MAN3025- Lesson 05- Planning and Decision Making
Crimson Corp. is an investment company that has formed a new team of market researchers, lawyers, and investment bankers. In order to ensure that no work is stalled in the absence of a member in the team, the manager should provide _____ to the members. diversity training decision-making training interpersonal skills training cross-training
cross-training
___ occurs when a group member must wait to share an idea because another member is presenting an idea to the group. Dialectal inquiry Groupthink Satisficing Production blocking
d. Production blocking
In the context of operational plans, which among the following is the most specific type of standing plans? Policies Procedures Single-use plans Rules and regulations
d. Rules and regulations
Which of the following statements is true of electronic brainstorming? One of the disadvantages of electronic brainstorming over face-to-face brainstorming is production blocking. A disadvantage of electronic brainstorming is evaluation apprehension. It does not allow ideas that are shared to remain anonymous. Studies show that electronic brainstorming is much more productive than face-to-face brainstorming.
d. Studies show that electronic brainstorming is much more productive than face-to-face brainstorming.
In the context of group decision making, which of the following is a difference between the nominal group technique (NGT) and the Delphi technique? Unlike the NGT, the Delphi technique requires all panel members to gather together in one place. Unlike the Delphi technique, the NGT produces better decisions than the devil's advocacy and dialectical inquiry approaches. Unlike the Delphi technique, the NGT increases a-type conflicts. Unlike the NGT, the Delphi technique involves creating a series of open-ended questions for group members.
d. Unlike the NGT, the Delphi technique involves creating a series of open-ended questions for group members.
Which among the following is the most specific type of standing plans? A. Rules and Regulations B. Policies C. Procedures D. Single-use plans
A
25. _____ refers to the emotional reactions that can occur when disagreements become personal rather than professional. a. A-type conflict b. C-type conflict c. Channel conflict d. Personal conflict
ANSWER: a
13. The main objective of__________is to keep options open by making small, simultaneous investments in many alternative plans. a. strategic planning b. options-based planning c. funds-based planning d. traditional planning
ANSWER: b
86. Woolplank is an apparel company that specializes in woolen clothes. It heavily invested in five sheep farms last year. This year, it plans to buy the most profitable sheep farm out of the five. In this scenario, Woolplank is most likely using _____. a. reverse planning b. options-based planning c. time-based planning d. rigid planning
ANSWER: b
51. Budgets are a type of__________. a. strategic plans b. tactical plans c. operational plans d. visionary plans
ANSWER: c
A _____ is a type of operational plan that saves managers' time because once the plan is created, it can be used repeatedly to handle frequently recurring events. A. budget plan B. tactical plan C. standing plan D. single-use plan
C
Which of the following is a disadvantage of planning? A. It decreases the effort put in by managers and employees. B. It increases employee turnover. C. It creates a false sense of certainty. D. It pressures employees to work for extended periods.
C
Jim is the operations manager of a car manufacturing company in the United States. He wants to set up production plants in three other countries by the end of the current year. After he has set this goal, which of the following is the next step he should ideally take in order to achieve this goal? A. Reward hard working employees for their work B. Determine the profits the production plants will make C. Track progress toward goal achievement D. Develop commitment to the goal
D
Management by objectives is a management technique often used by middle managers to develop and carry out _____. A. standing plans B. strategic plans C. operation plans D. tactical plans
D
The chief financial officer of Benjampt, a manufacturing company, disagrees with the rest of the senior managers about the renewal of the company's manufacturing license. They have conflicting interests because of their different career experiences. However, they are willing to weigh their opinions and arrive at the best possible solution. In this scenario, the conflict among the senior members best exemplifies _____. A. a-type conflict B. affective conflict C. channel conflict D. c-type conflict
D
_ are responsible for the creation of tactical plans. A. Chief Financial Officers B. First=line managers C. Top managers D. Middle Managers
D
Nathan, the marketing manager of a footwear manufacturing company, is in charge of performing a market research task. However, he is busy with an audit preparation and assigns the task to an intern. In the context of organizational authority, which of the following is best illustrated in this scenario? -Delegation of authority -Centralization of authority -Staff authority -Concentrated authority
Delegation of authority
Research suggests that the nominal group technique typically produces better decisions than the devil's advocacy and dialectical inquiry approaches. (T/F)
F
The purpose of options-based planning is to commit people and resources to a particular course of action. T/F
F
Applepom, a multinational restaurant chain, follows different pricing policies and serves different types of cuisine depending on the region it operates in. The company has separate departments for the Middle East, other Asian countries, Russia, other European countries, North America, Latin America, Oceania, and Africa. In this scenario, which of the following organizational structures does Applepom most likely follow? -Geographic departmentalization -Functional departmentalization -Customer departmentalization -Product departmentalization
Geographic departmentalization
Which of the following statements is true of planning?
It intensifies the effort put in by managers and employees.
Budget are a type of BLANK
Operational plans
It creates a false sense of certainty
Which of the following is a disadvantage of planning
Keplem has a business unit in the insurance sector. The insurance sector is a slow-growing industry, and Keplem does not have a large market share in the industry. In the context of the BCG matrix, which of the following categories of SBUs best describes Keplem's business unit? -Stars -Cash cows -Question marks -Dogs
dogs
Budgets are a type of
operational plan
What are first-line managers responsible for?
operational plans, standing plans, single-use plans
A-type conflict
refers to the emotional reactions that can occur when disagreements become personal rather than professional.
Daniel has started a small shoe manufacturing company. He has a tight budget, and does not want the best equipment at the moment, so he is using equipment that is good enough to work with. In this scenario, Daniel is _____.
satisficing
Steps in the Planning Process
1. Set goals 2. Commitment 3. Action plans 4. Track progress 5. Maintain flexibility
At a canning factory, employees are strictly instructed to wear uniform while working around the canning machines. Which of the following kinds of standing plans is exemplified in this scenario? A. rules and regulations B. Purpose statements C. norms D. Policies
A
BLANK occurs when a group member must wait to share an idea because another member is presenting an idea. A. Production blocking B. Groupthink C. Dialectal inquiry D. Satisficing
A
are responsible for developing operational plans. A. Lower-level managers B. Middle managers C. Board of directors D. Top managers
A
During a campus placement drive, Plusterk, a hardware company, wants to conduct a common test while hiring candidates to fill positions in various departments of the company. Irrespective of the department, the company gives utmost importance to candidates' math skills, information technology skills, and verbal comprehension skills. In this scenario, which of the following selection tests should Plusterk conduct in its campus placement drive? -A specific ability test -A cognitive ability test -A personality test -A work sample test
A cognitive ability test
it causes detachment, which leads planners to plan for things they do not understand.
A drawback of planning is that:
In the context of the planning process, which of the following is most likely to be useful when conceived goals turn out not to be achievable? Maintaining flexibility when making plans Developing commitment to goals Developing long-term action plans Tracking progress toward goal achievement
A. Maintaining flexibility when making plans
9. The Delphi technique is a decision-making method in which group members cast votes to select solutions. a. True b. False
ANSWER: False
7. Planning encourages persistence even when there may be little chance of short-term success. a. True b. False
ANSWER: True
103. Jonah, the chief marketing officer of an apparel company, is responsible for formulating a plan that details the countries that the company will venture into during the next three years. When developing the plan, he has to consider the political environment, the ease of doing business, and competition in those countries. In this scenario, Jonah will most likely be contributing to developing the company's _____. a. strategic plan b. single-use plan c. tactical plan d. operational plan
ANSWER: a
38. Chris is part of the top management of a bank. He formulates a plan on how the bank will deal with its competitors and serve its customers for the next five years. In this scenario, Chris has most likely contributed to developing the bank's _____. a. strategic plan b. single-use plan c. tactical plan d. operational plan
ANSWER: a
59. A _____ is a type of operational plan that saves managers' time because once the plan is created, it can be used repeatedly to handle frequently recurring events. a. standing plan b. budget plan c. single-use plan d. tactical plan
ANSWER: a
60. Vernon, the chief human resources officer at a consultancy firm, prepares a plan formally detailing the dos and don'ts of the company. In the plan, he describes the restrictions on certain actions and how the actions must be performed. The regulations discussed in the given scenario are most likely a type of _____. a. standing plan b. impromptu plan c. tactical plan d. single-use plan
ANSWER: a
61. Sarah, the cofounder of a start-up company that sells sports goods, prepares a purpose statement for the company. In the purpose statement, she clarifies how the company will deal with its competitors and provide services to its customers. In this scenario, Sarah has most likely contributed to developing the company's _____. a. strategic plan b. single-use plan c. tactical plan d. operational plan
ANSWER: a
72. Which of the following steps in planning increases the scope of adaptability of a plan? a. Maintaining flexibility in planning b. Developing commitment to goals c. Developing long-term action plans d. Tracking progress toward goal achievement
ANSWER: a
73. _____ are responsible for developing operational plans. a. Lower-level managers b. Middle managers c. Top managers d. Board of directors
ANSWER: a
82. A _____ is a gap between a desired state and an existing state. a. problem b. benchmark c. condition of certainty d. minimum threshold
ANSWER: a
100. Hodecathon, a large company that sells home décor, makes investments in four handicraft stores that supply handicrafts to the company. Depending on the return that Hodecathon gets on these investments, the company plans to buy the most profitable store. In this scenario, Hodecathon is most likely using _____. a. reverse planning b. options-based planning c. time-based planning d. rigid planning
ANSWER: b
14. The most popular approach to increase goal commitment is to: a. minimize employee involvement in planning. b. encourage employee participation while setting goals. c. ask the top management to assign goals. d. develop less challenging goals.
