Managing New Venture Growth Final

Question 1

Process that involves determining and communicating to employees how they are performing in their jobs and establishing a plan for improvement.

Answer 1

Performance Appraisal

Question 2

To be effective, a performance appraisal must be…

Answer 2

• Supported by documentation
• Fair

Question 3

Appraisal performance formula

Answer 3

Ability x Effort = Performance

Question 4

An employees skill set

Answer 4

Ability

Question 5

The amount of energy expended

Answer 5

Effort

Question 6

The degree of accomplishment of the tasks that make up an employee’s job.

Answer 6

Performance

Question 7

Average production or work

Answer 7

Tasks performed by all employees are approximately the same

Question 8

When tasks performed by all employees are basically the same, it would be time consuming to use the group average

Answer 8

Performance of specially selected employees

Question 9

Jobs that involve repetitive tasks (assembly line)

Answer 9

Time Study

Question 10

Non-cyclical types of work in which many different tasks are performed and there is no set pattern or cycle

Answer 10

Work sampling

Question 11

Used only when none of the direct methods apply

Answer 11

Expert Opinion

Question 12

Requires a manager to describe an employee’s performance in written narrative form

Answer 12

Essay Appraisal

Question 13

Requires the manager to keep a written record of incidents as they occur, involving both satisfactory and unsatisfactory performance

Answer 13

Critical Incident

Question 14

Manager assesses an employee on factors such as quantity of work, dependability, job knowledge, attendance, accuracy of work, etc. These subjects are measured on a numerical range.

Answer 14

Graphic Rating Scale

Question 15

Requires a manager to answer yes or no to a series of questions
concerning the employee’s behavior

Answer 15

Checklist

Question 16

Requires a manager to rank a set of statements describing how an employee carries out the duties and responsibilities of the job.

Answer 16

Forced Choice Rating

Question 17

Manager is given a list of several employees, then he selects the most valuable and the least valuable and continues this until all employees have been evaluated.

Answer 17

Alternation rating

Question 18

A list of employees is written on the left side of a sheet of paper. The first employee is compared to all other employees on a given criterion with a check mark being given to the one considered the stronger performer. This is continued until all employees have been compared to all
other employees.

Answer 18

Paired Comparison

Question 19

Assumes the performance levels of employees is a bell curve, forces a manager to place a certain percentage of employees into
performance levels

Answer 19

Forced Distribution

Question 20

Potential Errors in performance appraisals

Answer 20

• Leniency
• Central Tendency
• Recency
• Halo Effect

Question 21

Grouping all the ratings at the positive end of the scale

Answer 21

Leniency

Question 22

Performance evaluations are based on work performed most recently, generally one or two months before the evaluation

Answer 22

Recency

Question 23

Tendency of voters to rate most employees as doing average work.

Answer 23

Central Tendency

Question 24

Manager allows a single prominent characteristic of an employee to influence performance appraisals

Answer 24

Halo Effect

Question 25

Do's of performance appraisals

Answer 25

- Base on job performance only - Use only rating scales relevant to the job itself - Sincerely work at the appraisal interview process - Be problem solving oriented

Question 26

It's important to emphasize ________ instead of ____________

Answer 26

Work behavior instead of personal traits

Question 27

Ensure that the employees are allowed to give___________ during the appraisal

Answer 27

Feedback

Question 28

Ensure that appraisals are ________, ___________, and ____________.

Answer 28

Written, documented, and retained

Question 29

Rewards internal to the employee, normally derived from involvement in work activities

Answer 29

Intrinsic rewards

Question 30

Tangible rewards, controlled and distributed by the organization

Answer 30

Extrinsic Rewards

Question 31

Sense of achievement, informal recognition, status, job satisfaction, personal satisfaction

Answer 31

Intrinsic rewards

Question 32

Formal recognition, fringe benefits, incentive payments, base wages, promotion

Answer 32

Extrinsic Rewards

Question 33

Rewards related to performance

Answer 33

Incentives

Question 34

Rewards received bc of employment with organization

Answer 34

Benefits

Question 35

Extrinsic rewards offered by the organization consisting of base wage or salary, any incentive or bonus, and any benefit employee receives in exchange for their work

Answer 35

Compensation

Question 36

Two aspects of an operating system

Answer 36

- Design - Control

Question 37

Design

Answer 37

Physical layout of the operation

Question 38

The monitoring of the system on an ongoing basis, this is to ensure quality and manage inventory

