MGT 3301 Ch. 7, MGT 3301 Ch 8
Rules and SOPs are used to regulate the behavior of workers within the organization with a ________ control system. A) bureaucratic B) feedback C) feedforward D) concurrent
A) bureaucratic
The financial ratio that indicates whether or not the organization is capable of paying off its short-term debts without having to sell its inventory is the ________ ratio. A) quick B) current C) days sales outstanding D) profit
A) quick
Organizational ________ is the formal system of task and job reporting relationships that determines how employees use resources to achieve organizational goals. A) structure B) strategy C) mission D) policy
A) structure
According to Charles Perrow, the routineness of technology is determined by task A) volatility. B) analyzability. C) performance. D) commitment.
B) analyzability.
The relative authority that each manager in the organization has from the CEO down to the lowest-level manager is called the A) span of control. B) chain of command. C) corporate ladder. D) unity of direction.
B) chain of command.
The financial ratio that measures the ability of the organization to pay its short-term debts is the ________ ratio. A) leverage B) liquidity C) activity D) profit
B) liquidity
The extent to which a job requires a worker to perform all of the tasks that are required to complete the job is known as A) skill variety. B) task identity. C) task significance. D) feedback.
B) task identity.
Which of the following is the series of global strategic alliances that an organization creates with suppliers, manufacturers, and distributors to produce and market a product? A) global structure B) complex network C) B2B network structure D) communications network
C) B2B network structure
Which of the following is often known as an ad hoc committee? A) a functional team B) a cross-functional team C) a task force D) managers with integrating roles
C) a task force
The control system that managers use at the conversion stage of transforming raw materials into finished goods is ________ control. A) feedforward B) bureaucratic C) concurrent D) feedback
C) concurrent
When different managers from different functional areas are brought together to work on an organizational task, they are known as a(n) ________ team. A) functional B) co-dependent C) cross-functional D) independent
C) cross-functional
In the design of an organization, another name for "market structure" is "________ structure." A) product B) geographic C) customer D) functional
C) customer
When managers pursue a multidomestic strategy, they most likely use a ________ strategy. A) market B) customer C) global geographic D) global transitional
C) global geographic
At Able Electronics, the person in charge of advertising is a staff manager, who reports to A) the stockholders. B) a manager in the direct chain of command. C) the CEO. D) a co-manager in the division.
C) the CEO.
At the output stage, managers usually utilize ________ control. A) MBO B) bureaucratic C) feedforward D) feedback
D) feedback
The current assets of Kaiser Investments are valued at $25 million and its current liabilities are at $6 million. If its inventory is worth $1 million, what is its quick ratio? A) 4 B) 0.25 C) 0.14 D) 3.6
A) 4
Alkyl, Ltd., designs shoes using computer-aided design, and they electronically store all new product information, including manufacturing instructions. When the designers have finished their work, they electronically transmit all the blueprints for the new products to Southeast Asian suppliers and manufacturers with which Alkyl has formed strategic alliances. Instructions for the design of a new sole are sent to a supplier in India and instructions for the leather uppers are sent to a supplier in Bhutan. Also, Alkyl has formed a strategic alliance with distributor in Taiwan. By doing this, Alkyl is implementing a A) B2B network structure. B) decentralized. C) vertically integrated. D) diversified product.
A) B2B network structure.
Santiago has taken a new job as the general manager at Durwood Industries, which designs and manufactures custom cabinets. He is replacing Evan, who recently retired. Santiago has already set a company-wide goal of increasing efficiency and reducing waste. Unfortunately, Santiago has inherited a heavily bureaucratic work culture governed by byzantine rules. Evan mainly managed by actively overseeing his employees, but from the employee's lack of motivation, Santiago can tell that this approach is no longer working. Based on what you know about behavior control, what solution should Santiago implement to increase employee engagement and productivity? A) He should have floor managers and employees jointly set goals that describe what employees can personally do to reduce waste and then periodically check in with them to monitor their progress. B) He should require employees to turn in a report at the end of every week that details the number of cabinets they completed, the amount of materials they used, and how many pounds were thrown away. C) He should sits in on team meetings and encourage employees to vent their frustrations with Evan's way of doing things so that whatever Santiago implements looks good in contrast. D) Since team leaders and lower-level managers have so much responsibility, Santiago should resist asserting his authority and instead focus on keeping clients happy.
A) He should have floor managers and employees jointly set goals that describe what employees can personally do to reduce waste and then periodically check in with them to monitor their progress.
The sales of Audiophile, a manufacturer of home and professional audio systems, have been declining noticeably over the last several quarters. Muaad, the CEO, meets with several managers, including Bruno, the head of the customer service department, and Ilya, a customer response team leader. It is determined that, while the company's quality and innovation standards are being met and even exceeded, its customer service is not performing as well as it should be. Muaad decides to implement a goal of raising the quality of Audiophile's interactions with customers by their next quarterly meeting. Given what you know about the control process, what should the team at Audiophile do next? A) Muaad should meet with Bruno and Ilya to decide if a five-star rating scale is sufficient for measuring their progress and whether they need to reach a 4- or 4.5-star average. B) Bruno should evaluate the behaviors of customer service teams by having Ilya collect and report data measuring the specifics of customer interactions. C) After three months, Bruno should look at the results of the new actions undertaken by Ilya's team and decide whether they need further improvement. D) Over the next month, Ilya should track the number of customer interactions and record how quickly team members responded.
