MGMT Exam 3 Cengage

A _____ transforms resources into an intangible output and creates time or place utility for its customers. a. service organization b. manufacturing organization c. production firm d. conglomerate

a. service organization

Which of the following is true of organizing? a. It encompasses planning annual goals of a firm. b. It reduces the overall efficiency of a firm. c. It applies exclusively to the top management of a firm. d. It involves deciding how to group elements in a firm.

d. It involves deciding how to group elements in a firm.

Michelle is the Chief Executive Officer of a company. It is the duty of her company's board of directors to counsel Michelle on various matters of the company. However, it is up to Michelle if she wants to seek their opinion or not. She may choose to pay heed to the opinions of the board of directors or ignore them. In this scenario, the board of directors of the company is an example of a form of staff authority called _____. a. functional authority b. compulsory advice c. administrative advice d. advise authority

d. advise authority

Minkolet, an accessory company, requires that all its employees, including sales personnel, accountants, human resource personnel, and research personnel, report to the Chief Executive Officer. All decisions are made by the Chief Executive Officer. The lower-level managers and the employees do not have a say in any of the decisions made. Minkolet is an example of a _____ organization. a. decentralized b. restructured c. tall d. centralized

d. centralized

Which of the following job elements is listed under the job specification part of the job analysis? a. Abilities needed to perform a job b. Tools needed to perform a job c. Working conditions needed to perform a job d. Equipment needed to perform a job

a. Abilities needed to perform a job

Timeless Ventures, a renowned watch store, decides to sell electronic goods, clothes, and footwear in addition to selling watches. According to the areas of organization change, which of the following processes will Timeless Ventures have to implement to carry out this major transition? a. Business process change b. Enterprise resource change c. Organization development d. Organization divestment

a. Business process change

_____ refers to the amount of products, services, or both that can be produced by an organization. a. Capacity b. Serviceability c. Margin d. Layout

a. Capacity

_____ is the financial remuneration given by an organization to its employees in exchange for their work. a. Compensation b. Remittance c. Honorarium d. Restitution

a. Compensation

_____, a dimension of quality, refers to the degree to which a product's design and operating characteristics meet established standards. a. Conformance b. Performance c. Serviceability d. Durability

a. Conformance

_____ has two forms, oral communication and written communication. a. Interpersonal communication b. Organizational Communication c. Vertical communication d. Digital Communication

a. Interpersonal communication

Which of the following is true of the grapevine? a. It is affected when organizations move to suburbs. b. It is independent of new forms of social media. c. The information it carries is usually inaccurate. d. A manager has no control over it.

a. It is affected when organizations move to suburbs.

Which of the following is a feature of upward communication? a. It is exemplified by requests, complaints, and financial information. b. It facilitates coordination among interdependent units. c. It involves colleagues and peers at the same level of an organization. d. It flows laterally within an organization.

a. It is exemplified by requests, complaints, and financial information.

Which of the following is true of company productivity? a. It is the level of productivity achieved by an individual enterprise. b. It is how well an organization uses all of its resources. c. It is the total level of productivity achieved by a country. d. It is the total productivity achieved by all the firms in a particular industry.

a. It is the level of productivity achieved by an individual enterprise.

Which of the following is true of the job characteristics approach? a. It takes into account the work system and employee preferences. b. It is a method of job specialization. c. It suggests that low growth-need strength leads to higher employee motivation. d. It involves systematically moving employees from one job to another.

a. It takes into account the work system and employee preferences.

Which of the following is an example of internal recruiting? a. Notifying existing employees of new openings b. Conducting campus interviews c. Hiring people through employment agencies and executive search firms d. Recruiting walk-in candidates

a. Notifying existing employees of new openings

_____ is any substantive modification to some part of the organization. a. Organization change b. Organization structuring c. Organization investment d. Organization planning

a. Organization change

_____ is deciding how best to group organizational elements. a. Organizing b. Assimilating c. Marketing d. Authorizing

a. Organizing

Which of the following is true of process innovations? a. They are changes in the way products or services are manufactured, created, or distributed. b. They affect the broader context of development and do not directly affect manufacturing. c. They refer to changes in the physical characteristics of existing products or services. d. They are less important than product innovations when innovation enters the phase of growth.

a. They are changes in the way products or services are manufactured, created, or distributed.

