MGMT3013 Exam 2

________ designates how work units are going to optimize resources and make contributions over the next two years.

Tactical planning

After the manager and employee work together to set the employee's objectives, what is the next step of MBO?

The employee should develop an action plan for meeting the objectives

In the third step of the strategic management process, managers should

Translate the broad mission and vision into a corporate strategy

Samir owns a dental practice, but business has slowed down significantly over the last six months. Which analysis would you recommend to Samir to help him determine whether his dental practice has competitive potential?

VRIO framework

When you encounter negative thoughts or sense that others are trying to elicit an emotional response from you, which key skill of being open-minded should you enact?

Watch for communication blocks

Once her team's goals were set, Alyssa asked each team member to come up with a(n) ________ to reach the goals.

action plan

Higher-level corporate- and business-level strategies flow down to the process strategy.

false

Knowing your decision-making style does not really help you determine your strengths and weaknesses as a decision maker, but it can help you understand when a decision needs to be made.

false

Strategic positioning involves performing the same activities as rivals in a similar way, but at a lower cost.

false

The IT network that allows for the movement of organizational information within that company is known as the organizational structure.

false

The executives of Great Lakes Medical Center are writing a statement that explains their organization's core purpose. Great Lakes Medical Center is at the strategic formulation step in strategic management.

false

To reduce the escalation of commitment, Marlee, the CEO, allows herself to be very influenced by the way a problem with her team is presented to her.

false

Two advantages of decentralization are that (1) managers are encouraged to ask for assistance to solve their problems, and (2) decisions are made more slowly because they are discussed at a higher level of management.

false

A real estate development company is considering a deal to develop 1,000 condominium units. This deal largely rests on a __________ that the city's population will grow by 23% over the next decade.

forecast

means-end chain

shows how goals are connected or linked across an organization

strategic / long-term goals

span 1-5 years and focus on achieving the strategies identified in a company's strategic plan; set by and for top management

SMART goal

specific, measureable, attainable, results-oriented, has target dates

When managers and employees within the same department are brought together in cross-functional teams to solve particular problems, their company is using a team-based design.

true

Fine Cuts has been manufacturing excellent cutlery for over 50 years. Management wants to hang a banner in the production facility with their mission statement. Which of the following statements would be on that banner?

"We will always provide the highest-quality cutlery at the lowest cost to our customers and always give honest, winning customer service, thereby earning a fair profit for our stakeholders."

strategic-management process

1) establish mission, vision, and values statements 2) current reality assessment 3) formulate corporate, business, and functional strategies 4) strategy execution 5) strategic control then, correction action via feedback loop

A ________ is a document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success, and a ________ outlines the need the firm will fill, the operations of the business, its components and functions, as well as the expected revenues and expenses.

Business plan; business model

Why should you encourage Derin to use groups to make decisions?

Groups have a greater pool of knowledge

Colin, who is a paralegal for a powerful Manhattan law firm, likes the fast pace of his work and the fact that things are always changing there. Colin can be said to

Have a high tolerance for ambiguity

Evidence-based management includes bragging about new products you have in development.

false

When Henry Ford implemented the assembly-line process to dramatically decrease the time and resources needed to make automobiles, he was pursuing a ________ strategy.

cost-leadership

action plan

defines the course of action needed to achieve the stated goal; outlines tactics used and contains a projected date for completing the desired activities

________ is the arrangement of having discrete parts of a task done by different people.

division of labor

Zahra, the human resources manager, has significant experience handling ethical issues in the workplace. Over the years she has received extensive training in matters of workplace ethics. Due to Zahra's legal background (she is a member of the state bar association), the management of her company rely on Zahra to assist them with legal issues, especially with ethical dilemmas. Her organization should appoint Zahra as the

ethics officer

vision statement

expresses the organization's long-term goal of what it wants to become and where it wants to go strategically

mission statement

expresses the organization's purpose or reason for being

values statement

expresses what the company stands for, its core priorities, the values its employees embody, and what its products contribute to the world

A local university is facing some tough decisions, so they are using the decision tree, which contains individuals, websites, and organizations that specialize in handling sensitive and difficult decisions.