ANSWER: b
15. Lee, the chief financial officer of a bank, prepares a plan with a detailed estimate of the company's fixed long-term expenditures. This plan will be presented at the Annual General Meeting every year. In this scenario, Lee has most likely prepared a _____. a. impromptu plan b. standing plan c. tactical plan d. single-use plan
ANSWER: b
26. Chester, the operations manager at a chemical manufacturing company, finds that the air pollutants released by the company have become very high. To arrive at a decision to resolve the issue, he defines the problem and then identifies decision criteria. In the context of rational decision making, which of the following is the next step that Chester should ideally take? a. Computing the optimal decision b. Weighing the decision criteria c. Generating alternative courses of action d. Making absolute comparisons
ANSWER: b
54. Plastbolt, a company that manufactures and supplies plastic bottles, wants to acquire a smaller company. It plans to invest in two smaller plastic manufacturing companies and buy the one that it finds yields better returns. In this scenario, Plastbolt is most likely using _____. a. reverse planning b. options-based planning c. time-based planning d. rigid planning
ANSWER: b
63. _____ are standing plans that indicate the specific steps that should be taken in response to a particular event. a. Policies b. Procedures c. Single-use plans d. Options-based plans
ANSWER: b
65. Which of the following is a disadvantage of planning? a. It increases employee turnover. b. It creates a false sense of certainty. c. It decreases the effort put in by managers and employees. d. It pressures employees to work for extended periods.
ANSWER: b
92. __________is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions. a. Problem identification b. Rational decision making c. Benchmarking d. Profiling
ANSWER: b
Rhonda, a junior accountant at a manufacturing company, was laid off from her job because she rejected multiple requests from the company's chief financial officer to engage in a physical relationship with him. In the context of employment legislation, this scenario best illustrates _____. -adverse impact -disparate treatment -quid pro quo sexual harassment -structural accommodation
quid pro quo sexual harassment
18. Jessica, a middle manager at an electronic accessories company, presents a detailed estimate of the budget and the required number of temporary salespeople needed for the next one year. In this scenario, Jessica has most likely contributed to developing the company's _____. a. strategic plan b. single-use plan c. tactical plan d. operational plan
ANSWER: c
46. Todd's manager rejected his leave application because project deadlines were getting closer. Todd considered this a personal offence and got into an argument with his manager. In this scenario, the disagreements between Todd and his manager can best be classified as _____. a. c-type conflict b. cognitive conflict c. a-type conflict d. constructive conflict
ANSWER: c
90. In an organization,__________refers to a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame. a. A policy b. A single-use plan c. The strategic objective d. The purpose statement
ANSWER: c
94. Floyd, the chief finance officer of a company that sells rubber sheets, prepares an estimate that helps in calculating the rates of Cost, Insurance and Freight (CIF) and Free on Board (FOB) contracts. This pricing estimate is used every time the company gets an export order. In this scenario, Floyd has most likely prepared a _____. a. single-use plan b. tactical plan c. standing plan d. impromptu plan
ANSWER: c
101. The managers of Danestump, a hardware manufacturing company, are expected to follow standing plans before approving long leaves applied by their subordinates. The standing plans detail the specific steps to be followed when approving such leaves. Given this information, the standing plans in this scenario can be referred to as _____. a. artifacts b. heuristics c. prototypes d. procedures
ANSWER: d
17. Daniel has started a small shoe manufacturing company. He has a tight budget, and does not want the best equipment at the moment, so he is using equipment that is good enough to work with. In this scenario, Daniel is _____. a. maximizing b. discounting c. specializing d. satisficing
ANSWER: d
19. Trendown Inc. has launched a plan to completely transition from a clothing retailer to a cosmetic brand by the end of the year. It has 24 stores across the city, and the management sets a target to transition two stores by the end of each month. In this scenario, Trendown Inc.'s monthly target is an example of a _____. a. capstone goal b. passive goal c. distal goal d. proximal goal
ANSWER: d
21. _____ occurs when a group member must wait to share an idea because another member is presenting an idea. a. Dialectal inquiry b. Groupthink c. Satisficing d. Production blocking
ANSWER: d
23. The team leaders in the production department at Virginiastalk, an automobile manufacturer, follow standing plans that specify the detailed steps they are expected to follow when an export order gets canceled. Given this information, the standing plans in this scenario can be referred to as _____. a. artifacts b. prototypes c. heuristics d. procedures
ANSWER: d
BLANK is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions
rational decision making
27. Shoerls, a footwear manufacturing company, had been purchasing its raw materials from Douglem. When Douglem increased the prices of its products, the production managers at Shoerls decided to purchase the raw materials from a different supplier that they believed would be a good-enough alternative. This scenario best illustrates the concept of _____. a. counterconditioning b. overregularizing c. maximizing d. satisficing
ANSWER: d
33. __________is described as the determination to achieve a goal. a. Goal setting b. Satisficing c. Groupthink d. Goal commitment
ANSWER: d
48. Which among the following is the most specific type of standing plans. a. Policies b. Procedures c. Single-use plans d. Rules and regulations
ANSWER: d
50. Chad is the human resources manager of a chain of stationery stores. The company intends to open two new outlets, and Chad plans to recruit staff for both the outlets by the end of the month. In this scenario, Chad's staffing target serves as a _____. a. capstone goal b. passive goal c. distal goal d. proximal goal
ANSWER: d
66. Betty runs a boutique. She buys semi-automatic sewing machines for her tailors because she cannot afford the fully automatic ones. This scenario best illustrates the concept of _____. a. maximizing b. counterconditioning c. overregularizing d. satisficing
ANSWER: d
83. _____ is the fear of what others will think of one's ideas. a. Dialectal inquiry b. Cognitive conflict c. Production blocking d. Evaluation apprehension
ANSWER: d
98. Tyler, the site engineer at a construction company, has identified and defined the problem of frequent accidents during the construction of high-rise buildings. In the context of rational decision making, which of the following is the next step that Tyler should ideally take? a. Computing the optimal decision b. Making absolute comparisons c. Generating alternative courses of action d. Identifying decision criteria
ANSWER: d
Gordop, an automobile manufacturer, wants to be the market leader in the sedan category in five years' time. To achieve this target, it sets a goal of expanding its market by 10% each month. In this scenario, Gordop's goal of becoming the market leader in the sedan category represents a _____. A. provisional goal B. distal goal C. foundational goal D. proximal goal
B
A drawback of planning is that:
it causes detachment, which leads planners to plan for things they do not understand.
Which of the following is the first step in the process of management by objectives?
Discussing possible goals
Which of the following is a disadvantage of planning?
It creates a false sense of certainty.
