Chapter 7 and 8 an 9 HW Craine

The U.S. economy is now driven by

Services

Tactical planning deals with:

Setting annual budgets and deciding on activities to meet strategic objectives

Angelica Canizales is the CEO of Mucho Dinero Enterprises. Sales have dropped for four consecutive years and accountants have reported net losses in each of the last two years. Employees appear discouraged and frustrated. Recently, Angelica met with managers from marketing, production, and finance to listen to their views regarding the company's problems. The managers unanimously agreed that the main problem was a lack of communication among the several functional areas of the business. Each manager felt that the firm could increase quality and customer satisfaction with better interdepartmental communication. Angelica also met with marketing and production employees to get their respective opinions on the problems of the firm. One employee from the production department observed, "We have so many layers of management that it takes forever to make decisions." An employee from marketing complained, "This place is so bogged down with rules and regulations that there is no opportunity to be creative." Several employees shared their opinions regarding their bosses. Specifically, one employee said, "My boss never pays attention to my ideas. He just issues orders and expects me to obey them." Angelica decided, after listening to many comments from managers and employees and also suppliers and customers, that the only way to end Mucho Dinero's slide was to completely rethink the firm's structure and to make radical changes in its organization. She presented her ideas to the board of directors, promising to voluntarily resign if her efforts to reorganize did not return the firm to profitability. Employee complaints that there are too many layers of management and too many rules and regulations suggest that Mucho Dinero is a(n)

bureaucratic organization.

Josie recently took a job in the marketing department for Beachside Bagels and Bakery. After just a few days on the job, Josie learned that the company has many layers of management, and seems to have a rule to cover almost every situation. These conditions suggest that Beachside Bagels and Bakery is a(n)

bureaucratic organization.

centralized authority occurs when decision making is done:

At the top level of management

In order for standards to be useful in the controlling process, they must have certain characteristics. One of these characteristics is that they must be

Attainable

Leadership is a leadership style that involves making managerial decisions without consulting others.

Autocratic leadership

Managing _____ has become a critical managerial function because the increasing rate of change affects all organizations.

change

AN organization structure in which decision-making authority is delatgated as far down the chain of command as possible is an _____ organization.

Decentralized

Companies that allow their managers to make key decisions to cater to local markets are _____.

Decentralized

The first step in the decision-making process is to define the situation. Rank the remaining steps in the process with the next step on top and the last step ranked at the bottom of your list.

Describe and collect needed information Develop alternatives decide which alternative is best Do what is indicated Determine whether the decision was a good one, and follow-up

Functions being divided into areas of specialization such as production, marketing, and finance are examples of which Fayol principle?

Division

the owner of a small lawn-mowing business separates the job function of the business into mowing, edging, and trimming so she can assign the tasks to different workers. What process is exemplified by this action?

Division of labor

CAD CAM CIM Flexible manu Lean manu Mass customization

Dress designer shoe designer Purse designer Motor starters Toyota corporation Dell computers

as businesses expand into the global marketplace, it will become more important for managers to demonstrate

Ease in other cultures Adaptability Foreign language skills

in order to motivate others and create the environment needed to motivate themselves, a leader must

Embrace change communicate a vision establish corporate values

Autocratic leadership is effective in situations such as

Emergencies Working with new, unskilled workers

Which of the following is considered to be an advantage of functional departmentalization?

Employee skills can be developed in depth.

__________ is the term used to describe giving workers the education and tools they need to assume additional decision-making powers.

Enabling

A newer version of MRP that combines computerized functions of all divisions into one database supported by a single integrated software program is referred to as _____ Resource planning or ERP

Enterprise

The benefits of _____ _____ _____ are any department can see the status of an order an any time, shorter time lags between orders and payment, and less staff required to process orders.

Enterprise resource planning

ISO 14001 is a system that managers a firm's impact on the _____

Environment

Rank the five steps of the control process. The first step on top.

Establishing clear performance standards Monitoring and recording actual performance or results Comparing results against plans and standards communicating results and deviations to appropriate employees taking corrective action when needed and providing positive feedback

The steps in the control process include

Establishing clear performance standards monitoring and recording results comparing results to standards taking corrective action

__________ include dealers, who buy products to sell to others, and ultimate customers who buy products for their own personal use.

External customers

Arrangement of resources, including people, to most efficiently produce goods and services is referred to as _____ _____.

Facility layout

Which of the following statements is most accurate?

Facility layout is important for manufacturing plants because facilities layout decisions can have a huge impact on the firm's costs.

A chain of command is a line of authority that moves from the lowest level of the hierarchy to the top.

False

A flat organizational structure is designed to be more responsive to the needs of management.

False

A major advantage of a just-in-time inventory system is that it reduces costs and the effort for both the producer and its suppliers.

False

After management has created a plan of action, the focus turns to the controlling function to recheck and often redo the plan.

