BUSN MAN. TEST#2

Zen Electricals Inc. has internal experts who help executives learn about how others see them and improve their performance in the future. The company is using the organization development technique called _____.

coaching and counseling

The idea that the manufacturing costs per unit decrease as the number of units produced increases is known as _____.

economy of scale

Sarah has started a day care centre of her own. She makes the major decisions about how the centre runs, what services it provides, and at what prices. She has funded the venture with her own savings and will be taking up complete responsibility of the success or failure of the venture. Sarah is most likely a(n) _____.

entrepreneur

An alternative should be eliminated during evaluation if:

it has several unaffordable consequences.

More than any other industry, the _____ industry lends itself to big business.

manufacturing

one advantage of group decision making is

more acceptance of the final decision

_____ is one of the three specific ways for promoting innovation in organizations.

organization culture

Which of the following forces for change is present in the task environment of an organization?

prices at which suppliers sell raw materials

The _____ industry provides a higher return on time invested than any other industry group

service

​In general, while identifying alternatives, the more important the decision, _____.

the more alternatives should be generated

In the context of the job characteristics approach, skill variety refers to:

the number of things a person does in a job

Which of the following statements is true about organic organizations?

they operate in unstable environments

In general, the biggest cause of worker resistance to change is _____.

uncertainty

When Beta Inc. acquired Redd Communications, there was a huge uproar by the staff of Redd Communications as there were rumors of staff reductions and operations closures. _____ was the cause for this reaction by the Redd Communications staff.

uncertainty

​_____ serve fewer customers than other providers.

wholesalers

​When Irene wants to buy new laptops for her marketing executives and she has to pick them up from a single brand that is preinstalled with the marketing software that her company needs, she's making a decision under a condition of _____.

certainty

Martin is trying to adopt more automated equipment in his soda bottling facility, and workers are resisting the change. When Martin decides to hold a meeting to explain to workers how the change will be beneficial to them, he is using _____ as a means of overcoming resistance to change.

education

Omega Inc., a large appliances company, went bankrupt because of a series of poor managerial decisions and a downturn in the economy. In retrospect, it would seem that there was too much emphasis on the group reaching a consensus decision whenever the managers were involved in decision making. As a result, many decisions by the managers at Omega were made to avoid conflict. What disadvantage of group decision making does this scenario represent?

groupthink

As an organization passes from one stage of the organizational lifecycle to the next, _____.

its coordination demands increase

Which of the following would require continually adding new tasks and challenges as part of the job design?

job enrichment

_____ involves systematically moving employees from one job to another.

job rotation

In organizations using _____, the product is manufactured in assembly-line fashion by combining component parts into another part or finished product.

large batch technology

Relish Inc. is a large corporation in the food industry that manufactures canned foods, confectionery, and baked foods. The organization has a separate department for each of these types of food manufactured. Each department integrates all the activities required to manage their respective line of food. Which of the following types of departmentalization is illustrated in the scenario?

product departmentalization

When the inventory manager of Cuisine Royale, a restaurant, decides to order a batch of brown bread because the stock is almost empty, she's making a(n) _____ decision.

programmed

​Nutrimax Inc. sponsors a football championship in Oriel in August every year. The championship is organized by the Oriel Football Association (OFA) to encourage new talent, and Nutrimax bears all the expenses incurred during the championship. The Oriel regional manager of Nutrimax sends across a check to the OFA in July of each year in order for them to prepare for the championship. The regional manager's decision about when to send the check to OFA is a(n) _____ decision.

programmed

small businesses:

provide big businesses with many of the services they need.

In the context of organization development techniques, coaching and counseling:

provide nonevaluative feedback to individuals

The National Association of Women Business Owners:

provides networking forums for entrepreneurs

At Heritage Chocolates, the raw materials are processed at a plant and then sent to the manufacturing plant. The manufactured chocolates are finally sent to the packaging plant. This scenario illustrates _____ at Heritage Chocolates.

sequential interdependence

Jeanne owns a boutique in Paris and is best known for the formal suits that she stitches for working women. She makes customized suits for each of her customers, keeping their age, body type, and their appearance in mind. Which of the following technologies is Jeanne using in her boutique?

small batch technology

Satisficing

the tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency

which of the following is true about small businesses

they have a strong presence in the economy of the US

Wendy is reluctant to accept a new job offer because she's worried about her ability to meet new job demands. The most likely reason for such employee resistance to change is _____.

uncertainty

Dan wants to start a supermarket in his hometown, and wants to get into the business only after finding out about the market and how successful his business might be. The best way for Dan to gain knowledge is to

work in a supermarket before starting his own

Christine, a teacher, notices that the performances of her students at class tests have been declining. While attempting to find a solution to the problem, she thinks of three choices: rewarding students who get good grades, holding class tests more often, or punishing students when they perform poorly in the tests. Which step of the rational decision-making process is Christine in?

