Exam Review (Ch 4-)

Which of the following is a trait shared by most successful entrepreneurs? They let other people take responsibility. They can get along with most people. They quit when things get too confused. They don't push themselves until they have to.

They can get along with most people.

Which of the following is true of the decision-making skills of most successful entrepreneurs? They can make a good decision only if they have plenty of time. They don't like to be the one who has to decide things. They let other people make the important decisions. They can usually make up their mind in a hurry if they have to.

They can usually make up their mind in a hurry if they have to

Which of the following decisions of an experienced chef of a restaurant is a nonprogrammed decision?

To hire a new sous chef

Who among the following has the traits required to run a business? Adam, who can get most people to go along when he starts something Juanita, who can only make good decisions if she has plenty of time Kai, who is irritated by most people Irwin, who sometimes says whatever is easiest

Adam, who can get most people to go along when he starts something

GraviTea Inc. is examining potential for a new tea product. It has engaged a panel of experts to individually and anonymously state their opinions. It is now in the process of averaging them and may ask the experts for another prediction or justification. The average prediction will be taken to represent the decision of the group of experts. GraviTea is using a(n) _____ for decision-making.

Delphi group

In the rational decision-making process, which of the following should one do after identifying the alternatives?

Evaluate the alternatives

Which of the following is the final step in the rational decision-making process?

Evaluating the results

When the president of Smithson Corp. proposed a new product for launch, his board of directors readily accepted his proposition without considering the risks. This is an example of _____.

GroupThink

_____ occurs when a group or team's desire for consensus and cohesiveness overwhelms its desire to reach the best possible decision.

GroupThink

________are similar to entrepreneurs except that they develop new businesses in the context of a large organization.

Intrapreneurs and Product champions

_____ is a major factor in nonprogrammed decisions.

Intuition

Which of the following statements is true of a coalition? a. It is a formal alliance of two parties. b. It is formed to achieve a common goal. c. Its purpose is to search for the first best alternative that meets some minimum standard. d. It is an alliance of individuals alone and not groups.

It is formed to achieve a common goal.

Which of the following is a disadvantage of team decision making?

It is more time consuming than individual decision making.

A labor contract is enforced by means of _____. a.the grievance procedure b.the disciplinary committee c.collective bargaining d.secret ballots

a.the grievance procedure

Perhaps the biggest cause of employee resistance to change is _____. a.uncertainty b.certainty c.participation d.education

a.uncertainty

Underfoot Constructions is an organization with a distinct division of labor and a consistent set of rules. Managers conduct business in an impersonal way and do not socialize with subordinates outside of work. Which of the following terms best describes this firm? a. Conglomerate b. Bureaucracy c. Technocracy d. Corporation

b. Bureaucracy

Which of the following is true of a team organization? a. It facilitates the personal development of its employees. b. It has little or no underlying functional hierarchy. c. Its goal is to upgrade employee talent and skill. d. Employees work on the same projects for the entirety of their tenure.

b. It has little or no underlying functional hierarchy.

Which of the following is an advantage of product departmentalization? a. The organization is able to use skilled specialists to deal with unique customers. b. The speed and effectiveness of decision making are enhanced. c. Administrative costs decrease. d. Managers focus on helping the group rather than the organization.

b. The speed and effectiveness of decision making are enhanced.

A _____ is a model of organization design based on a legitimate and formal system of authority. a. conglomerate b. bureaucracy c. technocracy d. corporation

b. bureaucracy

The divisional design of an organization: a. is based on a single business area. b. involves businesses in related areas. c. is also known as the H-form approach. d. results from a strategy of unrelated diversification.

b. involves businesses in related areas.

Managers in an organic organization are most likely to: a. feel like they are losing control when they delegate. b. make the end results clear when they delegate. c. feel that they can do most jobs better than their subordinates can. d. often take work home with them.

b. make the end results clear when they delegate.

Steven is a polymer scientist with the motivation and expertise needed to start his own business. If he chooses to finance his business in the same way that most new businesspeople finance theirs, he will: a. borrow money from a lender. b. rely on personal resources. c. form a strategic alliance. d. approach a venture capital company.

b. rely on personal resources.