False

American companies, like IBM, prefer to stay the course and continue to compete by selling products instead of services.

False

As a result of rapidly changing markets and global differences in consumer tastes, more firms are considering centralized authority.

False

Because of the complex nature of their jobs, top managers spend most of their time developing and using technical skills.

False

Briana is an office manager and consistently has to tell her employees what to do, watch over their tasks, and reprimand those who don't listen to her orders. Briana is a modern manager.

False

Companies that employ lean manufacturing and flexible manufacturing produce better quality products, but have costlier production lines.

False

Conceptual skills refer to the ability of a manager to perform the tasks associated with a specific discipline or department.

False

Departmentalization by function typically increases the cost of doing business.

False

Enabling is the term used to describe the process by which employees recognize and respect the authority of managers to issue orders.

False

External customers are those individuals or units that receive services from other units within the same organization.

False

Fayol's principles suggest that the goals of the firm are less important than the goals of individual workers.

False

Free-rein leaders tend to carefully monitor their subordinates to make sure they are doing the job in the correct way.

False

Including customers and suppliers on cross-functional teams violates the interests of stockholders.

False

Kimber Cross is majoring in operations management at a local university. Unfortunately, the evolution of the U.S. from a manufacturing-oriented to a service-oriented economy means that Kimber will not likely find job openings in her field of study.

False

Managers are most effective when they consistently use the same leadership style with every employee assigned to their work group.

False

Mass customization is a strategy of convincing customers to choose from a relatively small number of alternatives in order to achieve the efficiencies of mass production.

False

Mass production techniques allowed firms to respond quickly to the individual needs of consumers.

False

Materials requirement planning relies on the firm's balance sheet to make sure that the right quantities of finished goods are produced.

False

Operations management planning is concerned with finding the ideal location for a business and also with materials requirement planning. It leaves decisions about purchasing and inventory control to marketing.

False

Ronin is a manager for Luxe Letters, Inc., a firm that designs and manufactures greeting cards, invitations, announcements, and other event material. Ronin spends a lot of his time trying to find the right people for various positions at his company. These efforts are part of the controlling function of management.

False

Since U.S. manufacturing competes on price throughout the world, innovation plays a very small part in the U.S. economy.

False

Staffing is a less important management function today than in the past.

False

The U.S. is still manufacturing intensive. Only 55% of U.S. jobs come from the service sector.

False

The best way to get people to do what a manager wants is for the manager to reprimand those who don't do things correctly.

False

The first step to developing a knowledge management system is to develop the technology to keep information secure.

False

The informal organization is best suited for decision making on big issues.

False

The significance of the critical path on a PERT chart is that it identifies the least costly method of producing a given product.

False

The three basic requirements of production are: (1) creating a finished good, (2) making sure you created it at the lowest cost possible, and (3) selling it.

False

Weber was critical of bureaucrats because he felt they undermined the efficiency of the organization.

False

When considering the issue of facility location, it is important to find an isolated location so that work can get done without interruption from customers.

False

While mass customization works well for producers it is not used in the service sector.

False

Inverted organizations define the role of front-line employees as those workers who follow the orders of top and middle management.

False _ maybe

which of the following are considered to be drivers of organizational change in the evolving business environment?

Faster technological change Pressure to preserve the natural environment More global competition

which of the following is an advantage related to conducting quality control throughout production instead of at the end of the production line?

Finding defects prior to completion saves expensive reources.

the concept of _____-_____ leadership is a leadership style that involves managers objectives and employees being relatively free to do whatever it takes to accomplish those objectives.

Free-Rein

For departments to operate effectively, they must be allocated sufficient resources such as:

Funds Equipment personnel

The ___________ is the nerve center of the informal organization.

Grapevine

which of the following tasks are associated with the leading function of management?

Guiding and motivating employees Clarifying policies to reach objectives

The disadvantages of a line structure for large businesses are:

Having lengthy lines of communication being too inflexible The lack of expertise to solve complex problems.

Which is a benefit of telecommuting?

Less dependence on locating near sourcese of labor Employees are in touch with company and customers right from home Firms may choose less expensive locations

The definition of an ____________________________________________ states: an outline of the fundamental purposes of an organization.

Mission statement

A process layout is used in production when:

Similar equipment and functions are grouped together

CAD/CAM makes it possible to custom-design products to meet the needs of

Small markets; very little increase in cost.

The definition of ______________ states: specific, short-term statements detailing how to achieve the organization's goals.

Objectives

The _____ plan is the department manager's tool for setting daily and weekly standards and schedules to meet the company's tactical objectives

Operational

Converting and transforming resources into goods and services in business in referred to as

Operations management

A(n) __________ is used by an organization to show who is accountable for the completion of specific work and who reports to whom.

Organization chart

The definition of ______ states: listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third.