A) Muaad should meet with Bruno and Ilya to decide if a five-star rating scale is sufficient for measuring their progress and whether they need to reach a 4- or 4.5-star average.
Freya is dissatisfied with her work as an office supply clerk for a large telecommunications company. She explains her feelings about her work to the human resource manager, who gives her an aptitude test. Based on this test, the satisfaction Freya gets from her job and how she views her job depend largely on how what she does impacts other people. Considering this, what job should the human resource manager recommend Freya get training for and pursue? A) a job as a computer programmer who designs software for autistic children B) a position as a salesperson with the ability to plan her own schedule C) a job as a graphic designer who often works on a project from beginning to end D) a position as a marketing researcher, which requires a variety of skills
A) a job as a computer programmer who designs software for autistic children
Because he has high autonomy, Santiago coaxes his manager to A) allow him work at home, where he can work during any time of the day. B) give him a variety of jobs that require a wide skill set. C) let him focus on one assignment at a time. D) give him more input on how his work affects customers.
A) allow him work at home, where he can work during any time of the day.
The degree to which a job allows the worker to schedule the tasks of the job and to decide how to carry out these tasks is known as A) autonomy. B) task identity. C) task significance. D) skill variety.
A) autonomy.
At Cosmeto & Co., Ignas, a marketing specialist, usually works with other marketers. However, he has recently been assigned to a team to develop a new kind of shampoo. Cosmeto has a complex organizational structure, and the team developing the new shampoo has members who specialize in a variety of functions for the company, including research and design, production, and packaging. Ignas and these other members will rotate in and out of the shampoo team as their specific tasks are completed. Ignas has to report to A) both the marketing manager and the personal care product manager. B) Angelique, the CEO of Cosmeto, but only while the shampoo is being marketed. C) the geographic distribution manager, who will help Ignas determine a target market. D) to either the marketing manager or the chemical formula manager.
A) both the marketing manager and the personal care product manager.
Natasha sets up a publishing company, which uses freelance editors, writers, and marketers located in various areas of the United States. Even though these people never see each other face-to-face, the company runs efficiently. Natasha accomplished this by creating a A) boundaryless organization. B) strategic alliance. C) B2B network structure. D) tall organization.
A) boundaryless organization.
Jae-Kyu, a worker at Chelsea Motor Scooters, comes up with a new way to attach the fuel injection system to the motor, increasing the efficiency of the assembly process. The managers instruct all employees to attach fuel injection systems the same way so that every car comes off the assembly line with its fuel injection system attached in the new way. The managers are using ________ control. A) bureaucratic B) clan C) output D) input
A) bureaucratic
The startup where Ha-Jin works, Affiniti, was recently acquired by Futurica, a huge multinational conglomerate. Everyone at Affiniti was severely stressed by the many changes that accompanied the transition. Many of Affiniti's managers were let go and replaced by people from Futurica. For almost a week, Ha-Jin was not even sure who her direct supervisor was. On top of everything else, Affiniti people were given a huge manual of Futurica's company policies that they had to memorize in less than a week. It was chaos, and several of Ha-Jin's colleagues ending up handing in their notices. How could Futurica's management have handled the transition more effectively? A) by introducing new policies gradually and encouraging Ha-Jin and her co-workers to help take charge of implementing them B) by posting a chart in the conference room clearly comparing Futurica's performance with that of other high-performing organizations C) by moving quickly to implement all of the new policies as one and dealing with employee problems as they arise D) by making sure that all policy changes are treated like company secrets and discussed only by top Futurica managers
A) by introducing new policies gradually and encouraging Ha-Jin and her co-workers to help take charge of implementing them
An organization's hierarchy of authority is also known as its A) chain of command. B) span of control. C) task-flow command. D) matrix of control.
A) chain of command.
Companies with an inert culture A) closely supervise their employees within a hierarchical system. B) develop long-term career paths for their employees. C) invest heavily in training and development of employees. D) encourage the development of supportive work attitudes and behaviors.
A) closely supervise their employees within a hierarchical system.
According to ________ theory, managers should choose a structure that fits the circumstances affecting their organization the most. A) contingency B) design C) agency D) equity
A) contingency
Fern Motor Co. brings together senior managers from its marketing, R—D, manufacturing, accounting, and finance departments to work together as a team to design a new type of sport utility vehicle. In this scenario, Fern Motor Co. creates a A) cross-functional team. B) vertically integrated team. C) mass-production team. D) standing committee.
A) cross-functional team.
Allocating authority in an organization, which gives lower-level managers and nonmanagerial employees the right to make important decisions about how to use organizational resources, is an example of A) decentralization of authority. B) a high span of control. C) centralization of authority. D) maximum chain of command.
A) decentralization of authority.
Which of the following activities might a manager perform if he or she is at the final stage of the control process? A) deciding whether to take corrective action to meet the standard B) restructuring the work process to increase efficiency C) developing a performance standard to measure behavior D) determining the factors that are affecting employee output
A) deciding whether to take corrective action to meet the standard
The process by which managers decide how to divide into specific jobs the tasks that have to be performed to provide customers with goods and services is known as job A) design. B) delegation. C) organization. D) policy.
A) design.
The most immediate and potent form of behavior control is A) direct supervision. B) clan control. C) bureaucratic control. D) socialization.
A) direct supervision.
