Management Test 2 multi-choice

____ results from maximum delegation throughout the organization.

Decentralization

The best-known and most important behavioral approach to organization design is

Likert's System 4.

Which of the following methods of coordination is MOST appropriate for pooled or simple sequential interdependence?

Managerial hierarchy or rules and procedures

The ____ form of organization design is one in which a set of product groups is superimposed on a functional organization design.

Matrix

Kansas State University operates in a relatively stable environment. According to the work of Burns and Stalker, which form of organization design is most appropriate for the university?

Mechanistic

Which of the following is an example of a first-mover advantage?

Orange County Choppers, builders of custom motorcycles, can exploit their own reality television show.

Goals serve four very important purposes. Each purpose is related closely to one of the four functions of management. According to the text, which of the four functions of management is NOT specifically addressed by one of the purposes served by goals?

Organizing

What is the most common source of funds for entrepreneurs?

Personal financial resources

Jeff wants to start a company that makes the medical consent forms patients are required to sign easier to understand. Jeff is a doctor with medical sales experience; his partner Gina has the technical abilities to make the product. Where should they look first for financing?

Personal resources

In schools math, English, science and social studies departments operate separately. Student test scores in each area are gathered to evaluate the effectiveness of the school. What level of interdependence does this represent?

Pooled

Which of the following is NOT generally considered to be a role performed by small businesses?

Provision of capital for expansion of large businesses

Which of the following is an example of a standing plan?

-The "Do Not Litter" sign in the city park -The middle school plan for dealing with a student with a learning disability -The Dairy Queen restaurant's plan for how to make a banana split -The way students are selected for college admission all of the above.

The advantages of a flat organization include

-greater communication between upper and lower levels of management. -lower total managerial costs. -flexibility. -improved employee productivity. all of the above.

An entrepreneur looking to enter the manufacturing industry is more likely to fail due to

-size of initial capital investment. -economies of scale. -labor requirements. -market saturation.

Most experts say that anyone opening a new business should be financially strong enough to operate without business income for

6 −12 months.

____ is defined as clear and distinct lines of authority among all positions in an organization.

Chain of command

Which of the following is NOT an example of an entrepreneur?

Cindy has a yard sale once a year.

What is the essence of formal goal setting?

Collaborative planning

planning is the process by which managers identify alternative courses of action that the organization might follow if various conditions arise.

Contingency

In their book In Search of Excellence, Peters and Waterman found that successful companies "stuck to their knitting." In other words, they concentrated on those things that they do well. To which component of organizational strategy does this idea most directly relate?

Distinctive competence

Which of the following statements most correctly reflects the relationship between goal setting and planning?

Each process enhances the other.

An international strategy in which the company attempts to combine the benefits of global scale efficiencies with the benefits and advantages of local responsiveness is called global strategy.

False.

Devising successful strategies is a simple task.

False.

Functional departmentalization means the departments are grouped according to planning, controlling, organizing and leading.

False.

More than any other industry, manufacturing lends itself to small business.

False.

Organization structure is the manner in which basic organizational components such as strategy, tactics, and operations are arranged for a particular organization.

False.

Pooled interdependence is when the output of one unit becomes the input for another in a linear fashion.

False.

Programs and projects are short-range plans.

False.

SWOT analysis determines the primary strategy, wages, operations, and tactics in an organization.

False.

Small business is a strong presence in the U.S.economy, but that is not true of most of the world's mature economies.

False.

The role of social media in departmentalization is well defined and applied.

False.

There are eight basic building blocks managers can use in constructing an organization.

False.

Which of the following is NOT a source of management advice for an entrepreneur?

Federal Trade Commission (FTC)

____ departmentalization has the advantage of reducing the number of skills a manager must possess.

Functional

Which of the following statements about Likert's approach is FALSE?

It is flexible and varies from one manager to another.

Although a pay increase would be useful when a change in job design is made, for which of the following would it be expected?

Job enlargement

____ can be used to balance specialization.

Job rotation

____ is defined as systematically moving employees from one job to another.

Job rotation

Which of the following statements comparing small businesses to large businesses is FALSE?

Large businesses show better financial performance than small businesses.

Dorothy Thompson heads the research and development laboratory at a small chemical company. Because she is not a chemist, she feels uneasy setting goals for the research chemists, so she asks them to set their own goals. Thompson's area suffers from which of the following barriers to goal setting and planning?

Reluctance to establish goals

Rose Marie's boss tells her what to do, not how to do it. Which of the following statements is TRUE?

Rose Marie apparently has a high degree of autonomy in her job.

Which of the following is NOT a source of management advice for an entrepreneur?

Securities and Exchange Commission (SEC)

High schools register seniors first, then juniors, sophomores and finally freshmen. What basis of departmentalization does this represent?

Sequence

In terms of the number of new jobs formed each year, how does small business compare to big business?

Small business was recently passed by big business in creating new jobs

Which of the following refers to the number of subordinates who report directly to a given manager?

Span of management

Which of these is associated with a smaller span of management?

Subordinates who are widely dispersed

Which of the following coordination techniques is appropriate when interdependence is of the complex reciprocal variety?

Task force

Which of the following is the BEST example of a standard operating procedure?

The Dairy Queen restaurant's plan for how to make a banana split

Job specialization evolved from the concept of division of labor.

True

A firm that pursues a single-product strategy likely relies on functional departmentalization and can use a mechanistic design.

True.

An occasional situation may call for a stand-alone tactical plan, but most of the time tactical plans flow from and must be consistent with a strategic plan.

True.

Any start-up or new venture may succeed and grow to become a large business, succeed but remain small, fail and shut down, or be bought by an existing business.

True.

Getting into business today is easier and faster than ever before and there are many more potential opportunities than at any other time in history.

