Management Final
When an organization has a competitive advantage, ________.
it has something that other companies don't, does something better than other organizations, or does something that others can't
The ________ of a selection tool refers to how accurately it predicts or forecasts what it is meant to predict.
validity
The rights inherent in a managerial position to tell people what to do and to expect them to do it is known as ________.
authority
Which of the following generational cohorts currently comprises the largest share of the workforce?
Baby boomers
In an organic organization, which of the following would you most likely see?
High degree of decentralization
The biggest health care cost for companies is ________.
Obesity
Many start-ups today ________.
are integrating revenue-generating and philanthropy
Approximately ________ percent of the U.S. workforce is represented by labor unions.
11%
Which performance appraisal method solicits performance feedback from multiple persons with whom the employee interacts on a regular basis, such as peers, subordinates, customers, and supervisors?
360-degree appraisal
In which of the following organizations would an organic structure likely be most appropriate?
A company pursuing unique innovations in a dynamic, rapidly changing industry
Which of the following managers has line authority?
A customer service manager establishes the work schedules of customer service representatives and can discipline them in accordance with the rules of the company.
Which of the following is the best example of customer departmentalization?
A textbook publisher with separate divisions for clients in higher education, professional continuing education, elementary education, and secondary education
Which term refers to efforts to improve the educational and/or employment opportunities of members of groups that have not been treated fairly in the past because of their race or gender?
Affirmative action
LaToya has developed a progressive form of hearing loss. To ensure that she is still able to perform the essential functions of her job, her employer was required to make a reasonable accommodation and equip her office telephone with a specialized headset. Which law or ruling is most applicable to this scenario?
Americans with Disabilities Act
Barbara's Bridals does not want to be "all things to all people." The company serves a niche market of plus-sized brides who want to purchase high-end, designer wedding gowns. Barbara's Bridals is pursuing a ________ strategy.
focus
Because of its sheer size and the volume of products it purchases from its vendors, Walmart can dictate the prices it will pay. Which of Porter's five competitive forces does this represent?
Bargaining power of buyers
An electronics firm develops a control for an appliance manufacturer, and its contract states that, if the appliance manufacturer terminates the contract early, it must reimburse the electronics firm for $2 million in development costs. Which of Porter's five competitive forces does this represent?
Bargaining power of suppliers
Which organizational structure did Jack Welch use at GE to eliminate vertical and horizontal lines within GE and to break down external barriers between the company and its customers and suppliers?
Boundaryless organization
Which of the following is the most important thing an entrepreneur develops when planning a venture?
Business plan
Laura is a billing clerk in a medium-sized manufacturing company. She reports to the Supervisor of Accounts Payable, who in turn reports to the Manager of Accounting. The Manager of Accounting is accountable to the Chief Financial Officer, who reports to the company president. Which element of organizational design does this illustrate?
Chain of command
A manufacturer of luxury handbags and luggage does not hire any permanent employees in its distribution facilities. Workers are hired as temporary workers, subject to demand for their services. The company pays no Social Security, Medicare, or unemployment insurance taxes on these employees. Which term best describes this work arrangement?
Contingent workers
Which of the following is the second step of the strategic management process?
Doing an external analysis
Jake is in the process of developing a strategic plan for his organization. He has just completed an analysis of the firm's resources and capabilities and has identified its strengths and weaknesses. According to the six-step strategic management process, which step has Jake performed?
Doing an internal analysis
Which of the following is an important motivational tool entrepreneurs can use?
Employee empowerment
When the CEO of the ACE Company is developing strategic flexibility, she is most likely to do which of the following?
Encourage employees to be open about disclosing and sharing negative information
Darma, a 56-year-old female, believes she has a cause of action against her employer because she is being paid less than a male worker who performs the same work. Which law or ruling is most applicable to this scenario?
Equal Pay Act
What is the first step in the entrepreneurial process?
Exploring the entrepreneurial context
Aleena's mother is seriously ill in another state, and Aleena has requested leave from her employer to care for her mother. Which law or ruling is most applicable to this scenario?
Family and Medical Leave Act
Which of the following products would likely be produced using process production?
Gasoline
The ABC retail company groups activities around its East Coast, West Coast, and Midwest locations. Which type of departmentalization is the company using?
Geographical
Justina is completing a performance appraisal for one of her subordinates. She must rank the employee on a scale of 1 to 5 in multiple categories such as quantity of work, quality of work, knowledge, attitude, dependability, and cooperation. What performance appraisal method is being used?
Graphic rating scale
The success of eBay as an online intermediary between buyers and sellers to connect people (versus selling them things) is an example of which of Drucker's sources of opportunity?
Industry and market structures
Which of the following describes a feasibility study?
