question

The career path that most resembles the traditional view of climbing the stairs in a corporate hierarchy is called the linear career.

answer

True

question

A steady-state career entails a slow-but-steady growth in level of responsibility and compensation.

answer

True

question

A spiral career path depends on having jobs that, while fundamentally different, build on one another.

answer

True

question

A transitory career path involves a series of alternating promotions and demotions

answer

FALSE: If you favor the transitory career path, you're the kind of person who doesn't want the responsibility that comes with promotion. You're a free spirit who likes the variety of experience that comes with continually shifting sideways from job to job or place to place (or you're afraid of making the commitment to doing any one thing).

question

Planning helps managers to cope with events that can be predicted but is not particularly helpful when conditions are uncertain.

answer

False Planning is coping with uncertainty by formulating future courses of action to achieve specified results.

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Planning occurs only at the highest levels of an organization, being done by top managers

answer

False Strategic Planning 1-5 years

question

Planning and strategic management derive from an organization's mission and vision about itself.

answer

True

question

In this time of Internet connections and speedy-access computer databases, one typically has complete information for planning and decision making.

answer

False Hard to attain since internet is so vast and new information is always coming into existence

question

Planning gives you expectations against which you can compare your performance.

answer

True

question

According to Miles and Snow's basic strategy types, a defender protects its strong position in an industry by constantly seeking new opportunities for growth.

answer

False!! Defenders are expert at producing and selling narrowly defined products or services. They do not tend to seek opportunities outside their present markets. They devote most of their attention to making refinements in their existing operations, such as slashing prices.

question

Facebook strives to be on the cutting edge of social media and is experiencing phenomenal growth. It encourages what it calls a "hacker" mindset, always looking to break down the old in favor of something better. Of Miles and Snow's basic strategy types, Facebook would be described as a prospector.

answer

TRUE!!! Prospectors are aggressive companies focused on developing new products or services and in seeking out new markets, rather than waiting for things to happen.

question

Microsoft has been accused of adapting competitors' products after those firms spent the resources and took the risks to develop them. Companies with this strategy are known as analyzers by Miles and Snow.

answer

True Lets see what works for others then we will try it

question

Blockbuster Video was slow to adapt to the latest trends in its industry, such as DVD-by-mail and movie downloads online. When it tried to incorporate the same into its business model, it was well behind competitors like Netflix. Blockbuster might be defined as a defender, according to Miles and Snow.

answer

FALSE! Reactor

question

Eastman Kodak, though it actually invented the digital camera, was slow to move into the production of this product as well as digital printers. Its continued reliance on traditional 35mm film production and processing, which resulted in its bankruptcy, makes it a reactor according to Miles and Snow.

answer

TRUE!!

question

The process of a business cycling through decisions first to select products and markets, then about producing and delivering the products, and finally to establish roles and processes is known as the discovery cycle.

answer

False The adaptive cycle portrays businesses as continuously cycling through decisions about three kinds of business problems: (1) entrepreneurial (selecting and making adjustments of products and markets), (2) engineering (producing and delivering the products), and (3) administrative (establishing roles, relationships, and organizational processes).

question

The administrative part of the adaptive cycle focuses on establishing roles and organizational processes.

answer

TRUE!!

question

In an organization's approach to planning, its mission and vision statements should be created once the strategic planning process is complete.

answer

FALSE!!!

question

Determining an organization's mission is the responsibility of top management and the board of directors.

answer

TRUE

question

A vision has a clear sense of the future and the actions needed to get there.

answer

True (long term)

question

A mission statement expresses what the organization should become and where it wants to go strategically.

answer

False it provides the product and or services it sells

question

Amazon's statement in which it states its desire "to be the earth's most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online" is a mission statement.

answer

FALSE "What do we want to become?" or "Where do we want to go?

question

Strategic planning determines goals for an organization for a period of 1-5 years.

answer

True 1-5 years

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Tactical planning is done by first-line managers, who look forward to the next 1-8 weeks.

answer

FALSE!!! Operational

question

Operational planning is normally performed by middle management

answer

False First line 1-52 weeks

question

Decisions that are predictable, following a well-defined set of procedures, are typical of operational planning.

answer

TRUE!

question

As part of the planning process, businesses set what are known as targets, which are specific commitments to achieve measurable results within a stated period of time

answer

FALSE! A GOAL , also known as an objective, is a specific commitment to achieve a measurable result within a stated period of time.

question

An organization's goals arranged in a hierarchy from low level to high level can be termed a means-end chain.

answer

True

question

Strategic goals focus on objectives for the organization as a whole.

answer

TRUE!

question

Operational goals are set by middle managers and focus on the actions needed to achieve strategic goals.

answer

FALSE TACTICTAL

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The operating plan defines the course of action needed to achieve a stated goal

answer

False action plan

question

A marketing plan is an example of an action plan.

answer

True Sales plan as well

question

The operating plan identifies clear targets such as revenues and cash flow.

answer

True

question

Southwest Airlines' goal of being highly profitable is a tactical goal.

answer

FALSE!

question

Southwest Airlines' goal of making arrival times more reliable is a tactical goal.

answer

TRUE

question

Policies, procedures, and rules are types of single-use plans

answer

False: (Standing plans) consist of policies, procedures, and rules.

question

A policy includes more specifics than does a rule.

answer

False

question

A procedure is a standing plan that outlines the response to particular problems or circumstances.

answer

True

question

In single-use plans, a program is another name for a project.

answer

FALSE! Single-use plans can be programs or projects. A program is a single-use plan encompassing a range of projects or activities. A project is a single-use plan of less scope and complexity than a program.

question

The U.S. government space program is an example of a single-use plan.

answer

True

question

SMART is an acronym that represents characteristics necessary to motivate employees in their periodic reviews.

answer

False The five characteristics of a good goal are represented by the acronym SMART. A SMART goal is one that is Specific, Measurable, Attainable, Results-oriented, and has Target date

question

The "R" in a SMART goal stands for "reachable."

answer

FALSE Result oriented

question

A bike messenger company that operates in the downtown area of a large city recently set the following goal: "All deliveries should be completed as quickly as possible." This example meets the criteria for a SMART goal.

answer

False Not measurable

question

SMART goals that are challenging yet can be met within the available scope of time, equipment, and financial support are known as attainable, the "A" in SMART.

answer

True

question

Because it is unrealistic for SMART goals to be accomplished overnight, they should have target dates.

answer

TRUE!!!

question

MBO was developed by Frederick Taylor as part of scientific management.

answer

FALSE! Peter Drucker

question

The first step in an MBO program is for the manager to set objectives for her subordinate.

answer

FALSE In the first step of MBO, you sit down with your manager and the two of you jointly set objectives for you to attain. It's necessary to have back-and-forth negotiation to make the objectives practicable.

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The purpose of MBO is to motivate subordinates.

answer

TRUE!

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Perpetuation objectives are one type of objective used in MBO.

answer

False

question

In MBO, objectives that employees fail to meet should be put aside for the next period in favor of ones that they can achieve.

answer

False Failure to meet MBO objectives can be addressed by redefining the objectives for the next 6- or 12-month period, or even by taking stronger measures, such as demotion

question

In order for MBO to be successful, it must be implemented throughout the entire organization.

answer

TRUE!!!

question

Organizationwide, the best structure for objectives in MBO is known as a diversity pattern.

answer

False It cascades Top to bottom

question

Deadlines can help one concentrate the mind, in order to make decisions rather than put them off.

answer

True

question

In the planning/control cycle, part of the control process can be to improve future plans.

answer

True

question

The planning/control cycle has three planning steps and three control steps.

answer

False Two planning and Two control

question

In the planning/control cycle, comparing the results with the plan is one of the control steps

answer

True!!

question

In the planning/control cycle, carrying out the plan is one of the control steps

answer

FALSE! Make the plan carry out the plan

question

A career that is upwardly mobile, with a number of jobs that are fundamentally different yet still build on one another is known as a(n) ______ career.

answer

SPIRAL

question

If you are happiest being a "hands-on" professional rather than becoming a manager, you may prefer a(n) ______ career.

answer

Steady State!

question

Planning is defined as

answer

setting goals and deciding how to achieve them.!

question

During which managerial function do you make a blueprint for action that describes what you need to do to realize your goals?

answer

PLANNING!

question

Which of the following is one of the challenges of planning

answer

Finding the time to plan!

question

If you do not have all of the information for a complete plan, you should

answer

Go with you got!

question

Which of the following is a benefit of planning?

answer

Helps you cope with uncertainty!

question

Which of the following is one of the organizational responses organizations make when confronted with uncertainty, as identified by Miles and Snow?

answer

Reactor

question

A company that is an expert at producing and selling narrowly defined products or services, and which does not tend to seek opportunities outside its present market is known by Miles and Snow as a(n)

answer

Defender

question

When a firm responds to uncertainty in its environment as a(n) ________, its continual pursuit of product and market innovation may lead to a loss of efficiency, but is likely to make competitors nervous.

answer

Prospector

question

Netflix is a

answer

Prospector

question

The adaptive cycle portrays businesses as continuously cycling through three kinds of business decisions: entrepreneurial, ______, and administrative.

answer

Engineering

question

If a business lacks insight or fails to use the adaptive cycle properly, it is likely to be which of the following?

answer

Reactor

question

Which of the following is the correct order of planning steps within an organization?

answer

Mission statement & vision statement, strategic planning, tactical planning, operational planning

question

Which of the following comes LAST when an organization makes a plan?

answer

Operational Planning 1-52 weeks First line managers

question

The statement which expresses the purpose of an organization is called a(n)

answer

Mission Statement

question

Hilton Hotel's statement expressing its purpose as "to fill the earth with the light and warmth of hospitality" is a(n)

answer

Mission

question

McKesson Corp., a U.S. pharmaceutical distributor, has a(n) ________ statement, which is "to provide comprehensive pharmacy solutions that improve productivity, profitability and result in superior patient care and satisfaction."

answer

Mission

question

Avon, the world's leading direct seller of beauty products, has a(n) ________ statement, which is "to be the company that best understands and satisfies the product, service, and self-fulfillment needs of women globally."

answer

Vision

question

There are three levels of planning. Their order, from first to last, is

answer

Strategic 1-5 years Tactical 6-24 months Operational 1-52 weeks

question

At which level of planning must managers be paying attention to the environment outside the organization, be future oriented, and deal with uncertain and competitive conditions?

answer

Strategic

question

Because of the frequency with which world competition and information technology alter marketplace conditions, a company's ________ may have to be done closer to every 1 or 2 years than every 5.

answer

Strategic planning

question

Executive management has recently decided to acquire a small company with a complementary product line, so Craig, a marketing manager, is meeting with other managers to discuss how to implement policies to support the acquisition over the next year. He is participating in

answer

tactical planning.

question

Portia is meeting with her subordinates to determine which workers from her department need training in order to handle production increases expected during the next nine months. Portia is involved in

answer

Operational

question

Which of the following is associated with operational planning?

answer

Directing daily tasks of nonmanagerial personnel.

question

Which of the following best represents the strategic planning time frame that Jeff Bezos of Amazon prefers?

