Chapter 7 - SB
A firm wishing to be a true learning organization should do which of the following? (Choose every correct answer.) Multiple select question. Review successes and failures for deeper understanding. Search constantly for new knowledge and ways to apply it. Motivate employees to bend corporate policies and procedures. Encourage employees to engage in disciplined thinking.
Review successes and failures for deeper understanding. Search constantly for new knowledge and ways to apply it. Encourage employees to engage in disciplined thinking.
What is a company's board of directors responsible for? (Choose every correct answer.) Multiple select question. Selecting the chief technology officer Reviewing financial performance Ignoring ethical and legal conduct Determining the firm's strategic direction
Reviewing financial performance Determining the firm's strategic direction
True or False Companies should commit to excellence and leadership in capabilities before they commit to winning market share for specific products.
True
True or False Departmentalization helps an organization deal with increasing complexity in its operation.
True
Which of the following are typically included in the top management team? (Choose every correct answer.) Multiple select question. President Chief Executive Officer Chief Financial Officer Division Supervisor
President Chief Executive Officer Chief Financial Officer
An operation that strives to achieve the highest possible productivity and total quality by eliminating unnecessary steps in the production process and continually strives for improvement is employing the ______ approach.
lean manufacturing
In order to increase efficiency and reduce spending, city planners in Irving, Texas employed ______ analysis to reduce the time it takes to enact street repairs by more that 50%.
lean six sigma
The approach that combines six sigma quality improvement techniques with initiatives that eliminate waste in time, complex processes, and materials is called ______.
lean six sigma
Strategies that help a firm respond quickly to challenges are based on the firm's core competencies, strategic alliances, and ability to ______.
learn and adapt
A firm wishing to be a true ______ organization should have people who engage in disciplined thinking.
learning
An organization skilled at creating, acquiring, and transferring knowledge, and at modifying behavior to reflect new knowledge, is a ______ organization.
learning
The ______ is an important characteristic that differentiates traditional factories from flexible factories.
longer production runs
Mass customization is the production of varied, individually customized products at the ______.
low cost of standardized, mass-produced products
The degree to which differentiated work units work together and coordinate their efforts is called _____.
integration
Companies that provide goods and services in very low volume, such as restaurants or doctors' offices, are called ______.
job shops
The system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process right when they are needed is called ______.
just-in-time (JIT) operations
McDonald's and Burger King have production processes that tend to be very standardized, with all customers receiving similar if not identical products. They are examples of companies that use ______.
large batch technology
The ______ approach to manufacturing relies on having broadly trained employees, general-purpose equipment, and long-term, cooperative supplier relationships.
lean
A strategy for enabling a firm to be responsive and competitive is to develop leadership in its ______.
core capabilities
Which of the following statements are true concerning network organizations? (Choose every correct answer.) Multiple select question. Each firm in the network pursues its own core capability. They are not as responsive as companies using the product structure. They are not as balanced and flexible as companies using a matrix structure. They are flexible arrangements among designers, suppliers, producers, and distributors.
Each firm in the network pursues its own core capability. They are flexible arrangements among designers, suppliers, producers, and distributors.
Extra resources that organizations can rely on in a pinch are known as ______ resources.
slack
A small office with one physician, one nurse, and one bookkeeper would be an example of a ______.
small batch organization
The number of people who report directly to a supervisor is called the ______ of control.
span
Mary has five employees who report directly to her. This number of employees is known as her ______.
span of control
The process whereby different individuals and units perform specific parts of a larger task within an organization is called ______.
specialization
Randal Robinson works in Research and Development (R&D) for MNOP Corporation. Therefore, Randal works for a ______ department, rather than a line department.
staff
Units that support line departments are referred to as ______ departments.
staff
The process of regulating routines and procedures throughout a department or organization is called ______.
standardization
Large corporations have boards of directors that are elected by ______.
stockholders
True or False Accountability refers to the act of assigning tasks to a subordinate.
