MGMT Test 2

Of the strategic management functions, which is considered the most fundamental? a. Executing b. Analyzing c. Controlling d. Planning e. Leading

D

Riley is a manager at the Tinker Tools. She is expected to make decisions that are in the organization's best economic interests. Her decisions should be based on which of the following models? a. The administrative model of decision making b. The garbage can model of decision making c. The scientific management model of decision making d. The classical model of decision making e. The humanistic model of decision making

D

When top executives work with managers in major divisions or departments to develop their own goals and plans, it is known as _____ planning. a. interdepartmental b. crisis c. focus d. decentralized e. competitive

D

Which of the following is NOT one of the benefits of MBO? a. Performance can be improved at all company levels. b. Employees are motivated. c. Efforts are focused on activities that will lead to goal attainment. d. Operational goals are able to displace strategic goals. e. Individual and department goals are aligned with company goals.

D

Which of these is true about the cash cow? a. It generates tremendous profits in a rapidly growing industry. b. It has a small market share in a rapidly growing industry. c. It has a small market share in a slow growth industry. d. It has a large market share in a slow growth industry. e. It is generally a dead business that should be divested.

D

The confusion and frustration caused by the dual chain of command is a major problem of the matrix structure. a. True b. False

a

The distinctive feature of the project manager position is that the person is not a member of one of the departments begin coordinated. a. True b. False

a

The framework in which the organization defines how tasks are divided, resources are deployed and departments are coordinated is called organizational structure. a. True b. False

a

The pure functional structure is appropriate for achieving internal efficiency goals. a. True b. False

a

Which of the following strategies involves rewarding an employee's innovation? a. Cost leadership b. Differentiation c. Focus d. Internal growth e. Liquidation

B

"We respect our employees and value their diversity" is an example of a statement you are most likely to find in the organization's: a. mission. b. strategic goals. c. tactical goals. d. strategic plans. e. tactical plans.

A

. Mingles, Inc. concentrates its efforts on its target market of 18 to 25 year olds. It is using a(n) _____ strategy. a. focus b. differentiation c. cost leadership d. multidomestic e. universal

A

Administrative and political decision making procedures and intuition have been associated with high performance in unstable environments in which decisions must be made rapidly and under more difficult conditions. a. True b. False

A

Bierderlack has a policy that states that more than three absences in a six-month period shall result in a suspension. Colleen, the manager, has just decided to suspend one of her shift employees for violating this policy. This is an example of: a. a programmed decision. b. a nonprogrammed decision. c. an insignificant decision. d. poor management. e. personal grudge.

A

Brainstorming uses a face-to-face interactive group to spontaneously suggest a wide range of alternatives for decision making. a. True b. False

A

Evidence shows that people who make poor decisions under the influence of strong emotions tend to continue that behavior in the future. a. True b. False

A

Good intuitive decision making is based on an ability to recognize patterns at lightning speed. a. True b. False

A

Groupthink refers to the tendency of people in groups to suppress contrary opinions. a. True b. False

A

Managers with a(n) _____ style may make decisions that help others achieve their goals. a. behavioral b. conceptual c. directive d. analytical e. classical

A

Melissa is a manager at InStylez Clothing. Her job is very complex and she feels that she does not have enough time to identify and/or process all the information she needs to make decisions. Melissa's situation is most consistent with which of the following concepts? a. Bounded rationality b. The classical model of decision making c. Satisficing d. Brainstorming e. Scientific management

A

Most bad decisions are errors in judgment that originate in the human mind's limited capacity and in the natural biases of the manager. a. True b. False

A

People who prefer simple, clear-cut solutions to problems use the directive style. a. True b. False

A

Point-counterpoint is a decision-making technique in which people are assigned to express competing points of view. a. True b. False

A

Risk propensity refers to the willingness to undertake risk with the opportunity of gaining an increased payoff. a. True b. False

A

Satisficing behavior occurs when we choose the first solution alternative that satisfies minimal decision criteria regardless of whether better solutions are expected to exist. a. True b. False

A

Step one in the managerial decision-making process is recognition of decision requirement. a. True b. False

A

The approach that managers use to make decisions usually falls into one of three types - the classical model, the administrative model, and the political model. a. True b. False

A

Trend management is looking at trends and discontinuities and imagining possible alternative futures. (TF)

False

When managers base decisions on what has worked in the past and fail to explore new options, they are: a. perpetuating the status quo. b. being influenced by emotions. c. being overconfident. d. justifying past actions. e. seeing what they want to see.

A

Which of the following defines a technique that uses a face-to-face group to spontaneously suggest a broad range of alternatives for decision making? a. Brainstorming b. Groupthink c. Point-counterpoint d. Brainwriting e. Devil's advocate

A

. A blueprint specifying the resource allocations schedules, and other actions necessary for attaining goals is referred to as a(n): a. goal. b. plan. c. mission. d. vision. e. objective.