answer

10-20 years

question

________ goals are set by and for middle managers and focus on the actions needed to achieve ________ goals.

answer

Tactical, Strategic

question

Cimarron Saddlery expects to improve profitability of the organization by 15% over the next three years. This is an example of a(n)

answer

Strategic

question

Managers at Cimarron Saddlery expect to meet profitability goals for the company by cutting costs through a 70% increase in global sourcing of leather and other materials over the next two years. This is an example of a(n)

answer

TACTICAL

question

After setting goals, managers should next

answer

PREPARE AN ACTION PLAN

question

Southwest Airlines acquisition of rival AirTran Airways may have been responsible for a sharp decline in on-time arrivals, which is one of Southwest's ________ goals, supporting a larger goal of being highly profitable.

answer

Tactical

question

One type of standing plan, the __________, outlines the general response to a designated problem or situation.

answer

Policy

question

When White Castle specifies exactly how to dress a hamburger, including the order of the condiments, this is called a

answer

Procedure

question

Dayton Construction has a ________ for processing invoices, which includes coding them by job number and construction phase, and matching them with the correct purchase order.

answer

Procedure

question

A single-use plan encompassing a range of projects or activities is a(n)

answer

Program

question

NASA's Curiosity Rover, employed to investigate a large crater on Mars, is an example of a

answer

Project

question

The goal to "improve the quality of customer service by instituting follow-up telephone calls this month" is not a SMART goal because it is

answer

NOT MEASURABLE

question

MBO stands for

answer

Management by Objectives

question

The first step in the MBO process is to

answer

Jointly Set Objectives

question

Sultan is a new manager, and he is using MBO for the first time with his subordinates. It is essential for Sultan to

answer

D. reward employees when they meet objectives.

question

Which of the following is a type of objective for MBO?

answer

Personal Development

question

Productivity gains from MBO are higher when an organization has

answer

Top Management commitment

question

Apple has a plan to generate buzz for its new products by maintaining secrecy about them. Apple has learned that strong measures are required to protect such mysteries, so it has enhanced its security and even fired and sued employees for leaking news about the products. These efforts would be considered which part of the planning/control cycle?

answer

Taking Corrective Action

question

Megan met with her supervisor for a formal review of her job performance over the past year. Though Megan had agreed to complete five training modules during the course of the year, she only did two. At this stage, which part of the planning/control cycle would be applicable to her manager going forward?

answer

Improve future Plans

question

Managers must be willing to make large, painful decisions to suddenly alter strategy.

answer

TRUE!!!

question

In a world of rapid and discontinuous change, the ability to please nonmanagerial employees has been called the golden trait among managers.

answer

False

question

A business plan is a document with the purpose of outlining a proposed firm's profit and loss statements for its first operating cycle.

answer

False Business Plan

question

Formal business plans can be dangerous to the survival of new businesses; many who try them fail because of the resources required to write and agree upon the plan.

answer

False

question

A strategy is a large-scale action plan that sets direction for an organization.

answer

True

question

Strategic management is the process of involving nonmanagerial employees in the formulation and implementation of strategies and strategic goals.

answer

False

question

An organization should adopt strategic management and strategic planning to encourage new ideas.

answer

True!!!

question

Bad planning is usually a result of top managers' inability to gather enough information

answer

False Bad planning usually results from faulty assumptions about the future, poor assessment of an organization's capabilities, ineffective group dynamics, and information overload.

question

Planning is usually a straightjacket for new ideas, since it effectively blocks peripheral vision in favor of a predetermined course.

answer

FALSE

question

A sustainable competitive advantage is the ability of an organization to produce goods or services more effectively than its competitors and outperform them.

answer

True

question

Ford's Sync in-dash communications platform, despite its high level of technology, has been unable to provide the company with a distinct competitive advantage.

answer

False!! "Right now (using Sync)," says an automotive analyst, "Ford has redefined this market, and it has made it very difficult for anybody to enter the space and compete." In other words, Sync is a distinct competitive advantage for the car company, at least so far.

question

Harvard Business School professor Michael Porter is a leading authority on competitive strategy.

answer

True!!

question

Strategic conservation attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company.

answer

FALSE Strategic positioning attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company

question

Strategic positioning can be achieved by performing similar activities to rivals, but in different ways.

answer

TRUE

question

A strategic position may be based on serving the few needs of a few customers.

answer

False!! Strategic position emerges from three sources: Few needs and many customers, broad needs and few customers, and lastly, broad needs and many customers

question

Good strategy allows a company to be everything to everyone

answer

FALSE!!! Requires trade offs to be good

question

Strategic planning is appropriate for large companies, but does not help the performance of small companies.

answer

FALSE!!!!

question

Management of a small company in an industry that is not very competitive should not engage in strategic planning because the small gains in performance may not be worth the effort.

answer

TRUE

question

Organizations may turn to the strategic-management process after a crisis.

answer

True

question

The first step of the strategic-management process is to establish the grand strategy.

answer

False The first step of the strategic-management process is to establish the mission and the vision.

question

The strategic-management process has five steps and a feedback loop

answer

True

question

A vision will be demoralizing to employees if it describes a future state that appears beyond the reach of the organization.

answer

FALSE

question

Many good mission statements include descriptions of an organization's customers, as well as its major products or services.

answer

TRUE!!! Mission statements may include information about customers and products or services.

question

According to Burt Nanus, good vision statements are useful because they help people to consider all interesting elements in their environments.

answer

FALSE

question

A good vision statement should describe a company's major strengths and competitive advantage in its industry.

answer

False

question

A mission statement should be ambitious.

answer

False

question

After the assessment of current organizational performance, the subsequent explanation of how its mission is to be accomplished is called a comprehensive strategy.

answer

False

question

A defensive strategy is sometimes called a retrenchment strategy

answer

TRUE

question

A development strategy is the common grand strategy that involves expansion.

answer

False

question

A continuity strategy is the common grand strategy that involves little or no significant change.

answer

FALSE

question

Alaska Airline was profitable in 2011, prompting is to decide to remain a "smallish, specialized, regional airline in a world of global giants," which is an example of a stability strategy.

answer

TRUE

question

A grand strategy can be established using tools like SWOT analysis and forecasting

answer

TRUE

question

Strategy formulation is the process of choosing among different strategies and altering them to best fit the organization's needs.

answer

TRUE

question

The starting point in establishing a grand strategy is usually an analysis of Porter's competitive forces.

answer

FALSE

question

Strategy actualization is the term for putting strategic plans into effect.

answer

FALSE Strategic implementation

question

A common challenge to strategy implementation is resistance by people within the organization.

answer

TRUE

question

One of the ways to keep a strategic plan on track is to make it very comprehensive, covering as many scenarios for the future as you can.

answer

FALSE

question

The primary purpose of competitive intelligence is to challenge the thinking of employees to make them better equipped to produce novel ideas for business.

answer

FALSE Practicing competitive intelligence means gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately. If you are a manager, one of your worst nightmares is that a competitor will surprise you with a service or product.

question

SWOT analysis helps management to develop a realistic understanding of the organization in relation to internal and external environments.

answer

TRUE

question

Obsolete technology and outdated facilities are examples of organizational threats.

answer

False

question

Guthrie Community College has done a SWOT analysis and discovered that the number of college-bound high-school juniors in its state has grown by nearly 20% in the past few years. This is a strength for Guthrie.

answer

FALSE The increased number of college-bound high-school juniors represents an opportunity for Guthrie because it is an environmental factor that the organization may exploit for competitive advantage.

question

Forecasting is a strategic-planning tool used to make long-term strategy

answer

TRUE

question

Two types of forecasting are trend analysis and competitive intelligence

answer

FALSE Trend Analysis and Contingency planning

question

Contingency planning is a hypothetical extension of a past series of events into the future.

answer

False

question

Too little or unreliable historical data may result in erroneous trend analyses.

answer

True

question

Contingency planning can also be called scenario analysis.

answer

True

question

The use of hedging to manage the cost of aviation fuel is an example of trend analysis

answer

FALSE Contingency planning

question

In Porter's model for industry analysis, there are three primary competitive forces in a firm's environment.

answer

False

question

Kraft Macaroni & Cheese is now challenged by new competitors such as Annie's and other store brands, which Porter's model for industry analysis calls the threat of new entrants.

answer

True

question

In a cost-leadership strategy, an organization targets a wide market and offers products or services of unique and superior value compared to competitors.

answer

False

question

Luxury carmaker Rolls-Royce has a focused-differentiation strategy

answer

True

question

A single-product strategy can be described as focused but vulnerable

answer

True

question

A small florist most likely follows a diversification strategy.

answer

False Single product strategy

question

General Electric sells lighting products and is also involved in plastics, broadcasting, and financial services. GE uses a related diversification strategy.

answer

False Unrelated diversification means operating several businesses under one ownership that are not related to one another. GE, which began by making lighting products, diversified into such unrelated areas as plastics, broadcasting, and financial services.

question

Burberry makes outerwear, accessories like umbrellas, and children's clothing, which is called a related diversification strategy.

answer

True An example of a related diversification strategy is the famous British raincoat maker Burberry. It started by making and marketing outerwear clothing but since then has expanded into related business lines, including accessories such as umbrellas, children's clothing, and even fragrances, which it sells in its own stores.

question

Synergy is one of the benefits of a single-product strategy.

answer

FALSE

question

The BCG matrix is a means of evaluating strategic business units on the basis of both their business growth rates and their profitability

answer

False The BCG matrix is a means of evaluating strategic business units on the basis of (1) their business growth rates and (2) their share of the market.

question

Cash cows in the BCG matrix have slow growth but high market share.

answer

True

question

Execution is tactical in nature, rather than part of a company's strategy.

answer

False Execution is not simply tactics; it is a central part of any company's strategy. It consists of using questioning, analysis, and follow-through to mesh strategy with reality, align people with goals, and achieve results promised

question

A company must be able to execute three core processes of business including people, products, and administration.

answer

False A company's overall ability to execute is a function of effectively executing according to three processes: people, strategy, and operations.

question

Insisting on realism is among the leader behaviors that help a manager successfully execute a strategy.

answer

True

question

Managers who execute well insist on constant optimism.

answer

False Bossidy and Charan propose that there are seven essential types of leader behaviors that are needed to fuel the engine of execution. Insisting on realism is among them. Many people want to avoid or shade reality, hiding mistakes or avoiding confrontations. Making realism a priority

question

A ______ represents an "educated guess" about what must be done in the long term for survival or the prosperity of the organization or its principal parts.

answer

STRATEGY

question

"Find out what customers want, then provide it to them as cheaply and quickly as possible" is Walmart's

answer

Strategy

question

Effective strategic management involves

answer

managers from all parts of the organization.

question

Which of the following would be considered a reason for adopting strategic management and strategic planning? A. To enhance employee loyalty. B. To keep corporate taxes at a minimum. C. To develop independent work from the staff. D. To provide develop a sustainable competitive advantage. E. To increase market dominance with repeat purchase.

answer

To provide develop a sustainable competitive advantage.

question

Which of the following statements about strategic planning and strategic management is true? A. Strategic planning is rarely used in the current environment of fast change because it does not allow for flexibility. B. Strategic management is a process completed by top managers. C. Both should be implemented because they can provide direction and momentum. D. Middle managers need not understand strategies; they simply follow them. E. Strategic planning is used to accomplish tactical goals.