In the context of the planning process, which of the following is most likely to be useful when conceived goals turn out not to be achievable? -Maintaining flexibility when making plans -Developing commitment to goals -Developing long-term action plans -Tracking progress toward goal achievement
Maintaining flexibility when making plans
The managers at Richellath follow standing plans that broadly define the action that needs to be taken when their subordinates do not meet deadlines. These plans also discuss the intended outcome of the given action. Given this information, the standing plans in this scenario can be referred to as _____. -policies -heuristics -prototypes -artifacts
Policies
Cassie runs a cake shop. Her primary goal is to set up the largest chain of cake shops in the city. Apart from this goal, another goal of Cassie's is to sell 400 cakes in December. In this scenario, Cassie's goal of selling 400 cakes in December is an example of a _____. -capstone goal -passive goal -distal goal -proximal goal
Proximal goal
distal goals
long-term or primary goals
To be a translator at Papesixe, a company that provides online document translation services, a candidate needs to be fluent in multiple languages, needs to be an effective writer, and needs to know how to use at least three prominent translation memory software. In this scenario, which of the following selection tests should Papesixe conduct to hire the right candidates as translators? -Work sample tests -Cognitive ability tests -Personality tests -Specific ability tests
Work sample tests
Bounded rationality
means that managers try to take a rational approach to decision making but are restricted by real-world constraints, incomplete and imperfect information, and their own limited decision-making capabilities.
In the context of rational decision making, which of the following is a difference between maximizing and satisficing? Maximizing is choosing the best alternative, whereas satisficing is choosing a good-enough alternative. Maximizing is possible when limited resources are available, whereas satisficing is possible when ample resources are available. Maximizing is recommended when there are memory and expertise problems, whereas satisficing is recommended when there are no problems. Maximizing involves being fast rather than thorough, whereas satisficing involves being thorough rather than fast.
a. Maximizing is choosing the best alternative, whereas satisficing is choosing a good-enough alternative.
___ is defined as the process of choosing a solution from available alternatives. Production blocking Decision making Evaluation apprehension Dialectical inquiry
b. Decision making
_____ are standing plans that indicate the specific steps that should be taken in response to a particular event.
procedures
An organization's _____ is defined as a more specific goal than the organization's purpose that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame. vision statement single-use plan strategic objective mission statement
c. strategic objective
35. At a canning factory, employees are strictly instructed to wear uniform while working around the canning machines. Which of the following kinds of standing plans is exemplified in this scenario? a. Rules and regulations b. Norms c. Policies d. Purpose statements
ANSWER: a
96. __________are described as a cushion of extra resources that can be used with options-based planning to adapt to unanticipated changes, problems, or opportunities. a. Slack resources b. Strategic groups c. Secondary firms d. Standing plans
ANSWER: a
45. A drawback of planning is that: a. it fails to provide direction to managerial activities. b. it causes detachment, which leads planners to plan for things they do not understand. c. it discourages employees to put in additional efforts when following a plan. d. it decreases persistence among employees, and leads to slackness.
ANSWER: b
47. __________is described as the process of choosing a solution from available alternatives. a. Production blocking b. Decision making c. Satisficing d. Maximizing
ANSWER: b
68. During a discussion about the budget for a project, the discussion gets personal between two managers of Trion LLC. They digress from the topic and start venting their anger on each other. In this scenario, the managers have _____. a. an ethical conflict b. a-type conflict c. c-type conflict d. an intellectual conflict
ANSWER: b
76. Adamdata, a cell phone brand, is planning to collaborate with a few companies that create software for cell phones. It wants to try different operating system software for its phones and then buy the company that manufactures the software that is most compatible with its phones. In this scenario, Adamdata is most likely using _____. a. reverse planning b. options-based planning c. time-based planning d. rigid planning
ANSWER: b
79. Claire is a manager at an IT firm. She notices a consistent drop in the productivity of her employees. She is not able to find the reason behind this drop. In the context of rational decision making, which of the following steps should Claire take first? a. Computing the optimal decision b. Defining the problem c. Generating alternative courses of action d. Identifying decision criteria
ANSWER: b
89. Robert has a list of characteristics that he wants his new house to have, and he has listed every item in that list in their order of importance to him. Among the items on his list, the proximity to a bus stop has the highest priority as it is his primary means of commuting, and the street name has the lowest priority. In this scenario, Robert is using _____ to make a rational decision. a. absolute comparisons b. relative comparisons c. benchmarking d. satisficing
ANSWER: b
40. Deborah is a middle manager in a leading fashion magazine. She presents a half-yearly estimate on how she intends to use the budget allotted to her team for the next six months. In this scenario, Deborah has most likely contributed to developing the _____ for her team. a. strategic plan b. single-use plan c. tactical plan d. operational plan
ANSWER: c
43. The senior managers of Clockence, a clock manufacturing company, have a disagreement about the quantity of inventory to be allotted to each production team. Each of them views the problem differently, but they are willing to discuss it and arrive at the best possible solution. In this scenario, the conflict among the senior managers at Clockence best exemplifies _____. a. a-type conflict b. affective conflict c. c-type conflict d. channel conflict
ANSWER: c
56. Which of the following is a decision-making method that can be used to create c-type conflict by assigning an individual or a subgroup the role of critic? a. Dialectical inquiry b. The nominal group technique c. Devil's advocacy d. The Delphi technique
ANSWER: c
In the context of tracking progress toward goal achievement, which of the following is a difference between proximal goals and distal goals? Proximal goals are referred to as primary goals, whereas distal goals are referred to as subgoals. Proximal goals define the final objective to be achieved, whereas distal goals define the steps that should be taken to achieve the final objective. Proximal goals can be procrastinated because they have low immediacy, whereas distal goals cannot be procrastinated because they have high immediacy. Proximal goals are short-term goals, whereas distal goals are long-term goals.
D. Proximal goals are short-term goals, whereas distal goals are long-term goals..
In the context of planning from top to bottom, the top management is responsible for developing _____. standing plans tactical plans operational plans strategic plans
D. strategic plans
Edgar, the production manager at a textile factory, has noticed a decline in the production capacity of the factory. He wants to understand the reason behind this trend and make a decision on how to resolve the issue. In the context of rational decision making, which of the following is the first step that Edgar should ideally take?
Identifying and defining the problem
Lewrice, an apparel manufacturer, has been finding it difficult to deliver its products to its retailers on time. The time taken to deliver the products has been more than the estimated time in almost all instances. The managers of the company have to make a decision on how to resolve the issue. In the context of rational decision making, which of the following is the first step that the managers should ideally take?
Identifying and defining the problem
As the chief innovation officer of an apparel manufacturing company, Kathleen has the right to issue orders to the costume designers of various divisions of the company. These costume designers, in turn, have the right to issue orders to the cutting room workers of the company. In the context of organizational authority, which of the following features of a traditional organizational structure does this scenario best illustrate? -Horizontal authority -Pseudo-authority -Line authority -Staff authority
Line authority
Orampuse, an apparel manufacturer and retailer, has its outlets all over the world. Its management has organized its labor force on the basis of the groups of countries or the continents it caters to. Each of these departments also has its own sales, marketing, finance, legal, human resources, and transportation divisions. In this scenario, which of the following organizational structures does Orampuse most likely follow? -Process departmentalization -Geographic departmentalization -Customer departmentalization -Matrix departmentalization
Matrix departmentalization
In the context of rational decision making, which of the following is a difference between maximizing and satisficing?
Maximizing is choosing the best alternative, whereas satisficing is choosing a good-enough alternative.
In the context of organizational environments, which of the following is a difference between mechanistic organizations and organic organizations? -Mechanistic organizations are characterized by broadly defined jobs and responsibilities, whereas organic organizations are characterized by specialized jobs and responsibilities. -Mechanistic organizations work best in stable, unchanging business environments, whereas organic organizations work best in dynamic, changing business environments. -Mechanistic organizations have decentralized authority, whereas organic organizations have centralized authority. -Mechanistic organizations are characterized by loosely defined, frequently changing roles, whereas organic organizations are characterized by precisely defined, unchanging roles.
Mechanistic organizations work best in stable, unchanging business environments, whereas organic organizations work best in dynamic, changing business environments.
BLANK are standing plans that indicate the specific steps that should be taken in response to a particular event.
Procedures
In the context of operational plans, which of the following is a difference between single-use plans and standing plans?
Single-use plans cover unique, one-time-only events, whereas standing plans handle frequently recurring events.
BLANK are described as a cushion of extra resources that can be used with options-based planning to adapt to unanticipated changes, problems, or opportunities.
Slack Resources
_____ are defined as a cushion of extra resources that can be used with options-based planning to adapt to unanticipated changes, problems, or opportunities.
