MGMT EXAM 3

is the process of identifying outstanding practices, processes, and standards in other companies and adapting them to one's company.

Benchmarking is the process of identifying outstanding practices, processes, and standards in other companies and adapting them to one's company.

Budgets are a type of

Budgets are a type of operational plans. Budgeting is quantitative planning because it forces managers to decide how to allocate available money to best accomplish company goals.

_____ is the use of hierarchical authority to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures.

Bureaucratic control Correct. Bureaucratic control is the use of hierarchical authority to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures.

_____ is the process used to get workers and managers to change their behaviors and work practices.

Change intervention Correct. Change intervention is the process in which managers and workers change their behavior and work practices.

_______usually arise when companies give work groups complete autonomy and responsibility for task completion.

Concertive controls usually arise when companies give work groups complete autonomy and responsibility for task completion.

______ is a regulatory process of establishing standards to achieve organizational goals, comparing actual performance to the standards, and taking corrective action when necessary to restore performance to those standards.

Control is a regulatory process of establishing standards to achieve organizational goals, comparing actual performance to the standards, and taking corrective action when necessary to restore performance to those standards.

Keniey, a company that manufactures and supplies home appliances, launches a fully automatic advanced food processor that performs the functions of slicing, chopping, grinding, shredding, grating, pureeing, kneading, mixing, and blending. The product is priced lower than semi-automatic food processors sold by other brands. In the context of innovation streams, which of the following concepts does this scenario best illustrate?

Correct. In the context of innovation streams, this scenario best illustrates incremental change. Incremental change is the phase of a technology cycle in which companies innovate by lowering costs and improving the functioning and performance of the dominant technological design. See 7-1: Why Innovation MattersWhy Innovation Matters

_____ are workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged.

Creative work environments Correct. Creative work environments are workplace cultures in which workers perceive that new ideas are welcomed, valued and encouraged. Creative work environments have six components that encourage creativity: challenging work, organizational encouragement, supervisory encouragement, work group encouragement, freedom, and a lack of organizational impediments.

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 Correct. Jim should ensure that all the employees are committed toward the goal. The second step in planning is to develop commitment to goals. Goal commitment is the determination to achieve a goal.

Which of the following is the first step in the process of management by objectives?

Discussing possible goals Correct. Management by objectives is a four-step process in which managers and their employees (1) discuss possible goals; (2) collectively select goals that are challenging, attainable, and consistent with the company's overall goals; (3) jointly develop tactical plans that lead to the accomplishment of tactical goals and objectives; and (4) meet regularly to review progress toward accomplishment of those goals.

_____ is a mechanism for gathering information about performance deficiencies after they occur.

Feedback control Correct. Feedback control is a mechanism for gathering information about performance deficiencies after they occur.

_____ is a mechanism for gathering information about performance deficiencies before they occur.

Feedforward control Correct. Feedforward control is a mechanism for gathering information about performance deficiencies before they occur.

_____ is a psychological state of effortlessness, in which you become completely absorbed in what you are doing and time seems to pass quickly.

Flow Correct. Flow is a psychological state of effortlessness, in which you become completely absorbed in what you are doing and time seems to pass quickly. When flow occurs, who you are and what you are doing become one.

Gamapro, a company that manufactures gaming devices, has launched a new gaming console along with a new set of games for the new version of the console. However, the games designed for the previous versions of the consoles can also be used on the new console because of backward compatibility. Which of the following concepts does this scenario best illustrate?

Generational change Correct. This scenario best illustrates generational change. Generational change is change based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology.

_____ are standing plans that indicate the specific steps that should be taken in response to a particular event.

Procedures Correct. Procedures are standing plans that indicate the specific steps that should be taken in response to a particular event.

_____ occurs when a group member must wait to share an idea because another member is presenting an idea.

Production blocking Correct. Production blocking occurs when a group member must wait to share an idea because another member is presenting an idea.

Which of the following is true of the S-curve pattern of innovation of a product?

A flat slope indicates that increased effort brings only small improvements in technological performance. Correct. A flat slope in the S-curve pattern of innovation of a product indicates that increased effort, in terms of money or research and development, brings only small improvements in technological performance. Fortunately, as the new technology matures, researchers figure out how to get better performance from it.

