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Managment Ohio University

Exam 2 : chapters 6-10 Professor: Marcus Fila
STUDY
PLAY
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.
Strategy
Effective strategic management involves ?
Managers all parts of the organization.
What about strategic planning and strategic management is true?
Both should be implemented because they can provide direction and momentum.
Not an area a company needs to get/stay ahead in order to sustain a competitive advantage?
Talented Employees
What about strategy and strategic positioning is false?
Few customers with narrow needs can be a source of strategic position.
A small firm is likely to benefit significantly from strategic planning....
a very competitive industry
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
how many competitors he has.
Which steps of the strategic-management process is the source of its feedback loop
Maintain strategic control
What should be included in a good vision statement
Firm's standards of excellence and high ideals.
The common grand strategies are
growth, stability, and defensive.
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?
Growth
A grand strategy that involves reduction in the organization's efforts is the ______ strategy
retrenchment
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?
Defense
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
defense
Actively selling strategic plans to middle and supervisory managers, rather than just announcing them, is helpful for
Strategy implemetation
What is not one of Bryan Barry's recommendations to keep a strategic plan on track?
Avoid compromise
What is not a likely source of information for competitive intelligence
Competitor's customer records
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
enviromental scanning
When analyzing the "S" in a SWOT analysis, a manager might take note of
strong financial resources of the firm.
When analyzing the "O" in SWOT analysis, a manager might take note of
favorable government regulations.
Analysis of changing demographics of the U.S. population would be part of the assessment of a company's
opportunities or threats depending on the outcome of the analysis.
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
weaknesses
Environmental factors that the organization may exploit for a competitive advantage are known as
organizational opportunities
A vision or projection of the future is called a(n)
forcast
Creation of alternative hypothetical but equally likely future conditions is called
contengecy Planning
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?
Threats of substitute products and services
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.
cost leadership
A firm that pursues a differentiation strategy is
Bic
An org. that keeps costs/prices low in targeting a narrow market is pursuing a strategy of
cost focus
What carmakers pursues a focused-differentiation strategy?
Ferrari
Time Warner runs different divisions specializing in television, music, and publishing. Time Warner is using a(n) ______ strategy.
diversification
__________ 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.
Synergy
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 ....
cash cow
Top concern among CEOs worldwide is
excellence in execution
According to Bossidy and Charan, which business process is most important for effective execution
People
What is not a behavior of a leader who executes?
Respect others' limitations.
What is a step in the rational decision-making model?
Identify the problem or opportunity
Diagnosis is used in which stage of the rational decision-making model?
Identify the problem or opportunity
In decision making, answering yes to what questions should cause you to reconsider choosing it?
Do you consider it merely "good enough"?
What is NOT a recommended option when you "discover that an action" is not working after a decision
Abandon the solution in favor of the status quo
What's one of the nonrational models of decision making
Satisficing
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
bounded rationality
What's NOT a hindrance to perfectly rational decision making
Lack of intuition
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.
incremental
Making a choice without the use of "conscious thought" or logical interference is called
intuition
What's NOT a reason why it is "hard to bring the best evidence" to bear on your decisions?
The evidence leads to an unethical solution.
What's a characteristic of companies that use analytics
Use of predictive modeling
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
high tolerance for ambiguity.
A decision-making style based on the dimensions of "value orientation" and tolerance for ambiguity?
behavioral
A person with a conceptual decision-making style is __________ in her value orientation and __________ in her tolerance for ambiguity.
people/social; high
A person who is oriented "toward task" and technical concerns and has a low tolerance for ambiguity is ______ in his decision-making style.
directive
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.
analytical
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
behavioral.
A graph of decisions and their possible consequences is known as a(n)
decision tree
What questions about a proposed action is NOT a key question in Bagley's ethical decision tree?
Should the effect of it be disclosed to shareholders
When a manager decides to "take no action" in the belief that there will be no great negative consequences, she is engaged in
relaxed avoidance
Which response to a challenge would be considered most like satisficing?
Relaxed change
"Passing the buck" or procrastinating about a decision are examples of which type of reaction to a challenge?
Defensive avoidance
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.
panic
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
heuristics
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.
availability
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.
representativeness
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)
anchoring and adjustment bias
The tendency for decision-makers to be" influenced by the way a problem is presented" to them is known as the ________ bias.
framing
The idea that decision makers find the "notion of an actual loss more painfu"l than giving up the possibility of a gain is called
the prospect theory
A disadvantage of group decision making
Satisficing
The tendency of a group to settle on a decision that is "good enough" is called
Satisficing
The ______ a group is, the ______ the quality of the decision
larger;lower
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
the members have common knowledge
A practical guideline in determining whether to use group decision making?
When it can increase development
Research on the effects of participative management (PM) on employees' performance and satisfaction indicates that
has a small positive effect on both
NOT a rule for brainstorming suggested by IDEO
Go for quality over quantity
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 group-driven computer-aided system
According to productivity expert Odette Pollar, which should a manager delegate?
Tasks that challenge subordinates.
Not a description of organizational culture?
