Exam 2, Principles of management Chap 7, 8, 9, 10
A study at the Massachusetts Institute of Technology (MIT) found that companies that have adopted data-driven decision making achieved productivity that was _____ than could be explained by any other factors.
5-6 percent higher
A McKinsey Quarterly survey found that _____ of executives whose companies had no formal strategic planning process were dissatisfied with the company's development of strategy, compared to only _____ of those at companies that had a formal planning process.
51 percent; 20 percent
Which of the following statements about feedback is NOT accurate?
A failed decision results in failed feedback.
In which of the following situations would a smaller span of control be more appropriate?
A great deal of time is required in nonsupervisory activities.
Which of the following is a disadvantage of the team approach?
A large amount of time is devoted to meetings, thus increasing coordination time.
Which of the following goals meets the standards for effective goals?
All models achieve a 10 percent increase in miles per gallon (mpg) ratings within two model years.
Ellis specifies the resource allocations, schedules, tasks, and other actions necessary for the organization to succeed. Ellis has prepared:
All of these answers are correct.
Greer manages a company that has functioned effectively with a vertical functional structure because the environment has always been stable, but changes in that environment and the accompanying rapid changes have made the functional structure inadequate. Which of the following courses of action should Greer take to make the company more responsive to the rapidly changing demands in the environment?
All of these answers are correct.
In which of the following situations would a decision maker choose to use the six steps for making effective decisions?
All of these answers are correct.
In which of the following situations would the classical model of decision making be most useful?
An airline uses automated systems to optimize seat pricing.
Kai works for a company whose main strategic goal is one of differentiation. The organization atmosphere values innovation and flexibility. Which of the following best fits with the description of Kai's company?
An organic system with horizontal teams
Seong is outlining in a memo the ways in which the company's management may execute the changes in strategy they have formulated. Which of the following would NOT likely be among Seong's suggestions?
Analyze the threats and opportunities of the external environment.
Riley is working on sales forecasts for the coming year. The company's two largest competitors have new products coming out, according to information within the industry. The company's sales have been holding steady or showing a modest increase. Riley's final numbers for the forecast show an increase equal to the highest percentage achieved over the past five years. Which of the following biases may be present in Riley's thinking?
Anchoring bias
An organization must make sure that recruiting, selecting, training, compensating, transferring, promoting, and laying off employees are aligned with its strategy to achieve its strategic goals. These activities are part of which of the following primary tools that managers use to implement strategy effectively?
Appropriate HR practices
Which of the following is NOT one of the main categories of the overall planning process?
Assess stakeholder perspective
Departmental employees are expected to acknowledge their manager Skylar's authority. Which of the following characteristics would NOT be found among those expectations?
Authority is the duty to perform the task or activity as assigned.
_____ is the formal and legitimate right of a manager to make decisions, whereas _____ is the duty to perform the task or activity as assigned, and _____ involves reporting and justifying task outcomes to those higher in the chain of command.
Authority; responsibility; accountability
Because of Walmart's reach with customers, it can often dictate at what price it will purchase a company's product for sale in its stores. In this scenario, which of the following forces will the company that wants to sell its products through Walmart encounter?
Bargaining power of the buyer
Evon is especially concerned about how any decision will affect employees. When going through the decision-making process, she searches out as much information as possible before making a decision. What type of decision style does Evon use?
Both behavioral and analytical styles
The BCG matrix organizes businesses along which of the following two dimensions?
Business growth rate and market share
What management tool are managers using to put strategy into action when they openly and avidly promote their strategic ideas, listen to others and encourage disagreement and debate, and create a culture based on openness and honesty that encourages teamwork and collaboration?
Candid communication
Which of the following is a characteristic of effective goals?
Challenging but realistic
Which of the following is NOT considered a bias managers may be subject to when making decisions?
Compiling as much data as possible
_____ occurs when managers look for information that supports their existing instinct or point of view or discount evidence that contradicts it.
Confirmation bias
Strategic managers normally think in terms of which of the following three levels of strategy?
Corporate level, business level, and functional level
Which of the following is NOT among the four major decision styles through which individual managers may approach problems and make decisions concerning them?
Critical
Which of the following statements best describes the role of decision alternatives?
Decision alternatives can be thought of as tools for reducing the difference between the organization's current and desired performance.
_____ is the process of identifying problems and opportunities and then resolving them.
Decision making
Which of the following statements best characterizes the decision-making process?
Decision making involves effort both before and after the actual choice.
In order to find a competitive edge within the specific business environment, Porter's model offers which of the following three strategies?
Differentiation, cost leadership, or focus
Which of the following is a disadvantage of the divisional structure?
Efficiency and economies of scale are often compromised when each division has its own functional departments.
Which of the following individuals would be responsible for articulating an organization's tactical goals and plans?
Emerson, the foreign operations division manager
Which of the following factors that contribute to the failure of strategy execution accounts for the most frequently encountered barrier?
Employee resistance
Which of the following would you not find among Porter's five competitive forces?
Environmental safety
Which of the following statements about decision making in organizations is true?
Every organization grows, prospers, or fails as a result of decisions made by its managers.
Which of the following statements about evidence-based decision making is true?
Evidence-based decision making is founded on seeking and examining evidence with rigor.
Which of the following statements about an organization's mission is NOT true?
Having a clear mission is not a defining attribute of successful companies.
Which of the following is most likely to be a programmed decision?
Having a new employee attend an employee orientation session
In making choices about how to position her organization in the environment with respect to rival companies, as a top-level manager, Casey would most likely ask all of the following questions EXCEPT:
How can we change our environment so that it better fits with our goals for the organization?
Which of the following statements about relational coordination is true?
In an organization with a high level of relational coordination, people share information freely across departmental boundaries, and people interact on a continuous basis to share knowledge and solve problems.
Which of the following two characteristics define service technology?