B

. The behavioral style is often adopted by managers who like to consider complex solutions based on as much data as they can gather. a. True b. False

B

Alabama Airlines has three planning specialists who help division managers develop their own division plans. Serving as consultants to the divisions, the planning specialists give advice about strengths, weaknesses, opportunities, and threats. Alabama Airlines is utilizing what approach to the planning function? a. Centralized planning department b. Decentralized planning staff c. Planning task force d. Centralized planning committee e. TQM

B

Double Click, Inc. has a number of strategic business units. Their hand-held computer unit has a large market share in this rapidly growing industry. Their hand-held computer business would be classified as: a. a dog. b. a star. c. a question mark. d. a cash cow. e. stuck in the middle.

B

Examples of nonprogrammed decisions would include the decision to: a. reorder supplies. b. develop a new product or service. c. perform routine maintenance on one of the machines in manufacturing. d. terminate an employee for violation of company rules. e. fill a position.

B

Fred has been assigned to conduct a SWOT analysis for his organization, Acme, Inc. As part of this assignment, Fred will: a. conduct an external wage survey. b. search for the strengths, weaknesses, opportunities, and threats that impact his firm. c. choose a grand strategy for his firm. d. do a cost/benefit analysis. e. develop a mission.

B

Making a choice is the most significant part of the decision-making process. a. True b. False

B

Managers will frequently look for new information that contradicts their instincts or original point of view. a. True b. False

B

Most people underestimate their ability to predict uncertain outcomes. a. True b. False

B

Organizing defines what to do while strategy defines how to do it. a. True b. False

B

Sarah is a middle manager at Stylin' Sneakers Corporation. She is most likely responsible for the achievement of _____ goals. a. operational b. tactical c. strategic d. lower-level e. top-level

B

The formulation stage involves the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out. a. True b. False

B

The most effective managers are consistent in using their own decision style rather than shifting among styles. a. True b. False

B

The planning process begins with which of these? a. The development of operational goals b. The development of a mission statement c. Communication of goals to the rest of the organization d. A company-wide meeting e. Brainstorming

B

Two employees in Stacey's department quit, which is normal for her department. She is faced with the decision to fill these positions. This would be considered a nonprogrammed decision. a. True b. False

B

When considering decisions, the mind often gives disproportionate weight to the last information it receives. a. True b. False

B

. All of the following are cognitive biases that can affect manager's judgment, except: a. being influenced by initial impressions. b. justifying past decisions. c. seeing what you don't want to see. d. perpetuating the status quo. e. overconfidence.

C

. Darren set goals for each of his employees. Each employee ended up with at least twenty-five goals. This process violates which of the following criteria for effective goals? a. Specific and measurable b. Challenging but realistic c. Covers key result areas d. Defined time period e. Linked to rewards

C

A long-term time frame is most closely associated with: a. operational plans. b. tactical plans. c. strategic plans. d. mission plans. e. tactical goals.

C

Genna is collecting data on how well the organization has done since their new strategy was implemented. She is in what stage of the managerial decision making process? a. The generation of alternatives b. Implementation of the chosen alternative c. Evaluation and feedback d. Recognition of the decision requirement e. Selection of desired alternative

C

Shirley works in the human resource department at Turtle Shells, Inc. She believes she is seeing an increase in drinking problems among the workforce. She thinks she needs to investigate further. She is at what stage of the managerial decision making process? a. Diagnosis and analysis of causes b. Development of alternatives c. Recognition of decision requirement d. Evaluation and feedback e. Selection of desired alternatives

C

Where does the information about opportunities and threats comes from? a. An analysis of the organization's internal environment b. A department by department study of the organization c. Scanning the external environments d. Employee grievances e. Financial ratios of the organization

C

Which style is used by people who prefer simple, clear-cut solutions to problems? a. Behavioral b. Conceptual c. Directive d. Analytical e. Classical

C

_____ decisions are associated with decision rules. a. Nonprogrammed b. Unique c. Programmed d. Ill-structured e. Novel

C

_____ refers to the use of managerial tools to direct resources toward the achievement of strategic goals. a. Strategy formulation b. Strategy coordination c. Strategy execution d. Strategy control e. Strategy planning

C

. During the fallout of the global financial crisis of the late 2000s, finance companies had to make important decisions in a highly ambiguous environment. The decision to buyout failed banks could best be described as what type of decision? a. Bounded b. Programmed c. Conventional d. Wicked decision problem e. Irrational decision

D

Bobby, a product manager, wants to increase the market share of his product. He is unsure about how to go about it, not knowing for sure how costs, price, the competition, and the quality of his product will interact to influence market share. Bobby is operating under a condition of: a. risk. b. ambiguity. c. certainty. d. uncertainty. e. brainstorming.

D

Focusing manager and employee efforts on activities that will lead to goal attainment is a benefit of what management method? a. Tactical planning b. Contingency planning c. Single-use planning d. Management by objectives e. Management by walking around

D

Jeff is a top manager at a textile factory. He is developing a crisis plan in the event that the company has a toxic spill or accident. Which of the following should Jeff undertake to prepare for such a crisis? a. Building relationships with neighboring businesses b. Detecting signals from the natural environment c. Polling employees on the likelihood of an environmental disaster d. Designating a crisis management team in the event of an environmental disaster e. Dismantling the company's ties to the external media

D

Managers are considered to have a(n) _____ style when they prefer to consider complex solutions based on as much data as they can gather. a. behavioral b. conceptual c. directive d. analytical e. classical

D

As a top manager, Joanna works with others within her team every day in making important corporate decisions. Her preferred decision-making approach is to generate as many alternatives to problems as possible in a short amount of time. This approach is referred to as: a. groupthink. b. devil's advocacy. c. point-counterpoint. d. escalating commitment. e. brainstorming.