PMI

Working from home using information technology such as a computer and modem is called:

Telecommuting

the internal customers of a company such as Toyota would include

The payroll department employees Their assembly line employees

If there are several steps in getting the product to its final state, the company may choose to departmentalize by process.

True

Improvements in information technology have permitted companies to increase their span of control.

True

Improvements in technology have significantly increased the quality of products, as well as helped reduce costs.

True

Most of a top manager's time is devoted to conceptual and human relations activities.

True

One difference between managers and leaders is that managers strive to achieve stability while leaders embrace change.

True

Quality control inspections were conducted at the end of the production line in the past.

True

Restructuring involves the redesign of an organization to be more responsive to customers.

True

Six Sigma is a benchmark of quality standards that many product and service industries try to achieve.

True

Some business organizations still follow the 1940s organizational theory of Max Weber.

True

Star Performance, Inc., a sporting good company, and Fairview Community College are interested in following the lead of other companies and implementing criteria that will lead toward receiving the Baldrige Award. As their advisor, you emphasize that focusing on the measurement of customer satisfaction is one important area where both will need to excel.

True

Superstars Soccer Camp recently outsourced its marketing work. This suggests that management at Superstars does not believe that marketing is one of the firm's core competencies.

True

The Cairo Company is organized into departments such as finance, production, marketing, data processing, and accounting. Cairo has chosen to departmentalize by function.

True

A Fayol principle that states each worker is to report to one and only one boss.

Unity of command

A _______ gives the organization a sense of purpose and a set of values that unite workers in a common destiny.

Vision

___________ is the management function that involves setting goals, strategies, and tactics for achieving the organization's goals and objectives.

Planning

Which of the following tasks are associated with the organizing function of management?

Preparing an organizational chart Allocating resources, assigning tasks, and establishing procedures for accomplishing goals staffing the organization Preparing a structure showing lines of authority and responsibility.

When operations serve different customers with differing needs an intermittent _____ layout should be used in production.

Process

An assembly line or product layout is used in production when:

Producing large qualitities of a few types of products

Which of the following statements best describes the distinction between production management and operations management?

Production management involves activities managers perform to help create goods while operations management is a term that involves the activities involved in producing services as well as goods.

Improving _____ means reducing defects before delivery of the product to the customer.

Quality

The present moment or the actual time in which something takes place is called _____ _____.

Real time

The line organization has direct lines of _____ that extend from the top manager to employees at the lowest level of the organization.

Responsibility communication authority

The result of the increase in the rate of change in the business environment from causes such as natural disasters and global competition has been that companies must:

adapt to new technologies change more quickly than ever before

is the term for giving employees the authority to make a decision without consulting the manager and responsibility to respond quickly to customer requests.

empowerment

In a just-in-time inventory system, suppliers

enjoy much lower delivery costs. maybe

The current trend in organizations is to _____ the span to control.

expand

Lean manufacturing ___________ productivity.

increases

For larger businesses the line organization may have the disadvantage of being too _____. Because of this they may be unable to handle complex decisions relating to thousands of products.

inflexible

In the Adapting to Change box, we read that 3D printing can prove to be revolutionary for the medical industry because

it can produce models to help with organ transplants and improved medical imaging.

To reduce the cost of holding too much inventory, many companies have implemented

just-in-time inventory control.

The management function that involves creating a vision for the organization, communicating it to others, and motivating them to achieve goals is _______________.

leading

is creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization's goals and objectives.

leading

The process used to accomplish organizational goals through planning, organizing, leading, and controlling organizational resources is __________.

management

is the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.

management

Adjusting to changing markets is a critical _____ function

managerial

All _____ must have three categories of skills, including, technical skills, human relations skills, and conceptual skills.

managers

A _____ structure, also called a project management structure, sets up teams from different departments, thereby creating two or more intersecting lines of authority.

matrix

At Stevens Manufacturing, workers are organized in teams that combine their efforts to produce complex units of a final product. Stevens is using a facility layout known as a(n):

modular layout.

The advantages of centralized authority in organizations include:

more efficiency

Which of the following is involved in setting work standards and schedules needed to implement the firm's tactical objectives?

operational planning

Clean Sweep Corporation has seen rapid growth during its first five years. While still relatively small, Clean Sweep is now big enough that Sawyer, the firm's CEO, has decided to organize the firm into functional departments. Sawyer can likely expect which of the following to occur?

opportunities for employees to develop their skills in depth

Managers need conceptual skills for which of the following tasks?

planning systems development organizing

The Fayol principle esprit de corps indicates that a spirit of _____ and _____ should be created among people in the firm.

pride and loyalty

The purpose of a PERT network is

to monitor the progress of a multi-step project during its development.

The presentation of an organization's facts and figures so its status is clear and apparent to all stakeholders is _____.

transparency

In manufacturing, one way to compete with cheap labor is to

use robots.

