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MGT 3200 Exam 1 Latest Update
Which of the following is true concerning effectiveness and efficiency? 1.Efficiency is concerned with doing the right thing at the right time. 2.The more a company wants to be effective the easier it is for the company to be efficient. 3.Efficiency is a guarantee of effectiveness. 4.Effectiveness is concerned with minimizing resource costs. 5.Efficient organizations tend to be effective ones as well. - Answer 5. Efficient organizations tend to be effective ones as well Bob, senior technical leader at Ford Motor Company, stated in late 2019 that the while the overall cost of the batteries for Ford's electric vehicle (EV) line has remained constant, the cost/per mile of range of these batteries was decreasing. In fact, the driving range of these batteries was passing a critical driving range threshold ( miles) for customers, increasing customer confidence in the vehicles (vehicles are becoming more attractive to consumers). From the facts presented, the batteries are becoming _______ efficient and leading to _________ effectiveness for the EV line. 1.less; increased 2.less; decreased 3.more; decreased 4.more; increased - Answer 4. more; increased Which of the following is NOT true concerning the Industrial Revolution? 1.There was an enormous increase in productivity. 2.The skills of the craftsmen were transferred to the machines. 3.The increase in demand required the switch from owner/manager to professional manager. 4.Prices for goods increased as a result. - Answer 4. Prices for goods increased as a result Which level of management has at its primary functions, interpreting and integrating? 1.First-line management
2.Middle management 3.Top management 4.All of the above - Answer 2. Middle management Which of the following managers do not manage other managers? 1.Top managers 2.Middle managers 3.First-line managers 4.All of the above. - Answer 3. First-line managers Which level of management is concerned with developing the strategy for the organization? 1.1st-line 2.Middle 3.Top 4.All of the above. - Answer 3. Top Which of the following issues are associated with first-line management? 1.First-line managers are often promoted based primarily on their technical skills. 2.First-line managers are often placed into management without the benefit of training. 3.First-line managers often learn how to manage by observing their managers. 4.First-line managers are often confronted with the choice between friendship and accountability. 5.All of the above. - Answer 5. All of the above Which of the following is NOT true concerning corporate downsizing? 1.Management levels are eliminated. 2.Managers who remain after downsizing are asked to do more. 3.Staff management jobs are outsourced to consulting firms. 4.Information systems and technologies are implemented. 5.It's primarily effectiveness-oriented. - Answer 5. It's primarily effectiveness-oriented Which level of management has been most adversely affected by corporate downsizing?
All of the above; line managers are located at every level of management At what level of management are staff managers typically located? 1.First-line 2.Middle 3.Top 4.All of the above; staff managers are located at every level of management. - Answer 2. Middle Tiffany is a production supervisor at Hyundai's assembly plant in Huntsville, Alabama. She recently has been spending a lot of her time orienting and training new production line employees that she just hired. On which of the following functions of management does Tiffany spend the majority of her time? 1.Planning 2.Organizing 3.Staffing 4.Leading 5.Controlling - Answer 3. Staffing In the previous example, Tiffany is a _______ manager and a _____ manager. 1.general; staff 2.functional; line 3.functional; staff 4.general; line - Answer 2. functional; line Which function of management is concerned with concepts of division of labor and coordination? 1.Planning 2.Organizing 3.Staffing 4.Leading 5.Controlling - Answer 2. Organizing Which of the following pairs of management functions represents the conjoined twins of
management? 1.Organizing and Staffing 2.Planning and Organizing 3.Staffing and Leading 4.Planning and Controlling 5.Leading and Controlling - Answer 4. Planning and Controlling Which of the following functions of management are performed by top managers? 1.Planning 2.Organizing 3.Staffing 4.Leading 5.Controlling 6.All of the above. - Answer 6. All of the above On which of the following functions of management do 1st-line managers spend the most time? 1.Planning 2.Organizing 3.Staffing 4.Leading 5.First-line managers spend an equal amount of time on both staffing and leading. - Answer 5. First-line managers spend an equal amount of time on both staffing and leading When a business is just starting up, the functions of management are performed ______ and when the business is up and running, the functions of management are performed ______. 1.simultaneously; sequentially 2.simultaneously; simultaneously 3.sequentially; sequentially 4.sequentially; simultaneously - Answer 4. sequentially; simultaneously
manager's influence was focused upward. 5.All of the above. - Answer 3. promotions were not based on performance