False
True or False In a high-involvement organization, top management makes all company decisions.
False
True or False To engage in mass customization successfully, all necessary tasks and processes (modules) must be completed by units within the organization.
False
A network of national standards institutions from more than 160 countries developed a series of voluntary quality standards known as _______.
ISO 9001
______ means that the person has the power and the right to make decisions, give orders, draw on resources, and do whatever else is necessary to fulfill a responsibility.
Authority
The ______ is personally accountable to the owners and the board of directors for the performance of the organization.
CEO
Effective delegation provides subordinates opportunities for which of the following? (Choose every correct answer.) Multiple select question. Increased innovation On-the-job-training Avoiding responsibility Covering their mistakes Potential promotion
Increased innovation On-the-job-training Potential promotion
______ refer to the way all parts of an organization work together.
Integration and coordination
What should managers focus on in order to strengthen their firm's core capabilities? (Choose every correct answer.) Multiple select question. Invest in core capabilities to remain better than competitors Acquire or build competencies for the future Train employees to maintain the status quo Extend capabilities for future applications
Invest in core capabilities to remain better than competitors Acquire or build competencies for the future Extend capabilities for future applications
Which of the following are true of authority? (Choose every correct answer.) Multiple select question. It includes taking orders from a subordinate. It resides in people rather than positions. It includes the right to tell people what to do. It includes the right to make decisions.
It includes the right to tell people what to do. It includes the right to make decisions.
Delegating work effectively offers which of the following advantages? (Choose every correct answer.) Multiple select question. It leverages a manager's talent. It reduces ability of subordinates to contribute to the organization. It allows a manager to focus on higher-level tasks. It reduces how much managers can achieve.
It leverages a manager's talent. It allows a manager to focus on higher-level tasks.
Which are problems associated with the matrix form? (Choose every correct answer.) Multiple select question. Low levels of democracy within groups. Managers jockeying for power over shared subordinates. Employee confusion over having more than one boss. Group input slowing down decision making.
Managers jockeying for power over shared subordinates. Employee confusion over having more than one boss. Group input slowing down decision making.
Which type of organization seeks to maximize internal efficiency?
Mechanistic organization
Which of the following are roles that brokers perform to aid integration and coordination in a network structured organization? (Choose every correct answer.) Multiple select question. Human resources role Nurturing role Process engineering role Designer role
Nurturing role Process engineering role Designer role
Which of the following behaviors by a staff department can reduce the conflict between line and staff departments?
Providing strategic support and advice for line departments.
Which of the following are strategies managers use to cope with high uncertainty and information demands? (Choose every correct answer.) Multiple select question. Redistributing information vertically within the company Reducing the need for information Increasing information-processing capability Creating redundant information backups
Reducing the need for information Increasing information-processing capability
Select all that apply Which of the following are true about matrix organizations? Multiple select question. Resource utilization is efficient. Employees learn collaborative skills. There are extensive amounts of information to process. It is synonymous with the "one employee-one boss" rule.
Resource utilization is efficient. Employees learn collaborative skills. There are extensive amounts of information to process.
Which of the following is NOT a way that managers should manage core capabilities to maintain a competitive advantage?
Set goals for profit maximization
______ engineering is used to accelerate the pace of research and product development within the organization.
Simultaneous
______ is a team-based approach that incorporates perspectives of all functions, resulting in a higher-quality product.
Simultaneous engineering
The basic technologies for processing include which of the following? (Choose every correct answer.) Multiple select question. Small batch Large batch Continuous process Just-in-time
Small batch Large batch Continuous process
______ refers to the process of establishing common routines and procedures that apply uniformly to everyone.
Standardization
Which of the following is a recommendation for delegating assignments more effectively?
The manager and subordinate need to communicate about the assignment throughout the delegation process.
