Exam 2 Flashcards
According to the video we watched, you know you have a real strategy (and not just a goal statement, an objective, or a marketing pitch) when you can answer these four questions. What are the four questions?
A.
What resources and capabilities do we utilize?
Where do we compete?
How do we sustain value?
What unique value do we bring?
T/F
The formal system of setting up task and reporting relationships that coordinates and motivates organizational members so they work together to achieve organizational goals is called developing an organizational structure
True
T/F
Group decision making is always better than individual decision making because it avoids a single persons prior hypothesis bias
False
Which four of these statements are valid reasons to do planning?
Planning is a useful way of getting managers to participate in decision making about the appropriate goals and strategies for an organization
Planning is necessary to give the organization a sense of direction and purpose, a unity of direction said Henri Fayol.
Planning can be used as a device for controlling managers and measuring staff’s results
Planning helps coordinate managers of the different functions and divisions of an organization
Which of the following are true about making satisficing decisions?
Satisficing is when a manager searches for and chooses an acceptable, or satisfactory response to their problem
Which of the following statements are true about non-programmed decision making?
Non-programmed decisions is used to address non-routine decisions that can occur in response to unpredictable threats
When a unique and new opportunity is presented to a company, they have to use non-programmed decision making because of too many unknowns
Rules do not exist on how to make a decision because the situation is unexpected so non-programmed decision making is the way to go.
T/F
When you have a diverse group of managers and they come together to make a good decision, that is called GroupThink.
False
One of the items listed below are not part of the items considered to be the available mechanisms of control when using Output Control as the manager’s organizational control system.
Management by Objectives
One of the three types of control processes organizations employ is called Output Control. Two of the most commonly used financial measurements of performance, as described by your instructor, are:
Profit Ratio
Return on Investment
Which of the following three statements are FALSE about time horizons when it comes to planning?
If a company does good short term planning, intermediate planning and long term planning is typically a useless exercise
When doing planning for small organizations in volatile markets, it is critical to do long term planning of 5 to 10 years in the future.
Once a long term 5 year plan has been developed, it only needs to be updated twice in a decade.
Someone who is in the direct chain of command, who has formal authority over people and resources of an area of the business that is the core purpose of the company, is called a staff manager.
False
What are three elements the text provides to explain why information is incomplete during decision making?
Uncertainty and Risk
Ambiguous Information
Time constraints and Information costs
Direct supervision is one of the most frequently used (and over used) methods of control. Which of the following three statements about direct supervision are true?
IT is very expensive because managers can personally manage only a relatively small number of subordinates effectively
It can demotivate subordinates if they feel they are under such close scrutiny that they are not free to make their own decisions
Along with detailed standard operation procedures, it is most frequently used for managing first level workers
When a manager designs a job, which three things of the following five items must be balanced to create an effective and efficient job?
Authority
Responsibility
Accountability
Which of the following items is NOT one of the things managers should allow when attempting to enrich a job?
Allowing workers to decide which corporate vision they should pursue
During the lecture, the instructor describes three things, which when workign together, creates a strong barrier to entry that will deter potential competitors. what are the three things that create a strong barrier to entry?
Brand Loyalty
Regulations, Patents, Copyrights
Economies of Scale
T/F
There are basically two types of decisions managers are paid to make, programmed decisions and non-programmed decisions. Mangers who are paid to make programmed decisions are generally paid more than managers who make non-programmed decisions.
FALSE
There is a clearly defined process a manager should use to create an effective control porcess. Place the following steps into proper order.
- Establish the standards of performance to be evaluated
- Measure actual performance
- Compare the actual performance against the standards
- Evaluate the result and initiate corrective action
There are several steps involved with creating plan. Which of the following are involved in the broad task of creating a plan?
Decide on the steps to take to move an organization from the status quo to the desired state
Discover where an organization is at the present time; determine the status quo
Decide on what the future state of that organization should be
When designing a job, job simplification and job enrichment are two things for a manager to consider. what is the third thing the text says a well schooled manager will take into consideration?
Job Enlargement
When organizations employ a matrix structure when designing a organizational strucuture, which of henri fayols principles are they violating?
Unity of Command
Henri Fayol, author of the 14 principles of management, had 4 items that he believed should be part of every good plan. What are the four items fayol indicated should be part of planning?
Managers need to make every attempt to collect and utilize all available information at their disposal
At any one time only one central, guiding plan is put into operation
Plans can be altered and changed if the situation changes
Planning is an ongoing process in which managers build and fefine previous plans and continually modify plans at all levels
