BA 1301 EXAM 2

Allocation of resources, approval of projects, and authorization of budgets are all activities that a manager performs in his or her _____ management role.

decisional

Which of the following is a characteristic of the entrepreneurial personality?

Ambitious

_____ is the settling of a labor-management dispute by having a third party make a binding decision.

Arbitration

_____ is the practice of giving only limited authority and decision-making to lower-level managers.

Centralization

_____ is the process of negotiating labor agreements between union members and management.

Collective bargaining

Which of the following statements about employee compensation is true?

Compensation is closely connected to performance appraisal.

______ is the practice of giving a great deal of authority and decision-making freedom to lower-level managers.

Decentralization

_____ is the process of grouping jobs together so that similar or associated tasks and activities can be coordinated.

Departmentalization

The _____, created by the 1964 Civil Rights Act, investigates and resolves charges of discrimination.

Equal Employment Opportunity Commission

Mandy Ewing has been working as a veterinarian's assistant for almost a year. Her friend recently told that her employee was in violation of the _____ because she was not being paid the minimum wage.

Fair Labor Standards Act

An example of a staff position would be the job of district sales manager with twenty people working for him or her.

False

Collective bargaining is the process of making a binding decision in labor negotiations.

False

Job description refers to the specific location or office where a job is done.

False

Mentoring is a form of off-the-job training.

False

Process departmentalization is a grouping of jobs by activity, such as marketing, finance, and production.

False

Since the development of affirmative action programs, companies no longer require physical examinations as part of the selection process.

False

The first two stages in the selection process are the initial contact and the preliminary interview.

False

The internal labor market is made up of all employees in an industry.

False

The _____ is a 1993 law that requires employers to provide unpaid leave for up to twelve weeks.

Family and Medical Leave Act

Which of the following statements describes one the weaknesses of group decision making?

Group members may pressure others to conform to decrease the possibility of disagreement.

_____ personnel have direct authority about product decisions; ______ personnel give expert advice in specialized areas.

Line; staff

Penny Clovis works as a maintenance supervisor for a large hotel. She is new in her position and the first woman to ever hold this position for this hotel chain. Clovis has become increasingly concerned about negative statements she has overheard like, "Well, Penny's promotion should get the affirmative action people off our back for awhile." According to the definition, does Clovis have a grievance?

NO. She does not have a grievance because there is no contract violation here.

_____ is the attempt to find and attract qualified job applicants in the external labor market.

Recruitment

_____ involves presenting an accurate and positive image of the firm to those it is recruiting for jobs.

Recruitment branding

When Tyree Elliott was hired as a public relations advisor to the CEO of a Fortune 500 company, he welcomed the help he received from Rae Rogers, a senior manager. Rogers was able to show Elliott the places where trouble was likely to occur, the likes and dislikes of the CEO, and how to do the best job possible. Which of the following statements describes what was going on in this situation?

Rogers was assuming the role of a mentor.

_____ is the process of determining which persons in the applicant pool possess the qualifications necessary to be successful on the job.

Selection

Which of the following actions would be deemed illegal by the Occupational Safety and Health Act?

The employer let an employee work without a required steel hat.

Which of the following statements about the management pyramid is true?

The person with the most formal authority is at the top of the pyramid.

A company that uses departmentalization groups jobs under the authority of one manager for the purposes of planning, coordination, and control.

True

A study of the tasks required to do a job well is called a job analysis.

True

An excellent way of putting the informal organization to work for the good of the company is to bring informal leaders into the decision-making process.

True

In deciding how to pay workers, the firm must be concerned with the salaries paid by competitors.

True

One of the most difficult challenges when merging two global companies is uniting the two company's organizational culture.

True

Recruitment is the attempt to find and attract qualified applicants in the external labor market.

True

The informal organization can help the formal organization to achieve its goals.

True

The selection interview is designed to test an applicant's communication ability and motivation.

True

The skills, knowledge, and abilities a person must have to fill a job are spelled out in a job specification.

True

The virtual corporation expands the traditional boundaries of an organization.

