Business Test Chapters 7-10

question

Which of the following is involved in setting work standards in schedules needed to implement the firms tactical objective?
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Operation Planning
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A _____ would be used by a department manager as a tool for making daily and weekly assignments
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Operation Plan
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Strategic planning looks at the organization as a whole while ___ planning focuses on daily tasks and decisions
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operational
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_____ planning is a part of contingency planning that is used to deal with sudden and unexpected changes in the business environment.
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crisis
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_____ is choosing among two or more alternatives
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Decision Making
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In a company in which an effective vision has been provided,
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Employees are likely to have a sense of purpose and a common set of values
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Small business organizations lack the size required to reap the benefits of labor specialization. True or False
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False
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Departments are functional units within the business such as sales, accounting, finance, and marketing. True or False
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True
question

Springfield National bank organizes its loan operations based on the market served , such as consumer, small businesses, and non-profit organizations. Departmentalization based on _____ allows springfield to better serve borrowers with different needs.
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Customer group
question

Question #41, what is the answer? A, B, C, or D
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Answer is D
question

The tendency for people to behave differently when they know they are being studied is known as the _____
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Hawthorne effect
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Which of the following statements about worker motivation is most consistent with the findings of the Hawthorne studies?
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Employees are more motivated if they feel they are part of a social project or group
question

The concept that a hierarchy of human needs can be used to explain motivation was developed by _________
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Maslow
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Maslow classified the needs for basic items such as food, water, and shelter as __________
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physiological needs
question

which of the following descriptions more appropriately reflects the way that GenXers prefer to communicate at work?
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through email
question

If fun and stimulation are rated as important job criteria by millennials, which of the following might be a way to motivate this generation?
answer

provide opportunity for innovation in job rotation
question

Three elements were basic to Taylor’s approach; time, method, and rules of work. True or False
answer

True
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Taylor’s goal was to find ways to improve workers motivation by making work more interesting and challenging. True or False
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False
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Managing a growing business often requires managers to create departments to accomplish various tasks. True or False
answer

True
question

Since motivation comes from within an individual, there is little that managers can do to motivate employees. True or False
answer

False
question

Organizing the structure of the company means deciding how many jobs need to be done and who is responsible for doing them. True or False
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True
question

If you have managerial skills and leadership ability, you also possess the personality to be an entrepreneur. True or False
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False
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Most entrepreneurs get the idea for their products and service from a flash of inspiration. True or False
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False
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Question #26
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Answer is FALSE
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Theory X managers are likely to believe that:
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the average person dislikes work and will seek to avoid it when possible.
question

The practice of moving employees from one job to another to make work more interesting is called:
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job rotation
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A key element of Taylor’s approach was the time and motion study, which examined the tasks performed to complete a job and the time needed to complete each task. True or False?
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True
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Taylor based his approach on the belief that each worker was an individual who should be treated as a unique asset to the firm. True or False?
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False
question

Elton Mayo is known as the father of scientific management. True or False?
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False. Frederick Taylor is.
question

What is Management?
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The process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.
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What are some of the changes happening in management today?
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Managers are giving more independence to employees; instead of giving orders they are coaching and mentoring and guiding, training, supporting employees; they are team players; they emphasize team work and cooperation over giving orders and disciplining.
question

What are the four primary functions of management?
answer

Planning, Organizing, Leading, and Controlling.
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What is a SWOT analysis?
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It asses a businesses Strengths, Weaknesses, Opportunities, and Threats
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What are the four types of planning?
answer

Strategic, Tactical, Operational, Contingency
question

What is strategic planning?
answer

The process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals. Managers determine Who to, What, When, and Where to sell their product or service.
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What is Tactical Planning?
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The process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done. Essentially, this is the part of planning that begins to take action on the strategic objectives.
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What is Operational Planning?
answer

The process of setting work standards and schedules necessary to implement the company’s tactical objectives. Breaks down by department, setting standards and schedules for what needs to be done and by whom.
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What is Contingency Planning?
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the process of preparing alternative courses of action the firm can use if its primary plans don’t work out.
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What is PMI?
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Listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third column.
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What’s the difference between goals and objectives?
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Goals are the long-term accomplishments the business wishes to attain, and objectives are short term accomplishments or statements that show or determine how the business will reach their goals.
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What are the six D’s of Decision making?
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1. Define the situation. 2. Describe and collect needed information. 3. Develop alternatives. 4. Decide which alternative is best. 5. Do what is indicated (begin implementation). 6. Determine whether the decision was a good one, and follow up.
question

