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Q:
A ________ structure is the system of interrelated beliefs, preferences, expectations, and values that a person uses to define problems and events.
A) cognitive
B) affective
C) normative
D) mimetic
Q:
It is not necessary that a well-designed service system be robust.
Q:
When an organization uses a ________ approach to knowledge management, it ensures that knowledge is carefully collected, analyzed, and stored in databases where it can be retrieved easily by users who input organization-specific commands and keywords.
A) cognitive
B) personalization
C) codification
D) systems thinking
Q:
One characteristic of a well-designed service system is that it is cost-effective.
Q:
By developing a knowledge management system, managers want to provide employees with a step by step procedure on how to solve problems. They want to do this because most of their problems are recurring events, and standard procedures work well. This information indicates that the organization is planning to implement a ________ approach to knowledge management.
A) systems thinking
B) codification
C) personalization
D) learning organization
Q:
Service guarantees can be used at the service design stage to focus the firm's delivery system on the things it must do well to satisfy the customer.
Q:
By developing a knowledge management system, managers want to provide employees more with information on "who to go to" to solve a specific problem rather than describing the steps to solve a problem. They want to do this because most of their problems are too complex to rely on standard procedures. This information indicates that the organization is planning to implement a ________ approach to knowledge management.
A) systems thinking
B) codification
C) personalization
D) learning organization
Q:
Poka-Yoke is roughly translated from Japanese as "Avoid Mistakes".
Q:
An organization is most likely to pursue a codification approach to knowledge management when ________.
A) the organization needs to provide customized products or solutions to clients
B) the organization operates in a rapidly changing technical environment
C) employees are required to rely much more on know-how, insight, and judgment to make decisions
D) the organization wants to collect best practices and SOPs that can be drawn on by anyone who needs them
Q:
When an information system is designed according to a ________ approach to knowledge management, it shows employees who in the organization might possess the knowledge they might need or who might have confronted a similar problem in the past.
A) personalization
B) cognitive
C) codification
D) systems thinking
Q:
Poka-Yoke is roughly translated from Japanese as "Quality Management".
Q:
An organization is most likely to pursue a personalization approach to knowledge management when ________.
A) the different functions in the organization provide standardized information which can be used by other functions for mutual adjustment
B) the organization wants to collect, analyze, and store knowledge in databases where it can be retrieved easily by users who input organization-specific commands and keywords.
C) the organization operates in a rapidly changing technical environment and provides customized products and solutions to clients
D) the organization wants to implement standard rules and operating procedures
Q:
Poka-Yokes are procedures that block the inevitable mistake from becoming a service defect.
Q:
According to the principle of systems thinking, to create a learning organization, ________.
A) decision-making should be centralized
B) managers must recognize the effects of one level of learning on the others
C) span of control should be narrow
D) middle and lower-level managers should be discouraged from risk taking
Q:
The "service blueprint" is a classification of services.
Q:
According to Kotter and Heskett, ________ cultures are those that value innovation and encourage and reward experimenting and risk taking by middle and lower-level managers.
A) associative
B) inert
C) mechanistic
D) adaptive
Q:
The service-system design matrix identifies six forms of service encounters.
Q:
Which of the following statements is true regarding an adaptive culture?
A) An adaptive culture is cautious and conservative.
B) Organizations with adaptive cultures are less likely to survive in a changing environment than organizations with inert cultures.
C) According to Kotter and Heskett, organizational learning is higher in organizations with adaptive cultures than that in organizations with inert culture.
D) An adaptive culture discourages lower and middle level managers from taking risks.
Q:
The service-system design matrix identifies five alternative forms of service encounters.
Q:
Which of the following statements is most likely to be true regarding an inert culture?
A) According to Kotter and Heskett, organizational learning is higher in organizations with inert cultures than that in organizations with adaptive culture.
B) Inert cultures encourage and reward experimentation and risk taking by middle and lower-level managers.
C) Organizations with inert cultures are less likely to survive in a changing environment than organizations with adaptive cultures.
D) An inert culture is typically found in an organization with organic structure.
Q:
Marketing is responsible for both the "service promise" and "fulfillment of service promise" elements of Services.
Q:
According to Kotter and Heskett, ________ cultures are cultures that are cautious and conservative and do not encourage risk taking by middle and lower-level managers.
