Business: Exam 2
mass customization
A bicycle company makes 18 models in more than 2 million combinations
conceptual skills
Ability to see the organization as a whole and visualize how it fits into the broader environment.
cellular or modular layout
Can accommodate changes in design or customer demand
computer-integrated manufacturing
Combining applications such as CAD, CAM, and other computer systems to streamline the manufacturing process
Job enrichment is most closely related to:
Herzberg's higher-level motivators
A comprehensive set of environmental standards that encourages companies to conduct business in a cleaner, safer, and less wasteful way is known as ________
ISO14000
just in time
Inventory system in which materials or supplies are delivered when required and neither sooner nor later
critical path in PERT
Is the most time-consuming sequence of events and activities. PERT is a scheduling tool, and does not help in finding the best or the shortest way.
technical skills
Knowledge of and proficiency in completing specific tasks
democratic leader
Leader who Involves subordinates in goal setting. problem solving. and decision making.
free-reign leader
Leader who favors autonomy and allows group members to make decisions and take action as needed
autocratic leader
Leader who maintains individual control over a decisions and accepts little input from subordinates.
CAM
Motor starters: Orders come in daily and. within 24 hours. the company's machines and robots manufacture, test, and package the starters which are untouched by human hands. This system is so efficient it can even accommodate
What federal law regulates safety and health conditions in most private industries and some public-sector organizations?
Occupational Safety and Health Act of 1970
A decision-making technique that weighs pluses, minuses, and implications of a suggested solution is:
PMI
middle management
People within a company who are in charge of departments or groups but below those in charge of the whole company.
contingency plan
Plan that establishes alternate courses of action if existina plans are disrupted or become ineffective
strategic plan
Plan that establishes organization's major goals and obiectives and allocates resources to achieve them
tactical plan
Plan that translates general goals developed by strategic managers into more specific obiectives and activities
pert chart
Production schedule specifying the sequence and critical path for performing the steps in a project.
mass customization
Purse designer: Software programs unite these two computer-aided support systems while the software is envasive it cuts as much as 80 percent of the time needed to program machines to make parts.
process manufacturing
Refining crude oil into gasoline requires the use of chemicals, pressure, and heat to
ISO 9000 standards
Represent an international consensus of what constitutes effective quality management as outlined by the International Organization for Standardization (ISO).
flexible manufacturing
Shoe designer: The manufacturer programs the computer to make a simple design change, and then that change is readily incorporated into production
objectives
Statements of short-term, specific outcomes that are to be achieved by the firm.
vision
The answer to the question, "Why does this organization exist?"
transparency
The full. accurate. and timely disclosure of pertinent information to stakeholders of the firm.
top management
The most senior staff of an organization (e.g., vice president, CEO, COO).
unlimited liability
The owner is personally and fully responsible for all losses and debts of the business
mission statement
Written declaration of purpose that affirms the highest priorities of the organization.
fixed position layout
a layout that brings all resources required to create the product to a central location
Material Requirements Planning (MRP)
a planning system that schedules the precise quantity of materials needed to make the product
Gannt Chart
a program management charting method that provides a graphical illustration of the time frame for tasks to be completed and what has been completed to date
Management is the process employed to ______ by making the best use of organizational resources.
accomplish organizational goals
Which federal law makes it illegal to discriminate against those over 40 because of their age?
age discrimination act of 1967
Characteristics of the Millennial Generation include: always having the Internet in their world, an expectation that the world won't change much, having cell phones, having been raised by indulgent parents
always having the Internet in their world having cell phones having been raised by indulgent parents
the main idea behind mass production is to produce a large number of limited variety of products ________
at a very low cost
If the director of the film makes all the decisions without input from others, then this leadership style is called:
autocratic
Comparing an organization's practices, processes, and products against the world's best is called _______
benchmarking
The vast collection of information available to knowledge managers today is called:
big data
Rebecca's company is planning to move its manufacturing plant. She is helping the company decide where to relocate the manufacturing facility. She has narrowed the list of possible sites down by considering a) access to transportation, b) crime rates, and c) good quality of life and cost of living. Her manager tells her she has omitted a key consideration. Which of the following is likely the key consideration that Rebecca has missed? a. Cost of shutting down the existing plant b. Difficulty in coordinating the move c. Availability of low-cost labor
c
The result of the increase in the rate of change in the business environment from causes such as natural disasters and global competition has been that companies must:
change more quickly than ever before, adapt to new technologies
An important reason why companies _______ authority is to be more responsive to customer needs.