answer

Both should be implemented because they can provide direction and momentum. 1) to provide direction and momentum, (2) to encourage new ideas, and above all (3) to develop a sustainable competitive advantage

question

Which of the following is not a typical cause of bad planning? A. Information overload. B. Inadequate planning budgets. C. Ineffective group dynamics. D. Poor assessment of an organization's capabilities. E. Faulty assumptions about the future.

answer

Inadequate planning budgets

question

Which of the following is not an area in which a company needs to get and stay ahead in order to sustain a competitive advantage?

answer

Talented Employees

question

__________ means performing different activities from rivals or performing similar ones in different ways.

answer

Strategic Positioning!!

question

Which of the following statements about strategy and strategic positioning is false?

answer

Few customers with narrow needs can be a source of strategic position.

question

Consumers can use a national company called Service Magic to receive bids from quality providers of a variety of services, including home remodel, landscaping, plumbing, and housecleaning. Service Magic charges service providers for the leads it provides to them monthly. Which of the following is the source of Service Magic's strategic position?

answer

Broad needs and many customers

question

A small firm is likely to benefit significantly from strategic planning

answer

When it is in a very competitive industry

question

Anne runs a small bakery on the main street of a resort town. Though hers was the only bakery around, the business had been suffering during the economic slowdown, and she was contemplating whether she should attempt strategic planning. Anne should be aware of what research finding regarding strategic planning?

answer

Both small and large firms benefit from strategic planning, but the small improvement in performance may not be worth the effort for small firms.

question

Milo owns and manages a small bike repair store. In order to determine if strategic planning will be likely to help his business, Milo should primarily assess

answer

How many competitors he has!!!!

question

Which of the following best represents a currently popular strategy among big companies like Apple, Google, and Amazon?

answer

Get consumers tightly connected to the company's ecosystem.!!

question

Which of the following steps of the strategic-management process is the source of its feedback loop?

answer

Maintain Strategic Control

question

Which of the following is not a stage in the strategic-management process?

answer

Conduct Trend Analysis

question

Which of the following should be included in a good vision statement? A. Firm's attitude toward its employees. B. Geographical areas in which the firm will compete. C. Firm's basic technology. D. Firm's standards of excellence and high ideals. E. Firm's major products or services.

answer

D. Firm's standards of excellence and high ideals

question

Which of the following is a question that should be answered by a company's mission statement? A. Will it inspire enthusiasm and encourage commitment? B. Does it set standards of excellence? C. Is it appropriate for the organization? D. Is it well articulated? E. Who is our customer?

answer

E. Who is our customer

question

The common grand strategies are A. star, question mark, cash cow, and dog. B. cost-leadership, differentiation, cost focus, and focused differentiation. C. growth, stability, and defensive. D. strengths, weaknesses, opportunities, and threats. E. defender, prospector, analyzer, and reactor.

answer

C. growth, stability, and defensive.

question

Computer technology corporation Dell recently acquired Quest software, an IT management software provider, in order to expand upon its software expertise and offerings. Dell is pursuing a(n) ______ strategy. A. escalation B. growth C. stability D. merger E. defensive

answer

B growth

question

High Peaks Skate and Snowboard is a small shop that provides equipment for Utah snowboarders in winter months. It has decided to increase advertising during this period in the Salt Lake Tribune and the Park Record in Park City, as well as to sponsor a new on-mountain competition. It is following which strategy? A. Inducement B. Defensive C. Growth D. Stability E. Enhancement

answer

C growth

question

Faisal has been running a commercial real estate business for nearly 30 years. As he approaches retirement, he is content to simply lease the commercial space he currently has, rather than make new deals to develop additional properties. Faisal is using which grand strategy? A. Stability B. Retrenchment C. Inducement D. Defensive E. Growth

answer

A. stability

question

A grand strategy that involves reduction in the organization's efforts is the ______ strategy. A. retrenchment B. reorganization C. downsizing D. growth E. stability

answer

A. Retrenchment

question

An Iowa ethanol production company has been suffering from a combination of lower demand for gasoline (into which its product is mixed) and higher corn prices (which is the largest input cost). It has responded by selling off land, buildings, and some of its reserve product inventory. This is a variation of which of these grand strategies? A. Right-size B. Growth C. Stability D. Defensive E. Reorganization

answer

D. Defensive

question

Recently ConocoPhillips, America's third-biggest oil company, spun off its refineries, pipelines, and chemicals division to form a new company called Phillips 66. Now ConocoPhillips will concentrate on its upstream operations. This is a variation of which of these grand strategies? A. Right-size B. Growth C. Stability D. Defensive E. Reorganization

answer

Defensive

question

A fine luggage maker was struggling with heavy debt and a sharp decline in customers, and it eventually declared bankruptcy. The company followed which grand strategy? A. Growth B. Stability C. Defensive D. Reduction E. Reactive

answer

Defensive

question

After film manufacturer Kodak failed to reinvent itself and declared bankruptcy in 2012, it decided to focus on its business of making inkjet printers as part of a ______ strategy. A. growth B. stability C. defensive D. reorganization E. reactor

answer

Defensive

question

The process of choosing among different strategies and altering them to best fit the organization is called A. strategy formulation. B. contingency planning. C. strategic control. D. strategy implementation. E. trend analysis.

answer

Strategy Formulation

question

Actively selling strategic plans to middle and supervisory managers, rather than just announcing them, is helpful for A. situation analysis. B. strategy formulation. C. strategy implementation. D. contingency planning. E. strategic control.

answer

Strategy Implementation

question

______ consists of monitoring the execution of strategy and making adjustments, if necessary. A. Mission translation B. Strategic control C. Strategy implementation D. Contingency planning E. SWOT analysis

answer

Strategic Control

question

Which of the following is not one of Bryan Barry's recommendations to keep a strategic plan on track? A. Keep moving. B. Engage people. C. Keep it simple. D. Avoid compromise. E. Stay focused.

answer

Avoid Compromise

question

Gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately is called A. strategic forecasting. B. corporate espionage. C. contingency planning. D. trend analysis. E. competitive intelligence.

answer

Competitive Intelligence

question

Which of the following is NOT a likely source of information for competitive intelligence? A. Competitors' press releases B. Industry gossip C. Competitors' annual reports D. Competitor's customer records E. Sales visits to customers

answer

Competitor's customer records

question

Rafaela is interested in learning more about what one of her competitors is doing so that she can anticipate its upcoming moves and react quickly. Which of the following would you suggest to her for this purpose? A. Go through the competitor's trash on its property. B. Pose as an applicant for a job with the competitor. C. Use investor information. D. Call the competitor, explain who you are, and ask directly. E. Pay the competitor's customers for information.

answer

Use Investors Information

question

Careful monitoring of an organization's internal and external environment to detect early signs of opportunities and threats that may influence the firm's plans is called A. competitive intelligence. B. forecasting. C. contingency planning. D. trend analysis. E. environmental scanning.

answer

Environmental Scanning

question

A situational analysis is also known as A. strategic control. B. SWOT analysis. C. trend analysis. D. contingency planning. E. forecasting.

answer

SWOT

question

When analyzing the "S" in a SWOT analysis, a manager might take note of A. a decrease in the size of the market. B. competitors' new products. C. high turnover of employees. D. strong financial resources of the firm. E. lifting of governmental regulations.

answer

Strong Financial Resources of the firm

question

When analyzing the "W" in SWOT analysis, a manager might take note of A. a decrease in consumer demand. B. a competitor's bankruptcy. C. high turnover of employees. D. good financial resources of the firm. E. institution of a tariff on foreign competitors.

answer

C. High employee Turnover

question

When analyzing the "O" in SWOT analysis, a manager might take note of A. favorable government regulations. B. absenteeism among employees. C. good morale among workers. D. high service levels. E. good financial position.

answer

A

question

When analyzing the "T" in SWOT analysis, a manager might take note of A. the firm's cash flow problems. B. a competitor's new product. C. employee absenteeism. D. strong corporate culture. E. high service levels.

answer

B

question

Analysis of changing demographics of the U.S. population would be part of the assessment of a company's A. strengths. B. weaknesses. C. opportunities. D. threats. E. opportunities or threats depending on the outcome of the analysis.

answer

E

question

A manager assessing the organization's access to capital is involved in analysis of A. strengths. B. weaknesses. C. opportunities. D. threats. E. strengths or weaknesses depending on the outcome of the assessment.

answer

E.

question

Amanda has just determined that her employees will require extensive training if they are to acquire the necessary technological expertise to produce a new product line. She has discovered one of her firm's A. strengths. B. weaknesses. C. opportunities. D. threats. E. market challenges.

answer

B

question

The skills and capabilities that give the organization advantages in executing strategies in pursuit of its mission are known as A. organizational strengths. B. organizational opportunities. C. organizational threats. D. organizational weaknesses. E. competitive strategies.

answer

A

question

Environmental factors that the organization may exploit for a competitive advantage are known as A. organizational strengths. B. organizational opportunities. C. organizational threats. D. organizational weaknesses. E. competitive strategies.

answer

B.

question

Alexis has prepared a report that details how prices for several raw materials her firm uses in production have risen by up to 30% in the last year. Her report would be an input into the __________ part of a SWOT analysis. A. strengths B. weaknesses C. opportunities D. threats E. structure

answer

D

question

A vision or projection of the future is called a(n) A. trend. B. forecast. C. contingency. D. strategy. E. opportunity.

answer

Forecast

question

A time-series forecast, which is used to predict long-term trends, cyclic patterns, and seasonal variations, is one type of A. organizational strength. B. contingency planning. C. trend analysis. D. balanced scorecard. E. strategy formulation.

answer

Trend Analysis

question

Creation of alternative hypothetical but equally likely future conditions is called A. contingency planning. B. trend analysis. C. balancing the scorecard. D. strategy formulation. E. forecasting.

answer

A

question

Which of the following is not one of the forces that affects industry competition, according to Porter's model for industry analysis? A. Threats of new entrants. B. Threats of substitute products and services. C. Bargaining power of buyers. D. Threats of government interference. E. Bargaining power of suppliers.

answer

D

question

Oil companies must be aware of other firms' development of ethanol products since this is an example of which one force in Porter's model for industry analysis? A. Bargaining power of buyers. B. Rivalry among competitors. C. Bargaining power of suppliers. D. Threats of new entrants. E. Threats of substitute products and services.

answer

E.

question

Porter's competitive strategies include A. prospector, defender, analyzer, and reactor. B. growth, stability, and retrenchment. C. cost leadership, differentiation, cost focus, and focused differentiation. D. strengths, weaknesses, opportunities, and threats. E. stars, questions marks, cash cows, and dogs.

answer

C.

question

An organization is developing a low-cost line of environmentally friendly cleaning products that it intends to distribute internationally. Here, the organization is following a ______ strategy. A. cost leadership B. differentiation C. cost focus D. retrenchment E. focused-differentiation

answer

A

question

An organization that is offering unique, superior products or services to a wide market is pursuing a strategy of A. cost leadership. B. differentiation. C. cost focus. D. diversification. E. focused differentiation.

