Q&A Hero

Q: If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has one machine capable of producing 4,500 units per week, how many similar machines might you plan to acquire?

Q: According to Greiner's model of organizational growth, during the "growth through coordination" stage an organization experiences crisis of ________. A) autonomy B) inaction C) red tape D) control

Q: If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has trained labor and equipment sufficient to produce 150,000 units per month is the capacity cushion positive or negative?

Q: According to Greiner's model of organizational growth, to resolve the crisis of control, an organization enters into the "growth through ________" stage. A) delegation B) coordination C) creativity D) direction

Q: A chance node on a decision tree has four possible outcomes each worth $100,000. The probabilities of the outcomes occurring are assessed as 10%, 27%, 43% and 20%. What is the expected value of this chance node? $100,000

Q: According to Greiner's model of organizational growth, which of the following statements is true regarding the "growth through delegation" stage? A) This is the first stage of growth in the Greiner's model of organizational growth. B) During this stage an organization experiences a crisis of red tape. C) Organizations solve the crisis occurring in this stage by moving into the "growth through coordination" stage. D) This stage is immediately followed by the "growth through creativity" stage.

Q: At a decision point in a decision tree, which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000 with a probability of 90%; the expected benefit of selecting machine B is $80,000 with a probability of 50% and the expected benefit of selecting machine C is $60,000 with a probability of 75%? A. Machine A B. Machine B C. Machine C D. You would be indifferent between machines A and C E. You would be indifferent between machines A and B

Q: According to Greiner's model of organizational growth, an organization experiences a crisis of control in the "growth through ________" stage of Greiner's model. A) coordination B) direction C) delegation D) creativity

Q: Compared with a service operation, which of these statements is true for a manufacturing operation's capacity? A. Manufacturing is more dependent on time and location B. manufacturing is subject to more volatile demand fluctuations C. Utilization more directly impacts quality D. Demand can be smoothed by inventory policies E. Manufacturing capacity is more capable of reacting to demand fluctuations

Q: Many of the top software engineers in an organization left the company because they felt lost in the growing organizational bureaucracy and became frustrated with their lack of autonomy. According to Greiner's model of organizational growth and based on the given information, the company is most likely to be in the "growth through ________" stage of organizational growth. A) creativity B) association C) direction D) integration

Q: According to Greiner's model of organizational growth, which of the following stages immediately follows the "growth through direction" stage? A) growth through creativity B) growth through delegation C) growth through collaboration D) growth through coordination

Q: Which of the following models uses a schematic model of the sequence of steps in a problem and the conditions and consequences of each step? A. Linear programming B. Johnson sequencing rules C. Decision trees D. Venn diagrams E. Decision mapping

Q: Which of the following is not a step used in determining production capacity requirements? A. Forecasting to predict product sales B. Forecasting raw material usage C. Projecting availability of labor D. Calculating equipment and labor needs E. Projecting equipment availability

Q: According to Greiner's model of organizational growth, during the "growth through direction" stage an organization experiences a crisis of ________. A) leadership B) control C) autonomy D) red tape

Q: When deciding to add capacity to a factory which of the following need not be considered? A. Maintaining system balance B. The frequency of capacity additions C. Use of external capacity D. Immediate product demand E. Availability of raw materials

Q: In Greiner's model, the "growth through creativity" stage is immediately followed by the "growth through ________" stage. A) direction B) coordination C) delegation D) collaboration

Q: The way to build greater flexibility in your workers is to do which of the following? A. Pay higher wages to motivate a willingness to do a variety to tasks B. Require a broader range of training C. Provide a wide variety of technology to augment workers skills D. Institute a "pay for skills" program E. Use part-time employees with specialized skills as needed

Q: Which of the following is the first stage of growth according to Greiner's model of organizational growth? A) growth through coordination B) growth through direction C) growth through delegation D) growth through creativity

Q: The capacity focus concept can be put into practice through a mechanism called which of the following? A. Best operating level (BOL) B. Plants within plants (PWP) C. Total quality management (TQM) D. Capacity utilization rate (CUR) E. Zero-changeover-time (ZXT)

Q: According to Greiner's model, an organization experiences crisis of leadership in "growth through ________" stage. A) collaboration B) creativity C) coordination D) delegation

Q: Which of the following controls an organization's behavior when it is in the "growth through creativity" stage of Greiner's model? A) organizational culture B) organizational structure C) rules and standard operating procedures D) industrial benchmarking

Q: If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity cushion? A. 33 percent B. 75 percent C. 90 percent D. 100 percent E. 133 percent

Q: ________ proposes that during the process of organizational growth each stage ends with a crisis that must be resolved before the organization can advance to the next stage. A) Population ecology model B) Institutional theory C) Greiner's model D) Transaction cost theory