decentralise
An advantage of a ______ organization structure is that lower level employees have authority to respond more quickly to customer needs.
decentralized
To more quickly respond to customer needs, Urban Insurance Co. is changing its organizational structure to give more authority and responsibility to field managers located across the country. These managers spend time with customers and know what the customers need right away. It appears that the company is moving toward a more ____________ structure.
decentralized
Regardless of the size of the organization, the principles of organizing include:
deciding what work needs to be done, dividing up the tasks to be done, recognizing employee strengths
Industrial productivity gains will _______ the number of workers companies require.
decrease.
production management
describes all the activities managers do to help companies create goods
Big data is gathered from
digital sources, social media, sales transactions
Which of the following theories of motivation is the basis for Management by Objectives?
druckers goal setting theory
Cho started out with one small cupcake shop. Her business has grown so much that she now has two other shops across town. Cho has found that having three locations has greatly increased her production levels. She also notices that the price she pays for supplies (flour, butter, sugar, and packaging materials) has gone down considerably since she can now buy these items in bulk quantities.This exemplifies the principle known as
economics of scale
In which two situations is autocratic leadership effective?
emergencies, working with new, unskilled workers
Giving employees the authority to make a decision without consulting the manager is ______ them
empowering
What theory is based on the idea that employees try to maintain fairness or balance between inputs and outputs as compared to others in similar:
equity
Which theory states that an individual will not put forth effort without first evaluating their ability to perform the task and the value they place on the reward?
expectancy theory
_________ customers include dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use.
external
__________ customers include dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use
external
True or False: A limited partnership refers to a partnership set up for a temporary purpose, such as a real estate development project.
false
True or false: using machines designed to do multiple tasks so they can produce a variety of products is called CAD
false
True or false: The Family and Medical Leave Act of 1993 affects businesses with 15 or more employees.
false - 50 or more
_______ organization structures respond to customer demands faster because its lower-level employees have authority and responsibility for making decisions.
flat
_______ organization structures respond to customer demands faster because its lower-level employees have authority and responsibility for making decisions.
flat
Using machines that are designed to do multiple tasks in order to produce a variety of products is called _______
flexible manufacturing
When the director/manager allows employees to guide themselves toward the goal, then a(n) _______ leadership style is being used.
free-reign
Sick-leave and vacation pay, pensions, and health plans that provide additional compensation are called:
fringe benefits
ISO was formed to promote the development of __________ standards to facilitate the international exchange of goods and services
global
Mitchell just graduated with a management degree. His instructors and professors stressed students' need to arrive in the workplace ______________
globally prepared
Production management has, historically, meant the activities managers do to help their firms produce ______ whereas operations management has evolved into a specialized management area that converts resources, including human resources, to produce goods and ________
goods, services
Which ot the following affect a business's choice of location? government support higher taxes telecommuting options lower taxes
government support higher taxes lower taxes
The study that asked workers to rank a list of iob-related factors in order of what motivated them most was a new direction taken by:
herzberg
Job enrichment theory is based on the higher level motivators of which two theorists?
herzberg, maslow
Managers practice the art of getting things done using organizational resources such as (choose all that apply): information workers equipment customers
information workers equipment
in a production process raw materials are considered ______ whereas the finished products are considered ________
input, output
Service organizations struggle with high employee costs since these firms are ______ intensive.
labor
In a recent survey, what reason was given by nearly half of the respondents when asked what their reason was for changing jobs?
lack of appreciation
What are the factors of production?
land, labor, capital, entrepreneurship, knowledge
If a group of private investors successfully borrowed a large sum of money and purchased the firm from its current owners, we would call this event a:
leveraged buyout
Reasons why a company might relocate to where a resource is plentiful is to enjov: stronger economy less competition lower cost of shipping lower cost of buying
lower cost of shipping lower cost of buying
what product system tailors products to meet the needs of large number of individual customers?
mass customization
The computerized production methods that have made the United States more competitive both domestically and globally include:
mass customization, CAD, CAM
A large organization might use a flat organization structure in order to:
match the flexibility of small firms
A ______ structure, also called a project management structure, sets up teams from different departments, thereby creating two or more intersecting lines of authority.
matrix
Four organizational designs include: line, line and staff, ________, and cross functional teams.
matrix
In a _______ organization, project managers are in charge of teams made up of members from several departments.
matrix
Identify the four ways to structure an organization.