Unit and individual productivity refers to the productivity achieved by: a. a department within an organization. b. an individual company. c. a country. d. all the firms in a particular industry.

a. a department within an organization.

Unlike a centralized organization, decision-making power and authority in a decentralized organization are: a. delegated as far down the chain of command as possible. b. distributed equally among all managers. c. given to the most senior employees in the organization. d. retained at the higher levels of management.

a. delegated as far down the chain of command as possible.

Silver Streak, a chain of luxury hotels, departmentalizes into hospitality, food and beverage, and housekeeping divisions. This is an example of _____. a. functional departmentalization b. product departmentalization c. customer departmentalization d. location departmentalization

a. functional departmentalization

A _____ is a position in the direct chain of command that is responsible for the achievement of an organization's goals. a. line position b. matrix position c. staff position d. divisional position

a. line position

A change in the distribution of authority is an example of a change in: a. organizational structure and design. b. technology and operations. c. people and attitudes. d. business process and finance.

a. organizational structure and design.

Individual barriers to communication include: a. poor listening skills. b. status or power differences. c. different perceptions. d. noise.

a. poor listening skills.

Amy, a human resource (HR) manager of a consultancy firm, assigns the task of narrowing down potential candidates from online job portals to her subordinate. She assigns the responsibility of conducting telephone interviews to another subordinate. Which of the following basic functions of organizational structuring is Amy performing? a. Evaluating results of strategies b. Distributing authority among jobs c. Grouping jobs d. Setting organizational goals

b. Distributing authority among jobs

_____ is the set of organizational activities directed at attracting, developing, and maintaining an effective workforce. a. Organization design b. Human resource management c. Job diversification d. Employee engagement

b. Human resource management

Which of the following is most likely a consequence of adopting flat organizational structures? a. Decreased employee productivity b. Increased managerial responsibility c. Decreased communication and flexibility d. Increased degree of required interaction

b. Increased managerial responsibility

Which of the following is true of a process layout? a. Its major drawback is that it can create only one range of products. b. It centralizes each type of conversion task in a single workstation or department. c. It is used for creating a few very large and complex products. d. Its setup of conversion tasks is identical to product layouts.

b. It centralizes each type of conversion task in a single workstation or department.

Which of the following is true of ranking, a common method of employee appraisal? a. It makes the process of assessing people in different work groups effortless. b. It compares employees directly with each other and orders them from best to worst. c. It helps assess large groups of employees easily. d. It provides useful information for feedback because it lists out in detail the quality of one's work.

b. It compares employees directly with each other and orders them from best to worst.

Which of the following is true of automation? a. It operates slowly and makes many errors. b. It relies on feedback, information, sensors, and a control mechanism. c. It adjusts machine settings to enhance the complexity and the flexibility of scheduling. d. It relies on computers to design or manufacture products.

b. It relies on feedback, information, sensors, and a control mechanism.

_____ is the physical positioning or geographic site of facilities and must be determined by the needs and requirements of an organization. a. Layout b. Location c. Margin d. Design

b. Location

_____ is the radical redesign of all aspects of a business to achieve major gains in cost, service, or time. a. Innovating b. Reengineering c. Synchronizing d. Integrating

b. Reengineering

_____ are the parts of the automated system that gather information and compare it to preset standards. a. Robots b. Sensors c. Control mechanisms d. Flexible manufacturing systems

b. Sensors

Marina, the store manager of a store that sells women's shoes, decides to change the focus of the store to women's handbags. Following the Lewin model, which of the following should be Marina's first step? a. She should decide upon an appropriate strategy to change the focus of the store. b. She should explain to her subordinates the necessity to make the change. c. She should identify the need to change the focus of the store. d. She should reinforce and support the change.

b. She should explain to her subordinates the necessity to make the change.

