MGMT 301 exam 2
Agave Pharma has opted for a top-down approach to changing how the company functions so that efficiency is increased. What is the change likely to entail? 8
A fast or revolutionary approach involving only the top managers
When Electrix, Ltd., sells its TVs and DVD players using the same basic marketing approach in various countries, it is pursuing ________. 6
A global strategy
Stag Plugs, Ltd., opts to take a bottom-up approach in order to draft a new attendance policy. What will the approach entail? 8
A gradual or evolutionary approach involving managers at all levels
Management by objectives is a mechanism of control with ________ organizational control systems. 8
Behavior
To determine an organization's mission, managers must first define its ________. 6
Business
A real-estate agent, who is paid on the basis of the percentage of the sale price of a house sold, is said to be paid on a(n) ________ basis. 9
Commission
According to ________ theory, managers should choose a structure that fits the circumstances affecting their organization the most. 7
Contingency
The formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about whether the organization's strategy and structure are working efficiently and effectively are known as ________ systems. 8
Control
The industries and national markets an organization intends to compete in and the reasons why are specified in a company's _______-level strategy 6
Corporate
Allocating authority in an organization, which gives lower-level managers and nonmanagerial employees the right to make important decisions about how to use organizational resources, is an example of ________. 7
Decentralization of authority
The most immediate and potent form of behavior control is ________. 9
Direct Supervision
Jane, an employee at Paulson, has been promoted recently due to the huge success of two projects she had delivered that generated more revenue and further projects for PP Tech. She is highly motivated by the promotion and perceives ________ justice of the firm to be high. 9
Distributive
The units of Zach, Ltd. are grouped together such that the functions that work together to produce a product are grouped together. This is an example of a(n) ________ structure. 7
Divisional
Which of the following structures is an organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer? 7
Divisional
The managers of a division are given a fixed budget and are then evaluated on the basis of their ability to produce goods or services. This is an example of a(n) ________ budget approach. 8
Expense
Maria, a middle manager, enjoys talking over work situations with Daniel, her subordinate, who is a first-line supervisor. However, she notices that Daniel frequently brings problems to her that he expects her to solve, rather than solving them himself. Since Daniel has been a supervisor for a significant length of time, he should be more independent in his actions. She stops acting interested in the problems Daniel brings to her and makes her responses brief. Maria is practicing ________. 9
Extinction
"Attitude" refers to how hard an employee works for an organization. 9
False
According to Michael Porter's theory, it is possible for managers to pursue both a low-cost strategy and a differentiation strategy at the same time. 6
False
Acor Explosives bases sales representatives' pay on the percentage of sales dollars they generate. They are using a commission pay program. 9
False
An inert culture is one that controls employee behavior and attitudes through its strong and cohesive organizational culture. 8
False
Behavior that is performed in order to acquire either a material or a social reward is called intrinsically motivated behavior. 9
False
During the input stage, the most common type of control procedure is concurrent control, which gives managers immediate feedback. 8
False
Punishment involves removing a negative consequence when dysfunctional behaviors occur. 9
False
Synergy is obtained by apportioning financial resources among divisions to increase financial returns or spread risks among different businesses. 6
False
When managers organize divisions according to the types of customer to whom they market their products, they are focusing on a product structure. 7
False
Beswick Widget Ltd. sets up a system to monitor unit sales of its products to measure changes taking place in customer tastes and the possible resulting impact on future sales. With this system, Beswick is using ________ control. 8
Feedback
The extent to which a job gives the worker direct and clear information about how well the worker is performing the job is known as ________. 7
Feedback
A company that is serving only a few market segments has most likely adopted a ________ strategy. 6
Focused differentation
Madison Hotels sold a foreign organization the right to use its brand name and operating know-how in return for a lump-sum payment and a share of the profits. This is an example of ________. 6
Franchising
The planning and strategy making necessary to increase the efficiency and effectiveness of a particular function are the responsibility of a ________. 6
Functional manager
The decision of a company to invest in state-of-the-art European production facilities is an example of a ________-level strategy. 6
Funtional
In general, motivation of employees in an organization is high with ________ interpersonal justice and ________ informational justice. 9
High; high
A Place for Pizza established a basic division of labor among "chefs" and "food servers" in which chefs perform all tasks involved in actual cooking and food servers carry out all tasks involved in giving food to the customers. A Place for Pizza implemented ________. 7
Job design
BIC, makers of ballpoint pens and razors, concentrates on making its products less expensive than its rivals. BIC is pursuing a _______ strategy. 6
Low-cost
Managers are able to be responsive to the needs of their customers and maintain flexibility in making decisions regarding customers' changing needs with a ________ structure. 7