Successful managers in Luthans' (1988) study spent the majority of their time on what activity? 1.Traditional management 2.Communication 3.Human Resource Management 4.Networking - Answer 4. Networking
Which of the following managers is more likely to face the "Peter Principle"? 1.Effective Managers 2.Successful Managers 3.Managers who are both effective and successful. 4.None of the above; the Peter Principle has no relevance to the study of effective and successful managers. - Answer 2. Successful Managers
Which of the following pairs of environmental components represent the organization's two major dependencies? 1.Technology and competitors. 2.Customers and competitors. 3.Technology and customers. 4.Customers and suppliers. 5.Suppliers and competitors. - Answer 4. Customers and suppliers
The feedback loop associated with cyclical nature of the transformation process relates most closely to which function of management? 1.Planning 2.Organizing
3.Staffing 4.Leading 5.Controlling - Answer 5. Controlling
When an organization engages in a turnaround strategy due to declining performance, this is an example of _________. 1.buffering the technical core 2.equifinality 3.negative entropy 4.role differentiation and specialization 5.cyclical nature of the transformation process - Answer 3. negative entropy
Which of the following is true concerning the open system concept of buffering the technical core? 1.It is concerned primarily with effectiveness. 2.It is focused on protecting the research and development process. 3.It refers to maintaining stability in the transformation process. 4.It allows for little to no change in the production process. - Answer 3. If refers to maintaining stability in the transformation process
Role differentiation and specialization in an organization ____________. 1.decrease as the organization's size increases 2.make an organization less efficient 3.help an organization deal with troublesome aspects of the external environment 4.all of the above - Answer 3. help an organization deal with troublesome aspects of the external environment
Which of the following open system characteristics is synonymous with teamwork? 1.Equifinality
1.It's an information gathering process. 2.It's primarily the job of top management. 3.It provides the foundation for strategic planning. 4.Its outcome is the clear identification of threats and opportunities. 5.All of the above. - Answer 5. All of the above
In which of the following areas can customers put pressure on a business organization? 1.Prices 2.Service 3.Quality 4.All of the above. 5.Only 2 and 3. - Answer 4. All of the above
According to a February 2020 Bloomberg article, Ford Credit, the financing arm of Ford Motor Company, is generating nearly half of Ford's overall profit up from 15-20% in years past. Ford Credit provides loans to dealers who stock vehicles and customers who buy them. This is an excellent example of ___________. 1.the power of the customer 2.the power of the supplier 3.the joint product/service focus 4.environmental scanning 5.the watchword with customers being quality - Answer 3. the joint product/service focus
According to TQM experts, how much more does it cost to find a new customer than to keep an old one?
- 2 times as much
- 3 times as much
- 5 times as much
- 10 times as much - Answer 3. 5 times as much
Which of the following is NOT a way to provide superior customer service? 1.Make it difficult to complain. 2.Make a timely, personal response to the complaint. 3.Make sure your response to the problem is effective. 4.Make sure your employees are satisfied. - Answer 1. Make it difficult to complain
Which of the following pairs represent the lowest and the highest level of customer service, respectively, according to Buckingham and Coffman? 1.Availability; Partnership 2.Accuracy; Advice 3.Availability; Advice 4.Accuracy; Partnership 5.Accuracy; Availability - Answer 2. Accuracy; Advice
A negative supplier relationship can lead to _________. 1.a higher price for the resource 2.a lower quality resource 3.delayed delivery of the resource 4.all of the above 5.only 1 and 2 - Answer 4. all of the above
Which of the following is NOT a way of partnering with one's suppliers? 1.Vertical integration. 2.Locking in long-term contracts for the resource. 3.Increasing the number of suppliers for a specific resource.
Which of the following is NOT true concerning competitive benchmarking? 1.Competitive benchmarking is an activity that keeps an organization close to its customer. 2.Competitive benchmarking will often lead to large gains in market share and profitability for an organization. 3.Competitive benchmarking is an activity that's based on innovation rather than imitation. 4.All of the above are NOT true concerning competitive benchmarking. - Answer 4. All of the above are NOT true concerning competitive benchmarking
"Rivalry" is greatest when _____. 1.there are few organizations in the market/industry. 2.there are many organizations in the market/industry. 3.There is a new, high growth market. 4.There is a mature, low growth market. 5.Both 1 and 3 6.Both 2 and 4 - Answer 6. Both 2 and 4
Which of the following is a way for new entrants to "jockey" for market share? 1.Price 2.Quality 3.Service 4.Advertising/Marketing 5.All of the above. - Answer 5. All of the above
Which of the following is NOT true concerning new entrants and competition? 1.They increase product supply. 2.They drive prices down.