Slack resources
Maymart Inc. sells its products at the lowest prices in the industry, and it believes that this is the best way to stay ahead of its competition. It has also not compromised on the quality of its products as Maymart's suppliers and vendors sell best quality raw materials at the lowest prices. In the context of Porter's positioning strategies, which of the following strategies has been adopted by Maymart? -The cost leadership strategy -The differentiation strategy -The price-fixing strategy -The diversification strategy
The cost leadership strategy
Masceo, an oil and gas company, suffered major losses due to damaged oil pipelines. In an attempt to cover its costs, it laid off several employees and closed down three of its refineries. Which of the following grand strategies was used by Masceo in this scenario? -The stability strategy -The growth strategy -The retrenchment strategy -The acquisition strategy
The retrenchment strategy
Which of the following best defines cash cows in the BCG matrix? -They are the companies that have a large share of a fast-growing market. -They are the companies that have a small share of a fast-growing market. -They are the companies that have a large share of a slow-growing market. -They are the companies that have a small share of a slow-growing market.
They are the companies that have a large share of a slow-growing market.
procedure
a standing plan that indicates the specific steps that should be taken in response to a particular event
Which of the following is a benefit of planning? It fixes all organizational problems. It ensures the existence of a company. It gives direction to managerial efforts. It encourages change in an organization.
c.It gives direction to managerial efforts.
10. The first step in the Delphi technique is to create a questionnaire consisting of a series of open-ended questions. a. True b. False
ANSWER: False
11. The purpose of options-based planning is to commit people and resources to a particular course of action. a. True b. False
ANSWER: False
2. In the Delphi technique, panel members need to be brought together in one place. a. True b. False
ANSWER: False
4. Research suggests that the nominal group technique typically produces better decisions than the devil's advocacy and dialectical inquiry approaches. a. True b. False
ANSWER: False
8. The first step in planning is to develop effective action plans. a. True b. False
ANSWER: False
3. Research indicates that the effectiveness of goal setting can be doubled by the addition of feedback. a. True b. False
ANSWER: True
36. Ray, the brand manager of Randalegna, an online furniture company, prepares a plan detailing Randalegna's merger with Leonmento, an online home décor company. In this scenario, Ray has most likely prepared a _____. a. strategic plan b. single-use plan c. tactical plan d. standing plan
ANSWER: b
53. Kyle, the human resources manager of an electrical company, is preparing an estimate of the recruitment requirements, training overheads, and induction expenditure for the next six months to present to the chief human resources officer of the company. In this scenario, Kyle is most likely creating a(n) _____. a. strategic plan b. single-use plan c. tactical plan d. operational plan
ANSWER: c
58. _____ are responsible for the creation of tactical plans. a. Chief Financial Officers b. First-level managers c. Middle managers d. Top managers
ANSWER: c
SweetCream is an ice cream manufacturer. It sells Guilt-Free, a zero-calorie ice cream, which competes with FlavorBell's MooSweet, a low-calorie ice cream. FlavorBell reduces MooSweet's prices to match Guilt-Free's prices. Identify the strategic move that is most likely being implemented by FlavorBell in this scenario. -Rejoinder -Attack -Recovery -Acquisition
Attack
The most popular approach to increase goal commitment is to: minimize employee involvement in planning. encourage employee participation while setting goals. ask the top management to assign goals. develop less challenging goals.
B. encourage employee participation while setting goals.
Daniel has started a small shoe manufacturing company. He has a tight budget, and does not want the best equipment at the moment, so he is using equipment that is good enough to work with. In this scenario, Daniel is _____. A. Discounting B. maximizing C. satisficing D. specializing
C
The managers of Danestump, a hardware manufacturing company, are expected to follow standing plans before approving long leaves applied by their subordinates. The standing plans detail the specific steps to be followed when approving such leaves. Given this information, the standing plans in this scenario can be referred to as _____. A. heuristics B. artifacts C. procedures D. prototypes
C
Which of the following is a benefit of planning? A. It fixes all organizational problems. B. It ensures the existence of a company. C. It gives direction to managerial efforts. D. It encourages change in an organization.
C
Jimmy is the sales manager of, Packaday, a packaging and shipping company. He has created a plan that will increase Packaday's customer base by 2.5 percent in the next two months. In this scenario, Jimmy has set a _____. A. passive goal B. recurrent goal C. visionary goal D. proximal goal
D
_____ is defined as the determination to achieve an objective. Goal setting Satisficing Groupthink Goal commitment
D. Goal commitment.
Roadling Inc., a private bus company, has set minimum and maximum age limits for the recruitment of bus drivers. This is because younger bus drivers may not understand the seriousness of safeguarding the life and safety of passengers, and older bus drivers may not be able to work for long hours and night shifts. In the context of federal employment laws, this scenario exemplifies a(n) _____. -employment regulation order -registered employment agreement -bona fide occupational qualification -critical skills employment permit
bona fide occupational qualification
The teams working at Dixon Corp. are allowed to give their suggestions to the top management regarding the workflow and new product designs. The teams are, however, not authorized to make any management decisions and also do not have a say in the kind of projects the company accepts. These teams are an example of a(n) _____. -self-designing team -self-managing team -traditional work team -employee involvement team
employee involvement team
The most popular approach to increase goal commitment is to:
encourage employee participation while setting goals.
In the context of brainstorming, _____ is the fear of what others will think of one's ideas.
evaluation apprehension
In the context of brainstorming, _____ is the fear of what others will think of one's ideas. -dialectal inquiry -cognitive conflict -production blocking -evaluation apprehension
evaluation apprehension
44. Which of the following is the first step in the process of management by objectives? a. Collectively selecting goals b. Discussing possible goals c. Jointly developing tactical plans d. Reviewing progress regularly
ANSWER: b
In the context of maintaining flexibility while planning, unlike traditional planning, options-based planning: involves committing people and resources to a particular course of action. involves making large investments in many alternative plans over a long period of time. reduces flexibility. involves maintaining slack resources.
D. involves maintaining slack resources.
Management by objectives is a management technique often used by middle managers to develop and carry out _____. strategic plans standing plans operational plans tactical plans
D. tactical plans
Once a strategic objective has been accomplished, a new one should be chosen.
true
Planning encourages persistence even when there may be little chance of short-term success.
true
1. The nominal group technique improves group decision making by decreasing a-type conflict. a. True b. False
ANSWER: True
12. Once a strategic objective has been accomplished, a new one should be chosen. a. True b. False
ANSWER: True
5. Specific, challenging goals provide a target for which to aim and a standard against which to measure success. a. True b. False
ANSWER: True
6. The nominal group technique begins by having group members act as individuals. a. True b. False
ANSWER: True
24. The managers at Richellath follow standing plans that broadly define the action that needs to be taken when their subordinates do not meet deadlines. These plans also discuss the intended outcome of the given action. Given this information, the standing plans in this scenario can be referred to as _____. a. policies b. heuristics c. prototypes d. artifacts
ANSWER: a
28. Carolyn, a designer at Logisign, was not given the promotion she was expecting during the annual performance appraisal. She took this personally and got into an argument with her supervisor. In this scenario, the disagreements between Carolyn and her supervisor can best be classified as _____. a. a-type conflict b. cognitive conflict c. c-type conflict d. constructive conflict
ANSWER: a
30. Edgar, the production manager at a textile factory, has noticed a decline in the production capacity of the factory. He wants to understand the reason behind this trend and make a decision on how to resolve the issue. In the context of rational decision making, which of the following is the first step that Edgar should ideally take? a. Identifying and defining the problem b. Computing the optimal decision c. Generating alternative courses of action d. Identifying decision criteria
ANSWER: a
57. Dale, a design engineer at a machinery manufacturing company, prepares a plan with a detailed estimate of the overheads and resources required for setting up a stall at a machinery exhibition next month. In this scenario, Dale has most likely prepared a _____. a. single-use plan b. strategic plan c. standing plan d. tactical plan
ANSWER: a
67. Alice, a reporter at a daily newspaper, is given a low performance rating because she has not been meeting productivity requirements. She is personally affected by the low rating and gets into an argument with her manager. In this scenario, the disagreements between Alice and her supervisor can best be classified as _____. a. a-type conflict b. cognitive conflict c. c-type conflict d. constructive conflict
ANSWER: a
49. Treptron Inc., a software company, has a standing plan that details the specific set of steps to be undertaken when an employee delivers consistently poor performance during his or her probation period. Given this information, the standing plan in this scenario can be referred to as a(n) _____. a. artifact b. prototype c. procedure d. heuristic
ANSWER: c
70. In the context of planning from top to bottom, the top management is responsible for developing _____. a. standing plans b. tactical plans c. operational plans d. strategic plans
ANSWER: d
In an organization, _____ are responsible for the creation of tactical plans. chief financial officers first-level managers middle managers top managers
C. middle managers
_____ is defined as the process of choosing a goal and developing a method or strategy to achieve that goal. Controlling Organizing Leading Planning
D. Planning
Marjoriesse, a multinational chain of gold jewelry stores, allows each of its stores to run advertising campaigns of its choice. Depending on the market conditions, demographic factors, and geographical factors, the store managers of Marjoriesse can choose between print, radio, and television media to advertise. In the context of organizational authority, which of the following is best illustrated in this scenario? -Decentralization of authority -Centralization of authority -Staff authority -Concentrated authority
Decentralization of authority
__ are defined as the standards used to guide judgments and decisions. Standing plans Purpose statements Decision criteria Judgement liens
c. Decision criteria
Which of the following is a disadvantage of electronic brainstorming? Incorrect Response It creates evaluation apprehension. Ideas do not remain anonymous. Outgoing individuals can find it difficult to express themselves in writing. It causes production blocking when one has to wait to present an idea.
c. Outgoing individuals can find it difficult to express themselves in writing.
