Management Exam 4 Part 2

The ________ reflects the tendency to determine the frequency of an event and its causes by how easy these events and causes are to remember.

Availability heauristic

According to March and Simon, decision makers are constrained by ________, an ability to reason that is limited by the capabilities of the human mind itself.

Bounded rationality

________ is the tendency of decision makers to invest additional time, money, or effort into bad decisions or unproductive courses of action that are already draining an organization's resources.

Escalation of commitment

A regional marketing structure allows organizations to customize products to meet the needs of customers in different world regions.

False

Employees in matrix-structure product teams are permanent members of two-boss teams.

False

Organizational design is the formal system of task and reporting relationships that controls, coordinates, and motivates employees so that they cooperate and work together to achieve an organization's goals.

False

Task analyzability is the number of new or unexpected problems or situations that a person or functional group encounters while performing tasks or jobs.

False

All of the following are advantages of group decision making EXCEPT ________.

Faster decision making

Which of the following statements is FALSE?

IT systems cannot be used to make nonprogrammed decisions.

Organizational members are engaged in ________ when they choose how to respond to new problems or novel opportunities.

Nonprogrammed decision making

If an organization's work force is highly skilled, the organization will LEAST LIKELY ________.

Possess rigid rules to regulate behavior

Decision making in response to ________ occurs when individual, group, or organizational goal attainment and performance are threatened.

Problems

A decentralized structure is appropriate with small-batch technology.

True

A mechanistic structure is used to induce employees to behave in predictable, accountable ways.

True

An organic structure is designed to promote flexibility so that employees can initiate change and adapt quickly to changing conditions.

True

As an organization grows, and its activities become more diverse and complex, a functional structure may no longer allow it to coordinate its activities effectively.

True

Grouping by function improves an organization's ability to motivate employees.

True

The hierarchy of authority exemplifies the relative authority that each manager has - extending from the CEO at the top down through the middle managers and first-line managers, to the nonmanagerial employees who actually make the goods or provide the services.

True

When the organizational environment lacks stability, organizations are more likely to decentralize authority and empower employees to make important operating decisions.

True

In order for an organization to be effective in organizational design, what is the last thing it should do?

decide what design choices to make

All of the following are possible coordination advantages offered by a divisional structure EXCEPT ________.

divisional managers enjoy a large measure of autonomy

A decision to extend a store's operating hours is MOST LIKELY to be accepted by the store employees ________.

if they participated the decision process

When Japanese car companies require suppliers of car components to meet stringent quality specifications they are standardizing ________.

inputs

Organizing tools used to increase communication and coordination among functions and divisions BEST describes ________.

integrating mechanisms

Nonprogrammed decisions can become programmed decisions if they

need to be made repeatedly

Top management members do not want a tall organization, so they should ________.

offer training to employees to enable them to make more decisions

An organization CANNOT standardize activities at the ________ stage.

personnel

A group is trying to decide how to spend government aid. The group asks outside experts to come in and give their opinion. The manager decides that she thinks the first expert had great points and she lets all group members know that she supports that option. Everyone agrees with her, but she has a sinking suspicion that this is only because she will soon be determining who is getting bonuses. She is worried that there might be flaws with the chosen option. In the future, she could BEST avoid the possibility of groupthink by ________.

refraining from giving her opinion until everyone has expressed their view

A ________ is a permanent group, made up of representatives from two or more functions, that meets regularly.

team

Managers are likely to design an organizational structure that is formal and controlling in all of the following situations EXCEPT ________.

when the technology is complex and hard to understand