POM TEST II

A company with a market culture has a strong internal focus, and it concentrates on developing the business and marketing plans, as well as helping employees market their product(s). __________

False

A decision tree, which is the hierarchy or chain of command used by many organizations when discussing alternatives, must be followed when getting decisions approved. __________

False

Alison, the director of marketing for a global company, is planning the contributions she and her department will make to the organization over the next 24 months. This type of planning is called operational planning.

False

An organizational structure is a set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its environments. __________

False

Anne, the electronics department manager at a local Target store, has a good working relationship with her employees. She believes in an open-door policy, and she encourages the open exchange of opinions in her department. Anne utilizes the directive style of management. __________

False

Goals are arranged in a hierarchy known as a means-end chain because in the chain of management, the accomplishment of high-level goals is the means leading to the accomplishment of low-level goals or ends.

False

Last year, Eduardo's home of 50 years, which contained so many family, school, and career memories, was destroyed in a fire. It is normal for this event to have a negative impact on his life and decision-making abilities for at least three years. __________

False

Managers with a low tolerance for ambiguity and an orientation toward task and technical concerns when making decisions have an analytical decision-making style. __________

False

The AFL-CIO is an example of a for-profit organization, and the March of Dimes is an example of a nonprofit organization. __________

False

The larger and more diverse the group, the higher the quality of the decision. __________

False

The planning/control cycle has two control steps: (1) control the direction by comparing results with the plan and (2) control the direction by increasing organization diversity and synergy.

False

The upper-level managers of Deluxe Coffee are meeting to discuss the company's long-range goals and vision. Like any organization, Deluxe Coffee should adopt planning and strategic management for just two reasons: (1) to provide direction and momentum and (2) to encourage retention of high-value employees.

False

Tom is in the marketing department with HomeMade Soups. He was given the responsibility of determining if customers liked the new spicy chicken noodle soup. According to HomeMade Soups' sales data, over 4,000 customers purchased the new soup last month. If Tom surveys 25 of those customers, he has selected an appropriate sample size for decision making. __________

False

Tom's Hardware has a simple organizational structure. There are no levels of middle management, because all employees report to the owner, Tom, or to his assistant managers. Tom's Hardware has a thin organizational structure. __________

False

When evaluating the alternatives of a decision, managers need to base decisions strictly on cost, quality, and feasibility. __________

False

A business model outlines what customer needs the company will satisfy, the operations of the business, the company components and functions, and the projected revenue and expenses.

True

Danielle, the IT department chair at a community college, has been having problems with her students not coming to class, so their grades are suffering. If Danielle were to use defensive avoidance to respond to this situation, she would likely respond by procrastinating, passing the buck, or denying the risk of any negative consequences. __________

True

Dave, a graphic designer with Development Advertising, enjoys working for the company because of the flexibility of its management and its culture, which encourages risk taking, innovation, and creativity. Dave gets quick answers from his boss, which allows him and Development Advertising to quickly respond to changes in the marketplace. Development Advertising is an example of an adhocracy culture. __________

True

Decision making is the process of identifying and choosing alternative courses of action. __________

True

Every five years, the upper-level managers of ABC Technology meet to develop a new large-scale action plan that will set the direction for the company for the next five years. In that meeting the managers work on developing a strategy.

True

Greg, owner of Comfortable Home Heating and Air, has been having problems with employee morale. After investigating, he found that some of his department managers were using management by objectives, but the accounting and sales managers were not utilizing MBO in their departments. For the MBO program to be successful, Greg must be sure that it is implemented throughout his entire organization.

True

Lena works as an order-taker at Fast Burger, a fast-food restaurant. She does not cook food, or even package the final order, but she does input the order and takes payment. Lena reports directly to the shift manager, and she seldom interacts with the general manager. Fast Burger is an example of a mechanistic organization. __________

True

Mr. Smith, CEO of an auto dealership, has been working on the two planning steps of the planning/control cycle with his managers. To do this, Mr. Smith and his managers need to make their plan and then carry out the plan.

True

Paula is the store manager for a national grocery retailer, and she received the yearly tactical plan from Greg, her district manager. Paula is meeting with her department managers to plan how to implement the specific tasks outlined in Greg's plan for the next year. Paula is engaged in operational planning.

