Exam 2

Question 1

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?

Answer 1

A.
What resources and capabilities do we utilize?

Where do we compete?

How do we sustain value?

What unique value do we bring?

Question 2

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

Answer 2

True

Question 3

T/F
Group decision making is always better than individual decision making because it avoids a single persons prior hypothesis bias

Answer 3

False

Question 4

Which four of these statements are valid reasons to do planning?

Answer 4

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

Question 5

Which of the following are true about making satisficing decisions?

Answer 5

Satisficing is when a manager searches for and chooses an acceptable, or satisfactory response to their problem

Question 6

Which of the following statements are true about non-programmed decision making?

Answer 6

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.

Question 7

T/F

When you have a diverse group of managers and they come together to make a good decision, that is called GroupThink.

Answer 7

False

Question 8

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.

Answer 8

Management by Objectives

Question 9

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:

Answer 9

Profit Ratio

Return on Investment

Question 10

Which of the following three statements are FALSE about time horizons when it comes to planning?

Answer 10

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.

Question 11

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.

Answer 11

False

Question 12

What are three elements the text provides to explain why information is incomplete during decision making?

Answer 12

Uncertainty and Risk

Ambiguous Information

Time constraints and Information costs

Question 13

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?

Answer 13

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

Question 14

When a manager designs a job, which three things of the following five items must be balanced to create an effective and efficient job?

Answer 14

Authority
Responsibility
Accountability

Question 15

Which of the following items is NOT one of the things managers should allow when attempting to enrich a job?

Answer 15

Allowing workers to decide which corporate vision they should pursue

Question 16

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?

Answer 16

Brand Loyalty
Regulations, Patents, Copyrights

Economies of Scale

Question 17

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.

Answer 17

FALSE

Question 18

There is a clearly defined process a manager should use to create an effective control porcess. Place the following steps into proper order.

Answer 18

1. Establish the standards of performance to be evaluated
2. Measure actual performance
3. Compare the actual performance against the standards
4. Evaluate the result and initiate corrective action

Question 19

There are several steps involved with creating plan. Which of the following are involved in the broad task of creating a plan?

Answer 19

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

Question 20

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?

Answer 20

Job Enlargement

Question 21

When organizations employ a matrix structure when designing a organizational strucuture, which of henri fayols principles are they violating?

Answer 21

Unity of Command

Question 22

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?

Answer 22

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