A retail business: a. sells directly to producers. b. sells products manufactured by other firms. c. requires fewer employees than wholesalers. d. offers products to wholesalers for sale at a low price.

b. sells products manufactured by other firms.

Small-business investment companies: a. demand a representative on the board of directors of the business. b. take a more balanced approach in their choices than venture capital companies. c. have strict eligibility guidelines. d. have immediate participation loan programs.

b. take a more balanced approach in their choices than venture capital companies.

_______is a sophisticated rating method in which supervisors construct a rating scale associated with behavioral anchors a.Performance appraisal b.BARS c.Training d.360-degree feedback

b.BARS

Workers at a shipyard decide to vote for the creation of a union and engage in collective bargaining with the management. The _____ guarantees these rights to them. a.Equal Employment Opportunity Commission b.National Labor Relations Act c.Labor Management Relations Act d.Fair Labor Standards Act

b.National Labor Relations Act

Which of the following is true of knowledge workers? a.They identify more strongly with their organization than with their profession. b.Their contributions to an organization are based on their expertise. c.They do not require extensive or highly specialized training. d.Their skills do not become obsolete.

b.Their contributions to an organization are based on their expertise.

Employees at a data analytics firm are paid a certain extra amount every month. This amount is dependent on their work output for that month. This is an example of ____. a.a benefit b.an incentive c.salary d.individual wage

b.an incentive

Workers at a textile factory have demonstrated interest in forming a union. The next step would be to: a.hold a secret ballot. b.collect signed authorization cards. c.sign up members and elect officers. d.engage in collective bargaining over the first contract.

b.collect signed authorization cards.

Jian is one of the highest performers at his organization. During his performance appraisal, his manager gives him a high rating, not just on work quality but also on his team building and leadership skills. This is an example of _____. a.recency error b.halo error c.distinction bias d.adaptive bias

b.halo error

Following a steep rise in commodity prices, workers at an automobile factory demand higher pay and better benefits. This leads to a subsequent change in pay policies. This is an example of organizational change due to a(n) _____ force. a.external b.internal c.planned d.normative

b.internal

According to the Lewin Model, unfreezing involves: a.implementing the changes to be made. b.leading individuals to recognize why the change is necessary. c.reinforcing the change so that it becomes a part of the system. d.supporting the change by members of an organization.

b.leading individuals to recognize why the change is necessary.

Reengineering represents a _____ innovation. a.technical b.managerial c.product d.radical

b.managerial

Roger is described as a manager with low risk propensity. He is most likely to:

be cautious when making decisions.

Susan works at a large petroleum refinery. She heads the division responsible for the production of jet fuel from crude oil. Which of the following basic forms of technology is used at Susan's workplace? a. Small-batch technology b. Unit technology c. Continuous-process technology d. Large-batch technology

c. Continuous-process technology

Which of the following is false about control systems? a. Weak control systems can lead to serious problems. b. Effective control systems alert entrepreneurs to serious problems. c. Control systems are not needed to keep a business on track. d. A business may not survive without a good control system

c. Control systems are not needed to keep a business on track.

Which of the following is required to help alert entrepreneurs to potential trouble? a. Dedication b. Sufficient capital c. Effective control systems d. A positive outlook on life

c. Effective control systems

Which of the following is a disadvantage of the matrix design? a. Employees have limited opportunity to learn new skills. b. Teams cannot be created and redefined as needed. c. Employees may be uncertain about reporting relationships. d. Top managers do not get enough time to pay attention to long-range planning.

c. Employees may be uncertain about reporting relationships..

Which of the following statements is true of new businesses? a. Luck plays no role in the success of businesses. b. Control systems are unimportant when starting a new business. c. Insufficient capital can contribute to new business failure. d. A good outlook on life is irrelevant when starting a new business.

c. Insufficient capital can contribute to new business failure.