What three categories of skills must a manager have?
answer

Technical skills, Human Relations Skills, and Conceptual skills
question

What is Transparency?
answer

The presentation of a company’s facts and figures in a way that is clear and apparent to all stakeholders.
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What is Autocratic Leadership?
answer

Leadership style that involves making managerial decisions without consulting others.
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What is Participative or Democratic Leadership?
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Leadership style that consists of managers and employees working together to make decisions.
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What is Free-Reign Leadership?
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Leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives.
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How does Enabling help to achieve empowerment?
answer

It provides the employee with the knowledge, skills, and confidence to be able to take part in empowerment, which would be to make important decisions without the guidance or orders from a higher up.
question

What are the five steps in the control process?
answer

1. Establish Clear standards. 2. Monitor and Record performance. 3. Compare results against standards. 4. Communicate the results. 5. If needed, take corrective action; give praise for good work done.
question

What is the difference between internal and external customers?
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External customers are those that buy products to sell to others and for personal use; internal customers are those that work within a department in an organization that receive services from other units or departments.
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What is knowledge management?
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Knowledge management is finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm.
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What is Economies of Scale
answer

The situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase.
question

Fayol’s Principles of Organization
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the idea that each worker should report to only one manager and that managers, in turn, should have the right to give orders for others to follow and the power to enforce them. Division of labor(departments); -Unity of command -Hierarchy of authority -Division of labor -Subordination of individual interests to the general interest -Authority -Degree of centralization -Clear communication channels -Order -Equity -Esprit de corps
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Max Weber and Organizational Theory
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an organizational structure composed of middle managers who implement the orders of top managers. He believed less-educated workers were best managed if managers or supervisors gave them strict rules and regulations to follow and monitored their performance.; was in favor of “bureaucracy” ; -Job descriptions -Written rules, decision guidelines and detailed records -Consistent procedures, regulations and policies -Staffing and promotion based on qualifications.
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What is a Heirarchy?
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A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person
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What is Chain of Command?
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The line of authority that moves from the top of a hierarchy to the lowest level.
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What is an Organizational Chart?
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A visual device that shows relationships among people and divides the organization’s work; it shows who reports to whom.
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What is Bureaucracy?
answer

An organization with many layers of managers who set rules and regulations and oversee all decisions.
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What does Division of Labor mean?
answer

Dividing the different tasks of a job among workers.
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What does Job Specialization mean?
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dividing tasks into smaller jobs; creating groups etc.
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Why are organizations becoming flatter?
answer

To improve customer satisfaction and satisfy demands quicker and also to keep up with managerial changes that includes empowering lower level workers and supervisors.
question

What are some reasons for having a narrow span of control in an organization?
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Span of control refers to the number of subordinates a manager supervises. Generally, the span of control narrows at higher levels of the organization, because work becomes less standardized and managers need more face-to face communication.
question

What are the advantages of Departmentalization?
answer

Departmentalization may reduce costs, since employees should be more efficient; employees can develop skills in depth and progress within a department as they master more skills; the company can achieve economies of scale by centralizing all the resources it needs and locating various experts in that particular area; employees can coordinate work within the function; and top management can easily direct and control various departments’ activities.
question

What are disadvantages of Departmentalization?
answer

Communication is inhibited; employee’s may identify with their department’s goals rather than the organization’s; the company’s response may be slowed by departmentalization; employees tend to be narrow specialists; department members may engage in groupthink and may need input from the outside to become more competitive.
question

What are the 6 various ways an organization can Departmentalize?
answer

customer group, product, functional, geographic, process, and hybrid.
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What is Line Organization?
answer

An organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor.
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What are Line and Staff Organization?
answer

Line Personnel: Employees who are part of the chain of command that is responsible for achieving organizational goals. Staff Personnel:Employees who advise and assist line personnel in meeting their goals.
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What is a Matrix Organization?
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An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure.
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What are Cross-Functional Self-Managed Teams?
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Groups of employees from different departments who work together on a long-term basis.
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What’s the difference between line and staff personnel?
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Line personnel are responsible for directly achieving organizational goals. Line personnel include production workers, distribution people, and marketing personnel. Staff personnel advise and assist line personnel in meeting their goals.
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What management principle does a matrix-style organization challenge?
answer

The flexibility inherent in the matrix-style organization directly challenge the rigid line and line-and-staff organization structures.
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What’s the main difference between a matrix-style organization’s structure and the use of cross-functional teams?
answer

