BUS 100 Exam 2 Chapters 6-10

Probably the most obvious advantage of a matrix structure is that of... A. added flexibility. B. improved motivation. C. improved communication within the organization. D. more personal growth and development of employees. E. lower salary expenses; because people are doing more work, the organization does not need to hire as many people.

A. Added Flexibility.

A group of design engineers for Ford Motor Company spend two months in the summer in the Arizona desert researching fuel performance at extreme temperatures. Ford uses the results of these tests to improve the quality of its automobiles. The group of engineers is engaging in... A. applied research. B. product design. C. basic research. D. design planning. E. horizon planning.

A. Applied Research

A basic difference between line managers and staff managers is that line managers have ___ which staff managers rarely have. A. authority B. expertise C. decision-making skills D. experience E. responsibility

A. Authority

The number of customers that an Outback Steakhouse can serve at one time is the restaurant's... A. capacity. B. product line. C. scope. D. size. E. service refinement.

A. Capacity.

Rockwood International needs to make risky decisions on a daily basis. Therefore, its managers are likely to... A. centralize decision making. B. let lower-level managers make important decisions. C. train lower-level managers to make more decisions. D. decentralize authority. E. centralize rare skills.

A. Centralize Decision Making.

Distinguishing between positions with direct authority and those that are support positions establishes an organization's... A. chain of command. B. span of management. C. degree of centralization or decentralization. D. nature and degree of departmentalization. E. degree of specialization.

A. Chain of Command.

Joel Green has been working at The Bicycle Superstore for about two weeks. This morning he noticed that the store's inventory on bicycle tire repair kits is out, but he is unsure of whom he should report to for approval to place an order for more kits. Joel is unclear about the... A. chain of command. B. degree of specialization. C. level of authority. D. span of management. E. nature and degree of departmentalization.

A. Chain of Command.

An analyst in the corporate finance department at Chase Manhattan Bank has been assigned to an interdepartmental project involving a major client. He must report to two different supervisors, the project manager and the manager of his department. This sort of organizational structure is called a _____ structure. A. network B. matrix C. line D. functional E. hybrid

B. Matrix

Which of the following is a TQM tool? A. Organizing B. Leading C. Benchmarking D. Planning E. SWOT analysis

C. Benchmarking

An organization with a(n) ___ culture is characterized by employees having a high degree of autonomy and flexibility. A. communal B. networked C. informal D. mercenary E. fragmented

E. Fragmented

Employees at a chemical factory are systematically moved every two weeks among three different departments in the organization. This is called... A. job trading. B. specialization. C. departmentalization by function. D. job enlargement. E. job rotation.

E. Job Rotation.

It is important for a manager to understand the _____ of subordinates in order to encourage effective performance. A. control needs B. leadership skills C. standards D. financial needs E. motivations

E. Motivations

A SWOT analysis is an identification and evaluation of a firm's strengths, weaknesses, ___, and threats. A. options B. occasions C. opinions D. occurrences E. opportunities

E. Opportunities

When Taco Bell determines what different food items it will offer on its menu and how many it will offer, it is deciding its... A. capacity. B. design planning. C. product design. D. product life cycle. E. product line.

E. Product Line.

A relatively permanent committee charged with performing some recurring task is called a(n)... A. cluster structure. B. ad hoc committee. C. informal group. D. task force. E. standing committee.

E. Standing Committee.

A computer manufacturer is first divided into the following groups: Home Office/Personal Use, Small Business, Large Business, and Educational Institutions. Within each of these divisions, management is organized into finance, operations, marketing, and human resources. This company is organized first by _____, then by _____. A. function; customer B. customer; function C. product; function D. product; customer E. customer; location

B. Customer; Function

A common characteristic of a centralized organization is... A. democratic decision making. B. decision making by a few top-level managers. C. a flat span of management. D. placing decision making near the workplace. E. authority placed at lower levels.

B. Decision Making by a Few Top-Level Managers.

Which of the following is the objective of purchasing? A. Routinely replenish the stock. B. Ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost. C. Select suppliers. D. Determine the facility's level of output. E. Control inventory and product quality.

B. Ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost.

Product extension and refinement... A. shorten the product life cycle. B. extend the product life cycle. C. are too costly for most firms. D. take place during basic research. E. end the product life cycle.

B. Extend the product life cycle.

A Boeing factory in Everett, Washington, manufactures 787 Dreamliner jet aircraft. What type of layout is most likely in this factory? A. Output B. Fixed-position C. Product D. Process E. Cell-rotation

B. Fixed-position

An organization's most important resource is its _____ resources. A. material B. human C. financial D. information E. technical

B. Human

The process of influencing people to work toward a common goal is... A. motivating. B. leading. C. a sign of an autocratic leader. D. a hands-off approach. E. implementing.

