Exam 2 490

According to the S-Shaped curve, diminishing returns for a single year budget become significant at

750,000

A firm's bond rating slips by 1 category for each ______ in interest A additional 0.5% B additional 1.0% C 5.0% decrease D 10.0% decrease E bond ratings remain constant

A additional 0.5%

Six Sigma

A business process for improving quality, reducing costs, and increasing customer satisfaction

laissez-faire leadership

A leadership style that leaves much of the business decision-making to the workforce - a 'hands off' approach and the reverse of the autocratic style Hands off

Which of the following is an important characteristic of a leader A. goal-oriented B. satisfied with the status quo C. reactive D. focused on past performance

A. goal-oriented

There are 4 organizational culture types we studied. They are: A Barrier-free, modular, matrix, ambidextrous B Adhocracy, clan, hierarchy, and market C National, international, domestic, global D None of the above.

Adhocracy, clan, hierarchy, and market

_______________ Recruiting Costs if they wish. Can eliminate all but the 1,000 base cost per new employee

Team

Training

The amount of time (hours) workers spend in training each year

Power is

The capacity or potential to influence

Separation Cost

The cost to separate (fire) workers

The TQM report can be accessed from

The foundation Fast Track

Compliment

The number of workers in the company Workforce

Needed Complement

The number of workers required to fill the production schedule without overtime.

Turn over rate

The percentage of workers who left the company last year, excluding downsizing.

Caliber

The talent of the workforce

Increasing Capacity tends to reduce the number of workers on Second Shift.

True

Increasing Training Hours tends to both increase and decrease the Needed Complement.

True

Production runs can be scheduled in one or two shifts:

True

Overtime

Workers stay on past the first 8 hours of their shift

TQM

a management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement

4 types of cultures

clan, adhocracy, market, hierarchy

Investing in the same TQM initiative round after round will create:

diminishing returns

Compliance-based ethics programs

programs for building ethical organizations that have the goal of preventing, detecting, and punishing legal violations

Customers View

quality of the design (look, feel, and function). Feature and performance Value= Quality/Price

emotional intelligence

recognizing his own emotions and those of others

5 components of EI

self awareness, self regulation motivation Empathy, social skills

4 leadership

skills, technical, human, conceptual and basic buiz skills

Preferred Stock

some extraordinary type of relationship claim to money in case of bankruptcy

Credibility

the characteristic of a person who is perceived by others to be trusted, convincing, and confident by displaying a high level of expertise in a specific subject.

A/P Lag is

time between purchase of raw materials on credit and cash payment of account

bureacratic leadership

when everything is done according to the plan follow the rules

Separated Employees

Employees lost because of downsizing or increases in Automation.

Total debt to Total Assets =

(Short term debt + Longterm debt)/ total assets

Rewards Disadantages

-Subcultures may arise -May reflect differences among functional areas -Could lead to information holding

Ethical Decision Making Steps

1. investigate the ethical issues 2. Identify the primary stakeholder 3. Increase the numbers of alternative courses of action 4. Inspect the consequences of the alternatives

Functional Structure Advantages and Dis

Adv: Enhanced coordination and control, Centralized decision making Dis: Impeded communication and coordination due to differences in values and orientations, May lead to short-term thinking (functions vs. organization as a whole)

Simple Structure Advantages and Disadvantage

Adv: Highly informal, Centralized decision making Dis: Employees may not understand their responsibilities, May take advantage of lack of regulation

matrix structure

An organizational form in which there are multiple lines of authority and some individuals report to at least two managers

Which financial obligation is best satisfied with Bond Issues? A Accounts Payable B Paying for increased production capacity C Changes in A/R policy D Salary increases E All of the above

B Paying for increased production capacity

Which financial obligation is best satisfied with Current Debt Issues as opposed to other financing choices according to the Team Member Guide? A Accounts Payable B Paying for increased production capacity C Accounts Receivable and inventory D Salary increases E All of the above

B Paying for increased production capacity

According to trait theory, there are 5 traits that all leaders should possess or cultivate if one seeks to be perceived by others as a leader. Which of the following is NOT one of these traits: A Intelligence B Self interest C Integrity D Determination E Self Confidence

B Self interest

Which of the following is an advantage of a divisional type of organizational structure? A. Efficient use of managerial and technical talent. B. An enhanced ability to respond quickly to changes in the external environment. C. High degree of emphasis on long-term performance. D. Uniformity in image and quality across divisions.