True

The arrangement of having discrete parts of a task done by different people is known as division of labor. __________

True

The production plant for Ace Manufacturing has been located in the same place for over 100 years. It has just completed its new factory, which includes its new corporate offices. The planning required for moving Ace into a new facility is a single-use plan.

True

The rational model assumes that managers have complete information, are able to make an unemotional analysis, and are able to make the best decision for the organization. __________

True

Two advantages of decentralization are that (1) managers are encouraged to solve their own problems, and (2) decisions are made more quickly, increasing the organization's flexibility and efficiency. ____________

True

When Angela, a new nurse was hired at Mercy Hospital, the HR manager gave her a handout containing a chart that showed a family-tree-like pattern of boxes and lines. This document, which shows the formal lines of authority and the organization's official positions and work specializations, at the hospital is called an organization chart. __________

True

While figuring out how to save money for a bride who is having financial problems, Paula, the catering manager of Oh Happy Day, asked her assistant, "What do you think is the best menu to offer under these particular circumstances? How can we offer the bride and groom's guests a great meal within their budget?" Paula and her assistant are using the contingency approach. __________

True

With satisficing, managers look for alternatives until they find one that is satisfactory, not optimal. __________

True

During weekly conference calls, Mary, a restaurant manager for a national chain of restaurants, and the other managers in her district explain to their district manager the reasons for different decisions; they also explain why certain costs and sales were higher or lower than they were the previous week. _______ is the explanation of their decisions and work results. a. Accountability b. A stepped decision c. A hierarchy of authority d. Touching e. Power

a. Accountability

Which of the following is a tactical goal? a. By the end of this fiscal year, we will achieve a 10% cost reduction in our office expenses. b. Within two years, we will enter into a strategic alliance with a company that is able to effectively market and sell our products in China, India, and other emerging economies. c. This company has a policy of conducting a background and credit check on all job applicants. d. Smoking on the factory floor is strictly prohibited; anyone caught smoking in company facilities will be disciplined immediately. e. As a company, we are committed to increasing our online presence through social media.

a. By the end of this fiscal year, we will achieve a 10% cost reduction in our office expenses.

Which of the following is NOT a step in the process of management by objectives (MBO)? a. Managers determine each employee's strengths and weaknesses. b. Managers and employees jointly set objectives for the employee. c. Managers develop action plans. d. Managers and employees periodically review the employee's performance. e. The manager makes a performance appraisal and rewards the employee according to results.

a. Managers determine each employee's strengths and weaknesses.

Phone Tech, a global phone company, frequently needs to respond quickly to fast-changing consumer tastes with its smartphones. Therefore, Phone Tech has fewer rules and procedures than most organizations, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks and changes in technology. Phone Tech is utilizing a(n) ____ structure. a. Organic b. Inflexible c. Mechanistic d. Hierarchical e. Inelastic

a. Organic

How do you know that a group in which you're taking part is suffering from groupthink? a. Peer pressure makes you agree with the ideas of the other people in your group. b. Minority dissent is allowed, even encouraged. c. All ideas and conclusions must be backed up with data. d. The group would rather take the time to come to the right decision rather than agree too quickly on what may be the wrong decision. e. The group actively considers new ideas, even if these ideas challenge underlying assumptions.

a. Peer pressure makes you agree with the ideas of the other people in your group.

As a manager, you meet with each of your team members quarterly to review their progress toward their written and agreed-upon goals. One of your employees, Claire, had a goal of increasing sales in her territory by 10% in the first quarter of the year. However, when you review Claire's sales numbers, you see that her sales have actually gone down. You know that Claire is a hard worker and has an excellent relationship with her customers. When you sit down to discuss Claire's performance, she explains what is happening in her territory. A major automobile manufacturer, which once provided 25,000 jobs, has moved its operations to Mexico and laid off all 25,000 of its workers. As a result, the economy in Claire's region has become quite depressed, and the residents are living off their savings. Taking the steps of the planning/control cycle into account, what is your best course of action with Claire? a. Terminate Claire's employment with the company b. Arrange for Claire to take a refresher course on sales methods c. Transfer Claire to another territory and replace her with another sales rep who is new to the company and therefore "hungry." d. Recognize the economic reality of Claire's territory and change her goals to make them ambitious but realistic. e. Put Claire on "probation," explaining that she will be terminated if her performance does not improve in the next quarter.