Generational change is a change that occurs when incremental improvements are made to a dominant technological design such that the improved version of the technology is fully backward compatible with the older version.

Generational change is a change that occurs when incremental improvements are made to a dominant technological design such that the improved version of the technology is fully backward compatible with the older version. Most computers, for instance, have USB input slots to connect and power USB thumb drives, monitors, or external hard drives used for backup storage.

Which of the following is a strategy for waste prevention and reduction?

Good housekeeping Correct. Good housekeeping is one of the strategies for waste prevention and reduction. It involves performing regularly scheduled preventive maintenance for offices, plants, and equipment.

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 Correct. In this case, Edgar should first identify and define the problem. The first step in rational decision making is identifying and defining the problem.

Which of the following is a benefit of planning?

It gives direction to managerial efforts. Correct. One of the benefits of planning is that it gives direction to efforts by giving a compelling target to shoot for.

Which of the following statements is true of planning?

It intensifies the effort put in by managers and employees. Correct. Planning intensifies effort, persistence, direction, and creation of task strategies. Planning is choosing a goal and developing a method or strategy to achieve that goal.

Which of the following best defines an incremental change?

It is a phase in which companies innovate by lowering the cost and improving the functioning and performance of a dominant design. Correct. An incremental change is a phase in which companies innovate by lowering the cost and improving the functioning and performance of the dominant design. For example, manufacturing efficiencies enable Intel to cut the cost of its chips by one-half to two-thirds during a technology cycle, while doubling or tripling their speed.

Which of the following best defines the General Electric workout?

It is a three-day meeting in which managers and employees from different levels and parts of an organization quickly generate and act on solutions to specific business problems. Correct. It is a three-day meeting in which managers and employees from different levels and parts of an organization quickly generate and act on solutions to specific business problems. On the first morning, the boss discusses the agenda and targets specific business problems that the group will solve.

Which of the following best defines results-driven change?

It is the change created quickly by focusing on the measurement and improvement of outcomes. Correct. Results-driven change is the change created quickly by focusing on the measurement and improvement of results. Another advantage of results-driven change is that managers introduce changes in procedures, philosophy, or behavior only if they are likely to improve measured performance.

Which of the following best defines technological discontinuity?

It is the phase of an innovation stream in which a scientific advance or unique combination of existing technologies creates a significant breakthrough in performance or function. Correct. Technological discontinuity is the phase of an innovation stream in which a scientific advance or unique combination of existing technologies creates a significant breakthrough in performance or function.

Which of the following is an advantage of the balanced scorecard?

It minimizes the chances of suboptimization. Correct. One major advantage of the balanced scorecard approach to control is that it minimizes the chances of suboptimization, which occurs when performance improves in one area at the expense of decreased performance in others.

Which of the following statements is true of technological lockout?

It occurs when a new dominant design prevents a company from competitively selling its products. Correct. Technological lockout refers to the inability of a company to competitively sell its products because it relies on old technology or a nondominant design.

Which of the following statements is true of feedforward control?

It provides information about performance deficiencies by monitoring inputs rather than outputs. Correct. In contrast to feedback and concurrent control, which provide feedback on the basis of outcomes and results, feedforward control provides information about performance deficiencies by monitoring inputs rather than outputs.

_____ are responsible for developing operational plans.

Lower-level managers Correct. Lower-level managers are responsible for developing and carrying out operational plans.

_____ is the regulation of workers' behavior and decisions through widely shared organizational values and beliefs.

Normative control Correct. Normative control is the regulation of workers' behavior and decisions through widely shared organizational values and beliefs.

Planning is choosing a goal and developing a method or strategy to achieve that goal.

Planning is choosing a goal and developing a method or strategy to achieve that goal. See 5-1: Benefits and Pitfalls of Planning

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?

Rules and regulations Correct. This scenario exemplifies rules and regulations. Rules and regulations describe precisely how a particular action should be performed.

_____ occurs when performance improvement is attained in one part of an organization but only at the expense of decreased performance in another part.

Suboptimization Correct. Suboptimization is performance improvement in one part of an organization but only at the expense of decreased performance in another part.

The main objective of______________ is to keep options open by making small, simultaneous investments in many alternative plans.

The main objective of options-based planning is to keep options open by making small, simultaneous investments in many alternative plans.

Which of the following is an error that managers make in the refreezing phase?