The units of Effron, Ltd., are grouped such that the functions that work together to produce a product are grouped together. This is an example of a(n) ________ structure. A) divisional B) transitional C) organic D) functional
A) divisional
Which of the following structures is an organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer? A) divisional B) transitional C) organic D) functional
A) divisional
Members of which of the following groups may be considered intrapreneurs? A) employees of an organization who notice opportunities to develop new products B) employees of an organization who have worked across various industries C) managers who are responsible for two or more departments within a company D) managers who ensure interdepartmental transfer of skills
A) employees of an organization who notice opportunities to develop new products
Martel, the production manager of Firefly Shoes, sets a production target of 220 shoes to be distributed among 20 employees in a week. In the context of the control process, Martel A) establishes the standards of performance. B) measures the actual level of performance of employees. C) compares the actual performance against chosen standards of performance. D) evaluates the result of the set standards.
A) establishes the standards of performance.
The final step in the control process is A) evaluating results and initiating corrective action. B) measuring actual performance. C) comparing actual performance to the set standards. D) measuring the standards of performance.
A) evaluating results and initiating corrective action.
The managers of a division are given a fixed budget and are then evaluated on the basis of their ability to produce goods or services. This is an example of a(n) ________ budget approach. A) expense B) profit C) cash flow D) revenue
A) expense
The type of control that managers typically use in the input stage of the process of transforming raw materials into finished goods is ________ control. A) feedforward B) concurrent C) feedback D) bureaucratic
A) feedforward
Windward Bank set up a management information system that gives its regional managers information about changes in the task environment that may affect the organization at some future time. By using this system, Windward is utilizing ________ control. A) feedforward B) feedback C) bureaucratic D) MBO
A) feedforward
An organizational structure consisting of all the departments within the company that are needed to produce its goods or services is a ________ structure. A) functional B) geographic C) divisional D) product
A) functional
CrossBorders Delivery Corporation organizes its managers according to the different regions of the world in which the managers work. This is an example of a ________ structure. A) geographic B) customer C) product D) matrix
A) geographic
PlayBall Enterprises produces baseball mitts in the United States, including the ones used in the major leagues. Baseball teams around the world usually want to use the same mitts as the major league teams in America. As a result, the managers of PlayBall have decided to use a ________ structure. A) global product B) customer C) global geographic D) global transitional
A) global product
An organizational structure becomes taller when it A) grows in size and the hierarchy of authority lengthens. B) maintains its original size and the hierarchy remains constant. C) hires more employees while keeping the same number of managers. D) expands its product base but maintains its staff size.
A) grows in size and the hierarchy of authority lengthens.
The aspects of organizational functioning that are affected by organizational change A) include organizational culture and strategies. B) include response to opportunities but not threats. C) exclude the human resource management system. D) exclude communication, motivation, and leadership.
A) include organizational culture and strategies.
The financial ratio that indicates the degree to which the organization uses debt or equity to finance its ongoing operations is the ________ ratio. A) leverage B) liquidity C) activity D) profit
A) leverage
The kitchen workers at Joe's Coffee Shop and Bakery report directly to Zara, the kitchen manager. Zara is a ________ manager. A) line B) product C) staff D) task force
A) line
Managers are able to be responsive to the needs of their customers and maintain flexibility in making decisions regarding customers' changing needs with a ________ structure. A) market B) geographic C) functional D) matrix
A) market
What structure do organizations adopt when they organize divisions according to the type of customers they focus on? A) market B) geographic C) product D) functional
A) market
The manager of East India Ice Cream Shop keeps track of the number of customers served at different periods of the day in an attempt to plan a schedule for workers that matches the demand for the restaurant's products. By using this tracking system, the manager of East India is utilizing ________ control. A) output B) bureaucratic C) input D) MBO
A) output
In an adaptive culture, employees often receive rewards based on their A) performance. B) commitment. C) seniority. D) popularity.
A) performance.
The major goals of the manufacturing function are to keep costs under control and A) prepare products on schedule. B) keep employees happy. C) develop new products. D) use the latest production methods.
A) prepare products on schedule.
A divisional manager's performance is evaluated on the basis of the difference between the sales revenues generated by that division and the cost of making those goods and services. The divisional manager is being evaluated using the ________ budget approach. A) profit B) revenue C) cost D) expense
A) profit
Top managers in a company decide between themselves to implement an employee stock ownership plan for all their employees. This is an example of a company taking a A) top-down approach to promote adaptive culture. B) bottom-up approach to promote adaptive culture. C) top-down approach to promote inert culture. D) bottom-up approach to promote inert culture.
A) top-down approach to promote adaptive culture.
From the information given below, calculate the organization's return on investment. Total Liabilities = $300,000; Total Assets = $600,000; Gross Margin = $200,000; Net Income before Taxes = $30,000; Total Expenses = $240,000 A) 50 percent B) 5 percent C) 10 percent D) 12.5 percent
B) 5 percent
In which of the following situations do you think it would be most challenging for a manager to measure employee outputs or behavior? A) Workers in a clothing factory are doing hand-stitching on dresses. B) Graphic designers at a media company are designing logo prototypes. C) A clerk at a convenience store is recording inventory for the past month. D) The sales team at a real estate company is cold-calling prospective clients.
B) Graphic designers at a media company are designing logo prototypes.
How does the product team structure differ from the matrix structure? A) It allows dual reporting relationships. B) It permanently assigns employees to cross-functional teams. C) It focuses on designing and marketing quality products. D) It allows team members to work with other teams.
B) It permanently assigns employees to cross-functional teams.