​Identifying alternatives

_____ is an innate belief about something without conscious consideration.

​Intuition

Ryan, the production manager at the Tan Shoes Company, chose the cheapest leather-cutting machine from a set of five machines from different manufacturers. Ryan was engaged in _____.

​decision making

​A(n) _____ is a market in which several large firms compete according to relatively well-defined criteria.

​established market

Managers with higher levels of risk propensity are more likely than their conservative counterparts to:​

​rely heavily on intuition and gamble big investments on their decisions.

A wholesale business buys products from producers and then sells them to _____.​

​retailers

The _____ industry provides a higher return on time invested than any other industry group.

​service

Jenny runs a small boutique in New Orleans and has five employees working under her. Lately, she has noticed that her boutique has not been delivering customer orders on time, and she has realized that it is because of the rise in the number of customers and insufficient manpower. She has decided to employ another five employees. Which step of the change process is illustrated in the scenario?

Selection of an appropriate change technique

Which of the following is a good strategy for small businesses?

Starting service businesses

identify an advantage of a franchising agreement

The franchiser can grow rapidly from franchising agreements

Which of the following is an accurate statement about small businesses?

They are likely to eliminate jobs at a far higher rate than large companies

Which of the following statements is true about wholesalers?

They need fewer employers than manufacturers or retailers.

When compared to flat organizations, tall organizations:

are more expensive

Mechanistic organizations:

are most frequently found in stable environments

​Lucy needs to buy a new laptop for her business, and she buys a particular brand even though it does not support the software that is required for her business. She does this because all her family members have used computers of the same brand all their lives. This is an example of how decision makers are constrained by _____.

bounded rationality

In a _____, the entrepreneur summarizes the business strategy and how that strategy is to be implemented

business plan

Which of the following statements is true in the context of decision making under a condition of uncertainty?

A decision maker greatly relies on intuition, judgment, and experience.

Macy Computers Inc. faced a major software error that brought all work in the company to a standstill. Roger, the CEO, arranged for a panel of well-known engineers in the state to estimate the time that it would take for the error to be set right. Each engineer made an estimate and sent it to the group's leader, Dr. Rajesh. Dr. Rajesh averaged the estimates and sent the average back out to the group. People who had submitted unusual estimates were asked to say why those estimates were chosen. Roger used a(n) _____to help his company get rid of the software crisis.

Delphi Group

In which step of the rational decision-making model does the decision maker test the feasibility and satisfactoriness of alternatives before choosing one?

Evaluating alternatives

​_____ is a situation that occurs when a group or team's desire for consensus and cohesiveness overwhelms its desire to reach the best possible decision.

Groupthink

The _____ design is essentially a holding company that results from unrelated diversification.

H-form

_____ was one of the first experts to develop the administrative model of decision making.

Herbert Simon

Which of the following is an advantage of job specialization?

It decreases transfer time between tasks.

Which of the following statements is true about the administrative model of decision making?

It suggests that managers may not always make decisions that best serve the interests of their organizations.

_____ is one of the factors that makes an alternative infeasible

Legal barriers

Which of the following is an advantage of group decision making when compared to individual decision making?

More alternatives are likely to be generated.

identify a true statement about small businesses

New jobs are also being created by small firms specializing in international business.

​Which of the following is an important question that is answered in a business plan?

What are the entrepreneur's goals and objectives?

Delphi Group

a form of group decision making in which a group arrives at a consensus of expert opinion.

intuition

an innate belief about something without conscious consideration

Small businesses:

are a key source of new jobs in various industries.

