Principles of Management - Unit Two - Chapters 7-11

Promoting cross-silo cooperation is a major part of coalitional management.

True

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As a department manager, Aoki worked out a plan with her team and helped set goals for each of her employees to increase their productivity. However, each employee ended up with at least 15 goals. Which of the following criteria for effective goal setting did she violate? Goals should be challenging but realistic. Goals should cover only the key result areas. Goals should have a defined time frame. Goals should be specific and measurable.

Goals should cover only the key result areas.

Amy runs a boutique that caters to high-end customers who prefer to have unique clothing designs. She also works as a personal wardrobe stylist for several of her clients. Amy has now opened a manufacturing firm that focuses on designing and producing fabric that is used to make the unique designs. To which type of production technology does the manufacturing firm belong?

Small-batch production

Onyx Stores has a chain of supermarkets in over 40 cities in the U.S. The individual supermarkets generate enough revenue for the organization to open another 20 supermarkets at other locations in some of the cities. In the context of the matrix developed by the Boston Consulting Group (BCG matrix), Onyx Stores can be classified as a _______________.

Star The star has a large market share in a rapidly growing industry. It is important because it has additional growth potential, and profits should be plowed into this business as investment for future growth and profits.

Which of the following is an example of a line department in an organization?

The production team

Managers with an analytical style of decision making like to:

consider complex solutions based on as much data as they can gather.

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The U.S. Internal Revenue Service groups taxpayers into four divisions: wage and investment, small businesses, large businesses, and non-profit and government agencies. What type of organizational structure does this represent?

A customer-based division An alternative for assigning divisional responsibility is to group company activities by geographic region or customer group. For example, the Internal Revenue Service (IRS) structure is strategically designed to provide better information and assistance to different taxpayer groups, such as large corporations, small businesses and the self-employed, and tax-exempt organizations.

What type of standing plan specifies what an organization should do when one of its employees files a grievance?

A procedure

Judy works at the headquarters of an online shoe store. She is a member of the advertising team, which is a team within the marketing department. Which type of department is this?

A staff department Staff departments include all those that provide specialized skills in support of line departments. Staff departments have an advisory relationship with line departments and typically include marketing, labor relations, research, accounting, and HR.

A small start-up in California that sells products online has contracted with a Web designer in the United Kingdom, a manufacturing company in China, a customer-service provider in India, and a legal team in New York to perform its various functions. Which of the following organizational structures is prominent in this scenario?

A virtual network structure The start-up is using a virtual network structure, a type of departmentalization that requires horizontal coordination and collaboration beyond the boundaries of the organization. The virtual network structure means that the firm subcontracts most of its major functions to separate companies and coordinates their activities from a small organization at headquarters.

Soleks is a footwear company. Its target customers are people who prefer to shop in small stores with a limited selection of high-quality footwear. To cater to its customers, the company opens shops in upscale locations and stocks them accordingly. In this scenario, which of the following is Soleks trying to do?

Achieve a competitive advantage

A nonprofit organization has piloted a new approach to designing and building long-term care facilities that take into account the needs of elderly residents. Based on the success of their pilot attempt, the organization has now decided to standardize its construction plans. From now on, all their facilities are going to be similarly built. Which management action does this represent?

Adopting a new standing plan

Senior managers make decisions by doing all of the following except Look for different meanings when faced with a great deal of data Seek a diversity of viewpoints Interact with others Believe that there is one correct solution to a problem

Believe that there is one correct solution to a problem

How would you describe the best type of goal?

Clear and specific

Plymouth Machinery and Tools, a hardware company, has installed a new product management software in their factory locations. The intent is to streamline the supply and distribution processes for increased efficiency and lower costs. It is meant to be used by inventory managers who work the shop floor and assembly line. However, the managers need more information to understand the change. Which of the following change implementation tactics is best suited to be used in this scenario?

Communication and education

In the context of organizational change, which of the following statements is true of disruptive innovations?

Companies that initiate disruptive innovations typically win big.

A _____________________ is composed of workers who belong to different departments in an organization but meet together in an attempt to resolve important organizational problems.

Cross-functional team

__________________is a recent trend and creates opportunities for more meaningful participation by employees in strategy formulation and execution.

Crowdsourcing strategy or "social strategy setting," as it is sometimes called, is a recent trend and creates opportunities for more meaningful participation by employees in strategy formulation and execution. By opening up the process of strategy formulation to all employees, crowdsourcing adds diversity of thought, gets top executives closer to understanding the implications of their choices, and helps to avoid limited-perspective biases of top managers.

Which of the following describes a differentiation strategy? Developing products unique to the market Aiming for internal efficiency Placing employees closer to customers Moving from decentralization to centralization

Developing products unique to the market

A permanent team consists of employees from various functional departments who resolve mutual problems.

