Chapter 4 - Business Management

Question 1

Outlines what the organization wants to be in the future. Created by the board of directors, the senior executives, or a combination of the two

Answer 1

Vision

Question 2

describes what will be achieved by organizational success

Answer 2

Mission

Question 3

tasks are divided into separate duties, grouping people and jobs together. The purpose is so that work can be coordinated. It can be functional in nature, divisional, or matrix

Answer 3

Departmental

Question 4

an employee typically reports to one manager in an up-down format, with a clear line of decisions and authority

Answer 4

Chain of Command

Question 5

refers to the number of individuals who report to a single supervisor

Answer 5

Span of Control

Question 6

tasks are divided into specific jobs and workers are considered skilled labor

Answer 6

Work Specialization

Question 7

pulls decision-making authority to a central level of management, such as a headquarters

Answer 7

Centralized

Question 8

pushing the authority level and decisions out to units, such as regional divisions

Answer 8

Decentralized

Question 9

six types of organizational structures?

Answer 9

Departmental
Chain of command
Span of control
Work specialization
Centralized or decentralized
Matrix

Question 10

phases in the organizational life cycle?

Answer 10

startup
growth
maturity
decline
rebirth or death

Question 11

the organization establishes its market share and niche loyal customer base. bureaucracy is a challenge

Answer 11

maturity

Question 12

leadership is a challenge

Answer 12

startup

Question 13

delegation is a challenge

Answer 13

growth

Question 14

resistance and complacency is a challenge. becoming inefficient and top-heavy with bureaucracy

Answer 14

decline

Question 15

innovation and challenge management. phase is characterized by a need for reinvigoration in order to survive, which means a retooling of the business with new vision, focus, and strategies

Answer 15

rebirth

Question 16

forecasting, setting goals and objects, determining actions and courses of direction

Answer 16

planning

Question 17

the process of creating order out of chaos. It involves collecting process steps and information about the desired goal and then structuring the methods to achieve the goal

Answer 17

organizing

Question 18

getting people to willingly do what is wanted or needed

Answer 18

directing

Question 19

monitoring activity to ensure that everything is carried out according to a plan

Answer 19

controlling

Question 20

prohibits American companies from making bribery payments to foreign officials for the purpose of obtaining or keeping business

Answer 20

Foreign Corrupt Practices Act of 1997

Question 21

requires employers to maintain employment records for hours worked, race and sex identification, and work permits for minors

Answer 21

Fair Labor Standards Act (FLSA)

Question 22

requires employers to validate all employment screening processes, including written tests and interviews

Answer 22

Civil Rights Act of 1964

Question 23

requires employers to confirm that men and women are being paid the same if they are doing the same work under the same or similar conditions

Answer 23

Equal Pay Act

Question 24

requires employers to provide job accommodations when requested and when it would not impose an undue hardship on the employer.

Answer 24

Americans with Disabilities Act

Question 25

requires employers to monitor work locations to assure they are safe, correcting any safety problems before an injury can happen

Answer 25

Occupational Safety and Health Act (OSHA)

Question 26

requires each new employee to complete Form I-9 proving they have the right to work in this country and that they are who they say they are

Answer 26

Immigration Reform and Control Act of 1986

Question 27

define the moral principles and values that establish an organization’s expectations of conduct from its leadership and employees

Answer 27

corporate ethics

Question 28

Production process, quality assurance process

Answer 28

manufacturing

Question 29

Billing process, expense reimbursement process

Answer 29

finance

Question 30

Application process, drug testing process

Answer 30

employment

Question 31

Audit trail process, security of accounts process

Answer 31

banking

Question 32

Employee data tracking process, policy development process

Answer 32

HR

Question 33

Form I-9 audit process, IRS reporting process

Answer 33

compliance

Question 34

risk analysis, identification of safety threats, workplace violence prevention programs, injury and illness prevention programs (IIPPs), and domestic violence issues

Answer 34

safety and security

Question 35

Lewin concluded that there are three stages of change management that are good for use with deep dives into organizational changes

Answer 35

Unfreeze the organization Change the organization Refreeze the organization

Question 36

McKinsey 7-S Model

Answer 36

Strategy Structure Systems Shared Style Staff Skills

Question 37

Kotter’s Theory

Answer 37

Create a sense of urgency Build a guiding coalition Form a strategic vision Enlist a volunteer army Remove barriers and reduce friction Generate short-term wins Sustain acceleration Make the changes institutional

Question 38

McKinsey 7-S Model

Answer 38

strategy structure systems shared values style staff skills

Question 39

addresses issues related to employees, customers, clients, the public, and vendors/suppliers. the process of managing liabilities related to these populations in ways that will protect the employer organization and not be so heavy handed that the organization can’t function well in performing its mission

Answer 39

risk management

Question 40

The process of protecting an organization from financial harm by identifying, analyzing, financing, and controlling risk is a shared responsibility among several areas in an organization

Answer 40

Hazard (Risk) Identification and Communication

Question 41

Eliminate the risk at any cost.

Answer 41

risk avoidance

Question 42

Reduce the number of occasions that loss occurs

Answer 42

loss control

Question 43

requires that a reserve fund be established to pay for any loss since the employer is self-insured under this model.

Answer 43

risk retention

Question 44

Insuring against a particular loss will move the liability from the employer to an insurance carrier.

Answer 44

risk transfer

Question 45

determining how much of a product or service is able to be produced with the available materials, labor, and equipment (known as inputs) as well as what changes in inputs are required by fluctuating customer demands.

Answer 45

capacity

Question 46

the way in which the goods or service will be produced: for example, the design of an assembly line or, in the case of a service, the process to be used in providing it, such as a model plan or protocol for a financial audit.

Answer 46

production layout

Question 47

make sure the products or services are available at times of peak customer demand.

Answer 47

scheduling

Question 48

ensures that the product or service meets acceptable standards

Answer 48

Quality Management, or quality assurance (QA)

Question 49

the balancing of two conflicting needs related to inventory: the cost of maintaining a large inventory and the need to satisfy customers by filling orders promptly.

Answer 49

inventory management

Question 50

Increasing the use of technology can improve product quality and the amounts that are produced.

Answer 50

technology

Question 51

Evaluating the best places to locate production facilities involves many considerations: the cost of labor, distribution systems, and government regulations, to name a few

Answer 51

facility location

Question 52

As with all business functions, operations must provide products or services that meet the quality standards set by the organization at the lowest possible cost.

Answer 52

cost control

Question 53

encompasses all the activities necessary to produce the goods or services of the business

Answer 53

operations