MGMT EXAM 2
The _________ of the plan would involve tactical planning, such as functional, product-line, and department, which is done by middle managers.
implementation
In the___________, managers take corrective action by correcting deviations in the plan being carried out or by improving future plans
planning/control cycle
The reintroduction of a familiar practice
Adaptive change
A ______________ culture has an internal focus and values flexibility rather than stability and control.
Clan-based
When people seek information to support their point of view and discount data that do not
Confirmation Bias
____________ innovations focus on optimizing products or services for existing customers.
Core
_____ is the process of analyzing the underlying causes. a) Management through analysis b) Analytics c) Undermining d) Diagnosis e) Digging
D
An advantage of ______________ is that managers are encouraged to solve their own problems rather than buck the decision to a higher level. In addition, decisions are made more quickly, which increases the organization's flexibility and efficiency.
Decentralized authority
A grand strategy that involves reduction in the organization's efforts
Defensive/Retrenchment Strategy
People with a ________ style have a low tolerance for ambiguity and are oriented toward task and technical concerns in making decisions. They are efficient, logical, practical, and systematic in their approach to solving problems.
Directive
When an organization is operating several businesses in order to spread risk
Diversification
Uber has worked to improve and safeguard its driver performance appraisal rating system, yet it still lacks some of the basic components of traditional employee performance management systems. Based on the case, which of the following is not part of Uber's performance appraisal system for drivers? a) monitoring b) expectations c) feedback d) punishment e) rewards
E
When former CEO Johnson was hired, one of his first actions was to fire 600 employees at corporate headquarters. He continued to cut costs over the next two years by firing 19,000 store employees. Based on the ten reasons why employees resist change, which of the reasons may be prevalent based on Johnson's actions? a) peer pressure to resist change b) personality conflicts between employees and change agents c) employees are predisposed toward change d) poor timing of change e) fear of job security
E
In two-tier wage contracts, veteran employees are paid less or receive fewer benefits than new employees. T/F
False
The IT network that allows for the movement of organizational information within that company is known as the organizational structure. T/F
False
A grand strategy that involves expansion—as in sales revenues, market share, number of employees, or number of customers
Growth Strategy
In a __________ design, teams or workgroups—either temporary or permanent—are used to improve collaboration and work on shared tasks by breaking down internal boundaries.
Horizontal
The economic or productive potential of an employee's knowledge, experience, and actions
Human capital
The introduction of a practice that is new to the organization
Innovative change
the introduction of something that is new to the organization, as it has not been tried with the organization before, yet not something this is new to the industry
Innovative change
Include processes, workflow, job design, and technology
Methods
Encompasses a wide range of activities or projects
Program
A grand strategy that involves little or no significant change
Stability Strategy
Best for activities that occur over and over again
Standing plan
When managers and employees within the same department are brought together in cross-functional teams to solve particular problems, their company is using a team-based design. T/F
True
The systems model of change consists of three parts:
inputs, target elements of change, and outputs
Plan that breaks long-term output into short-term targets or goals
operating plan
Based on the case, which of the following has not resulted from the McCloskeys's planning and strategic management processes? a) higher employee satisfaction b) sustainable competitive advantage c) innovation d) environmentally-sound practices e) direction and momentum
A
Occurs when an employee retires or when the company eliminates his or her job, and the employer leaves the vacancy unfilled
Attrition
__________________, or bite-size learning, segments learning into bite-size content, enabling a student to master one piece of learning before advancing to anything else.
Microlearning
The agents of change that are positive and supportive
Thrusters
______________ innovations focus on inventing breakthrough products that don't exist yet.
Transformational
The goal should be followed by a(n) _______________, which defines the course of action needed to achieve the stated goal, such as a marketing plan or sales plan.
action plan
In a __________ assessment, employees are appraised not only by their managerial superiors but also by peers, subordinates, and sometimes clients, thus providing several perspectives.