True

_____ are groups of employees who share resources and coordinate efforts so as to help members better perform their individual duties and responsibilities. The performance of this group can be evaluated by adding up the contributions of the individual group members.

Work groups

What is another name for a job fair?

a corporate open house

One of the advantages of a narrow span of control is:

a high degree of control

Which of the following factors has an effect on the size of a manager's span of control?

ability of the manager to delegate responsibility

Which of the following factors affects an employee's compensation?

all of the above

One of the advantages of the matrix structure is:

all of these

The final stage in a typical employee grievance procedure is:

arbitration

Which of the following is NOT a commonly used method for departmentalizing a firm?

by managerial level

In a _____ organization, lower-level personnel are not given a chance to develop their decision-making and leadership skills.

centralized

The _____ defines the relationships of authority from one level of organization to the next, from top to bottom.

chain of command

A structure in which authority and responsibility are held by a group of workers rather than a single manager is called a _____ structure.

committee

The disadvantages of group cohesiveness include:

conflict with other work groups in the organization

Which of the following is NOT one of the main activities for a human resource manager?

coordinating marketing and production activities

A team made up of employees from about the same hierarchical level, but different functional areas of an organization is called a:

cross-functional team

American Express is organized into four divisions that cater to businesses, consumers, travelers, and investors. American Express uses _____ departmentalization.

customer

As part of her marketing project, Lily Unruh is studying how Marriott operates. Since she thought it was simply a hotel chain, she was amazed to learn that its food divisions provide food for school cafeterias, airlines, hotels, and fast-food restaurants. Marriott's food divisions are departmentalized by:

customer

Leonora Whatley is the head of the marketing research department for a cosmetics manufacturer. Whatley delegates as much authority as possible to her fourteen subordinates although she still retains ultimate responsibility. Whatley manages a _____ department.

decentralized

The management activity of organizing.

determines, groups, and assigns work activities

One of the three basic functions performed by the Equal Employment Opportunity Commission is:

developing diversity management plans

At your neighborhood Burger King, some employees take and fill orders, others prepare food, a few clean and maintain equipment, and some supervise. This process of dividing work into separate jobs and assigning tasks to workers is called:

division of labor

Human resource management is the process of _____ people in order to achieve organizational goals.

doing all of the above

The first type of training and development a new employee will be exposed to is:

employee orientation

In employee selection, the initial screening consists of two stages. They are the:

employment application form and the preliminary intervie

The person who takes the risk of starting and managing a business to make a profit is called a(n):

entrepreneur

The first step in performance planning and appraisal is to:

establish performance standards

A company with few managerial levels and a short chain of command usually has a wide span of control. This is called a _____ organizational structure.

flat

A ______ is a formal complaint, by an employee or by the union that management has violated some part of the contract.

grievance

Which of the following benefits do unions nearly always stress in an organizing campaign?

grievance procedures

One way to ease the burden of managing a business is to:

hire outside consultants

During a typical employee performance appraisal, the employee's supervisor evaluates the employee's work in terms of:

his or her contribution to the organization

Dottie Beauchamp recently was hired by PetSmart to help recruit, select, and train new employees to work in its stores. Beauchamp has a job in:

human resource management

The purpose of reengineering is to:

identify and abandon the outdated rules and fundamental assumptions that guide current business operations

The informal organization does NOT:

improve salary levels

A(n) _____ organization is a network of connections and channels of communication based on the informal relationships of individuals inside an organization.

informal

An apprenticeship:

is accurately described by all of the above

Wolfgang Reithofer, a human resource manager at an Austrian brick making company, gathers information about various jobs within the company and specifies the skills and knowledge needed to do each job well. Reithofer is responsible for:

job analyses

A _____ is a study of the tasks required to do a particular job well.

job analysis

One of the documents that help human resource planners find the right person for a specific job is a list of tasks and responsibilities required of the job. This document is known as a:

job description

Since Cate Langton was hired in the marketing department of a consumer products manufacturer, she has worked in its public relations department, she has worked in its advertising department, and she has worked to help design collateral sales material and point-of-purchase displays. Next week she will go out on the road as a salesperson. What method of training is Langton's employer using?