Intangible output and direct contact with customers
Which of the following is an advantage of the virtual network structural approach?
It can draw on expertise worldwide.
Which of the following statements about a star is true?
It has additional growth potential, and profits should be plowed into this business as investment for future growth and profits.
Which of the following is a unique feature of the matrix structure?
It has dual lines of authority.
The benefits of management by objectives (MBO) include all of the following EXCEPT:
MBO emphasizes methods and processes rather than goal achievement.
In selecting from among the feasible alternatives, which of the following would NOT be an objective in choosing the best alternative?
Made when managers rely on their intuition
Which of the following would be considered an operational-level goal for a company that produces school buses?
Maintain daily output levels for finished seats.
Which of the following statements about decision styles is true?
Managers frequently use several different styles or a combination of styles in making the varied decisions that they confront daily.
Kell would like to build relational coordination into the fabric of the organization. Which of the following statements best expresses what relational coordination looks like?
Managers resolve cross-departmental conflicts based on shared goals rather than emphasizing goals of their separate departments.
Which of the following is NOT an assumption of the political decision-making model?
Managers seldom talk to each other or exchange viewpoints to gather information and reduce ambiguity.
Which of the following statements about centralization versus decentralization is true?
Managers should diagnose the organizational situation and select the decision-making level that will best meet the organization's needs.
Which of the following is an assumption upon which the administrative model for decision making is based?
Managers' searches for alternatives are limited because of human, information, and resource constraints.
Nicky owns a large high-tech company. Because of the complex, rapidly changing environment in which the organization finds itself, it needs to be flexible, innovative, and adaptable. Which of the following approaches to structure would offer the greatest flexibility and adaptability?
Matrix
Terry has strong feelings about the unity of command principle within an organization's structure. Which of the following structures is least likely to follow this principle?
Matrix
Which of the following statements about biases in decision making is true?
Most people overestimate their ability to predict uncertain outcomes.
In a SWOT analysis, Whitney discovers that a number of research and development experts who worked for a competitor are now without a job because that competitor went out of business. The potential to hire these individuals would be placed in which of the following categories of the SWOT analysis?
Opportunities
Which of the following statements is NOT part of the definition of organizational structure?
Organizational structure is the creation of a shared culture and values that communicates goals and infuses employees with the desire to perform at a high level.
For Haven, the strategic management process begins with an evaluation of the current mission and goals and it ends with execution of that strategy with the organization. What steps need to occur, in order, in this process between initial evaluation and execution of the strategy?
Perform SWOT analysis, define new mission and goals, and formulate strategy.
When making decisions about motivating employees, Rowan tends to follow what has worked in the past. Despite several new training methods that are being used in other divisions of the company, Rowan continues to use the same methods. Which of the following biases is most prevalent in this scenario?
Perpetuation of the status quo
_____ pertain(s) to the mix of business units and product lines that fit together in a logical way to provide synergy and competitive advantage for a corporation.
Portfolio strategy
Loreto is conducting a SWOT analysis. In order to obtain information about opportunities and threats from the external environment, which of the following sources would Loreto use?
Professional journals
Management decisions typically fall into which of following categories?
Programmed and nonprogrammed
Which of the following is most likely to be a nonprogrammed decision?
Restructuring the organization to be flatter, with fewer levels in the management hierarchy
Which of the following is a disadvantage of the functional structure?
Separating people into distinct departments shrinks communication and coordination across functions, deterring response to environmental changes.
Which of the following statements about the divisional structure is true?
Sometimes called a product structure or program structure, with this structure diverse departments are brought together to produce a single organizational output, whether product or service.
Which of the following is NOT a key role within a matrix structure?
Span manager
Quincy has asked you for advice concerning what tools to use in implementing strategy. Which of the following would you NOT suggest to Quincy?
Spend a majority of time in observation.
Jess is an executive-level manager at a multinational company that produces and distributes water purifiers. Which of the following levels of plans for the organization would Jess most likely be involved with?
Strategic plans
Which of the following generally has a longer time line than tactical plans?
Strategic plans
Which of the following statements about thinking strategically is true?
Strategic thinking requires seeing both the organization and the competitive environment.
Which of the following is NOT included among the three approaches managers can use to help their planning in a turbulent environment?
Strategy mapping
KalpTree Energy is a company admired for its innovative technology that revolutionizes existing products and creates new products. In which of the following categories of a SWOT analysis would this characteristic appear?
Strengths
Which of the following statements is NOT descriptive of a network structure?
Stronger boundaries reduce uncertainty and ease the demands on managers for defining shared goals and managing relationships so that everything functions as intended.
Which of the following statements does NOT provide an accurate description of strategic management?
Superior organizational performance is more a matter of luck than a result of the choices managers make.
Taylor would like to increase the level of production by purchasing an upgrade for the main piece of equipment. A $5,000 upgrade would increase production output by 10 percent. Sales forecasts indicate that could easily be sold. A $15,000 upgrade would increase production by 25 percent. Sales forecasts, however, indicate only a 50 percent chance that all the additional production could be sold. The decision will depend, in part, on:
Taylor's risk propensity.
Which of the following is NOT included among Woodward's three basic types of production technology?
Technically complex production
Which of the following statements about strategy execution within the strategic management process is true?
The biggest barriers to strategy execution are related to the inability of people to adopt new behaviors rather than the lack of resources or planning.
Which of the following is one of the four assumptions underlying the classical model of decision making?
The decision maker strives for conditions of certainty and tries to gather complete information. All alternatives and the potential results of each are calculated.
_____ combines aspects of both functional and divisional structures simultaneously, in the same part of the organization.
The matrix approach
Darian reports to a manager who oversees all the company's divisions in India. She also reports to the matrix boss who oversees the insurance products division. Which of the following statements would NOT apply to Darian's situation?