Which of the following is true of a learning organization? a. It has a rigid structure and remains unchanged to changing demands. b. It excludes performance measurement and continuous improvement from its list of goals. c. It works to facilitate personal development of its employees. d. It focuses solely on facilitating learning for lower-level employees.

c. It works to facilitate personal development of its employees.

Which of the following approaches to organizational design would best suit a company that has intense external competition, pressure for shared resources, and high information-processing requirements? a. U-form design b. Conglomerate design c. Matrix design d. H-form design

c. Matrix design

Which of the following statements on small businesses is true? a. More major innovations come from big businesses than small businesses. b. All new start-ups are in the field of high-tech communication. c. Small business sell consumers most of the products made by big manufacturers.. d. Big companies are the first to lay off workers during economic downswings.

c. Small business sell consumers most of the products made by big manufacturers..

Which of the following is true of innovation? a. Innovations are less likely to come from small businesses than from big businesses. b. All successful new start-ups are innovative dot-com companies. c. Small businesses supply over half of all innovations in the U.S. marketplace each year. d. All successful software firms started out as large organizations.

c. Small businesses supply over half of all innovations in the U.S. marketplace each year.

Which of the following is true of small businesses? a. Small businesses have a weak presence in the economy. b. Jobs are created solely by small entrepreneurial companies. c. Small firms specializing in international business create many new jobs. d. Small businesses have no impact on the world's mature economies.

c. Small firms specializing in international business create many new jobs.

Which of the following is a trait most likely to be shared by managers in mechanistic organizations? a. They do not often take work home with them. b. They believe that employees who can make their own decisions tend to be more efficient. c. They only delegate simple, routine tasks. d. When they delegate, they make sure everyone concerned is informed.

c. They only delegate simple, routine tasks.

Which of the following is a trait most likely to be shared by managers in organic organizations? a. They believe that when employees make their own decisions, it causes confusion. b. They often have to rush to meet deadlines. c. When they delegate, they always set specific dates for progress reports. d. When they delegate, they always explain precisely how the task is to be done.

c. When they delegate, they always set specific dates for progress reports.

The bureaucratic model of organization is based on the _____ theory. a. self-determination b. affective events c. classical organizational d. two-factor

c. classical organizational

Job rotation: a. refers to employees frequently changing their jobs. b. increases the difficulty level of tasks. c. involves moving employees from one job to another. d. is a form of job specialization.

c. involves moving employees from one job to another.

Which of the following is true of enterprise resource planning? a.It is used to implement changes in organization structure and design. b.It is the radical redesign of all aspects of a business to achieve major gains in cost. c.It integrates all activities and information flows that relate to a firm's critical processes. d.It is used to overcome resistance to organizational change.

c.It integrates all activities and information flows that relate to a firm's critical processes.

Which of the following is true of the 360-degree feedback? a.It is based on rating scales associated with behavioral anchors. b.It fails to provide sufficiently detailed information to an employee. c.It must be handled so as not to breed fear and mistrust in the workplace. d.It eliminates opportunity bias.

c.It must be handled so as not to breed fear and mistrust in the workplace.

Which of the following is true of organization development? a.It uses enterprise resource planning. b.It is used for reengineering. c.It uses behavioral science knowledge. d.It is focused on an organization's overall design.

c.It uses behavioral science knowledge.

Elysa Communications is a public relations firm with a large and diverse workforce. Which of the following is likely to be true of this organization? a.It will have high levels of employee turnover. b.There will be no conflict within the organization. c.It will have a better understanding of different market segments. d.There will be lower levels of productivity within the organization.

c.It will have a better understanding of different market segments.