answer

B

question

An example of a firm that pursues a differentiation strategy is A. Cartier. B. Lexus. C. Bic. D. A regional discount gas station chain. E. Home Depot.

answer

BIC

question

Timex Group USA makes inexpensive but reliable watches sold throughout the United States and is an example of an organization pursuing a _________ strategy. A. cost-leadership B. differentiation C. cost-focus D. focused-differentiation E. retrenchment

answer

A.

question

An organization that keeps costs and prices low in targeting a narrow market is pursuing a strategy of A. cost leadership. B. differentiation. C. cost focus. D. stability. E. focused differentiation.

answer

C

question

An organization that offers unique, superior products or services to a narrow market is pursuing a strategy of A. cost leadership. B. differentiation. C. cost focus. D. diversification. E. focused differentiation.

answer

E. focused differentiation.

question

Which of the following carmakers pursues a focused-differentiation strategy? A. Ferrari B. Ford C. Volkswagen D. Honda E. Kia

answer

Ferrari

question

The benefit of the single-product strategy for a company is A. synergy. B. focus. C. isolated systems. D. differentiation. E. lower costs.

answer

Focus

question

Time Warner runs different divisions specializing in television, music, and publishing. Time Warner is using a(n) ______ strategy. A. stability B. defensive C. diversification D. differentiation E. infiltration

answer

C. Diversification

question

Which of the following is most likely to use a diversification strategy? A. A tax preparation business B. A flower shop C. A lawn service D. A grocery store E. A shoe store

answer

D

question

__________ refers to the idea that the economic value of separate, related businesses under one ownership and management is greater together than the businesses are worth separately. A. Structural benefit B. Synergy C. Selective function D. Alignment E. Consolidation

answer

B

question

Which of the following strategy tools suggests that an organization will do better in fast-growing markets in which it has a high market share rather than in slow-growing markets in which it has a low market share? A. SWOT analysis B. Porter's model for industry analysis C. Porter's competitive strategies D. The BCG matrix E. Trend analysis

answer

BCG matrix

question

Daniel is assessing his company's portfolio of products. One of them is the best-selling brand of mayonnaise, although this is now a slow-growing market. If Daniel uses the BCG matrix, he would classify this product as a A. star. B. cloud. C. question mark. D. cash cow. E. dog.

answer

D

question

Apple's iPad has a very high percentage of the market for tablet computers, and this is also a quickly growing market. Thus, using the BCG matrix, the iPad would be classified as a A. star. B. cloud. C. question mark. D. cash cow. E. dog.

answer

Star

question

A recent survey found that the top concern among CEOs worldwide is A. profit growth. B. customer loyalty. C. excellence in execution. D. stimulating innovation. E. finding qualified employees.

answer

C

question

According to Bossidy and Charan, effective ______ requires managers to build a foundation for it within three core process: people, strategy, and operations. A. tactical planning B. strategy C. follow-through D. execution E. controlling

answer

D

question

According to Bossidy and Charan, which business process is most important for effective execution? A. Strategy B. People C. Alignment D. Operations E. Research

answer

B

question

Which of the following is not a question that Bossidy and Charan believe a strong strategic plan must address? A. How will deviations from the plan be handled? B. What is the assessment of the external environment? C. What are the critical issues facing the business? D. Can the business execute the strategy? E. Are the short term and long term balanced?

answer

A.

question

Which of the following is not a behavior of a leader who executes? A. Reward the doers. B. Insist on realism. C. Follow through. D. Know yourself. E. Respect others' limitations.

answer

E

question

Bossidy and Charan believe that to excel at execution, a leader should A. be hands-off once the strategy is set. B. micromanage the tactics. C. empower employees to take over the execution. D. probe for weaknesses in the substance and details. E. let the plan run its course before attempting to revise

answer

D

question

When a manager makes a decision based on the strong beliefs she already has, she is guilty of a prior-hypothesis bias.

answer

True

question

You have surveyed all of your close friends, and they all prefer ice cream to frozen yogurt. Thus you should be confident that everyone prefers ice cream; that is, this is a representative sample of adequate size.

answer

False If all of your friends prefer ice cream to frozen yogurt, this is not enough data on which to draw the conclusion that everyone prefers ice cream. This small sample might be biased.

question

The process of identifying and choosing between alternative courses of action is known as option evaluation

answer

False!!!

question

Politics has provided evidence that appeals to emotion are more effective than appeals to logic in decision making.

answer

True

question

Experts may make irrational decisions because they are unable to see things from an outsider's perspective.

answer

True

question

The rational model of decision making assumes that managers will choose the available alternative that best supports their existing beliefs.

answer

False The rational model of decision making, also called the classical model, explains how managers should make decisions; it assumes managers will make logical decisions that will be the optimum in furthering the organization's best interests.

question

The first step in the rational decision making process is to think up alternative solutions

answer

False

question

The final step in the rational decision-making process is to implement and evaluate the chosen solution.

answer

True

question

Opportunities should be identified in the alternative evaluation stage of the decision-making process.

answer

False Opportunities are situations that present possibilities for exceeding existing goals and they should be identified in the first step in the rational decision-making process (see Figure 7.1).

question

Analyzing the underlying causes of a problem or an opportunity is called diagnosis.

answer

True

question

Women investors make trades much less often than men, do a lot more research, and have better returns on average.

answer

True

question

When evaluating alternatives in decision making, you must assess cost and quality and also ask the question, "Is it simple?"

answer

FALSE You need to evaluate each alternative not only according to cost and quality but also according to the following questions: (1) Is it ethical? (2) Is it feasible? and (3) Is it ultimately effective?

question

For implementation of a chosen solution in decision making to be successful, you need to plan carefully and be sensitive to those affected

answer

True Duh

question

Customers who experience poor customer service are more likely to tell the company about it than to tell family or friends

answer

False!!!

question

If a chosen alternative is implemented and it does not appear to be working, you may need to give it more time.

answer

True

question

The rational model works well even with the incomplete information and uncertainty about consequences that managers often face.

answer

False!!

question

Nonrational models of decision making describe how managers should make decisions rather than how they actually do

answer

FALSE The nonrational models are descriptive rather than prescriptive: They describe how managers actually make decisions rather than how they should.

question

The incremental model is a nonrational model of decision making.

answer

TRUEEEEE

question

Sandra did an Internet search for Jamaican hotels when she was setting up her vacation, but found over 7 million results, of which she could only handle looking at about two pages. Sandra is operating under conditions of bounded rationality.

answer

True Bounded rationality is a concept that suggests that the ability of decision makers to be rational is limited by numerous constraints, such as complexity, time and money, and their cognitive capacity, values, skills, habits, and unconscious reflexes (see Figure 7.2).

question

Satisficing occurs when a manager takes small, short-term steps to alleviate a problem.

answer

False managers seek alternatives until they find one that is satisfactory, not optimal. In the incremental model, managers take small, short-term steps to alleviate a problem, rather than steps that will accomplish a long-term solution.

question

In time-critical situations, satisficing may be a good approach to decision making.

answer

True

question

One problem with the incremental model is that temporary steps may actually impede a beneficial long-term solution

answer

True

question

When then-president of Chrysler Bob Lutz ordered the development of the Dodge Viper without supporting research but because it "just felt right," he was using the incremental model of decision making.

answer

False INTIUTION MODEL

question

Intuition based on feelings rather than expertise, or the involuntary emotional response to those feelings, is known as automated experience.

answer

TRUE

question

The drawback of using the intuition model of decision making is that it can be difficult to convince others that your decision makes sense.

answer

True

question

When QVC experiments with which products it will sell on its television shopping network and follows this up with analysis of why some sell and others don't, it is using evidence-based management.

answer

True

question

Understanding how to use failure is an important implementation principle for evidence-based management.

answer

True

question

To effectively use evidence-based management, the more evidence you can gather, the better.

answer

False

question

Evidence shows that firms that announce layoffs have higher stock prices than their peers, both in the near term and over time.

answer

False

question

Portfolio analysis is an example of the incremental model of decision making.

answer

False

question

Analytics have been used in baseball and basketball to find undervalued players that could help teams that had limited resources to pay superstars.

answer

True

question

Capital One uses predictive modeling by conducting experiments to evaluate which customers will sign up for credit cards and pay back their debt.

answer

True

question

A recent study says that the world's information is doubling every seven years.

answer

False!!!

question

Risk propensity is the willingness to gamble or to undertake risk for the possibility of getting an increased payoff

answer

True

question

People with a low tolerance for ambiguity and an orientation toward task and technical concerns in making decisions have an analytical decision-making style

answer

False!!! Directive Style

question

A person with a directive decision style is efficient, logical, practical, and systematic in her approach to solving problems.

answer

True

question

A directive individual takes longer to make a decision than an analytical one.

answer

False

question

The conceptual style of decision making is the most people oriented of the styles.

answer

False Behavioral

question

Most managers have just one dominant decision-making style.

answer

False

question

You can increase your ability to influence others by being aware of decision-making styles.

answer

TRUE

question

To be compliant with current federal legislation, all for-profit companies are required to have an ethics officer.

answer

False

question

A cost-benefit matrix is a graph of decisions and their possible consequences and is used to create a plan to reach a goal.

answer

False

question

Studies show that even severe life events have a negative impact on one's sense of well-being for no more than about three months

answer

True

question

Relaxed change is one type of effective response for a manager to take when confronted with a challenge.

answer

False

question

Yichao, a manager of a downtown hair salon, has been procrastinating about a problem. Over the past year, his company has seen a high rate of customer defections, and even the loss of some of its best stylists. Still, he hasn't even begun to investigate the issue. This is an indicator of relaxed avoidance.

answer

False In defensive avoidance, a manager can't find a good solution and follows by (a) procrastinating, (b) passing the buck, or (c) denying the risk of any negative consequences. This is a posture of resignation and a denial of responsibility for taking action.

question

Importance of the situation, the credibility of the information about it, and the urgency of it should be considered in the decision about whether to decide

answer

True

question

Heuristics are strategies that simplify the process of making decisions

answer

True

question

When managers use information that is readily available from memory to make judgments, it is known as a confirmation bias.

answer

False

question

Being "loss adverse" and hating to admit you're wrong can contribute to the escalation of commitment bias.

answer

True

question

Groups make better decisions than most individuals acting alone.

answer

True

question

A disadvantage of group-aided decision making is that groups tend to suppress an individual's intellectual stimulation and creativity.

answer

False

question

The tendency for group members to agree for the sake of unanimity and thus avoid accurately assessing the decision situation is called satisficing.

answer

False

question

Where time is of the essence, in most cases an individual should make the decision rather than a group.

answer

True

question

Smaller-sized groups make higher-quality decisions.

answer

True

question

Fawaz is contemplating a couple of new options for the order takers that he manages. There is no great urgency in the situation; he just needs to have a procedure in place within a couple of months. Fawaz would be wise to make this decision by himself.

answer

False

question

Participative management has a large effect on job performance and job satisfaction.