Market
Which of the following allows an organization to manage its global value chain and to find new ways to reduce costs while increasing the quality of products? 7
Network structures
The standard of performance that measures efficiency at the corporate level of the organization is known as ________. 8
Operating costs
Alkyl, Ltd., one of the leading shoe manufacturers, enters into a contract with Blinx - a foreign manufacturer - to only manufacture its shoes. In this scenario, Alkyl, Ltd. is following the ________ strategy. 7
Outsourcing
A worker who is paid on the basis of the number of computer components produced per day is said to be paid on a(n) ________ basis. 9
Piece-rate
A general guide to action for the managers of an organization is known as a ________. 6
Policy
At Xen, Ltd., each product line is managed within a division. In each of these divisions, the division manager is responsible for creating the business-level strategy for the product line. Xen, Ltd., is utilizing a ________ structure. 7
Product
A subordinate performs a dysfunctional behavior, and her manager administers an undesired consequence to the subordinate. This is known as ________. 9
Punishment
The CEO of a company would like to know whether his managers can pay off claims of short-term creditors without selling inventory. What ratio will help him understand the company's liquidity? 8
Quick ratio
An organization's net income before taxes divided by the total assets of the organization is known as ________. 8
Return on investment
Frame Corporation updates its five-year plan annually to take into account changing conditions within the organization and in the organization's external environment. Which of the following best explains this plan implemented by Frame Corporation? 6
Rolling plan
According to Maslow's hierarchy of needs theory, which of the following is the highest level of needs of workers? 9
Self-actualization
The extent to which a job requires the worker to use a wide range of knowledge and abilities is known as ________. 7
Skill variety
According to goal-setting theory, to stimulate high motivation and performance, goals must be ________. 9
Specific and difficult
The cluster of decisions that managers make to assist an organization to achieve its goals is known as ________. 6
Strategy
Managers at Dimensions, Inc., analyze the current situation of their organization and then develop plans to help their organization accomplish its mission and achieve its goals. This is known as ________. 6
Strategy formulation
The reason managers pursue vertical integration is that it ________. 6
Strengthens competitive advantage
Mr. Pierson reads an article in the newspaper about one of his students who has been appointed to CEO of a multinational corporation. At this moment, Mr. Pierson is experiencing ________. 7
Task significance
A compensation plan of an organization that bases pay on performance levels is called a merit pay plan. 9
True
Adaptive cultures are those whose values and norms help an organization to build momentum and to grow and change as needed to achieve its goals and be effective. 8
True
Managers pursuing a focused differentiation strategy serve just one or a few segments of the market and aim to make their organization the most differentiated company serving that segment. 6
True
The idea that top management should design an organization with as few levels of authority as is needed to conduct the business of the organization in an efficient and effective manner is known as the minimum chain of command. 7
True
The nature of an organization's human resources is an important determinant of the organization's structure. 7
True
The plan for implementing a new strategy requires the development of new functional strategies. 6
True
Too much decentralization has disadvantages for an organization. 7
True
William, a manager at Space Solutions, Ltd., makes sure the outcomes that are offered to subordinates for their good performance are rewards that they will value. William is working on ________. 9
Valence
The step of the control process utilized by managers to evaluate whether the actual performance of the organization differs significantly from the standards of performance that assess the organization is ________. 8
comparing actual performance to the standards
Danny, the manager of Wader Shoes, installed new machinery to speed up the production process after the assigned targets were not achieved for the third week of the month. With regard to the control process, Danny is ________. 8
initiating corrective actions
A computer programmer who does his or her job well because he or she enjoys solving complicated computer problems is said to be ________. 9
intrinsically motivated
Barbara is the dean of the College of Business. She enjoys the pace of her work and the feeling of accomplishment she gets when she is able to initiate a new program to help students. The salary she receives is attractive and allows her to travel abroad on her vacations. Barbara ________. 9
is both intrinsically and extrinsically motivated
The managers of Foodex, a fast food restaurant, record outputs on a daily basis by counting how many customers their employees serve, the time each transaction takes, and how much money each customer spends every day. With reference to the control process, the managers of Foodex are ________. 8
measuring the actual level of performance of employees
The greater the level of uncertainty in the organization's environment, the ________. 7
more likely managers are to design a structure and a culture that are flexible
Top managers in a company decide between themselves to implement an employee stock ownership plan for all their employees. This is an example of a company taking a ________. 8
top-down approach to promote adaptive culture
Specific, difficult goals may be detrimental for ________. 9
work that is very creative and uncertain