matrix, line, line and staff, cross functional
Two software companies each hold a small percentage of the market. To gain recognition and increase market share, these companies decide to join together to form one company. this is known as ________
merger
statistical process control
method of monitoring quality through random sampling of products and plotting variances from standard
The basic premise of just-in-time inventory is:
minimum inventory is kept on hand
Herzberg studied the relationship between:
motivation and job-related factors
Maslow's theory states that once needs are met they:
no longer motivate
computer-aided design
of computers to assist in the design and development of products
Twenty years ago, your parents invested in shares of a large computer company. As the years have gone by, the investment has grown. However, if the company should go out of business and declare bankruptcy, what would happen to your parent's investment?
only lose the value of their shares
inventory management, quality control, production scheduling, and Follow-up services are elements or a specialized area in management called _________- management.
operations
Management is the process used to accomplish organizational goals by the use of which four functions?
organising, leading, controlling, planning
Of the various forms of business ownership, a ______ is an easy way for two individuals to conduct business.
partnership
general partnership
partnership in which partners share equally in both responsibility and liability
The information gathered from comparing an employee's work to an established standard is:
performance appraisal
Vorde Auto is a car company that makes four models- hybrid sport utility, a sports car, a four-door sedan, and a compact car. Employees at Vorde basically work on only one type of vehicle; each type has an independent product development process and is marketed separately to better serve the customers. Vorde Auto is departmentalized by:
product
Using factors like land, labor, and capital to create goods and services is referred to as ______
production
_______ is the creation of finished goods and services using land, labor, capital, entrepreneurship, and knowledge.
production
limited liabilty company
provides liability protection for owners
Climate schools, and crime are all _____________ issues to be considered when locating a business
quality of life
a company may choose to move its facility to be where a(n) _____ is plentiful in order to enjoy a lower purchase cost or reduced shipping costs associated with it
resources
The control function of management (select all that apply): - rewards people for work well done - measures performance relative to the planned objectives and standards - takes corrective action when necessary - gives workers the education and tools they need to make decisions
rewards people for work well done measures performance relative to the planned objectives and standards takes corrective action when necessary
In his search for a franchised business that would satisfy his passion for the outdoors and earn him a decent living, Crispin noted that the shared profit criterion required of franchisors had significant variance. Some required franchisees to pay 7 percent of their monthly revenues to the franchisor. Others required 4 percent of the profits. In business, we refer to this obligation as a:
royalty
the US economy today is based on consumer spending and about 80% of the jobs are in ______
service sector
process layout
serving different customers with different needs
Examples of fringe benefits that provide additional compensation to employees beyond wages include:
sick days, paid vacation, health insurance
A modern quality control standard that allows for 3.4 defects per one million opportunities is called:
six sigma quality
Important decisions to be made while designing an organization include: span of control, departmentalisation, degree of centralization, budgeting process
span of control, departmentalisation, degree of centralization
World _______ for international exchange of goods and services is the primary goal of ISO.
standards
Skills needed by top level managers differ from those in supervisory positions because:
supervisors have to know the tasks and operations needed by production workers, top managers have to be communicators and motivators
government support and _______ incentives affect a businesses choice in location
tax
vertical merger
the combination of two or more firms involved in different stages of producing the same good or service
The tendency for people to act differently when they know they are being studied is:
the hawthorne affect
conglomerate merger
the joining of firms in completely unrelated industries
horizontal merger
the joining of two firms in the same industry
The project manager building a new underwater dolphin exhibit at City Aquarium is reviewing the chronoloqical sequence of activities that must be completed on the project and the estimated time of completion of each activity. He is employing:
the pert technique
what is the gaol of operations management in service industries?
the provided good experiences for those who use the service
form utlity
the value by converting raw materials, labor, information, and so on into finished products.
A manager that views most employees as motivated to do work is operating under _______________ while a manager that views most employees as lazy, is operating under __________
theory y, theory x
Why are Gantt and PERT charts of great importance to an organization?
to create efficient scheduling
During the most recent economic crisis, Macy's department store switched to a decentralized structure by giving local managers more authority to buy, price, and promote merchandise. Why would the company take such measures?
to merchandise appropriately for each area
The difference between PERT and Gantt is that Gantt provides project ________ while PERT estimates _______ required for project completion.
tracking, time
Managers must recognize that motivating individuals today requires (pick all that apply): understanding of different cultures within a country, that all cultures and subcultures respond to the same methods, familiarity with a variety of cultures from around the world, knowing that generations have different cultures
understanding of different cultures within a country familiarity with a variety of cultures from around the world knowing that generations have different cultures
product (assembly) layout
used to produce large quantities of a few products
what are two characteristics of lean manufacturing:
uses less resources, takes less time
An organization's ________ gives it a sense of purpose and a set of values that unites workers in a common destiny.