A system of "reporting relationships"
Type of culture that has an "internal focus" and values stability and control over flexibility?
Hierarchy
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.
clan
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?
basic assumptions
______ values are the explicitly stated values and norms preferred by an organization.
Espoused
Not a device through which culture is typically transmitted to employees?
strategic plan
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
story
The activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life are known as
rites and rituals
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.
strength
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?
fit perspective
What cultural perspectives leads to the "highest long-term' financial performance?
adaptive perspective
What is not one of the mechanisms used to "embed culture" into an organization?
Accounting practices.
A system of consciously coordinated activities/forces of two or more people is known as a
organization
Goodwill Industries, a charity that provides training and employment services to the disabled, is which type of organization?
nonprofit
Example of a mutual-benefit organization
United Steelworkers of America union
What's good advice for those transitioning upward in an organization?
Maintain good relationships with other departments.
An organization's ______ is a "control mechanism" for making sure the right people do the right things at the right time.
hierarchy of authority
A supervisor of an assembly line has 45 employees that report to her; this would be considered a(n) ______ span of control.
wide
__________ means that managers must report and justify work results to managers above them.
accoutability
Good job design requires matching the level of responsibility to the level of
authority
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
delegation
At Caldwell Organic Grocers, all purchasing, hiring, and production decisions are made by top management. Caldwell has ______ authority
centralized
Organizational ________ is concerned with devising the optimal structures of accountability and responsibility that an organization uses to execute its strategies.
design
In a functional structure, people with ______ are grouped together
similar occupational specialties
_______ group activities around similar products or services.
Product divisions
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.
customer division
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.
matrix
Hollow, modular, and virtual structures lead to a ________ organization
boundaryless
In a ______ structure, a firm assembles portions of product provided by outside contractors.
modular
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
contingency design
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.
mechanistic
Information-technology companies such as Motorola favor a(n) ______ structure because they constantly have to adjust to technological change.
organic
According to Lawrence and Lorsch, the ______ determine(s) the degree of differentiation or integration that is appropriate.
stability of an organization's environment
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
highly differentiated.
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.
highly integrated
As an organization goes through the stages of the life cycle, it becomes more
bureaucratic
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?
birth stage
At which stage of the organizational life cycles does lack of flexibility and innovation become the danger to the business?
Maturity Stage
What's not a recommended way to stand out in a new job
underpromise
The strategic human resource management process includes which of these
Orient, train, and develop.
The economic or productive potential of employee knowledge and actions is called
human capital
The purpose of the strategic human resource process is to
get optimal work performance to help realize company's mission and vision.
Susan had been working as an executive assistant to the president for nearly 20 years, so when she retired no one had a good idea of all that her job entailed. Before she left, Ben sat with her for two weeks to observe her duties and ask her the details of all functions. Ben was performing a
job analysis
In considering the staffing an organization might need in the future, human resource managers should
understand the organization's vision and strategy and hire to support them.
Gwen, an HR manager, was using reports from the U.S. Bureau of Labor Statistics and the U.S. Census Bureau for information about her industry's labor pool in her geographic area. Gwen is planning to
recruit from outside the organization.
After being referred by a friend, Hasina attended a job interview. She didn't feel it went well but was surprised when her friend told her the boss didn't like that she had worn her hijab, a traditional headscarf. The boss told a coworker after the interview, "Our customers prefer working with Christians." This is an example of
discrimination
If a firm gives all international assignments to people without disabilities, assuming they will therefore not require special accommodations, which type of workplace discrimination has occurred
Disparate treatment
What statements about sexual harassment is true
A person who feels he or she must acquiesce to a sexual proposition in order to keep his or her job is facing a quid pro quo
The process of locating and attracting qualified applicants for jobs open in the organization is called
recruiting
What external recruiting methods works best
Employee referrals
When Jake became one of three final candidates for a managerial position with a large medical supply company, the director of the department scheduled a special meeting with him. There, the two talked about the stressful deadlines and heavy travel required of the position, as well as the great compensation and multiple perks. Jake appreciated that the director took time to conduct a(n)
realistic job preview.
The type of interview that is most likely to cause managers problems because of its potential for bias and questionable legality is the
unstructured interview.
What's a good suggestion for managers when conducting interviews?
After the interview write a short report with a quantitative score of the candidate's qualifications.
The Myers-Briggs Type Indicator is considered a(n) ______ test
personality
The degree to which a test measures the same thing consistently is known as its
reliability
Emilio, an HR manager, had a meeting with the director of operations to determine if the new training program appears to be effective in improving productivity on the shop floor. Tracy is performing which step of the training process?
evaluation
Keri, an HR manager, is designing a training class for those working on the new cross-functional teams within her company. This class that is aimed at improving group decision making. What method of delivery should she choose?
Role-play
What is a form of off-the-job training
Classroom instruction
MBO is consistent with a(n) ______ performance appraisal
objective
The type of appraisal that is most subject to validity problems due to evaluator bias is the ______ appraisal
trait
The type of performance appraisal that judges specific, observable aspects of performance like being on time for work is a(n) ______ appraisal
behavioral
A feedback technique in which an employee is appraised by her boss, peers, subordinates, and possibly clients is called a(n)
360-degree appraisal
A performance review system in which all employees within a business unit are ranked against one another is known as a
forced ranking
The point of the performance appraisal is to
stimulate better job performance
What's the best statement of feedback?