Which of the following is an external force of change in the political dimension? a.New production techniques b.Societal values c.New laws affecting the economy d.Customer preferences for products

c.New laws affecting the economy

Which of the following is the first step in the reengineering process? a.Emphasizing top management's commitment to the reengineering effort b.Creating a sense of urgency among members of an organization c.Setting goals and developing a strategy for reengineering efforts d.Optimizing top-down and bottom-up perspectives

c.Setting goals and developing a strategy for reengineering efforts

Which of the following sets a minimum wage and requires the payment of overtime rates for work in excess of 40 hours per week? a.The Civil Rights Act of 1991 b.The Equal Pay Act of 1963 c.The Fair Labor Standards Act of 1938 d.The Labor Management Relations Act of 1947

c.The Fair Labor Standards Act of 1938

Which of the following is true of the U.S. workforce? a.The number of women is decreasing. b.The number of younger employees is increasing. c.There are more physically challenged employees. d.There are fewer single parents.

c.There are more physically challenged employees.

Which of the following is true of assessment centers? a.They are an efficient method of gathering information about an applicant's previous work history. b.They include drug tests and credit checks. c.They are particularly good for selecting current employees for promotion. d.They reveal biases inherent in the way people perceive and judge others at a first meeting.

c.They are particularly good for selecting current employees for promotion.

_____ are the hourly compensation paid to operating employees. a.Benefits b.Incentives c.Wages d.Salaries

c.Wages

Unemployment compensation is an example of _____. a.basic compensation b.an incentive c.a benefit d.salary

c.a benefit

The first step forecasting human resource demand and supply is ________. a.predicting demand b.planning for shortfalls and overstaffing c.assessing trends d.forecasting supply

c.assessing trends

The intent of _____ is to agree on a labor contract between management and the union that is satisfactory to both parties. a.the grievance procedure b.a disciplinary committee c.collective bargaining d.secret ballots

c.collective bargaining

Title VII of the Civil Rights Act of 1964: a.outlaws discrimination against people older than forty years. b.requires employers with government contracts to engage in affirmative action. c.forbids discrimination in all areas of the employment relationship. d.limits union power and requires organizations to bargain collectively with legally formed unions.

c.forbids discrimination in all areas of the employment relationship.

Which of the following best describes satisficing? a. Decision makers weigh and evaluate a large number of alternatives until they arrive at the best alternative. b. Decision makers use complete and perfect information to arrive at decisions. c. Decision makers go through the six steps of decision-making before they finalize on the best option. d. Decision makers search only until they find an alternative that meets some minimum standard of sufficiency.

d. Decision makers search only until they find an alternative that meets some minimum standard of sufficiency.

Which of the following is a disadvantage of functional departmentalization? a. Coordinating activities within a department is difficult. b. Supervision is hindered. c. Administrative costs rise. d. Decision making becomes slower and more bureaucratic.

d. Decision making becomes slower and more bureaucratic.

Which of the following is true of SBA financial programs? a. They require a representative on the board of directors of a company. b. Managers need approval from the SBA before making major decisions. c. They supply capital in return for stock. d. Eligible firms must be unable to get private financing at reasonable terms

d. Eligible firms must be unable to get private financing at reasonable terms

Which of the following statements on job creation is true? a. Business size, more than entrepreneurial business success, accounts for most new job creation. b. Larger firms hire at a faster rate than smaller firms. c. Small firms are the last to hire in times of economic recovery. d. Large companies are the last to lay off workers during economic downswings.

d. Large companies are the last to lay off workers during economic downswings.

Which of the following is true of the statement describes an ideal bureaucracy? a. Employees are dismissed arbitrarily. b. Performance metrics for the same task vary with employee skill level. c. It is a flat organization. d. Managers conduct business in an impersonal way.

d. Managers conduct business in an impersonal way.

Which of the following is true of most successful entrepreneurs? a. They launch their ventures in their spare time. b. They succeed straight out of college. c. They succeed alone. d. They carefully analyze market conditions

d. They carefully analyze market conditions

Which of the following is true of entrepreneurs? a. They hire professional managers to run their businesses. b. They run someone else's business. c. They assume the risk of the venture but are not actively involved in operating it. d. They take a personal stake in the success or failure of the business.

d. They take a personal stake in the success or failure of the business.