The main difference between matrix-style organization and cross-functional teams is that cross-functional teams tend to be long-lived as compared to the temporary and fluid nature of teams in a matrix-style organization.
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What is Benchmarking?
answer

Comparing an organization’s practices, processes, and products against the world’s best.
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What are core competencies?
answer

Those functions that the organization can do as well as or better than any other organization in the world.
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What is an inverted organization?
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An inverted organization has employees who come into contact with customers at the top of the organization and the chief executive officer at the bottom. A manager’s job is to assist and support frontline people, not tell them what to do.
question

Why do organizations outsource functions?
answer

If an organization is not able to efficiently perform the function themselves they will outsource the function. Outsourcing is the process of assigning various functions, such as accounting, production, security, maintenance, and legal work, to an outside firm. The goal is to retain the functions that the organization considers its core competencies.
question

What is organizational culture?
answer

Organizational or corporate culture is the widely shared values within an organization that create unity and cooperation. Usually the culture of an organization is passed to employees via stories, traditions, and myths.
question

How can US businesses maintain a competitive edge?
answer

Focusing on the needs of customers, maintaining a close relationship with suppliers to make sure they are meeting customer needs, practicing continuous improvement, focusing on quality, saving on costs through better site selection, using new technologies, adopting new production techniques.
question

What must U.S. companies do to continue to strengthen the country’s manufacturing base?
answer

To strengthen the nation’s manufacturing base will require an adjustment and recognition of the new realities in manufacturing. This will require focusing on new technologies, such as the green ventures discussed in your textbook.
question

What led companies to focus on operations management rather than production?
answer

One change is the shift from a manufacturing economy to one dominated by the service industry. Operations management is a more specialized area of management that converts resources into useful outputs.
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What is Form Utility?
answer

The value producers add to materials in the creation of finished goods and services.
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What is Process Manufacturing?
answer

manufacturing physically or chemically changes materials, such as turning sand into glass or computer chips
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What is the Assembly Process
answer

puts together components to create a product.
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What is the Continuous Process?
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process involves long production runs turning out finished goods over time. (Mass production)
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What is an Intermittent Process?
answer

process involves short runs that respond directly to specific customer orders(more individual and custom production)
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What is Mass Customization?
answer

is the process of tailoring products to meet the demands of a large number of individual customers
question

What are the major criteria for facility location?
answer

labor costs, availability of resources, access to transportation, proximity to customers, suppliers, crime rates, quality of life for employees and the cost of living, to mention but a few.
question

What’s the difference between MRP and ERP?
answer

(MRP) is a computer-based operations management system that uses sales forecasts to make sure needed parts and materials are available at the right time and place. Enterprise resource planning (ERP), a newer version of MRP, combines the computerized functions of all the divisions and subsidiaries of the firm into a single integrated software program that uses a single database.
question

What’s just-in-time inventory control?
answer

Just-in-time inventory systems keep a minimum of inventory on the premises and only deliver parts just as they are needed on the factory floor.
question

What are Six Sigma quality
answer

a quality-control standard which sets a benchmark of no more than 3.4 defects per million opportunities.
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What is the Baldridge Award?
answer

created in 1987 to promote a standard for overall quality in the following areas: manufacturing, services, small business, education, and health care.
question

What is ISO9000
answer

quality management and assurance standards
question

What is ISO14000
answer

Environment
question

How could you use a Gantt chart to keep track of production?
answer

This chart will give management a clear idea as to the status of the project and how much has been completed at any given time.
question

What is a PERT Chart?
answer

analyze the tasks to complete a given project, estimate the time needed to complete each, and compute the minimum time needed to complete the whole project.
question

What are the similarities and differences between Taylor’s time-motion studies and Mayo’s Hawthorne studies?
answer

Frederick Taylor’s time-motion studies measured output. Taylor inspired the Hawthorne studies. Originally Elton Mayo wanted to determine the optimal level of lighting necessary to increase production on the factory floor which is a type of scientific management. He later determined that people who were empowered worked harder. Ultimately Mayo’s study brought about behavioral management.
question

How did Mayo’s findings influence scientific management?
answer

The findings at Hawthorne plant in Cicero, Illinois, completely changed how people thought about employees and motivation. One finding was that money was not a primary motivator. These new assumptions led to to many theories about the human side of motivation.
question

Explain the distinction between what Herzberg called motivators and hygiene factors.
answer

motivators made employees productive and gave them satisfaction. These factors related to job content. Hygiene factors related to the job environment and could, if left unattended, cause employee dissatisfaction but would not provide long-term motivation. Hygiene factors include such things as pay and working conditions.

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