a. Terminate Claire's employment with the company

With ______, important decisions are made by middle-level and supervisory-level managers. a. decentralized authority b. upper authority c. focused power d. centralized authority e. higher-management influence

a. decentralized authority

What are the three sources of a unique and valuable strategic position? a. few needs, many customers; broad needs, few customers; broad needs, many customers b. low-cost products; huge market needs; unique products c. many needs, few customers; little need, many customers; narrow needs, few customers d. poor products available; few products available; no products available e. bad economy; strong economy; stable economy

a. few needs, many customers; broad needs, few customers; broad needs, many customers

The best ways to avoid faddish management ideas are to a. understand your own core values, and use this knowledge to create or accept the core values of your company. b. adopt management by consensus and business process reengineering. c. adopt MBO and TQM. d. emphasize employee diversity and expand the business's operations globally. e. implement a six-sigma quality system and manage by "walking around.

a. understand your own core values, and use this knowledge to create or accept the core values of your company.

The Whole Foods chain of supermarkets has stated, "With great courage, integrity, and love, we embrace our responsibility to co-create a world where each of us, our communities, and our planet can flourish. All the while, celebrating the sheer love and joy of food." This proclamation is Whole Foods' a. vision statement. b. values statement. c. mission statement. d. corporate slogan. e. company tagline.

a. vision statement.

Which of the following is not a guideline that can lead to effective brainstorming? a. Encourage wild ideas. b. Eliminate ideas that will be too costly. c. Go for quantity over quality. d. Be visual. e. Build on the ideas of others.

b. Eliminate ideas that will be too costly.

Which of the following companies is NOT one of the "frightful five" companies that dominate the Internet economy? a. Facebook b. Instagram c. Amazon d. Apple e. Microsoft

b. Instagram

The owners of Smith's Yard Mart, a family-owned garden center in a rural community, are concerned over the news that a large retailer with a garden center is building a new store on the other side of town. According to a SWOT analysis, this new retailer is a(n) ____ to Smith's. a. Strength b. Threat c. Weakness d. Opportunity e. Intelligence

b. Threat

Specialists work together to achieve ________ in a highly integrated organization. a. Assimilation b. a common goal c. differentiation d. decentralization e. centralization

b. a common goal

Marie is a small-business owner who loves to take risks. She also enjoys going out and meeting customers and potential clients—the social aspect of her job. Marie relies on intuition and discussions with others to acquire information. As an interior decorator, Marie utilizes her imaginative strengths, taking a broad perspective to problem solving, and she likes to consider many options and future possibilities. Marie's decision-making style is best described as a. directive. b. conceptual. c. ambiguous. d. behavioral. e. analytical.

b. conceptual.

Susana keeps a close eye on her company's internal and external environment to discover possible opportunities for new products and to discern possible threats from the competition. In which activity is Susana engaged? a. the synergistic approach b. environmental scanning c. corporate spying d. management by observation e. competitive intelligence

b. environmental scanning

Organizational design is concerned with an organization developing a. the best structures of costs and efficiency that an organization uses to meet goals. b. optimal structures of accountability and responsibility to execute its strategies. c. important decisions that are suggested by employees. d. new MBO goals. e. the most favorable methods of accomplishing both the diversity and synergy plans.

b. optimal structures of accountability and responsibility to execute its strategies.

Adam, the owner of Adam's Roofing, was talking to a visitor in his office, telling her that "We are a fun-loving group that believes in teamwork and a family atmosphere at work, which significantly affects our work outcomes. Plus, we do things together outside of work. This is the 'social glue' that binds the members of our company together." Adam was referring to his company's a. mission statement. b. organizational culture. c. code of ethics. d. diversity plan. e. Analytics

b. organizational culture.

A short-term usually spans ______ while a long-term goal typically spans a. 1 month; 3 months. b. 3 months; 1 year. c. 12 months; 1 to 5 years. d. 2 weeks; 6 months. e. 3 years; 10 years.

c. 12 months; 1 to 5 years.