360-degree
_________ tests measure physical abilities, strength and stamina, mechanical ability, and so on.
Ability
In a _____________ interview, the interviewer explores what applicants have actually done in the past.
Behavioral-description
A process by which a company compares its performance with that of high-performing organizations
Benchmarking
The process of examining large amounts of data of a variety of types to uncover hidden patterns, unknown correlations, and other useful information
Big Data analytics
As the number of Uber drivers grows at a rapid rate, the company benefits from the fact that one of the few hiring tests it needs to ensure drivers pass is already done for them—the driving test needed to receive a driver's license. In the framework of employment tests, which type of test(s) does a driving test qualify as? a) personality test b) ability test c) ability and performance tests d) performance test e) integrity test
C
Uber reviews and evaluates each ride, which can be in the millions each day, in order to set surge pricing. This concept is most closely related to which of the following? a) bounded rationality b) satisficing c) big data analytics d) nonrational decision making e) intuition
C
Someone trained about matters of ethics in the workplace
Ethics Officer
A logic manager is someone trained about matters of ethics in the workplace. T/F
False
Outlines a set of responses to particular circumstances
Procedure
A _________ innovation is a change in the way a product or service is conceived, manufactured, or disseminated.
Process
Strategic management is a process in the formulation, implementation, and execution of strategies and strategic goals to advance the purposes of the organization. T/F
True
IKEA's product development process is based on extensive market research. Which step of the strategic-management process is most closely related to this development process? a) assess the current reality b) formulate the grand strategy c) maintain strategic control d) implement the strategy e) establish the mission, vision, and values statements
A
When Ellison was hired as CEO, he conducted more than 60 employee town-hall meetings and visited 100 stores with JCPenney's then interim CEO. These face-to-face interactions were instrumental to Ellison as he was looking for disconnects between corporate strategy and store operations. Which part of the organizational development process does this exemplify? a) diagnosis b) support c) feedback d) intervention e) evaluation
A
If Volkswagen's current CEO, Herbert Diess, wants to focus on speed and results in cleaning up the scandal that has plagued the organization, he should utilize a(n) ___________ decision-making style. a) behavioral b) proactive c) directive d) conceptual e) analytical
C
Ron Johnson, JCPenney's former CEO, had a vision to make Penney hipper, and he changed long-held strategies and management practices that defined the company's culture and identity. Which kind of change does this vision most closely align with? a) transition change b) radically innovative change c) innovative change d) periodic change e) adaptive change
C
The celebration of key accomplishments by chest bumps and the push-up contests reflected what level of organizational culture at Uber during former CEO Kalanick's tenure? a) espoused values b) enacted values c) observable artifacts d) basic assumptions e) hierarchy
C
California regulators tested Volkswagen cars and continually found them to pollute more on the road than in the lab. Volkswagen was informed about these irregularities at the time and executives concluded that they were the result of "technical glitches." Which decision-making heuristic can this be attributed to? a) anchoring bias b) overconfidence bias c) availability bias d) framing bias e) sunk-cost bias
B
Being aware of your decision-making style does not really help you determine your strengths and weaknesses as a decision maker, but it can help you understand when a decision needs to be made. T/F
False
Used to identify the forces that support change and heading in a new direction versus those forces that create resistance and inhibit change
Force-field analysis
____________ is a time-consuming process both because it is important and because the strategy must be translated into more specific strategic plans, which determine what the organization's long-term goals should be for the next one to five years.
Formulating Strategy
Often a _______ strategy takes the form of an innovation strategy, which constitutes growing market share or profits by innovating improvements in products or services.