Which of the following is an external force that drives an organization toward change? a. Workers' attitudes toward the organization b. Technological innovations in the market c. A demand by a firm's employees for higher compensation d. Human resource policies of the organization

b. Technological innovations in the market

Which of the following is an advantage of product departmentalization? a. Organizations are able to use skilled specialists to deal with unique customers. b. The speed and effectiveness of decision making are enhanced. c. Administrative costs decrease as a result of product departmentalization. d. Managers focus on helping their departments instead of others in an organization.

b. The speed and effectiveness of decision making are enhanced.

Which of the following is true of knowledge workers? a. They tend to identify more strongly with their organizations than with their professions. b. Their contributions to an organization are based on what they know. c. They do not require extensive or highly specialized training. d. Their skills do not become obsolete.

b. Their contributions to an organization are based on what they know.

Which of the following is true of unions? a. They misrepresent the interest of employees. b. They limit management's freedom. c. They increase the tax bracket of employees. d. They increase the occurrence of favoritism in an organization.

b. They limit management's freedom.

Which of the following is true of line managers? a. They hold informal or illegitimate positions in an organization. b. They work toward organizational goals. c. They are of two types, functional authority and advice authority. d. They provide expertise, advice, and support.

b. They work toward organizational goals.

Employees at a data analytics firm are paid a certain extra amount of money every month. This amount is dependent on their work output for that month. If their work output is below a certain level of productivity, they do not receive the extra money. This extra amount is an example of ____. a. a benefit b. an incentive c. salary d. individual wage

b. an incentive

The purpose of work-in-process inventories is to _____. a. provide the materials needed to make a product b. enable overall production to be divided into stages of manageable size c. provide ready supply of products on customer demand and enable long, efficient production runs d. distribute products to customers

b. enable overall production to be divided into stages of manageable size

Unlike reciprocal interdependence, sequential interdependence: a. exists when activities flow both ways between units. b. exists when activities generally flow one way between units. c. is the most complex form of interdependence. d. is the lowest level of interdependence.

b. exists when activities generally flow one way between units.

Lomanta, a jewelry company, has seven outlets in a city. Each outlet has its own finance, sales, and designing departments. All transactions are recorded for each outlet separately and are finally summed together on a monthly basis to calculate profits or losses. The different outlets of Lomanta exhibit _____. a. direct interdependence b. pooled interdependence c. sequential interdependence d. reciprocal interdependence

b. pooled interdependence

The final step in the Lewin model is: a. unfreezing. b. refreezing. c. implementation. d. planning.

b. refreezing.

Touchcom Inc. is an organization that connects buyers and sellers of specialized electronic equipment. It does this via the Internet. Touchcom Inc. is a _____. a. manufacturing organization b. service organization c. resource organization d. product-service mix organization

b. service organization

Latitia instructs all the employees of her organization to report to her directly. She asks them to send her individual end-of-day updates as well. Latitia incorporates the _____ as a component of chain of command in her organization. a. dispersion of command b. unity of command c. decentralization of command d. horizontal structure of command

b. unity of command

Maya is the project leader of a construction project. She assembles a group of employees to work with her on the project. The group collectively decides how specific jobs will be allocated to each of the members. In this scenario, Maya uses the job design method involving _____. a. the job characteristics approach b. work teams c. job specialization d. job enlargement

b. work teams

_____ is the stage in which an organization takes a developed idea and uses it in the design, manufacturing, or delivery of new products, services, or processes. a. Application growth b. Application launch c. Innovation application d. Innovation maturity

c. Innovation application

Which of the following best describes affirmative action? a. Preventing discrimination of an organization's existing employees on the basis of race, sex, age, nationality, and cultural differences b. Ensuring that employees hired are from a culture similar to that of the existing employees c. Intentionally hiring qualified employees from racial, sexual, and ethnic groups that are underrepresented in a firm d. Requiring that both men and women doing the same job are paid the same salary

c. Intentionally hiring qualified employees from racial, sexual, and ethnic groups that are underrepresented in a firm

_____ in organizations serve as a solid basis for social support. a. Individual skills b. Micro-management c. Interpersonal relations d. Organizational skills

c. Interpersonal relations

Which of the following is true of 360-degree feedback? a. It is based on rating scales associated with behavioral anchors. b. It fails to provide detailed information to an employee. c. It must be handled so as not to breed fear in a workplace. d. It is less effective than a conventional appraisal given by a boss.

c. It must be handled so as not to breed fear in a workplace.