CLM Technologies Inc. manufactures two products, and the production process is fully automated so that no human workers are on the factory floor. The factory runs 24 hours a day. This is an example of ______.
continuous process technology
The procedures that link the various parts of an organization for the purpose of achieving the organization's overall mission are called ______.
coordination
An approach that involves feedback and discussions to jointly figure out how to approach problems and devise solutions that are agreeable to everyone is known as ______.
coordination by mutual adjustment
An approach to get interdependent units that are required to meet deadlines and objectives to contribute to a common goal is known as ______.
coordination by plan
When using ______, interdependent units are free to modify and adapt their actions as long as they meet the deadlines and targets required for working with others.
coordination by plan
Before a company can win market share, it must commit to excellence and leadership in its ______.
core capabilities
Building an organization around groups of customers makes use of ______ structure.
customer division
Dell Computers organizes its company into educational users, large business users, home users, and small business users. Dell uses the ______ form of organization structure.
customer division
A centralized company with a mechanistic structure and many rules and formal procedures typically uses ______ technologies.
large batch
The departments of a company that have responsibility for the principal activities of a firm, such as making or selling the products of the company, are called ______ departments.
line
A(n) ______ organization is a hybrid form of organization in which functional and divisional forms overlap.
matrix
Companies are able to mass customize products by organizing around independent operating units that perform specific processes or tasks called ______.
modules
A collection of independent, mostly single-function firms that collaborate to produce a good or service is called a ______ organization.
network
Flexibility is the main characteristic of an organization with a(n) ______ structure.
organic
The various jobs and reporting relationships between people in a firm are typically shown by means of a(n) ______ chart.
organization
In private business enterprises, the ______ has ultimate authority in the organization.
owner
When all functions that contribute to a given product are organized under one product manager, the company is using a ______ organizational structure.
product division
To be successful, a firm using the network structure must choose collaborators that ______.
provide complementary strengths
When an employee is assigned a task to complete, that person is given ______.
responsibility
A common pattern in a hierarchy is for people to have more ______ than ______.
responsibility; authority
Successfully developing leadership in core capabilities can increase a company's ______ and competitiveness
responsiveness
The methods, processes, systems, and skills used to transform resources (inputs) into products (outputs) are known as ______.
technology
Sookie has worked diligently to re-orient the managers of her company toward involving employees in improving all aspects of the business. Sookie's company is practicing ______.
total quality management
Clearly written rules and policies help eliminate ______ in the workplace.
uncertainty
The idea that each employee should have only one boss is also known as the ______.
unity-of-command principle
ISO 9001 is a series of ______ standards developed by a committee working under the International Organization for Standardization.
voluntary quality
What is the term for the existence of rules and regulations to govern how people interact in an organization?
Formalization
Which type of organization is structured around districts, territories, regions, or countries?
Geographic division
Companies create formal relationships called strategic alliances with which of the following? (Choose every correct answer.) Multiple select question. Governmental bodies Their competitors Universities Their subsidiaries
Governmental bodies Their competitors Universities
The benefits of CIM include which of the following? (Choose every correct answer.) Multiple select question. Increased people and management strength. Greater control and predictability of production processes. Reduced waste. Production of high-variety products in high volume.
Greater control and predictability of production processes. Reduced waste. Production of high-variety products in high volume.
If one of the partners has expertise in technology or specific market segments, an alliance may eliminate the need to hire ______.
experts
In a functional organization, people have ______.
greater opportunity for specialized training and in-depth skill development
Olivia, the CEO of an international Internet security company, seeks input from her top management team and from lower levels of the company about the direction the company should take. By doing this, Olivia is building a ______.
high-involvement organization
Deming's 14 points of quality emphasized a ______ approach to management.
holistic
True or False Strategic alliances allow participants to respond to customer demands or environmental threats faster and less expensively than on their own.
True
True or False The two-boss manager must learn how to report to two superiors, one who is in charge of a product or division and the other who is in charge of a function.