3.They seek market share. 4.The threat of new entrants is different from market to market. 5.They decrease the power of the customer. - Answer 5. They decrease the power of the customer
Which of the following is a barrier to entry into a market/industry? 1.Government patents. 2.Large capital requirements. 3.Brand loyalty. 4.Saturated distribution channels. 5.All of the above - Answer 5. All of the above
When companies in a market, for example, have well-established supplier relationships leading to better contract terms and have become more efficient in their operations over time, this is an example of which barrier to entry? 1.Government patents. 2.Large capital requirements. 3.Brand loyalty. 4.Cost advantages. 5.All of the above. - Answer 4. Cost advantages
Which of the following is true concerning threat of substitutes? 1.They're usually the result of a technological innovation. 2.They can reduce other organization's growth potential (i.e., market share and profitability potential). 3.They're typically introduced at a higher price than other products/services. 4.They promote product obsolescence. 5.All of the above are true. - Answer 5. All of the above are true
5.Only 2 of 3 (quality, price, and service) - Answer 5. Only 2 of 3 (quality, price, and service)
All of the following are true concerning technological innovations except: 1.technological innovations increase competition. 2.process innovations are focused on improving production. 3.product innovations increase efficiency. 4.product innovations can lead to product obsolescence. - Answer 3. product innovations increase efficiency
Artificial intelligence (AI) that permits a business to analyze its production machinery to spot machinery breakdown at the first sign of malfunction, thus allowing preventative maintenance to be performed rather than having to make a costly repair is a ___________ innovation that's focused on __________. 1.product; efficiency 2.process; effectiveness 3.product; effectiveness 4.process; efficiency - Answer 4. process; efficiency
Which organizational subsystem deals directly with the technological component of the external environment? 1.Managerial 2.Maintenance 3.Adaptive 4.Boundary-Spanning 5.Production - Answer 3. Adaptive
Which of the following is true concerning the economy? 1.It indirectly influences businesses by affecting demand for products/services.
2.Managers generally like moderate steady growth in the economy. 3.Economic conditions can affect the degree of competition within a marketplace. 4.All of the above. - Answer 4. All of the above
TARP's (Troubled Asset Relief Program) goal was to provide stability to the financial sector in response to a mortgage crisis, which is an example of a _______. 1.government regulation 2.government subsidy 3.government competition. 4.government economic policy. - Answer 2. government subsidy
The term "shadow bureaucracy" is associated with which of the following governmental influences on business? 1.Government Regulation 2.Government Taxation 3.Government Subsidies 4.Government Competition 5.Government Economic Policies - Answer 1. Government Regulation
In February of this year, the Food and Drug Administration (FDA) banned the sale of fruit, dessert and mint flavored vaping liquids. This move was in response to an internal FDA report that showed "a substantial increase" in youth vaping over the past year. The FDA is concerned 1) that these flavors promote more vaping among the youth and 2) the negative effects of nicotine on brain development in young people. This is an example of government __________. 1.taxation 2.subsidization 3.regulation 4.competition 5.none of the above - Answer 3. regulation
5.Both 1 and 3. 6.Both 3 and 4. - Answer 6. Both 3 and 4
Which of the following is true concerning the relationship between social responsibility and organizational financial performance? 1.As an organization's social responsibility efforts increase, organizational financial performance decreases. 2.As an organization's social responsibility efforts increase, organizational financial performance increases. 3.An organization that emphasizes social responsibility is no more/no less likely to be profitable than an organization that does not emphasize social responsibility. 4.None of the above. - Answer 3. An organization that emphasizes social responsibility is no more/no less likely to be profitable than an organization that does not emphasize social responsibility
Which of the following is a way that an organization can be socially responsible? 1.An organization making profit. 2.An organization obeying relevant laws and regulations. 3.An organization giving back to its community through charitable donations. 4.All of the above are ways an organization can be socially responsible. - Answer 4. All of the above are ways an organization can be socially responsible
What level of social responsibility is being exhibited when an organization turns a profit? 1.Economic 2.Legal 3.Ethical 4.Philanthropic 5.None of the above. - Answer 1. Economic
Which of the following environmental components can also be found in the international
component of the external environment?
- Customers
- Suppliers
- Competitors
- Economy
- All of the above.
- 1, 2, and 3 only. - Answer 5. All of the above
Which of the following is true concerning the international component of the environment? 1.It is a threat when foreign competition does business in one's domestic marketplace. 2.It's an opportunity when an organization is conducting business in a foreign marketplace. 3.It's a threat when an organization is over-reliant on a foreign resource. 4.All of the above are true concerning the international component of the external environment. - Answer 4. All of the above are true concerning the international component of the external environment
Which of the following is NOT true concerning planning? 1.Planning is the most important function of top management. 2.Planning is said to have primacy because it's associated with success. 3.Planning involves 2 activities: goal setting and action-planning. 4.Planning helps managers cope with change. 5.Planning provides performance standards for managers. - Answer 2. Planning is said to have primacy because it's associated with success
Which of the following is a reason a manager may resist planning? 1.Planning is not rewarded by the organization. 2.Planning can be used to measure the manager's performance.