Standing plan
A laptop manufacturer has created a set of methods to deal with specific technical issues raised by customers. These methods can be referred to as _____
22. __________is a barrier to good decision making caused by pressure within the group for members to agree with each other. a. Groupthink b. Satisficing c. Evaluation apprehension d. Production blocking
ANSWER: a
91. Amy, the chief operations officer of a company that manufactures baby products, formulates a plan on how the company's newly launched products will serve its wide customer base and how it will deal with its competitors. In this scenario, Amy has most likely contributed to developing the company's _____. a. strategic plan b. single-use plan c. tactical plan d. operational plan
ANSWER: a
The _____ is an approach to job redesign that seeks to formulate jobs in ways that motivate workers and lead to positive work outcomes. -job descriptive index -job characteristics model -job rotation index -job enlargement model
job characteristics model
Management by objectives is a management technique often used by middle managers to develop and carry out _____.
tactical plans
37. The marketing managers of Point Inc. are having a conflict over how they can improve the marketing strategies of their company. The managers are disagreeing on the views presented by each other based on their experiences and knowledge. In this scenario, the managers are engaging in a(n) _____. a. a-type conflict b. personal conflict c. c-type conflict d. channel conflict
ANSWER: c
81. __________are the standards used to guide judgments and decisions. a. Standing plans b. Purpose statements c. Decision criteria d. Absolute comparisons
ANSWER: c
What is middle management responsible for?
Tactical plans and management by objectives
In the context of decision making, a _____ is a gap between a desired state and an existing state. problem benchmark condition of certainty minimum threshold
a. problem
A _____ is a type of operational plan that saves managers' time because once the plan is created, it can be used repeatedly to handle frequently recurring events. standing plan budget plan single-use plan tactical plan
a. standing plan
The senior managers of Clockence, a clock manufacturing company, have a disagreement about the quantity of inventory to be allotted to each production team. Each of them views the problem differently, but they are willing to discuss it and arrive at the best possible solution. In this scenario, the conflict among the senior managers at Clockence best exemplifies _____. A. c-type conflict B. affective conflict C. a-type conflict D. channel conflict
A
Which of the following is the first step in the process of management by objectives? A. Discussing possible goals B. Reviewing progress regularly C. Collectively selecting goals D. Jointly developing tactical plans
A
Mildred, the marketing manager of an automobile manufacturing company, is responsible for pricing products, conducting market research, and designing advertising campaigns and promotional activities for the company. In the context of organizational authority, which of the following functions does Mildred most likely perform? -A line function -A staff function -A support function -An advisory function
A line function
_____ are defined as a cushion of extra resources that can be used with options-based planning to adapt to unanticipated changes, problems, or opportunities. Slack resources Strategic groups Secondary firms Standing plans
A. Slack resources
42. Henncom, a company that manufactures computer spare parts, runs its operations in a small office. Owing to the increase in the demand for its products, the company needs to hire more employees. Instead of opting for the temporary solution of reducing each employee's workspace to accommodate more employees, Carl, the operations manager, decides to go with the optimal solution of shifting the company to larger premises. In this scenario, Carl is most likely _____. a. maximizing b. counterconditioning c. overregularizing d. satisficing
ANSWER: a
99. During the annual performance appraisal, Andre's supervisor sets her own standards against which Andre is rated for his performance. In this scenario, Andre's supervisor most likely uses _____ to make a rational decision. a. absolute comparisons b. relative comparisons c. dissonant correlation d. illusory correlation
ANSWER: a
32. Lewrice, an apparel manufacturer, has been finding it difficult to deliver its products to its retailers on time. The time taken to deliver the products has been more than the estimated time in almost all instances. The managers of the company have to make a decision on how to resolve the issue. In the context of rational decision making, which of the following is the first step that the managers should ideally take? a. Computing the optimal decision b. Identifying and defining the problem c. Generating alternative courses of action d. Identifying decision criteria
ANSWER: b
64. Gilbert, the CEO of a theme park, plans to have branches of the theme park in 20 countries in 10 years' time. To achieve this goal, he plans to set up branches in at least two countries by the end of each year. In this scenario, Gilbert's plan to have branches of the theme park in 20 countries in 10 years' time is an example of a _____. a. provisional goal b. distal goal c. proximal goal d. foundational goal
ANSWER: b
74. Which of the following is true of the nominal group technique (NGT)? a. It forces decision makers to state the assumptions of a proposed solution and then generate a solution that is the opposite of the proposed solution. b. It closes with a second quiet time in which group members independently rank the ideas presented. c. It involves a panel of experts who respond to questions and to each other until they reach agreement on an issue. d. It is known to conclude in hostility, anger, and resentment among the participating group members.
ANSWER: b
75. Weston Inc. wants to outsource its customer service operations. The top managers of the company are preparing a plan exclusively to detail the expenditure, overhead, and processes involved in outsourcing its customer service operations. In this scenario, the managers are most likely preparing a _____. a. strategic plan b. single-use plan c. tactical plan d. standing plan
ANSWER: b
78. The production team members of Agrimotor, an agricultural machinery manufacturer, are expected to follow standing plans when any of the machinery used for production stops functioning. These standing plans describe what they should and should not do. They also detail how to deal with the situation. Given this information, the standing plans in this scenario can best be referred to as _____. a. purpose statements b. rules and regulations c. principles and rationales d. recommendation forms
ANSWER: b
80. Omega Corp. has a goal of increasing its production and reducing its overhead costs. To achieve this goal, the company has developed four alternate action plans. Its idea is to monitor how these plans work and then invest more in the plan that shows maximum results. This type of planning that allows for flexibility is known as _____. a. reverse planning b. options-based planning c. time-based planning d. traditional planning
ANSWER: b
84. Douclamp, a steel manufacturer, invests heavily in three iron ore plants that it considers acquiring. The chief financial officer of Douclamp decides to acquire the plant that performs the best in the following year. In this scenario, Douclamp is most likely using _____. a. reverse planning b. options-based planning c. time-based planning d. rigid planning
ANSWER: b
88. Gloria, a designer, is looking for a rented place to set up her own tailoring unit. She has laid down several criteria for finding the ideal place for her unit. Among the criteria, connectivity to public transport is her highest priority, accessibility of community stores is less important, and fully furnished kitchenette is her lowest priority. In this scenario, Gloria is most likely using _____ to make a rational decision. a. absolute comparisons b. relative comparisons c. dissonant correlation d. illusory correlation
ANSWER: b
102. Clarespharm, a pharmaceutical company, wants to be the market leader in the country of Jefnamia by the end of the next fiscal year. To start working toward this goal, the marketing department of Clarespharm sets targets for the marketing teams. Which of the following is ideally the next step for achieving Clarespharm's goal to be the market leader? a. Developing effective action plans b. Tracking progress toward goal achievement c. Developing commitment to the goal d. Maintaining flexibility in planning
ANSWER: c
20. _____ is a decision-making method in which members of a panel of experts respond to questions and to each other until an agreement is reached on how a specific issue should be handled. a. Dialectical inquiry b. The nominal group technique c. The Delphi technique d. Devil's advocacy
ANSWER: c
29. The senior lawyers of Lawteve, a law firm, have differences of opinion about the leave policies that the firm follows. This is because of the differences in their individual history and experiences in the industry. Each of them is willing to have a discussion and arrive at the optimal solution. In this scenario, the conflict among the senior lawyers at Lawteve best exemplifies _____. a. a-type conflict b. affective conflict c. c-type conflict d. channel conflict
ANSWER: c
31. The chief financial officer of Benjampt, a manufacturing company, disagrees with the rest of the senior managers about the renewal of the company's manufacturing license. They have conflicting interests because of their different career experiences. However, they are willing to weigh their opinions and arrive at the best possible solution. In this scenario, the conflict among the senior members best exemplifies _____. a. a-type conflict b. affective conflict c. c-type conflict d. channel conflict
ANSWER: c
55. Jim is the operations manager of a car manufacturing company in the United States. He wants to set up production plants in three other countries by the end of the current year. After he has set this goal, which of the following is the next step he should ideally take in order to achieve this goal? a. Determine the profits the production plants will make b. Track progress toward goal achievement c. Develop commitment to the goal d. Reward hard working employees for their work
ANSWER: c
62. The senior accountants at Spicedam have a disagreement with each other about the calculation of the company's annual budget because of their different industry experiences. However, they are willing to have a rational discussion and arrive at the optimal solution. In this scenario, the conflict among the senior accountants at Spicedam best exemplifies _____. a. a-type conflict b. affective conflict c. c-type conflict d. channel conflict
ANSWER: c
77. Which of the following is a benefit of planning? a. It fixes all organizational problems. b. It ensures the existence of a company. c. It gives direction to managerial efforts. d. It encourages change in an organization.