False A permanent team is organized in a way similar to a formal department. Each team brings together employees from all functional areas focused on a specific task or project, such as parts supply and logistics for an automobile plant. On the other hand, cross-functional teams are used more specifically for change projects, such as new product or service innovation.

Conflict does not occur within a healthy organization.

False Conflict can occur at any time and place within a healthy organization. Organization development efforts can help resolve interpersonal conflicts, as well as conflicts that are related to growing diversity and the global nature of today's organizations.

Executives acquire information about opportunities and threats to their organization from a variety of reports, including budgets, financial ratios, profit and loss statements, and surveys of employee attitudes and satisfaction.

False Managers obtain external information about opportunities and threats to their organization from a variety of sources, including customers, government reports, professional journals, suppliers, bankers, friends in other organizations, consultants, and association meetings.

Making a choice is the biggest part of the decision-making process.

False Many people assume that making a choice is the major part of decision making, but it is only a part of it. Decision making is the process of identifying problems and opportunities and then resolving them. Decision making involves effort both before and after the actual choice.

The innovation by acquisition strategy recognizes that the cutting edge of innovation often happens in well-established and traditional companies rather than in young, small, entrepreneurial companies.

False The innovation by acquisition strategy recognizes that the cutting edge of innovation often happens with young, small, entrepreneurial companies rather than inside the walls of established firms. An approach to innovation in recent years has been to buy start-up companies in order to obtain the innovative products and services, and often the talent behind them as well.

Executives use strategy maps to keep track of key performance metrics, such as percentage of customer service calls resolved within specified time periods.

False. Business performance dashboards help executives to keep track of key performance metrics, such as sales in relation to targets, number of products on back order, or percentage of customer service calls resolved within specified time periods.

Which of the following is not a reason to set goals? Goal-setting takes too much discipline. Goal-setting helps a manager review a subordinate's progress. Goal setting is necessary in order to assess results. Goal setting will enhance your influence on the job.

Goal-setting takes too much discipline.

The team in charge of innovation in a gaming software company holds a brainstorming session. The team uses Edward de Bono's Six Thinking Hats technique to promote broader thinking. Zachary, a team member, dons a figurative red hat and acts accordingly during the session. Which of the following is a correct description of Zachary's behavior?

He gives emotional responses based on feelings, intuitions, instincts, and hunches.

In the context of the BCG matrix, which is named for the Boston Consulting Group that developed it, which of the following dimensions are associated with the cash cow?

High market share and low growth rate

Rosa was promoted to a management position from her specialist role. During her previous role, she gained firsthand experience of the pros and cons of division of labor. Which action could Rosa take as a manager to overcome the biggest disadvantage of specialization for those reporting to her?

Implement teams to provide greater challenges for employees

Which of the following is true of brainstorming? It means a commitment to make more informed and intelligent decisions. It refers to the tendency of people to suppress contrary opinions. It is highly effective for quickly generating a wide range of alternatives. It minimizes people's tendencies to value favored beliefs and viewpoints.

It is highly effective for quickly generating a wide range of alternatives.

Which of the following is a characteristic of an organizational strategy map?

It shows how an organization's specific goals and plans are linked.

Which of the following illustrates a limitation of planning?

Jake follows through on his work plan but is hindered but an unforeseen event.

Which of the following statements does not reflect position-based leadership? A leader should take charge. Leaders should be able to count on loyalty from their subordinates. Leaders are risk-takers. Leaders should discuss options with subordinates.

Leaders should discuss options with subordinates.

A solar energy manufacturing company is expecting new innovations to change its equipment and processes over the next few years. To achieve this goal, the company provides rigorous training to all its employees that is specific to the new technology. Which of the following actions illustrates that the company's managers know how to keep employees on track toward accomplishing their final goal?

Meeting biannually for evaluating employee progress

Marcia is the top leader of the matrix structure for an international company manufacturing environmental compliance equipment. Which action could she take to resolve conflicts between people in charge of product line goals and country goals?

Meeting with matrix bosses and two-boss employees to work out differences

In the context of change implementation tactics, uses formal bargaining to win acceptance and approval of a desired change.

Negotiation Negotiation uses formal bargaining to win acceptance and approval of a desired change. Negotiation is a more formal means of achieving cooperation.

In the context of organizational change, which of the following statements is true of the horizontal linkage model?

People from all departments meet frequently in teams and task forces to share ideas and solve problems.

The CEO of a company has decided to increase collaboration among employees to increase efficiency and quality. Besides removing physical barriers between employees, which of the following will help the CEO in promoting employee coordination?

Providing training to develop interaction and conflict resolution skill

_________________ means that decision makers choose the first solution alternative that fulfills minimal decision criteria.

