Business Management exam 2
Which of the following statements is true about mechanistic organizations?
They structure their activities in predictable ways
_____ is a piecemeal response to circumstances as they develop
Reactive change
_____ is one major element of organizational politics that is especially relevant to decision making
Coalitions
A(n) _____ is a form of group decision making in which a group arrives at a consensus of expert opinion
Delphi group
Which of the following is one of the characteristics of Weber's bureaucracy?
Distinct division of labor
franchising agreement
- Operation of the franchised business by the entrepreneur (the franchisee) under a license by a parent firm (the franchiser). - The entrepreneur pays the parent firm for use of trademarks, products, formulas, and business plans.
Basic Strategic Challenges
-choosing an industry in which to compete -emphasizing distinctive competencies -gaining first mover advantage
Disadvantages of Franchising- FRANCHISER
-failure of the franchisee to operate franchise property -disputes with and lawsuits by franchisees over the terms of the franchise
Forms of Group Decision Making
-interacting groups or teams -delphi groups -nominal groups
When faced with a decision managers should... (The Classical Decision Making Model)
-obtain complete and perfect information -eliminate uncertainty -evaluate everything rationally and logically ...and end up with a decision that best serves the interests of the organization
why entrepreneurs fail
-over-reach -lack of finances -inexperience -lack of effort and devoted time -weak control systems
sources for financing a new business
-personal resources -strategic alliances -lenders -venture capital companies -small business investment companies -SBA Financial programs
Disadvantages of Franchising- FRANCHISEE
-start-up fees to purchase franchise -Franchisor retains a large amount of control -Limitations of franchise (market area, product, customers)
Trends in new business start-ups
-the emergence of E-commerce -crossovers to small business by former large-business employees -increase entrepreneurial opportunities for minorities and woman -better survival rates for small businesses
_____ is a concept suggesting that decision makers are limited by their values and unconscious reflexes, skills, and habits
Bounded rationality
A company has set an objective to increase its product sales by 50 percent in the next two years. Identify the step of the organization change process of the company
Establishment of goals for the change
The _____ design is essentially a holding company that results from unrelated diversification.
H-form
Which of the following is an advantage of job specialization?
It decreases transfer time between tasks.
Which of the following statements is true about the administrative model of decision making?
It suggests that managers may not always make decisions that best serve the interests of their organizations
_____ involves systematically moving employees from one job to another
Job rotation
The Law of Intuition
Leaders evaluate everything with a leadership bias
Who among the following is most likely to be an entrepreneur?
Mariam has taken a loan to fund her new café
Which of the following is an example of a company that has identified a new market?
NutriMax has introduced its low-fat cookies in Asia
Jenny runs a small boutique in New Orleans and has five employees working under her. Lately, she has noticed that her boutique has not been delivering customer orders on time, and she has realized that it is because of the rise in the number of customers and insufficient manpower. She has decided to employ another five employees. Which step of the change process is illustrated in the scenario?
Selection of an appropriate change technique
Beta LLC has decided to change its hiring criteria so that more people with technical expertise can join the company. Which step of the change process is illustrated in the scenario?
Selection of appropriate change technique
Begun in 1976, _____ are designed to consolidate information from various disciplines and institutions, including technical and professional schools
Small Business Development Centers
_____ is the conversion process used by an organization to transform inputs into outputs
Technology
What is a disadvantage of starting a business through a franchise agreement?
The franchise agreement may be difficult to terminate
Which of the following statements is true about a franchise agreement?
The franchisee can consult the franchiser for managerial and financial help
Which of the following is an advantage of a franchising agreement?
The franchisee can easily establish a business with reduced risks
Which of the following is a disadvantage of franchising agreements?
The franchisee loses some independence in running the venture
Identify an advantage of a franchising agreement
The franchiser can grow rapidly from franchising agreements
Which of the following is one of the assumptions on which the theory and practice of organization development (OD) are based?
The total organization and the way it is designed influence the way individuals behave within the organization
Which of the following statements is true about small businesses?
The vast majority of small firms are owner-operated
Which of the following is true of interacting groups?
They can be regular work teams
Law of Solid Ground
Trust is the foundation of leadership - good character makes trust possible
When Beta Inc. acquired Redd Communications, there was a huge uproar by the staff of Redd Communications as there were rumors of staff reductions and operations closures. _____ was the cause for this reaction by the Redd Communications staff
Uncertainty
Which stage of the Lewin model of organization change involves managers letting people who will be affected by an impending change know the reasons for the change?
