Principles of Management - Chapter 7 & 11
Which of the following statements are true about an organization chart? (Choose every correct answer.)
An organization chart depicts the level of authority and responsibility assigned to the positions in a company. An organization chart depicts the arrangement of positions in a company. An organization chart provides a picture of the reporting structure of a company.
______ is having the power and right to make decisions and to do whatever is necessary to fulfill the responsibility.
Authority
W. Edwards Deming was a founder of the management movement.
Blank 1: quality
The ______ is personally accountable to the owners and the board of directors for the performance of the organization.
CEO
The role of top management teams is to meet regularly with the ______ and to assist in making decisions.
CEO
Which of the following are types of products that are produced through mass customization? (Choose every correct answer.)
Computers Clothes Automobiles
Place the following steps of effective delegation in order, with the first step at the top.
Define goal select person solicit views give authority discuss progress
Which of the following are steps in the effective delegation of a task in an organization? (Choose every correct answer.)
Defining the goal succinctly Discussing progress at appropriate intervals Soliciting the subordinate's views about suggested approaches Scheduling the checkpoints for reviewing progress
______ refers to assigning job responsibilities to a subordinate.
Delegation
What is a company's board of directors responsible for? (Choose every correct answer.)
Determining the firm's strategic direction Reviewing financial performance
______ refers to the way different jobs and tasks are structured on an organization chart.
Differentiation
Which of the following is NOT a potential disadvantage of the matrix form?
Dual career ladders
What should managers focus on in order to strengthen their firm's core capabilities? (Choose every correct answer.)
Extend capabilities for future applications Acquire or build competencies for the future Invest in core capabilities to remain better than competitors
True or false: In a high-involvement organization, top management makes all company decisions.
False
Which are ways that flexible factories differ from traditional factories? (Choose every correct answer.)
Flexible factories are organized around products in work cells or teams. Flexible factories use local or decentralized scheduling.
What is the term for the existence of rules and regulations to govern how people interact in an organization?
Formalization
Which type of organization is structured around districts, territories, regions, or countries?
Geographic division
Which of the following are advantages of matrix organizations?
Informed and creative decision making Decentralized decision making Efficient use of resources
`Which of the following are true of authority? (Choose every correct answer.)
It includes the right to tell people what to do. It includes the right to make decisions.
In JIT operations, what happens when a customer places an order?
It triggers a factory order and the production process.
Which type of organization seeks to maximize internal efficiency?
Mechanistic organization
Effective delegation provides subordinates opportunities for which of the following? (Choose every correct answer.)
On-the-job-training Increased innovation Potential promotion
In an organization, delegation refers to ______ authority and responsibility to ______.
assigning; a subordinate at a lower level
Organizing around core competencies, learning organizations, and strategic alliances is a strategy that enables an organization to be more ______.
agile
The CEO's power is derived from the ______.
board of directors
When an organization relies on division of labor and job specialization, it has a high degree of ______.
differentiation
Learning organizations are good at ______.
gaining insight from prior experiences
Olivia, the CEO of an international Internet security company, seeks input from her top management team and from lower levels of the company about the direction the company should take. By doing this, Olivia is building a ______.
high-involvement organization
Deming's 14 points of quality emphasized a ______ approach to management.
holistic
The degree to which different organizational units work together and coordinate their efforts is called ______.
integration
When an employee is assigned a task to complete, that person is given ______.
responsibility
The process of regulating routines and procedures throughout a department or organization is called ______.
standardization
Sookie has worked diligently to re-orient the managers of her company toward involving employees in improving all aspects of the business. Sookie's company is practicing ______.
total quality management
Clearly written rules and policies help eliminate ______ in the workplace.
uncertainty
With six sigma, the product or process is defect-free ______ of the time.
99.99966%
In organizations that use lean manufacturing, the emphasis on quality, speed, and flexibility is greater than the emphasis on which of the following? (Choose every correct answer.)
Efficiency Cost Hierarchy
Delegating work effectively offers which of the following advantages? (Choose every correct answer.)
It leverages a manager's talent. It allows a manager to focus on higher-level tasks.
Which of the following are some types of business functions that a functional organization might require? (Choose every correct answer.)
Production Research and development Human resources
The benefits of CIM include which of the following? (Choose every correct answer.)
Production of high-variety products in high volume. Reduced waste. Greater control and predictability of production processes.
Which of the following are strategies managers use to cope with high uncertainty and information demands? (Choose every correct answer.)