Answer 38

Control

Question 39

Direct costs of a product

Answer 39

Labor and materials

Question 40

Direct costs are always ________

Answer 40

Variable costs

Question 41

As the number of products produced increases, the __________ increases

Answer 41

The direct costs increase

Question 42

Expenses that change in proportion to the level of production or service (training of new employees, travel)

Answer 42

Overhead Expenses (Variable)

Question 43

Expenses that do not change with the level of production (management of salaries, marketing expense, R&D expense, rent)

Answer 43

Overhead Expenses (fixed)

Question 44

The degree of excellence specified in the design stage

Answer 44

Quality

Question 45

4 Ways quality is important

Answer 45

1) Loss of business 2) Liability 3) Costs 4) Productivity

Question 46

Poor quality can expose a company to _________

Answer 46

High liability costs

Question 47

Poor quality can cost a company what?

Answer 47

- Money in warranty - Repair - Waste - Replacement costs

Question 48

Quality allows for ____________

Answer 48

Continuous improvement

Question 49

Quality at the source

Answer 49

Each employee is not responsible for their own work

Question 50

Based on a precise set of statistical tools, answers the question what does the customer want in terms of quality then translates the answer into statistical terms.

Answer 50

Six Sigma

Question 51

Eliminating waste and non value added activities

Answer 51

Lean manufacturing

Question 51

Relates to the inputs or outputs of the system, used when quality is evaluated w/ respect to a batch of existing products or services.

Answer 51

Product quality control

Question 51

Searching for and implementing radical changes in business processes to achieve breakthroughs in speed, cost,

Answer 51

Reengineering

Question 51

Relates to the equipment and processes used during the production process, used to monitor quality while the product is being produced

Answer 51

Process Control

Question 52

Method of predicting the quality of a batch or large group of products from an inspection of a sample or group of samples from a batch

Answer 52

Acceptance sampling

Question 52

Why is acceptance sampling used

Answer 52

- Potential for losses or cost of passing defective items are not great relative to the cost of inspection (checking balloons for defects) - Inspection of some items requires destruction of the product being tested (matches)

Question 53

Acceptance sampling leaves two possibilities. What are they?

Answer 53

1) Producer Risk 2) Consumer Risk

Question 54

Risk producer takes in possibly rejecting a good batch

Answer 54

Producer risk

Question 55

Risk of consumer accepting a bad product

Answer 55

Consumer risk

Question 56

Types of Inventory

Answer 56

- Raw material - In process - Finished goods

Question 57

Buffer between production and purchasing, material waiting to be used to make the product

Answer 57

Raw material

Question 58

Buffer between rate of flow between production processes (keeps your labor force working)

Answer 58

In process inventory

Question 59

Buffer between final stage of of production and shipping (allows ppl to buy the products they need when they need them)

Answer 59

Finished goods

Question 60

Why keep inventory?

Answer 60

Allows the company to: - Purchase, produce, and ship in economic lot sizes rather than in small jobs (economies of scale) - Produce on a smooth continuous basis even if demand for finished good fluctuates - Prevents major problems when forecasts of demand are in error or when unforeseen slowdowns or stoppages in supply of production occur

Question 61

Philosophy for production to ensure the correct items arrive at the correct time.

Answer 61

Just in Time Inventory

Question 62

What are methods used to track inventory

Answer 62

- Bar code technology - Physical inventory

Question 63

When items are scanned at point of sale, they are then subtracted from inventory

Answer 63

Bar code technology

Question 64

Physically counting all of the inventory, this ensures effectiveness of our inventory control system

Answer 64

Physical Inventory

Question 65

Finished goods are ready to be shipped out or sold, generally a finished product

Answer 65

Independent demand

Question 66

Subassembly or component parts used to make a finished product, there demand is based on the number of finished products being produced

Answer 66

Dependent demand

Question 67

The number of tires needed for new cars being manufactured depends upon the number of cars being made

Answer 67

Dependent demand

Question 68

Method of managing inventories based on the total value of their uses per unit. This method segregates high dollar items, which tend to be monitored more than low dollar items.

Answer 68

ABC Classification system

Question 69

The amount of inventory maintained to accommodate unexpected changes in demand and supply and allow for variations in delivery time.