answer

False

question

Consensus occurs when group members are able to express their opinions and reach agreement to support the final decision

answer

True

question

Middle and supervisory managers may be a source of resistance in participatory management

answer

True Participative management is more likely to work if middle and supervisory managers are supportive. These managers tend to resist PM because it reduces their authority. Thus, it's important to gain the support and commitment of managers in these ranks.

question

Keep in mind the importance of maintaining group relations; don't stand in the way of a group trying to reach consensus

answer

False

question

Putting questions to a vote is a good method to help a group reach consensus

answer

False

question

Brainstorming is a technique used to help groups generate multiple ideas and alternatives for solving problems.

answer

True

question

Heuristics is a technique in which members of a group come together over a computer network to generate ideas and alternatives

answer

FALSE

question

Group-driven computer-aided decision systems ask participants to answer predetermined questions on electronic keypads or dials

answer

False

question

Which of the following statements about biased decision making is true? A. Hindsight helps you correctly assess what you should have known beforehand. B. When you are making a decision and you have considerable experience in that area, you are then most likely to be overconfident. C. When confronted with a choice, people with strong prior beliefs tend to make their decisions based on their beliefs even if their beliefs are false. D. Sometimes a single event can allow you to determine the trend. E. You could confidently make a decision about something by asking 20 of your friends and deciding based on their preferences.

answer

C.

question

Which of the following is a step in the rational decision-making model? A. Seek consensus among leadership. B. Identify the problem or opportunity. C. Improve the chosen solution. D. Test solutions on a small scale. E. Implement a holding pattern.

answer

B.

question

The rational model of decision making is also called the ______ model. A. Balanced B. satisficing C. Incremental D. classical E. intuitional

answer

D

question

Diagnosis is used in which stage of the rational decision-making model? A. Identify the problem or opportunity B. Think up alternative solutions C. Evaluate alternatives D. Select a solution E. Implement a solution

answer

A.

question

Which of the following is true about women investors? A. They tend to trade more often than men. B. They do less research before investing than men. C. Their portfolios have a higher average gain than men's. D. They are increasingly being drawn to careers in finance. E. They tend to chase "hot tips."

answer

C

question

When evaluating a solution in decision making, answering yes to which of the following questions should cause you to reconsider choosing it? A. Is there enough time? B. Are the costs reasonable? C. Is it ethical? D. Is the technology available? E. Do you consider it merely "good enough"?

answer

E

question

In the final stage of the rational model of decision making, you should A. provide justification for the choice. B. select a solution. C. seek high-level support. D. evaluate the results. E. identify the winners and losers.

answer

D

question

Which of the following is NOT a recommended option when you discover that an action is not working after a decision? A. Give the chosen solution more time. B. Abandon the solution in favor of the status quo. C. Try another alternative. D. Go back to the beginning of the decision-making process. E. Change the chosen solution slightly.

answer

B

question

Which of the following is an assumption upon which the rational model of decision making rests? A. Decision makers can logically evaluate the alternatives. B. Consequences of any actions cannot be known. C. Decision makers typically have emotional blind spots. D. A decision maker will choose the option that is most ethical. E. Decision makers are unable to process all of the available information.

answer

A

question

Which of the following is one of the nonrational models of decision making? A. Boundary B. Classical C. Goal displacement D. Satisficing E. Attitudinal

answer

D

question

The concept of "bounded rationality" is most closely related to the _________ model of decision making. A. classical B. rational C. Satisficing D. Incremental E. intuition

answer

C

question

Nicole and other managers in her firm have some ties to Europe and are investigating opportunities for global expansion. They are struggling to understand the risks, given the complexity of world markets today and recent global instabilities. The difficulty Nicole's team is facing prevents perfectly rational decision making, and is an example of A. risk aversion. B. bounded rationality. C. groupthink. D. defensive avoidance. E. anchoring and adjustment.

answer

B

question

Alexis manages a clothing store in the mall. They were understaffed, and she thought she would have to work all day and help close the store that evening until a young man came in for an application around noon. Alexis told him he could have the job if he could come back at 4 p.m. to begin work. Here, Alexis was engaged in A. relaxed avoidance. B. confirmation bias. C. satisficing. D. heuristics. E. analytics.

answer

C

question

Which of the following is NOT a hindrance to perfectly rational decision making? A. Conflicting goals B. Imperfect information C. Information overload D. Limited cognitive capacity E. Lack of intuition

answer

ELack of intuition

question

To be compliant with current federal legislation, all for-profit companies are required to have an ethics officer.

answer

False

question

The incremental model of decision making suggests that managers make decisions by A. using processes that have worked in past experience. B. experimenting with alternatives in a controlled setting, one by one. C. choosing something that is "good enough." D. taking small steps to alleviate a problem. E. involving several lower-level employees.

answer

D. taking small steps to alleviate a problem.

question

Jerome's accounts payable department is behind schedule as the month-end close is approaching. This has been happening every month, but he hasn't found time to provide additional training. Instead he asks all of his employees to work eight hours of overtime that week and reassigns some tasks. This is an example of using the ________ model. A. rational B. predictive C. intuition D. Incremental E. coalition

answer

D. Incremental

question

Jenna manages a retail store and she has been noticing long lines at checkout lately. She is unsure about increasing staffing levels right now, so she chooses to reconfigure the physical orientation of the checkout space to alleviate the problem for the time being. Jenna is using the ________ model. A. Incremental B. coalition C. rational D. predictive E. intuition

answer

A

question

Making a choice without the use of conscious thought or logical interference is called A. reactive decision. B. irrational insight. C. intuition. D. instinctual choice. E. heuristics.

answer

C

question

Which of the following is NOT a reason why it is hard to bring the best evidence to bear on your decisions? A. Stories are more persuasive than evidence. B. People are trying to mislead you. C. The evidence leads to an unethical solution. D. The evidence doesn't quite apply. E. There's too much evidence.

answer

C

question

Redbox uses the large amount of data that it collects at its video and game rental kiosks to determine ways to improve customer retention and to encourage multiple rentals at the same time. The chain is using A. quantitative decision making. B. data correlation. C. heuristics. D. business analytics. E. the Delphi technique.

answer

D

question

Which of the following is characteristic of companies that use analytics? A. Use of predictive modeling B. Having a single, focused application for its use C. Information overload D. Use of competitive intelligence E. Making decisions intuitively

answer

A

question

The stores of data so vast that conventional database management systems cannot handle them and which instead require very sophisticated analysis software and supercomputing-level hardware are known as A. big data. B. heuristics. C. information escalation. D. incremental diagnostics. E. boundless resources.

answer

A

question

Amanda was asked by her boss to create a handbook for new hires because several employees had recently complained, saying they felt lost when they first started because procedures didn't seem to be formalized. Amanda herself had not felt that way, perhaps because she has a A. high tolerance for ambiguity. B. value orientation focused on people. C. conceptual decision style. D. high propensity for risk. E. low value orientation.

answer

A

question

A person with high tolerance for ambiguity has A. a high need for structure or control. B. a strong people orientation. C. an analytical mind. D. defensive avoidance tendencies. E. comfort with uncertain situations.

answer

E

question

Which of the following is a decision-making style based on the dimensions of value orientation and tolerance for ambiguity? A. professional B. personal C. technological D. Behavioral E. Mechanical

answer

D

question

An analytical decision-making style reflects a person who is ______ in his value orientation and ______ in his tolerance for ambiguity. A. task/technical; high B. task/technical; low C. people/social; high D. people/social; low E. managerial; low

answer

A

question

A person with a conceptual decision-making style is __________ in her value orientation and __________ in her tolerance for ambiguity. A. managerial; high B. task/technical; low C. people/social; high D. people/social; low E. managerial; low

answer

C

question

A person who is oriented toward people and social concerns and has a low tolerance for ambiguity is ______ in her decision-making style. A. analytical B. relaxed C. Conceptual D. directive E. Behavioral

answer

E

question

A person who is oriented toward task and technical concerns and has a low tolerance for ambiguity is ______ in his decision-making style. A. analytical B. Behavioral C. Conceptual D. directive E. heuristic

answer

D

question

Ryan is an efficient manager who is very good at meeting his deadlines and quite decisive. Still, his employees find him to be too controlling at times and unable to see the long-term consequences of his actions. Ryan is most likely ______ in his decision-making style. A. analytical B. autocratic C. Behavioral D. Conceptual E. directive

answer

E

question

Charlie has a reputation for being slow to reach a final decision but being able to decide a reasoned course of action regardless of the uncertainty. He is very thorough in collecting information and evaluating more alternatives than other managers are. Charlie is most likely ______ in his decision-making style. A. analytical B. Behavioral C. Conceptual D. directive E. relaxed

answer

A

question

Karl is very creative and prefers to look at the long-term issues when making a decision. He considers a wide variety of possible actions based on an open mind about the possibilities. Sometimes his coworkers find him indecisive because of these tendencies. Karl is probably ______ in his decision-making style. A. analytical B. Behavioral C. Conceptual D. directive E. relaxed

answer

Conceptual

question

Savannah is a warm and likeable manager who is extremely supportive of her employees, but she sometimes doesn't say no when she needs to and is somewhat passive in enforcing her decisions. Her decision-making style is most likely A. analytical. B. heuristic. C. behavioral. D. conceptual. E. directive.

answer

C

question

Scott has received training in resolving ethical dilemmas and currently oversees the development of an ethical code for his workplace. Scott is a(n) A. member of the principles board. B. morality team member. C. social responsibility chief. D. ethics officer. E. chief executive officer.

answer

Ethics officer

question

According to Harvard professor Constance Bagley, ethical decisions can be facilitated with a(n) A. goal statement. B. improved legal department. C. cross-department task force. D. decision tree. E. brainstorming session.

answer

Decision Tree

question

Which of the following questions about a proposed action is NOT a key question in Bagley's ethical decision tree? A. Is it legal? B. Does it maximize shareholder value? C. Is it ethical? D. Would it be ethical not to do it? E. Should the effect of it be disclosed to shareholders?

answer

E

question

It has been discovered that an overseas manufacturing facility your company uses has been employing child labor despite your position against it. You are contemplating relocating your manufacturing to another country where costs are somewhat higher but workplace standards are more tightly controlled. In using Bagley's ethical decision tree, you determine it would be unethical NOT to relocate, so you should A. relocate the facility, but don't tell shareholders about potentially smaller profits. B. warn the manufacturer that you will relocate should a violation occur again. C. continue to use the facility, despite your objections, because this will maximize shareholder value. D. relocate the facility, and tell the shareholders how this will affect their returns. E. continue to use the facility, because it is benefitting your company, and all workers, even underage ones.

answer

D

question

Carla heard from a client that a product similar to a popular one at her retail store was now at Walmart, imported from China, and costing just over half of her sales price. But Carla isn't really worried because she believes in her customers' loyalty, so she has no plans to make changes. Carla is practicing A. relaxed change. B. defensive avoidance. C. postponed action. D. relaxed avoidance. E. delayed decision.

answer

D

question

Which of the following responses to a challenge would be considered most like satisficing? A. Panic B. Relaxed avoidance C. Relaxed change D. Decreased involvement E. Defensive avoidance

answer

C

question

When a manager realizes that complete inaction will have negative consequences but opts for the first available alternative that involves low risk, it is called A. relaxed change. B. defensive avoidance. C. postponed action. D. relaxed avoidance. E. delayed decision.

