Unit 2 Business

Which major decision style is characterized by having deep concern for others as individuals? A.)Behavioral B.)Analytical C.)Conceptual D.)Directive

A.)Behavioral

Management by Objectives (MBO)

A process in which objectives set by a subordinate and a supervisor must be reached within a given time period.

After a large hotel chain discovered that their computer systems had been hacked and customer credit card information had been accessed, they immediately notified customers via email and offered access to free credit monitoring for one year. The hotel's quick action in response to a serious situation was likely due to which of the following reasons? A.) The hotel chain had a contingency plan in place with specific steps in place to respond to the situation. B.) The hotel's tactical plans included instructions on how to handle a computer security breach and hotel employees responded as necessary. C.) The hotel chain's crisis plan indicated that the hotel should notify its customers. D.) Hotel management had participated in scenario building which allowed them to predict future events and how to respond to them.

A.) The hotel chain had a contingency plan in place with specific steps in place to respond to the situation.

When conducting a SWOT analysis, information about turnover, profit margins, and staff quality can be used to identify: A.)Company strengths and weaknesses B.)Environmental opportunities and threats C.)Environmental strengths and weaknesses D.)Company opportunities and threats

A.)Company strengths and weaknesses

A partnership of three former teachers started an online resource to help high school teachers teach science, technology, engineering, and mathematics (STEM) courses. However, their early success has been overshadowed by new education requirements from both federal and state education departments. Also, many competitors have emerged. The partners agree that they do not have solid non-political information that would help them predict the future of STEM support. Which approach is reasonable for them to take in making decisions? A.)Be prepared for conflicts over goals and decision alternatives B.)Assume clear links among decision elements C.)Picture eventual static circumstances and solid information D.)Expect to find a "right" answer by consensus

A.)Be prepared for conflicts over goals and decision alternatives

Which is the last step used in managerial decision making? A.)Evaluation B.)Development of alternatives C.)Diagnosis of causes D.)Selection of alternative

A.)Evaluation

A start-up company founded a technical university to implement digital innovation into teaching. Which feature of the company's mission statement demonstrates the company's commitment to reinventing higher education? A.)Statement of values that guide the company B.)Attitude toward employees and students C.)Description of desired markets and customers D.)Location of teaching and administrative facilities

A.)Statement of values that guide the company

The ultimate purpose of planning and goal setting in an organization is to: A.)attain the organization's overall mission. B.)improve productivity on a quarterly basis. C.)ensure that employees have something to do each day. D.)keep costs low.

A.)attain the organization's overall mission.

When Google created its China-based search engine, Google.cn, it did not foresee eventually abandoning it because of censorship issues with the Chinese government. Which kind of bias could have been in effect when Google made its initial decision? A.)Seeing what you want to see B.)Perpetuating the status quo C.)Overconfidence D.)Being influenced by emotions

B.)Perpetuating the status quo

Which of the following is not one of the benefits of organizational planning? A.)Setting performance standards B.)Preventing the use of intuition and creativity C.)Providing a source of motivation and commitment D.)Guiding resource allocation

B.)Preventing the use of intuition and creativity

What term is used to indicate that a decision maker chose the first solution alternative that satisfied minimal decision criteria? A.)Risk B.)Satisficing C.)Certainty D.)Bounded rationality

B.)Satisficing

When managers at a large pharmaceutical company look towards the future and think about what could be, they are likely using which innovative planning approach? A.)Situational designing B.)Scenario building C.)Contingency planning D.)Crisis planning

B.)Scenario building

If managers want to be effective in motivating subordinates, they should: A.)set goals that are very easy to achieve. B.)offer desirable rewards for attaining goals. C.)set unrealistic goals that can't be attained. D.)make sure goals are vague and open ended.

B.)offer desirable rewards for attaining goals.

All of the following are assumptions of the classical model of decision making except: A.)clear-cut problems and goals are available. B.)pluralistic, conflicting goals are known. C.)full information about alternative outcomes is available. D.)certainty condition exists.

B.)pluralistic, conflicting goals are known.

