Management Test 2 Review – Flashcards
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Strategy
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a pattern of actions and resource allocations designed to achieve the organizations goals
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Which of the following is one of the six components of the strategic management process?
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Strategy implementation
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In the context of the strategic management process, the _____ is a clear and concise expression of an organization's basic purpose and the scope of its operations.
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Mission
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Resources
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are inputs to production that can be accumulated over time to enhance the performance of a firm
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In the context of resources, company reputation, culture, technical knowledge, and patents are examples of _____ assets.
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Intangible
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Benchmarking
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is the process of assessing how well one company's basic functions and skills compare with those of another company or set of companies
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Once a _____ is completed, managers can take advantage of available opportunities by capitalizing on the organization's strengths, neutralizing its weaknesses, and countering potential threats.
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SWOT analysis
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Vertical integration
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refers to the acquisition or development of new businesses that produce parts or components of the organization's process
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Which of the following is one of the four categories of business in the BCG matrix?
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Cash Cows
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A competitive advantage typically results from a low-cost business strategy or a(n) _____ business strategy.
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differentiation
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Satisficing
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is choosing the first option that is minimally acceptable or adequate
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illusion of control
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refers to a belief that one can influence events even when one has no control over what will happen.
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Discounting the future
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refers to a bias weighing short term costs and benefits more heavily than long term costs and benefits
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Which of the following is a potential advantage of using a group to make a decision?
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participation in problem solving increases commitment to decisions
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In the context of decision making, what is the role of a devil's advocate in constructive conflict?
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to criticize and point out problems
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How can constructive conflict improve group decision making?
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It increases the knowledge and diverse viewpoints that individuals bring to the group.
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The strategic management process has six steps:
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(1) establishment of mission, vision, and goals; (2) analysis of external opportunities and threats; (3) analysis of internal strengths and weaknesses; (4) SWOT analysis and strategy formulation; (5) strategy implementation; and (6) strategic control.
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There are four categories of businesses in the BCG matrix:
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question marks, stars, cash cows, and dogs. Cash cows are low-growth businesses with a strong competitive position that generate revenues in excess of their investment needs, so they fund other businesses.
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Gerard realizes that the availability of appliances with embedded computer chips is low in the market. Hence, he uses this lucrative opportunity and sets up a store that sells appliances with embedded computer chips exclusively. Which of the following is Gerard engaging in?
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entrepreneurship
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entrepreneurship
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Entrepreneurship occurs when an enterprising individual pursues a lucrative opportunity under conditions of uncertainty.
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entrepreneurship
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involves creating new systems, resources, or processes to produce new goods or services/ and or service new markets
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A difference between entrepreneurs and intrapreneurs is
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the presences or absence of corporate support Independent entrepreneurs are individuals who establish a new organization without the benefit of corporate support. Intrapreneurs are new venture creators working inside big companies; they are corporate entrepreneurs, using their company's resources to build a profitable line of business based on a fresh new idea.
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Which of the following individuals is most likely to become a successful entrepreneur?
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Nigel enjoys challenges, has a strong social network, has good knowledge of management techniques, and possesses excellent business skills.
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successful entrepreneurs
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are innovators and also have good knowledge and skills in management, business, and networking. In contrast, inventors may be highly creative but often lack the skills to turn their ideas into a successful business.
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Which of the following is the difference between inventors and entrepreneurs?
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Entrepreneurs have good knowledge and skills in management, business, and networking, whereas inventors lack such skills.
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To meet the medical needs of a growing population of aged people, there has been an increase in entrepreneurial ventures specific for different medical problems of the aged. Which of the following types of opportunity does this exemplify?
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demographic changes
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An entrepreneurial alliance between an innovator who has created at least one successful store and wants to grow and a partner who manages a new store of the same type in a new location is known as
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franchising
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The difference between the transaction fee and intermediary models of e-commerce is that the transaction fee model charges a fee
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for goods and services while the intermediary model charges a fee to bring buyers and sellers together.
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Which of the following qualities makes it most likely for an entrepreneur to succeed?
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opportunity obsession
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one is more likely to succeed as an entrepreneur if one has certain characteristics:
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commitment and determination; leadership; opportunity obsession; tolerance of risk, ambiguity, and uncertainty; creativity, self-reliance, and ability to adapt; motivation to excel.
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Which of the following entrepreneurial ventures is an example of low innovation and high risk?
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An American restaurant serving burgers and fries
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What is the role of the economic environment in the success of entrepreneurial ventures?
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Increases in the money supply and the supply of bank loans lead to improved prospects and increased sources of capital.
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What is the role of business incubators?
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they provide a protected environment for new and small businesses Business incubators, often located in industrial parks or abandoned factories, are protected environments for new, small businesses.
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Which of the following is true of common management challenges faced by entrepreneurs?
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Going global creates challenges that can make survival difficult for a young company.
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initial public offering
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The sale to the public, for the first time, of federally registered and underwritten shares of stock in a company
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business plan
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focuses on an entire venture and describes all the elements involved in starting it. It often has functional plans for marketing, finance, manufacturing, and human resources.
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In the context of key planning elements, which of the following is true of what venture capital firms consider important for an entrepreneurial venture?
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They believe that what counts is a person's ability to execute an idea.
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Legitimacy (in the minds of the public increases the probability of success of a new business by)
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helping a firm acquire other resources such as top managers, good employers, and govt. support
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Social capital
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a competitive advantage in the form of relationships with other people and the image other people have of an entrepreneur
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In the skunk works approach to corporate innovation
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risk takers are not punished for taking risks and failing—their former jobs are held for them. The risk takers also have the opportunity to earn large rewards.
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The tendency of an organization to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services is known as
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entrepreneurial orientation.