answer

A

question

Passing the buck or procrastinating about a decision are examples of which type of reaction to a challenge? A. Panic B. Relaxed avoidance C. Relaxed change D. Decreased involvement E. Defensive avoidance

answer

E

question

Erik has been putting off a decision about firing several workers who have been ignoring safety regulations on the factory floor. After all, he thinks, his boss will eventually notice and take action. Erik is experiencing a(n) ______ reaction. A. relaxed change B. relaxed avoidance C. defensive avoidance D. unresponsive E. delayed change

answer

C

question

Robin is very worried about potentially having to lay off several of her staff. She can't sleep well, her stomach is bothering her, and she snaps at her employees. She doesn't know what to do but won't talk with anyone about it. Robin is experiencing a ______ reaction to a challenge. A. relaxed change B. defensive avoidance C. panic D. deciding to decide E. heuristic

answer

PANIC

question

In deciding to decide about a problem or opportunity, a manager should evaluate the importance of the situation, the credibility of the information, and A. the equitability of the outcomes. B. the availability of heuristics. C. the urgency of the situation. D. the cost of the solution. E. the ethics of making no change.

answer

C

question

Casey has a simple rule that he follows when it comes to new hiring; if four or more of his staff are working 20% or more overtime, he hires another employee. Casey is using A. relaxed change. B. heuristics. C. the Delphi technique. D. rational models. E. brainwriting.

answer

B

question

Managers tend to give more weight to more recent behavior. This is due to the A. heuristic bias. B. halo effect. C. recency effect. D. availability bias. E. representativeness bias.

answer

D

question

As Janine prepares to perform Ian's performance review, she carefully reviews notes she made throughout the year, rather than relying just on what she remembers. Janine is attempting to avoid the ______ bias. A. sunk-cost B. adjustment C. representativeness D. availability E. escalation of commitment

answer

D

question

Meg hired a great candidate from UCLA who has a big career ahead, and every year since Meg insists on going on a recruiting visit to that campus. Meg is convinced that hiring from UCLA in the future will produce the same level of success. This is an example of a(n) A. heuristic bias. B. professional effect. C. anchoring effect. D. availability bias. E. representativeness bias.

answer

E

question

Angelina is interviewing for an open position since she recently let go an employee for excessive absenteeism. Though she thinks that Ivy is the best candidate for the job, she has small children, which seemed to be the source of the last employee's absenteeism. Angelina is reluctant to hire Ivy, which is a(n) ______ bias. A. anchoring and adjustment B. confirmation C. availability D. representativeness E. escalation of commitment

answer

D. representativeness

question

When managers add up all the money already spent on a project and conclude it is too costly to simply abandon it, it is known as a(n) ________ bias. A. anchoring and adjustment B. confirmation C. availability D. representativeness E. sunk cost

answer

E. sunk cost

question

Managers at Thomas Canyon Credit Union have given employees raises year after year based on what they had given the year before, even though now their employees were quite underpaid compared to similar positions with other credit unions. This is an example of a(n) A. anchoring and adjustment bias. B. escalation of commitment bias. C. sunk-cost bias. D. availability bias. E. representativeness bias.

answer

A. anchoring and adjustment bias.

question

Many investment advisors attribute their successful outcomes to skill, even when it is more likely luck, which is an example of which bias? A. Overconfidence. B. Escalation of commitment bias. C. Hindsight. D. Availability. E. Framing.

answer

A. Overconfidence.

question

The tendency for decision-makers to be influenced by the way a situation or problem is presented to them is known as the ________ bias. A. overconfidence. B. escalation of commitment bias. C. hindsight. D. availability. E. framing.

answer

E. framing.

question

Having just spent $1,500 for a new engine for his old car, Danilo now learns his transmission needs to be replaced. He decides to junk the car now, rather than repair it. Danilo has avoided the __________ bias. A. anchoring and adjustment B. confirmation C. availability D. representativeness E. escalation of commitment

answer

E. escalation of commitment

question

Which of the following is an advantage of group decision making? A. Groupthink B. Deeper commitment to the decision C. Less thought required D. A quicker decision E. More flexibility in the final decision

answer

B. Deeper commitment to the decision

question

Spencer talked with Allie after their task force meeting, and they discovered that neither of them had been in favor of dropping some items from next year's budget, yet neither spoke up. Both wanted to be supportive of the group instead. This is an example of A. goal displacement. B. satisficing. C. groupthink. D. heuristics. E. self-selection.

answer

C. groupthink.

question

The tendency of a group to settle on a decision that is "good enough" is called A. goal displacement. B. satisficing. C. groupthink. D. heuristics. E. pseudo-optimization.

answer

B. satisficing.

question

Because Greg and Karen were having an argument about the order of their respective projects on the website, they were unable to work with the rest of the management team to come up with a staffing schedule. This is an example of what potential problem that occurs in groups? A. Goal displacement B. Satisficing C. Groupthink D. Heuristics E. Availability bias

answer

A. Goal displacement

question

The ______ a group is, the ______ the quality of the decision. A. more diverse; lower B. larger; lower C. more confident; higher D. more knowledgeable; lower E. more creative, lower

answer

B. larger; lower

question

Which of the following characteristics of groups may lead to groupthink? A. Too little information available to the group B. Errors in the information available to the group C. Overconfidence D. Disagreements among the members E. Diversity in the group

answer

C. Overconfidence

question

Anders has assembled a task force that is composed of people who don't know each other well. He should expect this group to make better decisions if A. it is a large group. B. the members have common knowledge. C. the group is very confident. D. time pressure is high. E. individuals have unique, specialized knowledge.

answer

B. the members have common knowledge.

question

Which of the following statements about group decision making is true? A. Individuals are always better than groups in decision making. B. Groups are always better than individuals in decision making. C. Groups minimize satisficing. D. Groups are faster at making decisions. E. Managers should utilize groups for decision making on a selective basis.

answer

E. Managers should utilize groups for decision making on a selective basis.

question

Which of the following is a practical guideline in determining whether to use group decision making? A. When it can encourage satisficing B. When it can increase speed C. When it can produce groupthink D. When it can increase development E. When a decision occurs infrequently

answer

D. When it can increase development

question

The process of involving employees in setting goals, making decisions, solving problems, and making changes is called A. conjoint management. B. escalation of commitment. C. satisficing. D. goal displacement. E. participative management.

answer

E. participative management

question

Which of the following is a factor that helps participative management work? A. Top management is occasionally involved. B. Employees trust managers. C. PM is implemented without interference from TQM. D. Employees work in interdependent jobs. E. Employees need more training.

answer

B. Employees trust managers.

question

Which of the following is NOT a rule for brainstorming suggested by IDEO? A. Go for quality over quantity. B. Defer judgment. C. Stay focused on the topic. D. Encourage wild ideas. E. Be visual.

answer

A. Go for quality over quantity.

question

Cara was enthusiastic about the new decision technique being used at her office. Everyone gathered in a room with their computers and typed responses anonymously. These appeared on the screen in the front of the room. Cara felt comfortable participating fully even though she was new to the company, and by the great number of comments, it seemed that everyone else did, too. Cara participated in A. the Delphi technique. B. collaborative management. C. a group-driven computer-aided system. D. a chauffeur-driven computer aided system. E. brainstorming.

answer

C. a group-driven computer-aided system.

question

Which of the following is NOT one of the suggestions for decision making recommended by management consultant Odette Pollar? A. Decide in a timely fashion. B. Don't agonize over minor decisions. C. Separate outcome from process. D. Never stop gathering facts. E. When overwhelmed, narrow your choices.

answer

D. Never stop gathering facts.

question

If your boss asked you to take care of a task, productivity expert Odette Pollar says it is still OK to delegate it.

answer

False

question

Confidential matters and issues involving discipline cannot be effectively delegated.

answer

True

question

Corporate culture is as also known as organizational structure

answer

False Organizational culture, also called corporate culture, is a system of shared beliefs and values that develops within an organization and guides the behavior of its members. Organizational structure is a formal system of task and reporting relationships that coordinate and motivates an organization's members so that they can work together to achieve the organization's goals

question

The "social glue" that binds customers to a particular firm is called organ

answer

FALSE Organizational culture, sometimes called corporate culture, is a system of shared beliefs and values that develops within an organization and guides the behavior of its members. This is the "social glue" that binds members of the organization together.

question

Organizational culture can vary widely across organizations on dimensions of treatment of employees, teamwork, and risk taking

answer

TRUE Culture can vary considerably, with different organizations having differing emphases on risk taking, treatment of employee

question

A formal system of task and reporting relationships that coordinate and motivate an organization's members is known as an organizational configuration.

answer

FALSE Organizational structure is a formal system of task and reporting relationships that coordinate and motivates an organization's members so that they can work together to achieve the organization's goals

question

A clan culture has an external focus and values flexibility rather than stability and control

answer

False

question

An adhocracy culture attempts to create innovative products by being adaptive, creative, and quick to respond to the environment.

answer

True

question

A market culture has a strong external focus and values stability and control.

answer

True

question

When Pfizer Pharmaceuticals manages failure and disappointment and helps drug researchers live for the small victories in discovering new drugs for various diseases, it is focusing on the adhocracy aspects of its culture.

answer

True

question

A company with a formalized, structured work environment aimed at achieving efficiency, timeliness, and reliability in the creation and delivery of products has a clan culture.

answer

FALSE Hierarchy culture has an internal focus and values stability and control over flexibility. Companies with this kind of culture are apt to have a formalized, structured work environment aimed at achieving effectiveness through a variety of control mechanisms that measure efficiency, timeliness, and reliability in the creation and delivery of products.

question

Organizational culture appears as three layers: observable artifacts, token values, and foundational beliefs.

answer

False

question

In an organization, culture exists on both visible and unobservable levels.

answer

True

question

Allowing business-casual dress in the workplace is an example of the espoused values portion of organizational culture.

answer

False

question

Espoused values represent the values and norms actually exhibited in the organization.

answer

False

question

An organization's basic assumptions are difficult to change.

answer

True

question

For IKEA, whose vision is "to create a better life for the many," the inexpensive LACK side table would be considered a symbol

answer

True

question

A ritual is a narrative based on true events, which is repeated and sometimes embellished upon to emphasize a particular value of an organization.

answer

False

question

A hero is a person whose accomplishments embody the values of the organization

answer

True

question

When the National Football League annually presents the winners of the Super Bowl with rings in a ceremony, it is an example of a ritual.

answer

True

question

The pink Cadillac that Mary Kay presents to the best salespeople of its cosmetic line is an example of an emblem.

answer

False

question

Research shows that organizations with market cultures report higher profits and financial growth.

answer

True

question

A good organizational culture can facilitate a low turnover rate

answer

True

question

Sometimes an organizational structure can be strong enough to take the place of organizational culture.

answer

False

question

When employees are forced to adhere to an organization's values through extensive procedures and bureaucracies, its culture is said to be weak.

answer

True

question

The fit perspective assumes that the most effective cultures help organizations anticipate and adapt to environmental changes.