The founders of a medical device company need to take a different direction, after they did not receive FDA approval for their equipment. What would not be part of an after-action review of their original decision? A.)Create an action plan for future use B.)Review which parts did not work well C.)Assign responsibility for the failure D.)Review which parts did work well

C.)Assign responsibility for the failure

In his performance evaluation, Deandre heard his supervisor criticize him for settling for satisficing solutions, rather than maximizing solutions. Which action can Deandre take in making future decisions in order to change his supervisor's opinion? A.)Lead more teams to get more practice about making decisions B.)Organize the decision effort to compile all the problem details C.)Get some solid criteria for what constitutes a maximizing solution D.)Plan to set aside more time to reflect on each alternatives' benefits

C.)Get some solid criteria for what constitutes a maximizing solution

Sally-Jo, a long-standing director of marketing, believes that her company should acquire another company, a current competitor. Which outcome indicates that Sally-Jo has successfully built a coalition that supports that decision? A.)A committee is appointed to study acquisition options. B.)Many employees ask Sally-Jo "what's in it for them." C.)Managers commit to supporting the acquisition. D.)Executives hear Sally-Jo talk about the acquisition's benefits.

C.)Managers commit to supporting the acquisition.

What concept is at the top of an organization's goal hierarchy? A.)Targets for success B.)Strategy for revenue C.)Mission of the company D.)Vision for the future

C.)Mission of the company

What type of management decision was involved when Toyota Motor Co. announced a recall of millions of units of its cars because of a faulty accelerator pedal problem? A.)Uncertainty B.)Certainty C.)Nonprogrammed D.)Programmed

C.)Nonprogrammed

Which type of goals is middle management primarily concerned with? A.)Leadership B.)Strategic C.)Tactical D.)Operational

C.)Tactical

Another term for the strategic goals of an organization is: A.)fluctuating goals. B.)temporary goals. C.)official goals. D.)ad hoc goals.

C.)official goals.

Satisficing

Choosing an option that is acceptable, although not necessarily the best or perfect.

Emmanuel likes to be involved in giving input into the decisions that affect his team. Which two kinds of managerial decision styles, directing his work, would give him that opportunity to be heard? A.)Behavioral and analytical styles B.)Directive and analytical styles C.)Conceptual and directive styles D.)Conceptual and behavioral styles

D.)Conceptual and behavioral styles

What type of planning occurs when the organization is faced with a situation in which its continued existence may be in question? A.)Tactical planning B.)Operational planning C.)Strategic planning D.)Crisis planning

D.)Crisis planning

The process of_________, or identifying problems and opportunities and then resolving them, involves effort both before and after choosing a course of action.

Decision making

Typically set by frontline managers_____________ are the precise, measurable outcomes expected from departments, work groups, and individuals.

Operational goals

Political model

Pluralistic; conflicting goals, condition of uncertainty and ambiguity, inconsistent viewpoints and ambiguous information, bargaining and discussion among coalition members.

Making decisions and taking actions to achieve a superior fit between the organization and its environment is

Strategic management

Administrative model

Vague problem and goals, condition of uncertainty, limited information about alternatives and their outcomes, satisficing choice for resolving problems using intuition.

Point-counterpoint

a group decision-making technique that breaks people into subgroups and assigns them to express competing points of view regarding the decision

Stretch goals

are ambitious objectives, attainable only through imagination and innovation.

nonprogrammed decisions

are made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization.

Strategic goals

are projected company-wide accomplishments. Senior executives, such as the president or CEO, set these goals. These goals identify broad objectives for the entire organization that support the company's mission.

Tactical goals

are set by division heads, such as a vice president or director. They are the projected accomplishments for a large segment of the organization, which might be an entire division or unit of the company.

Key performance indicators

assess how well the organization is progressing toward its strategic goals to inform how managers set lower-level goals.

Quasirationality

combines intuitive and analytical thought

To achieve__________, companies target specific customers, focus on core competencies, provide synergy, and create value.

competitive advantage

Management by means (MBM)

emphasizes that if the right process is used to achieve goals, then the desired outcome will follow.

Coalition management

involves building an alliance of people who support the organization's goals and can influence other people work toward them.

Ambiguity

is by far the most difficult decision situation, because the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable.

Directive style

is used by people who like to be efficient and rely on existing rules or procedures to come up with simple, clear-cut solutions to problems. Managers who use this style often make decisions quickly because they do not like to deal with a lot of information and may consider only one or two alternatives.

Analytical style

like to use as much data as possible and carefully consider many alternatives to resolve complex solutions in the best way possible. They often base their decisions on objective, rational data from management control systems and other sources.

Uncertainty

means that information about alternatives and their likelihood of success is incomplete.

Risk

means the alternatives are known and the chance of success or failure of each alternative can be reasonably estimated.