B. Leading.

A small restaurant with wait staff that reports to staff manager who reports to a floor manager who report to the restaurant manager is a clear example of a _____ organizational structure. A. matrix B. line C. line-and-staff D. informal E. network

B. Line

The quantity that customers will demand at the going price is called the... A. economic demand. B. market demand. C. capacity. D. consumer need. E. inventory.

B. Market demand.

Airplanes, crates, and trucks represent _____ resources for Federal Express. A. revenue-producing B. material C. human D. financial E. informational

B. Material

Chris Gomez is a plant manager for National Manufacturing Company. With regard to levels of management, Chris is a(n) _____ manager. A. first-line B. middle C. top D. executive E. functional

B. Middle

Grant is a division manager for a large chemical company. He frequently works to implement the strategies set by the CEO and supervises the activities of the supervisors under him. Grant is a _____ manager. A. top B. middle C. front-line D. first-line E. financial

B. Middle

IBM's principal reason for existing is to earn a profit for its shareholders. The means by which IBM does this is through the manufacture of computers. These two statements describe, respectively, IBM's... A. strategy. B. mission. C. policy. D. tactical plan. E. control process

B. Mission.

Gio is in charge of making sure the raw steel brought into her company's factory is turned into high-quality bearings for sale to customers. Gio is a(n) _____ manager. A. marketing B. operations C. productivity D. middle E. finance

B. Operations

Grouping resources and activities to efficiently and effectively accomplish a result is called... A. planning. B. organizing. C. directing. D. controlling. E. goal setting.

B. Organizing.

Through informal talks with employees, managers realized employees thought their plant would close, resulting in massive layoffs. A few were already seeking other employment. The managers responded promptly and aggressively to this rumor, assuring employees of the health of the corporation and the reasonable security of their jobs. Your managerial know-how tells you that these managers are attempting to... A. ignore inaccurate information because they know the truth eventually will become known. B. respond to inaccurate grapevine information to minimize the damage such misinformation might cause. C. eliminate the grapevine. D. use the grapevine as a managerial tool. E. reduce the credibility of information from the grapevine.

B. Respond to inaccurate grapevine information to minimize the damage such misinformation might cause.

The separation of all organizational activities into distinct tasks and the assignment of different tasks to different people is called job... A. rotation. B. specialization. C. enlargement. D. enrichment. E. organization.

B. Specialization.

The broadest set of plans developed as a guide for major policy setting and decision making is called a(n)... A. management process. B. strategic plan. C. contingency plan. D. mission. E. objective.

B. Strategic Plan.

The more complex and uncertain a company's environment, the more likely it is that the company will... A. decentralize the organization. B. have a split between decentralized and centralized decision making. C. centralize the organization. D. increase the span of control, thus increasing the number of employees on board. E. decrease the span of control, thus decreasing the workforce.

A. Decentralize the Organization.

When a worker has to learn only a specific, highly specialized task, that individual should be able to learn to do it very efficiently. However, this efficiency could eventually become inhibited by job monotony and boredom. This situation could be alleviated through... A. job rotation. B. technical job training. C. job specialization. D. job design. E. assembly-line production.

A. Job Rotation.

The president of Digital Equipment Corporation discovered that his company was having a problem with counterproductive product groups that were working selfishly rather than cooperating with one another. To solve the problem, he combined the company's twelve U.S. product groups into three regional management centers. This solution is referred to as departmentalization by... A. location. B. function. C. product. D. customer. E. objective.

A. Location.

A manager with few subordinates is said to have a... A. narrow span of control. B. flat organizational structure. C. managerial hierarchy. D. matrix structure. E. wide span of control.

A. Narrow Span of Control.

Sami Nguyen is responsible for two departments that continually set conflicting goals. Sami must get involved in _____ to achieve some sort of balance between those goals. A. optimization B. maximization C. planning D. controlling E. organizing

A. Optimization

The period of time over which an operational plan will be in effect is known as a... A. planning horizon. B. fiscal period. C. quality circle. D. process layout. E. research period.

A. Planning Horizon.

A set of activities intended to identify new ideas and technical advances that may result in new goods and services is called... A. research and development. B. operations management. C. design planning. D. product design. E. horizon planning.

A. Research and Development.

Generally speaking, a narrow span of management implies that the height of the organization will be _____; a wide span of management implies that the height of the organization will be _____. A. tall; flat B. tall; sloped C. flat; tall D. short; tall E. long; short

A. Tall; Flat

When Company Tech decides to produce a new product line and determines the desired capacity and use of technology, the next step is to... A. decide how big to build the new factory. B. hire new workers for the facility. C. decide whether to build a new plant or refurbish an existing plant. D. determine which of the company's existing plants is best suited to produce the new product. E. determine what the magnitude of the conversion process will be.