answer

False

question

An investigation of companies with different organizational cultures showed that long-term financial performance was highest for those with an adaptive culture

answer

True

question

Business founders and subsequent managers primarily use power and coercion to embed the culture into the organization

answer

False There are 11 ways that organizational members teach to one another the values, beliefs, expectations, behaviors, and business philosophy that constitute the organization's culture. They include formal statements, slogans and sayings, stories, reactions to crisis, role modeling, organizational structure, and the like.

question

Danilo opened a new restaurant in Phoenix called El Barrancón. He wanted to be sure a culture of service and excellence was embedded in his new organization so he posted the values of the organization in the kitchen and in the dining room. Danilo is teaching his organization the culture through this action.

answer

True

question

Sharing stories, legends, or myths are good ways to develop an organizational structure.

answer

FALSE!!!!

question

The type of training provided to new hires and the frequency of performance evaluations contribute to their understanding of the organization's culture.

answer

TRUE There are 11 ways that organizational members teach to one another the values, beliefs, expectations, behaviors, and business philosophy that constitute the organization's culture. One is through role modeling, training, and coaching

question

By definition, an organization can be composed of as few as two people.

answer

TRUE

question

The Red Cross is an example of a mutual-benefit organization

answer

FALSE Mutual-benefit organizations are voluntary collectives whose purpose is to advance members' interests (examples: unions, trade associations). Nonprofit organizations are formed to offer services to some clients, not to make a profit (examples: hospitals, colleges).

question

Only for-profit organizations can be meaningfully represented by an organization chart.

answer

FALSE Whatever the size or type of organization, it can be represented in an organization chart

question

An organization chart typically takes on a family-treelike pattern, with many boxes and lines showing official positions and reporting relationships.

answer

TRUE

question

The hierarchy of authority, or who reports to whom, is shown with horizontal lines on an organization chart.

answer

FALSE

question

A formal vertical hierarchy shows a company's most typical channels of communication

answer

True

question

Horizontally on an organizational chart are the various companies outside of the firm, such as suppliers and distributors.

answer

False

question

As you are promoted to higher levels in an organization, you may have to actively resist isolation

answer

True

question

The division of labor means that an employee should report to no more than one manager

answer

FALSE Division of labor, also known as work specialization, is the arrangement of having discrete parts of a task done by different people. Unity of command is the idea that an employee should report to no more than one manager in order to avoid conflicting priorities and demands

question

Hierarchy of authority is also referred to as the chain of command.

answer

True

question

An organization is said to be flat when there are only a few levels with wide spans of control

answer

True

question

Power refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources

answer

False

question

Director of accounting is an example of a staff position.

answer

False

question

Staff personnel have authority functions in that they provide advice, recommendations, and research to line managers

answer

True

question

An advantage in using centralized authority is that there is less duplication of work, because fewer employees perform the same task.

answer

True

question

One advantage of decentralized organizations is that procedures are uniform and thus easier to control.

answer

False

question

The functional structure is the most typical type for small firms.

answer

False

question

An organization with different groupings of people based on its products, customers, or geographic regions has a functional structure.

answer

False

question

Ford Motor Co. has what is known as a divisional structure because it has different divisions for passenger car dealers, large trucking customers, and farm products customers

answer

True

question

If a marketing person reports to both the vice president of marketing and also to the project manager for the Ford Mustang, she works in a network organization

answer

False

question

A functionally organized company can also use cross-functional teams to work on particular problems.

answer

True

question

A hollow structure is often called a network structure

answer

True

question

Bombardier builds eight-passenger business jets from 12 separately sourced portions which can be put together in four days. This firm has a modular organizational structure.

answer

TRUE

question

The process of fitting the organization to its environment is called incidental design.

answer

False

question

The founder of McDonald's, Ray Kroc, intended that a Big Mac should taste the same anywhere, and accordingly, the company has many specific procedures, making it a mechanistic organization

answer

True

question

Companies that must respond to fast-changing customer tastes often favor a mechanistic structure to an organic one

answer

False

question

Lawrence and Lorsch's term for the tendency of an organization's parts to disperse and fragment is dissolution.

answer

False

question

Integration is the tendency of the parts of an organization to draw together to achieve a common purpose.

answer

True

question

The four stages of organization life cycle include birth, growth, stability, and maturity

answer

False Birth,Youth,Midlife, Maturity

question

In general, organizations become more bureaucratic over their lifetimes.

answer

True

question

The first stage of in an organization's life cycle is known as the creation stage.

answer

False

question

According to productivity expert Odette Pollar, which of the following should a manager delegate? A. Emergencies. B. Tasks that challenge subordinates. C. Special tasks your boss has asked you to do. D. Personnel matters. E. Confidential matters.

answer

B. Tasks that challenge subordinates.

question

Which of the following is a good reason to avoid delegating tasks? A. A wish to keep subordinates from taking risks. B. To avoid making subordinates deal with a difficult client. C. A desire to keep an enjoyable part of the job. D. A fear that sensitive personnel matters will not be kept private. E. A concern that subordinates could do a better job.

answer

D A fear that sensitive personnel matters will not be kept private.

question

Which of the following is not a description of organizational culture? A. A system of shared beliefs and values. B. "Social glue" binding members together. C. A system of reporting relationships. D. An organization's personality. E. A system that guides the behavior of organizational members.

answer

C. A system of reporting relationships.

question

The competing values framework classifies organizational cultures into which of the following? A. Stable, flexible, and laddered cultures. B. Observable, flexible, competitive, and driven cultures. C. Symbolic, heroic, and basic cultures. D. Clan, adhocracy, market, and hierarchy cultures. E. Observable, espoused, and core cultures.

answer

D. Clan, adhocracy, market, and hierarchy cultures

question

Which type of culture has an internal focus and values stability and control over flexibility? A. Clan B. Adhocracy C. Market D. Classical E. Hierarchy

answer

E. Hierarchy

question

Kia Motors takes a very aggressive stance to fire executives who don't meet sales goals, which makes the company an example of a(n) ______ culture. A. clan B. target-driven C. adhocracy D. market E. hierarchy

answer

D. market

question

Turnbull Software is a medium-sized but growing company that works diligently to create a supportive and familylike atmosphere for its employees. It provides superior benefits and involves employees in decisions large and small. Turnbull has a(n) ______ culture. A. clan B. adhocracy C. market D. hierarchy E. espoused

answer

A. Clan

question

Digital Globe is a technology company that provides advanced, high-resolution satellite pictures of the earth, digitalized for electronic use. As the military, governments, and others demand clear pictures, Digital Globe provides them immediately with its innovative and responsive products. Digital Globe is most likely an example of a(n) ______ culture. A. inventive B. clan C. adhocracy D. market E. hierarchy

answer

C. Adhocracy An adhocracy culture has an external focus and values flexibility.

question

Hard-working people at insurance giant AIG joked that "thank heavens it's Friday because that means there are only two more working days until Monday." This is characteristic of which layer of organizational culture? A. Enacted norms B. Invisible artifacts C. Symbolic culture D. Heroic mores E. Basic assumptions

answer

E. Basic assumptions

question

Which of the following is an example of an observable artifact of organizational culture? A. Mission statements B. Awards ceremonies C. Basic assumptions D. Codes of ethics E. Core beliefs

answer

B.

question

______ values are the explicitly stated values and norms preferred by an organization. A. Espoused B. Inherent C. Enacted D. Expressed E. Internalized

answer

A. Espoused

question

Although managers may wish to affect employees with explicitly stated values, they are frequently more influenced by ______ ones. A. subversive B. expressed C. espoused D. adopted E. enacted

answer

E. Enacted

question

Which of the following is not a device through which culture is typically transmitted to employees? A. Symbols B. Stories C. Strategic plan D. Heroes E. Rites and rituals

answer

C. Strategic Plan

question

One of the typical devices for transmitting culture, a(n) ______ is an object, act, quality, or event that conveys meaning to others. A. icon B. symbol C. sign D. representation E. ritual

answer

B. Symbol

question

Southwest Airlines employees all know about when CEO Herb Kelleher visited one of the airline's hangars in the middle of the night in a dress with a purple boa—just to liven things up. In fact, this is part of Southwest's history. This is an example of using a ________ to impart organizational culture. A. myth B. story C. ritual D. rite E. value

answer

B. Story

question

A Ritz-Carlton beach attendant who surprised a couple with flowers, candles, and champagne for the man's proposal was able to transmit the culture of the luxury hotel to other employees, so he would be considered a A. champion. B. key employee. C. potential manager. D. hero. E. superior.

answer

D. Hero

question

The activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life are known as A. myths. B. stories. C. conventions. D. rites and rituals. E. values.

answer

D. rites and rituals.

question

Among the functions of organizational ________ are that it gives members an organizational identity and it promotes social-system stability. A. design B. structure C. life cycle D. charting E. culture

answer

E. Culture

question

Among the organizational cultures thought to enhance business performance, the ______ perspective assumes that the strength of a corporate culture is related to a firm's long-term financial performance. A. market B. strength C. fit D. objective E. adaptive

answer

B strength

question

In which type of culture do employees adhere to the organization's values because they believe in its purpose? A. Fit B. Strategic C. Conditional D. Adaptive E. Strong

answer

E. Strong

question

The "HP Way" at Hewlett-Packard fostered a culture of integrity, teamwork, and innovation that complemented the high-technology industry of the time. This is an example of which perspective? A. Strength perspective B. Fit perspective C. Match perspective D. Conditional perspective E. Adaptive perspective

answer

B. Fit perspective

question

What cultural perspective assumes that the most effective cultures help organizations anticipate and adapt to environmental changes? A. Strength perspective B. Fit perspective C. Adjustment perspective D. Conditional perspective E. Adaptive perspective

answer

E. Adaptive perspective

question

Which of the following cultural perspectives leads to the highest long-term financial performance? A. Adaptive perspective B. Fit perspective C. Market perspective D. Conditional perspective E. Strength perspective

answer

E. Strength Perspective

question

Which of the following is the way culture becomes embedded in an organization? A. Writing a strategic plan. B. Performing competitive analysis. C. Using a teaching process. D. Conducting formal market research. E. Following legal requirements.

answer

C. Using a teaching process.

question

Which of the following is not one of the mechanisms used to embed culture into an organization? A. Slogans or sayings. B. Accounting practices. C. Leader reactions to crisis. D. Titles or bonuses. E. Organizational structure.

answer

B. Accounting practices.

question

Hiromi started a new job with a growing consulting firm and was surprised to find that most employees had no job titles. A coworker explained that the founders wanted to create a level playing field, allowing motivated employees to seek leadership roles on a project-by-project basis. No job titles, here, is an example of A. stabilizing structure. B. measuring activities. C. increasing accountability. D. embedding culture. E. reinforcing hierarchy.

answer

D. embedding culture.

question

A system of consciously coordinated activities or forces of two or more people is known as a(n) A. operation. B. culture. C. organization. D. structure. E. adhocracy.