ANSWER: c
85. Terragemt, a construction company, has to complete the construction of a skyscraper by the end of the next fiscal year. To meet this target, the site engineers have made plans to complete one floor each week. In this scenario, Terragemt's plan to complete one floor each week is an example of a _____. a. capstone goal b. passive goal c. proximal goal d. distal goal
ANSWER: c
16. Management by objectives is a management technique often used by middle managers to develop and carry out _____. a. strategic plans b. standing plans c. operational plans d. tactical plans
ANSWER: d
34. Barromt Bank has applied for a certification and has weekly inspections until it is granted the certification. To get positive feedback for the upcoming weekly inspection, the employees of Barromt Bank are finishing their pending work. In this scenario, the employees of Barromt Bank are most likely working toward a _____ by finishing work for the weekly inspection. a. capstone goal b. passive goal c. distal goal d. proximal goal
ANSWER: d
39. Cassie runs a cake shop. Her primary goal is to set up the largest chain of cake shops in the city. Apart from this goal, another goal of Cassie's is to sell 400 cakes in December. In this scenario, Cassie's goal of selling 400 cakes in December is an example of a _____. a. capstone goal b. passive goal c. distal goal d. proximal goal
ANSWER: d
41. Jimmy is the sales manager of, Packaday, a packaging and shipping company. He has created a plan that will increase Packaday's customer base by 2.5 percent in the next two months. In this scenario, Jimmy has set a _____. a. recurrent goal b. passive goal c. visionary goal d. proximal goal
ANSWER: d
52. Autowizic Inc., an automobile manufacturing company, plans to move its operations to a different city by the end of the year. It sets a target of moving one department by the end of each month, so that all the departments can be moved within a year. In this scenario, Autowizic's plan of moving its operations to a different city by the end of the year is an example of a _____. a. provisional goal b. foundational goal c. proximal goal d. distal goal
ANSWER: d
69. Liastem, a company that manufactures machinery parts, required Computer Numerical Control (CNC) machines for production. The company bought old CNC machines and modified them to meet company requirements because it could not afford fully-automatic, new CNC machines. This scenario best illustrates the concept of _____. a. maximizing b. counterconditioning c. overregularizing d. satisficing
ANSWER: d
71. A laptop manufacturer has created a set of methods to deal with specific technical issues raised by customers. In this scenario, the set of method represents a _____. a. tactical plan b. visionary plan c. single-use plan d. standing plan
ANSWER: d
87. __________is choosing a goal and developing a method or strategy to achieve that goal. a. Controlling b. Organizing c. Leading d. Planning
ANSWER: d
93. Lancencus, a software company, plans to double its workforce in the next 10 years. To achieve this goal, the human resources manager of the company sets a target to increase the company workforce by 20% each year. In this scenario, Lancencus's plan to double its workforce in the next 10 years is an example of a _____. a. recurrent goal b. productivity goal c. operative goal d. distal goal
ANSWER: d
95. Gordop, an automobile manufacturer, wants to be the market leader in the sedan category in five years' time. To achieve this target, it sets a goal of expanding its market by 10% each month. In this scenario, Gordop's goal of becoming the market leader in the sedan category represents a _____. a. provisional goal b. foundational goal c. proximal goal d. distal goal
ANSWER: d
97. Which of the following statements is true of planning? a. It fixes all organizational problems. b. It creates an environment of uncertainty. c. It encourages change in an organization. d. It intensifies the effort put in by managers and employees.
ANSWER: d
The main objective of _____ is to keep choices open by making small, simultaneous investments in many alternative plans. strategic planning options-based planning static planning traditional planning
B. options-based planning
A drawback of planning is that it: fails to provide direction to managerial activities. causes detachment, which leads planners to plan for things they do not understand. discourages employees to put in additional efforts when following a plan. decreases persistence among employees, and leads to slackness.
B.causes detachment, which leads planners to plan for things they do not understand.
An organization's _____ is defined as a more specific goal than the organization's purpose that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame. vision statement single-use plan strategic objective mission statement
C. strategic objective
satisficing
Daniel has started a small shoe manufacturing company. He does not want the best equipment at the moment, so he is using equipment that is good enough to work with. In this scenario, Daniel is _____.
_____ are companies using an adaptive strategy aimed at protecting strategic positions by seeking moderate, steady growth and by offering a limited range of high-quality products and services to a well-defined set of customers. Reactors Prospectors Defenders Analyzers
Defenders
Claire is a manager at an IT firm. She notices a consistent drop in the productivity of her employees. She is not able to find the reason behind this drop. In the context of rational decision making, which of the following steps should Claire take first?
Defining the problem
Jim is the operations manager of a car manufacturing company in the United States. He wants to set up production plants in three other countries by the end of the current year. After he has set this goal, which of the following is the next step he should ideally take in order to achieve this goal?
Develop commitment to the goal
Which of the following best defines a SWOT analysis? -It involves assessment of the strengths and weaknesses in an organization's internal environment. -It measures the tangible rather than the intangible assets of an organization. -It is conducted by regulatory agencies to measure the performance of organizations. -Its aim is to review internal processes independently of the external industry environment.
It involves assessment of the strengths and weaknesses in an organization's internal environment.
Which of the following best defines competitive inertia? -It is a reluctance to change strategies or competitive practices that have been successful in the past. -It is a risk-seeking strategy that aims to create and acquire companies in completely unrelated businesses. -It is a discrepancy between a company's intended strategy and the strategic actions managers take when implementing that strategy. -It is a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines.
It is a reluctance to change strategies or competitive practices that have been successful in the past.
_____ are responsible for developing operational plans.
Lower-level managers
In the context of rational decision making, which of the following is a difference between maximizing and satisficing? -Maximizing is choosing the best alternative, whereas satisficing is choosing a good-enough alternative. -Maximizing is possible when limited resources are available, whereas satisficing is possible when ample resources are available. -Maximizing is recommended when there are memory and expertise problems, whereas satisficing is recommended when there are no problems. -Maximizing involves being fast rather than thorough, whereas satisficing involves being thorough rather than fast.
Maximizing is choosing the best alternative, whereas satisficing is choosing a good-enough alternative.
What is top management responsible for?
Mission and Vision
BLANK Is choosing a goal and developing a method or strategy to achieve a goal
Planning
_____ is defined as the process of choosing a goal and developing a method or strategy to achieve that goal.
Planning
is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions.
Rational decision making
At a canning factory, employees are strictly instructed to wear a uniform while working around the canning machines. Which of the following kinds of standing plans is exemplified in this scenario?
Rules and regulations
Which among the following is the most specific type of standing plans.
Rules and regulations
Which of the following has the most autonomy in the autonomy continuum? -Semi-autonomous work groups -Self-designing teams -Employee involvement teams -Traditional work groups
Self-designing teams
In the context of operational plans, which of the following is a difference between single-use plans and standing plans? -Computing the optimal decision -Weighing the decision criteria -Generating alternative courses of action -Making absolute comparisons
Single-use plans cover unique, one-time-only events, whereas standing plans handle frequently recurring events.