Q: If the actual output of a piece of equipment during an hour is 500 units and it's best operating level is at a rate of 400 units per hour, which of the following is the capacity utilization rate? A. 0.75 B. 1.00 C. 1.25 D. 1.33 E. 100

Q: Which of the following is one of the five stages in Greiner's model of growth? A) direction B) integration C) association D) centralization

Q: If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity utilization rate? A. 0.75 B. 1.00 C. 1.33 D. 2.33 E. 300

Q: Organizations indirectly acquire specific sets of values and norms through membership in industry, trade, and professional associations. Through meetings, personal contacts, and publications, these associations promote specific ideas and norms to their members. This leads to ________ isomorphism. A) mimetic B) reciprocal C) coercive D) normative

Q: Capacity planning involving consideration of production scheduling and inventory position is characterized by which one of the following time durations? A. Intermediate-range B. Long-range C. Short-range D. Current E. Upcoming

Q: Managers and employees frequently move from one organization to another and bring with them the norms and values of their former employers. This leads to ________ isomorphism. A) reciprocal B) coercive C) normative D) mimetic

Q: Capacity planning involving acquisition or disposal of fixed assets such as buildings, equipment or facilities is considered as which one of the following planning horizons? A. Intermediate-range B. Long-range C. Short-range D. Current E. Upcoming

Q: Isomorphism is ________ when organizations come to resemble one another over time because they indirectly adopt the norms and values of other organizations in the environment. A) coercive B) mimetic C) normative D) reciprocal

Q: Capacity planning involving hiring, layoffs, some new tooling, minor equipment purchases and subcontracting is considered as which one of the following planning horizons? A. Intermediate range B. Long range C. Short range D. Current E. Upcoming

Q: An auto manufacturer increased its effectiveness by implementing total quality management (TQM). Many other companies have intentionally imitated this manufacturer in order to increase their effectiveness. This is an example of ________ isomorphism. A) coercive B) mimetic C) normative D) natural

Q: The smaller the capacity cushion the better.

Q: ________ isomorphism results when organizations are forced to adopt nondiscriminatory equitable hiring practices because they are mandated by law. A) Coercive B) Mimetic C) Normative D) Natural

Q: A new organization tends to imitate the structure and processes of successful organizations when the environment is highly uncertain and so it needs to search for a structure, strategy, culture, and technology that will increase its chance of survival. This process of imitation results in ________ isomorphism. A) mimetic B) normative C) coercive D) natural

Q: Low rates of capacity utilization in service organizations are never appropriate.

Q: In a decision tree, the only time probabilities are applied to a decision node is when the decision is being made by someone else such as your customer or your competitor.

Q: ________ is the process by which organizations in a population become more alike or similar. A) Natural selection B) Cultural clustering C) Organizational isomorphism D) Organizational institutionalization

Q: An organization that increasingly depends on other organizations will tend to adopt their values and norms so it will become increasingly similar to them. This is an example of ________. A) coercive isomorphism B) environmental institutionalization C) normative isomorphism D) natural selection

Q: The probability of each occurrence at a decision tree chance node is the reciprocal of the number of possibilities at the chance node.

Q: In solving a decision tree problem, calculations start at the ends of the "branches" of the tree and work backwards to the base "trunk" of the tree.

Q: Which of the following theories proposes that an organization must gain legitimacy in the eyes of stakeholders in order to grow and survive? A) Greiner's theory B) population ecology theory C) institutional theory D) contingency theory

Q: A decision tree problem does not need probabilities or payoffs to generate a solution.

Q: The ________ is the set of values and norms that govern the behavior of a population of organizations. A) environmental benchmark B) cultural cluster C) population density D) institutional environment

Q: A capacity cushion is the amount of capacity less than expected demand.

Q: Organizational ________ is the life cycle stage in which organizations develop value-creation skills and competences that allow them to acquire additional resources. A) growth B) clustering C) birth D) decline

Q: Sharing capacity is a common source of external capacity.

Q: ________ is the process that ensures the survival of the organizations that have the skills and abilities that best fit the environment. A) Triangulation B) Stimulus generalization C) Natural selection D) Habituation

Q: Subcontracting is a common source of external capacity.

Q: Early in an environment, as a niche develops and new resources become available, new organizations that begin to operate in this niche are likely to be ________. A) K-specialists B) r-specialists C) K-generalists D) r-generalists

Q: The frequency of additions to productive capacity should balance the costs of upgrading too frequently and the costs of upgrading too infrequently.

Q: A large, established organization pursues a broad range of resources in many niches. This company created a new niche in which a new firm could enter and survive. Which of the following strategies is most likely to be used by the organization that enters the newly created niche? A) r-specialist B) r-generalist C) K-specialist D) K-generalist

Q: Economies of scope exist when multiple products can be produced at a lower cost in combination than they can separately.

