Intro to Business Exam 3
Which of the following is NOT a factor that influences whether a firm is decentralized?
a code of ethics
Task Force
a committee established to investigate a major problem or pending decision
computer-integrated Manufacturing (CIM)
a computer system that not only helps to design products but also controls the machinery needed to produce the finished product
Materials Requirements Planning (MRP)
a computerized system that integrates production planning and inventory control
Line, line-and-staff, matrix, and network all refer to
forms of organizational structure
Departmentalization by Location
grouping activities according to the defined geographic area in which they are performed
_____ 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.
matrix
Responsibility
the duty to do a job or perform a task
When does routing take place for operations managers?
After materials have been purchased and their use determined
A process in operations management in which raw materials are broken into different component parts is known as _______; while, a process in which raw materials or components are combined to create a finished product is known as _______.
Analytical Process; Synthetic Process
How are basic research and applied research different?
Basic research just wants to uncover new knowledge; while, applied research wants to discover new knowledge with some potential use.
How is the production of services similar to the production of manufactured goods?
Both types of businesses must plan, design, execute, evaluate, improve, and redesign their products to satisfy customers.
Networked Culture
Characterized by a base of trust and friendship among employees, a strong commitment to the organization, and an informal environment.
What is the advantage of departmentalization by customer?
Departmentalization by customer allows the firm to deal efficiently with unique customers or customer groups.
What is the first step for a service business to begin planning and provide the services its customers want?
Determine who the customer is and what needs the customer has
What do business people mean when they talk about lean manufacturing?
Eliminating waste from all of the activities required to produce a good or service
_____ 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.
Facility location
Which characteristic does NOT support a narrow span of management?
Few new problems are expected to arise
What utility is created by people converting raw materials, finances, and information into finished products?
Form utility
Which of the following is least likely to be a role of operations management?
Marketing of Products
A specialized area of management involving all the activities needed to convert or transform resources into goods and services is:
Operations Management
Where does research and development begin?
Research and development begins with an idea.
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?
The magnitude of change of a conversion process is the degree to which the resources are physically changed.
Once the production process begins, a company must engage in operations control, which includes purchasing, inventory control, scheduling, and quality control. What is the objective of purchasing?
To ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost
The production of services is different from the production of manufactured goods in all of the following ways, except:
When compared to services, customers are much more involved in obtaining the manufactured good they want or need.
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 communal corporate culture
Lean Management
a concept built on the idea of eliminating waste from all of the activities required to produce a product or service
Magnitude of Change
a conversion process is the degree to which the resources are physically changed
Organizational Chart
a diagram that represents the positions and relationships within an organization
Six Sigma
a disciplined approach that relies on statistical data and improved methods to eliminate defects for a firm's products and services
Product Line
a group of similar products that differ only in relatively minor characteristics
Organization
a group of two or more people working together to achieve a common set of goals
Continuous Process
a manufacturing process in which a firm produces the same product(s) over a long period of time
Intermittent Process
a manufacturing process in which a firm's manufacturing machines and equipment are changed to produce different products
Mass Production
a manufacturing process that lowers the cost required to produce a large number of identical or similar products over a long period of time
International Organization for Standardization (ISO)
a network of national standards institutes and similar organizations from over 160 different countries that is charged with developing standards for quality products and services and environmental standards for global manufacturers and producers
Staff Managers
a position created to provide support, advice, and expertise within an organization
Analytical Process
a process in operations management in which raw materials are broken into different component parts
Synthetic Process
a process in operations management in which raw materials or components are combined to create a finished product
Capital-intensive Technology
a process in which machines and equipment do most of the work
Labor-intensive Technology
a process in which people must do most of the work
Standing Committee
a relatively permanent committee charged with performing some recurring task
Research and Development (R&D)
a set of activities intended to identify new ideas that have the potential to result in new goods and services
Flexible Manufacturing System (FMS)
a single production system that combines electronic machines and CIM
Reshoring
a situation in which U.S. manufacturers bring manufacturing jobs back to the United States
Just-in-Time (JIT) Inventory System
a system designed to ensure that materials or supplies arrive at a facility just when they are needed so that storage and holding costs are minimized
Quality Circle
a team of employees who meet on company time to solve problems of product quality
Cross-Functional Team
a team of individuals with varying specialties, expertise, and skills that are brought together to achieve a common task
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
Purchasing
all the activities involved in obtaining required materials, supplies, components, and parts from other firms
Operations Management
all the activities required to produce goods and services
Malcolm Baldridge National Quality Award
an award given by the President of the United States to organizations judged to be outstanding in specific managerial tasks that lead to improved quality for both products and services
Decentralized Organization
an organization in which management consciously attempts to spread authority widely in the lower levels of the organization
Line Structure
an organization structure in which the chain of command goes directly from person to person throughout the organization
Centralized Organization
an organization that systematically works to concentrate authority at the upper levels of the organization
Network Structure
an organizational structure in which administration is the primary function, and most other functions are contracted out to other firms
Matrix Structure
an organizational structure that combines vertical and horizontal lines of authority, usually by superimposing product departmentalization on a functionally departmentalized organization
Line-and-Staff Structure
an organizational structure that utilizes the chain of command from a line structure in combination with the assistance of staff managers
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
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?
