Multiple Choice Answers

Which of the following statements about the organization is true?
The organization is more like a motion picture than a snapshot.
Today’s organizations are far removed from the traditional forms they once had.
Organizations are hotbeds of social relationships.
Organizations contain coalitions.
All of these statements about organizations are true.

Which of the following statements about strategic alliances is true?
Managers typically do not devote enough time to screening potential partners in financial terms.
For the alliance to work, the partners should consider one another’s areas of expertise.
It is typical that the most successful strategic alliances have the same research interests.
Sometimes strategic alliances can slow down the work of two organizations.
Manufacturing costs are often increased by using a strategic alliance.

Which of the following is a way that firms become true learning organizations?
Their people must engage in good assumptions.
They search constantly for quick fixes to current problems.
They carefully review both successes and failures.
They isolate an innovation in its department until it has proven to be successful.
Top management directs how to solve each major problem.

Which of the following is an important advantage for companies trying to take on large foreign rivals in huge global markets?
Low turnover of employees.
Economies of scope.
Low levels of bureaucracy.
A standardized labor force.
A centralized set of processes.

Small organizational size may improve
Market share achievements.
Manufacturing.
Speed.
Organizational design.
Bureaucracy.

Which of the following is a key organizational element of time-based competition?
Logistics.
Reduction of manufacturing time.
Just-in-time.
Concurrent engineering.
All of these are key organizational elements of time-based competition

Just-in-time systems include which of the following concepts?
Specialized engineering.
Reduced cycle times.
ISO 9001.
RFID tagging.
Mutually beneficial supplier relationships.

Scenario A

You and your classmates are debating the true meaning of the word “economy” in a manufacturing context, the development of efficiencies. Anil says that to have economy, the company must work for lower costs per unit of production. Bob argues that having economy means using the same company resources to make more than one thing. Christine says that having economy means avoiding the costs of growing too large and creating waste.

Bob defines “economy” in a manufacturing context as
Diseconomies of scale.
Diseconomies of scope.
Economies of scale.
Economies of scope.
Economies of size.

Lanette and Jack met for lunch after each interviewed for a position with Trenton Construction. The two compared notes and found that they had been asked the exact same questions. Their interviews would be considered
Controlled.
Prearranged.
Valid according to empirical tests but not content tests.
Structured.
Informal.

Total quality management is a way of managing in which everyone is committed to the continuous improvement of his or her part of the operation.  True    False

Some customers demand ISO 9001 certification before they will do business with a company.  True    False

Reengineering answers the question “If you were the customer, how would you like us to operate?”  True    False

Large batch technologies occur with high variety of products and high volumes.  True    False

At the high-volume end of the scale are companies that use small batch technologies.  True    False

. Mass specialization refers to organizations that are trying to produce both high-volume and high-variety products at the same time.  True    False

Pierson University requires all applicants to their Masters of Business Administration Program to take the GMAT exam. This exam measures the test taker’s aptitude for management by measuring things like verbal comprehension, mathematical calculations, and other necessary management skills. This type of test is considered a(n)
Personality test.
Performance test.
Integrity test.
Cognitive ability test.
Background test.

Greg applied for a temporary job as a accounts payable clerk for the county. As part of his employment screening, he was asked to take an exam that had general mathematical aptitude questions on it. This type of selection test is referred to as a
Performance test.
Cognitive ability test.
Validity test.
Personality test.
Certification test.

KFAB Channel 9 wanted to hire a new morning news anchor. As part of the interview process, candidates were asked to read several impromptu news stories from the teleprompter. This requirement would be considered
Discriminatory.
A personality test.
A performance test.
An integrity test.
To have low validity.

