MGMT Test

A key feature of many companies that have ________ is the use of rolling forecasts, which are created every few months

rejected budgets

A materials requirement planning (MRP) system produces schedules that identify raw materials, parts, and assemblies needed during specified time periods.

true

Change is typically stimulated when something is anticipated to change or actually changes in the environment.

true

Productivity is a measurement of how well an organization is using its resources to produce goods and services.

true

The fundamental notion of process reengineering is that form influences function.

true

The peter principle occurs when employees are promoted to their level of incompetence

true

The supply chain refers to the coordinated system of resources, information, activities, people, and organizations involved in moving a product or service from raw materials to components and into a finished product or service delivered to the end customer.

true

when readily quantifiable criteria do not exist, it becomes extremely important to obtain as much consensus as possible about the way In which performance is to be assessed

true

Within the context of organizations, control involves ________.

regulating activities and behaviors to accomplish specific organizational objectives

After winning a huge contract to build an expressway, AZ Builders Corp. has decided to create a cross-functional team that will be made up of experts from different fields, including civil engineers, architects, and accountants. The company's board of directors also decides to institute a one-month training program for this group in order to help them shape the goals and plans to implement this project. In this example, the focus of change is ________.

staff

________ is a quantitative tool to aid in making decisions concerning how well a process is performing.

statistical process control

Generally, when a company institutes a change to counter that of a rival company, it is making a change in its ________.

strategy

FoodMart Inc. is a grocery supermarket chain with 65 stores in various locations across the country. For the past year, total revenues have been steadily declining, and the management wants to make some changes to try and improve earnings. According to the CEO of the company, shutting down the 10 lowest performing stores should remedy the situation. Which of the following is the strongest counterargument for the above?

A recent analysis by the operations department suggests that implementing a vendor managed inventory system would significantly reduce the operating costs

Arbery Fudge Company, Inc. engages in the production and marketing of fudge candy in the United States. The company believes in continuous improvement and constantly evaluates the effectiveness of the control strategies that the managers use. Which of the following situations would necessitate the use strategic control for evaluation?

The competition in the confectionery market has increased significantly in the recent past and management is planning to revamp its competitive approaches

IBF Industries, Inc. is a leading manufacturer and marketer of skin care and solar filters in the United States. The company is a market leader in the U.S., and the demand for its products has been static over the last five quarters. In order to achieve better growth, the management is now planning to develop its business by entering the Canadian market. Which of the following information, if true, would most support the management's decision to develop the market?

The per capita income and the average purchasing power of the people in Canada have increased by two percent in last six months.

Which of the following is a reinforcing action that could be taken based on the outcomes of performance measurement?

addition of a new product line

As a reason for resistance to change, the term inertia means ________.

being comfortable with the present way of doing things

According to the force field analysis, equilibrium occurs when _____ of change are balanced with ____ of change resulting in a relatively steady state

driving forces; restraining forces

________ is usually the most difficult managerial task in the control process

evaluating and taking corrective action

FALSE: A manager can control without restricting.

false

FALSE: Extensive control measures almost always deflate employee morale and lower profitability, irrespective of the situation.

false

FALSE: In order to acquire another entity, managers are required to conduct a due diligence.

false

FALSE: Most businesses and many other organizations are likely to be insensitive to moves made by their direct competitors, especially those in response to changes in the market or customers' preferences.

false

FALSE: Supervisory structure is a type of strategic control based on the organization's overall approach to utilizing its human resources

false

FALSE: The causes of organizational change originate exclusively from internal forces.

false

When there is more uncertainty in the environment, centralized control becomes ________.

less efficient

Which of the following is an outcome of too much organizational control?

lowered motivation

AOL's shift in strategy from generating revenues via consumer subscriptions to generating revenue via advertising on its website is an example of ________ of the need for change.

reactive recognition

The line managers at Harmony Corp. believe that the introduction of the customer care hotline facility has been a huge mistake. They are overwhelmed by the number of complaints that come in each day, most of which are due to faulty usage and not faulty products. The top executives at Harmony believe that the hotline will prove its worth over time. What inference can be drawn from this scenario?

the dissatisfaction is due to non-immediate results

No hard-and-fast boundaries separate strategic, operational, and tactical controls.

true

At Meridian Inc., employees are given general goals and basic budgets rather than policy manuals. Furthermore, it is expected that they will be strongly dedicated to the goals of the organization. Which control approach does Meridian Inc. use?

commitment

FALSE: The external environment is the least significant factor affecting whether a strategic control system can be set up.

false

Changes in a firm's processes and procedures often come about because of earlier changes in the organization's strategy or structure

TRUE