Which of the following is true of total factor productivity? a. It provides insights into how a change in different resource inputs affects productivity. b. It uses only one category of resource. c. It requires all inputs to be expressed in the same terms. d. It shows direct results of a specific managerial action.

c. It requires all inputs to be expressed in the same terms.

_____ is an approach to communication that involves the manager literally roaming in an organization and having spontaneous conversations with others. a. Management by introspection b. Management by interpersonal communication c. Management by wandering around d. Management by prosecution

c. Management by wandering around

______ is any communication exchange that does not use words or uses words to carry more meaning than the strict definition of the words themselves. a. Upward communication b. Interpersonal communication c. Nonverbal communication d. Horizontal communication

c. Nonverbal communication

In the context of coordination among departments in an organization, _____ represents the lowest level of interdependence. a. Sequential interdependence b. Reciprocal interdependence c. Pooled interdependence d. Direct interdependence

c. Pooled interdependence

_____ is concerned with buying the materials and resources needed to produce products and services. a. Materials control b. Inventory management c. Purchasing management d. The just-in-time method

c. Purchasing management

Which of the following is a U.S. government pension plan to which both employers and employees contribute? a. National Insurance b. Medicare c. Social Security d. Medicaid

c. Social Security

_____ is the set of processes and systems used by organizations to convert resources into products or services. a. Manufacturing b. Automation c. Technology d. Agrimation

c. Technology

Which of the following is true of assessment centers? a. They are permanent facilities established in every firm according to the law. b. They conduct drug tests and credit checks. c. They are particularly good for selecting current employees for promotion. d. They reveal inherent biases in the way people perceive and judge others at a first meeting.

c. They are particularly good for selecting current employees for promotion.

Which of the following is true of arbitrators? a. They are solely paid by the union members of an organization. b. They employ union officials to hear grievances. c. They render decisions that both the union and management must obey. d. They are criminal law experts who discuss contract violations with the aggrieved employees.

c. They render decisions that both the union and management must obey.

Unlike job enlargement, job enrichment involves: a. decreasing the responsibility an employee has toward a job. b. moving frequently from one job to another. c. increasing the control a worker has over a job. d. allowing an entire group to design a work system.

c. increasing the control a worker has over a job.

Interpersonal relations are personal and positive when the parties _____. a. are allowed to work completely on their own b. mostly share common family c. know each other and have mutual respect d. engage in workplace gossip

c. know each other and have mutual respect

In the case of a knowledge worker, the failure to update skills may result in the: a. loss of synergy in an organization. b. increase in the population of labor unions. c. loss of competitive advantage for an organization. d. decline of highly specialized training opportunities for other workers.

c. loss of competitive advantage for an organization.

Span of management is the number of: a. managers in an organization. b. hierarchical layers in a firm. c. people reporting to a particular manager. d. top managers in an organization.

c. people reporting to a particular manager.

In human resource management (HRM), _____ refers to teaching operational or technical employees how to do the job for which they were hired. a. framing b. recruiting c. training d. satisficing

c. training

_____ is power that has been legitimized by an organization. a. Specialization b. Coordination c. Delegation d. Authority

d. Authority

_____ involve interacting with supervisors, subordinates, peers, and others outside an organization. a. Informational roles b. Decisional roles c. Observational roles d. Interpersonal roles

d. Interpersonal roles

Which of the following is true of functional departmentalization? a. It groups and arranges activities around products or product groups. b. It groups jobs based on basic managerial functions such as planning and controlling. c. It groups activities on the basis of defined geographic sites or areas. d. It groups together jobs involving the same or similar activities.

d. It groups together jobs involving the same or similar activities.