vision
an organizations _______ is a broad explanation of why the organization exists and where it is trying to go.
vision
SO was formed to promote the development of ________ standards to facilitate the international exchange of goods and services.
worldwide
for firms with ______ or more employees, the Civil Rights Act of 1964 outlawed discrimination in employment based on sex, race, color, religion, or national orgin
15
assembly process
A production plant that serves as a point where workers and robotics bring together all of the components that create automobiles
Sharon is the VP of Marketing for a company that makes sandwich cookies. She is hiring a new Director of the All-Chocolate Cookies-Division who will report to her (i.e., to Sharon). The Director position has five managers reporting to it. Each manager will supervise up to seven nonsupervisory employees. Sharon is not sure which skills (Technical, Human Relations, or Conceptual) are most important for the Director position. Given the information in the scenario, which of the following best describes the skills that are most important for the Director position? Select all that apply. a) Technical skills b) Human relations skills c) Conceptual skills d) None of the above answers is correct.
A,B,C
purchasing
Activities involved in obtaining required materials at the optimum cost and from reliable suppliers.
goals
Long-term, measurable accomplishments to be achieved by the firm within a specified time frame.
continuous process
Making steels a process that cannot be easilv stopped and restarted.
Antonio has started a home-based business via which he provides services to publishing companies. He plans to keep his business small so that he can enjoy a balanced lifestyle. Which of the following best describes Antonio? a) Entrepreneur b) Micropreneur C) Intrapreneur d) Incubator e) Cooperative
Micropreneur
lean manufacturing
Toyota corporation: This company utilizes the strategy of using half the human effort, halving the defects in the finished product, using one-third of the normal engineering effort, using half the floor space, and carrving yo percent less inventory.
True or false: In a production process inputs include entrepreneurship, knowledge, labor, and services.
false. services are considered an output.
Production methods that use computer technology to make the United States more competitive globally include:
lean manufacturing, CAM, CAD
Because of the evolving business environment, including more global competition, technological innovations, and changing customer expectations, what has become a critical management function?
learning how to manage change
When Micha started his window-washing business, he wanted to keep things simple. He liked the idea of being his own boss and the possibility of leaving the business one day to his son. He chose the type of business that was easy to start, allowed him to keep company profits, and would not have any special taxes assessed. Micha's financial resources were limited, but so were his concerns; after all, "he was the business." Micha's business is most likely a(n)
sole propriatorship
Equity theory states that employees (pick all that apply): - try to maintain equity between what they put into a job and what they get out of it - perceptions of fairness affect motivation - compare their inputs and outputs to those of others in similar positions - are fair to those with whom they work because they share goals
try to maintain equity between what they put into a job and what they get out of it perceptions of fairness affect motivation compare their inputs and outputs to those of others in similar positions
_______ is an advance procedure where products are create one layer at a time. It is also known as additive manufacturing
3d printing
cooperative
A business entity owned, controlled, and operated by a group of users for their own benefit.
acquisition
A corporate action in which one company buys the assets and obligations of another company and assumes control.
A mobIle veterinary business, Portable raws, Inc., created a mission statement lonq betore it opened its doors tor business. Ine mission statement reterred to the unique characteristic of the business: a traveling pet unit whose veterinarians went to the home of the pet owner, rather than the pet owner bringing the pet to the clinic. What other criteria should be considered for Portable pAWS' mission statement?
A description of the customers the company serves and what it tries to do for them
ISO 14000 Standards
A set of environmental guidelines established by the International Organization for Standardization that are recognized as the global standard for environmental management. Certification by this organization to standards is acknowledged in the industry as benchmark achievement.
operations management
A specialized area in management that converts or transforms resources (including human resources) into goods and services.
lean manufacturing
A tractor manufacturer looked at its production techniques and eliminated the activities in procuction that do not add value to the consumer
enterprise resource planning
Computerized system that integrates business functions such as purchasing. inventory control, sales, finance, and HR into single database
Which statement best illustrates why we say, "The role of management is evolving"? - Contemporary managers will emphasize structure and less creative thinking, particularly during recessionary times - Contemporarv managers will focus on collaboration and continue to emphasize the team approach to work. - Future managers must have their ear and eye toward domestic issues because the goal is to bring jobs back to the United States by eliminating outsourcing. - Managers will move away from training and coaching employees to just telling them what to do
Contemporarv managers will focus on collaboration and continue to emphasize the team approach to work.