job rotation

A _____ is an organization of employees formed to represent workers in their disputes with management over wages, hours, and working conditions.

labor union

One of the disadvantages of the matrix structure is:

lack of cohesiveness

Management's refusal to let workers enter a plant or building to work is a:

lockout

When the Chili restaurant chain was in financial trouble, its CEO delegated the managers of each of the chain's restaurant to trim costs without sacrificing customer satisfaction. In other words, the individual restaurant managers were:

made accountable

Both Kennedy and LaGuardia Airports have established airport management committees. These structures are advantageous because it:

makes the coordination of activities much easier

Which of the following benefits do unions almost never stress in an organizing campaign?

more job satisfaction

Syntel is a software development company that originated in Michigan. The company once employed 6,500 workers in the U.S. In August of 2006, it reduced its U.S. workforce to 500 who are primarily in the marketing department and hired an Indian company to take charge of its production area. Syntel engaged in:

outsourcing

The Cooke family has worked for various General Motors's divisions for over four decades. Bennett Cooke works at the Cadillac division. Rondella Cooke works at the Buick division. Their son Tyrone works at the Corvette plant, and their daughter Niome works at the Saturn plant. The Cooke family could tell you that GM is departmentalized by:

product

Reisner, Inc., is a small company that manufacturers egg cartons. It has a sales force of fifteen who sell all over the U.S. Last year the company exceeded its predicted sales by almost $25,000. Forty percent of these added sales were divided equally among Reisner's salespeople. Reisner used a(n) _____ to reward its salespeople.

profit sharing plan

Angel investors:

provide funding for start-up businesses

Which of the following is a reason why small business thrives in the United States?

rapidly changing technology

CMI International, a composite plastic manufacturer, wants to improve its involvement with the community, so it has established a Community Involvement Office. To fill the positions within this office, the company will attempt to find and attract qualified applicants from the external labor market. This process is called:

recruitment

Protected classes are:

specific groups that are protected against employment discrimination

Rosa Llewelyn works in the human resources department of a company that manufactures packaging machines. She handles payroll and insurance. Llewelyn is in a(n) _____ position.

staff

The quality control engineer at a petrochemical refinery is in a _____ position.

staff

Decentralization is usually desirable in a company when:

the firm is operating in a dynamic environment

Why do companies engage in outsourcing?

to cut costs and to satisfy labor needs

The _____________corporation is a network of independent companies linked by information technology to share skills, costs, and access to one another's markets.

virtual

Recruitment may involve all of the following EXCEPT:

writing job descriptions

Management needs to be prepared to deal with problems and seize opportunities as they arise. A company often identifies alternative courses of action to be taken if events undercut a strategic or tactical plan. These are called _____ plans.

contingency

Victorinox is the name of the company that manufactures Swiss army knives. As a result of new regulations governing what passengers could carry with them on airplane trips, the company has lost 30 percent of its business. In other companies, this might have led to business failure, but because Victorinox had _____ plans, it was able to continue to operate profitably.

contingency

_____ is at the core of most business failures.

Inadequate planning

Which of the following is NOT one of the five key types of power?

Influential

The manager of a chain of dry cleaning stores gathers the competitions' advertisements for analysis and review. She needs these data to help the chain devise its own advertising strategy. The manager is acting in the _____ role.

informational

The three basic levels of the managerial hierarchy are:

top, middle, and supervisory

The nature of the task and the location of the workers affect the size of a manager's span of control.

True

Performance standards and feedback are essential goals of the organizing function of management.

False

New Bedford College keeps all of its records on computers. When a student registers for a class, the computer is checked to make sure that the student has all of the prerequisites for the class. Last fall, the computer went down during the first day of registration. The registrar's office had to make a _____ decision in which it was decided that the registration period would be extended to an unprecedented five days even though this would mean that classes would have to start later, and there would be fewer class meetings.

nonprogrammed

Strategic planning is long-range, formulated by top management, and made as if the company operated in a vacuum

False

The ability to repair hospital diagnostic machines is an example of a conceptual skill.