E

Finance managers at Big Bend Inc. made a financial blunder when they solely looked at the previous year's sales to estimate sales for the coming year. Of which management bias is this an example? a. Being influenced by emotions b. Perpetuating the status quo c. Seeing what you want to see d. Justifying past actions e. Being influenced by initial impressions

E

The _____ model closely resembles the real environment in which most managers and decision-makers operate. a. normative b. administrative c. descriptive d. classical e. political

E

The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals is known as a(n): a. goal. b. objective. c. mission. d. vision. e. strategy.

E

The tendency of organizations to invest time and money in a solution despite strong evidence that is not appropriate is referred to as: a. technological decisions. b. collective intuition. c. decision learning. d. team delay. e. escalating commitment.

E

Which of the following is a commonly-cited limitation of planning? a. Plans limit employee motivation and commitment. b. Plans make resource allocation more difficult. c. Plans make it more difficult to measure standards of performance. d. Plans boost intuition and creativity. e. Plans can create a false sense of security

E

. A broad definition of the organization's values, aspiration and reason for being, along with a recognition of the scope and operations that distinguishes the organization refers to a business plan. (TF)

False

. Executives acquire information about external opportunities and strengths from a variety of reports, including budgets, financial ratios, profit and loss statements, and surveys of employee attitudes and satisfaction. (TF)

False

. The BCG (Boston Consulting Group) matrix evaluates SBUs with respect to their business growth rate and geographical location. (TF)

False

Competitive advantage refers to the set of decisions and actions used to formulate and implement strategies. (TF)

False

Cost leadership is a type of competitive strategy with which the organization seeks to distinguish its products or services from that of competitors. (TF)

False

Defining operational goals and plans occurs in the execution phase of the organizational planning process. (T/F)

False

Front-line managers have the final responsibility for strategic planning. (TF)

False

Goals should be easy for employees to feel motivated so that they can achieve them easily, which in turn increases their motivation level. (TF)

False

One of the biggest benefits of planning is that, in turbulent environments, plans create greater organizational flexibility. (TF)

False

Operational plans and goals are those that focus on the outcomes that major divisions and departments must achieve in order for the organization to reach its overall goals. (TF)

False

The CEO of Andre's Autos, Inc. must do all of the planning for the company because that is the way to do things in today's workplace. (TF)

False

The essence of formulating strategy is choosing how the organization will conform to become like its key competitors in the industry. (TF)

False

For companies to operate effectively, the amount of centralization or decentralization should fit the firm's strategy. a. True b. False

a

A desired future state that the individual or organization attempts to realize is a goal. (T/F)

True

Goals are most effective when they are specific, measurable, challenging and linked to rewards. (TF)

True

Goals are typically stated in quantitative terms. (TF)

True

If Renae, manager at Leak Free Roofing, wanted to develop a contingency plan for Leak Free, she would need to look at factors such as new equipment, the economy, and the company workers' compensation cases. (TF)

True

Of executives whose companies had no formal strategic planning process, about half said they were dissatisfied with the company's development strategy. (TF)

True

One of the limitations of setting goals and making plans is that they can get in the way of creativity. (TF)

True

Prevention and preparation are the two stages of crisis management. (TF)

True

Research has shown that strategic thinking and planning positively affect a firm's performance and financial success. (TF)

True

Some companies hire competitive intelligence professionals to scan the external environment and provide data and research on relevant domestic and global trends. (TF)

True

The dog, according to the BCG Matrix, is a poor performer. (TF)

True

The task environment sectors are the most relevant to strategic behavior and include the behavior of competitors, customers, suppliers, and the labor supply. (TF)

True

. Traditional views of organizational design recommend a span of management of about 7 to 10 subordinates per manager. a. True b. False

a

At Fox End, people are grouped together in departments by common skills and work activities, including a sales department and a production department. This is an example of vertical functional approach. a. True b. False

a

Aspects of both functional and divisional structures simultaneously in the same part of the organization are combined in the virtual network approach. a. True b. False

b

Certainty in the environment is usually associated with decentralization. a. True b. False

b

In the divisional approach, coordination across divisions is great whereas coordination within divisions is often poor. a. True b. False

b

Quick response to external changes is an advantage of vertical functional structure. a. True b. False

b

Reengineering basically means preserving the past by establishing the sequence of activities by how work was done. a. True b. False

b

The principle of unity of command suggests that managers within an organization should reach agreement on the goals and objectives of the organization. a. True b. False

b

The trend in recent years has been toward narrower spans of control as a way to facilitate delegation. a. True b. False

b

When an organization uses a differentiation strategy, it strives for internal efficiency. a. True b. False

b