Answer 69

Safety Stock

Question 70

What are ordering costs made up of?

Answer 70

Order time, shipping costs, and set up costs (usually insignificant costs)

Question 71

What is actually costs to hold inventory

Answer 71

Carrying costs

Question 72

What do carrying costs consist of?

Answer 72

- Insurance - Storage costs - Opportunity cost of money - Pilferage (stealing) - Obsolescence (becoming outdated)

Question 73

Process of ensuring that organizational activities are going according to plan, accomplished by comparing actual performance to predetermined standards or objectives, then taking action to correct for any deviation

Answer 73

Control

Question 74

Control is used to:

Answer 74

- Prevent crisis - Standardize outputs - Appraise employee performance - Update plans - Protect organizations assets

Question 75

Two concerns of control

Answer 75

1) Stability 2) Objective realization

Question 76

Managers must ensure the organizations is operating within established boundaries of constraint, which are determined by policies, budgets, ethics, laws, etc

Answer 76

Ensuring stability

Question 77

Requires constant monitoring to ensure that progress is being made toward established objectives

Answer 77

Objective realization

Question 78

Three requirement for control

Answer 78

1) Setting standards 2) Monitoring Performance 3) Correcting for deviations

Question 79

Standard is the value used as a point of reference for comparing other values (output per hour, inventory level, etc)

Answer 79

Setting Standards

Question 80

Gather data and detect problems

Answer 80

Monitoring performance

Question 81

Taking corrective action to ensure standards are being met.

Answer 81

Correcting for deviations

Question 82

Repetitive acts requiring very little thought, generally normal in the course of business

Answer 82

Foolproof

Question 83

Requiring very little human interaction (thermostat regulating a building’s temperature)

Answer 83

Automatic

Question 84

Requires human response, physically checking records

Answer 84

Operator

Question 85

Layer that controls the person or person implementing controls. (Boss checking production records for the previous day)

Answer 85

Supervisory

Question 86

Ultimate feedback loop, manager pulls together all information provided by all other controls

Answer 86

Informational controls

Question 87

Types of control

Answer 87

1) Behavioral or personal 2) Output or impersonal 3) Control tolerance

Question 88

Based on direct personal surveillance, the front line supervisor watching their employee

Answer 88

Behavioral/personal

Question 89

Based on the measurements of output, tracking sales performance or production

Answer 89

Output/impersonal

Question 90

Variation from the standard that is acceptable for the manager (perfect is not a reasonable standard)

Answer 90

Control tolerance

Question 91

3 Factors to consider w/ control

Answer 91

1) Economic considerations 2) Behavioral considerations 3) Flexibility and Innovation

Question 92

Employees do not like working in an environment where they feel like every move is being monitor

Answer 92

Behavioral considerations

Question 93

Controls cost money

Answer 93

Economic considerations

Question 94

3 types of control

Answer 94

1) Preliminary (steering) control 2) Concurrent (screening) control 3) Post action control

Question 95

Goal is to prevent a problem from happening. (purchase order)

Answer 95

Preliminary (steering) control

Question 96

Focuses on the process as it is occurring, the goal is to detect a problem as it is happening (monitoring the drive thru operation at a fast food restaurant or monitoring a phone call

Answer 96

Concurrent (screening) control

Question 97

Checking after an event to keep a small issue from getting out of hand. (review or the profit and loss statement each mont

Answer 97

Post Action control

Question 98

It will never solve a problem It is the most widely used control

Answer 98

Post Action control

Question 99

Statement of expected results or requirements expressed in financial terms

Answer 99

Budget

Question 100

Designed to stop basing the current years budget on the previous years budget. Every activity is analyzed based on the need for the current year.

Answer 100

Zero Based budgeting

Question 101

Information from income statements, balance sheets, etc. used for analysis purposes

Answer 101

Financial controls

Question 102

Examples of direct observation

Answer 102

- Managers daily tour of facility - Company president's annual visit - Methods study by an engineer

Question 103

Presents only the facts (balance sheet or income statement)

Answer 103

Informational reports

Question 104

Interprets the facts (outside audit)

Answer 104

Analytical report

Question 105

Audit conducted by company personnel on a facility

Answer 105

Internal audit

Question 106

Audit performed by an outside accounting firm, used to verify internal numbers

Answer 106

External audit

Question 107

Who are required to have an external audit?

Answer 107

Publicly traded companies