A) innovative
B) inert
C) conservative
D) adaptive
Q:
It is difficult to separate the operations management functions from marketing in services.
Q:
Because little or no inventory is carried in a service operation, it is easy to separate the operations management functions from marketing in services.
Q:
The design of a(n) ________ structure facilitates exploitative learning.
A) organic
B) product team
C) mechanistic
D) matrix
Q:
11 When recovering from a defective service encounter a poor treatment from a server calls for material compensation.
Q:
Senge has argued that for organizational learning to occur, each of its members needs to develop a sense of personal mastery, by which he means that organizations should ________.
A) use centralized decision-making and ensure that only the top-management team has the decision-making authority
B) increase the extent of division of labor so that all employees become efficient at the tasks allocated to them
C) encourage managers to set ambitious goals for their subordinates
D) empower all employees and allow them to experiment and create and explore what they want
Q:
When recovering from a defective service encounter, poor treatment from a server calls for an apology.
Q:
Which of the following organizational learning strategies, proposed by James March, involves organizational members learning ways to refine and improve existing organizational activities and procedures to increase effectiveness?
A) exploration
B) association
C) exploitation
D) reciprocation
Q:
When recovering from a defective service encounter a botched task calls for material compensation.
Q:
Which of the following organizational learning strategies, proposed by James March, involves organizational members searching for and experimenting with new kinds or forms of organizational activities and procedures to increase effectiveness?
A) exploration
B) exploitation
C) reciprocation
D) association
Q:
When recovering from a defective service encounter a botched task calls for an apology.
Q:
Which of the following is an example of organizational learning that involves exploration?
A) a supplier implements a TQM program
B) a steel mill refines its production processes
C) an automobile manufacturer enters into a strategic alliance
D) a software services company modifies its existing leave policy
Q:
A service system with a high degree of customer contact is less difficult to control than a low degree of customer contact service system.
Q:
Which of the following are the two principal types of organizational learning strategies proposed by James March?
A) incremental and radical
B) structured and unstructured
C) exploration and exploitation
D) association and differentiation
Q:
When an organization is using the ________ model of decision-making, it becomes an "organized anarchy" in which the decision about which alternative to select depends on which manager or coalition has the most influence or power to sway other decision makers at that moment.
A) incrementalist
B) Carnegie
C) garbage-can
D) rational
Q:
The customer is (or should be) the second most important focal point of all decisions in a service organization.
Q:
The garbage-can approach to organizational decision-making is clearly the opposite of the approach described by the ________ model.
A) rational
B) unstructured
C) Carnegie
D) incremental
Q:
A service business is an organization whose primary business requires interaction with customers to produce the service.
Q:
Which of the following statements is true regarding the unstructured model of decision-making?
A) The unstructured model recognizes that decision-making takes place in a series of small, incremental steps that collectively have a major effect on organizational effectiveness over time.
B) In an environment that changes suddenly or abruptly, the unstructured model prevents managers from changing quickly enough to meet new conditions.
C) The unstructured model explains why and how managers can improve their programmed decision-making over time.
D) According to the unstructured model, decision-making is a linear, sequential process.
Q:
The term "encounter" is defined as meeting in conflict or battle and is used to also designate meetings between consumers and service systems.
Q:
The ________ model of decision-making turns the decision-making process around and argues that managers are as likely to start decision-making from the "solution side" as from the "problem side." In other words, decision makers may propose solutions to problems that do not exist; they create a problem they can solve with solutions that are already available.
A) Carnegie
B) rational
C) incrementalist
D) garbage-can
Q:
Services often take the form of cycles of encounters involving face-to-face interactions.
Q:
Which of the following decision-making models explains why and how managers can improve their programmed decision-making over time?
A) Carnegie model
B) rational model
C) unstructured model
D) incrementalist model
Q:
Effective management of services requires a clear focus on understanding operations, so much so, that it may even require the exclusion of consideration of marketing or personnel.
Q:
Which of the following models of organizational decision-making, developed by Henry Mintzberg and his colleagues explains why and how managers make nonprogrammed decisions?
A) rational model
B) incrementalist model
C) Carnegie model
D) unstructured model
Q:
Most services contain a mix of tangible and intangible attributes known as the service package which is the major output of the development process.
