Organizational Management Exam #2

Front 1

What is the strategic management process?

Back 1

Strategic Management Process: is a six step process that encompasses strategic planning, implementation, and evaluation.

1. Identifying the Organization’s Current Mission, Goals, and Strategies

2. Doing External Analysis

3. Doing Internal Analysis

4. Formulating Strategies

5. Implementing Strategies

6. Evaluating Results

Front 2

What is corporate strategy?

Back 2

Corporate strategy: is an organizational strategy that specifies what businesses a company is in or wants to be in and what it wants to do with those businesses.

Front 3

What 4 growth strategies are identified by the authors?

Back 3

1. Concentration: An organization that focuses on the primary line of business and increases the number of products offered or markets served in that primary business.
2. Vertical Integration: An organization that becomes its own supplier so it can control its inputs.
3. Horizontal Integration: A company that grows by combining with its competitors.
4. Diversification: A company combines with other companies in different, but related industries.

Front 4

What five competitive forces determine industry attractiveness and profitability?

Back 4

 Threat of new entrants. How likely is it that new competitors will come into the industry?
 Threat of substitutes. How likely is it that other industries’ products can be substituted for our industry’s products?
 Bargaining power of buyers. How much bargaining power do buyers (customers) have?
 Bargaining power of suppliers. How much bargaining power do suppliers have?
 Current rivalry. How intense is the rivalry among current industry competitors?

Front 5

What four factors distinguish types of plans?

Back 5

 Breadth
 Time Frame
 Specificity
 Frequency of Use

Front 6

Describe the eight types of plans?

Back 6

1. Strategic Plans: apply to an entire organization and establish the organization’s overall goals.
2. Operational Plans: encompass a particular operational area of an organization.
3. Long-term Plans: have a time frame beyond three years.
4. Short-term Plans: cover one year or less.
5. Directional Plans: are flexible and set out general guidelines.
6. Specific Plans: are clearly defined and leave no room for interpretation.
7. Single-use Plan: is a one-time use plan specifically designed to meet the needs of a unique situation.
8. Standing Plans: are ongoing and provide guidance for activities performed repeatedly

Front 7

What are the seven purposes of organizing?

Back 7

 Divides work to be done into specific jobs and departments.

 Assigns tasks and responsibilities associated with individual jobs.

 Coordinates diverse organizational tasks.

 Clusters jobs into units.

 Establishes relationships among individuals, groups, and departments.

 Establishes formal lines of authority.

 Allocates and deploys organizational resources.

Front 8

What are the five common forms of departmentalization?

Back 8

1. Functional: group jobs according to function.

2. Geographical: group jobs according to geographic location.

3. Product: group jobs by product line.

4. Process: group jobs on the basis of product or customer flow.

5. Customer: group jobs on the basis of specific and unique customers who have common needs.

Front 9

What is span of control?

Back 9

Span of Control: The number of employees a manager can effectively and efficiently manage.

Front 10

Differentiate between a mechanistic organization and an organic organization?

Back 10

Mechanistic Organic
High specialization Cross-functional teams
Rigid departmentalization Cross-hierarchical teams
Clear chain of command Free flow of information
Centralization Wide spans of control
High formalization Low formalozation

Front 11

What is a matrix organization?

Back 11

Matrix Structure: an organizational structure that assigns specialists from different functional departments to work one or more projects

Front 12

What is a virtual organization?

Back 12

Virtual Organization: an organization that consists of a small core of full-time employees and outside specialists temporarily hired as needed to work on projects.

Front 13

What is flextime?

Back 13

Flexible Work Hours (Flextime): A scheduling system in which employees are required to work a certain number of hours per week but are free, within limits, to vary the hours of work

Front 14

What is job sharing?

Back 14

Job sharing: the practice of having two or more people split a full-time job.

Front 15

What is a compressed workweek?

Back 15

Compressed workweek: a workweek in which employees work longer hours per day but fewer days per week

Front 16

What is telecommuting?

Back 16

Telecommuting: a job approach in which employees work at home and are linked to the workplace by computer and modem

Front 17

What is job analysis?

Back 17

Job analysis: is an assessment that defines jobs and behaviors necessary to perform them.

Front 18

What is job description?

Back 18

Job description: is a written statement that describes a job.

Front 19

What is job specification?

Back 19

Job specification: is a written statement of the minimum qualifications that a person must possess to perform a given job.

Front 20

What are the six types of selection tools?

Back 20

1.Application Forms
2.Written Tests
3.Performance-Simulation Tests
4.Interviews
5.Background Investigations
6.Physical Examinations

Front 21

What are six traditional and three tech-based training methods?

Back 21

Traditional Training Methods:

1. On-the-job
2. Job rotation
3. Mentoring and coaching
4. Experiential exercises: employees refer to training workbooks and manuals for information.
5. Workbooks/manuals
6. Classroom lectures





Technology-Based Training Methods:

1. CD-ROM/DVD/videotapes/ audiotapes/podcasts.
2. Videoconferencing/teleconferencing/satellite TV
3. E-learning

Front 22

What are seven performance appraisal methods?

Back 22

1. Written essay
• Evaluator writes a description of employee’s strengths and weaknesses, past performance, and potential; provides suggestions for improvement
• + Simple to use
• - May be better measure of evaluator’s writing ability than of employee’s actual performance

2. Critical Incident
• Evaluator focuses on critical behaviors that separate effective and ineffective performance
• + Rich examples, behaviorally based
• - Time-consuming, lacks qualification

3. Graphic Rating Scale
• Popular method that lists a set of performance factors and an incremental scale; evaluator goes down the list and rates employee on each factor
• + Provides quantitative data; not time-consuming
• - Doesn’t provide in-depth information on job behavior

4. BARS (Behaviorally Anchored Rating Scale)
• Popular method that lists a set of performance factors and an incremental scale; evaluator uses a rating scale, but items are examples of actual job behaviors
• + Focuses on specific and measurable job behaviors
• - Time-consuming, difficult to develop

5. Multi-person Comparison
• Employees are rated in comparison to others in work group
• + Compares employees with one another
• - Difficult with large number of employees; legal concerns



6. MBO
• Employees are evaluated on how well the accomplish specific goals
• + Focuses on goals, results oriented
• - Time-consuming

7. 360- Degree Analysis
• Utilizes feedback from supervisors, employees, and coworkers
• + Thorough
• - Time-consuming

Front 23

What are nine factors that influence compensation and benefits levels?

Back 23

 Company Profitability
 Size of Company
 Employee’s Tenure and Performance
 Kind of Job Performed
 Kind of Business
 Unionization
 Labor or Capital Intensive
 Management Philosophy
 Geographical Location