B. An enhanced ability to respond quickly to changes in the external environment.

Which component of Emotional Intelligence (EI) enables a manager to have a deep understanding of the existence and importance of cultural and ethnic differences? A. self-awareness B. empathy C. social skills D. self-regulation

B. empathy

At ABC Corporation, work is divided into units that specialize in production, marketing, research and development, and other management tasks. This is an example of a A. simple structure. B. functional structure. C. divisional structure. D. matrix structure.

B. functional structure.

Top managers at ABC Company meet every Friday to review daily operational reports and year-to-date data. This is an example of A. behavioral control. B. informational control. C. strategy formulation. D. strategy implementation.

B. informational control.

Complicated working relationships and intense power struggles are disadvantages of what type of organizational structure? A. divisional B. matrix C. holding company D. functional

B. matrix

Traditional Approach

Emphasizes comparing outcomes to predetermined strategies and fixed rules

Most organizations with strong cultures and a sound system of rewards and incentives can eventually internalize boundaries rather than use explicit rules and regulations. Which of the following is not a technique for moving in that direction? A. Hire people that identify with the organization's dominant values. B. Develop managerial role models. C. Minimize training and indoctrination. D. Align reward systems with organizational goals and objectives.

C. Minimize training and indoctrination.

An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure? A. Functional structure B. Matrix structure C. Strategic business unit structure D. Holding company structure

C. Strategic business unit structure

When subcultures emerge that have shared values opposite from the dominant culture of an organization A. organizational cohesiveness increases. B. information is shared rather than hoarded. C. individuals begin working at cross purposes. D. individuals gain insights into overarching goals and objectives.

C. individuals begin working at cross purposes.

When subcultures emerge that have shared values opposite from the dominant culture of an organization A. organizational cohesiveness increases. B. information is shared rather than hoarded .C. individuals begin working at cross purposes. D. individuals gain insights into overarching goals and objectives.

C. individuals begin working at cross purposes.

Two approaches to ethics

Compliance based Integrity based

CPI

Continuous Process Improvement An ongoing system of identifying or anticipating problems or areas in need of improvement in technical work processes, customer service, and team interpersonal effectiveness in order to perfect the quality of the products

Effective culture must me

Cultivated, Encouraged, and fertilized

Contemporary Approach

Culture, Rewards and boundaries

A/P and A/R Rules to remember

Customer like to buy on credit Suppliers want to be paid as soon as possible

Capital needed for company activities cannot be acquired through: A stocks and bonds B profits C current debt D arbitrarily firing employees E all of the above

D arbitrarily firing employees

All of the following statements about simple organizational structures are true EXCEPT which? A. Small firms with a narrow product-market scope will adopt such a structure. B. Decision making authority is highly centralized. C. There is little specialization of tasks. D. Creativity and individualism are rare.

D. Creativity and individualism are rare.

Which skill is associated with having knowledge about and being proficient in a specific type of work or activity? A. Conceptual B. Communication C. Human D. Technical

D. Technical

Rules and regulations are examples of A. implicit controls. B. informational controls. C. cultural norms. D. boundaries and constraints.

D. boundaries and constraints.

Rules and regulations are examples of A. implicit controls. B. informational controls. C. cultural norms. D. boundaries and constraints.

D. boundaries and constraints.

Assuming the Productivity Index is greater than 100%, adding Overtime will ____________ the Productivity Index.

Decrease

Matrix Structure Advantages and Disadvantages

Facilitates the use of specialized personnel, equipment and facilities Dis: Can cause uncertainty and lead to intense power struggles Working relationships become more complicated Decisions may take longer

Hiring the Needed Complement will always eliminate a Second Shift

False

Management should strive to increase Turnover.

False

T/F Cash and profit are synonymous.

False

T/F Rarely does it make sense to run a company using debt.

False

Worker training is entered by the dollar

False

t/f Leaders are not expected to accept personal responsibility for ethical behavior in an organization because ethics is a matter of individual choice.