A temporary networked organization made up of replaceable firms that join and leave as needed is called a(n):

virtual corporation

Corinne, part of the human resources department at a multinational corporation, works with several hundred employees. Her main function is to advise and assist managers in other departments, such as marketing and production, when they make staffing decisions. Corinne's position would be classified as a(n) ___________ position.

staff

In line-and-staff structures, _____ managers provide advice and support to _____ departments on specialized matters such as finance, engineering, human resources, and the law.

staff and line

The definition of _____ states: a management function that includes hiring, motivating, and retaining, the best people available to accomplish the company's objectives.

staffing

Staff positions in an organization

support and assist the line positions.

In a virtual corporation the replaceable firms are joined together on a(n) _____ basis to create a flexible organization

temporary

The defition of ______ ____________ states: skills that involve the ability to perform tasks in a specific discipline or department.

Technical skills

At which point in the production process do companies today conduct quality control?

throughout the process

Fayol's equity principle states that a manager should treat employees and peers:

with respect and justice

Which of the following regarding progressive managers are true?

They motivate They coach They emphasize teamwork and team building

What are some of the goals of developing an organization chart?

To show who reports to whom To show relationships among people

Who performs strategic planning?

Top management

Which of the following activities would be a part of the leading function of management?

Training and coaching workers to help them understand their job and perform it effectively

is a presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders.

Transparency

A Gantt chart is a bar graph showing production managers what projects are being worked on and the stage of development at any given time.

True

A flat organization is less likely to respond quickly to customer needs.

True

A firm wishing to go global should consider passing ISO _____ standards in order to demonstrate a commitment to best practices in terms of impacting the environment to international businesses.

14001

ISO _____ refers to international quality management assurance standards.

9001

An organization must remain flexible and able to _____ to changing times and be successful.

Adapt

When designing responsive organizations, what decisions do firms have to make?

Choose between tall or flat structures decide between centralization versus decentralization Decide the span of control

As organizations grew larger using mass production, it became important for managers to _____ more workers.

Control

The management function that involves establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not is

Controlling

_________ is the term used to describe those functions that a firm can do as well or better than others. It performs these functions in-house, rather than outsourcing.

Core competencies

_________ planning is a part of contingency planning that is used to deal with sudden and unexpected changes in the business environment.

Crisis

External customers include

Dealers End users

A firm that makes leather coats has one department to cut the leather, another to dye it, and a third to sew the coat together. This is an example of:

Departmentalization by process

which of the following tasks are associated with the planning function of management?

Developing strategies to reach those goals Determining resources needed Setting organizational goals

_____________ means giving employees the authority and responsibility to respond quickly to customer requests.

Empowerment

_____ organization structures respond to customer demands faster because its lower-level employees have authority and responsibility for making decisions.

Flat

The key to success is remaining _____ in changing times.

Flexible

The leadership style in which managers set goals and employees are relatively free to choose how to accomplish them is _____ leadership

Free- Rein

Aleah is a first-line manager at her company. At this level of management, she will use human relations and conceptual skills as well as technical skills.

True

Alejandro is the general manager of a retail outlet in Arizona. By emphasizing teamwork and acting in a role of coach rather than boss, Alejandro is considered to be a modern manager.

True

An advantage of decentralized authority is that those individuals closest to the customers and more familiar with local conditions make decisions.

True

An important strategy in operations management is using technology to anticipate customer needs.

True

Apollo just graduated with a degree in operations management. While earning his degree, the knowledge he gained and skills he developed could make him an attractive employee for both a manufacturing firm and a service firm.

True

Bethany was recently promoted to first-line manager. Her company is very traditional in its approach to management. In her position, Bethany probably spends a lot of time giving employees detailed and specific instructions.

True

Brainstorming is coming up with as many solutions as possible in a short period of time with a focus toward not censoring anyone's ideas.

True

Brian is in charge of a complex project. He wants to see how all the different activities involved in completing the project are related to each other. One way to illustrate these relationships would be to construct a PERT chart.

True

Brock is a no-nonsense boss. He believes the best way for an organization to achieve its goals is for workers to follow their boss's direct orders. Thus, he tells workers exactly what to do and how to do it. Brock's approach is an example of directing.

True

Identify the four ways to structure an organization.

Line organizations Line-and-staff organizations Cross-functional self-managed teams Matrix-style organizations

The personnel directly responsible for achieving organizational goals are:

Line personnel

__________ are responsible for directly achieving organizational goals.

Line personnel

Who performs tactical planning in an organization?

Managers or teams of managers at lower levels

Which of the following exemplify line personnel in the line-and-staff organization?

Packaging personnel Production workers

Max Weber favored which of the following?

Staffing and promotions based on qualifications

ISO is not part of the government, but is a federation of national _____ bodies.

Standards

Testing samples of the product at all phases of the production process to ensure that quality is built in from the beginning is called.