Ysabel has just been hired in the advertising department at Ingenue, a cosmetics and skincare company. The environment at her new job could not be more different from her old one. At her old company, workers sat in closed-off cubicles or glassed-in offices, whereas Ingenue has fun decor and an open office plan. Managers have regular one-on-one meetings with employees to discuss career development and offer mentoring, and the company offers regular classes and workshops. The emphasis is on creativity and collaboration, and teams celebrate each other's accomplishments with spontaneous parties and excursions. What else is likely true about Ysabel's new job? A) Ysabel does not know much about company values because it is taken for granted that everyone knows what they are. B) The managers in the advertising department allow Ysabel and her co-workers to make certain decisions, such as angles for ad campaigns. C) The managers constantly talk about excellence, and Ysabel's team is expected to submit ad proposals that are more like finished products than rough drafts. D) It is expected that Ysabel's team will stay late and even come in on the weekends whenever the company releases a new lotion or other product.
B) The managers in the advertising department allow Ysabel and her co-workers to make certain decisions, such as angles for ad campaigns.
Top managers at Swirly Sweets, a candy manufacturer, consult with middle and first-line managers to revise their marketing strategy. This approach will lead to A) top-down changes that can be implemented quickly throughout the organization. B) bottom-up changes to minimize resistance from employees and uncertainty. C) bottom-up changes that can be implemented quickly throughout the organization. D) top-down changes to minimize resistance from employees and uncertainty.
B) bottom-up changes to minimize resistance from employees and uncertainty.
The step of the control process utilized by managers to evaluate whether the actual performance of the organization differs significantly from the standards of performance that assess the organization is A) measuring actual performance. B) comparing actual performance to the standards. C) initiating corrective action. D) measuring standards of performance.
B) comparing actual performance to the standards.
An organization that allows its employees to behave in a flexible way, even as the organization grows and becomes taller, is utilizing A) managing as a rule. B) decentralizing authority. C) decreasing the span of control. D) decreasing autonomy.
B) decentralizing authority.
Constantinople Trading Co., a manufacturer of home decor goods, sets up a system to monitor unit sales of its products to measure changes taking place in customer tastes and the possible resulting impact on future sales. With this system, Constantinople is using ________ control. A) feedforward B) feedback C) MBO D) bureaucratic
B) feedback
The extent to which a job gives the worker direct and clear information about how well the worker is performing the job is known as A) task identity. B) feedback. C) autonomy. D) task significance.
B) feedback.
Futura Fabricators gives specifications to its suppliers of raw materials in an attempt to improve the quality of those raw materials and to minimize and anticipate the problems they are likely to face in the conversion process. This is an example of ________ control. A) concurrent B) feedforward C) feedback D) bureaucratic
B) feedforward
Managers at Foster and Zapp Construction set up a stringent job interview process by which management applicants are carefully screened at different levels of the organization before they are hired, attempting to increase the chance that newly hired managers will have the knowledge and skills they need to be successful within the organization. By using this process, Foster and Zapp is using ________ control. A) concurrent B) feedforward C) feedback D) MBO
B) feedforward
RideOn, Inc., is an automobile company that has strategic alliances with two entities: a supplier in India and a manufacturer in South Africa. RideOn's vehicles are known for being of good quality, but they are more expensive than the average person can afford. The company would like to further reduce its costs so that it can pass those savings on to the end consumer. To do this RideOn would most likely A) set up a liaison relationship between the South African manufacturer and a distributor in China. B) form a strategic alliance with a distributor in China. C) form a joint venture with the supplier in India. D) create a boundaryless structure with the manufacturer in South Africa.
B) form a strategic alliance with a distributor in China.
When an organization has a culture that leads to values and norms that fail to motivate or inspire employees, eventually leading to stagnation and often failure over time, that company has a(n) ________ culture. A) adaptive B) inert C) communal D) bureaucratic
B) inert
Chiara's Pizza established a basic division of labor among "chefs" and "food servers" in which chefs perform all tasks involved in actual cooking, and food servers carry out all tasks involved in giving food to the customers. Chiara's Pizza implemented A) a matrix structure. B) job design. C) a divisional structure. D) a product structure.
B) job design.
A manager increases the number of tasks that a subordinate has to do in order to make the job more interesting for the subordinate. This is known as A) job simplification. B) job enlargement. C) job enrichment. D) task identity.
B) job enlargement.
Which of the following happens in the conversion stage? A) anticipating possible problems B) managing problems as they occur C) dealing with problems that have arisen D) managing without correction of problems
B) managing problems as they occur
The organizational design in which employees are correctly referred to as two-boss employees is a ________ structure. A) product B) matrix C) geographic D) functional
B) matrix
The managers of Sputnik Diner, a fast food restaurant, record outputs on a daily basis by counting how many customers their employees serve, the time each transaction takes, and how much money each customer spends every day. With reference to the control process, the managers of Sputnik are A) establishing the standards of performance. B) measuring the actual level of performance of employees. C) comparing the actual performance against chosen standards. D) evaluating the result of the set standards.
B) measuring the actual level of performance of employees.
Which of the following allows an organization to manage its global value chain and to find new ways to reduce costs while increasing the quality of products? A) coordinating mechanisms B) network structures C) integration devices D) functional alliances
B) network structures
The set of values, norms, and expectations of behavior that control the ways in which workers interact with one another within the organization is known as A) managerial objectives. B) organizational culture. C) clan control. D) adaptive culture.