_____ is the process of systematically delegating power and authority throughout the organization to middle- and lower-level managers.

decentralization

​_____ are aimed at analyzing the current condition of an organization; this approach involves using questionnaires, opinion surveys, interviews, archival data, and meetings to assess the various characteristics of the organization.

diagnostic activities

The _____ design is based on multiple businesses in related areas operating within a larger organizational framework.

divisional

William had invested in an initial public offering. He kept incurring losses due to unfavorable market conditions. However, he decided to keep the investment because he had spent so much money on it. This scenario best exemplifies _____.

escalation of commitment

according to the classical decision model, managers

evaluate all aspects of a decision situation logically and rationally

The final step in the decision-making process requires that managers _____.

evaluate the results of the chosen alternative

Alpha Motors Inc. was affected by the recession in 2008. The company had to make extensive changes to its organizational structure and design. This scenario illustrates how _____ forces affect organizations.

external

Unions negotiating for higher wages is an example of a(n) _____ force for change.

external

Relish LLC. spent a lot of resources to open an exclusive outlet of low-fat pizzas made from organic ingredients. Relish made huge sales on the pizzas. Relish enjoys customer loyalty because it introduced the pizza range before any of its competitors. Which of the following concepts is illustrated in the scenario?

first mover advantage

a disadvantage of group decision making is

groupthink might occur

After being laid off by their companies, many individuals recognized three options they could choose from before they could secure new jobs: to spend less, to use savings, or to use credit. In the context of the steps involved in the rational decision-making model, they were _____.

identifying alternative

According to the results of a classic study, employee participation:

increases productivity and satisfaction.

Managers sometimes decide to do something because it feels right or they have a hunch. This is an example of using _____ in decision making.

intuition

A(n) _____ is a person who actually conceives of and develops the new idea, product, or service by means of the creative process.

inventor

The nominal group decision-making technique

is used to generate creative and innovative ideas

an alternative should be eliminated during evaluation if

it has several unaffordable consequences

Enlightened Minds is a software services firm that uses routine training programs, seminars by eminent developers, and discussion forums to keep employees updated on the recent developments in the software field. Enlightened Minds is an example of a(n) _____.

learning organization

​Which of the following statements is true about sources of financing for entrepreneurs?

lending institutions such as banks are more likely to help finance the purchase of an existing business than a new business

The reengineering process can be made effective by:

limiting employee participation in the process.

a manager who has a high level of risk propensity is likely to

make decision quickly

​One disadvantage of hiring management consultants to solve problems in business is that

management consultants can be expensive and charge high fees for their services

Image LLC, an advertising company, has recently received several long-term projects from leading companies. Image has decided to switch from functional departmentalization to cross-functional work teams to be able to perform better. This is an example of change in the area of

organization structure and design

A company has introduced new rules and regulations and appraisal criteria to promote discipline and commitment among employees. This organization change is in the area of _____.

people

Omega Software Inc. is currently running a training program for employees to upgrade their software skills so that they are able to design more efficient software programs. Omega Software is attempting to make a change in the area of _____.

people

Tina works at a coffee shop. One of the four coffee machines at the coffee shop has not been functioning well; the same machine has broken down thrice in two weeks. Now, Tina is looking at the machine and trying to decide if the problem is a bad machine or if people are just using the machine wrong. Tina is currently _____.

recognizing and defining the decision situation

Managers with higher levels of risk propensity are more likely than their conservative counterparts to

rely heavily on intuition and gamble big investments on their decisions

Job enrichment:

requires delegation of authority

When the prices of oil came down, the demand for sport utility vehicles (SUVs) increased. Automakers chose to increase production of full-size SUVs as the profit from large vehicles is greater than that from small vehicles. Which step in the rational decision-making model is illustrated in the scenario?

selecting the best alternative and implementing it

Marianne, who has started a software development firm, is looking for sources of financing. Marianne has approached Zenith LLC., a large consulting firm, to partner with her venture. Zenith has agreed to partner with Marianne's venture and provide it with capital. In this scenario, Marianne's source of financing falls in the category of:

strategic alliances.

Alpha Corp. has divided its business into a number of sub units. This organization change is an example of change in the area of _____.

structure and design

Which of the following is an accurate comparison between tall organizations and flat organizations?

tall organizations foster more communication problems than flat organizations

_____ is the conversion process used by an organization to transform inputs into outputs.

technology

When decision making is under a condition of uncertainty:

the alternatives are not known.

According to the job characteristics approach, task identity is _____.

the extent to which a worker does a complete portion of the total job

a virtual organization:

typically has only a handful of permanent employees