Dave must complete a SWOT analysis as part of his company's planning process. One of his teammates has provided him with the results of the company's latest PESTLE analysis. Which of the following reflect the value of the PESTLE to Dave as he attempts to develop his SWOT analysis? Select all that apply. a) Dave can use the PESTLE analysis to look for pesky insects that bother the company. That's a weakness! b) Dave can substitute the PESTLE analysis for the competitive analysis C) Dave can evaluate the data in the PESTLE analysis to determine Strengths. d)Dave can use the PESTLE analysis to identify the companies weaknesses. e) Dave can evaluate the data in the PESTLE analysis to determine opportunities. f. Dave can evaluate the data in the PESTLE analysis to determine the company's threats. g. The PESTLE analysis and the SWOT are the same thing.
Dave can evaluate the data in the PESTLE analysis to determine opportunities. Dave can evaluate the data in the PESTLE analysis to determine the company's threats.
What is an outcome of developing female and minority managers?
It allows businesses to serve their increasingly female and minority customers better.
franchisee
an individual or business that is granted the right to sell another party's product
franchisor
an individual or organization granting a franchise
An organization structure in which decision-making authority is maintained at the top level of management is called a(n) ________ organization
centralized
Experts believe that determining how best to _________employees is today's greatest human resource management challenge because it affects the long term success of the company.
compensate
Form utility is created when (select all that apply): components such as computer chips, cases, and wires are assembled into a computer an automobile is shipped from the manufacturer to the dealer a butcher cuts a roast from a side of beef a baker combines ingredients to make a cake
components such as computer chips, cases, and wires are assembled into a computer a butcher cuts a roast from a side of beef a baker combines ingredients to make a cake
In order to be a quality organization, a firm must _________
consistently produce what the customer wants
An important decision to be made while designing a responsive organization is about the size of the span of ______
control
tracking schedules using monitoring methods such as PERT or Gantt charts during the production process is an example of applying production ________
controls
Those functions that the organization can do as well as or better than any other organization in the world are called its:
core competencies
Because Nike is superior at designing and marketing athletic shoes, this is considered to be their:
core competency
The federal law that specified that men and women doing equal jobs must be paid the same wage is the :
equal pay act of 1963
Quality of life issues for employees should be considered by a company when choosing a proper location for its ______
facility
A type of problem that operations management planning helps to solve as it relates to manufacturing is:
facility layout
Examples of a problem solved by operations management planning as it relates to manufacturing include:
facility location inventory control
Theo is part of a team that builds and assembles wind turbines. Because the turbines are so large, the team travels to the building in which they are housed so all workers can congregate around the turbine engine, blades, and controller to complete its construction. What facility layout is most appropriate for this type of process?
fixed position
Darla was born in 1972. As indicated by her generational cohort, she's most likely a manager who tends to:
focus more on results rather than hours in the workplace
Accountants who work at the corporate headquarters of a large department store chain use state-of-the-art systems to create financial statements every day, but the interpretation and analysis of those statements can take several hours. The accounting department consists of financial, managerial, and tax accountants. One advantage of departmentalizing the accountants is
for efficiency; the employees can coordinate work within the function.
Mac and Charlie own a car repair shop that they operate as co-owners. Both take an active role in the daily management of the business, and each accepts unlimited liability. Mac and Charlie, most likely, operate as a a) general partnership b) limited partnership C) LLC d) cooperation e) s-cooperation
general partnership
using less human effort, less manufacturing space, less investment in tools, and less engineering time is the basic premise of _______
lean engenieering
As organizations adopt empowerment, reduce the number of middle managers, and hire more talented and better educated lower-level employees the trend today is to ________ the span of control.
reduce
Human resource managers perform several important functions so the organization has the people it needs to achieve its goals. They include:
training and development recruitment and selection developing compensation systems
flexible manufacturing
Allen-Bradley builds motor starters. The machines that Allen-Bradley uses can make different types of starters without slowing down the process.
The law that prohibits employers from discriminating against qualified individuals with disabilities in hiring, advancement, or compensation and requires them to adapt the workplace if necessary is the:
Americans with Disabilities Act of 1990
PMI
Decision-making tool for weighing the pros and cons of a decision.
CIM
Dell computers: Dell has set up its manufacturing process so that all its computers can be quIckly assembled to individual customer orders.
CAD
Dress designer: In addition to helping in the design of products, the use of this system allows designers to work in three dimensions.