The matrix boss oversees both the product and functional chains of command to maintain a power balance between the two sides of the matrix and resolve any disputes that arise.
A manager's choice in selecting a decision-making model depends on a number of factors. Which of the following is NOT one of those factors?
The presence of an issue
_____ is a good way to communicate goals because all employees can see what part they play in helping the organization accomplish its mission.
The strategy map
Companies that choose to use a multidomestic approach do so for a number of reasons. Which of the following would NOT be one of those reasons?
The theory is that people everywhere want to buy the same products and live the same way.
Which of the following statements is true about programmed decisions?
They are made in response to recurring organizational problems.
Which of the following statements best explains why vertical hierarchies continue to thrive among organizations?
They provide important benefits for organizations.
Within Nature Nurture Baby Food Company, people and resources representing a common function are grouped into a single department, such as accounting, HR, marketing, and research and development. Nature Nurture uses a(n) _____ structure.
U-form
What are the two underlying principles associated with chain of command?
Unity of command and scalar principle
Which of the following activities would NOT be part of a SWOT analysis?
Use structure to execute the organization's strategy.
Most of the employees at a custom furniture manufacturing company are 50 years old or older. As a consequence, the managers frequently encounter resistance to updating methods or equipment. The employees' resistance to change would be placed in which of the following categories of the SWOT analysis?
Weaknesses
As members of Chen's executive team engage in their strategic management plans, which of the following questions would they ask when considering corporate-level strategy?
What business are we in?
Managers who engage in scenario planning are most likely to ask which of the following questions?
What if?
Which of the following statements best describes a global strategy?
When an organization chooses a globalization strategy, product design and advertising strategies are standardized throughout the world.
Which of the following statements about responsibility and authority is true?
When managers have responsibility for task outcomes but little authority, the job is possible but difficult. In this situation, managers rely on persuasion and luck.
Which of the following statements about groupthink is NOT true?
With groupthink, group members resist censorship of their personal opinions and encourage group unity and open critiques of all opinions.
Which of the following statements about coordination is correct?
Without coordination, a company's left hand will not act in concert with the right, causing problems and conflicts.
A standing plan that defines a precise series of steps to attain a certain goal is called:
a standard operating procedure.
Joey's spice company contracted with an herb consultant who previously worked for other spice companies. The consultant brings many years of experience to the task of blending herbs for a new line of herbs/spices to increase products for cooking special diets (e.g., gluten-free, low carbs, low fats, etc.). The element contributing to that competitive advantage in this case is:
achieve synergy.
The _____ model recognizes the human and environmental limitations that affect the degree to which managers can pursue a rational decision-making process.
administrative
Peyton has encountered a situation for which information about the alternative choices is limited. He has neither the time nor the resources to search out additional information before the decision needs to be made; therefore, Peyton is most likely to apply satisficing. Peyton has used the:
administrative model.
Bobbie is faced with a complex issue. In approaching the decision-making process, she prefers to carefully consider alternatives and base her decisions on objective, rational data from management control systems and other sources. Bobbie's personal decision style is:
analytical.
Jackie made the managerial decision to create two new positions for marketing director and development director after seeing the benefits created for a colleague's company that did the same thing. After some research, the analysis indicated that the marketing and development work needed, based on strategic goals, did not require more than 40 hours per week. Jackie was still convinced that the roles needed to be separate and held by two individuals. In this scenario, Jackie is displaying evidence of a(n):
anchoring bias.
In difficult situations, such as those characterized by nonprogrammed decisions, uncertainty, and ambiguity, managers typically:
are unable to make economically rational decisions even if they want to.
A company's first step toward a greater international presence generally occurs when it:
begins exporting domestically produced products to selected countries.
Daryl handles complex decision situations on a regular basis. He typically approaches problems by talking to people one on one in order to understand their feelings about the problem and then consider the effect of a given decision on them. Daryl's uses a(n) _____ decision style.
behavioral
Decentralizing decision making, breaking down the barriers between functions, and linking employees directly with customers through a team-based approach enables companies to respond extremely quickly to changing consumer demands and market needs. This trend moves companies toward a:
bossless workplace.
Tam recognizes that managers in the department have limits, or boundaries, on how rational they can be. They are subject to:
bounded rationality.
A face-to-face interactive group to spontaneously suggest as many ideas as possible for solving a problem is the goal of:
brainstorming.
The popularity of its newest personal fitness tracker spurred members of Cass's team to consider developing variations of the tracker. Their concerns about development, advertising, and necessary production facilities fall within the level of:
business-level strategy.
Every decision situation can be organized on a scale according to the availability of information and the possibility of failure. The four positions on the scale are:
certainty, risk, uncertainty, and ambiguity.
Alyn is a big proponent of talking frequently with other managers, providing them with an opportunity to contribute to decision making and enhancing their commitment to the alternative that is ultimately adopted. This activity is known as:
coalition building.
Dale, who manages the marketing department, and Jess, who manages the sales department, work together, along with people from their departments, to produce effective marketing campaigns and related sales strategies to achieve sales goals for the company. Their joint efforts are known as:
collaboration.
In for-profit firms, strategic planning typically pertains to _____, whereas in nonprofit organizations, strategic planning pertains to _____.
competitive actions in the marketplace; events in the external environment
Joey runs a spice company that grows many of its spices and herbs locally and is involved with fair trade markets for imported ingredients in its seasoning mixes. Its local sources and specialty seasonings make the company's products perform well in the market. This distinctive edge is the company's:
competitive advantage.
When making decisions, Pat prefers to gather broad information from a number of people with information about the situation. She especially likes input from individuals with creative ideas in how to solve the problem. Pat has a(n):
conceptual style.
In the formulation of strategy, a manager's first activity would be to:
conduct a SWOT analysis.