answer

C. organization.

question

Which of the following is an example of a nonprofit organization? A. The Humane Society B. American Medical Association C. The Democratic party D. State Farm Insurance E. Teamsters Union

answer

A. The Humane Society

question

Goodwill Industries, a charity that provides training and employment services to the disabled, is which type of organization? A. Clan B. For-profit C. Mutual-benefit D. Nonprofit E. Market

answer

D. Nonprofit

question

Which of the following can be classified as a mutual-benefit organization? A. Trade association B. Hospital C. Financial company D. Retail company E. College

answer

A. Trade association

question

Which of the following is an example of a mutual-benefit organization? A. Federal Bureau of Investigation B. United Steelworkers of America union C. University of California at Berkeley D. U.S. Postal Service E. Public Broadcasting System

answer

B. United Steelworkers of America union

question

Another term for the chain of command within an organization, as represented on an organizational chart, is A. reporting linkage. B. span of control. C. horizontal specialization. D. vertical hierarchy. E. network structure.

answer

D. vertical hierarchy.

question

Which of the following statements is good advice for those transitioning upward in an organization? A. Don't try to manage upward or sideways. B. Invent your own kind of management style. C. Maintain good relationships with other departments. D. Enjoy the solitude of upper management positions. E. Focus on the rights and privileges of your new job.

answer

C. Maintain good relationships with other departments.

question

An organization's ______ is a control mechanism for making sure the right people do the right things at the right time. A. central command B. division of labor C. hierarchy of authority D. span of control E. strategic plan

answer

C. hierarchy of authority

question

Elizabeth works with the gaming production team at her job, so the leader of that group often assigns her work, but she also has a boss in the marketing department. Which of the following is most likely true? A. There is likely to be a lack of common purpose among her managers. B. Her workplace has too much division of labor. C. Her work arrangement violates the unity of command principle. D. Because of her cross-functional team, her work can be done without coordinated effort. E. Her production team leader has too wide a span of control.

answer

C. Her work arrangement violates the unity of command principle.

question

A supervisor of an assembly line has 45 employees that report to her; this would be considered a(n) ______ span of control. A. unsustainable B. tall C. deep D. complex E. wide

answer

E. wide

question

When managers must be closely involved with their subordinates, they should have a ______ span of control. A. flexible B. wide C. flat D. narrow E. lean

answer

D. narrow

question

__________ means that managers must report and justify work results to managers above them. A. Liability B. Accountability C. Delegation D. Hierarchical control E. Position power

answer

B. Accountability

question

The obligation you have to perform the tasks assigned to you is called A. responsibility. B. accountability. C. delegation. D. authority. E. position power.

answer

A. responsibility.

question

Good job design requires matching the level of responsibility to the level of A. liability. B. dependability. C. delegation. D. authority. E. position power.

answer

D. authority.

question

The process of assigning meaningful authority and responsibility to managers and employees lower in the hierarchy is called A. designation. B. accountability. C. delegation. D. execution. E. allocation.

answer

C. delegation.

question

Jennifer's staff enjoys working for her but thinks she is a perfectionist. She often thinks that she is the only one who can handle her division's difficult clients or handle some of the most sensitive issues, so she frequently has problems with A. responsibility. B. allocation. C. accountability. D. authority. E. delegation.

answer

E. delegation.

question

On an organizational chart, a dotted line typically indicates a(n) A. outside company. B. line position. C. staff position. D. temporary employee. E. nonmanagerial employee.

answer

C. staff position.

question

At Caldwell Organic Grocers, all purchasing, hiring, and production decisions are made by top management. Caldwell has ______ authority. A. classical B. wide C. centralized D. for-profit E. matrix

answer

C. centralized

question

Which of the following is a consequence of decentralized authority? A. Greater uniformity B. Decreased efficiency C. Greater flexibility D. Slower decisions E. Decreased duplication of work

answer

C. Greater flexibility

question

Organizational ________ is concerned with devising the optimal structures of accountability and responsibility that an organization uses to execute its strategies. A. design B. structure C. life cycle D. charting E. culture

answer

A. design

question

Which of the following is a characteristic of a simple structure? A. Comprehensive set of rules. B. Centralized authority. C. High work specialization. D. Extensive division of labor. E. Tall hierarchy.

answer

B. Centralized authority.

question

In a functional structure, people with ______ are grouped together. A. similar levels of authority B. temporary jobs on the same project C. similar occupational specialties D. jobs related to similar products E. jobs in the same geographic region

answer

C. similar occupational specialties

question

Among the jobs titles at Greensboro Regional Hospital are Chief of Medical Services, Director of Administrative Services, and Director of Outpatient Services. Greensboro has a ______ structure. A. functional B. network C. simple D. divisional E. matrix

answer

A. functional

question

_______ group activities around similar products or services. A. Output structures B. Matrix organizations C. Offering divisions D. Functional structures E. Product divisions

answer

E. Product divisions

question

The Federal Reserve Bank has 12 separate districts around the United States, which means it is using ______ in its organizational structure. A. functional constituencies B. locality divisions C. site networks D. geographic divisions E. matrix regions

answer

D. geographic divisions

question

Durant Security operates across Florida and Georgia with a variety of products and services. It has a unit located in Tampa that provides home security to its clients, and another unit in Atlanta that provides security for businesses, in particular banks and high-technology firms. This is a ______ structure. A. functional B. simple C. geographic divisional D. matrix E. customer divisional

answer

E. customer divisional

question

An organization that contains two command structures, and in which some people actually report to two bosses, is a ______ structure. A. matrix B. bifunctional C. team-based D. hybrid E. network

answer

A. matrix

question

Arnos Engineering has a functional structure throughout the company but also has a second chain of command based on the part of the United States where one works. This organization has a ______ structure. A. bifunctional B. hybrid C. network D. matrix E. team-based

answer

D. matrix

question

Galen is temporarily working with a group with membership from different departments in his company on a special project, yet he still has all of responsibilities of his regular job and still reports to the same manager. This is an example of A. matrix structure. B. work dispersion. C. horizontal design. D. hybrid workgroups. E. network clustering.

answer

C. horizontal design.

question

Hollow, modular, and virtual structures lead to a ________ organization. A. functional B. network C. simplistic D. boundaryless E. matrix

answer

D. boundaryless

question

With a ______ structure, the organization has a central core of key functions and outsources others to vendors who can do them cheaper or faster. A. hollow B. matrix C. spine D. hybrid E. mechanistic

answer

A. hollow

question

In a ______ structure, a firm assembles portions of product provided by outside contractors. A. compilation B. network C. outsourced D. modular E. hollow

answer

D. modular

question

Public relations firm Crowley Communications has a single full-time employee, Jolene Crowley, who is in charge of contracting teams to work on projects as needed. Teams are spread throughout the United States and are made up of specialists linked by computers and telecommunications equipment. This is an example of a(n) ________ organization. A. virtual B. network C. outsourced D. modular E. hollow

answer

A. virtual

question

Rashid has examined the environment in which his organization operates and has determined that currently the market demands an organic and integrated structure. Rashid did this as part of his A. environmental analysis. B. contingency design. C. life-cycle analysis. D. diversification plan. E. integration plan.

answer

B. contingency design.

question

In a mechanistic organization, A. most communication is informal. B. many teams and task forces are operating simultaneously. C. authority is decentralized. D. tasks and rules are clearly specified. E. employees are joined through technology.

answer

D. tasks and rules are clearly specified.

question

Rorschach Composites has precise requirements and very detailed procedures for creating small machine parts through an injection molding process. Because of the sensitive processes, employees are tightly monitored. Rorschach is a(n) ______ organization. A. hybrid B. integrated C. mechanistic D. flat E. organic

answer

C. mechanistic

question

In an organic organization, A. authority is centralized. B. bureaucracy is essential. C. the need to respond to unexpected tasks is common. D. many rules and procedures exist. E. success is possible only when the environment is stable.

answer

C. the need to respond to unexpected tasks is common.

question

Information-technology companies such as Motorola favor a(n) ______ structure because they constantly have to adjust to technological change. A. mechanistic B. bureaucratic C. formalized D. organic E. tall

answer

D. organic

question

Montpellier Mediterranean Designs has decided that, as part of the fashion industry, it should move to a more organic structure. Montpellier should A. simplify and eliminate rules and procedures. B. centralize authority. C. clearly define job responsibilities. D. disband teams and task forces. E. focus on improving uniformity.

answer

A. simplify and eliminate rules and procedures.

question

According to Lawrence and Lorsch, the ______ determine(s) the degree of differentiation or integration that is appropriate. A. resources available to an organization B. governmental pressures on an organization C. organization's culture D. stability of an organization's environment E. size of the organization

answer

D. stability of an organization's environment

question

Technical specialization and division of labor in an organization lead to ________ in an organization. A. bureaucracy B. differentiation C. integration D. conglomeration E. decentralization

answer

B. differentiation

question

Fonseca Construction Supply has product divisions for lumber, hardware, electrical supplies, and plumbing supplies. Each has its own production facility and sales staff. Fonseca is A. tightly integrated. B. bureaucratic. C. functionally organized. D. a matrix organization. E. highly differentiated.

answer

E. highly differentiated.

question

A formal chain of command, standardization of rules and procedures, and use of cross-functional teams enhance an organization's A. assimilation. B. differentiation. C. integration. D. decentralization. E. centralization.

answer

C. integration.

question

At Harvestar Farm Equipment, specialists from marketing, manufacturing, and engineering departments work closely together in cross-functional teams on new professional planting and harvesting equipment designs. Harvestar is an example of a ______ organization. A. highly differentiated B. centralized C. highly integrated D. mechanistic E. bureaucratic

answer

C. highly integrated

question

Management at the De la Garza Recreational Products has recognized that the firm is much slower than the competition at getting new designs to market. The problem seems to stem from coordination problems between the various functional departments involved in the recreational vehicle design process. De la Garza should A. improve technical training for employees. B. formalize the division of labor. C. relax its rules and procedures. D. create cross-functional teams for development. E. cancel all social events for employees.

answer

D. create cross-functional teams for development.

question

As an organization goes through the stages of the life cycle, it becomes more A. informal. B. centralized. C. unstable. D. organic. E. bureaucratic.

answer

E. bureaucratic.

question

Which of the following is a stage in the life of an organization? A. Birth B. Decline C. Elderly D. Introduction E. Growth

answer

A. Birth

question

Katsuro started a tax consulting business with his friend Carey. They have a small space in a strip mall and one administrative assistant. At which stage of the organizational life cycle is their business? A. Birth stage B. Introduction stage C. Adolescent stage D. Youth stage E. Midlife stage

answer

A. Birth stage

question

In what stage of the organizational life cycle does a firm increase its hiring, create some division of labor, and begin setting rules? A. Midlife B. Maturity C. Youth D. Growth E. Birth

answer

C. Youth

question

At which stage of the organizational life cycles does lack of flexibility and innovation become the danger to the business? A. Adult stage B. Birth stage C. Maturity stage D. Adolescent stage E. Youth stage

answer

C. Maturity stage

question

Xerox Corporation is currently in what stage of its organizational life cycle? A. Decline stage B. Maturity stage C. Adolescent stage D. Youth stage E. Adult stage

answer

B. Maturity stage

question

Xerox Corporation is currently in what stage of its organizational life cycle? A. Decline stage B. Maturity stage C. Adolescent stage D. Youth stage E. Adult stage

answer

B. Maturity stage

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