When people seek information to support their point of view and discount data that do not, they are subject to ______ bias. For example, Joe uses the fact that his commute is now shorter to confirm his belief that there are fewer cars on the road. However, Joe is not accounting for the fact that he recently took over the graveyard shift, and that traffic is always lighter at night and in the wee hours of the morning. a. Blind b. Overconfidence c. Confirmation d. Representativeness e. Framing

c. Confirmation

_____ is the process of assigning managerial authority and responsibility to lower-level managers and employees. a. Authority b. Planning c. Delegation d. A power trip e. Control

c. Delegation

Satisficing is the tendency of a. people to view events as being more predictable than they really are. b. decision makers to be influenced by the way a situation or problem is presented to them. c. a group to settle on a decision that is "good enough." d. people to see events based on what has happened in the past. e. group members to agree for the sake of unanimity and thus avoid accurately assessing the decision situation.

c. a group to settle on a decision that is "good enough."

A SWOT analysis is... a. a search for the strengths, weaknesses, opportunities, and threats influencing an organization's competition. b. a diversity and synergy method used in vertical integration. c. a search for the strengths, weaknesses, opportunities, and threats affecting an organization. d. an analysis of strategies, ways to improve, output methods, and threats influencing a company. e. an inexpensive method of implementing a forecast.

c. a search for the strengths, weaknesses, opportunities, and threats affecting an organization.

Don knows that one of the reasons people do not return to his electronics store is because of the slow service. How would a SWOT analysis classify the slow service at Don's electronic store? a. as a strength b. as a threat c. as a weakness d. as an opportunity e. as intelligence

c. as a weakness

In order, the steps of the strategic-management process are a. establish the mission and vision statements, assess the current reality, conduct a trend analysis, and maintain the feedback loop. b. establish the mission statement, maintain strategic control, formulate the grand strategy, and implement the strategy. c. establish the mission, vision, and values statements; assess the current reality; formulate the grand strategy; implement the strategy; and maintain strategic control and the feedback loop. d. establish the vision and values statements, develop a mission statement, formulate the grand strategy, implement the strategy, and maintain the feedback loop. e. determine the strategy; carry out the strategic plans; and establish the mission, vision, and values statements.

c. establish the mission, vision, and values statements; assess the current reality; formulate the grand strategy; implement the strategy; and maintain strategic control and the feedback loop.

____ is a technique used to help groups generate multiple ideas and alternatives for solving problems. a. Groupthink b. Big Data c. MBO d. Brainstorming e. Framing

d. Brainstorming

In regard to decision making, which of the following statements reflects what research has found? a. Individuals acting alone always make better decisions than groups. b. Group decisions are seldom better than individual decisions. c. Groups tend to be less productive than the best individuals working on any specific project. d. Groups make better decisions than most individuals acting alone. e. There has not been any research showing that either individuals acting alone nor groups make better-quality decisions.

d. Groups make better decisions than most individuals acting alone.

___________ is(are) included in strategic control. a. Implementing MBO b. A strong employee diversity and synergy agenda c. Seldom making adjustments to a strategy d. Monitoring the execution of strategy and making adjustments, if necessary, e. Developing a diversity plan

d. Monitoring the execution of strategy and making adjustments, if necessary,

Don, a new manager, commented to a friend, "I am excited about different aspects of my new job. The company computers have entered the field of decision making. The network not only collects information more quickly, but the system also reduces the roadblocks when I need a group consensus." Don is referring to a. the Delphi technique. b. collaborative management. c. brainwriting. d. a decision support system. e. brainstorming.

d. a decision support system.

You receive a memo that reads as follows: "In recent months, our customer evaluations have dropped, and our sales have decreased by 10 percent. To restore our business, we will do the following: (1) We will contact all of our customers and offer a 10 percent discount on their next purchase. (2) For the customers who spend more than $1,000 per year, we will invite them to join our Insiders' Club, which gives them discounted tickets to concerts and sporting events. (3) Effective immediately, we will begin staffing our call center 24 hours a day, 7 days a week. (4) Customer-service personnel will be given more discretion in helping customers resolve problems, with minimal interference from supervisors." This memo is a(n) a. mission statement. b. VRIO analysis. c. business model. d. action plan. e. a SMART goal.

d. action plan.