Growth
Include physical manifestations such as manner of dress, awards, myths and stories about the company, rituals and ceremonies, and decorations, as well as visible behavior exhibited by managers and employees
Observable artifacts
Includes mentoring activities at an organization that assists in the introduction and/or reinforcement of organizational values
Role modeling, training, and coaching
Designates a specific required action
Rule
The owners of a computer repair shop want to better formulate strategies, so they are doing a SWOT analysis to understand the strengths and weaknesses within their company and the opportunities and threats of the external environment. These are some of the benefits of doing a SWOT analysis. T/F
True
An organization's vision statement states _____. For example, the Cleveland Clinic's vision statement says that it "strives to be the world's leader in patient experience, clinical outcomes, research, and education." a) what the company wants to become and where it wants to go strategically b) its competition and external environment c) the organization's purpose or reason for being d) the organization's purpose or reason for being e) the ethical and diversity standards of the organization
A
_________ on the BCG matrix have a high growth rate and high market share
Stars
The 21-day process used to break down the manure into "compost-like material while releasing biogas, which is captured in pipes" is part of a(n) a) operating plan b) master plan c) strategic plan d) common plan e) action plan
A
Uber's expansion on the innovation front depends on its self-driving cars plan. The implementation of this plan would be the responsibility of which of the following managers? a) product-line b) chief executive officer c) vice president d) unit manager e) team leader
A
Assume Google's "People Operations" Department is planning on creating a new position for its data analysis team. Which of the following would be a good first step? a) write a job description b) conduct candidate interviews c) conduct a job analysis d) write a job specification e) conduct a job draft
C
In the _________ stage, employees need to be given the tools for change: new information, new perspectives, and/or new models of behavior.
Changing
The agents acting against change
Counterthrusters
After 20 years on the job, Melanie retired. For several different reasons, the company decided not to replace Melanie with someone else. This is an example of turnover for a company. T/F
False
_____________ tests, or skills tests, measure performance on actual job tasks.
Performance
Defined as a set of processes and managerial behaviors that involve defining, monitoring, measuring, evaluating, and providing consequences for performance expectations
Performance Management
Has less complexity and scope than a program
Project
Used for activities that are not likely to be repeated again
Single-use plan
In a __________ interview, the interviewer focuses on hypothetical situations.
Situational
___________ appraisals are based on an employee's traits and behaviors. Such evaluations are highly subject to being affected the evaluator's personal bias.
Subjective
Chelsea, a middle manager for a large clothing chain, received an e-mail from the CEO outlining the new goal of decreasing company costs over the next three years. This is an example of a strategic goal. T/F
True
Prior to opening his business, Francois, the owner of The Crepe Factory, is writing a document that explains the reason for his business. This statement would be a part of his mission statement. T/F
True
Strategy formulation is the process of choosing among different strategies and altering them to best fit the organization's needs. T/F
True
Strategy implementation is putting strategic plans into effect, which means dealing with roadblocks within the organization's structure and culture and seeing if the right people and control systems are available to execute the plans. T/F
True
A ________ span of control means that a manager has several people reporting to him or her.
Wide
Based on what you know about the types of plans, self-driving cars would be an example of which of the following? a) program b) policy c) project d) procedure e) rule
A
Strategy to keep the costs, and hence prices, of a product or service below those of competitors and to target a wide market.
Cost-leadership Strategy
The McCloskeys developed an ultra-filtration process for a new milk drink. Based on the case and VRIO framework, which of the following is surely true? a) The new product does not build on the McCloskeys's mission statement. b) The McCloskeys are about equally competitive with competitors. c) Fair Life LLC is organized to exploit their new capability. d) The McCloskeys have a sustained competitive advantage. e) The McCloskeys have at least a temporary competitive advantage.
E
The planning/control cycle is an order planning system in which employees work with customers to plan orders and discuss delivery times. T/F
False
Adam, the owner of The Toy Box (a toy store), has chosen his products carefully. They are all handmade of wood; none are cheap games made of cardboard and paper. He knows he will be selling his toys to both adults and children; for example, his expensive chess and backgammon sets are quite expensive because the board and pieces are all made of wood by local artists and craftsmen. He knows that his customer base will not include parents who are looking for an inexpensive toy for their children or to give as a birthday gift; there is another store in town that offers mass-produced games. As part of his marketing outreach, Adam offers "game nights" where he sets up game boards and invites local teens and adults to take part in light-hearted competitions, where the winners receive a 10 percent discount to a game at the Toy Box. All of Adam's activities are aimed at giving Adam a sustainable competitive advantage through a) strategic positioning. b) blue ocean strategy. c) defensive strategy. d) vertical integration. e) diversified portfolio.