Managers are engaged in __________ when they determine desired outcomes and the means to achieve them.

planning

Coalition building

promotes and develops alliances among organizations or constituencies for a common purpose. It builds linkages, solves problems, and/or enhances local leadership to address health concerns.

Operational goals

represent day-to-day objectives employees must meet to achieve tactical goals. The frontline managers or employees set these goals. Operational goals are sometimes called "objectives."

Synergy

the power that results from the combination of two or more forces

core competencies

those functions that the organization can do as well as or better than any other organization in the world

Programmed decisions

where the parameters of the decision and its outcomes are known, are associated with a high degree of certainty, and the probability of failure is low.

What type of benefits do goals and plans have?

•provide a source of motivation and commitment; •guide resource allocation; •be a guide to action; and •set a standard of performance.

Which step is not part of the process of electronic brainstorming? A.)Can be international. B.)Participants identify themselves Participants add idea Takes place over a computer network

B.)Participants identify themselves

Decision making process

1.Recognition of Decision Requirement 2.Diagnosis and Analysis of Causes 3.Development of Alternatives 4.Selection of Desired Alternative 5.Implementation of Chosen Alternative 6.Evaluation and Feedback

Nordstrom department stores are known for offering superior customer service. Nordstrom believes their customer service creates loyal customers and sets them apart from their competition. Nordstrom's superior customer service: A.)is its core competence. B.)builds synergy. C.)a strategic goal. D.)defines their target customer.

A.)is its core competence.

As department manager, Aoki worked out a plan with her team and help set goals for each of her employees. Each employee ended up with at least fifteen goals. This process violated which criteria for effective goal setting? A.)Defined time frame B.)Covers key result areas C.)Specific and measurable D.)Challenging but realistic

B.)Covers key result areas

Alli needs to make a quick decision under conditions of high uncertainty. She identified the decision requirements and analyzed the causes of the situation. Which action does she need to take next? A.)Evaluate her course of action, and ask for realistic feedback B.)Develop a custom solution that will satisfice for handling the problem C.)Implement the most environmentally responsible alternative D.)Select a desirable alternative to engage her company's employees

B.)Develop a custom solution that will satisfice for handling the problem

Rolex sells a product that is defined by its quality, craftsmanship, and luxury status. This is an example of which of Porter's competitive strategies? A.)Brand advantage B.)Differentiation C.)Price separation D.)Cost leadership

B.)Differentiation

Kia's company has set a new operational goal for her work group: "Eliminate overtime." Which action by Kia demonstrates adherence to her work group's operational plan to achieve this goal? A.)Documenting policies and procedures about overtime use. B.)Discovering daily and weekly resource scheduling roadblocks. C.)Asking for quality circle input about budget variances. D.)Creating a new process for authorizing vacation requests.

B.)Discovering daily and weekly resource scheduling roadblocks.

Hannah is leading the management group charged with coming up with solid plans for the most high-impact contingencies. What outcome demonstrates that the group successfully met the challenge? A.)Top executives read the documents produced. B.)Employees feel ready to meet a worst case situation. C.)No organizational emergencies arise in the near future. D.)Employees memorize the alternative responses.

B.)Employees feel ready to meet a worst case situation.

Demetrius has just been hired by a financial investment company, that has long used the management by objectives (MBO) method of goal setting and performance evaluation. Which outcome of a management by means (MBM) approach would Demetrius not include as a selling point for company adoption of MBM? A.)Company executives would focus attention on doing business for customer good. B.)Financial analysts would be less incentivized to sell products just to meet quotas. C.)Company executives would reap increased financial rewards for management. D.)Financial analysts would still be motivated to score well on the metrics of success.

C.)Company executives would reap increased financial rewards for management.

An internal medicine group practice wants to adopt a new trend, becoming a "concierge" operation. They will provide unlimited healthcare for monthly subscription fees. Which operational goal will be needed to successfully make this transition? A.)Nurses set their own schedules for assisting physicians. B.)Billers review the health-insurance coverage limitations. C.)Doctors immediately respond to illness and injury events. D.)Receptionists schedule patient appointments far in advance.

C.)Doctors immediately respond to illness and injury events.

Goals that are precise and measurable and carried out by departments, work groups, and individuals are called: A.)strategic goals. B.)stretch goals. C.)operational goals. D.)tactical goals.

C.)operational goals.

Classical model

Clear cut problems and goals, condition of certainty, full information about alternatives and their outcomes, rational choice by individual for maximizing outcomes.