False

The first step in setting up a control process is to measure performances.

False

The lowest level of management is engaged in strategic planning process.

False

Unlike large corporations, sole proprietorships do not need a business plan.

False

When workers in a union elect their officers to represent them, it is an example of division of labor.

False

One of the reasons why there has been a dramatic increase in the number of small business startups is rapidly changing technology.

True

The Small Business Administration (SBA) assists small businesses by providing advice in management and financial matters.

True

The line organization is designed with direct, clear lines of authority and communication flowing from the top managers downward.

True

The most common use of a business plan is to persuade lenders and investors to finance the venture.

True

Management involves:

all of the above

One way to ease the burden of managing a business is to hire an outside consultant. Which of the following is an example of an outside consultant that might be useful to a small interior design company?

all of the above

Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information. Early in the development of this high-growth company, Arnold and Bradford attracted a group of investors who provided them with money needed to acquire other Internet companies with similar missions. The investment group is called:

angel investors

The difference between the small business owner and the entrepreneur is that the entrepreneur:

assumes the risk of the business

A mechanistic organization has:

centralized decision making

Mark Ghermizian had quit his job and was looking to start a small business so he could be his own boss. When he read that people spend up to fifteen minutes every day staring at a bathroom stall door, he decided he would find advertisers who wanted to pay to have their advertising messages on bathroom stall doors. Since he has his idea, Ghermizian's next step is to:

choose a form of business organization

Luca Villanova has a major decision to make about how to increase attendance for the professional soccer team he owns. He wants to call his players and coaches together, generate alternatives, and come up with a solution by mutual agreement and vote. Villanova is an example of which style of democratic leader?

Consensual

_____ is the set of attitudes, values, and standards that distinguishes one organization from another.

Corporate culture

_____ financing is a form of financing consisting of funds raised through the sale of stock in a business.

Equity

A positive aspect of opening a small business is that it takes very little management skill because it is small.

False

Due to their size large businesses tend to have greater flexibility than small businesses.

False

Established small businesses are defined as companies that have been in business at least fifteen years and employ between 50 to 500 employees.

False

_____ is the process of guiding the development, maintenance, and allocation of resources needed to attain organizational goals.

Management

Two co-workers at Nortel came up with an idea for renting software over the Internet. Nortel's top management liked the idea and set up a special division called Channelware devoted to taking the idea and making a new product. The establishment of a new company and assigning the employees in the division the task of making an idea a reality requires which management function?

Organizing

_____ is the process of arranging the structures and relationships of human and material resources to carry out an organization's plans.

Organizing

The world's largest bank. Deutsche Bank set as its objective to make its name more recognizable in the United States. The success of its decision to sponsor a PGA golf tournament to accomplish this organizational objective will ultimately depend on which management function?

Planning

The _____ is an agency of the federal government that offers both managerial and financial assistance to small businesses.

Small Business Administration

_____ planning is the creation of long-range, comprehensive objectives and the development of long-term courses of action.

Strategic

An advantage of a small manufacturer over a large manufacturer is the speed with which new products can be introduced to the marketplace.

True

Arranging a firm's human and material resources to carry out plans is called organizing.

True

Dividing up the tasks (division of labor) is an important part of organizing.

True

Entrepreneurs typically are innovators who start companies to pursue their ideas for a new product or service.

True

Inadequate early planning is often at the core of small business failures.

True

Managers must act in interpersonal, informational, and decisional roles.

True

One of the biggest advantages that a small business has over a large business is a greater ability to serve specialized markets.

True

In buying an existing business, the prospective buyer should ask questions about the operation of the business. Which of the following would be an inappropriate question to ask?

What are you going to do with the down payment?