Statistical quality control

The process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals is called _____ _____.

Strategic planning

What impact does lack of inventory control have on a firm's efficiency and profitability?

Supplies and materials sitting idle cost the company money.

Which of the following are advantages of departmentalization by function?

The company can achieve economies of scale. Employees develop in depth skills and continue to progress.

Cassidy is concerned about the number of customer complaints she has received regarding the poor service provided by her department. She is convinced her employees are able to provide better service and cut complaints significantly. Cassidy has set a new goal for her department to reduce customer complaints by 15% within six months. This goal is an example of the type of performance standard needed for effective controlling.

True

Compared to PERT networks, Gantt charts provide a more basic way to track progress on a given project.

True

Contingency planning involves developing alternative courses of action to be used if the primary plans do not achieve the desired results.

True

Cross-functional teams work well when leadership of the team is shared.

True

Dan was a team supervisor in a very large organization when the refrigerator in their lunchroom stopped functioning. He started the paperwork on the day it died, then the refrigerator request went out for bid. After that, two middle managers needed to approve acceptance of the bid and document their decision, and the purchasing director had final approval. The refrigerator arrived six months later. Max Weber would have approved of the decision process and its documentation at Dan's company to back up such a refrigerator purchase.

True

Departmentalization by function groups employees based on similar skills, expertise, or resource use.

True

Erin is an attorney working for Food Innovations, Incorporated. She provides legal advice and assistance to Food Innovations managers. Erin's job would be classified as a staff position.

True

Facility layout is the function of operations management that considers the physical arrangement of resources (including people) in the production process.

True

Firms that satisfy the ISO 9001 and ISO 14001 standards have demonstrated a world-class management system in both quality and environmental standards.

True

Firms that specialize in accounting, finance, and management consulting are all part of the service sector.

True

ISO 14001 is a collection of the best practices for managing an organization's impact on the environment.

True

ISO 9001 refers to a set of international standards for quality management and assurance.

True

In many smaller firms the manager's role is to direct the employees, telling them exactly what to do.

True

Job descriptions are an important part of Max Weber's organizational theory.

True

Julio is the owner of Party Time, Inc., a small party supply company. The company provides tents, tables, chairs, and related paraphernalia for weddings, Bar and Bat Mitzvahs, graduations, birthdays, and many other celebratory events. As sales have grown, the organization has hired more employees and has departmentalized to more efficiently handle purchasing, sales, service, and accounting. Everyone is still responsible for achieving company goals. Upon seeing Party Time's organization chart, you agree it uses a line organization model.

True

Knowledge management involves finding the right information, keeping the information accessible, and making the information known to everyone in the firm.

True

Leighton has spent the last two hours going over customer surveys to see how well her company is achieving its goal of improving overall customer satisfaction. Leighton's efforts are an example of the controlling function of management.

True

Line organizations clearly define the lines of authority and responsibility.

True

Management carries out of the vision created by leadership.

True

Manufacturing firms that want to minimize time-to-market are likely to choose facility sites that give them easy access to their preferred modes of transportation.

True

Marie is an operations manager at a local housekeeping service. She is recommending that her firm make better use of the Internet so its services are more readily available to its customers. Marie's recommendation reflects a growing trend in service-sector firms.

True

Middle managers usually are responsible for tactical planning and controlling.

True

Mohammed just started a managerial position at Abundance Bank. In order to be more effective in his new position, he should try to learn who the important people are in Abundance's informal organization.

True

The decision on how to departmentalize should depend on the customer and the product or service the firm is offering.

True

The last step in the rational decision-making model is to determine whether the decision was a good one and follow up.

True

The question of how to implement change within an organization is the responsibility of the firm's CEO.

True

The traits that characterize participative leaders include flexibility, good listening skills, and empathy.

True

Today, rather than purchase goods and services from a large number of firms, manufacturers often try to develop a close relationship with one or two key suppliers.

True

Without clear standards, the control process is impossible to implement.

True

The bureaucratic principles proposed by Fayol and Weber are most likely to apply to an organization that:

Wants to eliminate decision making for lower level employees Employs many unskilled workers

Tactical plans that are detailed and short term state

Who is to do it What is to be done How it will be done

Which of the following statements would best summarize Max Weber's views on the role of workers in an organization?

Workers should simply follow well-defined procedures.

Supervisory managers are those directly responsible for

Workers' daily performance evaluating first line workers' daily performance

The process of rating an organization's practices, processes, and products against the best of the world is known as

benchmarking.

An organization sets up rules and regulations to give its managers more control over employees. This type of organization managed by rules is often considered inefficient due to the levels of control and is known as a :

bureaucracy

Which of the following are quality of life issues that must be considered by companies when choosing a facility location?

climate schools Crime

Last Stop Shop, a regional discount retailer, carefully watches and compares its operations with the operations of its closest rivals. Last Stop Shop does

competitive benchmarking.

