Exam 2

cash cow

a mature product that provides consistent revenue without a lot of advertising.

administrative model

is descriptive: It describes what people actually do in a decision-making situation. people make decisions based on unconscious mental habits and models

political model

is descriptive: acknowledges that decision making is, to some extent, a random process. It is based on people involved, the solutions at hand, and the decision-making environment.

A company's sales department represents what type of authority arrangement?

line department - Line departments perform tasks that reflect the organization's primary goal and mission

What type of departments within an organization performs tasks that reflect the organization's primary goal and mission?

line departments

tight cost controls and actively pursue cost reductions on an ongoing basis.

low-cost leadership strategy

What type of decision refers to a specific situation that occurs frequently within an organization and the organization has a set of specific decision rules to apply whenever it occurs?

programmed decision

scalar principle

says that authority should flow in an unbroken line throughout the organization.

The human resources department of a company represents what type of authority to the organization?

staff department - Members of staff departments use their specialized skills to support and advise the line departments

Companies that use a focus strategy have narrow buyer groups.

true

fear of personal loss

What has been found to be the biggest obstacle to organizational change?

Differentiation strategies increase competition because they reduce customer loyalty.

False

target niche markets—small groups of customers with specialized interests.

Focus strategy

organization chart

A visual drawing of the reporting relationships within an organization is called a(n):

About what percentage of top corporate officers are women?

14%

Who developed force-field analysis theory?

Kurt Lewin

normative

A decision-making model that specifies how a decision should be made is called:

What type of planning occurs when the organization is faced with a situation in which its continued existence may be in question?

Crisis planning

responsibility

The duty of an employee to perform a task that has been assigned to him by a manager is called that employee's

stretch goal

Which type of managerial goal is designed to be reasonable but require hard work by the manager in order to accomplish this goal? Achievable, but demanding

Differentiation strategies can reduce the bargaining power of large buyers.

true

customer based division

xThe U.S. Internal Revenue Service is organized to focus on these four groups of taxpayers: individuals, small businesses, corporations, and non-profit and government agencies. What type of organizational structure does this represent?

In the U.S. in 2009, women employed full time earned ________ for every dollar that men earned.

80 cents

How; should

A normative decision is one that defines ________ a decision maker ________ make decisions.

coalition

An informal alliance among a group of managers who support a specific goal of the organization is called a(n):

brainwriting

Another term for electronic brainstorming is:

What type of competitive strategy is an organization using when it tries to become more efficient and can reduce its costs below that of its major competitors?

Cost-Leadership strategy

groupthink

The tendency of the people in a group to discourage opinions that are contrary to the majority thinking of the group is called:

. A company that creates a distinctive product is likely to use a differentiation strategy.

True

A company that actively tries to become more efficient is likely to be pursuing a cost leadership strategy.

True

A company that uses tight cost controls is likely to use a low-cost leadership strategy.

True

divisional structure

What is the technical term for grouping together departments that have similar organizational outputs of an organization?

justifying past decisions

What type of bias is a manager exhibiting when she continues to support a past decision she has made even if the current circumstances no longer apply to the situation that occurred when that decision was originally made?

cross-functional team

What type of team is composed of workers from different functional departments of the organization who meet together in an attempt to solve an important organizational problem?

coercion

When workers are told that if they do not accept the new organizational design of their company and work hard to implement it, that they will be fired, what type of implementation strategy is this?

unity of command

Which organization principle specifies that each worker should report to only one supervisor on the job?

The idea that decision authority is located near the "top" of the organization chart is called ________, while pushing this authority "down" the organization chart is referred to as ________.

centralization; decentralization

reduce competition, because their goal is to create a product that competitors can't imitate. products are distinctive, customers perceive them as valuable and are willing to pay a premium for them.

differentiation strategy

Businesses that do not adopt a differentiation, low-cost leadership, or focus strategy tend to be more successful than businesses that do adopt these strategies.

false

Employee abilities to create innovative products are critical for companies that adopt a low-cost leadership strategy.

false

When using a focus strategy, a company tries to create a product that will appeal to the broadest possible customer base.

false