assign accountability
Delegation
assigning part of a manager's work and power to other workers
The amount of products or services that an organization can produce in a given time is known as:
capacity
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 _____.
centralized
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?
chain of command
Communal Culture
combines the positive traits of the networked culture and the mercenary culture - those of friendship , commitment, high focus on performance, and high energy
All of the following are potential disadvantages of committees, except:
committees make more accurate decisions than individuals
Finished-goods Inventory
consists of completed goods
Raw Materials
consists of materials that will become part of the product during the production process
Work-in-Process Inventory
consists of partially completed products
The inner rites, rituals, heroes, and values of a firm are known as:
corporate culture
________ 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
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:
delegation of authority
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?
departmentalization by function
The form of departmentalization that groups jobs that perform similar functional activities, like finance and marketing, is called:
departmentalization by function
When a company looks to departmentalize by areas of business like Japan, America, and Australia it is exemplifying ______.
departmentalization by location
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
departmentalization 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
What is the name given to determining what a product will look like, what options it will have, where it will be made, and other variables that arise when a company has an idea for a product and moves it into research and development?
design planning
All of the following are steps in the operational planning process, except:
developing a plan to convert the idea into a new good or service.
Fragmented Culture
employees do not become friends, and they work "at" the organization, not "for" it. Employees have a high degree of autonomy, flexibility, and equality.
Advisory Authority
expectation that line managers will consult the appropriate staff manager when making decisions
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 _______.
fewer; flat; more; tall
A(n) ______________ combines electronic machines and computer-integrated manufacturing in a single production system.
flexible manufacturing system
The manufacturing process requires the use of a variety of technologies. Which of the following is not one of the technologies used in the manufacturing process?
flexible productions systems
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.
focus; magnitude
Utility is the ability of a good or service to satisfy a human need. Which type of utility is the concern of operations management?
form utility
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
An informal channel of communication separate from management's formal official communications related to a job or organization that can sometimes be gossip is called a:
grapevine
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
Departmentalization by Customer
grouping activities according to the needs of various customer populations
Departmentalization by Product
grouping activities related to a particular product or service
Departmentalization by Function
grouping jobs that relate to the same organizational activity
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?
informal group
What is a group created by the members themselves to accomplish goals that may or may not be relevant to an organization?
informal group
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?
innovation and skilled workers
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:
inventory control
________ 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
Mercenary Culture
involves a high degree of passion, energy, sense of purpose, and excitement for one's work; does not imply that employees are motivated to work only for the money, although financial gain does play a role
Development and Implementation
involves research activities undertaken specifically to put new or existing knowledge to use in producing goods and services
Product Layout (assembly line)
is used when all products undergo the same operations in the same sequence
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?
it will be a decentralized organization
To combat the potential negative consequences of specialization, managers often turn to _______, the systematic shifting of employees from one job to another.
job rotation
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
One reason for _____ is efficiency. People can perform more efficiently if they master just one distinct task rather than all tasks.
job specialization
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?
job specialization
What is the concept's name that is built on an idea of eliminating waste from all of the activities required to produce a product or service?