A
At W.L. Gore, associates have sponsors whose goal is to help them succeed. Moreover, sponsors help associates chart a course in the organization that will offer personal fulfillment while maximizing their contribution to the enterprise. Which of the 12 ways to embed organizational culture does this most closely align with? a) role modeling, training, and coaching b) organizational goals and performance criteria c) slogans and sayings d) physical design e) formal statements
A
Google has supervisors provide evaluations of subordinates, but employees and their managers also select a group of peers to conduct semi-annual evaluations. This is most closely resembles which of the following? a) 360-degree assessment b) objective appraisals c) trait appraisals d) behavioral appraisals e) subjective appraisals
A
Part of the frustration by drivers, and the reason that some want to unionize, is that they don't receive all parts of a typical compensation package often given to employees. Based on the case, which is the only part of a typical compensation package that Uber's "business partners" do currently receive? a) base pay b) bonuses c) health insurance d) stock options e) vacation days
A
Salaried executive, administrative, and professional employees are exempt from ______ rules. a) overtime b) Fair Labor Standards Act c) Equal Employment Opportunity (EEO) d) Americans with Disabilities Act (ADA) e) Occupational Safety and Health Administration (OSHA)
A
Samantha is the return desk coordinator in a department store, and she has set a goal this month of finishing her daily office work quicker so she can assist at the Return Desk earlier in the morning. She knows this will also help decrease theft, which will assist the company in achieving its goal of decreasing costs. Samantha's goal of finishing her office work quicker is a(n) a) operational goal b) strategic goal c) operating plan d) strategic plan e) tactical plan
A
Sexual harassment can prevent people from performing their best due to making them feel uncomfortable or unsafe in their workplace. This means that the type of harassment alleged to be taking place against some Uber employees could negatively impact those employees' a) human capital. b) financial capital. c) job capital. d) knowledge capital. e) social capital.
A
Which of the following is NOT a supertrend affecting the future of business? a) Managers are thinking in terms of mass markets—mass communication, mass behavior, and mass values. b) Offshore suppliers are changing the way we work. c) Competitors offering specialized solutions require we get our products to market faster. d) Knowledge, not information, is becoming the new competitive advantage. e) Some companies are unable to survive disruptive innovation.
A
_____ is the intervention phase of the OD process. a) Treatment b) Rationalization c) Evaluation d) Ratiocination e) Diagnosis
A
Bill Gore believed in keeping operational facilities small due to his focus on high quality interpersonal relationships, and as such, the company splits up people at a facility once it reaches a certain size by creating a new location. Which level of organizational culture does this describe? a) competing values b) observable artifacts c) enacted values d) espoused values e) basic assumptions
B
Bill Gore wanted to start a company that was free from bureaucracy and a command and control style of leadership. He felt that this was the best way to foster creativity, engagement, and innovation. What type of organizational design fits best with this view? a) mechanistic b) organic c) market d) vertical e) centralized
B
Employees resist change for all the following reasons EXCEPT a) individuals' predisposition toward change. b) faith in change agent's intentions. c) disruption of group relationships. d) peer pressure. e) fear of the unknown or failure.
B
Google has a training program known as Sales Pro. This program takes about six hours, but rather than delivering it all in one swoop, Google breaks the information into bite-sized chunks lasting no more than seven minutes each. SalesPro represents a) behavioral-descriptions. b) microlearning. c) a realistic job preview. d) an ability test. e) an employment test.