False

5 Stages of a leader

Ideal Self Real Seld Learning Agenda Experimentation Trusting Relation

Cashflow statement Income Statement Balance sheet They show what

Kepp track of day to day profit or not investment in business

Hierarchy Culture

Leader Type Coordinator Monitor Value Drivers: Efficiency, Timeless, Theroy for effectiveness: Control

Clan Culture

Leader Type Mentor Team Builder Value Drivers: commitment and communication Theroy for effectiveness: Participation

Adhocracy Culture

Leader Type Visionary Value Drivers: Innovation Theroy for effectiveness: New Sources

Market Culture

Leader Type Competitor Value Drivers: Market Shre Theroy for effectiveness: Rivarly promotes productivity

Authoritative Leadership

Leadership that involves a single leader who dominates and dictates processes to group members. Follow me

Assets =

Liabilities + Equity

Quality is:

Moving Target

Equation for Net Cash

Net Income -Depression - positive change in current asset and liability

2nd Shift Capacity

New workers arrive at the end of the 1st Shift and work a full 8 hour

Divisional structure

Organized around products, projects, or markets Each division includes its own functional specialists typically organized into departments

Earning per Share (EPS)

Profit/shares outstanding

If a company with low automation wanted to invest in a single area that exclusively lowers labor costs, they would select:

QIT (Quality Initiative Training)

QFD

Quality Function Deployment provides a structured approach to determine the product and service specifications needed to satisfy key customer requirements.

____ are incurred when production runs increase and teams match hiring to Needed Complement

Recruiting costs

Working Capital

Run day to day Operations Cash flow cycle current assets - current liabilities

Divisional Structure Advantages and Disadvantages

Separation of strategic and operating control Quick response to important changes in external environment Dis: Can be very expensive Can be dysfunctional competition among divisions Can be short term perfomance

Generally, __________ will be incurred when production levels decrease and / or Automation levels increase.

Seperation Cost

Organizational Culture is a system of

Shared values (what is important) Beliefs (how things work)

Common Stock

Simple share of ownership; each share has one vote. If bankrupt, becomes Worthless

According to the skills approach to leadership, conceptual skills are least needed at what level of management compared to the others: a. Middle b. Supervisory c. Top d. None of the above. They are equally important at each level.

a. Middle

Position power is that which is associated with the office or rank in an organization. All of the following fall under position power EXCEPT a. Legitimate b Referent c. Reward d. Coercive

b Referent

Concurrent Engineering

bringing engineering design and manufacturing personnel together early in the design phase

Benchmarking

company looks outward to competitors, other companies to find best practices and then proceeds to develop the data for measuring how well a company's own performance of an activity stacks up against the best practice standard.

Producers View

conformance to requirements ex # of defects per million

The exact outcome of TQM efforts on the TQM Report, and as bar charts on the TQM spreadsheet. These results are for:

cumulative for the previous and all remaining (assuming no additional investment is made)

Five components of emotional intelligence include a) self-awareness, self-regulation, self-interest, empathy, and social skills. b) self-awareness, self-regulation, self-interest, sympathy, and social skills. c) self-awareness, self-regulation, motivation, sympathy, and social skills. d) self-awareness, self-regulation, motivation, empathy, and social skills.

d) self-awareness, self-regulation, motivation, empathy, and social skills

Position Power

from office or rank legitimate and reward

Coaching

giving direction, identifying individual strengths.

simple structure

has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization

Boundaries to Rewards

hire the right people train in the dominate cultural value

Productivity Index:

how the general workforce compares with the workers employed in Round 0

Personal Power

influence derived from being seen as likable and knowledgeable Referent and or Expert

Top managers at ABC Company meet every Friday to review daily operational reports and year-to-date data. This is an example of A. behavioral control. B. informational control. C. strategy formulation. D. strategy implementation.

informational control.

Trait Theory of Leadership

intelligence, self-confidence, determination, integrity, and sociability

Leadership

is a process whereby an individual influences a group of individuals to achieve a common goal

A/R Lag

is time between sale of final product on credit, and cash account paid.

Transactional Leadership

leadership based on an exchange process in which followers are rewarded for good performance and punished for poor performance Reward for what they do

autocratic leadership

leadership style that involves making managerial decisions without consulting others Do As I say

Transformational Leadership

leadership that, enabled by a leader's vision and inspiration, exerts significant influence Keep up the bar is high

Production Life Cycle

length of time from purchase of raw materials to sale of the finished product.

Management vs. Leadership

management: planning, organizing, leading, controlling leadership: agenda setting, aligning, inspiring, monitoring

1st Shift Capacity

number of units in thousands possible to produce in 1 year with 8 hour shifts

democratic leadership

participative leadership style which allows team members to be included in the decision making process

Affiliative/Servant

people first (harmony, conflict resolution) interacts with and focuses on the growth and well-being of others and the community. (Sometimes effective)

functional structure

people with similar occupational specialties are put together in formal groups

Org culture is shapes by

people, org structure, control systems

Integrity-based ethics programs

programs for building ethical organizations that combine a concern for law with an emphasis on managerial responsibility for ethical behavior