True
True or False Under the functional form of departmentalization, managers become specialists rather than generalists.
True
Which of the following is NOT appropriate when delegating?
Using delegation to pass managerial responsibility to subordinates.
After Jane accepts a position as an Associate Professor of Management at Central State University, she finds that nearly every administrative decision originates from school administrators. The university has ______.
a high degree of centralization
Organizing around core competencies, learning organizations, and strategic alliances is a strategy that enables an organization to be more ______.
agile
In an organization, delegation refers to ______ authority and responsibility to ______.
assigning; a subordinate at a lower level
An organization with departmentalization around specialized functions such as production, marketing, or human resources, is called a ______ organization.
functional
Learning organizations are good at ______.
gaining insight from prior experiences
John Deere has divisions of its company headquartered in Latin America, Europe, Brazil, and Germany. This is an example of a company using a ______ type of organizational structure.
geographic division
The degree to which different organizational units work together and coordinate their efforts is called ______.
integration
______ is having the power and right to make decisions and to do whatever is necessary to fulfill the responsibility.
Authority
The CEO's power is derived from the ______.
board of directors
Six sigma product defects include all the following except ______.
deficient corporate culture
Which of the following statements serve to illustrate the conflicts between line and staff departments? (Choose every correct answer.) Multiple select question. Staff managers are willing to take risks in the pursuit of new products and customers for the sake of organizational growth. The success of line managers is based on their knowledge of the organization and its environment. Line managers focus on requirements and procedures while striving to protect the organization from risks. The success of staff managers is based on their knowledge and expertise in the functional area they oversee.
The success of line managers is based on their knowledge of the organization and its environment. The success of staff managers is based on their knowledge and expertise in the functional area they oversee.
A person who coordinates and integrates participants in a network is referred to as a(n) ______.
broker
At Barney's Bats, Inc. top managers make all the decisions and pass them down to lower levels for implementation. Barney's Bats can be described as a(n) ______ organization.
centralized
For a matrix structure to work, middle or divisional managers must learn to ______.
collaborate and manage their conflicts constructively
Managers who want to strengthen their firm's ______ can do so by focusing on issues surrounding the firm's core capabilities.
competitiveness
The use of computer-aided design and computer-aided manufacturing to sequence and optimize a number of production processes is called ______.
computer integrated manufacturing
As tasks of organizations become increasingly complex, the organization inevitably must be ______ into smaller units.
departmentalized
Departmentalization that groups units around products, customers, or geographic regions refers to a(n) ______ organization.
dicisional
A functional structure often leads to functional ______ rather than functional integration.
differentiation
When an organization relies on division of labor and job specialization, it has a high degree of ______.
differentiation
Within the structure of an organization, differentiation is achieved through ______.
division of labor and job specialization
A(n) ______ organization groups all functions within a single division and then duplicates functions across all divisions.
divisional
If you are not delegating, you are merely ______ things; but the more you delegate, the more you are truly ______ an organization.
doing; managing
A wide span of control results in a(n) ______ organization.
flat
Lean manufacturing strives for high quality, speed, and ______.
flexibility
With six sigma, the product or process is defect-free ______ of the time.
99.99966%
Which of the following are well-known advantages of functional departmentalization? (Choose every correct answer.) Multiple select question. Better maintenance of performance standards Achieving economies of scale Extensive communication networks Opportunities for specialized training
Better maintenance of performance standards Achieving economies of scale Opportunities for specialized training
The role of top management teams is to meet regularly with the ______ and to assist in making decisions.
CEO
Which of the following are types of products that are produced through mass customization? (Choose every correct answer.) Multiple select question. Produce Clothes Computers Automobiles
Clothes Computers Automobiles
Select all that apply Which of the following statements about a modular network organization are true? Multiple select question. Contracts stipulate expected results. Firms that do not perform well can be easily replaced. The network is held together by hierarchical authority. A modular network is also known as a virtual network.