The definition of ______________________ states: skills that involve the ability to picture the organization as a whole and the relationship among its various parts.

conceptual skills

If johnson's auto sales isn't meeting its original sales goals for September, they can use their _____ plan and cut prices

contingency

The definition of _____ _____ states: the process of preparing alternative courses of action the firm can use if its primary plans do not work out.

contingency planning

Quiang spent two hours going over quality reports to figure out if his team is meeting quality standards he set for the current month. Quiang's efforts are part of the ___________ function of management.

controlling

Nike sells golf clubs, swim wear, as well as footballs. However, Nike is best know for its performance in designing and marketing of athletic shoes. This is known as Nike's _____ _____.

core cometency

a drawback to Weber's bureaucratic principles was that many large organizations relied on them so heavily that they became rigid and _____.

counterproductive

In a PERT network, the sequence of tasks that takes the longest to complete is called the

critical path.

Which of the following describes a group of employees from different departments working together on a long-term basis?

cross-functional self-managed teams

Groups of employees from different departments who work together on a long-term basis are called:

cross-functional teams

A bank has a department for customer accounts and another department for corporate accounts. The bank is departmentalizing by _____ _____.

customer group

The process of setting up individual departments to do specialized tasks is called _____.

departmentalization

What is the focus of operations management?

designing, supervising, and improving the transformation process while keeping costs down

The first step in developing a knowledge management system is to

determine what knowledge is most important to the organization.

Organizing a business begins with

determining the work to be done

Because economic and competitive environments frequently change, organizations should

develop contingency plans.

Managers classified as middle management include

division managers general managers plant managers

Today's progressive managers

emphasize teamwork and cooperation rather than discipline and order giving.

The trend that gives employees as much freedom as possible to be self-directed and self-motivated is to _____ them.

empower

To make their famous Daddy's Deluxe Italian Sandwiches, Santino's Sandwich Emporium finely slices prime meats, stacks them on Italian bread, adds special seasonings, cheeses, and veggies. The value added by Santinos's when it combines these ingredients to make a sandwich is known as

form utility.

In recent years, the service sector of the U.S. economy has

grown much more rapidly than the manufacturing sector.

Job specialization is known to

improve job performance.

What effect has robotics had on manufacturing?

improved efficiency

CAD has __________ productivity in many firms.

increased

Problem solving differs from decision making because problem solving

is less formal usually requires faster action

Dividing tasks into smaller jobs is called

job specialization.

The further up the managerial ladder a person moves, the __________ his or her original job skills become.

less important

The type of organization that has direct two-way lines of responsibility, authority, and communication from the top down, with everyone reporting to one supervisor is called a:

line organization

The birth of information technology such as texting and email is giving firms and employees increased flexibility to choose _____ while staying competitive.

locations

MRP is a technique that helps managers

make sure that the right parts and materials are available at the right time.

A larger organization might use a flat organization structure in order to:

match the flexibility of small firms

According to Fayol's order principle, _____ and _____ should be placed and maintained in the proper location.

materials; people

The definition of _________________ _______________ states: the level of management that includes general managers, division managers, and plant managers who are responsible for tactical planning and controlling.

middle management

A ______ _______ is an outline of the fundamental purpose and basic philosophy of an organization.

mission statement

Henri Fayol and Max Weber are best known for their contributions to

organization theory.

Regardless of the size of the business, the principles of _____ its structure remain the same.

organizing

is a management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything works together to achieve the organization's goals and objectives.

organizing

A chain of 3 local restaurants has decided to _____ its payroll and tax reporting to a firm that specializes in that function.

outsource

When a firm assigns one or more of its functions to an outside organization, it is:

outsourcing

Technical skills are the ability to

perform tasks such as filing tax forms or assembling a keyboard

SWOT analysis is a _____ tool used to analyze an organization's strengths, weakness, opportunities, and threats.

planning

Finding the highest quality material resources, the best suppliers, and then negotiating the best prices are all responsibilities of someone in a _____ role.

purchasing.

Maintaining ___________ involves producing what the customer wants while reducing errors before and after delivery to the customer.

quality

For a department to operate effectively, the organization must allocate it sufficient _____ such as funds and personnel.

resources

Many large organizations, such as google, recognize the need to be able to manage change more rapidly, so they

restructure to create smaller, more flexible units.

Conceptual skills are used by managers to

see the interrelationships among an organization's departments Picture the organization as a whole Delegate work fairly among workers

A mission statement should address an organization's

self-concept customer needs

A meaningful mission statement should address topics such as the organization's

self-concept and company philosophy.

MRP is a computer based operations management system that uses _____ to make sure that needed parts and materials are available at the right time and place

slaes forecasts

the optimal number of subordinates a manger supervises or should supervise is called a(n) _____ of _____.

span and control

Employees who advise and assist line managers in meeting their goals are called _____ personnel.

staff

A modular layout is used when:

teams of workers produce complex units of a product.