Organic Foods International has decided to increase its market share by hiring a marketing rep to visit businesses in the area and invite their employees to shop at Organic Foods and attend monthly health events that take place at Organic Foods stores. Each of the individual stores has hired two new employees to handle the anticipated increase in customer traffic. Organic Foods is using a _____ strategy. a. cutting-edge b. stability c. defensive d. growth e. diverse

d. growth

Juan, the owner of Quality Catering, is driven by competition. He is very focused on meeting deadlines and quality, and on delivering the results that customers want. He pushes his managers to continually exceed their productivity goals, and he stresses that profits take precedence over employee development and satisfaction. Juan feels "there is not enough time for training." However, his employees are regularly rewarded for their success in meeting company goals. Quality Catering has a(n) ____ culture. a. Clan b. target-driven c. adhocracy d. market e. hierarchy

d. market

BP and Halliburton executives made the decision not to invest in the oil well blowout preventer that experts believe would have prevented the Deepwater Horizon oil rig explosion and fire off the coast of Louisiana. The executives made their decision based on their belief that their decision would have no great negative consequences. Their decision is an example of a. satisficing. b. panic. c. the curse of knowledge. d. relaxed avoidance. e. relaxed change.

d. relaxed avoidance.

VRIO is a framework for analyzing a resource or capability to determine its competitive strategic potential by answering four questions. VRIO stands for a. visibility, relativity, illumination, and obscurity b. vendors, relationships, introductions, and operations. c. volatility, risk, instability, and obstacles. d. value, rarity, imitability, and organization. e. viability, respect, impact, and outreach.

d. value, rarity, imitability, and organization.

Which of the following is an example of a mission statement? a. "to create a world where the family farm is valued over the large-scale production of agribusiness" b. "to become a beacon of hope for those suffering from mental hardship" c. "to make education accessible to everyone in the world" d. "to engage in business practices that are not only legal but also ethical" e. "to offer the lowest prices on new hardcover books, anywhere in the world"

e. "to offer the lowest prices on new hardcover books, anywhere in the world"

You have an idea for a company that sources fruits from local farms and makes fresh juices on a daily basis. You want to start a subscription-based service in which households within a 100-mile radius subscribe to your plan and receive two gallons of freshly squeezed juice (for example, cherry juice, apple juice, lemonade) twice a week. As you think about starting your business, you ask yourself: How rare is the service I am offering? How valuable is it? Can I organize the company to maximize my advantages in the marketplace? After asking these questions, review and identify which question from VRIO did you forget to ask? a. Is the resource or capability valuable? b. Is the resource or capability currently controlled by only a few firms or no other firms? c. Is the firm organized to exploit the resource of capability? d. What values should be emphasized? e. Is the resource or capability costly for other firms to imitate?

e. Is the resource or capability costly for other firms to imitate?

George, a longtime hotel manager for Holiday Inn, was meeting with Sally, a new front-desk manager, and telling her about his recent decision not to fire a front desk employee about whom several guests had complained. George discussed the four stages of the decision process. He said, "I first identified the problem, and then I gathered alternative solutions. I evaluated each choice and selected a solution. I then implemented my decision to not fire the employee but instead to provide him with additional training. Finally, I followed up with an evaluation of the solution I'd chosen." George is using the ______ process. a. employee relations model b. focused decision-making model c. interpersonal-decision agenda d. solutions agenda e. rational decision-making model

e. rational decision-making model

Jim was recently promoted to the position of dining room supervisor at The Crab Shack, and he is now responsible for making decisions on numerous matters in the dining room and giving orders to the serving staff. At the same time, Jim has the obligation to perform the many new tasks assigned to him as a supervisor, such as overseeing the closing work and the cleaning of the dining room. Jim's obligations are known as his a. hierarchy. b. power. c. Beliefs. d. authority. e. responsibility.

e. responsibility.

The three key principles of ______ are the creation of a unique and valuable position, trade-offs in competing, and creating a "fit" among activities. a. company diversity b. an increased MBO c. a strong employee morale d. an environment with few or no competitors e. strategic positioning

e. strategic positioning

The basic assumption that the picture of the present can be projected into the future is the basis of a a. strategic goal. b. business plan. c. vision statement. d. SWOT analysis. e. trend analysis

e. trend analysis

An organization's vision statement needs to describe a. the organization's purpose or reason for being. b. what the company will market and its business plan. c. the organization's purpose or reason for being and its strategic intent. d. the organization's ethical and diversity standards. e. what the company wants to become and its long-term direction and strategic intent.

e. what the company wants to become and its long-term direction and strategic intent.