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Organic organization
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depends heavily on an informal structure of employee networks Astute managers are keenly aware of these interactions, and they encourage employees to work more as teammates than as subordinates who take orders from the boss.
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In a mechanistic org:
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the source of guidance is rules.
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in an Organic org:
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the source of guidance is personal judgement
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Mechanistic org
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a formal structure intended to promote internal efficiency
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Organic structure:
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is much less rigid and emphasizes flexibility
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Which of the following is a characteristic of a mechanistic organization?
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obedience to authority as an expression of commitment
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In which of the following conditions should the span of control be wide within an organization?
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Subordinates prefer autonomy to close supervisory control
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The span of control should be wide when:
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(1) the work is clearly defined and unambiguous, (2) subordinates are highly trained and have access to information, (3) the manager is highly capable and supportive, (4) jobs are similar and performance measures are comparable, and (5) subordinates prefer autonomy to close supervisory control. If the opposite conditions exist, a narrow span of control may be more appropriate
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delegation
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entails getting work done through others (vertical structure)
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Line departments
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make things, sell things or provide customer service. (horizontal structure)
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Staff departments
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are those that provide specialized or professional skills that support line departments. They include research, legal, accounting, public relations, and human resource departments.
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disadvantage of the traditional functional approach of departmentalization:
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communication between functions may fall off due to conflicts.
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disadvantage of the PRODUCT approach to departmentalization:
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the duplication of effort is expensive. In the departmentalization approach functions are not centralized at headquarters.
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disadvantage of the matrix org:
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too much democracy can lead to not enough action. The mistaken belief can arise that matrix management is the same thing as group decision making—in other words, everyone must be consulted for every decision; this can lead to slower decision making. And too much democracy can lead to not enough action.
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Network organization
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managers within the org interact closely with members outside it. In a network org, the normal boundary of the org becomes blurred or porous as managers within the org interact closely with network members outside it.
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coordination by plan
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allows interdependent units to modify and adapt their actions as long as they meet the deadlines and target required for working with others. Does not require the same high degree of stability and routinization for coordination by standardization.
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To cope with high uncertainty and heavy information demands, managers can use two general strategies:
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- reduce the need for information - increase its information processing capability
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strategic alliance
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individual organization share administrative authority, form social links, and accept joint ownership.
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Survivor's syndrome
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they display a phenomena where after downsizing, employees who keep their jobs struggle with heavier workloads and become risk averse, self absorbed, and narrow minded.
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Small batch organization
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there are few rules and formal procedures, the staff tends to make their own decisions. Structure tends to be very organic. Decision making tends to be decentralized. The emphasis is on mutual adjustment among people.
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lean manufacturing
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the emphasis is on quality, speed, and flexibility more than on cost, efficiency and hierarchy. If an employee spots a problem, the employee is authorized to halt the operation and signal for help to correct the problem at its source so that processes can be improved and future problems avoided.
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just-in-time
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a system that calls for sub assemblies and components to be manufactured in very small lost and delivered to the next stage of the production process as they are needed.
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Human resources
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focuses on activities that attract, develop, and motivate people at work - which are fundamental aspects of organizational and managerial life.
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Legislation
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is an activity that is conducted during the human resources environmental scanning process.
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HRM environmental scanning
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is part of the planning process and includes labor markets, technology, legislation, competition, and economy.
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Retraining downsized workers:
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is an approach to increasing the workforce labor pool.
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If an org. needs more people than they currently have (a labor deficit) they can:
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- hire new employees - promote current employees to new positions - outsource work to contractors
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Job analysis
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helps increase the value added by employees to the organization (because it clarifies what is required to perform effectively)
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Which of the following is a function of a job analysis?
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to describe the skills and knowledge needed
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Job analysis does two things:
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First, it tells the HR manager about the job itself: the essential tasks, duties, and responsibilities involved in performing the job. This information is called a job description. Second, job analysis describes the skills, knowledge, abilities, and other characteristics needed to perform the job. This is called the job specification.
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Advantage of external recruiting:
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it inspires innovation.
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Many companies that rely heavily on internal recruiting use a(n) _____ system to advertise open positions, and this includes a list of duties and the minimum skills and experience required.
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job-posting
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advantage of using word of mouth recommendation to fill a job position:
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employees tend to know who will be a good fit with the organization. Surveys show that word-of-mouth recommendations are the way most job positions get filled. Not only is this method relatively inexpensive, but employees also tend to know who will be a good fit with the company.
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Applications and resumes
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provide basic info that help prospective employers choose candidates. Helps prospective employers make a first cut.
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Unstructured interviews
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ask different interviewees different questions. The interviewer may also use probes—that is, ask follow-up questions to learn more about the candidate.
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background check
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involves Social Security verification, a criminal records check, and past employment and education verification
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Cognitive ability tests
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measure a range of intellectual abilities, including verbal comprehension (vocabulary, reading) and numerical aptitude (mathematical calculations)
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Reliability
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in the context of selection methods, refers to the consistency of test scores over time and across alternative measurements.
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adverse impact
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A seemingly neutral employment practice that has a disproportionately negative effect on a group protected by the Civil Rights Act is known as One common reason why employers are sued for discrimination is adverse impact—when a seemingly neutral employment practice has a disproportionately negative effect on a group protected by the Civil Rights Act.
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development
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involves teaching managers and professional employers broader skills needed for their present and future jobs.
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Training
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usually refers to teaching lower level employees how to perform their present jobs
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in a 360 degree appraisal
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feedback is obtained from subordinates, peers, and superiors—every level involved with the employee.
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employees are given credits, which they "spend" by selecting medical and dental insurance, dependent care, life insurance, and so on.
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flexible benefit programs
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formalization
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the presence of rules and regulations governing how people in the org interact
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