OM

Question 1

Is an organization or economic system where goods and services are exchanged for one another or for money.

Answer 1

Business

Question 2

Four (4) Major Types of Businesses:

Answer 2

Service Business
Merchandising Business
Manufacturing Business
Hybrid Business

Question 3

A type of business which provides intangible products. These type firms offer professional skills, expertise, advice, and other similar products.

Answer 3

Service Business

Question 4

e.g., schools, repair shops, hair salons, banks, accounting firms and law firms.

Answer 4

Service Business

Question 5

refers to businesses which buy product at wholesale price and sell the same at retail price.

Answer 5

Merchandising Business

Question 6

e.g., grocery stores, convenient stores, distributors and other resellers.

Answer 6

Merchandising Business

Question 7

refers to businesses which buy productions with the intention of using them as materials in making a new product.

Answer 7

Manufacturing Business

Question 8

Examples are baked good, shoe manufacturing, grape wine production, cosmetic manufacturing, processed food, canned goods, and others.

Answer 8

Manufacturing Business

Question 9

refers to companies that may be classified with more than one type of business.

Answer 9

Hybrid Business

Question 10

A restaurant, for example combines ingredients in making a fine meal (manufacturing), sells a cold bottle of wine (merchandising), and fills customer orders (service).

Answer 10

Hybrid Business

Question 11

a business is owned and managed by only one person.

Answer 11

Sole Proprietorship

Question 12

a business owned by two or more persons who contribute resources into the entity.

Answer 12

Partnership

Question 13

is a business organization that has a separate legal personality from its owners.

Answer 13

Corporation

Question 14

is a business organization owned and managed by a group of individuals for their mutual benefits.

Answer 14

Cooperative

Question 15

is an increase in living conditions, improvement of the citizens’ self-esteem needs and presence of a free and just society.

Answer 15

Economic Development

Question 16

refers to a change in the composition of the Gross Domestic Product.

Answer 16

Structural Formation

Question 17

are administrative decisions that are directly related to all issues and activity within a nation’s borders.

Answer 17

Migration of people

Question 18

is the incidence of disease, rate of illness.

Answer 18

Morbidity

Question 19

Indicators of Economic Development: (4)

Answer 19

Declining Poverty Rates
Increasing Literacy Rate
Declining Infant Morbidity
Increasing Life Expectancy

Question 20

Stages of Economic Development According to Gunter: (3)

Answer 20

The Structural Transformation
The Demographic Transition
Migration of people

Question 21

refers to a change in the composition of GDP. Initially, economic activities and jobs are based in the agricultural sector. In other words, at the final stage of development, we typically have an economy in which people earn their livelihood predominantly from the service sector and still important but diminished industry sector

Answer 21

The Structural Transformation

Question 22

determined by changes in the fertlity rates (example the number of children per women) and changes in life expectancy. Initially, fertility rates are high, but due to relatively high death rates especially

Answer 22

The Demographic Transition

Question 23

The main factors leading to the process of urbanization is the _________ __ ___ from rural areas seeking jobs in the emerging urban centers, the transformation of originally semi- urban suburbs into fully urban centers, and differences in population dynamics between rural and urban areas.

Answer 23

Migration of people

Question 24

It evolves from the goals & strategies created by organization’s top management & they are usually long term in nature.

Answer 24

Corporate Planning

Question 25

Is concerned in the process of determining the **scope of division’s action** that will satisfy the consumer’s needs.

Answer 25

Divisional Planning

Question 26

It is the **lowest level of planning** which concerns the individual departments of its set of feasible action plans to implement the division plan.

Answer 26

Functional/Unit Planning

Question 27

Refer to the **written description of a set of events** suitable to occur in the future that bears on organizations effectiveness

Answer 27

Scenarios

Question 28

Is a technique usually applied to a group of knowledgeable people with different backgrounds & experiences whose pooled skills & judgment are needed to identify desirable goals & strategies

Answer 28

Nominal Group Technique

Question 29

Is a **computer simulation modeling** which is used to assist in the development of long & medium & short range plans.

Answer 29

Simulation Planning Models

Question 30

Is somehow the **blueprint or map** to reach certain destination of our wants.

Answer 30

Planning

Question 31

Is the process of defining an **organization’s objectives** & **how it will achieve them** like “what is to be done & when it is to be done”. In an organization, it is not solely done by the top management but by other levels in the organization as well to be prepared of what might arise in the future (David Halt).

Answer 31

Planning

Question 32

Planning can be done in 2 ways:

Answer 32

Formal Planning Informal Planning

Question 33

DIFFERENT TYPES OF PLAN ACCORDING TO ITS DIMENSION: (3)

Answer 33

CORPORATE / STRATEGIC PLANNING DIVISIONAL / BUSINESS PLANNING FUNCTIONAL / UNIT PLANNING

Question 34

It evolves from the **goals & strategies created by organization’s top management** and they are usually long term in nature. It covers the entire organizational activities. Thus, it sets the foundation of the organization in terms of all plans, policies & strategies.

Answer 34

CORPORATE / STRATEGIC PLANNING

Question 35

Also referred to as **Tactical planning** concerns the process of **determining the divisional actions** that will satisfy the consumer’s need, decide on specific sub-goal within its defined area or responsibility & establish policies & budget to attain these goals.

Answer 35

DIVISIONAL / BUSINESS PLANNING

Question 36

Commonly called as **Operational planning.**

Answer 36

FUNCTIONAL / UNIT PLANNING

Question 37

It is the **lowest level of planning**. At this level, department managers or first-line supervisors develop a **set of feasible action plan** & focus on **planning for a day-to-day activity** to implement the division plans. This uses short-range actions & adheres to planned schedules & budgets.