Q: An entrepreneur designs a new product. Which of the following strategies is most likely to be pursued by the entrepreneur? A) r-specialist B) r-generalist C) K-specialist D) K-generalist

Q: Capacity flexibility means having the ability to rapidly increase or decrease production levels or to shift production capacity quickly from one product or service to another.

Q: Which of the following statements is most likely to be true about specialists? A) Specialists compete for resources in many or all niches in an environment. B) Typically, a specialist is better able to survive in an uncertain environment than a generalist. C) Specialists are often able to develop core competences that allow them to outperform generalists in that niche. D) As compared to generalists, specialists produce a wider range of products.

Q: The PWP concept permits finding the best operating level for each department of the organization and thereby carries the focus concept down to the operating level.

Q: ________ concentrate their competences and skills to compete for resources in a single niche. A) Organizations pursuing r-strategy B) Generalist organizations C) Organizations pursuing K-strategy D) Specialist organizations

Q: The ultimate in plant flexibility is a one-hour-changeover time plant.

Q: Which of the following statements is most likely to be true about generalists? A) Generalists concentrate their competences and skills to compete for resources in a single niche. B) Generalists are more likely to use matrix organizational structure than specialists. C) Generalists are more likely to use product differentiation strategy than the specialists. D) Generalists can often outcompete specialists when there is considerable uncertainty in the environment.

Q: The point at which the scale economy curve and the experience curve intersect is called the capacity optimum.

Q: ________ use their well-developed competences to compete for resources in many or all niches in an environment. A) Organizations following an r-strategy B) Generalist organizations C) Organizations following a K-strategy D) Specialist organizations

Q: Economies of scale and the experience curve have opposite effects on capacity.

Q: A large video company observes that smaller companies are having success with pay-per-view movies and decides to enter the pay-per-view market. According to the population ecology theory, which of the following strategies is being followed by the large video company? A) r-strategy B) K-strategy C) specialist strategy D) generalist strategy

Q: When plotted on a graph, the experience curve can't be expressed as logarithm.

Q: According to the population ecology theory, which of the following strategies advocates entering a new environment early? A) r-strategy B) K-strategy C) generalist strategy D) specialist strategy

Q: The experience curve is states that the more experience you have in a particular activity, the less surprised you will be when something goes wrong.

Q: According to the population ecology theory, which of the following strategies advocates entering an environment late, after the uncertainty in that environment is reduced and the correct way to compete is apparent? A) r-strategy B) generalist strategy C) K-strategy D) specialist strategy

Q: At some point, the size of a growing plant can become too large and diseconomies of scale become a capacity planning problem.

Q: Population ecologists have identified two sets of strategies that organizations can use to gain access to resources and enhance their chances of survival in the environment. Which of the following is one of these strategies? A) vertical integration strategy B) related diversification strategy C) r-strategy D) cost leadership strategy

Q: The objective of strategic capacity planning is to determine the overall capacity level of capital intensive resources (including facilities, equipment and overall labor force size) that best supports the company's long-range competitive strategy.

Q: The benefits an organization derives from being an early entrant into a new environment are called ________. A) whistle-blower's advantages B) advantages of clustering C) first-mover advantages D) advantages of boundary spanning

Q: The objective of strategic capacity planning is to determine the overall capacity level of capital intensive resources (including facilities, equipment and overall labor force size) that best supports the company's short-range competitive strategy.

Q: Which of the following statements is most likely to be true regarding an organization that follows a K-strategy? A) Typically, organizations use a K-strategy when they have a monopoly in the industry. B) Organizations following a K-strategy always concentrate their competences and skills to compete for resources in a single niche. C) Typically the K-strategy is used by organizations for the introduction of highly complex technical products. D) Organizations following a K-strategy wait to enter a new environment until the uncertainty in that environment is reduced.

Q: Maximum practical capacity is defined by the federal Bureau of Economic Analysis as "That output attained within the normal operating schedule of shifts per day and days per week including the use of high-cost inefficient facilities".

Q: Which of the following statements is most likely to be true regarding an organization that follows an r-strategy? A) Organizations following an r-strategy always concentrate their competences and skills to compete for resources in a single niche. B) Typically, organizations use an r-strategy when they are operating in an oligopoly. C) An organization following an r-strategy obtains first-mover advantages. D) Typically, an r-strategy is used by that organization which has diversified its business in unrelated areas.

Q: Maximum practical capacity is defined by the federal Bureau of Economic Analysis as "That output obtained within the normal operating schedule of shifts per day and days per week excluding the use of high-cost and inefficient facilities".

Q: According to the population ecology theory, the number of organizational births in a new environment is rapid at first because ________. A) the organizations have very few external stakeholders B) there is an increase in the knowledge and skills available to generate similar new organizations C) the environment of the organizations is highly stable D) the bargaining power of the suppliers of the organizations is high

Q: The capacity utilization rate is found by dividing best operating level by capacity used.