B) organizational culture.
With management by objectives, the first things established are A) evaluations. B) organizational objectives. C) management goals. D) subordinate goals.
B) organizational objectives.
The manager of 24-7, a convenience store, keeps track of the average sale amount for each customer as a way of deciding on the product mix to be carried in the store. This is an example of ________ control. A) feedforward B) output C) input D) MBO
B) output
VRT, Inc., started out just making hair dryers. However, as the company expanded, it produced automobiles, life insurance, and furniture. Considering this, the CEO has decided to change from a functional structure to a ________ structure. A) geographic B) product C) market D) hierarchical
B) product
The ratio that is computed by dividing the difference between current assets and inventory by current liabilities is the ________ ratio. A) inventory turnover B) quick C) current D) debt-to-assets
B) quick
The CEO of a company would like to know whether his managers can pay off claims of short-term creditors without selling inventory. What ratio will help him understand the company's liquidity? A) inventory turnover ratio B) quick ratio C) current ratio D) debt-to-assets ratio
B) quick ratio
An organization's net income before taxes divided by the total assets of the organization is known as A) gross profit margin. B) return on investment. C) the debt-to-assets ratio. D) days sales outstanding.
B) return on investment.
When a manager is told to maximize the revenues from the sales of goods and services produced, this is an example of a(n) ________ budget approach. A) quality B) revenue C) operational D) fixed
B) revenue
Riku is a project manager who has 15 employees reporting directly to him. Those 15 employees represent Riku's A) unity of command. B) span of control. C) chain of command. D) unity of direction.
B) span of control.
When actions are performed by employees the same way time and time again and the outcomes of their work are predictable, employee behavior is A) generalized. B) standardized. C) maximized. D) minimized.
B) standardized.
Which of the following is true of an adaptive work culture? A) There is a strong emphasis on close supervision of workers. B) Employees are not rewarded on their performance. C) Cross-functional team structures are often used. D) The company sticks to tried and true methods of doing things.
C) Cross-functional team structures are often used.
________ tends to be the first type of control that all managers use to evaluate performance. A) Direct supervision B) Management by objectives C) Output control D) Bureaucratic control
C) Output control
What is a common reason that entrepreneurs often find managing difficult? A) They are too far from their companies to see the need for change. B) They are unwilling to share their vision with others. C) They have trouble delegating authority because of the risk involved. D) They are not good at communicating their ideas with others.
C) They have trouble delegating authority because of the risk involved.
TruLife Health Systems has opted for a top-down approach to changing how the company functions so that efficiency is increased. What is the change likely to entail? A) a fast or revolutionary approach involving managers at all levels B) a gradual or evolutionary approach involving only the top managers C) a fast or revolutionary approach involving only the top managers D) a gradual or evolutionary approach involving managers at all levels
C) a fast or revolutionary approach involving only the top managers
When an organization has a strong and cohesive organizational culture that controls employee attitudes and behaviors, that company has a(n) ________ culture. A) dynamic B) bureaucratic C) adaptive D) normative
C) adaptive
The degree to which programmed solutions are available to people or functions to solve the problems they encounter is task A) uncertainty. B) stability. C) analyzability. D) creativity.
C) analyzability.
Rules and SOPs are of little use in telling a scientist how to discover something new. Thus, which of the following forms of control should not be applied to scientists? A) feedforward B) feedback C) bureaucratic D) concurrent
C) bureaucratic
The control that is imposed on workers within the organization by the shared values, norms, standards of behavior, and expectations is ________ control. A) bureaucratic B) operating C) clan D) leverage
C) clan
Charlene, the manager of CraftRite Leather Goods, checked the weekly records and discovered that the number of handbags produced in one week by 45 employees was 375 against the set target of 450 handbags. With reference to the control process, Charlene is A) establishing the standards of performance. B) measuring the actual level of performance of employees. C) comparing the actual performance against chosen standards of performance. D) evaluating the result of the set standards.
C) comparing the actual performance against chosen standards of performance.
What is the main problem with the matrix structure's dual reporting relationship? A) tracking responsibilities B) tasks are more complex C) conflicting demands can arise D) deciding which job will finish faster
C) conflicting demands can arise
The formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about whether the organization's strategy and structure are working efficiently and effectively are known as ________ systems. A) operating B) organizational C) control D) recurrent
C) control
The process by which managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals is known as A) organizing. B) leading. C) controlling. D) coordinating.
C) controlling.
At Xen, Ltd., each product line is managed within a division. In each of these divisions, the division manager is responsible for A) giving each employee in the division a large amount of autonomy. B) devising a corporate-level plan with the managers of other divisions. C) creating a separate business-level strategy for its division. D) making sure each job in the division has high skill variety.
C) creating a separate business-level strategy for its division.
Tot Beverages forms a B2B network structure by A) entering into an agreement with a company in Brazil that allows the Brazilian company to manufacture and market Tot Beverages to the Brazilian market. B) purchasing its domestic bottle supplier, foreign syrup producer, and domestic distributor in order to gain more control over every stage of the value chain. C) creating a series of agreements with its supplier in Brazil, manufacturer in Mexico, and distributor in the United States to produce and market Zing Col. D) purchasing a domestic clothing store, a Swiss pharmaceutical company, and an English movie production company.
C) creating a series of agreements with its supplier in Brazil, manufacturer in Mexico, and distributor in the United States to produce and market Zing Col.