lean manufacturing
Which of the following is NOT a potentially negative consequence of job specialization?
less injuries
What is the name given to a management structure in which the line managers are provided with specialists? Please select the most specific answer.
line and staff structure
Which of the following is not one of the four types of utilities?
magnitude
The _______ refers to the degree to which resources are physically changed during the conversion process.
magnitude of change
In this type of culture (popular in large banks and investment firms), you have employees who are passionate, energetic, goal-oriented, and have a sense of purpose and excitement for their work.
mercenary culture
Which of the following is NOT a disadvantage of a network structure?
no centralized leader
A(n) ______ manages the systems that convert resources into goods and services.
operations manager
As a company grows, it may become necessary for it to create a(n) ______, which is a visual display of the organizational structure, lines of authority (chain of command), staff relationships, permanent committee arrangements, and lines of communication.
organizational chart
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
The major decisions involved in design planning deal with:
product line, required capacity, and use of technology
Which of the following is NOT a major consideration when organizing a business?
production of a good
Which term describes the act of buying of all materials needed by the organization?
purchasing
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
_____ refers to the processes an organization uses to maintain its own established quality standards within the organization.
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
Most companies use _____ to determine which goods and services to provide and the features they need to possess.
research and development (R&D)
_______ of materials is the sequence of workstations that the materials will follow in the production process.
routing
What part of operations control involves the process of ensuring that materials and other resources are at the right place at the right time?
scheduling
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
What is the name given to an economy in which less effort is devoted to the production of goods than other things?
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
Which technique do businesses use to improve quality of products and services, as well as overall performance?
six sigma
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
Job Design
structuring the tasks and activities required to accomplish a firm's objectives into specific jobs so as to foster productivity and employee satisfaction
A committee that is established to investigate a major problem or pending decision of the firm (for example assessing the pros and cons of a potential merger) is known as a(n):
task force
If a company has a major problem, what type of committee might it create to investigate the problem?
task force
Utility
the ability of a good or service to satisfy a human need
Capacity
the amount of products or services that an organization can produce in a given time
Plant Layout
the arrangement of machinery, equipment, and personnel within a production facility
Functional Authority
the authority of staff managers to make decisions and issue directives about their areas of expertise
Design Planning
the development of a plan for converting an idea into an actual product or service
Inspection
the examination of the quality of work-in-process
Grapevine
the informal communications network within an organization
Corporate Culture
the inner rites, rituals, heroes, and values of a firm
Chain of Command
the line of authority that extends from the highest to the lowest levels of an organization
Organizational Height
the number of layers, or levels, of management in a firm
Span of Management (or span of control)
the number of workers who report directly to one manager
Informal Organization
the pattern of behavior and interaction that stems from personal rather than official relationships
Planning Horizon
the period during which an operational plan will be in effect
Product Design
the process of creating a set of specifications from which a product can be produced
Quality Control
the process of ensuring that goods and services are produced in accordance with design specifications
Scheduling
the process of ensuring that materials and other resources are at the right place at the right time
Departmentalization
the process of grouping jobs into manageable units
Inventory Control
the process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs
Market Demand (for a product)
the quality that customers will purchase at the going price
Focus (of a conversion process)
the resource or resources that make up the major or most important input
Job Specialization
the separation of all organizational activities into distinct tasks and the assignment of different tasks to different people
Job Rotation
the systematic shifting of employees from one job to another
Automation
the total or near-total use of machines to do work
Computer-Aided Design (CAD)
the use of computers to aid in the development of products
Computer-Aided Manufacturing (CAM)
the use of computers to plan and control manufacturing processes
Robotics
the use of programmable machines to perform a variety of tasks by manipulating materials and tools
Customer-Driven Production
used to describe a manufacturing system that is driven by customer needs and what customers want to buy
Fixed-Position Layout
used when a very large product is produced; the product remains stationary, and people, parts, and equipment are moved as needed to assemble the product
Process Layout
used when different operations are required for creating small batches of different products or working on different parts of a product
Form Utility
utility created by people converting raw materials, finances, and information into finished products
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?
wide span of management
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.
wide; narrow