In the organic organization, expertise is highly valued.  True    False

The strategies and structures used by the organization are based on the firm’s core competencies, its strategic alliance, its ability to learn, and its ability to engage all the people in the organization in achieving its objectives.  True    False

The more organic a firm is, the more responsive it will be to changing competitive demands and market realities.  True    False

Managers who want to strengthen their firms’ competitiveness via core competencies need to focus on the organization’s HR department.  True    False

Large organizations are typically less organic than small ones.  True    False

Having people engage in disciplined thinking and attention to details and making decisions based on data and evidence rather than guesswork and assumptions, are key components to a learning organization.  True    False

Because of their size, smaller companies can produce scale economies that can help lower operating costs and generate greater purchasing power.  True    False

“Diseconomies of Scale” refers to the costs of an organization being too big.  True    False

9. A value chain is the sequence of activities that flow from raw materials to the delivery of a good or service, with additional value created at each step.  True    False

Just-in-time operations and simultaneous engineering are key elements of time-based competition.  True    False

Which of the following statements about strategic alliances is true?  A. Managers typically do not devote enough time screening potential partners in financial terms. B. For the alliance to work, the partners must develop the human relationships in the partnerships. C. It is typical that the most successful strategic alliances have the same research interests. D. Sometimes strategic alliances slow down the work of two organizations; this must be watched carefully. E. Manufacturing costs are often increased by using a strategic alliance.

Structurally, a high-involvement organization is  A. tall and decentralized. B. flat and decentralized. C. tall and centralized. D. flat and centralized. E. departmentalized.

Greater complexity, increased bureaucracy and specialized jobs are characteristic of  A. fast changing organizations. B. static organizations. C. mid-sized organizations. D. very large organizations. E. small, entrepreneurial organizations.

Economies of scope refers to  A. lower costs per unit produced. B. materials and processes employed in one product can be used to make other, related products. C. getting products to market ahead of the competition. D. the producer with the greatest percentage of market share. E. indicators that an organization has contributed to economic growth.

Economies in which materials and processes employed in one product can be used to make other, related products are  A. subassemblies. B. economies of scope. C. flexible factories. D. functional organizations. E. economies of scale.

Downsizing is the planned elimination of jobs.  True    False

Customer relationship management (CRM) helps companies understand and anticipate the needs of only their current customers.  True    False

Companies meet the increasing demand for mass customization by creating “modules” that perform a certain task or process.  True    False

People in organic organizations work more as ________ than _________.  A. friends, enemies B. teammates, subordinates C. family, workers D. employees, servants E. acquaintances, friends

The particular form–and degree–of organic structure the organization adopts should depend on its  A. strategy. B. size. C. customers. D. technology. E. All of the above determine the particular form and degree of organic structure the organization adopts.

Managers who want to strengthen their firms’ competitiveness via core competencies need to focus on which of the following issues?  A. Assigning specific tasks to specific workers B. Purchasing more capital assets C. Writing a strategic plan D. Extending competencies to find new applications and opportunities for the markets of tomorrow E. Stock price

The Healthy Nutrition Counseling Center and the Simple Solutions Software Company have recently joined forces to produce a meal planning program for use on home computers. The two organizations decided to work together on the project since neither one could have developed the project with their own resources. Both organizations will own the resulting program. This effort could be considered a  A. network organization. B. strategic alliance. C. cluster organization. D. classical conglomerate. E. high-involvement organization.

An organization skilled at creating, acquiring and transferring knowledge and at modifying its behavior to reflect new knowledge and insights is a  A. learning organization. B. high-involvement organization. C. mechanistic organization. D. network organization. E. matrix organization.

A type of organization in which top management ensures that there is consensus about the direction in which the business is heading is a  A. learning organization. B. high-involvement organization. C. mechanistic organization. D. network organization. E. matrix organization.

Which of the following is a characteristic of very large organizations?  A. They tend to be more organic. B. Levels are added to keep spans of control from becoming too small. C. Jobs are more specialized. D. Rules, procedures and paperwork are unnecessary. E. The organization is easy to control because of the organizational structure used.

Diseconomies of scale refers to  A. environmental forces which inherently have a negative impact on business growth. B. the realization of lower per unit costs. C. the costs associated with an organization being too big. D. employing materials/processes in related products or services. E. an inability to achieve the advantages of larger organizational size.