Organizations can keep their hierarchy flat by A) decreasing the span of control. B) increasing the number of levels of management. C) decentralizing authority. D) centralizing authority.
C) decentralizing authority.
Organizational ________ is the process by which managers create an organizational structure and culture that helps a company operate in the most efficient and effective way. A) strategy B) policy C) design D) tactics
C) design
Carlos, a manager, redesigns the job of Dani, a subordinate, so that she has more responsibility over her job. This is the process of job A) enlargement. B) simplification. C) enrichment. D) reduction.
C) enrichment.
Employees organized according to a matrix structure are grouped by A) functions and by experience. B) product and by geographic location. C) functions and by product. D) geographic location.
C) functions and by product.
Karabo wants to start a graphic design company that will have employees who are highly skilled at using complex computer programs. For this type of company, Karabo would most likely want to A) give upper-level managers the responsibility for most client-related decisions but handle corporate decisions himself. B) make sure that all design decisions are run by him before they are implemented by employees. C) give lower-level managers and the graphic designers the authority to make important decisions. D) give graphic designers the ability to make decisions, but insist that they get approval from upper management.
C) give lower-level managers and the graphic designers the authority to make important decisions.
CoreSol Ltd. implements a liaison role by A) creating a team that includes employees from three departments (marketing, engineering, and production) to manage a product to the launch stage. B) having a representative in each of three departments (marketing, engineering, and production) meet to discuss the launching of a new product. C) giving one manager in each of three departments (marketing, engineering, and production) the responsibility of coordinating with each other to brainstorm new product ideas. D) providing a team consisting of members of three departments (marketing, engineering, and production) with status reports from senior managers of other departments.
C) giving one manager in each of three departments (marketing, engineering, and production) the responsibility of coordinating with each other to brainstorm new product ideas.
Juliette has been hired as a business consultant for ChocoChip, Inc., a company that specializes in making chocolate chip cookies. The success of ChocoChip has created a problem for the company's CEO, Andrew. The demand for ChocoChip's cookies has increased significantly worldwide. As a result, the company has established cookie factories in various countries, which are doing fairly well but need customized attention for each country. Also, because of this expansion, the functional structure of the company has developed problems with communication between divisions. Andrew wants Juliette's advice on how the company should accommodate its expansion. Juliette most likely suggests that ChocoChip set up a A) matrix structure and form temporary cross-functional teams. B) global market structure and form a centralized and bureaucratic hierarchy. C) global geographic structure and form strategic alliances with suppliers in various nations. D) product structure and form special, temporary tasks forces to deal with various challenges.
C) global geographic structure and form strategic alliances with suppliers in various nations.
Which of the following stages in making organizational change includes deciding whether change will occur from the top down or from the bottom up? A) assess the need for change B) decide on the change to make C) implement the change D) evaluate the change
C) implement the change
Organizing tools that managers use to increase communication among functions and divisions are known as ________ mechanisms. A) expansion B) interaction C) integrating D) synchronizing
C) integrating
The idea that an organization's hierarchy should be designed with as few levels of authority as are necessary to use the organization's resources in an efficient and effective manner falls under which of the following principles? A) integration B) allocation C) minimum chain of command D) consolidation of command
C) minimum chain of command
The process through which managers try to increase members' abilities to understand and appropriately respond to changing conditions is known as A) norm enforcement. B) adaptive learning. C) organizational learning. D) clan control.
C) organizational learning.
The process by which managers establish the structure of working relationships among the workers of the organization is known as A) planning. B) leading. C) organizing. D) controlling.
C) organizing.
The performance ratio that measures the efficiency of the organization in terms of how well the resources of the organization have been used to generate profit is a(n) ________ ratio. A) activity B) leverage C) profit D) liquidity
C) profit
In assessing the need for organizational change, managers must A) identify the obstacles to change at the corporate and individual levels. B) plan how they are going to attain the organization's ideal future state. C) recognize that there is a problem and identify its source. D) implement change from the top down or from the bottom up.
C) recognize that there is a problem and identify its source.
The manager of a profit center is evaluated on the basis of the amount of sales that have been generated from the goods or services produced in his/her division. The divisional manager is being evaluated using the ________ budget approach. A) expense B) cash flow C) revenue D) profit
C) revenue
A mechanism of control utilized in organizational culture is A) direct supervision. B) management by objectives. C) socialization. D) organizational goals.
C) socialization.
A formal agreement that commits two or more companies to exchange or share their resources in order to produce and market a product is known as a(n) ________ alliance. A) outsourcing B) task force C) strategic D) market structure
C) strategic
Jonah and Aubrey are the founders of Old Sarsaparilla, a manufacturer of novelty bottled sodas that use organic ingredients. After a couple of years of successfully marketing their products to local businesses, the company has attracted a slew of new investors and clients and has expanded into several of the surrounding states. As part of this expansion, they have hired a manager, Yusuf, to be responsible for the day-to-day business of the company. However, Aubrey questions all of Yusuf's decisions, wanting to remain involved in every aspect of the business. This has resulted in her being overextended and stressed most of the time. Caryl, Old Sarsaparilla's biggest investor and one of Aubrey's mentors, knows that Aubrey's creative, big-picture thinking is one of her most valuable traits. What should he suggest she do? A) become a co-manager with Yusuf, so that she feels her authority is still respected B) focus on building the kind of friendly organizational culture she envisions for the company C) take on an advisory role and focus on pursing new opportunities for Old Sarsaparilla D) take management classes at the local university to develop her communication skills
C) take on an advisory role and focus on pursing new opportunities for Old Sarsaparilla
Mr. Pierson reads an article in the newspaper about one of his students who has been appointed CEO of a multinational corporation. At this moment, Mr. Pierson is experiencing A) autonomy. B) task identity. C) task significance. D) skill variety.