"Your last report contained seven errors which I think you could improve."
An example of an employee benefit?
Education reimbursements
What's not a characteristic of a successful incentive pay plan?
Complex and comprehensive rules
In considering a promotion for a subordinate, a manager must ensure fairness and
nondiscrimination
If employees have been dismissed "for cause," this means that
they are being fired for their job performance.
______ means that anyone can be "dismissed at any time" for any reason at all, or for no reason.
Employment at will
_______ are organizations of employees formed "to protect" and advance their members' interests by bargaining with management over job-related issues.
labor unions
Bethany had a starring role in a film that was shot in her hometown of Baton Rouge, Louisiana. Though the Screen Actors Guild, an actors' union, exists in Louisiana, Bethany was not required to join it because of the state's ________ law.
right-to-work
In 2009, the United Auto Workers union negotiated with Ford Motor Company a variety of ________, such as a $1/hour pay decrease and changes to overtime structure, designed to prevent Ford from declaring bankruptcy.
givebacks
According to Jim Collins, undisciplined pursuit of more and grasping for salvation are stages of organizational
decline
A change that is made in response to arising problems or opportunities is called
reactive change
Walmart's implementation of RFID, a type of technology that allows it to improve inventory tracking, is an example of a(n) ______ change
proactive
The increasing diversity of the American workforce is an example of a(n) ______ force for change
demographic
Arizona Pottery is having a difficult time finding inexpensive labor, which it attributes to an unfriendly climate toward Hispanics since passage of tough illegal immigration legislation in that state. This is an example of a(n) ______ force for change
social or political
During the recession and its accompanying high levels of unemployment, Giordano Construction has had its choice of employees to support its growth. This is an example of a(n) ______ force for change.
market
Which is not an inside force that indicates organizational change might be needed?
Increased competition
The Human Resources manager at the Apex Golf and Tennis Club has just calculated the employee absenteeism rate for 2012, and it is 25% higher than it was in 2010 and 2011. He should
address job design and ways to deal with work overload.
Employees might feel they are being underpaid for what they do, even if pay and benefits are superior to the competition. Here, managers must change
perceptions
Saitou Insurance is about to install a new computer system that will change the way claims adjusters settle claims. Adjusters will be able to do the adjustment and issue the check right at the scene of the accident. Saitou most likely needs to focus on changing employee
skills
Managers at Lucky Peach magazine are in the process of cross training entry-level employees to be able to take phone orders or answer customer questions, and to process orders in overflow situations. The company is changing its
skills
The record industry has been forced into a ______ change because of the prevalence and ease of illegally downloading music.
strategy
Which is not an interacting factor that affects the level of resistance to change?
Longevity of the change agent
Employees are likely to see an adaptive change as
least threatening.
Peter, the owner and lead accountant at a tax preparation firm, is changing the work schedule of his long-term employees for the months of March and April, the company's busiest time. He is requiring work on weekends for everyone, using the same basic schedule as last year. Peter should expect that his employees will be
hardly upset or not upset at all.
An innovative change involves ______ complexity, cost, and uncertainty.
moderate
Introducing a practice that is new to the industry is called a(n) ______ change
radically innovative
Which is not a leading reason that employees resist change
Lack of personal ethics
During Lewin's changing stage, managers should
give employees new models for behavior.
The process by which a company compares its performance with that of high-performing organizations is called
benchmarking
Kotter proposed which of the following for organization change?
8 steps for leading organizational change.
Organizational development is often put into practice by a
change agent.
In which of the following situations would OD techniques be the most helpful?
Assisting employees in dealing with stressful situations.
The question "What shall we do about the problem?" would most likely be asked during the ______ stage of OD.
intervention
Marc, an OD consultant, is visiting Cassidy Engineering a year after he assisted them in making changes to their employee incentive plan. Now he is comparing sales and turnover data from the last three years to the current year. Marc is in the ______ stage of OD.
evaluation
When it comes to failure in the innovation process, Procter & Gamble CEO A. G. Lafley suggests that the key is to
fail early, fail cheaply, and don't make the same mistake twice.
Which of the following is not one of Scott Berkun's seeds of innovation for organizations?
Philanthropy
A(n) ______ innovation is a change in the way a product or service is conceived, manufactured, or disseminated.
process
The management department at a local university began posting all assignments and other class materials to a course management website instead of creating a packet for students to purchase each term. This is a(n) ______ innovation.
process
Researchers working on hydrogen fuel cells hope that this could be a(n) ______ innovation, leading to a clean, renewable energy source, and reducing dependence on depleting fossil fuels with their adverse impact on the global environment
radical
What is not a way to encourage innovation?
Withholding raises and promotions when innovation attempts don't work out.
What sequences best describes how a manager can foster innovation in an organization?
Recognize problems, gain allies, overcome resistance, execute well