Reducing the need for information Increasing information-processing capability
A firm wishing to be a true learning organization should do which of the following? (Choose every correct answer.)
Review successes and failures for deeper understanding. Search constantly for new knowledge and ways to apply it. Encourage employees to engage in disciplined thinking.
Which of the following is NOT a way that managers should manage core capabilities to maintain a competitive advantage?
Set goals for profit maximization
______ engineering is used to accelerate the pace of research and product development within the organization.
Simultaneous
______ is a team-based approach that incorporates perspectives of all functions, resulting in a higher-quality product.
Simultaneous engineering
The basic technologies for processing include which of the following? (Choose every correct answer.)
Small batch Large batch Continuous process
_____ refers to the process of establishing common routines and procedures that apply uniformly to everyone.
Standardization or Standardizing
Which of the following are circumstances when fewer organizational layers are believed to work best? (Choose every correct answer.)
The environment is changing rapidly. Innovation is the core focus. There is a strong sense of organizational purpose.
Which of the following statements are true concerning network organizations? (Choose every correct answer.)
They are flexible arrangements among designers, suppliers, producers, and distributors. Each firm in the network pursues its own core capability.
True or false: Strategic alliances allow participants to respond to customer demands or environmental threats faster and less expensively than on their own.
True
Companies create formal relationships called strategic alliances with which of the following? (Choose every correct answer.)
Universities Governmental bodies Their competitors
Which of the following is NOT appropriate when delegating?
Using delegation to pass managerial responsibility to subordinates.
True or false: Accountability refers to the act of assigning tasks to a subordinate.
False
In contrast to most ISO standards, which describe a particular material, product, or process, the ISO 9001 standards apply in a general way to management systems at ______.
any organization
At Barney's Bats, Inc. top managers make all the decisions and pass them down to lower levels for implementation. Barney's Bats can be described as a(n) ______ organization.
centralized
Managers who want to strengthen their firm's ______ can do so by focusing on issues surrounding the firm's core capabilities.
competitiveness
When managers accumulate the right resources, combine them in ways that give the organization capabilities, and leverage or exploit their resources, they are managing ______.
core capabilities
As tasks of organizations become increasingly complex, the organization inevitably must be ______ into smaller units.
departmentalized
A functional structure often leads to functional ______ rather than functional integration.
differentiation
If one of the partners has expertise in technology or specific market segments, an alliance may eliminate the need to hire ______.
experts
Lean manufacturing strives for high quality, speed, and ______.
flexibility
Strategies that help a firm respond quickly to challenges are based on the firm's core competencies, strategic alliances, and ability to ______.
learn
A firm wishing to be a true ______ organization should have people who engage in disciplined thinking.
learning
An organization skilled at creating, acquiring, and transferring knowledge, and at modifying behavior to reflect new knowledge, is a ______ organization.
learning
The departments of a company that have responsibility for the principal activities of a firm, such as making or selling the products of the company, are called _____ departments.
line
The use of ______ is an important characteristic that differentiates traditional factories from flexible factories.
longer production runs
Mass customization is the production of varied, individually customized products at the ______.
low cost of standardized, mass-produced products
Flexibility is the main characteristic of an organization with a(n) ______ structure.
organic
When a company decentralizes its decision making and allows employees to rely more heavily on judgment than on rules, the company is using a(n) ______ structure.
organic
In private business enterprises, the ______ has ultimate authority in the organization.
owner
To be successful, a firm using the network structure must choose collaborators that ______.
provide complementary strengths
Successfully developing leadership in core capabilities can increase a company's ______ and competitiveness
responsiveness
Managers must usually restructure their internal processes and relationships with customers in fundamental ways to achieve ______ quality.
six sigma
Standardizing processes in order to reduce the causes of customer dissatisfaction to the lowest practicable levels is one component of ______.
six sigma quality
Randal Robinson works in Research and Development (R&D) for MNOP Corporation. Therefore, Randal works for a ______ department, rather than a line department.
staff
Units that support line departments are referred to as ______ departments.
staff
Large corporations have boards of directors that are elected by ______.
stockholders
A ______ is a formal relationship created to facilitate the joint pursuit of mutual goals.
strategic alliance
The idea that each employee should have only one boss is also known as the ______.
unity-of-command principle
Extra resources that organizations can rely on in a pinch are known as _____ resources.