Unfreezing
organization change
any substantive modification to some part of the organization
Small businesses:
are a key source of new jobs in various industries
Entrepreneurs:
are involved in planning and organizing activities of a business venture
When compared to flat organizations, tall organizations:
are more expensive
_____ is the process of systematically retaining power and authority in the hands of higher-level managers.
centralization
____ is the process of linking the activities to the various departments of the organization
coordination
The _____ design is based on multiple businesses in related areas operating within a larger organizational framework
divisional
In most change situations, there are factors that make the change process more difficult and others that seem to ease the process. The process by which a manager identifies these factors and then tries to tip the balance so that the factors facilitating the change outweigh those hindering the change is called ____
force-field analysis
According to the results of a classic study, employee participation:
increases productivity and satisfaction
A(n) _____ is a person who actually conceives of and develops the new idea, product, or service by means of the creative process
inventor
The rational decision-making process
involves the evaluation of different alternatives
Jimmy owns an ice cream parlor. He designs a schedule for the different tasks the employees have to perform in order to prevent monotony at work. According to the schedule, if an employee makes waffle cones on a day, he serves ice creams the next day and clears the tables on the day after that. Jimmy is using the _____ approach at his ice cream parlor
job rotation
Alternatives to Job Specialization
job rotation, job enlargement, job enrichment, job characteristics approach, work teams
The reengineering process can be made effective by:
limiting employee participation in the process
Delta LLC. purchases raw materials such as leather and canvas from suppliers and processes them into finished shoes. Delta LLC. operates in the _____ industry
manufacturing
A wide span of management in a flat organization may result in a manager having ____
more administrative responsibility
When managers want to be sure to get innovative and creative ideas, they will often create a(n) ____ group
nominal group
Best Option
optimizes profits, sales, employee welfare and market share minimizes loss, expense, or employee turnover
Substantive modification to some part of an organization is known as _____
organization change
Bailey is the HR manger at the gamma Inc and has been tasked with redefining job descriptions and reporting relationships. What type of organizational change is she leading?
organizational structure and design change
To overcome resistance to change, the top management of a company discusses with its employees the new employee policies and procedures that it proposes to bring in and also seeks their involvement in the change process. This scenario illustrates the _____ technique that helps reduce resistance to change
participation
Attempting to change the attitudes and values of a company's workforce indicates a change in the area of ____
people
An example of a force for change in the task environment of an organization is ____
pricing strategies of competitors
When the inventory manager of Cuisine Royale, a restaurant, decides to order a batch of brown bread because the stock is almost empty, she's making a(n) _____ decision
programmed
The National Association of Women Business Owners:
provides networking forums for entrepreneurs
Programmed decisions
recur more frequently than nonprogrammed decisions
According to the Lewin model of organization change process, refreezing involves ____
reinforcing the change so that it becomes a part of the system
Programed decisions
relatively structured, occurs with some frequency
Un-programed decisions
relatively unstructured, occurs much less
In the rational decision-making model, once the alternatives have been evaluated, the next step is to ____
select the best alternative
A _____ is privately owned by one individual or a group of individuals and has sales and assets that are not adequate enough to meaningfully influence its environment
small business
The Law of Empowerment
the best leaders build other leaders up and help them achieve their goals
Law of the Inner Circle
the closest people to you will determine your potential as a leader
According to the job characteristics approach, task identity is _____
the extent to which a worker does a complete portion of the total job
Refreezing
the phase at which change is stabilized- evaluating change, revising change
Unfreezing
the phase during which a situation is prepared for change- bringing awareness
Changing
the phase where a planned change actually takes place- communication is important, emotion and reason are both used
Departmentalization
the process of grouping jobs according to some logical arrangement
entrepreneurship
the process of planning, organizing, operating, and assuming the risk of business venture
A virtual organization:
typically has only a handful of permanent employees
Managers are most prone to error in a condition of ____
uncertainty
People resist change because of:
uncertainty, threats to self-interests power influence, different perceptions, feelings of loss in disrupted social networks, power, security, and familiarity with existing procedures
Kurt Lewin's Model
unfreezing, changing, refreezing -needed when entropy occurs
The _____ of an organizational life cycle is characterized by growth and the expansion of organizational resources
youth
_____ is the tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency
Satisficing
Jason has started a restaurant of his own. He makes all the major operational decisions and is completely liable for the profits and losses the restaurant makes. Jason is most likely to be a(n):
entrepreneur
A manager who has a high level of risk propensity is likely to
make decisions quickly
Decisions made by top managers involving strategy, such as signing mergers or making acquisitions, are examples of _____ decisions
nonprogrammed
Pet care salons, skin clinics, and day care centres are all examples of businesses operating in the _____ industry
service
why entrepreneurs succeed
-hard work -analysis of market -managerial competence/experience -luck/opportunity
Business plan
A document that summarizes the business strategy and structure
Bureaucratic Model
A logical, rational, and efficient organization design based on a legitimate and formal system of authority
_____ is power that has been legitimized by the organization
Authority
Which of the following is a cause for the resistance to change that a worker might feel because the worker disagrees with the management that the change will be best for the organization in the long-run?
Different perceptions
Which of the following is an accurate statement about small businesses?
They are likely to eliminate jobs at a far higher rate than large companies
_____ is a common platform for changing business processes
Enterprise resource planning
GE's organizational structure
conglomerate (H) organizational design