Chapter 5 - Business Management

The first step in the controlling process is A. Following standards set for each of the company's goals B. Communicating with employees about the importance of controlling C. Taking corrective action when performance falls short of standards D. Organizing employees into work groups

A. Following standards set for each of the company's goals

The person who described motivation in terms of a hierarchy of needs is A. Maslow B. Herzberg C. McClelland D. Jacobs

A. Maslow

Which of the following is NOT an effective way for a manager to implement change? A. Do not move too quickly to implement change. B. Do not communicate with employees about the change until a final decision has been made. C. Ask employees for ideas on effective solutions and procedures. D. Be less critical of mistakes made by employees while changes are being made.

B. Do not communicate with employees about the change until a final decision has been made.

The motivation theory that states people are influenced most strongly by one of three specific needs -- achievement, affiliation, or power -- was developed by A. Maslow B. McClelland C. Pavlov D. Hersberg

B. McClelland

Consistency in products and performance is measured with a A. Quantity standard B. Quality standard C. Time standard D. Cost standard

B. Quality standard

Effective work teams have all of the following characteristics except A. All members understand and support the group's purpose B. The team does not need to have a group leader C. Members work to resolve problems in the group D. The team's activities are clear

B. The team does not need to have a group leader

Which of the following is NOT a way managers can increase profits? A. Increase sales revenues B. Decrease costs C. Add more employees D. Reduce waste

C. Add more employees

Employees are more likely to support what they A. Find to be the easiest B. Are paid for C. Are involved in planning D. Have been told to support by their manager

C. Are involved in planning

The best credit policy for a company is to A. Never make purchases on credit B. Charge very high interest rates to customers to increase profits C. Only buy on credit when the company will lose money if the purchase isn't made D. Pay for credit purchases well before payment is due

C. Only buy on credit when the company will lose money if the purchase isn't made

An example of an intrinsic motivation factor is A. Praise from your supervisor B. A pay increase C. Personal satisfaction D. The admiration of coworkers

C. Personal Satisfaction

Which of the following is NOT one of the actions managers should take if they discover that performance is not meeting standards? A. Take steps to improve performance B. Change policies and procedures C. Revise the standard D. Assign the problem to a trusted employee

D. Assign the problem to a trusted employee

The efforts to increase the effectiveness and efficiency of specific business operations are known as A. Organizational change B. Team effectiveness C. Consensus building D. Process improvement

D. Process improvement

A production manager who specifies the minimum number of units to be produced each hour, day, or month is establishing a A. Variance B. Time standard C. Quality standard D. Quantity standard

D. Quantity standard

The final step managers take in the controlling process is A. Following performance standards set to help meet company goals B. Measuring performance using established standards C. Establishing new goals D. Taking corrective action when standards are not met

D. Taking corrective action when standards are not met

Cost standard

are an effective way of helping businesses maintain profitability

Motivators

are factors that increase job satisfaction.

Hygiene factors

are job factors that dissatisfy when absent but do not contribute to satisfaction when they are present.

Time standard

are the established amount of time needed to complete an activity

Operations

are the major ongoing activities of a business

Physiological needs

are things required to sustain life, such as food and shelter.

Quality standard

describe expected consistency in production and performance

Profit

equals income minus costs

Quantity standard

establish the expected amount of work to be accomplished

Esteem needs

include the desire for recognition and respect from others.

Social needs

include the need to belong, to interact with others, to have friends, and to love and be loved.

Security needs

involve making sure you and those you care about are safe and free from harm.

Operations management

involves effectively directing the major activities of a business to achieve its goals

Variance

is a difference between current performance and the standard

Work team

is a group of individuals who cooperate to achieve a common goal

Just-in-time (JIT) inventory control

is a method of inventory control whereby the company maintains very small inventories and obtains materials just in time for use

Motivation

is a set of factors that influences the actions taken by an individual to accomplish a goal

Inventory

is all the materials and products a business has on hand for use in production and available for sale.

Affiliation need

is people being concerned about their relationships with others and working to get along well and fitting in with a group.

Achievement need

is people taking personal responsibility for their own work, setting personal goals, and wanting immediate feedback on their work.

Power need

is people wanting to influence and control others and being responsible for a group's activities

Process improvement

is the efforts to increase the effectiveness and efficiency of specific business operations

Self-actualization

is the need to grow emotionally and intellectually, to be creative, and to achieve your full potential.

Credit

is the provision of goods or services to a customer with an agreement for future payment