As a manager, Carson tends to get impatient when others offer suggestions that do not agree with information or plans that he already has. When one colleague pointed out that his plan would cost more than it would save the company over the long run, Carson turned to another person in the room and asked, "Do you agree?" Afraid to anger him, the person replied, "Not really." Carson's response to the critical colleague was, "See? I'm right and you're wrong." Carson here is subject to a great deal of:
confirmation bias.
As the new safety manager for a manufacturing company, Leigh is identifying important factors in the environment, including new safety features for the equipment, communications protocols, as well as past accidents and responses. Leigh is engaged in:
contingency planning.
Teagan manages a production department. Operators within the department simply read dials, fix machines that break down, and manage the production process that has no starting and stopping. Teagan manages a:
continuous process production.
Effective managers are adept at adjusting and synchronizing the diverse activities among different individuals and departments. This task is known as:
coordination.
Strategic actions that relate to the acquisition of new businesses; additions or divestments of business units, plants, or product lines; and joint ventures with other corporations in new areas are based on a(n):
corporate-level strategy.
An organization that aggressively seeks efficient facilities and uses tight cost controls to produce products more efficiently than competitors is pursuing a:
cost leadership strategy.
A _____ is similar to a task force except that it works with continuing rather than temporary problems and might exist for several years.
cross-functional team
Kelson is a communications expert who works for a manufacturing company. He meets regularly with coworkers from various other functions in the company to address issues and problems as they arise. Kelson is a member of a:
cross-functional team.
When the structure focuses company activities on local market conditions and adapts the production or sale of a product to a given group of customers, it is considered a:
customer-based structure.
Planning experts work with managers in major divisions or departments to develop their own goals and plans through:
decentralized planning.
In order to provide maximum flexibility to meet customer needs and adapt to shifts in the environment, most organizations today encourage managers to:
delegate authority to the lowest possible level.
When managers make choices about how to use the chain of command to group people together to perform their work, this aspect of organization structure is known as:
departmentalization
Within Dana Harper's team, Chris's role is to challenge ideas and assumptions of other team members as the team works toward a decision. In the past, She has helped the team rethink its approach to the problem and avoid reaching premature conclusions. Chris's role is one of:
devil's advocate
With a _____ strategy, the organization attempts to develop innovative products unique to the market.
differentiation
Emery's company is involved in an intensely competitive market. The company's strategy involves ways to maintain and enhance customer loyalty, which is beneficial in fighting off the threat of substitute products. Emery's company follows a:
differentiation strategy.
As manager of the marketing department, Jorry is guiding his team to use creative advertising in order to better highlight distinctive product features. This type of competitive strategy to better compete is known as:
differentiation.
Managers who use the _____ style often make decisions quickly because they do not like to deal with a lot of information and may consider only one or two alternatives.
directive
Harper manages the department that bottles the various kinds of beer at Northwoods Brewery. Employees have a specific task: loading the bottles, supervising the fill function, supervising the capping function, filling the label machine, and boxing the filled and capped bottles. Each of the individuals is part of the bottling line's:
division of labor.
The term self-contained unit structure—bringing diverse departments together to produce a single organizational output—is sometimes used to describe the:
divisional structure.
Dana and Harper have assembled their team interactively over the company computer network rather than meeting face to face in order to gather as many ideas as possible for launching the company's new product line. The team is engaged in:
electronic brainstorming.
At Petal Nurseries, management makes sure employees have the information and resources they need so that their daily decisions and actions help move the firm in the right direction, toward achieving important goals. This _____ is a key to effective strategy execution.
embeddedness
In the dual chain of command within the matrix structure, two-boss employees typically:
encounter more confusion and frustration.
After a review of the company's mission and goals, Keeley finds that the company is losing market share to several companies in the industry. Keeley's next step would be to:
engage in the process of strategy formulation.
Forces that come from the outside and affect organization structure include:
environmental conditions.
Tyler manages a hardware store in a small city. The neighborhood in which it is located has changed and a big box store has opened nearby. Tyler updated the interior of the store and ran advertising campaigns during the spring despite eight straight quarters of declining sales. Now he wants to add several lines of seasonal decorations and art and office materials/supplies as well as launch a new campaign. Some of the employees are questioning this approach and wonder whether Tyler has succumbed to:
escalating commitment.
Personal decision styles refer to distinctions among people with respect to how they:
evaluate problems, generate alternatives, and make choices.
The strategic management process begins when executives:
evaluate their current position with respect to mission, goals, and strategies.
Mel has just implemented a decision to upgrade all of the salespeople's laptops based on their efficiency in dealing with the software most commonly used by many clients and the internal programs that provide the data on which the salespeople compile sales quotations for clients. After three months, Mel has the salespeople provide feedback about how well the laptops are achieving the goals. This scenario is in the:
evaluation stage.
A(n) _____ is the plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals.
explicit strategy
At the pharmaceutical company where Jamie manages the research division, superior results from that research division have provided the company with a competitive advantage. The element contributing to that competitive advantage in this case is:
exploit core competence.
The virtual network approach to departmentalization:
extends the idea of horizontal coordination and collaboration beyond the boundaries of the organization.
Effective companies in a fast-shifting environment are those in which managers take a(n) _____ to planning and goal setting.
flexible approach
If an organization's strategy includes measuring the cost of providing its product or service and maintaining customer loyalty, compiling frequent detailed control reports, and using characteristics of a cost leadership approach directed at a particular target customer, its strategy is one of:
focused cost leadership.
Strategy _____ includes the planning and decision making that lead to the establishment of the organization's goals and a specific strategic plan, whereas strategy _____ involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes.
formulation; execution
At Aran's company, the organization structure groups positions into departments based on similar skills, expertise, work activities, and resource use. This type of structure is known as:
functional structure.
In the production department, the management is always looking at potential suppliers to find quality ingredients at the best price. This scenario is an example of a:
functional-level strategy.