Contracts stipulate expected results. Firms that do not perform well can be easily replaced. A modular network is also known as a virtual network.
Which are principles addressed by the ISO 9001 standards of management? (Choose every correct answer.) Multiple select question. Six sigma quality implementation Customer focus Continual improvement System approach to management
Customer focus Continual improvement System approach to management
Select all that apply Which of the following are advantages of matrix organizations? Multiple select question. Decentralized decision making Informed and creative decision making Efficient use of resources Managerial power struggles
Decentralized decision making Informed and creative decision making Efficient use of resources
Place the following steps of effective delegation in order, with the first step at the top.
Define the goal of the task to be delegated. Select the person for the task. Solicit views and suggestions from the subordinate. Give the subordinate the authority and resources for the task. Discuss progress with subordinate at appropriate intervals.
______ refers to assigning job responsibilities to a subordinate.
Delegation
Which of the following are steps in the effective delegation of a task in an organization? (Choose every correct answer.) Multiple select question. Giving the supervisor the authority to perform the task Discussing progress at appropriate intervals Soliciting the subordinate's views about suggested approaches Defining the goal succinctly Scheduling the checkpoints for reviewing progress
Discussing progress at appropriate intervals Soliciting the subordinate's views about suggested approaches Defining the goal succinctly Scheduling the checkpoints for reviewing progress
______ means the work of the organization is subdivided into smaller tasks.
Division of labor
Which of the following is NOT a potential disadvantage of the matrix form?
Dual career ladders
Which are ways that flexible factories differ from traditional factories? (Choose every correct answer.) Multiple select question. Flexible factories have longer production runs and longer lead times. Flexible factories produce high volumes of standardized products. Flexible factories are organized around products in work cells or teams. Flexible factories use local or decentralized scheduling.
Flexible factories are organized around products in work cells or teams. Flexible factories use local or decentralized scheduling.
In organizations that use lean manufacturing, the emphasis on quality, speed, and flexibility is greater than the emphasis on which of the following? (Choose every correct answer.) Multiple select question. Hierarchy Efficiency Cost Training
Hierarchy Efficiency Cost
Which of the following are some types of business functions that a functional organization might require? (Choose every correct answer.) Multiple select question. Cross-functional utilization Human resources Research and development Production
Human resources Research and development Production
In addition to emphasizing quality, speed, and flexibility, which of the following accurately describes lean manufacturing? (Choose every correct answer.) Multiple select question. It focuses on adding steps to the production process. It strives to achieve the highest possible productivity. It focuses on cutting costs where appropriate. It strives for total quality.
It strives to achieve the highest possible productivity. It focuses on cutting costs where appropriate. It strives for total quality.
In JIT operations, what happens when a customer places an order?
It triggers a factory order and the production process.
Which principle of ISO 9001 focuses on establishing a vision, goals, and trust while providing employees with both the resources and inspiration to meet their goals?
Leadership
Play Ball, Inc. began business by making shoes for athletes. It soon expanded and now manufactures and distributes clothing, sporting equipment, and protective sports gear worldwide. It is departmentalized by athletic equipment, shoes, and clothing. Play Ball utilizes which type of organizational structure?
Product organization
Which of the following are elements of a traditional organization chart? (Choose every correct answer.) Multiple select question. Solid lines depict the superior to subordinate reporting relationships. Horizontal layers depict the superior to subordinate reporting relationships. Horizontal layers depict levels of management. Vertical layers depict the span of control. Boxes depict different work.
Solid lines depict the superior to subordinate reporting relationships. Horizontal layers depict levels of management. Boxes depict different work.
For the lean approach to be effective for an organization, what are key conditions that need to be met? (Choose every correct answer.) Multiple select question. Supplier relationships need to be long-term and cooperative. Employees need to be specialized rather than broadly trained. Equipment needs to be general-purpose. Communication among line workers needs to be informal and horizontal.