C. Decide whether to build a new plant or refurbish an existing plant.

Planning, organizing, leading/motivating, and controlling make up the... A. four organizational goals every firm wants to achieve. B. step-by-step management procedure. C. four basic functions in the management process. D. process of coordinating people and other resources to achieve the goals of the organization. E. steps taken to achieve an organization's operational plans.

C. Four basic functions in the management process.

The first step in the managerial decision-making process is to... A. evaluate the problem. B. create a problem opportunity. C. identify an opportunity. D. identify a solution to the problem. E. generate alternative solutions to the problem.

C. Identify an Opportunity.

Leadership can best be defined as the ability to... A. identify problems. B. relate to others. C. influence others. D. generate reasonable solutions to problems. E. deal effectively with others.

C. Influence Others.

As an upper-level manager for Microsoft, Rodney is one of many people responsible for allocating organizational resources in order to achieve the key goals of the company. Specifically, Rodney is in charge of collecting and analyzing data on consumer preferences in personal computer design and technology and is thus responsible for what general type of resources? A. Material B. Human C. Informational D. Financial E. System

C. Informational

A corporate culture is generally defined as the... A. manner in which employees interact with each other and with management. B. incorporation of company policies and procedures into employee activities. C. inner rites, rituals, heroes, and values of a firm. D. management philosophy pertaining to customer service. E. informal interaction of employees outside work during nonbusiness hours.

C. Inner Rites, Rituals, Heroes, and Values of a Firm.

Herb Kelleher, long-time chief executive officer of Southwest Airlines, was known for inspiring and motivating his employees. He related well to people within and outside the Southwest Airlines organization. Herb Kelleher had good _____ skills. A. technical B. conceptual C. interpersonal D. interactive E. personnel

C. Interpersonal

A(n) _____ is a type of plan designed to implement tactical plans. A. strategy B. mission C. operational plan D. contingency plan E. management objective

C. Operational Plan

The objective of _____ is to decide on the amount of products or services each facility will produce during a specified period of time. A. design planning B. strategic planning C. operational planning D. capacity planning E. output specification

C. Operational Planning

When all products undergo the same operations in the same sequence, a(n) _____ is used. A. product design B. product layout C. process layout D. output layout E. fixed layout

C. Process Layout

When different sequences of operations are required for creating small batches of different products, the type of design or layout used is the... A. product design. B. product layout. C. process layout. D. quota layout. E. output layout.

C. Process Layout.

In a shoe manufacturing plant, all shoes undergo the same operations in the same sequence. The shoes flow from one workstation to the next. This is a(n) _____ layout. A. output B. fixed-position C. product D. process E. work-cell

C. Product

Steinway, a company that produces concert quality grand pianos, has ivory in storage waiting to be made into piano keys. This ivory is classified as... A. finished-goods inventory. B. materials requirements planning. C. raw-materials inventory. D. work-in-process inventory. E. raw supplies.

C. Raw-Materials Inventory.

The American economy is now characterized as a(n) _____ economy. A. industrial B. centralized C. service D. stagnant E. bureaucratic

C. Service

The various tasks in IBM's manufacturing plant are arranged so that one worker draws the wiring, another strengthens the wires, a third cuts them, a fourth inserts them, and a fifth seals them together. This is an example of job... A. rotation. B. redesign. C. specialization. D. enrichment. E. enlargement.

C. Specialization.

A committee created to investigate a major problem or pending decision is called a(n)... A. ad hoc committee. B. standing committee. C. task force. D. work team. E. venture committee.

C. Task Force.

Today approximately __ percent of American workers are employed in service industries. A. 28 B. 47 C. 62 D. 86 E. 94

D. 86

Most large organizations use... A. departmentalization by product. B. departmentalization by location. C. departmentalization by customer. D. a combination of departmentalization bases. E. no departmentalization.

D. A Combination of Departmentalization Bases.

A situation in which people do most of the work is called... A. a quality circle. B. quality control. C. design planning. D. a labor-intensive technology. E. a capital-intensive technology.