The _____ design results from a strategy of related diversification. a. functional b. conglomerate c. matrix d. divisional

d. divisional

Functional departmentalization: a. groups and arranges activities around products or product groups. b. groups jobs based on basic managerial functions such as planning and controlling. c. structures activities on the basis of defined geographic sites or areas. d. groups together jobs involving the same or similar activities. Feedback

d. groups together jobs involving the same or similar activities. Feedback

A small business: a. is publicly owned. b. meaningfully influences its environment. c. has only one retail outlet. d. is owned by one individual or a small group.

d. is owned by one individual or a small group.

Due to the strong economies of scale, small businesses generally do not do as well as large businesses in the _____ segment. a. construction b. transportation c. retailing d. manufacturing

d. manufacturing

Which of the following is true of planned change? a.It has increased potential for poorly conceived and executed change. b.It is a piecemeal response to circumstances as they develop. c.It refers to changes a firm makes after a threat has already occurred. d.It is a change that is designed in anticipation of future events.

d.It is a change that is designed in anticipation of future events.

The _____ was passed in 1947 to limit union power. a.Fair Labor Standards Act b.Civil Rights Act c.National Labor Relations Act d.Labor Management Relations Act

d.Labor Management Relations Act

_____ change is a piecemeal response to circumstances as they develop. a.Planned b.External c.Internal d.Reactive

d.Reactive

Jocelyn has a part-time job as a yoga instructor at a fitness academy. She is a(n): a.leased employee. b.on-call worker. c.independent contractor. d.contingent worker.

d.contingent worker.

The first step in a grievance procedure is: a.for an employee to submit the grievance to binding arbitration. b.for an aggrieved employee to make an appeal to the highest level of authority. c.for a labor law expert to hear both sides of the case and render a decision that both parties must obey. d.for an aggrieved employee to discuss the contract violation with an immediate superior.

d.for an aggrieved employee to discuss the contract violation with an immediate superior.

Force-field analysis is used to: a.forecast market trends. b.enable ethical compliance in an organization. c.implement the Lewin model of change. d.help overcome resistance to change.

d.help overcome resistance to change.

A realistic job preview: a.offers hired candidates an in-depth training about the new job's tasks and responsibilities. b.lists who occupies important managerial positions in an organization and how long he or she will remain in the position. c.contains details of education, skills, experience, and career aspirations of a firm's employees. d.provides an applicant with an accurate picture of what doing a job that a firm is trying to fill would be like.

d.provides an applicant with an accurate picture of what doing a job that a firm is trying to fill would be like.

Ali is a top manager at a software firm. During a period of organizational transition, he makes a decision to follow the steps outlined in the comprehensive approach to change. Accordingly, Ali will _____ immediately after diagnosing the relevant variables. a.recognize the need for change b.plan for implementation of the change c.establish goals for the change d.select the appropriate change technique

d.select the appropriate change technique

Contingent workers: a.attract high starting salaries. b.perform better than permanent employees. c.always have equal access to employee benefits. d.should be called in for well-defined periods of time.

d.should be called in for well-defined periods of time.

Under a _____, the availability of each alternative and its potential payoffs and costs are all associated with probability estimates.

state of risk

Mark is a logical and rational manager. When making decisions, he first acquires complete and perfect information and then eliminates uncertainty to arrive at a decision that best serves the interests of his company. Mark follows _____.

the classical decision model

Pauline, a manager of a popular chain of supermarkets, is making a decision using the rational decision-making process. She has completed evaluating all alternatives. What should she do next?

She should select the best alternative.

Which of the following is true of a state of uncertainty? a. The decision maker knows about all the risks involved. b. The availability of each alternative is associated with probability estimates. c. The decision maker does not know all the alternatives. d. There is a low degree of ambiguity and chances of making a bad decision.

The decision maker does not know all the alternatives.