The first step in starting your own business is:

a self-assessment

A well-written business plan should contain:

all of the above

Andy Yocom was looking to start a small business so he could be his own boss. While golfing one day, he saw prime advertising space on the flags on the course. He has decided to call his new venture Invision Golf Group Inc. What should he include in his business plan?

all of the above

Andy Pearson ran PepsiCo Inc. for nearly 15 years, driving revenues from $1 billion to $8 billion. In 1980, Fortune named him one of the 10 toughest bosses in the United States. Pearson was singled out for the relentless demands that he put on his people. As one employee put it, Pearson's talents were often "brutally abrasive." Every year, without hesitation, he fired the least productive 10% to 20% of his workforce. Pearson used a(n) _____ leadership style.

autocratic

In order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his employees. Siegel used a(n) _____ style to increase Lacoste's sales.

autocratic

Among managers there are three distinctive leadership styles. They are:

autocratic, participative, and free-rein

Which of the following is NOT one of the advantages of owning a small business?

avoidance of taxes

Jack Welch, former CEO of General Electric, was known by his employees as "Bloody Jack" because of the downsizing and restructuring he insisted the company do if its various departments were unable to achieve organizational goals. Knowing this nickname, you can assume that Welch used _____ power to accomplish his goals for GE.

coercive

The three types of participative leaders are:

consensual leaders, democratic leaders, and consultative leaders

Asan Linhoud has a major decision to make regarding whether to create a new sales territory or simply add customers to existing territories. He asks for suggestions from his sales reps but will make his own decision. This style of leadership is called:

consultative

After graduating from college, Joseph Tantillo decided to start a retail Web site that specializes in personalized Greek apparel. To fund his Web site, he borrowed money from his parents (who expect to be repaid with interest). In other words, he used _____ financing.

debt

Jill Hansom borrowed $40,000 from a credit union to start a company that makes and sells peach salsa. Hansom used _____ financing.

debt

The two forms of business financing are _____ (borrowed funds) and _____ (ownership funds).

debt; equity

Specialization refers to the:

degree to which tasks are subdivided into smaller groups

As an informational manager, Lia Morris would do all of the following EXCEPT:

direct and counsel subordinates in daily activities

Navim Jain sold stock to investors in order to finance Sparkart, LLC, a company that markets software to track how many times music is played and shared among peers. Jain used _____ financing.

equity

Medical diagnostic equipment specialist Georgiana Rutland was asked to attend a medical conference in which the attendees discussed new uses for laser technology in diagnosing certain types of cancer. Rutland exerted considerable influence over the decisions to adopt the laser technology because of her _____ power.

expert

Once Arnold Patel had decided he wanted to quit working as a Web designer for a large advertising agency and go into some kind of business for himself, he did a self-assessment, which indicated that he had an entrepreneurial spirit. His next step will be to:

find the idea for his business

One of the advantages of owning a small business is:

flexibility

In the management assistance area, the Small Business Administration (SBA) provides all of the following EXCEPT:

free college credit courses in management

In the _____ management role, managers act as liaisons and develop and maintain contacts outside their own departments.

interpersonal

A business plan:

is accurately described by all of the above

Venture capital:

is financing obtained from investment firms that specialize in financing small, high-growth companies

Stuart McFarland is sales manager for a hotel. His job entails leading, motivating, and communicating with employees. McFarland's main management activity is:

leadership

The relatively consistent pattern of behavior that characterizes a leader is called his or her _____ style.

leadership

According to the _____ of the New Mexico Nurses Association, the organization "is committed to advocating for all licensed nurses, promoting lifelong learning, and improving health care for all people."

mission statement

Spring Airlines is a start-up business in China. It uses the management function of ____ to arrange that the three airplanes it operates are where they are supposed to be when they are supposed to be and have the appropriate number of operating personnel.

organizing

A common use of business plans is to:

persuade lenders and investors to finance the venture

GTE modified its telephone operations by creating "customer care centers." The purpose of this change was to identify and abandon outdated rules and fundamental assumptions and act as if it were creating a new company more in line with the needs of today's customers. GTE was using a new concept in business called:

reengineering

Pele Arnaz is a plant foreman for a generator manufacturer. He spends his day carrying out operational plans for the ongoing daily activities of the plant. Arnaz is a _____ manager.