Answer 37

FUNCTIONAL / UNIT PLANNING

Question 38

TIME FRAME OR LENGTH OF THE PLANNING HORIZON (3)

Answer 38

Long Range Medium / Intermediate Range Short Range

Question 39

Deals with decisions for **broad** technological & competitive aspects of the organization which might extend up to **fifteen years.**

Answer 39

Long Range

Question 40

Deals with plans that are **more detailed** compare to long range since the time span shorter & concerns the specific & basic functions of the organization. – This is between two to five **(2-5) years.**

Answer 40

Medium/Intermediate Range

Question 41

Is an **extension of long range planning** & usually extends to about **one (1) year** & includes more specific plans with respect to plant location, work methods, inventory & controls employee training & the like.

Answer 41

Short Range

Question 42

There are different planning elements that are involved in the planning process, which depends upon the activity involved. (4)

Answer 42

Strategies Policies Procedures Rules

Question 43

Involve **choices of particular actions** by the organization to achieve stated goals.

Answer 43

Strategies

Question 44

**Limit the behavior** or organizational members towards achieving the goals.

Answer 44

Policies

Question 45

They are **guidelines of the organization** that are useful in decision making.

Answer 45

Policies

Question 46

Are narrower in terms of application in the organization. It only tends to involve departmental activities such as hiring procedures & payment procedures.

Answer 46

Procedures

Question 47

Are the **thinnest element**; these are usually orders with what is appropriate or not in terms of behavior of members in organizations.

Answer 47

Rules

Question 48

These are **strict advices for employees** with specific functions like rules on wearing uniform in the workplace, rules on deadline, etc.

Answer 48

Rules

Question 49

REPETITIVE PLANS can be characterized by the degrees of sameness with which they are used by the organization: (2)

Answer 49

Standing Plans Single-use Plans

Question 50

Are those developed by the organization to direct activities that will occur frequently overtime.

Answer 50

Standing Plans

Question 51

Deal with ill-structured or non-repetitive problems to fit a specific situation & may not be used any more when goal has been achieved.

Answer 51

Single-use Plans

Question 52

refers to the **concentration** of a given plan in an organization. It clarifies the function of a particular area where there is more attention needed.

Answer 52

Focus

Question 53

PLANNING TOOLS & TECHNIQUES (3)

Answer 53

SCENARIOS NOMINAL GROUP TECHNIQUE SIMULATION PLANNING MODELS

Question 54

Are intended to raise awareness in managers & to prevent surprises.

Answer 54

Scenarios

Question 55

Alternate _________ serve to broaden the outlook of managers to the external forces that shape the future of the organization & sensitize them their vulnerabilities & the opportunities that lie within other possible futures.

Answer 55

Scenarios

Question 56

It is a technique that is particularly useful for planning task or elements that require a high degree of innovation, idea generation, & creativity.

Answer 56

Nominal Group Technique

Question 57

The technique is usually applied to a group of knowledgeable people with different backgrounds & experiences whose pooled skills & judgment are needed to identify desirable goals & strategies.

Answer 57

Nominal Group Technique

Question 58

Refer to computer simulation modeling by which planners construct sophisticated models of an organization showing desired, reality based characteristics. With the aid of computer, managers can test certain hypothesis on a wide range of decision at a much lower cost & with greater speed.

Answer 58

Simulation Planning Models

Question 59

Computer simulation in planning is a quantitative modeling techniques developed to test alternatives courses of action based on historical facts & managerial assumptions. With the continuing knowledge & sophistication of computer usage, simulation models in planning activities will become one of the dominant techniques in the future

Answer 59

Simulation Planning Models

Question 60

It is a group of people who work together for a common good.

Answer 60

Organization

Question 61

It is a collection of people who work together and coordinate their actions to achieve a wide variety of goals.

Answer 61

Organization

Question 62

It is born when people begin to cooperate and combine together to fulfil their requirements.

Answer 62

Organization

Question 63

It fulfills a greater variety of our social and personal needs and affects our lives.

Answer 63

Organization

Question 64

TYPES OF ORGANIZATIONAL STRUCTURES (4)

Answer 64

1. Flat Organizational Structure 2. Functional Organizational Structure 3. Divisional Organizational Structure 4. Matrix Organizational Structure

Question 65

has an organizational structure with few or no levels of middle management between staff and executives.

Answer 65

Flat Organizational Structure

Question 66

is a type of organizational structure that uses the principle of specialization **based on function or role.**

Answer 66

Functional Organizational Structure

Question 67

The structure of these **groups each organizational function into a division.** Each division contains all the necessary resources and functions within it.

Answer 67

Divisional Organizational Structure

Question 68

It is the unwillingness to share information or knowledge between employees or across different departments within a company. It usually begins with competition among senior managers. Successful firms encourage and facilitate a free flow of information.

Answer 68

Silo mentality

Question 69

is an organizational structure in which each individual **reports to more than one supervisor.**

Answer 69

Matrix Organizational Structure

Question 70

Advantages of Line Organization Structure:

Answer 70

* Simple to work * Economical and effective. It also allows quick decisions and efficient coordination. * Conforms to the scalar principle of organization. Further, it promotes the unity of command. * In a line organization, the responsibility for the performance of tasks is fixed upon definite individuals. Therefore, there is accountability of delegated tasks. * There is excellent discipline in a line organization due to unified control and undivided loyalties. * The overall cost of running the organization is low due to the non-involvement of staff personnel. * It is a stable form of organization.