D. A labor-intensive technology.

If Southwest Airlines closely evaluates the products and processes of United Airlines with the intent of improving quality among their own products and practices, Southwest is using... A. SWOT analysis. B. long-term strategy. C. partnering strategy. D. benchmarking. E. goal establishment

D. Benchmarking.

A manager who has the ability to see the big picture of an organization and to understand how the various parts of the organization can fit together has _____ skills. A. leadership B. technical C. interpersonal D. conceptual E. decisional

D. Conceptual

Mark left his position as a manager of a Target store after two years. He complained of being burned out from having to fulfill too many roles and tasks for one position. Mark probably never learned to use the tool of... A. segmentation. B. decentralization. C. control. D. delegation. E. centralization.

D. Delegation.

When Dell decided to produce and market an affordable personal computer, it had to consider a number of issues: what the computer would look like, where and how it would be produced, what options it would include, and so on. Supplying answers to these questions is part of... A. operational planning. B. basic research. C. applied research. D. design planning. E. scheduling.

D. Design Planning.

As Kyle conducts his annual evaluations of his employees, he notices that MariElena and Debbie have both been less productive since they were relocated in the same department. Kyle is in what stage of the managerial decision-making process? A. Generating alternatives B. Conducting evaluations C. Selecting an alternative D. Identifying the problem or opportunity E. Implementing and evaluating the solution

D. Identifying the Problem or Opportunity

Those who are responsible for facilitating the exchange of products between the organization and its customers or clients are _____ managers. A. financial B. operations C. administrative D. marketing E. accounting

D. Marketing

The two managerial functions that compose the process of directing an organization are... A. planning and organizing. B. goal setting and planning. C. leading and organizing. D. motivating and leading. E. planning and leading.

D. Motivating and Leading.

George Brown is a regional sales manager for Unisys, a large manufacturer of computer systems. As such, George is responsible for salespeople throughout the region, and he must interact with them frequently to solve problems. Which of the following descriptions is most characteristic of Unisys and its sales managers? A. Wide span of management control and flat organizational height B. Narrow span of management control and flat organizational height C. Wide span of management control and tall organizational height D. Narrow span of management control and tall organizational height E. Low administrative costs and clear communication

D. Narrow Span of Management Control and Tall Organizational Height

Specific statements detailing what the organization intends to accomplish over a short period of time are called... A. planning statements. B. strategies. C. control statements. D. objectives. E. goals.

D. Objectives.

Managers who create and manage systems that convert resources into goods and services are known as _____ managers. A. administrative B. financial C. marketing D. operations E. human resources

D. Operations

_____ is the arrangement of machinery, equipment, and personnel within a production facility. A. Process layout B. Product layout C. Resource design D. Plant layout E. Design planning

D. Plant layout

An industrial company contacts Caterpillar to design a specific type of equipment for use in its manufacturing facility. If Caterpillar accepts this offer, the two companies will have to create a set of specifications from which the product can be made. This process is called... A. a product line. B. development and implementation. C. design planning. D. product design. E. capacity planning.

D. Product Design.

When Panasonic improves the sound, clarity, and ease of operation offered by its Blu-Ray players, it is... A. shortening its product life cycle. B. extending its basic research. C. redistributing its product. D. refining its existing product. E. reducing the DVD player's functionality.

D. Refining its existing product.

Ford and Xerox are two companies that have begun moving away from strict job specialization to alleviate employee motivation problems. Each company has adopted a job design alternative that involves workers in a wider variety of tasks. The method they have employed is known as job... A. enlargement. B. enrichment. C. generalization. D. rotation. E. substitution.

D. Rotation.

The number of workers who report directly to one manager is called... A. authority. B. accountability. C. responsibility. D. the span of management. E. centralization.

D. The Span of Management.

A manager with many subordinates is said to have a... A. tall organizational structure. B. narrow span of control. C. managerial hierarchy. D. wide span of control. E. matrix structure.

D. Wide Span of Control.

Which of the following products is most likely to require a fixed-position layout? A. Automobile B. Canoe C. Clothing D. Yacht E. Computer

D. Yacht

A situation in which machines and equipment do most of the work is known as... A. high technology. B. quality control. C. a labor-intensive technology. D. an industrial installation. E. a capital-intensive technology.

E. A capital-intensive technology.

Legal services and public affairs are _____ types of jobs, so they do not fit directly into the chain of command. A. specialized B. top management C. authoritative D. voluntary E. advisory

E. Advisory

During the process of operational planning, management must compare market demand with... A. market supply. B. consumer demand. C. planned supply. D. available human resources. E. capacity.

E. Capacity.

American Airlines has established a goal of increasing its profits by 12 percent next year. To ensure that the goal is reached, management monitors profits on a monthly basis. After three months, if profits have not increased by 3 percent, management will take corrective action to get the company on track. By doing so, management is carrying out its _____ function(s). A. planning B. leading and motivating C. goal-setting and planning D. organizing E. controlling

E. Controlling

McDonald's prides itself on its efficiency and value in delivering a product in a very short time. These characteristics can best be defined as McDonald's... A. objectives. B. mission. C. resources. D. opportunities. E. core competencies.