It can serve as a basis for a business plan.
Which of the following defines an entrepreneurial venture?
It pursues opportunities, is characterized by innovative practices, and has growth and profitability as its main goal.
Martina has decided to structure her new business venture to provide liability protection while gaining tax benefits over alternative structures. Her attorney has prepared the operating agreement and advised her of the complexities and expense of setting up this structure. Which of the basic types of ownership has Martina chosen?
LLC
Joan is a manufacturing engineer who works on a new product development team along with members from design, engineering, production, purchasing, finance, marketing, and quality assurance. Joan still has responsibilities to the Manager of Manufacturing Engineering, but simultaneously reports to the new product development team leader. What type of organizational design does this describe?
Matrix structure
One of the selection tools for firefighters is to be able to drag a 175-pound dummy for a distance of 100 feet. What type of selection tool does this represent?
Physical examination
Which of the following is NOT one of the six key elements of organizational design?
Regulation
One of GTO Industries' key suppliers is in the midst of a labor dispute and workers have gone on strike. In terms of an internal/external analysis, this would be an example of a(n) ________.
threat
________ is the extent to which a selection tool produces consistent results over time.
Reliability
Howard is hired by ABC Manufacturing as an assembly technician trainee at minimum wage. After successfully completing two core workshops in safety and quality, Howard receives a $.50 per hour raise. He then completes a workshop on line restocking and another on burr removal, and his pay is increased an additional $.65 per hour. Which of the following does this best illustrate?
Skill-based pay
Which of the following is NOT true of strategic management?
The economic viability of the organization's business model is seldom a factor in the strategic management process.
The creation of ATMs in the 1960s paved the way for today's online banking. According to Peter Drucker, the creation of ATMs is an example of which potential source of opportunity?
The process need
Which of the following is NOT true of sexual harassment?
The victim must be the person harassed.
How does the boiled frog phenomenon relate to entrepreneurs?
They need to be alert to signals that the venture's performance may be worsening.
Which of the following defines high risk-seekers?
They need to understand when to take risks and when to avoid them.
A major appliance manufacturer that has been purchasing electronic controls from a supplier makes the decision to design and develop the controls in-house. From the supplier's perspective, which of Porter's five competitive forces does this represent?
Threat of new entrants
A job ________ describes the content, environment, and conditions of employment, whereas a job ________ states the minimum qualifications a person must possess to successfully perform the job.
description; specification
Which decruitment option is unlikely to reduce costs, but can reduce intra-organizational supply-demand imbalances?
Transfers
________ is the principle that no subordinate in an organization should report to more than one manager.
Unity of command
When would an organic structure be most appropriate?
When innovation is critical to the organization's competitive advantage
When Jason applied for a job as a heating and air conditioning technician, he was given a malfunctioning compressor and was asked to diagnose the problem. What type of selection tool does this represent?
Work sampling
At a delicatessen, one employee greets patrons and takes their orders. Another employee assembles the sandwiches. A third employee wraps the sandwiches and operates the cash register. Which element of organizational design does this illustrate?
Work specialization
When Sarah started at the restaurant as a waitress, her boss spent the morning introducing her to coworkers, explaining the menu to her, and familiarizing her with the restaurant's procedures for waiting on customers. What type of training did Sarah receive?
Work unit orientation
Emerson Enterprises has made a decision to close its manufacturing facility in LaVerna, Alabama, and move operations to Mexico to take advantage of lower labor costs. Which law or ruling is most applicable to this scenario?
Worker Adjustment and Retraining Notification Act
In identifying personality characteristics of entrepreneurs, it is likely that entrepreneurs ________.
are more proactive
An automobile manufacturer has four distinct business units-one for each of its major brands. Each of these units is headed up by a senior manager who has authority over that brand and is responsible for performance. Based on this, it can be assumed that the company has a ________ structure.
divisional
An organization's skills and abilities in doing the work activities needed in its business are referred to as its ________.
capabilities
A strategic business unit (SBU) of a major corporation has high market share in its industry, but the growth rate of the industry is expected to be stagnant over the long run. According to the BCG matrix, how would this SBU be categorized?
cash cow
The president of Adam's company rules with an iron fist. All decisions must first be approved by the president, regardless of how small or insignificant they are. This suggests that there is a high degree of ________ within the company.
centralization
High-performance work practices include all of the following EXCEPT ________.
centralized decision making
What sets an organization apart from its competitors is known as its ________.
competitive advantage
An organization that grows using ________ expands by focusing on its primary line of business and increasing the number of products offered or markets served in its primary business.
concentration
Pasta Pronto is planning to grow by adding a location and increasing its delivery radius. What type of strategy is Pasta Pronto using?