C) task significance.
Digistar, Inc., is a large corporation that produces a wide variety of products and services. As a result, it is a tall organization with a product structure. Employees are only expected to report to a single boss. Even so, communications between various functions in a division has become a problem. Because of this, it often takes a long time to bring new products to market, which is a severe handicap in highly competitive areas, such as printers. To expedite the process of bringing new printers into the market, Digistar should form a A) boundaryless structure between the design division and marketing division of the company. B) liaison relationship between the design and marketing section of the printer division. C) team consisting of managers from the design, manufacturing, and marketing sections of the printer division. D) task force consisting of managers from the design, manufacturing, and marketing divisions of the company.
C) team consisting of managers from the design, manufacturing, and marketing sections of the printer division.
Managers should design flexible structures, characterized by decentralized authority and empowered employees, for their organization when its A) environment is stable. B) technology is simple. C) workforce is highly skilled. D) strategy is well understood.
C) workforce is highly skilled.
From the information given below, calculate the organization's current ratio. Total Liabilities = $750,000; Current Liabilities = $220,000; Total Assets = $700,000; Current Assets = $176,000 A) 0.65 B) 0.25 C) 0.70 D) 0.80
D) 0.80
Calculate the current ratio of the organization from the information given below. Sales = $200,000; Gross Profit = $40,000; Total Assets = $450,000; Current Assets = $250,000; Current Liabilities = $300,000 A) 0.44 B) 0.56 C) 0.67 D) 0.83
D) 0.83
Calculate the return on investment from the information given below. Net Income = $18,000; Advertising Expenses = $220,000; Total Liabilities = $120,000; Total Assets = $160,000; Gross Margin = $80,000; Taxes Paid = $2,000 A) 16.67 percent B) 15 percent C) 11.25 percent D) 12.5 percent
D) 12.5 percent
Which of the following problem is most likely to occur when a company becomes overly bureaucratic? A) Employees eventually rebel against the rules. B) The company becomes less efficient over time. C) It leads to a toxic work culture and more turnover. D) Employees stop thinking for themselves.
D) Employees stop thinking for themselves.
Which of the following explains Hackman and Oldham's theory of how the job characteristics model affects three critical psychological states? A) The more employees are given work responsibility, the more frustrated they become because they know that they will never get additional remuneration for it. B) The more employees feel that they are responsible for work outcomes and how it affects their positions in the company, the less motivating their work becomes. C) The more employees feel that they are being used efficiently by the company, the more their expectation of better compensation and higher position increases. D) The more employees feel that they are responsible for work outcomes and for knowing how those outcomes affect others, the more motivating their work becomes.
D) The more employees feel that they are responsible for work outcomes and for knowing how those outcomes affect others, the more motivating their work becomes.
Optique Cameras opts to take a bottom-up approach in order to draft a new attendance policy. What will the approach entail? A) a fast or revolutionary approach involving managers at all levels B) a gradual or evolutionary approach involving only the top managers C) a fast or revolutionary approach involving only the top managers D) a gradual or evolutionary approach involving managers at all levels
D) a gradual or evolutionary approach involving managers at all levels
The financial ratio that measures how well the managers of the organization are creating value from the organization's assets is the ________ ratio. A) leverage B) liquidity C) current D) activity
D) activity
Management by objectives is a mechanism of control with ________ organizational control systems. A) input B) clan C) output D) behavior
D) behavior
The process of comparing one company's performance on specific dimensions with the performance of high-performing organizations to decide how successful a change effort has been is known as A) socialization. B) diversification. C) social facilitation. D) benchmarking.
D) benchmarking.
An organization whose members are linked by computers, email, computer-aided design systems, videoconferencing, and cloud-based software is a ________ organization. A) tall B) complex C) flat D) boundaryless
D) boundaryless
The Pizza Man implemented job design by A) having the food servers wear uniforms. B) buying a new vehicle for the food delivery people. C) increasing the chef's annual salary to reflect the skills required by the job. D) combining the jobs of chef and food server into a single job description
D) combining the jobs of chef and food server into a single job description
The control system that is typically used in a garment plant to solve problems like substandard inputs, broken machine parts, or a worker's skill deficiency to produce a particular type of garment is ________ control. A) feedforward B) MBO C) feedback D) concurrent
D) concurrent
The financial ratio that indicates how efficiently the managers of the organization are collecting the revenue due to the organization from the sale of its products or services is the ________ ratio. A) debt-to-assets B) quick C) current D) days sales outstanding
D) days sales outstanding
To speed up the communication from the top managers down to the lower-level employees and vice versa, a CEO would most likely A) reorganize the chain of command, thereby decreasing the flatness of the company. B) expand the chain of command, thereby increasing the tallness of the company. C) centralize the company, thereby changing it from a flat organization to a tall organization. D) decentralize the company, thereby changing it from a tall organization to a flat organization.
D) decentralize the company, thereby changing it from a tall organization to a flat organization.
Increasing workers' responsibility and involvement in their jobs in order to increase their interest in the quality of their output is a strategy known as job A) expansion. B) enlargement. C) development. D) enrichment.
D) enrichment.