E. Core Competencies.

Since Sears operates in a complex and dynamic environment, its store managers are given significant freedom to run their stores. This indicates that top leaders at Sears... A. centralize decision making. B. deemphasize lower-level management training. C. control their managers tightly. D. deemphasize lower-level management accountability. E. decentralize authority.

E. Decentralize Authority.

Ophelia Sawyer discovered problems in coordinating the work flow going from her department to marketing. To solve the problem, she identified some situations that needed correction and asked employees to submit their suggestions for improvement. After their suggestions were summarized, the employees selected one for implementation. Next, a supervisor was given responsibility and authority to oversee implementation and to keep Ophelia informed. Ophelia's actions exhibit the _____ leadership style. A. entrepreneurial B. hands-off C. existential D. authoritarian E. democratic

E. Democratic

Location, product, function, and customer are common bases for a firm's... A. span of management. B. job design. C. job specialization. D. chain of command. E. departmentalization.

E. Departmentalization.

The ___ leadership style tends to take initiative and be visionary. A. autocratic B. participatory C. consensus D. consultative E. entrepreneurial

E. Entrepreneurial

The television has undergone numerous changes since its introduction. For example, Sony produces basic color televisions and also such innovative electronics as televisions with Blue-Ray players and Internet streaming. This sort of product evolution is referred to as product... A. extension. B. design planning. C. differentiation. D. integration. E. expansion.

E. Expansion.

The two types of corporate culture that have low levels of sociability among employees are... A. networked and communal. B. fragmented and networked. C. family and communal. D. mercenary and networked. E. fragmented and mercenary.

E. Fragmented and Mercenary.

A certain chicken company decides that it will become the market leader in the poultry business in five years with a 40 percent share of the market. This statement would be classified as a(n)... A. objective. B. mission. C. strategy. D. operational plan. E. goal.

E. Goal.

Although Frank is not in top management, he is charismatic and well liked by others in his organization. Other employees often look to Frank to see how he reacts to new policies implemented by top management, and they follow his lead. Frank has _____ leadership in his organization. A. personal B. formal C. informational D. unofficial E. informal

E. Informal

The _____ structure is considered the simplest and the oldest form of organizational structure. A. cross-functional team B. matrix C. formal D. line-and-staff E. line

E. Line

Management can achieve its goals by coordinating what four types of resources? A. Financial, material, organizational, and operational B. Informational, human, controllable, and tangible C. Tangible, intangible, human, and financial D. Human, material, financial, and intangible E. Material, informational, human, and financial

E. Material, informational, human, and financial

An organization chart reveals... A. staff accountability. B. committee assignments. C. informal authority. D. detailed duties of each manager. E. the company's organizational structure.

E. The Company's Organizational Structure.

When VHS VCRs were first introduced, sales were zero. As VCRs started to catch on, sales began to increase more and more rapidly until they peaked. After the peak, sales fell when DVD players took over that market with VCR sales almost non-existent now. This pattern is... A. the research and development cycle. B. development and implementation. C. the product line planning and exiting cycle. D. the introduction to decline cycle. E. the product life cycle.

E. The Product Life Cycle.

For a total quality management program to be effective, it must be treated as a top priority by... A. the human resources director. B. line management. C. first-line management. D. middle management. E. top management.

E. Top Management.

If a new company desires to departmentalize in a way that will simplify supervision and facilitate coordination, it will most likely departmentalize by... A. product. B. location. C. worker skill level. D. customer. E. function.

E. function.

A committee was organized at Xerox to study the company's hiring, promotion, and compensation policies. The group will review corporate procedures in these areas for the next six months and disband thereafter. This type of committee is referred to as a(n)... A. standing committee. B. task forcE. C. ad hoc committee. D. integrative team. E. liaison committee.

C. Ad Hoc Committee

A team of engineers at General Motors is in charge of discovering new knowledge that can be used to make automobiles safer and more economical. These engineers are conducting... A. basic research. B. research and development. C. applied research. D. product development. E. research and implementation.

C. Applied Research

Susan was given the responsibility for chairing a campus committee. To complete the delegation process, she should be given the _____ to carry out this responsibility. A. duty B. subordinates C. authority D. skills E. salary

C. Authority

When the management of a large grocery store heard that Walmart might be coming to town, they developed alternative courses of action they could take if their competitive landscape changed. What type of plan did they develop? A. Strategic B. Objective C. Contingency D. Tactical E. Operational

C. Contingency