Blank 1: slack
True or false: Under the functional form of departmentalization, managers become specialists rather than generalists.
True
The legitimate right to make decisions and to tell other people what to do is called ______.
authority
Before a company can win market share, it must commit to excellence and leadership in its ______.
core capabilities
Six sigma product defects include all the following except ______.
deficient corporate culture
A wide span of control results in a(n) ______ organization.
flat
The departments of a company that have responsibility for the principal activities of a firm, such as making or selling the products of the company, are called _____departments.
line
Lauren's Linens is able to produce a wide variety of linens, allowing customers to select special features for their particular orders while still maintaining the low cost of a standardized, mass-produced product. Lauren's Linens is taking advantage of ______.
mass customization
A ______ organization is composed of dual reporting relationships in which some managers report to two superiors: a functional manager and a divisional manager.
matrix
A(n) _____ organization is a hybrid form of organization in which functional and divisional forms overlap.
matrix
A collection of independent, mostly single-function firms that collaborate to produce a good or service is called a ______ organization.
network
W. Edwards Deming was a founder of the _____ management movement.
quality
A common pattern in a hierarchy is for people to have more ______ than ______.
responsibility; authority
Narrow spans of control build ______ organizations.
tall
The use of computer-aided design and computer-aided manufacturing to sequence and optimize a number of production processes is called ______.
computer integrated manufacturing
Building an organization around groups of customers makes use of ______ structure.
customer division
When decision making is spread to lower levels throughout an organization, it is considered highly ______.
decentralized
The approach that combines six sigma quality improvement techniques with initiatives that eliminate waste in time, complex processes, and materials is called ______.
lean six sigma
When all functions that contribute to a given product are organized under one product manager, the company is using a ______ organizational structure.
product division
ISO 9001 is a series of ______ standards developed by a committee working under the International Organization for Standardization.
voluntary quality
______ means that the person has the power and the right to make decisions, give orders, draw on resources, and do whatever else is necessary to fulfill a responsibility.
Authority
Which of the following are roles that brokers perform to aid integration and coordination in a network structured organization? (Choose every correct answer.)
Designer role Nurturing role Process engineering role
For a network structure to be successful, which of the following are necessary? (Choose every correct answer.)
Each party must trust others with strategic information. The firm must choose the right specialty. The firm must choose complementary collaborators.
Which are problems associated with the matrix form? (Choose every correct answer.)
Employee confusion over having more than one boss. Group input slowing down decision making. Managers jockeying for power over shared subordinates.
True or false: To engage in mass customization successfully, all necessary tasks and processes (modules) must be completed by units within the organization.
False
______ refer to the way all parts of an organization work together.
Integration and coordination
Which of the following are well-known advantages of functional departmentalization? (Choose every correct answer.)
Opportunities for specialized training Better maintenance of performance standards Achieving economies of scale
Which of the following are typically included in the top management team? (Choose every correct answer.)
President Chief Executive Officer Chief Financial Officer
Play Ball, Inc. began business by making shoes for athletes. It soon expanded and now manufactures and distributes clothing, sporting equipment, and protective sports gear worldwide. It is departmentalized by athletic equipment, shoes, and clothing. Play Ball utilizes which type of organizational structure?
Product organization
Which of the following statements about a modular network organization are true?
Results-based contracts bind the network together. A modular network is also known as a virtual network. Firms that do not perform well can be easily replaced.
Which of the following are elements of a traditional organization chart? (Choose every correct answer.)
Solid lines depict the superior to subordinate reporting relationships. Boxes depict different work. Horizontal layers depict levels of management.
Which of the following is a recommendation for delegating assignments more effectively?
The manager and subordinate need to communicate about the assignment throughout the delegation process.
Which of the following statements about the three types of technology configurations is true?
They are equally useful for describing service or manufacturing technologies.
Which of the following are characteristics of organizations that use continuous process technologies? (Choose every correct answer.)
They have a relatively organic structure. They are companies which continuously run that do not have any start or stop. They rely on machines and computers to do production work.
______ management is a way of managing in which all members of the organization are committed to continuous improvement of a product or service.
Total quality
True or false: Companies should commit to excellence and leadership in capabilities before they commit to winning market share for specific products.
True
True or false: Departmentalization helps an organization deal with increasing complexity in its operation.
True
True or false: The two-boss manager must learn how to be responsible to two superiors, one who is in charge of a product or division and the other who is in charge of a function.