They declare victory too soon. Correct. Declaring victory too soon is a tempting mistake in the refreezing phase. Managers typically declare victory right after the first large-scale success in the change process.

Economic value added (EVA) is the same thing as profits.

alse Correct. EVA is not the same thing as profits. It is the amount by which profits exceed the cost of capital in a given year.

During design competition, _____.

an older technology usually improves significantly in response to the competitive threat from the new technologies Correct. During design competition, the older technology usually improves significantly in response to the competitive threat from the new technologies. This response also slows the changeover from older to newer technologies.

Once a strategic objective has been accomplished, a new one should be chosen.

false Incorrect. Once a strategic objective has been accomplished, a new one should be chosen.

Baked Delights is a startup bakery. To set up its own business standards, it recently collected data on the quality and pricing of the products of Sweet Tooth, the largest and most popular bakery in the region. This is an example of _____.

benchmarking Correct. This is an example of benchmarking. Benchmarking is the process of identifying outstanding practices, processes, and standards in other companies and adapting them to one's company.

Gigi, the owner of Café Mantra, gives small rewards—free movie tickets—to employees who regularly come to work on time and complete the tasks assigned to them. Employees who break rules or deviate from the company policy, however, often get a cut in their performance-linked incentives. Gigi is using _____ with her employees.

bureaucratic control Correct. Gigi is using bureaucratic control with her employees. Bureaucratic control is top-down control, in which managers try to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures.

Joanna is the manager of a luxury hotel. All her team members are required to follow a code of conduct. If they do so consistently, they are awarded an appreciation certificate. However, if they fail to do so, Joanna imposes a fine on them, which is later deducted from their salary. In this scenario, Joanna is using _____.

bureaucratic control Correct. In this scenario, Joanna is using bureaucratic control with her employees. Bureaucratic control is top-down control, in which managers try to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures.

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 _____.

c-type conflict Correct. In the given scenario, the conflict among the senior members at Clockence best exemplifies c-type conflict. In c-type conflict, group members disagree because their different experiences and expertise lead them to view the problem and its potential solutions differently.

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 _____.

c-type conflict Correct. In the given scenario, the conflict among the senior members best exemplifies c-type conflict. In c-type conflict, group members disagree because their different experiences and expertise lead them to view the problem and its potential solutions differently. C-type conflict is also characterized by a willingness to examine, compare, and reconcile those differences to produce the best possible solution.

In the context of organizational development, the purpose of large-system interventions is to:

change the character and performance of an organization, business unit, or department. Correct. The purpose of large-system interventions is to change the character and performance of an organization, business unit, or department. Sociotechnical systems are interventions designed to improve how well employees use and adjust to the work technology used in an organization.

Technological substitution occurs when:

customers purchase new products to replace older technologies. Correct. Technological substitution occurs when customers purchase new technologies to replace older technologies. For example, just twenty years ago, nearly all phone calls were made via hardwired landline telephones. But, according to the U.S. National Health Interview Survey, 52.1 percent of U.S. homes do not have landline phones. That's up from 17 percent in 2008.

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 _____.

distal goal Correct. In the given scenario, Gordop's goal of becoming the market leader in the sedan category represents a distal goal. Distal goals are long-term or primary goals.

Self-control is a control system in which everyone gets to do whatever he or she wants.

false Correct. In self-control, or self-management, leaders and managers provide workers with clear boundaries within which they may guide and control their own goals and behaviors.

Output control measures what managers and workers do.

false Correct. Instead of measuring what managers and workers do, output control measures the results of their efforts.

The compression approach to innovation assumes that innovation is occurring within a highly uncertain environment and that the key to fast product innovation is to use intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding.

false Correct. The compression approach to innovation assumes that incremental innovation can be planned using a series of steps and that compressing those steps can speed innovation. The compression approach to innovation has five aspects: planning, supplier involvement, shortening the time of individual steps, overlapping steps, and multifunctional teams.

The first step in planning is to develop effective action plans.

false Correct. The first step in planning is to set goals. The third step in planning is to develop effective action plans.

Sabrina is a language trainer at a telecommunications company. Every time her trainees fail to achieve good grades in their practice exercises, she gives them assignments to work at home. In this case, Sabrina is using _____.

feedback control Correct. In this case, Sabrina is using feedback control. Feedback control is a mechanism for gathering information about performance deficiencies after they occur.