Globaltech, a computer software company is in the process of eliminating hierarchy levels in the organization. Globaltech has carefully analyzed all of the positions in the company and strategically determined which positions to keep. It plans to protect its most talented people and help the others with special attention. Globaltech is beginning to  A. develop a new information system. B. complete its retirement plan. C. downsize. D. avoid cyclical hiring. E. determine the right fit of the organizational goals.

Which of the following is an effective practice in downsizing?  A. Hire people that can cope with the new situation. B. Make slow, small, frequent layoffs. C. Expect employees to cope with the new situation/reality. D. Communicate once a quarter, through the company newsletter, with people about the process. E. Identify how the organization will operate more effectively in the future.

The strategic triangle includes which three things?  A. Profit, strategy, and employees B. Control, structure, conduct C. Customers, corporation, competitors D. Control, customers, employees E. Profit, customers, competitors

Which of the following is a support activity in the generic value chain?  A. Inbound logistics B. Operations C. Outbound logistics D. Procurement E. Marketing and sales

Total quality management is a way of managing in which __________ are committed to continuous improvement of the product/service.  A. top managers B. operations managers C. production workers D. staff/support workers E. all of the above

Which of the following statements about W. Edwards Deming’s 14 points of quality is true?  A. Strive for short-term improvement rather than long-term profit. B. Ensure compliance by punishing those who deviate from the process. C. Eliminate slogans and buzzwords. D. Use numerical quotas. E. Mass inspection is the best way to ensure quality.

One of the most important contributors to total quality management has been the introduction of statistical tools to analyze the causes of product defects in an approach called  A. Six Sigma Quality. B. Total Quality Integration. C. ISO 9001. D. Kaisan. E. Kanban.

Senior managers at ZebraCorp, a manufacturer of striped leather sofas, have been working with a consultant to implement ISO 9001. They have established a vision and goals, and have been working hard to establish trust with their employees. Given this scenario, ZebraCorp. can be said to have strong  A. information and analysis. B. strategic quality planning. C. mutually beneficial supplier relationships. D. process quality management. E. leadership.

The production of both high-volume and high-variety products at the same time is referred to as  A. individual production. B. mass customization. C. flexible production. D. mass production. E. continuous process production.

Which of the following is a key organizational element of time-based competition?  A. Logistics B. Reduction of manufacturing time C. Just-in-time D. Simulations engineering E. All of the above are key organizational elements of time-based competition.

Which of the following functions is often critical to an organization’s responsiveness and competitive advantage?  A. Logistics B. Robotic manufacturing C. Time-based human resources management D. Kanban E. Six-sigma

A system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed is referred to as  A. a dynamic network. B. just-in-time (JIT) operations. C. mass customization. D. continuous process operations. E. flexible manufacturing.

A design approach in which all relevant functions cooperate jointly and continually in a maximum effort aimed at producing high-quality products that meet customers’ needs is called  A. total quality engineering. B. customer-focused engineering. C. simultaneous engineering. D. demand engineering. E. functional engineering.     C. simultaneous engineering.

The strategies and structures used by the organization are based on the firm’s core competencies, its strategic alliance, its ability to learn, and its ability to engage all the people in the organization in achieving its objectives.  True    False

Diseconomies of scale refers to  A. environmental forces which inherently have a negative impact on business growth. B. the realization of lower per unit costs. C. the costs associated with an organization being too big. D. employing materials/processes in related products or services. E. an inability to achieve the advantages of larger organizational size.

Loss of productivity and morale in employees who remain after a downsizing is known as  A. relative syndrome. B. survivor’s syndrome. C. downsizing syndrome. D. demoralization guilt. E. survivor’s guilt.

Which of the following is a primary activity in the generic value chain?  A. Firm infrastructure B. Human resource management C. Technology development D. Service E. Procurement

The methods, processes, systems and skills used to transform resources (inputs) into products (outputs) are known as  A. mass communication. B. economies of scope. C. logistics. D. technology. E. integration.

A small office with one physician, one nurse and one bookkeeper would be an example of a  A. job shop. B. large batch shop. C. continuous process shop. D. mass customization shop. E. mass production shop.