Gillian works at a publishing firm where employees are compared directly with one another and ordered from best to worst during performance appraisals. This is an example of _____ as an appraisal method. a.ranking b.rating c.360-degree feedback d.a special performance test

a.ranking

Which of the following is an example of a business in the service industry? a. A car rental agency b. A department store c. A florist d. An automobile dealership

a. A car rental agency

Which of the following is a characteristic of organic organizations? a. High fluidity b. Stable environments c. Centralized authority d. Specialized jobs

a. High fluidity

Which of the following is an advantage of a franchise? a. It lets franchisers grow by using the investment money provided by franchisees. b. It allows a franchise to build a business from a scratch using its own business model. c. It allows each franchise outlet to be vastly different from other outlets. d. Its start-up costs are either very small or negligent.

a. It lets franchisers grow by using the investment money provided by franchisees.

Lana, owner of a high-end boutique, claims she selects items for her boutique purely on a hunch. Based on Lana's claim, which of the following is true of Lana's decision-making? a. Lana uses intuition. b. Lana satisfices. c. Lana uses the Delphi technique. d. Lana uses rationality.

a. Lana uses intuition.

A niche market is: a. a segment of a market that is not currently being exploited. b. a market in which customer needs are generic in nature. c. an area of organizational threat. d. a market in which several large firms compete.

a. a segment of a market that is not currently being exploited.

A two-person software development company with annual sales of $100,000 would be considered: a. a small business. b. a franchise. c. a large business. d. a joint venture.

a. a small business.

Miriam pools all her savings to open a bakery that specializes in wedding cakes. She bakes the cakes, runs the store, and creates a website that allows customers to place orders online. Miriam is a(n) _____. a. entrepreneur b. venture capitalist c. wholesaler d. business angel

a. entrepreneur

A _____ organization is one that works to facilitate the personal development of all its employees while continually transforming itself to respond to changing demands and needs. a. learning b. virtual c. team d. functional

a. learning

The print, television, and new media divisions are three of the many subunits at Soo Kin Corp. Each division has a separate team and competes in a different market. Soo Kin is an organization with: a. low integration. b. low differentiation. c. functional departmentalization d. sequential interdependence

a. low integration.

A mechanistic organization has: a. specialized jobs. b. activities structured in unpredictable ways. c. an informal model of organization design. d. decentralized authority.

a. specialized jobs.

Farah is one of a handful of permanent employees at an e-retailing company that has little to no formal structure. Depending on the situation, temporary workers are hired and facilities are leased. Support services are outsourced to other firms. The organization that Farah works for is a: a. virtual organization. b. bureaucracy. c. learning organization. d. conglomerate.

a. virtual organization.

Which of the following is an organizational approach to managing diversity? a.Diversity training b.Tolerance c.Communication d.Understanding

a.Diversity training

Which of the following is true of workforce diversity? a.It can be a source of competitive advantage. b.It leads higher levels of employee turnover. c.It causes a drop in creativity and innovation. d.It reduces conflict within an organization.

a.It can be a source of competitive advantage.

Which of the following is an example of internal recruiting? a.Notifying existing employees of new openings b.Conducting campus interviews c.Hiring people through employment agencies and executive search firms d.Recruiting walk-in candidates

a.Notifying existing employees of new openings

Which of the following is true of process innovations? a.They are changes in the way products or services are manufactured. b.They affect the broader context of development and do not directly affect manufacturing. c.They refer to changes in the physical characteristics of existing products or services. d.They are less important than product innovations when innovation enters the phase of growth.

a.They are changes in the way products or services are manufactured.

The benefits offered to employees by an organization: a.come in different forms such as insurance and pay for time not worked. b.refer to hourly compensation paid to operating employees. c.refer to special compensation opportunities that are tied to an employee's performance. d.are also known as an employee's salary and incentive.

a.come in different forms such as insurance and pay for time not worked.

In using contingent workers, management cannot ________. a.expect too much from such workers b.expect flexibility c.reduce performance expectations d.reduce labor costs

a.expect too much from such workers AND d.reduce labor costs

A company that manufactures a popular e-reader launches a version of the reader that has a backlight and improved readability. This is an example of a(n) _____ innovation. a.incremental b.radical c.managerial d.process

a.incremental

A change in the distribution of authority is an example of a change in: a.organizational structure and design. b.technology and operations. c.people and attitudes. d.business processes.

a.organizational structure and design.