True
The expectation that employees perform a job, take corrective action when necessary, and report upward on the status and quality of their performance refers to ______.
accountability
When a manager assigns an employee a new task, the employee then has ______ for that task.
accountability
`Jane owns Larry's Barbecue. She hired someone to make administrative and personnel decisions for the business who reports directly to her. This new manager has ______ to act in the owner's stead.
authority
A person who coordinates and integrates participants in a network is referred to as a(n) ______.
broker
For a matrix structure to work, middle or divisional managers must learn to ______.
collaborate and manage their conflicts constructively
CLM Technologies Inc. manufactures two products, and the production process is fully automated so that no human workers are on the factory floor. The factory runs 24 hours a day. This is an example of ______.
continuous process technology
The procedures that link the various parts of an organization for the purpose of achieving the organization's overall mission are called ______.
coordination
An approach that involves feedback and discussions to jointly figure out how to approach problems and devise solutions that are agreeable to everyone is known as ______.
coordination by mutual adjustment
An approach to get interdependent units that are required to meet deadlines and objectives to contribute to a common goal is known as ______.
coordination by plan
When using ______, interdependent units are free to modify and adapt their actions as long as they meet the deadlines and targets required for working with others.
coordination by plan
A strategy for enabling a firm to be responsive and competitive is to develop leadership in its ______.
core capabilities
A company's knowledge, expertise, and skills that underlie its ability to be a leader in providing a range of specific goods and services is its ______.
core capability
Frasier Industries has knowledge, expertise, and skill in producing surgical needles that allow the company to be a leader in the surgical needle market. This ability to lead in the industry is called a ______.
core capability
Dell Computers organizes its company into educational users, large business users, home users, and small business users. Dell uses the ______ form of organization structure.
customer division
Within the structure of an organization, differentiation is achieved through ______.
division of labor and job specialization
A(n) _____ organization groups all functions within a single division and then duplicates functions across all divisions.
divisional
Departmentalization that groups units around products, customers, or geographic regions refers to a(n) ______ organization.
divisional
If you are not delegating, you are merely ______ things; but the more you delegate, the more you are truly ______ an organization.
doing; managing
An organization with departmentalization around specialized functions such as production, marketing, or human resources, is called a ______ organization.
functional
John Deere has divisions of its company headquartered in Latin America, Europe, Brazil, and Germany. This is an example of a company using a ______ type of organizational structure.
geographic division
In a functional organization, people have ______.
greater opportunity for specialized training and in-depth skill development
Companies that provide goods and services in very low volume, such as restaurants or doctors' offices, are called ______.
job shops
The system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process right when they are needed is called ______.
just-in-time (JIT) operations
A centralized company with a mechanistic structure and many rules and formal procedures typically uses ______ technologies.
large batch
McDonald's and Burger King have production processes that tend to be very standardized, with all customers receiving similar if not identical products. They are examples of companies that use ______.
large batch technology
An operation that achieves increased efficiency while simultaneously improving effectiveness is utilizing ______.
lean manufacturing
An operation that strives to achieve the highest possible productivity and total quality by eliminating unnecessary steps in the production process and continually strives for improvement is employing the ______ approach.
lean manufacturing
In order to increase efficiency and reduce spending, city planners in Irving, Texas employed ______ analysis to reduce the time it takes to enact street repairs by more that 50%.
lean six sigma
Orangell Services seeks to maximize internal efficiencies while emphasizing rigid organizational rules. It is using a(n) ______ structure.
mechanistic
A variant of the network organization that uses temporary arrangements among partners that can be assembled and reassembled to adapt to the environment is the _____ network organization.
modular or virtual
Companies are able to mass customize products by organizing around independent operating units that perform specific processes or tasks called ______.
modules
Most executives today believe that fewer hierarchical layers result in a ______ organization.
more efficient
When units interact with one another to make accommodations to achieve flexible coordination, this is referred to as coordination by ______.
mutual adjustment
Organizations with an organic structure and relatively few rules and formal procedures are generally ______ companies.
small batch
A small office with one physician, one nurse, and one bookkeeper would be an example of a ______.
small batch organization
The number of people who report directly to a supervisor is called the of control.
span
Mary has five employees who report directly to her. This number of employees is known as her ______.
span of control
In general terms, the processes that lead to the creation of new products is referred to as ______.
technology
The methods, processes, systems, and skills used to transform resources (inputs) into products (outputs) are known as ______.
technology