Hankson Corp. has five strategic business units (SBUs)—information technology, insurance, publishing, fine arts, and tourism. It invests the majority of its funds in the information technology unit as the unit has a large market share and generates large amounts of its profits in a fast-growing market. In the context of the BCG matrix, which of the following categories of SBUs best describes the information technology unit? -Stars -Cash cows -Question marks -Dogs
Stars
In the context of planning from top to bottom, the top management is responsible for developing _____. -standing plans -tactical plans -operational plans -strategic plans
Strategic Plans
Planning encourages persistence even when there may be little chance of short-term success. (T/F)
T
Management by objectives is a management technique often used by middle managers to develop and carry out _____. -strategic plans -standing plans -operational plans -tactical plans
Tactical Plans
Kyle, the human resources manager of an electrical company, is preparing an estimate of the recruitment requirements, training overheads, and induction expenditure for the next six months to present to the chief human resources officer of the company. In this scenario, Kyle is most likely creating a(n) _____.
Tactical plan
In the context of structured conflict, which of the following is a difference between the devil's advocacy approach and dialectical inquiry?
The devil's advocacy approach involves assigning an individual the role of critic, whereas dialectical inquiry involves generation of a solution that is the opposite of a proposed solution.
maintain flexibility in planning
The last step in effective planning is to _____
All the members of the sales team at Arkema are new hires. The team members need to work together to ensure that clients' requirements are fulfilled and weekly targets set by the company are adequately met. However, the team members are often involved in minor arguments and find it difficult to work with each other. In which of the following stages of team development is this team most likely to resolve petty differences among its members? -The norming stage -The storming stage -The forming stage -The reforming stage
The norming stage
In an organization, _____________refers to a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame.
The strategic objective
Which of the following statements is true of team norms? -They allow flexibility in terms of job performance, absenteeism, and safety. -They regulate the everyday actions that allow teams to function effectively. -They indicate the extent to which team members are attracted to a team. -They are rules that are formally signed and agreed upon by team members.
They regulate the everyday actions that allow teams to function effectively.
In the context of the different kinds of teams, which of the following is a difference between traditional work groups and self-designing teams? -Traditional work groups have the least autonomy, whereas self-designing teams have the most autonomy. -Traditional work groups can provide advice to management and have the authority to make decisions, whereas self-designing teams can only provide advice and suggestions to management. -Unlike self-designing teams, traditional work groups can control and change the memberships of the teams. -Unlike self-designing teams, traditional work groups can manage and control all of the major tasks directly related to production of a product without first getting approval from management.
Traditional work groups have the least autonomy, whereas self-designing teams have the most autonomy.
Anstantink, an audit firm, conducts interviews for hiring new employees. Individual interviewers are given the liberty by the human resources department to ask questions of their choice. Given this information, which of the following kinds of interviews is Anstantink most likely using? -Closed interviews -Disciplinary interviews -Counseling interviews -Unstructured interviews
Unstructured interviews
Chester, the operations manager at a chemical manufacturing company, finds that the air pollutants released by the company have become very high. To arrive at a decision to resolve the issue, he defines the problem and then identifies decision criteria. In the context of rational decision making, which of the following is the next step that Chester should ideally take? -Computing the optimal decision -Weighing the decision criteria -Generating alternative courses of action -Making absolute comparisons
Weighing the decision criteria
Options-based
_______ planning allows companies to maintain flexibility by making small, simultaneous investments in many alternative plans
Planning
_________ is choosing a goal and developing a method or strategy to achieve that goal
What is management by objectives?
a four-step process in which managers and employees discuss and select goals, develop tactical plans, and meet regularly to review progress toward goal accomplishment
Todd's manager rejected his leave application because project deadlines were getting closer. Todd considered this a personal offence and got into an argument with his manager. In this scenario, the disagreements between Todd and his manager can best be classified as _____.
a-type conflict
Todd's manager rejected his leave application because project deadlines were getting closer. Todd considered this a personal offence and got into an argument with his manager. In this scenario, the disagreements between Todd and his manager can best be classified as _____. -c-type conflict -cognitive conflict -a-type conflict -constructive conflict
a-type conflict
___ refers to the emotional reactions that can occur when disagreements become personal rather than professional. A-type conflict C-type conflict Channel conflict A cognitive conflict
a. A-type conflict
_____ is a barrier to good decision making caused by pressure within a group for members to agree with each other. Groupthink Group polarization In-group favoritism Groupshift
a. Groupthink
In the context of operational plans, which of the following is a difference between single-use plans and standing plans? Single-use plans cover unique, one-time-only events, whereas standing plans handle frequently recurring events. Single-use plans use quantitative planning, whereas standing plans use qualitative planning. Single-use plans include policies and procedures, whereas standing plans include rules and regulations. Single-use plans are operational plans, whereas standing plans are tactical plans.
a. Single-use plans cover unique, one-time-only events, whereas standing plans handle frequently recurring events.
During the annual performance appraisal, Andre's supervisor sets her own standards against which Andre is rated for his performance. In this scenario, Andre's supervisor most likely uses _____ to make a rational decision. absolute comparisons relative comparisons dissonant correlation illusory correlation
a. absolute comparisons
In an organization, _____ are responsible for developing and carrying out operational plans. lower-level managers middle managers top managers board of directors
a. lower-level managers
In the context of portfolio strategy, _____ is the purchase of a company by another company -divestiture -demerger -acquisition -restructuring
acquisition
In the context of using groups to improve decision making, which of the following is true of the nominal group technique (NGT)? It forces decision makers to state the assumptions of a proposed solution and then generate a solution that is the opposite of the proposed solution. It closes with a second quiet time in which group members independently rank the ideas presented. It involves a panel of experts who respond to questions and to each other until they reach agreement on an issue. It is known to conclude in hostility, anger, and resentment among the participating group members.
b. It closes with a second quiet time in which group members independently rank the ideas presented.
___ are standing plans that indicate the specific steps that should be taken in response to a particular event. Policies Procedures Single-use plans Options-based plans
b. Procedures
____ is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions. Options-based planning Rational decision making Benchmarking Profiling
b. Rational decision making
In the context of using groups to improve decision making, which of the following is a difference between c-type conflict and a-type conflict? Unlike a-type conflict, c-type conflict undermines team effectiveness. Unlike c-type conflict, a-type conflict often results in anger and resentment. Unlike c-type conflict statements, a-type conflict statements focus on issues and ideas. Unlike a-type conflict, c-type conflict refers to the emotional reactions that can occur when disagreements become personal.
b. Unlike c-type conflict, a-type conflict often results in anger and resentment.
stepladder technique
begins with discussion between two group members who share their thoughts, ideas, and recommendations before jointly making a tentative decision.
In the context of operational plans, which of the following is a difference between policies and procedures? Policies are single-use plans, whereas procedures are standing plans. Policies are plans that cover one-time-only events, whereas procedures are plans that can be used for recurring events. Policies indicate the general course of action that managers should take in response to a particular event, whereas procedures indicate the specific steps that managers should take in response to a particular event. Policies are strategic plans that are developed and carried out by the lower-level managers of a company, whereas procedures are tactical plans that are developed and carried out by the middle management of a company.
c. Policies indicate the general course of action that managers should take in response to a particular event, whereas procedures indicate the specific steps that managers should take in response to a particular event.
_____ is a decision-making method in which members of a panel of experts respond to questions and to each other until reaching agreement on an issue. Dialectical inquiry The nominal group technique The Delphi technique The devil's advocacy approach
c. The Delphi technique
In the context of structured conflict, which of the following is a difference between the devil's advocacy approach and dialectical inquiry? The devil's advocacy approach involves assigning an individual the role of critic, whereas dialectical inquiry involves generation of a solution that is the opposite of a proposed solution. The devil's advocacy approach does not lead to improved decision quality, whereas dialectical inquiry leads to improved decision quality. The devil's advocacy approach results in the creation of a-type conflicts, whereas dialectical inquiry results in the creation of c-type conflicts. The devil's advocacy approach uses a panel of experts to respond to questions and to each other until reaching agreement on an issue, whereas dialectical inquiry involves group members who quietly write down and evaluate ideas to be shared with the group.
c. The devil's advocacy approach results in the creation of a-type conflicts, whereas dialectical inquiry results in the creation of c-type conflicts.