Research indicates that the effect of planning on a company's performance is:
generally positively.
Once an issue has been recognized and its causes diagnosed, the next step is to:
generate possible alternative solutions.
Dechen's company has three divisions, one for North America, one for Europe, and one for east Asia. The company uses a:
geographic-based structure.
If Regan's company wants to reap efficiencies by standardizing product design and manufacturing, using common suppliers, introducing products around the world faster, coordinating prices, and eliminating overlapping facilities, it should choose a:
globalization strategy.
Airbnb has experienced remarkable global success—it now has listings in over 190 countries for host homes in which travelers may stay. The key to its global strategy is making the site accessible around the globe, but pairing it with local flavor and stories. Airbnb truly exemplifies:
glocalization
An organization expresses the desired future circumstance or condition it will attempt to realize as a:
goal.
If Jordan wants to avoid duplication of activities among various business divisions, she would choose:
greater centralization.
When considering the issues of certainty and uncertainty, all of the following statements are true EXCEPT:
in reality, most things are knowable; thus, it is a manager's fault if a decision fails to solve the problem or attain the desired outcome.
Managers continuously perceive and process information that they may not consciously be aware of, and their base of knowledge and experience helps them make decisions that may be characterized by uncertainty and ambiguity. This decision-making quality is known as:
intuition.
When considering the relationship between manufacturing technology and organizational structure, it is important to note that small-batch production generally has _____ centralization, _____ technical complexity, and a(n) _____ overall structure.
low; low; organic
Dale's employees are unhappy about the schedule for a new project and wonder whether it will allow them to finish current projects on time. As the manager, Dale must _____ adjust the schedule.
make a decision about whether to
A systematic approach that has recently emerged, _____ focuses attention on the methods and processes used to achieve goals.
management by means (MBM)
A SWOT analysis of strengths and weaknesses of a petroleum company such as Exxon would include:
management competence and quality.
Single-use plans and standing plans fall within the category of:
management planning approaches.
In order to translate the chosen alternative into action during the implementation stage, managers need to use:
managerial, administrative, and persuasive abilities.
The true power of dashboards comes from applying them throughout the company which allows all of the following EXCEPT:
managers can predict the future.
Kelsey spends time working with both a functional and a divisional senior manager to reach joint decisions. Kelsey depends on excellent human relations skills with which to confront these managers and resolve conflicts. These managers are:
matrix bosses.
With regard to structural responses to strategy and the environment, goals of efficiency and a stable environment are associated with a _____ system, whereas goals that include innovation in a rapidly changing environment are more appropriate in a(n) _____ system.
mechanistic; organic
In order for operational goals to be effective, they:
need to be linked directly with rewards.
Because it has a large number of new clients in Spokane, Washington, a financial services company based out of Seattle is contemplating building a new office building in Spokane rather than renting space there. This situation is a(n):
nonprogrammed decision.
The approach managers use to make decisions usually falls into one of three types. The _____ is NOT one of those types.
nonprogrammed model
In order to get pizzas to customers as quickly as possible and with the fewest number of miles driven, a local pizza place uses an algorithm to assign orders to delivery drivers as they come in. This scenario is an example of a:
normative model.
Pema prefers the classical model of decision making because it helps define how a decision maker should make decisions. For this reason, this approach is considered to be:
normative.
Managers use _____ to direct employees and resources toward achieving specific outcomes that enable the organization to perform efficiently and effectively.
operational goals
Lennon spends much of each work day managing production and keeping production activities within budget. Lennon is most concerned with the organization's:
operational plans.
When faced with whether to design a structure that emphasizes the formal, vertical hierarchy or one with an emphasis on horizontal communication and collaboration, a manager would consider all of the following factors EXCEPT:
organization debt.
The deployment of resources is reflected in the organization's division of labor into specific departments and jobs, formal lines of authority, and mechanisms for coordinating diverse organization tasks. Deployment of resources is the task of the _____ function of management.
organizing
The transportation equipment used in Rayne's department is having some mechanical issues and the drivers have suggested that two of the vehicles be replaced. Rayne has asked one of the maintenance employees to submit a cost analysis of past and potential repairs as well as costs for the new vehicles. This request is:
part of the decision making.
As a metaphor for the process, diagnosing the causes of a problem or opportunity can be described as:
peeling an onion layer by layer.
A group of employees who are organized in a way similar to a formal department and brought together from all functional areas to focus on a specific task or project are considered to be a:
permanent team.
Of the four management functions, _____ is considered the most fundamental.
planning
The _____ technique breaks a decision-making group into two subgroups that develop proposals and discuss the various options until they arrive at a common set of understandings and recommendations.
point-counterpoint
The _____ model closely resembles the real environment in which most managers and decision makers operate.
political
Under conditions of uncertainty, it is best to use the:
political model or the administrative model.
When the decision situation involves inconsistent viewpoints or ambiguous information, the most appropriate decision-making model is the:
political model.
Research has shown that strategic thinking and planning _____ a firm's performance and financial success.
positively affect
The directive style is used by people who:
prefer simple, clear-cut solutions to problems.
A _____ occurs when organizational accomplishment is less than established goals, and an _____ exists when managers see potential accomplishment that exceeds specified current goals.
problem; opportunity
Most multinational companies want to achieve some degree of global standardization to hold costs down, therefore:
products typically require some tailoring to fit consumer preferences.
On Fridays, Gray's team has lunch catered in after the weekly recap staff meeting. The members of the team take turns ordering the meal for the following Friday based on whomever had the highest customer service rating for the week. Deciding who will order the meal is a(n):
programmed decision.
A corn processing plant is adding a new building for starch conversion processes. Coordinating the construction of the building and its integration into the functioning of the company has been assigned to Mason. His position is located outside the departments and is responsible for coordinating several departments to achieve desired project outcomes. Mason's job title is:
project manager.