Q:
Which of the following organizations is most likely to use the incrementalist model for decision-making?
A) a biotechnology company that operates in a dynamic environment
B) a dominant manufacturer of printing papers that operates in a stable environment
C) a software services company that operates in a very competitive environment
D) a pharmaceutical company that operates in a complex and highly uncertain environment because it has many groups of stakeholders
Q:
Differentiate between a workcenter and a manufacturing cell?
Q:
Which of the following statements is true regarding the incrementalist model?
A) According to this model decision-making is a process that may evolve unpredictably in an unstructured way and it forces decision makers to think in a haphazard and intuitive way.
B) This model works best in an environment that changes suddenly or abruptly.
C) This model implies that managers rarely make major decisions that are radically different from decisions they have made before.
D) According to this model, decision makers weigh every possible alternative course of action and choose the best solution.
Q:
Describe the implications of the product-process matrix for process design in a competitive situation?
Q:
According to the ________ model of organizational decision-making, when selecting a set of new alternative courses of action, managers tend to choose those that are only slightly different from those used in the past, thus lessening their chances of making a mistake.
A) rational
B) incrementalist
C) Carnegie
D) garbage-can
Q:
Give an example of a project layout?
Q:
Which of the following statements is true regarding the Carnegie model?
A) The Carnegie model ignores the variation in managers' preferences and values and assumes different managers will evaluate different alternatives in the same way.
B) The Carnegie model offers a less accurate description of how decision-making takes place in an organization than does the rational model.
C) The Carnegie model recognizes that decision-making takes place in an uncertain environment where information is often incomplete and ambiguous.
D) The Carnegie model assumes that managers generate the full range of possible alternatives before making decisions.
Q:
A manufacturer has identified the options for acquiring a machined part. It can make the part on a numerically controlled lathe for $150 per unit (including materials.) It can make the part on a standard lathe for $250 per unit (also including materials.) It can make the part on a machining center for $50 per unit (also including materials.) The manufacturer can acquire a standard lathe for $10,000. It could acquire a numerically controlled lathe for $100,000. A machining center would cost $350,000. It has also found that it can purchase the part for $350 per unit?
Q:
Assume that you are offered a new piece of equipment for $10,000. The equipment will produce 10,000 units per year with a margin of $6.00 per unit. Demand for the product being produced has been 2,000 units per year. Your current equipment is fully depreciated and can produce the 2,000 units per year at but at a margin of only $4.00 per unit. Under what conditions should you purchase the new equipment?
Q:
The term "________" refers to a limited capacity to process information.
A) bounded rationality
B) planning fallacy
C) hindsight bias
D) cryptomnesia
Q:
Assume a fixed cost for a process of $100,000. The variable cost to produce each unit of product is $10 and the selling price for the finished product is $50. Ignoring inventory, how many units must the firm sell to break-even?
Q:
Which of the following is an assumption of the Carnegie model of decision-making?
A) All the information required for decision-making is available.
B) decision-making is affected by the preferences and values of decision makers.
C) Before making a decision, managers generate the full range of possible alternatives.
D) Solution is chosen by unanimous agreement among all the stakeholders.
Q:
Which of the following basic types of process structures is one which similar equipment or functions are grouped together?
A. Project
B. Workcenter
C. Manufacturing cell
D. Assembly line
E. Continuous process
Q:
Satisficing occurs when decision makers ________.
A) evaluate all the possible courses of action and their consequences and select the optimal solution
B) try to minimize conflict and reach a consensus without critical evaluation of alternative ideas or viewpoints
C) view two options as more dissimilar when evaluating them simultaneously than when evaluating them separately
D) conduct limited information searches to identify problems and alternative solutions
Q:
Which of the following basic types of process structures is one which equipment or work processes are arranged according to the progressive steps by which the product is made?
A. Project
B. Workcenter
C. Manufacturing cell
D. Assembly line
E. Continuous process
Q:
The rational model of decision-making assumes that ________.
A) managers do not have access to all the information necessary to make the best decision
B) managers have only a limited ability to process the information required to make decisions
C) different managers have different preferences and values and will use different rules to decide on the best alternative
D) managers are aware of all alternative courses of action and their consequences
Q:
Which of the following is not a basic type of process structure?