Supplier relationships need to be long-term and cooperative. Equipment needs to be general-purpose. Communication among line workers needs to be informal and horizontal.
Which of the following are circumstances when fewer organizational layers are believed to work best? (Choose every correct answer.) Multiple select question. The environment is changing rapidly. There is a strong sense of organizational purpose. The organization is very large. Innovation is the core focus.
The environment is changing rapidly. There is a strong sense of organizational purpose. Innovation is the core focus.
Select all that apply For a network structure to be successful, which of the following are necessary? (Choose every correct answer.) Multiple select question. The firm must choose the right specialty. Each party must trust others with strategic information. The firm must rely on formalization of cultural norms. The firm must choose complementary collaborators. Each party must have standardized products.
The firm must choose the right specialty. Each party must trust others with strategic information. The firm must choose complementary collaborators.
Which of the following are characteristics of organizations that use continuous process technologies? (Choose every correct answer.) Multiple select question. They need more supervision. They are companies which continuously run that do not have any start or stop. They have a relatively organic structure. They rely on machines and computers to do production work.
They are companies which continuously run that do not have any start or stop. They have a relatively organic structure. They rely on machines and computers to do production work.
Which of the following statements about the three types of technology configurations is true?
They are equally useful for describing service or manufacturing technologies.
Which of the following are characteristics of organizations that use continuous process technologies? (Choose every correct answer.) Multiple select question. They have a relatively organic structure. They need more supervision. They are companies which continuously run that do not have any start or stop. They rely on machines and computers to do production work.
They have a relatively organic structure. They are companies which continuously run that do not have any start or stop. They rely on machines and computers to do production work.
______ management is a way of managing in which all members of the organization are committed to continuous improvement of a product or service.
Total quality
The expectation that employees perform a job, take corrective action when necessary, and report upward on the status and quality of their performance refers to ______.
accountability
When a manager assigns an employee a new task, the employee then has ______ for that task.
accountability
Jane owns Larry's Barbecue. She hired someone to make administrative and personnel decisions for the business who reports directly to her. This new manager has ______ to act in the owner's stead.
authority
The legitimate right to make decisions and to tell other people what to do is called ______.
authority
A company's knowledge, expertise, and skills that underlie its ability to be a leader in providing a range of specific goods and services is its ______.
core capabilities
When managers accumulate the right resources, combine them in ways that give the organization capabilities, and leverage or exploit their resources, they are managing ______.
core capabilities
Frasier Industries has knowledge, expertise, and skill in producing surgical needles that allow the company to be a leader in the surgical needle market. This ability to lead in the industry is called a ______.
core capability
Orangell Services seeks to maximize internal efficiencies while emphasizing rigid organizational rules. It is using a(n) ______ structure.
mechanistic
A variant of the network organization that uses temporary arrangements among partners that can be assembled and reassembled to adapt to the environment is the ______ network organization.
modular
Most executives today believe that fewer hierarchical layers result in a ______ organization.
more efficient
When units interact with one another to make accommodations to achieve flexible coordination, this is referred to as coordination by ______.
mutual adjustment
When a company decentralizes its decision making and allows employees to rely more heavily on judgment than on rules, the company is using a(n) ______ structure.
organic
W. Edwards Deming was a founder of the ______ management movement.
quality
An organic structure is much less ______ than a mechanistic structure.
rigid
Managers must usually restructure their internal processes and relationships with customers in fundamental ways to achieve ______ quality.
six sigma
Standardizing processes in order to reduce the causes of customer dissatisfaction to the lowest practicable levels is one component of ______.
six sigma quality
A ______ is a formal relationship created to facilitate the joint pursuit of mutual goals.
strategic alliance
Narrow spans of control build ______ organizations.
tall
In organic organizations, people work more as ______ than as employees who take orders from the boss.
teammates
In general terms, the processes that lead to the creation of new products is referred to as ______.
technology