Often, Julian must walk that line between the amount of careful study that is possible and relying on intuition. When neither analysis nor intuition is sufficient for making a good decision, Julian works hard to take a balanced approach by considering both rationality and intuition as important components of effective decision making. This approach is known as:
quasirationality
In the BCG matrix, balancing the portfolio offers a number of options. For example, a corporation can invest the cash earned from cash cows in _____ with the goal of nurturing them into future stars.
question marks
Because the focus of re-engineering is on horizontal workflows rather than functions:
re-engineering generally leads to a shift away from a strong vertical structure to one emphasizing stronger horizontal coordination.
Leigh is working to flatten out the structure of the organization by introducing horizontal teams. The goal of the teams is to help the organization achieve dramatic improvements in the company's costs and product quality. Leigh is engaged in:
re-engineering.
The first step in the decision-making process is:
recognize the presence of an opportunity or problem.
To achieve competitive advantage, companies develop strategies that incorporate all of the following elements EXCEPT:
reduce synergy.
Scenario planning involves:
rehearsing a framework within which future events can be managed.
A top leader's function in a matrix structure would include all of the following EXCEPT:
report to two supervisors simultaneously.
The after-action review, a technique that originated with the U.S. army, is meant to:
review the results of decisions on a regular basis in order to reflect on and learn from every decision made.
When the future outcomes associated with each decision alternative are subject to some chance of loss or failure:
risk is involved.
Often, Jordan needs to make a decision but cannot justify the time and expense of obtaining complete information that would perhaps lead to the best decision. Jordan is succumbing to:
satisficing.
Before an existing organization defines a new mission, goals, and strategies, it would engage in all of the following activities EXCEPT:
scan the internal environment and identify opportunities and threats.
When it comes to strategic thinking and planning, all of the following are true EXCEPT:
senior executives at today's leading companies do not want middle- and lower-level managers to think strategically.
Brett manages a group of couriers in a large city. About 100 couriers deliver as many as 900 packages or documents each day. Brett's package delivery and courier business is based on:
service technology.
Shawn manages a number of employees in a marketing consulting firm. She works closely with each of these employees in providing superior service and meeting clients' needs. To be effective, Shawn's span of management should be:
small.
Adrian manages the payroll function for his company. He advises other managers about ranges for pay raises for employees and changes in various benefits offered by the company. In this role, Adrian exercises:
staff authority.
Adrian is outlining the process for quarterly employee performance reviews. This situation is an example of a:
standing plan.
Murphy manages the agriculture chemicals division of a large organization. In addition to a unique product line, it also has its own mission, competitors, and markets relative to other units of the same organization. This division is known as a:
strategic business unit.
In formulating corporate strategy, Haris would like to prevent the organization from becoming too dependent on one business. Therefore, Haris has chosen a number of product lines that fit together in a synergistic way and provide an overall competitive advantage for the organization. These product lines are unique businesses known as:
strategic business units.
Two of the most important factors managers consider when designing an organization's structure are the organization's:
strategic goals and the nature of its workflow technology.
Lavender Unlimited manufactures products related to lavender, including oils for making soaps, scents, and a variety of other products. Because of an infestation of cicadas in France, the lavender crop there, from which Lavender Unlimited sources most of its lavender, has been nearly destroyed. Management at Lavender Unlimited is gravely concerned about lavender sources and how it will affect the strategic goals the company has for the coming year. In this scenario, the cicada infestation would be considered a:
strategic issue.
Managers may use persuasion, new equipment, changes in organization structure, or a revised reward system, also known as _____, to ensure that employees and resources are used to make a formulated strategy a reality.
strategy execution
The final step in the strategic management process is:
strategy execution.
As a top executive, Flannery would like to show managers in the company the cause-and-effect relationships among goals and plans. A good way for Flannery to do this visually is through a(n):
strategy map.
Which of the following is NOT considered to be a traditional approach to departmentalization?
structure
Peyton works in a company that has many levels of hierarchy. His span of control is fairly narrow. He works in a:
tall structure.
In order to achieve competitive advantage through strategy, managers can use geography, demographics, or interests to:
target customers.
A large fire broke out in the main warehouse at Jules's company. No one was hurt, but the fire did a lot of damage. To deal with the questions from suppliers, customers, and employees, Jules set up a _____ with members from various departments across the company to address important issues and make immediate plans for moving forward.
task force
Manufacturing technologies differ in terms of _____, which refers to the degree to which complicated machinery is involved in the production process to the exclusion of people; therefore, a continuous process would be _____ in this category.
technical complexity; high
As a strategic manager in a manufacturing company, Nicanor knows that making structural decisions must take into consideration pressures from the bottom up. These pressures would include:
technology and work processes.
The key areas of a strategy map might include learning and growth, internal processes, customer service, and financial performance goals. Such a map would likely show:
that achieving learning and growth goals will help the organization build internal business processes.
In the past, every decision to expand in a fast-paced industry has turned out successfully for Jian, as he predicted. Unfortunately, Jian's company is at risk of being acquired because the latest expansion entailed a great deal of debt and new product development did not keep the company's competitors from taking a significant market share. He believed this most recent expansion could only be positive, and yet it was not. Jian experienced:
the bias of overconfidence.
The primary difference between divisional and functional structures is that in a divisional structure:
the chain of command from each function converges lower in the hierarchy.
With a team-based structure:
the entire organization is made up of horizontal teams that coordinate their work and work directly with customers to accomplish the organization's goals.
In SWOT analysis, threats are the characteristics of:
the external environment that may prevent the organization from achieving its strategic goals.
In a SWOT analysis, strengths and weaknesses are an evaluation of _____, whereas opportunities and threats are an evaluation of _____.
the internal environment; the external environment
According to research, bad decisions in the business world are:
the result of errors in judgment that originate in the human mind's limited capacity.