B
JCPenney's former CEO, Marvin Ellison, created a strategy that included hiring experienced senior executives to lead efforts in e-commerce, supply chain, information technology, and marketing. Which stage of Lewin's model of change (Figure 10.2) best represents this strategy? a) refreezing b) changing c) unfreezing d) supplying e) adapting
B
Mr. Gonzalez, the sales manager, told his sales team that he wanted them to write down their work goals for the year. To help his team achieve their stated goals, the next thing that he should ask for are each team member's a) code of ethics. b) action plan. c) personal vision. d) values. e) business plan.
B
_____ is the set of processes and managerial behaviors that involve defining, monitoring, measuring, evaluating, and providing consequences for performance expectations. a) Performance appraisal b) Performance management c) Orientation d) Employee development e) Workforce evaluation
B
________ is setting goals and deciding how to achieve them a) Focusing b) Planning c) Regulating d) Organizing e) Controlling
B
Former-CEO Kalanick's question of "What kind of brand do we want to be?" represents which stage of the strategic management process? a) implement the strategy b) assess the current reality c) establish the mission and vision and values d) maintain strategic control e) formulate the grand strategy and strategic, tactical, and operational plans
C
Uber drivers' performance is currently rated by riders in their vehicles. This means that the performance appraisal they receive is primarily a) unbiased. b) behaviorally-anchored. c) subjective. d) objective. e) 360-degree feedback.
C
Uber has created new product lines aimed at growing revenue, such as establishing Uber Air, which would function as an air taxi. This strategy is known as a) vertical integration. b) single-product. c) diversification. d) merger. e) cost-focus.
C
A _______ culture has an internal focus and values flexibility rather than stability and control. Like a family-type organization, it encourages collaboration among employees, striving to encourage cohesion through consensus and job satisfaction and to increase commitment through employee involvement.
Clan
Frank is a CPA who became interested in helping adults in some of the poorer neighborhoods file their taxes. He plans to start a tax filing center in a low-income area to help residents file their taxes at no cost. Frank's center is an example of a(n) a) for-profit organization. b) union. c) coop. d) nonprofit organization. e) association.
D
Imani, the CEO of Dynamic Health, wants managers and employees to instruct each other about the organization's chosen values and beliefs. Imani wants to embed the company culture throughout. Which of the following would be encouraged by Imani? a) Juan posts comparison charts in the break room comparing Dynamic Health sales with other competitors. b) Sophie creates a system that values attendance and productivity. c) Craig sees the company logo as changing into a superhero because the company name is Dynamic Health. d) George tells a story about a time when the company was first starting out and how the employees banded together. e) Cara designs a plan to be sure diverse cultures are hired in the agency.
D
Kenneth, the plant manager, was talking with another manager about Brendan, the lead engineer in the corporate R & D department. Kenneth remarked, "Brendan is so bright, and he is an expert in designing products. But like so many experts, he can't imagine what it's like to be as ignorant as the rest of us. I think at times, he cannot see things from an outsider's perspective." Brendan is suffering from a) the tunnel vision effect. b) the intellectual fog effect. c) an analytics perspective. d) the curse of knowledge. e) a narrow perspective.
D
Many customers have visited Patty's Diner for decades because of the diner's friendly service. Most customers feel that Patty's is the friendliest placed around. In a SWOT analysis, the friendly service at Patty's is an example of a company a) vision. b) opportunity. c) weakness. d) strength. e) threat.
D
Uber does not own its fleet of cars; rather, it relies on contracted drivers. These drivers represent which competitive force in Uber's environment? a) threat of new entrants b) threat of substitute products or services c) rivalry among competitors d) bargaining power of suppliers e) bargaining power of buyers
D
An organization should adopt planning and strategic management to a) decrease costs and increase synergy. b) provide encourage new ideas and increase organization diversity. c) keep employees happy, encourage new ideas, and decrease costs. d) develop MBO, encourage new ideas, and increase profits. e) provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage.