Which of the following stages in making organizational change includes benchmarking? A) assess the need for change B) decide on the change to make C) implement the change D) evaluate the change
D) evaluate the change
Gazelle Computers monitors the number of customer returns for each product model to track when the organization is producing a large number of defective products. In this case, Gazelle is using ________ control. A) feedforward B) concurrent C) MBO D) feedback
D) feedback
Which of the following structures groups together people who perform similar jobs? A) divisional B) transitional C) organic D) functional
D) functional
Eduardo works a salesperson at a prescription drug store; Marietta works as a doctor, helping people who suffer from malignant diseases. Marietta most likely has A) a low degree of feedback. B) less autonomy. C) less skill variety. D) higher task significance.
D) higher task significance.
Jason has been hired by Praltiz Inc., an IT firm, to perform an integrating role by A) determining which threats in the external environment should be taken most seriously. B) conducting an in-house study to determine which departments can be trimmed. C) advising the manager of the marketing department on how to appeal to teenage consumers. D) increasing coordination between the marketing and research departments to achieve performance gains.
D) increasing coordination between the marketing and research departments to achieve performance gains.
Amir, the manager of Kaleidoscope Toys, installed new machinery to speed up the production process after the assigned targets were not achieved for the third week of the month. With regard to the control process, Amir is A) establishing the standards of performance. B) measuring the actual level of performance of employees. C) evaluating the result of the set standards. D) initiating corrective actions.
D) initiating corrective actions.
In which mechanism do senior managers provide members of a cross-functional team with relevant information from other teams and divisions? A) liaison roles and departments B) task forces C) functional forces D) integrating roles and departments
D) integrating roles and departments
In companies that have an adaptive culture, employees are A) content to be told what to do during work hours. B) not motivated to perform beyond minimum requirements. C) closely supervised within a hierarchical authority. D) likely to have long-term career paths to follow.
D) likely to have long-term career paths to follow.
Which of the following is a characteristic of a stable external environment? A) an inflexible structure B) constant change C) decentralized authority D) low uncertainty
D) low uncertainty
When designing an organization, if managers are grouped both by function and by product at the same time, the organizational structure being used is the ________ structure. A) market B) geographic C) functional D) matrix
D) matrix
George is an order taker at a restaurant; Audrey is a sales executive who is given the authority to choose the prospective customers she will visit on personal sales calls. Audrey has A) less autonomy. B) less task significance. C) less task identity. D) more autonomy.
D) more autonomy.
The greater the level of uncertainty in the organization's environment, the A) less likely managers are to design a structure and a culture that are innovative. B) less likely managers are to design a structure and a culture that change quickly. C) more likely managers are to design an organizational structure that is formal and controlling. D) more likely managers are to design a structure and a culture that are flexible.
D) more likely managers are to design a structure and a culture that are flexible.
The standard of performance that measures efficiency at the corporate level of the organization is known as A) cost of goods sold. B) capital costs. C) net sales. D) operating costs.
D) operating costs.
Alkyl, Ltd., one of the leading shoe manufacturers, enters into a contract with Blinx—a foreign manufacturer—to only manufacture its shoes. In this scenario, Alkyl is following a(n) ________ strategy. A) franchising B) licensing C) green field venturing D) outsourcing
D) outsourcing
When a divisional manager is evaluated based on the operating income of his division, this is an example of a(n) ________ budget approach. A) capital B) revenue C) expense D) profit
D) profit
When a manager is evaluated on the difference between sales revenue and the budgeted cost of making those goods and services, this is an example of a(n) ________ budget approach. A) revenue B) cash flow C) expense D) profit
D) profit
Entrepreneurship is the mobilization of resources to A) start a process that ends with the founding of a new business. B) compare two companies on specific dimensions. C) market an old product with a new twist. D) provide customers with new or improved goods and services.
D) provide customers with new or improved goods and services.
The most commonly used financial performance measure that allows managers of one organization to compare performance with that of other organizations is A) gross profit margin. B) the debt-to-assets ratio. C) the inventory turnover ratio. D) return on investment.
D) return on investment.
If a company has a stable external environment and resources are easily available, then the human resource manager for this company would most likely want to A) encourage managers to empower lower-level employees. B) allow managers to make their own guidelines. C) set up flexible norm guides. D) set up detailed standard operating procedures (SOPs).
D) set up detailed standard operating procedures (SOPs).
The extent to which a job requires a worker to use a wide range of knowledge and abilities is known as A) task identity. B) task significance. C) autonomy. D) skill variety.
D) skill variety.
The number of subordinates who report directly to a manager is known as the manager's A) unity of command. B) hierarchy of authority. C) chain of command. D) span of control.
D) span of control.
A team of managers from different functions or divisions is temporarily formed to solve a specific, mutual problem. This is known as a A) standing committee. B) confederate committee. C) functional force. D) task force.
D) task force.
The degree to which a manager feels that his or her job is "meaningful" because of the way in which the job affects other people is known as A) skill variety. B) feedback. C) autonomy. D) task significance.
D) task significance.
The goal of job enlargement is to increase A) the quantity of work assigned and thus reduce manpower. B) both the scope of a job and salaries. C) quality assurance measures, thereby reducing mistakes. D) the range of tasks and thus reduce boredom.
D) the range of tasks and thus reduce boredom.
The number of new or unexpected problems or situations that a person or function encounters in performing tasks or jobs is task A) volatility. B) predictability. C) analyzability. D) variety.
D) variety.