In the matrix structure, _____ provide(s) traditional control within functional departments, and _____ provides coordination across departments.
the vertical structure; the horizontal structure
As a member of a permanent team at a cement manufacturing company, Shelby is constantly wary of allowing teams to cause too much decentralization. If teams and team members do not see the big picture of the corporation:
they may make decisions that are good for their group but bad for the organization as a whole.
All of the following are ways in which managers scan the environment and identify strengths and weaknesses that may affect an organization's ability to compete EXCEPT:
through government reports.
As manager of a research department, Kris reports to the manager of the household products division and to the vice president of new products research and development. Kris is a:
two-boss employee.
Many nonprogrammed decisions are related to strategic planning because:
uncertainty is great and decisions are complex.
Laurie manages an event planning company. When a client asks that an event be held outdoors, Laurie's company checks the location for whether a tent can be erected, plans for several scenarios, and then carefully checks weather forecasts near the time of the event. These actions are meant to address the:
uncertainty of the situation.
United Technologies is the parent company for several manufacturing concerns. United Technologies has two divisions: (1) Otis manufactures elevators and escalators and (2) UTC Climate, Controls, & Security deals with air conditioning and refrigeration, fire safety, surveillance, and security. This is an example of:
unrelated diversification.
Espen manages a modular furniture manufacturer. The organization Espen works for also owns a plastics manufacturer, which makes mostly storage containers. The organization recently purchased a smaller home goods retailer. This purchase takes the organization another step toward greater:
vertical integration.
The framework of the set of formal tasks and formal reporting relationships portrayed in the organization chart indicates the organization's:
vertical structure.
In the evolution of organization structures, _____ are considered to be the traditional form.
vertical structures
Though the _____, a firm subcontracts most of its major functions to separate companies and coordinates their activities from a small organization at headquarters.
virtual network structure
Coby's company has an exceptional research and development department with several of the industry's preeminent researchers. Coby would rather focus efforts on facilitating the work of these researchers rather than to manufacture and distribute the products. She outsourced those functions, along with the accounting and human resource functions to companies that do those functions well and at a lower cost than her company could. Coby's company is an example of a:
virtual network.
Lin is about to speak to the members of the department. The company's new strategy means everyone needs to focus on better communication. In the speech, Lin will lay out the highlights of the new plan, explain that she will attend monthly meetings with each of the teams to troubleshoot progress toward the strategy's goals, and provide an open door policy that allows any employee to come to her with suggestions for improving processes. In this way, Lin is using the management tool of:
visible leadership.
Technology refers to "production activities" and can be thought of as:
what is needed to transform organizational inputs into outputs.
Whether a chosen alternative will be successful depends on:
whether it can be translated into action.
The refugee crisis in the European Union (EU) is driven by regional conflicts and poverty and assisted by trafficking networks. These people from Africa and the Middle East continue to take enormous risks to enter EU territory. For several years now, despite the death of thousands who have undertaken this journey, no solution appears to be in sight. EU member countries blame their neighbors for either taking in too many refugees or for refusing to help. The capacity for actually addressing the sources of the problem remains limited. This situation has all the characteristics of a:
wicked problem.
The stuffed animals division of a toy manufacturer has only a small share of a slow-growth market, which provides little profit for the corporation. Where would this business fit in the BCG matrix?
Dog
After studying a number of business organizations, _____ proposed that business-level strategies are the result of understanding competitive forces in the company's environment.
Michael E. Porter
Which of the following levels in the organizational hierarchy is typically responsible for turning strategic plans into tactical plans?
Middle managers
Managers use a number of planning methods for performance management. Which of the following would NOT be included among those methods?
Mission statements
The management scholar who first described the management by objectives (MBO) system is:
Peter Drucker.
Which of the following is found among the actual benefits of planning and its generally positive effects on a company's performance?
Planning can reduce uncertainty for employees and clarify what they should accomplish.
Which of the following characteristics would apply to a program?
Plans for attaining a one-time organizational goal
Google is known for the benefits it provides to employees, such as gym memberships, generous vacation, its gourmet food, and 24/7 tech support. It also encourages employee creativity and pursuit of passion projects. In which of the following categories of a SWOT analysis would this characteristic appear?
Strengths
_____ are designed to help execute major strategic plans and to accomplish a specific part of the company's strategy.
Tactical plans
Which of the following statements about tactical plans is true?
Tactical plans define what major departments and organizational subunits will do to implement the organization's strategic plan.
Amal is in the process of defining contingency plans and scenarios so that top management can apply flexible goal setting as necessary. This task falls within which of the following portions of the overall organizational planning process?
Translate the plan
As a manager in a high-tech and fast-moving industry, Cameron is a big advocate of planning. Under which of the following situations might Cameron find that planning is NOT helpful?
When an employee suggested shifting some workers from one project to another, which would allow both projects to be finished by their due dates and avoid the need for overtime, Cameron decided not to shift any employees. Ideas from employees do not fit with predetermined action plans.
Because planning can reduce uncertainty for employees and clarify what they should accomplish, it is:
a benefit for organizational performance.
The planning process begins with:
a formal mission that defines the basic purpose of the organization.
Kyrie wants to keep track of the effectiveness of the company's social media efforts. A good way for Kyrie to do this would be through:
a performance dashboard.
Green Dot Bioplastics manufactures a number of biodegradable biocomposites that can be used as containers. Top managers have challenged employees to submit ideas for new products beyond containers to be made from biocomposites. This challenge represents:
a stretch goal.
The accounts of several online customers of a small state bank were hacked and their account information stolen. The bank, because of its _____, proactively contacted all customers after freezing access to the accounts and offered them an alternative hotline to restore secure access to those accounts.
crisis prevention
Some businesses handle corporate-level strategy by moving into new lines of business as a way to expand the firm's business operations to produce new kinds of valuable products and services. This approach is known as a:
diversification strategy.