Which of the following best defines communication? a. It is the intervention in a dispute in order to resolve it. b. It is the process of managers wandering around and having spontaneous conversations. c. It is the pattern through which the members of a group first introduce themselves. d. It is the process of transmitting information from one person to another.

d. It is the process of transmitting information from one person to another.

Which of the following is a disadvantage of oral communication? a. It does not communicate facial expressions and gestures of a sender. b. It does not allow prompt feedback and interchange. c. It is invariably more time consuming than written communication. d. It leaves no permanent record of transaction.

d. It leaves no permanent record of transaction.

Which of the following is true of manufacturing? a. It does not require an organizational strategy. b. It creates time utility for its customers. c. It creates products that cannot be quantified. d. It transforms resources into tangible outcomes.

d. It transforms resources into tangible outcomes.

_____ is the process of dealing with employees who are represented by a union. a. Talent acquisition b. Talent management c. Public relations d. Labor relations

d. Labor relations

The _____ was passed in 1947 to limit union power. a. Fair Labor Standards Act b. Civil Rights Act c. National Labor Relations Act d. Labor-Management Relations Act

d. Labor-Management Relations Act

Which of the following dimensions of quality refers to a product's primary operating characteristic? a. Aesthetics b. Features c. Serviceability d. Performance

d. Performance

According to the comprehensive approach to change, which of the following is the first step in the change process? a. Diagnosis of the root cause of change b. Planning for implementation of change c. Selection of an appropriate change technique d. Recognition of the need for change

d. Recognition of the need for change

The starting point for total quality management (TQM) in an organization is: a. improving the quality of materials. b. new technology and automation. c. employee involvement. d. a strategic commitment by top management.

d. a strategic commitment by top management.

In order to improve communication effectiveness, managers should: a. use a lot of technical jargon. b. interrupt the speaker if they have questions about a topic. c. concentrate solely on the words of the speaker. d. encourage a two-way communication process.

d. encourage a two-way communication process.

Reek Row, a local café, decreases the prices of its coffees. It does this in an attempt to encourage customers to choose its café over its competitor, a neighboring coffee shop that sells coffee at lower prices. This is an example of organization change due to a(n) _____. a. normative force b. internal force c. planned force d. external force Previous

d. external force

Jason, a manager at Lowella Corp., has fought openly for years to block the promotion of another manager, Anthony, within the organization. Over the objections of Jason, however, Antony eventually gets promoted to the same rank. The interpersonal relationship between Jason and Antony is _____. a. personal and progressive b. private and positive c. public and professional d. personal and negative

d. personal and negative

Colin's Crib, a local pizza shop, sells pizza to customers who visit the store. Recently, it introduces home delivery for its customers. This is an example of a _____. a. product innovation b. technical innovation c. radical innovation d. process innovation

d. process innovation

Decisional roles: a. are all about receiving and transmitting information so that managers can serve as the nerve centers of their organization. b. involve interacting with supervisors, subordinates, peers, and others outside an organization. c. focus specifically on acquiring and disseminating data. d. require managers to seek out information to use in making choices and then communicate those choices to others.

d. require managers to seek out information to use in making choices and then communicate those choices to others.

Contingent workers: a. should always be compared on a direct-cost basis. b. perform better than permanent employees. c. always have equal access to employee benefits and incentives. d. should be called in for well-defined periods of time.

d. should be called in for well-defined periods of time.

Organizational barriers to communication include _____. a. poor listening skills b. reluctance to communicate c. credibility about the subject d. status or power differences

d. status or power differences

In-transit inventories are controlled by: a. high-level production scheduling systems in conjunction with marketing. b. shop-floor control systems. c. purchasing models and systems. d. transportation and distribution control systems.

d. transportation and distribution control systems.