Satisficing

Bonnie has set the goal of completing a four-year college degree. This goal should be helpful to her because of all the following reasons except She doesn't want to work under a deadline. She wants to be a teacher. She can seek the help of a tutor because she is having difficulty in her math course. She can adjust her study habits to be sure that she completes her assignments.

She doesn't want to work under a deadline.

Kia has set a new operational goal for her work group to eliminate overtime. What operational plan should Kia implement to achieve this goal?

She should discover daily and weekly scheduling roadblocks. Operational plans identify the specific procedures or processes needed at lower levels of an organization, such as individual departments and employees.

What can simultaneously be considered the best feature and, from some employees' viewpoint, the worst characteristic of stretch goals?

Stretch goals are beyond the current levels of organizational capability.

__________________occurs when organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone.

Synergy

In the context of the three stages of organization development (OD) for achieving behavioral and attitudinal change, which of the following occurs during the refreezing stage?

The impact of new behaviors of individuals is evaluated and reinforced.

Which of the following statements does not reflect nonhierarchical leadership? Accomplishing goals is an integral part of every employee's job. Leaders encourage learning among subordinates. The leader's job is to make decisions and communicate them effectively to subordinates. Leaders believe in making small improvements to change the organization for the better.

The leader's job is to make decisions and communicate them effectively to subordinates.

Which of the following is at the top of an organization's goal hierarchy?

The mission statement

In the context of the BCG matrix that is named for the Boston Consulting Group, which developed it, which of the following statements is true of the question mark?

The question mark has a small market share in a new, rapidly growing industry.

Which concept of good organization does the dual authority structure of a matrix violate?

The unity-of-command concept

Law firms can be found in several places within a city. What is a distinct feature of this type of service provider?

Their output is intangible.

Which of the following statements is true of managers of creative organizations?

They drive out the fear of making mistakes that can inhibit creative thinking.

A functional structure can be thought of as departmentalization by organizational resources.

True

In the context of Porter's five competitive forces, rivalry among competitors is influenced by potential new entrants, the bargaining power of buyers and suppliers, the threat of substitutes, as well as by cost and product differentiation.

True

The classical model of decision making is considered to be normative, which means that it defines how a decision maker should make decisions.

True

Until recently, The Wisdom Den, a national chain of libraries, hired employees to manually manage annual subscriptions and keep a track of the books issued to customers. However, it has now replaced the old method and upgraded to a database software which is fairly simple to use. Although the implementation of the computerized system is certain to make the librarians' job easier, the change has resulted in a lot of resistance from them. Which of the following options is most likely to be the reason behind the resistance and conflict?

Uncertainty

How does the management by means (MBM) approach differ from the management by objectives (MBO) approach?

Unlike MBM, the MBO method makes success or failure to achieve goals part of the appraisal system.

In the context of strategic thinking, which of the following is a difference between for-profit organizations and nonprofit organizations?

Unlike nonprofit organizations, for-profit organizations focus on gaining competitive advantage in the marketplace.

Which of the following is a difference between programmed decisions and nonprogrammed decisions?

Unlike nonprogrammed decisions, programmed decisions are made in response to recurring organizational problems.

Joos-Up is an old food products company that produces fruit juices, jellies, jams, and other such products. It has recently decided to move into the electrical and power fixtures manufacturing sector. In the context of strategy formulation, which of the following does Joos-Up's move illustrate?

Unrelated diversification

New managers make decisions by doing all of the following except Use a directive style. Use discussion to seek solutions Use command-oriented behavior Show their authority

Use discussion to seek solutions

In spite of the numerous pizza outlets in Chicago, Pete's Fast Pizza has zoomed past its counterparts in terms of popularity and sales due to its practice of adding a complimentary calzone and drink to each of its orders. In the context of strategy formulation, which of the following does this unique practice by Pete's Fast Pizza illustrate?

Value creation

Nonhierarchical beliefs are most effective in all of the following work configurations except a traditional hierarchy projects and networks teams bossless organizations

a traditional hierarchy

A global burger chain has tailored its logo, menu, ingredients, and advertisements to the tastes and preferences of the people in the various locations of its outlets. This customization means that the burger chain has adopted a(n) __________.

multidomestic strategy

Sheree oversees the creation of books at a publishing company. She has to coordinate the efforts of designers, editors, typesetters, proofreaders, the marketing department, and several members of other departments. Sheree is a:

project manager

When faced with a problem, Emmanuel likes to gather all the data possible so he can come up with the best possible decision. If a subordinate brings a problem to him, he considers all possible alternatives and makes a decision based on rational data. In the context of personal decision styles, Emmanuel uses the:

analytical style.

Managers who make the judgment bias of perpetuating the status quo will:

base decisions on what has worked in the past without exploring new options.