Most managers who have used management by objectives (MBO) feel that it:
helps employees see how their jobs and performance contribute to the business.
The increasing importance of BHAGs and stretch goals is a result of:
how fast things move in today's environment.
Lynn's group processes insurance claims. The operational goals include processing 1,000 claims per week. Two of the employees in her group retired last month, and the company has stated it will not be replacing them. Without them, her group won't be able to process more than 800 claims per week. The goal for Lynn's group:
is challenging, but not realistic.
On the production line that Payton manages, new technology makes it possible for each employee to finish 30 units per day. Despite these improvements, the production goal for each employee is 10 units per day. Employees are averaging 14-17 units and do not feel motivated to increase output further. The goal for Payton's group:
is realistic, but not challenging.
In setting goals for the department, Kevyn wants to be able assess what is important to the organization and how well the organization is progressing toward attaining its strategic goals. To do so, Kevyn would select a few carefully chosen goals with clear measures of success, also referred to as:
key performance indicators.
In crisis preparation, the three steps of detailed planning to handle a crisis when it occurs include all of the following EXCEPT:
mentally rehearse different scenarios of varied changes.
At Patagonia's Web site, this statement is posted. "Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis." This is an example of a well-designed:
mission statement.
Because personal hygiene is not the same throughout the world, Johnson & Johnson tailors its approach in different markets. Its goal is to have a "big-company impact" with "small-company environments" and in this way satisfy both employees and customers at all locations. This approach is considered a(n):
multidomestic strategy.
Because stretch goals are typically beyond the current levels:
people must innovate to find ways to reach them.
Management by objectives (MBO) is a tool managers can use in the _____ aspect of the overall organizational planning process.
performance management
Shea's department uses management by objectives (MBO) as its system of performance management. To assess whether both managers and employees are on target with their performance, everyone engages in:
periodic checkups.
As Jackie's company moves into its second year of operation, she will review the company goals and revise as necessary as well as specifying the actions to be taken to achieve those goals. Jackie is engaged in the process of:
planning.
Dallas makes a donation to the Cancer Society. As a standing plan, the company Dallas works for has a _____ to provide a matching amount to the Cancer Society.
policy
Single-use plans are more likely to apply to _____, whereas standing plans are used in the case of _____.
projects; procedures
All the employees in Tenzin's department are engaged in a process to answer the question, "What are we trying to accomplish?" Tenzin and his coworkers are in the _____ step of management by objectives.
setting goals
In organizations, goals are defined by an individual or group. In other words, they are:
socially constructed.
Partners Lupe and Kelly have just written what they believe to be a good mission statement for their company. The goal in writing a mission statement generally includes all of the following EXCEPT to:
specify organizational action steps.
An audit of both internal and external factors that influence the company's ability to compete are part of a SWOT analysis. SWOT is an acronym for:
strengths, weakness, opportunities, and threats.
Organizations can be disrupted by any number of events. With scenario planning, managers mentally rehearse different scenarios based on anticipating the varied changes that could affect the organization. Typically, _____ scenarios are developed for each set of factors.
two to five
The Internet affects competitive forces in numerous ways. All of the following are examples of those influences EXCEPT:
with the leveling force of the Internet and information technology, it has become less difficult for many companies to find ways to distinguish themselves from their competitors, which intensifies rivalry.
The company Morgan works for uses management by objectives. Morgan is in the midst of a periodic review to see whether the department is on target with meeting its goals. She finds that employees are not using the safety equipment that was to be implemented as part of the action plan. Her next step is to:
work with employees to take corrective action.
In a turbulent environment, a manager will generally find that planning:
All of these answers are correct.
What is a BHAG, or big hairy audacious goal?
A sizable and inspiring goal that shifts people's thinking
Which of the following statements about a strategy map is true?
A strategy map provides a powerful way for managers to see the cause-and-effect relationships among goals and plans.
Which of the following is a typical characteristic of a mission statement?
A well-designed mission statement can enhance employee motivation and organizational performance.
Which of the following statements about scenario building is true?
Scenarios are meant to expand the range of future possibilities managers should consider and prepare for.
Which of the following would be specified within operational plans?
Schedules
_____ are developed to achieve a set of goals that are not likely to be repeated in the future.
Single-use plans
In management by objectives (MBO), _____ define the course of action needed to achieve the stated goals and are made for both individuals and departments.
action plans
Strategy formulation includes:
assessing the external environment and internal problems to identify strategic issues and then integrating the results into goals and strategy.
Because the previous company Riley worked for dealt with several crises that eventually caused the company to close, Riley was committed to establishing a crisis management plan at the new company. The key to any crisis management plan is that it:
be a detailed written plan that specifies the steps to be taken.
Alexis manages a research laboratory at a chemicals manufacturer. To carry out their research, employees need to have access to various chemical substances. If these substances are not available, research is interrupted and new products are delayed, affecting company performance. Alexis regularly assesses alternate sources for these substances and ways to keep projects on schedule. These plans are:
contingency plans.
In order to help an organization respond to emergencies, setbacks, or unexpected conditions, managers need to develop:
contingency plans.
Porter's studies resulted in all of the following findings EXCEPT:
cost leadership strategy is concerned with pursuing innovation and growth rather than maintaining stability.
The goals for the production department have been set at high levels, and as manager of the production department, Aubrey had a difficult time translating those goals into plans. Now, a month later, Aubrey is finding that a number of employees are falsifying the number of defective products in order to meet the goals given them. In this case, planning has:
created too much pressure.
In selecting the mission and strategic goals for an organization, the top executive's role is to:
get people thinking as a team and negotiating about which goals are the important ones to pursue.
When the need for global integration is highest, a corporate global strategy should aim toward:
globalization strategy or glocalization strategy.