E
Assume Uber planned to cut losses by 40 percent by withdrawing from countries like China and Singapore. A year has now passed since they have withdrawn, and the company determines that losses have actually increased. Which step in the planning/control cycle does Uber need to now execute? a) make the plan b) define objectives c) make the goal d) carry out the plan e) control the direction
E
CEO Khosrowshahi's strategic goal is for Uber to raise funds via an Initial Public Offering (IPO) in 2019. Which of the following would be an example of an operational goal in support of this? a) redeveloping the company's mission statement b) increasing Uber Eats sales by 10 percent in the next six months c) developing a self-driving car prototype d) expanding to Indonesia by the end of the year e) settling a self-driving car trade secrets lawsuit with Waymo
E
Imagine you are part of Uber's senior leadership team and are eager to see the company expand to a particular country. If you were to only pull data from sources you believed would support your feeling that demand in the country is high, you would be exhibiting the ________ bias. a) hindsight b) anchoring and adjustment c) escalation of commitment d) sunk-cost e) confirmation
E
In the ______ stage of Kurt Lewin's change model, managers try to instill in employees the motivation to change, encouraging them to let go of behaviors that are resistant to innovation. a) refreezing b) freezing c) diagnosing d) modeling e) unfreezing
E
The McCloskeys started Fair Oaks with a plan to see how the farm could convert 430,000 gallons of daily manure into a sustainable asset. This is known as a) tactical planning b) a mission statement c) operational planning d) a vision statement e) strategic planning
E
Which of the following is not true about group decision-making? a) The larger the group, the lower the quality of the decision. b) Groups take longer to make decisions. c) Groups are more confident about their choices than individuals are. d) People who aren't familiar with one another tend to make better decisions when the members have common knowledge. e) An added benefit of group decision-making is groupthink.
E
According to the _____________, salaried executive, administrative, and professional employees are exempt from overtime rules.
Fair Labor Standards Act of 1938
Two advantages of decentralization are that (1) managers are encouraged to not solve their own problems, but rather to ask for assistance as soon as possible, and (2) decisions are made more slowly because they are discussed at a higher level of management. T/F
False
A ______ culture has a strong external focus and values stability and control. Employees are expected to work hard, react fast, and deliver quality work on time; those who deliver results are rewarded.
Market
In _________ organizations, authority is centralized, tasks and rules are clearly specified, and employees are closely supervised.
Mechanistic
In a(n) __________ organization, authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks.
Organic
A formal system of task and reporting relationships that coordinate and motivates an organization's members so that they can work together to achieve the organization's goals
Organizational Structure
Bias in which people's subjective confidence in their decision making is greater than their objective accuracy
Overconfidence Bias
Gives a general idea of how to respond to a designated situation
Policy
Changes that address problems or opportunities before they arise
Proactive
A ________ innovation in the appearance or performance of a product or service.
Product
Changes that address problems or opportunities after or as they arise
Reactive
SMART goal
Specific, Measurable, Attainable, Results-oriented, and has Target dates
Are inside or internal matters; They are the skills and capabilities that give the organization special competencies in executing strategies in pursuit of its vision; Could be work processes, organization, culture, staff, product quality, production capacity, image, financial resources and requirements, service levels, and other internal matters.
Strengths
Dynamic Apps is an organization specializing in highly specialized technology software, but it found that its original business idea is not working. Rather than failing as a company, it chose a new direction and rewrote its business plan. Dynamic Apps is an example of how managers need to think and act as if their organization is an unfinished, changeable prototype that won't be ruined by dangerous new ideas. T/F
True
Taylor, a district manager for a retail pharmaceutical store, asked his store managers for their store goals next year. Zoe, one of the store managers, said, "I am going to increase my market share significantly next year by visiting doctors' offices." Taylor then responded to Zoe with "Precisely how much are you going to increase your market share and by what date?" Taylor is asking Zoe to formulate a SMART goal. T/F
True
Occurs when an employee abandons, retires, or is terminated from a job, and the employer seeks to replace him or her
Turnover
New employees are paid less or receive fewer benefits than veteran employees have
Two-tier wage contract