A. Product-process matrix
B. Workcenter
C. Manufacturing cell
D. Assembly line
E. Continuous process
Q:
Which of the following statements is true regarding nonprogrammed decision-making?
A) Nonprogrammed decision-making is performed with the help of standard operating procedures.
B) Nonprogrammed decision-making involves selecting the most effectiveeasy, repetitive, and routineoperating procedures to handle an organization's ongoing value-creation activities.
C) Nonprogrammed decision-making forces managers to rely on judgment, intuition, and creativity to solve organizational problems.
D) Nonprogrammed decision-making requires much less search for information to find solutions than does programmed decision-making.
Q:
Which of the following is a basic type of process structure?
A. Process flow diagram
B. Product matrix
C. Process matrix
D. Workcenter
E. Manual assembly
Q:
Which of the following statements is true regarding programmed decision-making?
A) Programmed decision-making requires much more search for information to find solutions than does nonprogrammed decision-making.
B) Programmed decision-making forces managers to rely on judgment, intuition, and creativity to solve organizational problems.
C) Programmed decision-making is unstructured in nature and it is used by an organization to find solutions to changing and uncertain conditions.
D) Programmed decision-making allows an organization to increase its efficiency and reduce the costs of making goods and services.
Q:
In a factory, machine A has a ten minute set-up time per batch and a two minute per unit run time. Machine B performs the identical function but has a set-up time of thirty minutes and a one minute run time per unit. The factory makes products in batches ranging from one unit to one hundred units. Assuming capacity is not a limitation on either machine, on which batches should machine B be used?
A. All batches should be run on machine B
B. Batches of more than 20 units should be run on machine B
C. Batches of fewer than 80 units should be run on machine B
D. Batches with up to 50 units should be run on machine B
E. No batches should be run on machine B
Q:
Nonprogrammed decisions are ________.
A) repetitive
B) unstructured
C) easy
D) routine
Q:
You are hired as a consultant to decide if your client should purchase a new, highly specialized, piece of equipment. The product to be produced by this equipment is forecast to have a total world wide demand of 15,000 units over the entire product life. The initial investment to acquire and install the equipment is $256,000. The variable cost to produce each unit will be $15 and the selling price for the finished product will be $30. Which of the following best describes the situation the firm is facing?
A. The company will recover its' initial investment
B. The company's total margin will be less than its' investment
C. It's a good investment
D. The break-even is lower than the 15,000 units that are expected to sell
E. All of the above
Q:
Programmed decisions are ________.
A) creative
B) novel
C) unstructured
D) repetitive
Q:
Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35 and the selling price for the finished product is $50. Which of the following is the number of units that has to be produced and sold to break-even?
A. 5,000 units
B. 6,000 units
C. 8,000 units
D. 11,000 units
E. 12,000 units
Q:
Which of the following terms refers to the process of responding to a problem by searching for and selecting a solution or course of action that will create the most value for organizational stakeholders?
A) organizational learning
B) organizational isomorphism
C) organizational decision-making
D) organizational development
Q:
A collateral organizational structure is an informal organization of managers set up parallel to the formal organizational structure to "shadow" the decision-making and actions of managers in the formal organization.
Q:
Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10 and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break-even?
A. 500 units
B. 667 units
C. 790 units
D. 900 units
E. 1,000 units
Q:
Top-management teams function most effectively when their membership is stable and there is not too much entry into or departure from the team.
Q:
What is sometimes humorously referred to as a "gozinto chart"?
A. Assembly drawing
B. Assembly chart
C. Process flowchart
D. Operation and route sheet
E. Organization charts
Q:
A graphic used in process flow design depicting an exploded view of a product and its component parts is which of the following?
A. Route sheet
B. Gantt chart
C. Assembly drawing
D. Simo chart
E. Packing list
Q:
In a circle configuration of a top-management team, organizational learning is decreased because managers from the different functions report separately to the CEO.
Q:
The major difference between the project and the assembly line categories of process flow structures is which of the following?
A. The size of the product
B. Discrete parts moving from workstation to workstation
C. Highly specialized equipment
D. Being a Virtual Factory
E. The product's volume and standardization