concentration
An entrepreneur has decided to structure her business as a distinct legal entity with its own charter. She wants to be sure the business entity is separate from herself as owner and separate from her managers. Which of the basic types of ownership has she chosen?
corporation
RGH Enterprises is able to produce a wide line of garden tools and sells a high volume, and thus can capitalize on economies of scale and charge lower prices than its competitors. RGH Enterprises is using the ________ strategy.
cost leadership
The process of starting new businesses, generally in response to opportunities, is ________.
entrepreneurship
A small, private college groups employees together by the work specialty, such as academic affairs, financial aid, food service, and campus security. This college appears to have a ________ structure.
functional
In comparison to large firms, small firms ________.
generate nearly three times the number of patents per research and development dollar spent
An entrepreneur's decision to exit the venture may be based on the fact that he or she hopes to capitalize financially on the investment in the venture. This is known as ________.
harvesting
A ________ is an assessment that defines jobs and the behaviors necessary to perform them.
job analysis
The ________ for a human resources manager indicates that the individual must have a minimum of 5 years of experience in human resources, experience supervising and managing a professional staff, a bachelor's degree in human resources or management, proficiency in organizational development, and familiarity with HRIS and Microsoft Office.
job specification
According to the Boston Consulting Group (BCG) matrix, a question mark has ________ market share and ________ anticipated growth rate.
low; high
In recruiting employees, entrepreneurs tent to focus on ________.
matching the person to the organization
At Mark's company, the policy and procedures manual is two inches thick and seemingly covers every single aspect of work in great detail. He has even jokingly said, "If the company wanted you to have a family, it would probably be in the procedures manual." Based on this, it would appear that Mark works for a(n) ________ organization.
mechanistic
In a(n) ________ organization, authority is centralized and rules are clearly specified.
mechanistic
A textile mill has separate departments for spinning, weaving, dying, and printing. The outputs of one department become the inputs for the next department. This describes departmentalization based upon ________.
process
The first step for an entrepreneur in successfully managing a downturn is ________.
recognizing that a crisis is brewing
Locating, identifying, and attracting qualified applicants is the HR process referred to as ________.
recruitment
Which of the following corporate strategies would be used by an organization to address declining performance?
renewal strategy
As a source of opportunity for entrepreneurs, new knowledge ________.
requires that entrepreneurs be able to do something with that knowledge
JMY Technologies has experienced declining performance for the past six months. Top-level managers have determined that the problems are minor in nature and that a short-run renewal strategy is most appropriate. In order to stabilize operations, JMY will most likely implement a ________ strategy.
retrenchment
Jolene owns her own marketing design consulting business. There are only five employees, so the organization has a flat hierarchy, and Jolene retains full authority. Jolene's company would best be described as a ________ structure.
simple
The legal organization in which the owner maintains complete control over the business and is personally liable for business debts is the ________.
sole proprietorship
Which of the following corporate strategies would be described as a status quo strategy?
stability strategy
A strategic business unit (SBU) of a major corporation has entered a new, high volume industry and has quickly captured a significant share of the market. According to the BCG (Boston Consulting Group) matrix, how would this SBU be categorized?
star
The ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organization to initiate changes that will create a viable and valuable future for the organization is known as ________.
strategic leadership
When managers develop the strategies for the organization for how it will compete successfully, they are engaged in ________.
strategic management
In terms of an internal/external analysis, loyal employees, low turnover, and a well-trained workforce would be examples of a ________.
strength
More than one third of entrepreneurs said their idea for a business came from ________.
sudden insight/chance
The organizational structure that is built around self-directed work groups that are responsible for all work performance results in their respective areas is a ________.
team structure
Max DePree suggested that a successful entrepreneur could be compared to ________.
the leader of a jazz ensemble
The formal arrangement of jobs within an organization is known as ________.
the organizational structure
A major appliance manufacturer that has been purchasing electronic controls from a supplier makes the decision to design and develop the controls in-house. What type of corporate strategy does this represent?
vertical integration
In terms of an internal/external analysis, the use of obsolete technology in an outdated facility would be considered a(n) ________.
weakness
In terms of how many employees a manager can effectively and efficiently manage, the trend in recent years has been toward ________.
wider spans of control
A group of nominated or elected employees who must be consulted when management makes decisions involving personnel is known as a ________.
work council
Which training method do experts believe that organizations will increasingly rely on to deliver important information and to develop employees' skills?
E-learning and mobile learning
Alec works on a new product development team at GTO Industries. His team is composed of members from engineering, quality, manufacturing, marketing, purchasing, and accounting. This describes a ________.
cross-functional team
The two primary factors affecting an entrepreneur's choice of legal ownership for a venture are ________ and ________.
taxes; legal liability