In the context of personal decision styles, the _________________ is used by people who like to consider a broad amount of information and who tend to solve problems creatively.

conceptual style

Zeus Phones has launched a new cell phone model to keep up with the global "selfie" trend, which involves taking pictures of oneself. The phone has a 13 megapixel front camera with a wide angle lens to include the maximum number of faces. It also includes a timer and a beautification feature to enhance facial features. The selfie phone has now become the latest rage in the cell phone market and has won awards for its unique design. This scenario is illustrative of Zeus Phones's _______________.

core competency

____________________________is used to tackle issues when an organization faces a situation in which its continued existence may be in question.

crisis planning

Reema is a manager at a fast food restaurant. She uses rational methods to solve day-to-day issues and makes quick decisions that supports the needs of the restaurant. Reema encourages her team members to adhere to existing rules and policies when they make their own decisions and come up with simple solutions to problems. In the context of personal decision styles, Reema is a manager who follows a(n) _____________________.

directive style

Flare, an electronics company, created a low-cost, handheld washer that could run on solar-powered battery. The product was also portable and could clean clothes with minimal water usage. This product was initially not seen as a threat by washing machine manufacturers, but it slowly attracted their customers and gained a dominant share in the market. As a result, the traditional washing machine manufacturing companies underwent huge losses and most of them went out of business. In this scenario, the handheld washer is an example of _____.

disruptive innovation

Hamza runs a small restaurant in the city. For the last few months, Hamza has been noticing a dip in the number of diners at the restaurant. Hamza decides to renovate the place and make it more appealing to attract a larger crowd. However, the number of diners remains low. Additionally, the number of take-outs begin to diminish as well. In the context of the BCG matrix (named for the Boston Consulting Group that developed it), Hamza's restaurant can be classified as a(n) __________.

dog

_________________ refers to the tendency that managers and organizations have to continue investing time and money in a solution even when there is strong evidence that it is not appropriate.

escalating commitment

In the _______________ stage of the managerial decision-making process, decision makers gather information that tells them how well the decision was implemented and whether it was effective in achieving its goals.

evaluation and feedback

While developing alternatives during decision making, managers:

generate other possible solutions that will respond to the needs of the situation and correct the underlying causes.

In the context of change implementation tactics, the participation approach:

helps managers understand the differences in perceptions of change among employees. Participation helps managers determine potential problems and understand the differences in perceptions of change among employees. Participation involves users and potential resisters in designing the change.

In the context of change implementation tactics, the coercion approach is used:

in crisis situations when a rapid response is necessary.

Anastasia decides to use most of her savings in opening a café. After a year, she realizes that her café is consistently not making any profits. Instead of closing the café or selling it to a third party, she decides to keep the café open and working in the hope that it will soon become well-known and earn good profits. In the context of the biases that cloud judgment, Anastasia is:

justifying past decisions.

A manager who takes a balanced approach to decision-making does not use logic to make a decision. hesitate to make a decision while angry. take time to reason things out. make quick decisions.

make quick decisions.

In the context of change implementation tactics, a(n) __________________ is a disparity between existing and desired performance levels. PreviousNext

need for change A need for change is a disparity between existing and desired performance levels. To effectively lead change, managers help people feel the need for change rather than just giving them facts and figures.

A small company that manufactures pet food and toys is planning to start a new line of products that is related to pet health care. The company's top managers meet with potential venture capitalists to discuss the investments for a research and development (R&D) setup. In this case, the company is making a _______________

nonprogrammed decision.

The strategic goals of an organization are also called

official goals

Scientists have discovered that the influenza virus often modifies its genetic material and protein structure. In order to tackle the seasonal changes in the influenza virus, vaccine manufacturers have decided to produce a new influenza vaccine every six months. This is an example of a(n):

operational goal

In the context of SWOT analysis, in which SWOT stands for strengths, weaknesses, opportunities, and threats, an organization's growing global product demand and plant modernization are its:

opportunities.

A visual representation of the formal reporting relationships within a firm is called a(n)

organization chart

Angelo has decided to set specific rules for reordering office supplies when inventories reach a particular level. He has made this decision so that his subordinates would not have to constantly ask him when they must place orders to refill the company's stock. In the context of managerial decision making, Angelo is making a:

programmed decision.

A well-established cosmetics company decides to launch a chain of beauty salons across the country. In order to attract a large clientele, these salons will offer premium beauty services and membership benefits. In the context of strategy formulation, this launch is an example of:

related diversification.

Reed is a division head at a multinational corporation (MNC) that specializes in ergonomical chairs and fitness training equipment. Recently, the top management at the MNC has decided to contribute to better employee health and the fitness of at least 10 million people around the world. To realize this goal, Reed breaks down the top management's goals into smaller units and defines specific goals for his division. In this case, Reed is defining a _____.

tactical goal

In the context of change implementation tactics, the participation approach is used when:

users have the power to resist.