another d. Few new problems are expected to arise e. The manager has much work to do in addition to supervising workers

d

_____ is a significant question because, once the decision has been made and implemented, the firm must live with it due to the high costs involved. a. Use of technology b. Process layout c. Continuous manufacturing organization d. Facility location e. Fixed-position layout

d

_____ refers to the processes an organization uses to maintain its own established quality standards within the organization. a. Just-in-time inventory b. Malcolm Baldrige National Quality Award c. Materials requirements planning d. Quality control e. Scheduling

d

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 _____

department by product

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 _____

departmentalized by location

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

disrupted ineffective

All of the following are steps in the operational planning process, except: a. selecting a planning horizon. b. estimating market demand. c. comparing market demand with capacity. d. adjusting products or services to meet demand. e. developing a plan to convert the idea into a new good or service.

e

Knowing how to sort large amounts of information in order to find relevant facts to resolve a problem or issue is an example of: a. technical skills. b. leadership. c. conceptual skills. d. interpersonal skills. e. analytical skills.

e

The CEO of a large beverage company led the company in the takeover of its two largest bottlers. The CEO pushed for the merger because buying the bottlers gave the company control of 80 percent of its North American distribution, making it easier for the company to test new products. The CEO's ability to think in abstract terms and see how parts of the company fit together to achieve long-term goals is an example of _____. a. technical skills b. analytical skills c. communication skills d. interpersonal skills e. conceptual skills

e

The _____ personality tends to take initiative, be visionary, and be forward-looking. Their enthusiasm energizes and inspires employees. a. participative b. democratic c. autocratic d. free-rein e. entrepreneurial

e

The amount of products or services that an organization can produce in a given time is known as: a. design process. b. product line. c. mass production. d. analytical process. e. capacity.

e

To combat the potential negative consequences of specialization, managers often turn to _______, the systematic shifting of employees from one job to another. a. division of labor b. job sharing c. departmentalization d. span of management e. job rotation

e

Which of the following is not one of the four types of utilities? a. Place b. Possession c. Time d. Form e. Magnitude

e

Which term describes the act of buying of all materials needed by the organization? a. Materials requirement planning b. Quality control c. Selling d. Just-in-time e. Purchasing

e

_____ leadership can motivate employees to work effectively because they are consulted before making decisions. This helps them understand which goals are important and fosters a sense of ownership and commitment in decision making. a. Free-rein b. Transactional c. Autocratic d. Entrepreneurial e. Participative

e

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

forms of organizational structure

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

______ is the process of managing inventories in such a way as to minimize costs, including both holding costs and potential stock-out costs.

inventory control

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

The ____ refers to the degree to which resources are physically changed during the conversion process.

magnitude of change

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

management

In 1900 only 28 percent of American workers were employed in service firms but by the beginning of 2017 this figure had risen to 88 percent. This increase in service-related business has led to America being said to have a _____

service economy

____ is/are characterized by being consumed immediately, being provided when and where the customer desires them, is/are labor-intensive, and has/have a high degree of customer involvement.

services

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

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

______ 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