supervisory

According to the Sports Business Journal, Levy Restaurants is the leading purveyor of premium food at major sports venues. It has chefs that specialize in the preparation of various foods working at different sports venues. For the Super Bowl, Levy flew in more than two dozen of its chefs from venues to prepare food to feed the Super Bowl crowd. The chefs had the necessary _____ skills.

technical

All of the following are examples of disadvantages associated with the ownership of a small business EXCEPT:

being your own boss

Kirby Frigo has opened a dog grooming business. Frigo, like other small business owners, probably will experience:

burdensome government regulations

A _____ is a formal written statement that describes in detail the idea for a new business and how it will be carried out.

business plan

A clothing wholesaler that buys most of its inventory from manufacturers in the Caribbean should have a _____ plan in the event a hurricane demolishes the manufacturing facility of one of its principal suppliers.

contingency

According to the Sports Business Journal, Levy Restaurants is the leading purveyor of premium food at major sports venues. Even before the sports event begins, George Scott, a director of the company, will have already walked more than a dozen laps. He will cover several miles in the course of a game, studying each food stand and cart for anything amiss--long lines, empty or messy condiment stations, not enough smiles from employees. Scott acts in a(n) _____ role.

informational

When manager Mariah Pitner delivered the company's financial report to local bankers and analysts, she was acting in a(n) _____ role.

informational

The _____ role of a manager consists of relationships with other people as figurehead, leader, and liaison.

interpersonal

Dean Jager is the supervisor of the volunteer staff at the Booth Western Art Museum. He makes the work assignments, determines work schedules, and makes sure the museum uses all its volunteer staff efficiently. Jager is involved in _____ planning.

operational

Top management usually performs all of the following tasks EXCEPT:

direct workers on the assembly line

Andy Yocom saw prime advertising space on the flags on the golf course. He reasoned that any marketing messages would get prominent attention if they were placed on the flags since golfers focus on them when they take their shots. As a result Yocom used his own initiative and money to start Invision Golf Group Inc. Yocom is an example of a(n):

entrepreneur

Jon P. Farmer is the founder of Kolopua Hawaii LLC, a company that markets Pure Hawaiian Air. Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets tourists as they get off the plane in Hawaii. Retailing for about $5 apiece, the bottles are sold at gift shops in Hawaii, as well as to travel agents nationwide who give them to clients. As a(n) _____, Farmer's annual income exceeds $100,000 annually.

entrepreneur

The first step in controlling is to:

establish performance standards

Coca-Cola Enterprises (CCE) is the largest bottler and distributor of Coke products in the world. It is organized around its North America division and its European division. This departmentalization by _____ allows CCE to respond to the demands of different markets.

geography

According to the Sports Business Journal, Levy Restaurants is the leading purveyor of premium food at major sports venues. Levy has fed the masses at the Super Bowl, the Grammys, the Kentucky Derby, and the NBA All-Star Game. It catered last year's World Series and the MTV Video Music Awards, plus hundreds of regular-season games of football, baseball, basketball, hockey, and NASCAR races. So when the company purchased 150 pounds of steak and chicken, eighty pounds of noodles, ingredients for 48 gallons of shrimp bisque, 400 sushi rolls, and 25 pounds of jambalaya and succotash, it was more than likely a _____ decision.

programmed

Hassan Nasrallah, the leader of Hizbullah: grew up very poor but very smart, and although he wears the robes of a minor Shiite cleric, he is a world-class politician. He has been called the most charismatic figure in the Muslim world. Nasrallah exerts _____ power over his followers.

referent

When your boss gives you a raise, he or she is using _____ power.

reward

Which of the following is NOT a reason why small business thrives in the United States?

guaranteed profits

Marc Adler is the owner of Macquarium, a multimillion-dollar communications company that does everything from video productions to creating Web sites to public relations campaigns. Macquarium has done this sort of work for BellSouth and SnapOn Tools. Even though these companies could have prepared their videos and created their Web sites in-house, these tasks were:

outsourced