In the context of rational decision making, which of the following is a difference between absolute comparisons and relative comparisons? Unlike in absolute comparisons, in relative comparisons, each criterion is compared with a standard. Unlike in absolute comparisons, in relative comparisons, each criterion is ranked on its own merits. Unlike in absolute comparisons, in relative comparisons, each criterion is compared directly with every other criterion. Unlike in absolute comparisons, in relative comparisons, each criterion is assigned a fixed weight based on its relevance.
c.Unlike in absolute comparisons, in relative comparisons, each criterion is compared directly with every other criterion.
Satisficing
choosing a "good enough" alternative
Frank, a marketing manager, has often noticed that his team members do not communicate with each other and are rarely present for team meetings. He also noticed that his team's productivity is considerably low. This scenario illustrates that Frank's team lacks _____. -diversity -autonomy -leadership -cohesiveness
cohesiveness
In the context of using groups to improve decision making, unlike a-type conflicts, c-type conflicts: disqualify the use of critics. often result in anger and resentment. can be created by using the devil's advocacy approach. involve the use of statements that focus on individuals.
d. involve the use of statements that focus on individuals.
A laptop manufacturer has created a set of methods to deal with specific technical issues raised by customers. In this scenario, this set of methods represents a _____. tactical plan visionary plan single-use plan standing plan
d. standing plan
affective conflict
disagreement that focuses on individuals or personal issues. A-type conflict often results in hostility, anger, resentment, distrust, cynicism, and apathy
C-type conflict
disagreement that focuses on problem- and issue-related differences of opinion. group members disagree because their different experiences and expertise lead them to view the problem and its potential solutions differently.
Bernalk Corp., a financial organization, only promotes Whites to senior management positions. In the context of employment discrimination, this scenario best illustrates _____. -disparate treatment -adverse impact -affirmative action -minority domination
disparate treatment
After the chief executive officer of Wradamt Inc. resigned, the human resources department of the company placed an advertisement in several leading newspapers inviting applicants with the requisite qualifications and work experience. In this scenario, Wradamt Inc. is engaged in _____. -structural accommodation -validation -external recruiting -downsizing
external recruiting
Vanessa is appointed as the project manager for a project on new product development at Glacier Inc. After selecting employees from different functional areas to work with as a team, she conducts a meeting with the new team members so that they can get to know each other. Following a brief interaction session, Vanessa presents the team norms to them. This scenario illustrates that Vanessa's team is in the _____ stage of team development. -storming -norming -performing -forming
forming
pitfall of group decision making..
group think-occurs in highly cohesive groups when group members feel intense pressure to agree with each other so that the group can approve a proposed solution. Also finding the time to meet is a pitfall and people taking dominance over the group
The product development team of a company conducts a meeting to discuss the worthiness of launching a new product in the market. The majority of the team members support the idea and believe it would sell in the market. However, one member, Jeff, is not very sure of the success of the product in the market but decides not to voice his opinion fearing that his dynamics with the team might get affected. This scenario illustrates the concept of _____. -groupthink -reverse psychology -synergy -conservative bias
groupthink
What are the steps in the rational decision making process?
identify the problem, defining decision criteria, an absolute or relative comparison process, generating as many alternative courses of action, gather info and evaluate, compute the optimal value for each course of action
electronic brainstorming
in which group members use computers to communicate and generate alternative solutions, overcomes the disadvantages associated with face-to-face brainstorming.
The top management of a company decided to lay off about 20 percent of its employees to cope with the financial loss the company incurred over the year. This scenario is an example of _____. -job embeddedness -involuntary separation -functional turnover -reverse discrimination
involuntary separation
Rational Decision making
is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions
In the context of job design, _____ allows companies to retain the economic benefits of specialized work because employees simply switch from one specialized job to another. -job enrichment -job enlargement -job empowerment -job rotation
job rotation
The teams working at Lamine Inc. have access to all company and client information that is normally accessible only to managers. This helps motivate teams and keeps them well informed. In this scenario, the employee-friendly workplace culture is most likely to increase _____. -job satisfaction -customer satisfaction -organizational information security -grapevine communication
job satisfaction
Claudia was recruited as the chief marketing officer of Boafil, an automobile manufacturing company, even though her previous employer refused to disclose any details about her. In the context of references and background checks, Boafil is most likely to face a _____. -wrongful discharge lawsuit -downsizing lawsuit -dysfunctional turnover lawsuit -negligent hiring lawsuit
negligent hiring lawsuit
Hodecathon, a large company that sells home décor, makes investments in four handicraft stores that supply handicrafts to the company. Depending on the return that Hodecathon gets on these investments, the company plans to buy the most profitable store. In this scenario, Hodecathon is most likely using _____.
options-based planning
_____ is choosing a goal and developing a method or strategy to achieve that goal.
planning
Tactical plans
plans created and implemented by middle managers that specify how the company will use resources, budgets, and people over the next six months to two years to accomplish specific goals within its mission
The managers at Richellath follow standing plans that broadly define the action that needs to be taken when their subordinates do not meet deadlines. These plans also discuss the intended outcome of the given action. Given this information, the standing plans in this scenario can be referred to as _____.
policies
A _____ is a gap between a desired state and an existing state.
problem
Treptron Inc., a software company, has a standing plan that details the specific set of steps to be undertaken when an employee delivers consistently poor performance during his or her probation period. Given this information, the standing plan in this scenario can be referred to as a(n) _____.
procedure
The team leaders in the production department at Virginiastalk, an automobile manufacturer, follow standing plans that specify the detailed steps they are expected to follow when an export order gets canceled. Given this information, the standing plans in this scenario can be referred to as _____.
procedures
Bridget's Gifts, a gift store in Janville, has four departments: flowers and soft toys, cards and e-cards, metal collectibles, and photo albums and scrapbooks. These departments are responsible for manufacturing their own commodities. In this scenario, Bridget's Gifts most likely uses _____ to organize its work and employees into separate units. -matrix departmentalization -functional departmentalization -product departmentalization -customer departmentalization
product departmentalization
Barromt Bank has applied for a certification and has weekly inspections until it is granted the certification. To get positive feedback for the upcoming weekly inspection, the employees of Barromt Bank are finishing their pending work. In this scenario, the employees of Barromt Bank are most likely working toward a _____ by finishing work for the weekly inspection.
proximal goal
nominal group technique
quiet time in which group members independently write down as many problem definitions and alternative solutions as possible.
Gloria, a designer, is looking for a rented place to set up her own tailoring unit. She has laid down several criteria for finding the ideal place for her unit. Among the criteria, connectivity to public transport is her highest priority, accessibility of community stores is less important, and fully furnished kitchenette is her lowest priority. In this scenario, Gloria is most likely using _____ to make a rational decision.
relative comparisons
Liastem, a company that manufactures machinery parts, required Computer Numerical Control (CNC) machines for production. The company bought old CNC machines and modified them to meet company requirements because it could not afford fully-automatic, new CNC machines. This scenario best illustrates the concept of _____.
satisficing
A _____ is a type of operational plan that saves managers' time because once the plan is created, it can be used repeatedly to handle frequently recurring events.
standing plan
A laptop manufacturer has created a set of methods to deal with specific technical issues raised by customers. In this scenario, the set of method represents a _____.
standing plan
An organization's _____ is defined as a more specific goal than the organization's purpose that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame.
strategic objective
Deborah is a middle manager in a leading fashion magazine. She presents a half-yearly estimate on how she intends to use the budget allotted to her team for the next six months. In this scenario, Deborah has most likely contributed to developing the _____ for her team.
tactical plan
Delphi technique
the members of a panel of experts respond to questions and to each other until reaching agreement on an issue.
When a new chemist is hired at Praganost, a pharmaceutical manufacturing company, he or she is given rejected samples to work with until his or her supervisor is convinced that he or she can be part of the team involved in the actual production of medicines. This is a cost-efficient training method because the actual expensive and critical ingredients are not used. In the context of training methods, this scenario best illustrates _____. -refresher training -sensitivity training -vestibule training -on-the-job training
vestibule training
What are Operational plans?
which are the day-to-day plans for producing or delivering the organization's products and services.
Strategic objective
which flows from the purpose, is a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame
purpose statement
which is often referred to as an organizational mission or vision, is a statement of a company's purpose or reason for existing.