Once a company compares its actual performance to performance standards, the next step it should take in the control process is to:

identify performance deviations. Correct. Once a company compares its actual performance to performance standards, the next step it should take in the control process is to identify performance deviations, analyze those deviations, and then develop and implement programs to correct them.

In the context of organizational development, the purpose of person-focused interventions is to:

increase interpersonal effectiveness by helping people to become aware of their attitudes. Correct. A person-focused intervention is intended to increase interpersonal effectiveness by helping people to become aware of their attitudes and behaviors and to acquire new skills and knowledge. It is an intervention designed so that a formal helper listens to managers or employees and advises them on how to deal with work or interpersonal problems.

Which of the following statements is true of resistance to change?

it decreases when change efforts receive significant managerial support. Correct. Resistance to change decreases when change efforts receive significant managerial support. Managers must do more than talk about the importance of change, though. They must provide the training, resources, and autonomy needed to make change happen.

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 _____.

maximizing Correct. In the given scenario, Carl is most likely maximizing. In theory, fully rational decision makers maximize decisions by choosing the optimal solution.

JBC Customs only hires people who are curious and eager to learn as its managers believe that those are the two traits every employee needs to have if they want to contribute anything of value to the company. Every applicant is carefully screened, and only those applicants who have these two traits are chosen to proceed further in the hiring process. In this scenario, JBC Customs is using _____.

normative control Correct. In this scenario, JBC Customs is using normative control. Normative control is the regulation of workers' behavior and decisions through widely shared organizational values and beliefs.

Lia runs a day care center. She is very particular about the kind of attention her staff lends to the children who come to the day care center. She hires employees who love children and are capable of taking care of them with utmost patience. Her employees are attentive, proactive, and sensitive to the needs of the children. This scenario illustrates that Lia uses _____.

normative control Correct. This scenario illustrates that Lia uses normative control. Normative control is the regulation of workers' behavior and decisions through widely shared organizational values and beliefs.

A local plumbing company installed global positioning satellite (GPS) tracking devices in all its trucks to ensure that employees were going on service calls and not running personal errands. This is an example of _____.

objective control Correct. This is an example of objective control. Objective control is the use of observable measures of employee behavior or output to assess performance and influence behavior.

A _____ is a gap between a desired state and an existing state.

problem Correct. A problem exists when there is a gap between a desired state (what managers want) and an existing state (the situation an employee is actually facing).

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 _____.

procedures Correct. The standing plans in the given scenario can be referred to as procedures. Procedures are standing plans that indicate the specific steps that should be taken in response to a particular event.

To determine whether control is worthwhile, a company must consider its _____.

regulation costs Correct. To determine whether control is worthwhile, managers need to carefully assess regulation costs, that is, whether the costs and unintended consequences of control exceed its benefits.

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 Correct. Daniel is satisficing, which is choosing a "good-enough" alternative.

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 Correct. In this scenario, the set of methods used to deal with the technical issues represents a standing plan. Standing plans are used repeatedly to handle frequently recurring events.

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 Correct. In the given scenario, Kyle is most likely creating a tactical plan. Middle management is responsible for developing and carrying out tactical plans to accomplish the organization's strategic objective. Tactical plans are plans created and implemented by middle managers that direct behavior, efforts, and attention over the next six months to two years.

Customer defections have a great effect on profits.

true Correct. Customer defections is a performance assessment in which companies identify which customers are leaving and measure the rate at which they are leaving. Hence, they have a great effect on profits.

Planning encourages persistence even when there may be little chance of short-term success.

true Correct. Planning encourages persistence even when there may be little chance of short-term success.

Research indicates that the effectiveness of goal setting can be doubled by the addition of feedback.

true Correct. Research indicates that the effectiveness of goal setting can be doubled by the addition of feedback.

Standards can be determined by listening to customers' comments and complaints.

true Correct. Standards can be determined by listening to customers' comments, complaints, and suggestions or by observing competitors.

In terms of change tools and techniques, the General Electric workout is a special kind of results-driven change.

true Correct. The General Electric workout is a special kind of results-driven change. The workout involves a three-day meeting that brings together managers and employees from different levels and parts of an organization to quickly generate and act on solutions to specific business problems.