Bounded rationality

Cognitive limitations that constrain one's ability to interpret, process, and act on information.

When determining___________strategy, managers consider what proportion of the firm's portfolio of businesses should be in different industries.

Corporate-level

The human resource department has detailed protocols, developed in___________, to revoke the security access of terminated employees to prevent sabotage or violent retaliation.

Crisis planning

Sergio spent a lot of time designing extensive details to complete a tactical plan to guide his department. Which action should he take to avoid the most common cause of a plan creating a false sense of security? A.)Keep in touch with her anxiety about success B.)Ask other managers to review her plan C.)Ask for critical employee and customer input D.)Identify areas of uncertainty about the future

D.)Identify areas of uncertainty about the future

What type of bias is Anastasia, a regional manager exhibiting when she continues to support a past decision she has made even if the current circumstances no longer apply to the situation that occurred when that decision was originally made? A.)Being influenced by problem framing B.)Being influenced by initial impressions C.)Seeing what she wants to see D.)Justifying past decisions

D.)Justifying past decisions

Which of the following is not an assumption of the classical model of decision making? A.)Managers seek to achieve agreed-upon goals and solve precisely defined problems. B.)Managers use logic to evaluate options and maximize the attainment of organizational goals. C.)Managers determine all possible alternatives and the potential outcomes of each choice they could make. D.)Managers will use intuition rather than rational analysis to make sound decisions when information is incomplete.

D.)Managers will use intuition rather than rational analysis to make sound decisions when information is incomplete.

Which theorist created "management by objectives" in U.S. businesses? A.)B.F. Skinner B.)Frederick Taylor C.)Elton Mayo D.)Peter Drucker

D.)Peter Drucker

DeAngelo did solid research before founding a food-tour company in a coastal community. He used information gained by his competitive analysis of another beachfront food-tour organization, in business for over 30 years. Which type of decisions is he basing his entrepreneurial activities upon? A.)Uncertainty decisions B.)Nonprogrammed decisions C.)Unique decisions D.)Programmed decisions

D.)Programmed decisions

Which one of these goals is the most specific and measurable, and therefore the most effective? A.)Be a good manager and have satisfied employees B.)Hire additional employees C.)Develop a new sales team with lots of talent D.)Recruit and train twenty new salespeople within the next three months

D.)Recruit and train twenty new salespeople within the next three months

A solar-energy manufacturing company is expecting new innovations to change its equipment and processes over the next two to three years. Which action illustrates that the manager knows how to keep employees on track toward accomplishing their final goal? A.)Talking about competitors' responses to new regulations B.)Discussing how the current equipment and processes work C.)Putting up poster reminders about the final goal D.)Setting biannual dates for investigating change options

D.)Setting biannual dates for investigating change options

Akram, the CEO of a brand new marketing firm introduces stretch goals into every company that he starts or joins. He believes that the only way for any team to overcome challenges common to start up companies is through radical innovation. As a result, Akram sets very high standards and goals to motivate the team to super-achieve. What can simultaneously be considered the best feature and, from some employees' viewpoint, be the worst characteristic of stretch goals? A.)Stretch goals are not set in stone; they can always be changed by the CEO. B.)Stretch goals are more likely met with gradual, incremental improvements. C.)Stretch goals are not always set with matching rewards for achievement. D.)Stretch goals are way beyond the current levels of organizational capability.

D.)Stretch goals are way beyond the current levels of organizational capability.

Your organization hires a consultant to analyze its decision-making practices, and the consultant determines that most decisions are made according to the administrative model. What does this tell you about decisions at your organization? A.)Managers usually seek out the best possible solution to problems B.)Before making a decision, managers usually have clear criteria in mind to evaluate alternatives C.)Decisions are not constrained by limitations of human ability, information, or resources D.)The soundness of decisions is often limited because managers are unaware of problems or opportunities that exist in the organization

D.)The soundness of decisions is often limited because managers are unaware of problems or opportunities that exist in the organization

Behavioral style

These managers like to talk to people one on one, understand their feelings about the problem, and consider the effect of a given decision on them. They usually place a high value on the personal development of others and may make decisions that help others achieve their goals.

devil's advocate

a person who is assigned the role of challenging the assumptions and assertions made by the group to prevent premature consensus

Effective managers are_________ of their dominant decision style to avoid making mistakes.

aware of

strategy formulation

managers determine the organization's goals and develop a specific strategic plan.