false

management by objectives (MBO)

four step process: 1) managers and employees jointly set objectives for employee 2) managers develop action plans 3) managers and employees periodically review the employee's performance 4) manager makes a performance appraisal and rewards employee according to results

Georgie's Orchards, a firm that grows, processes, and cans peaches, uses a ________ structure that separates workers based on their tasks or special skills.

functional

short-term goals

generally span 12 months and are connected to strategic goals in a hierarchy known as a means-end chain

The chain of command is also known as the

hierarchy of authority

A boundaryless organization is one that

is fluid and highly adaptive and whose members come together to collaborate on common tasks.

operational planning

managers determine how to accomplish specific tasks with available resources within the next 1-52 weeks

tactical planning

managers determine what contributions their work units can make with their given resources during the next 6-24 months

strategic planning

managers determine what the organization's long-term goals should be for the next 1-5 years with the resources they expect to have available

Which models of decision making describe how managers actually make decisions?

nonrational

Mitski supervises the returns desk in a department store. Mitski has set a goal for the rest of the year of finishing her daily office work quicker so she can assist at the returns desk earlier in the morning. She knows this will improve customer service and also help decrease theft which will assist the company in achieving its goal of decreasing costs. Finishing her office work quicker represents a(n) ________ for Mitski.

operational goal

A(n) ________ is a system of consciously coordinated activities or forces of two or more people.

organization

According to the BCG matrix, stars are

organizations with high growth and high market share which are definite keepers.

operating plan

plan that breaks long-term output into short-term targets or goals; turn strategic plans into actionable short-term goals and action plans

planning/control cycle

planning step 1) make the plan planning step 2) carry out the plan control step 3) control the direction by comparing results with plan control step 4) control the direction by taking corrective action in two ways-- a) correcting deviations in the plan being carried out, and b) improving future plans

The key reasons that an organization should adopt planning and strategic management are to

provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage.

Rosa hired Luis from Cajun College. He was an amazing employee and exceeded all her expectations. The next year, Rosa received an application for a job opening from another graduate from Cajun College. She was very excited to hire another outstanding candidate. Rosa has ________ bias.

representativeness

tactical goals

set by and for middle managers and focus on the actions needed to achieve strategic goals

operational goals

set by first-line managers and team leaders and are concerned with short-term matters associated with realizing tactical goals

Cornelius owns Grand Games, a high-end store that retails games and toys that are handcrafted and carefully selected. Cornelius targets customers who value artisanal work, such as backgammon sets made from reclaimed lumber by local crafters. There are several stores in the area that sell mass-made toys and games that are much cheaper. To compete, Cornelius offers "game nights" where he sets up game boards and invites local teens and adults to take part in light-hearted competitions, where the winners receive a 10% discount on their next purchase. Cornelius also takes custom orders for game pieces that his customers want, such as 12-sided dice or newly invented games. All of Cornelius's activities are aimed at giving Grand Games a sustainable competitive advantage through

strategic positioning

A stability strategy is a grand strategy that involves little or no significant organizational change. For example, Two Become One is a jewelry store that sells only one type of item: engagement and wedding rings. The management of Two Become One does not plan to branch out into selling different types of jewelry; the company has a reputation for being the go-to store to purchase wedding rings, and it plans to maintain that strategy.

true

All 78 locations of Moviely Cinemas has a poster in the lobby that reads, "We want to become the epicenter for family entertainment that highlights creative talents and inspires the next generation of film legends." This is the vision statement for Moviely.

true

During a management workshop, Ishaan, the HR manager, spoke about making decisions related to firing an employee. He said, "I have several rules of thumb that I use to make a decision. First, I ask if it's legal and then if it's ethical." He then laid out several other steps he uses in the decision-making process related to firing. Ishaan's "rules of thumb" are also known as heuristics.

true

Octavia wants a job that she is good at and that she is happy to go to each day. Octavia would be well-served to understand a company's internal context before accepting a job offer.

true

Willow, the youngest owner of a family-owned restaurant, wants to make sure her company's culture is embedded. In a recent tradeshow workshop, she learned that she can do this by having company rites and rituals, continuing to tell stories about company legends, and being a role model to her employees.

true

A ________ expresses what the organization should become and where it wants to go strategically.

vision statement