True.

In general, a well-conceived strategy addresses three areas: distinctive competence, scope, and resource deployment.

True.

Once jobs have been broken into small units, the departments need to be linked back together through coordination.

True.

The concept of product life cycle can be used to choose which strategy is appropriate for a given product at a particular point in time.

True.

The human resource administrator was following a policy when he offered a candidate a job and started the negotiation process.

True.

Which of the following statements describes specialization?

With specialization, workers are more likely to be absent.

GE noticed that financial institutions had large profit margins. When GE entered the industry, its SBU was

a question mark.

The 5.8 magnitude earthquake centered in Virginia surprised people along the East coast. The plans to evacuate buildings in DC were ____, used for multiple purposes.

a standard operating procedure

Hurricane Irene was forecast to hit the Mid-Atlantic/Northeast about a week before it arrived. The plan to evacuate the Outer Banks of North Carolina was a(n) ____ plan.

action

Integrating departments

are more permanent than task forces.

The most important part of the small business financial plan is the

cash budget.

Philip Morris markets Marlboro cigarettes, the number-one selling cigarette brand in the world. Outside the United States, Marlboro generates huge profits that Philip Morris uses to support other less successful SBUs. According to the BCG matrix, Marlboro is an example of a

cash cow.

Canine Companions for Independence's puppy raiser volunteers attend monthly classes to learn how to train the puppy. The classes create some

centralization.

The ____ is the single most important individual in any organization's planning process.

chief executive officer

AOL eliminated fees to some subscribers to try to attract more users. AOL was using a(n) ____ strategy.

defender

A(n) ____ strategy is a plan chosen and implemented to support specific goals, such as an increase of market share by 5 percent.

deliberate

Graicunas quantified three kinds of interactions with subordinates. They are

direct, cross, and group.

The primary reason for coordination in organizations is

due to the interdependence of work units and groups.

To decrease their administrative intensity, many organizations are

eliminating staff positions.

Google bought YouTube even though it operated at a loss. The business strategy for YouTube is ____.

emergent

Sara Blakely developed the idea to make Spanx undergarments. She filed a patent and researched production. She now sells Spanx through department stores. She is an example of a(n)

entrepreneur.

Whole Foods has succeeded in bringing natural foods to mainstream retail. A small business entering the natural food retail market would have a(n)

established market competitor.

Target is a discount retailer with cleaner stores, more customer service, and more current fashions. Target uses a(n) ____ strategy.

focus

Though all reporters say they have no bias, Fox News covers stories from what many believe to be a right-of-center political point of view. They use a(n) ____ strategy.

focus

The most significant disadvantage to franchising as a means of acquiring a business is

high start-up costs.

Organizing

is the second basic managerial function; it follows planning and decision making. involves shaping the organization over time and is never truly finished. involves grouping activities and resources. can help the organization be flexible.

Invacare modified the wheelchair assembly process so that workers assemble the entire wheelchair rather than simply add one or two pieces as is normal on most assembly lines. This is an example of

job enlargement.

Throughout their careers, actors usually try to perform in a variety of parts and in a variety of genres so that they are not typecast. The actors want

job enrichment.

In a manufacturing company, you will most likely find more

long-term than short-term strategic goals.

Four general factors contribute to the failure rate of small businesses. They include

managerial inexperience.

The ____ of Choice Waste Management Ltd. is "to be the best international, integrated, leading waste management company - working in the best competitive environment to deliver the best value and sustainable waste solutions to meet the world's needs."

mission statement

Goals set for short-term issues are called

operational

Cengage organizes authors based on the subject they write. Cengage uses ____ departmentalization.

product

GM has a division for GMC trucks and one for Buicks, Oldsmobiles, and Cadillacs. This is an example of ____ departmentalization.

product

Target stores have departments for groceries, clothing, electronics, jewelry, and home goods. This is an example of departmentalization by

product.

3M is a highly innovative firm that is constantly seeking new markets and is oriented toward growth and taking risks. It uses a(n) ____ strategy.

prospector

Goals can

provide guidance and direction. improve planning. motivate employees. provide measure and control. All of these.

Engelhard has just learned of a hostile takeover attempt from BASF. Engelhard needs to develop a(n) ____ plan to thwart this attempted acquisition.

reaction

St. Luke's Hospital started offering deeply discounted computerized tomography (CT) scans for smokers worried about lung cancer. St. Luke's willingness to change the price is an example of change in

resource deployment.

Yoshiko is the manager of the accounting department. She has an assistant manager who reports to her. Six supervisors also report to her from other divisions. The supervisors have three subordinates each. Yoshiko has a span of management of

seven.

The starting point for all job design activities is determining the level of desired

specialization.

Facebook has high market share and high market growth rate, which would make it a ____.

star

Apple has a large share of the growing tablet market. Apple is an example of a

star.

Datril was introduced into the pain-reliever market as a product just like Tylenol. The makers of Datril used ____ to copy Tylenol's distinctive competence.

strategic imitation

In a small community in Michigan, there are two funeral homes. One of them clips all pictures from the local paper, laminates them, and mails them to the person photographed with a brief note. This is an attempt to build positive relations with potential customers during happy times. If the other funeral home chose to make similar customer contact, the competitors would have

strategic imitation.

Laundry is never done. Unless it is done naked, doing laundry creates more work. Laundry lacks ____.

task identity

Clorox Corporation owns Kingsford charcoal, Matchlight charcoal lighter, Prime Choice steak sauce, and a restaurant chain. This is an example of ____ diversification.

unrelated

Teachers at South Elementary School are allowed to pair up and teach a class twice as large as others. This allows the teachers to specialize in the subjects they most enjoy. This is an example of

work teams.