Supervisory managers spend most of their time on

technical and human relations skills.

Is a key management function because accomplishing the other functions depends heavily on it.

Planning

The formal organization details lines of:

Responsibility Authority Position

The line of authority that moves from the top of a hierarchy to the lowest level is called the:

chain of command

The __________ is the system of relationships that develop spontaneously as employees meet and form power centers.

Informal Organization

_____ customers are individuals and units within the firm that receive services from other individuals or units.

Internal

A self-managed team:

Is empowered to make decisions without management approval

What are some of the benefits of technological advances such as CAD-CAM? Select all that apply.

It allows manufacturers to make small changes quickly without having to completely redo a production process. It allows companies to design machinery that can produce multiple product variations at any time. It makes it possible for companies to customize even the smallest orders.

Which of the following are advantages of the matrix organization structure?

It encourages interorganizational cooperation It makes efficient use of organization resources

_____ is creating a vision for others to follow, establishing corporate values and ethics, and transforming the way an organization does business in order to improve its effectiveness and efficiency.

Leadership

Employees often work with managers to develop a(n) __________ that outlines the fundamental purposes of their organization.

Mission statement

A(n) ______ is a specific, short-term statement of how to achieve the organization's long-term _____.

1. Objective 2. GOals

Functions included in staffing an organization are

Hiring recruiting retaining

A firm that has a marketing department organized geographically and a production process organized by function has which type of departmental structure?

Hybrid

some companies create _____ structures because the sales department has geographic departments, production is by function, and marketing is by customer groups.

Hybrid

Which of the following is an advantage of a matrix organization structure?

It provides for efficient use of organizational resources.

To minimize costs many firms employ a producing process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered _____-_____-_____ to go to the assembly line.

Just- in -time

The tasks of knowledge managers include

Keeping information in a readily accessible place finding the right information Making information known to everyone in the organization

Which of the following would qualify as staff personnel in the line-and-staff organization?

Marketing research analysts Human resource managers Legal advisers

The principles of bureaucracy which brought consistent application of rules and procedures to organizations were proposed by ______ _____.

Max Weber

As a manager of a small clothing store, Archer favors detailed job descriptions, formal rules and regulations, thorough records, and standardized procedures. He also believes that staffing and promotion decisions should be based strictly on the qualifications of the people under consideration. Archer's attitudes suggest that he is strongly influenced by the ideas of

Max Weber.

Which of the following are reasons to name department managers for each department created during departmentalization?

TO maintain control of the whole process To assure the department's accountability

strategic planning is done by _____ level management

TOP

The definition of ______ _____ states: the process of developing detailed, short-term statements about what is to be done, who is to do it, and how.

Tactical planning

Which of the following tasks are associated with the controlling function of managers?

Taking corrective action when necessary monitoring performance against standards measuring results against corporate objectives

Although top managers most often possess these skills, they usually make less use of __________ skills than supervisory managers.

Technical

A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person is called a(n) _____.

hierarchy

The definition of _____________________________________ skills states: skills that involve communication and motivation; they enable managers to work through and with people.

human relations

Line managers are those who have the authority to:

Adjust to changing conditions enforce discipline Issue orders

Which of the following statements best describes the impact of recent advances in information technology on business location decisions?

Advances in information technology will give firms more flexibility in their location decisions by reducing the need to locate close to sources of labor.

Identify from the following lists the advantages and disadvantages to decentralized authority:

Advantage: Adaptation to customer wants Empowerment of workers Disadvantages: Less efficiency Complex distribution system

Companies benefit today from interfirm cooperation. One of the ways they cooperate is through networking. Another way is by seeking technological knowledge and new processes from exemplary firms sometimes outside their own industries. This is called

Benchmarking

A person who is a good first-line manager is automatically likely to be a good middle or top manager.

False

Rita Marie and Lynn just returned from a scuba diving and snorkeling trip in the Caymans. Both travelers highly recommended the resort where they stayed. Guest services were extremely prompt in assisting with diving excursions. All resort employees were trained to greet every guest each time they encountered them, whether it was on a pathway to the pools and beaches, or in the restaurants. Many times, the employees even referred to each guest by name. _____________ in the service industry is about creating a good experience for customers.

Operations management

__________ is the specialized area of management that converts or transforms resources into goods and services.

Operations management

Which of the following are part of a situation analysis (SWOT)?

Opportunities Strengths Weaknesses

Today's trend is to expand the span of control because:

Organizations save by reducing the number of middle managers The workforce is better educated at all levels

If companies follow the theories of Fayol and Weber, which of the following scenarios is likely to result?

Organizations that grow will develop several layers of management and the time that it takes to make and carry out a decision will increase.

Lauzy Fare left his position as senior vice president at Blue Skies Electronics a few weeks ago to become the new CEO of Idle Time Gaming. Before joining the new company, Lauzy spent time studying Idle Time's competitive position and talking to employees in all divisions and at all levels of the organization. Based on his findings, Lauzy believes that Idle Time has potential, but also faces some serious challenges if it expects to grow. Lauzy found that when confronted by him, most of Idle Time's professional employees seemed almost afraid to express their opinions. He learned that Otto Craddick, the previous CEO and founder of the company, viewed himself as the boss, and, as such, micromanaged every aspect of the business. This discouraged employees from using their own initiative and ideas to solve problems. For example, Otto required sales and service representatives to get his approval before they made any major commitments to customers. Otto's policy prevented the organization from responding quickly to customer requests, so sales were lost. Unlike his predecessor, Lauzy believes it is important for sales and service personnel to be able to deal with many types of customer requests without needing approval from top management. He is confident that giving employees the authority and flexibility to deal with customers, and providing them with the training and resources to help them do so, will improve morale within the company, create customer satisfaction, and grow revenues. Lauzy also wants to make workers throughout the organization feel more appreciated. He plans to continue meeting with them on a regular basis to seek their advice. He hopes his work colleagues will eventually respond to his leadership style. He has already encouraged middle managers to get employees more involved in decision making, and has suggested some problem-solving techniques the managers could try. Although he thought that changing the rigidity of the company culture would be his first challenge at the new firm, Lauzy quickly realized that there were no standards in place to measure the progress of changes in internal morale, customer satisfaction, and profitability. He has asked managers in those departments to spend more time setting performance standards and then monitoring actual performance. Lauzy is confident that in a relatively short period of time internal changes will lead to good company performance. As a member of top management, Lauzy performs a variety of important tasks. Lauzy seems to prefer a(n) __________ style of leadership.

Participative

The definition of _______________________________________ states: The process of solving the everyday problems that occur. It is less formal than decision making and usually calls for quicker action

Problem solving

Top management sets the vision for the organization and may work with others to establish a mission statement that outlines its

Self-concept product or service offering

A quality control standard that allows for 3.4 defects per one million opportunities is called:

Six sigma Quality

In a PERT network, a critical path is the sequence of tasks that takes the longest time to complete.

True

One trend of the leading management function is to empower employees, giving them as much freedom as possible to become self-directed and self-motivated.

True

Organizational culture refers to the widely shared values within a corporation that foster unity and cooperation.

True

Research on leadership supports the idea that the best leadership style depends on several factors, including the people being led and the situation.

True

Six Sigma is a quality measure that allows only 3.4 defects per million opportunities.

True

Some companies will locate their production facilities near their suppliers.

True

The European Union demands that all firms that want to do business with its member nations must satisfy ISO 9001 standards.

True

The Internet makes real-time availability of data possible.

True

The amount of data gathered has grown so much that the term big data is used to describe the vast amount of information available.

True

The basic idea behind the organization design of Fayol and Weber was that management wanted to control workers.

True

Top managers at Today's Finds department store found their employees do not really share a common sense of purpose nor do they have a common set of values. This suggests that top management has not provided a clear vision for the firm.

True

When Eric Schmidt joined Google he tackled the organization function head-on. In speaking at a large conference with its founders, Sergey Brin and Larry Page, he commented that Google was running pretty well but "it just needed a little structure." Schmidt was referring to basic organization principles such as division of labor, specialization, and getting the departments running smoothly.

True

The box, "Creating Skilled Workers with German-Style Apprenticeships," asserts that Germany is working to combat the growing skills gap by providing on-the-job education for young workers.

True Maybe

During an afternoon coffee break, Evangeline, a production-line employee at Lilypad Linens, was told by a friend that one of the managers in finance is about to be fired. She is eager to learn if other friends at Lilypad know any more about the situation. This flow of information is an example of Lilypad's grapevine.

True _ Maybe

In traditional organizations, directing includes both giving assignments to workers and providing feedback on their performance.

True _ maybe

A disadvantage of the matrix organization is the temporary nature of the teams.

True_ maybe

The organizational culture outlines a company's widely shared _____ and provides unity and cooperation.

Values

___________ is a broad explanation of why the organization exists and where it is trying to go.

Vision

For an inverted organization to be effective, it requires

better educated, better trained, and better paid employees.

Last year, Game Guys, Inc., had its most successful rollout of one of its first person games in the company's history. The CEO announced sales and profits had far exceeded company projections. He attributed the success to a flexible plan, which included good design, accurate product testing, and innovative marketing and sales tactics. In order to have good recall of the procedures that were put in place for this successful introduction, he has charged a team of managers to develop a(n) __________________ system, so the company can avoid "reinventing the wheel." For future introductions, he wants to be able to recall what worked and what didn't work.

knowledge management