MGT103 CHAP 4

1) When the prices of oil came down, the demand for sport utility vehicles (SUVs) increased. Automakers chose to increase production of full-size SUVs as the profit from large vehicles is greater than that from small vehicles. Which step in the rational decision-making model is illustrated in the scenario?

A) Developing a set of rational alternatives
B) Evaluating the possible alternatives
C) Selecting the best alternative and implementing it
D) Recognizing and defining the decision situation
E) Evaluating decision effectiveness

• A
• B
• D
• C
• E

1) _____ is the extent to which a decision maker is willing to gamble when making a decision.
A) Risk propensity
B) Intuition
C) Optimization
D) Satisficing
E) Bounded rationality

• A
• B
• D
• C
• E

1) One disadvantage of group decision making is that:
A) very little information and knowledge are available.
B) one person may dominate the group.
C) fewer alternatives are generated.
D) it reduces the chances of acceptance of the final decision.
E) it prevents groupthink from developing.

• A
• B
• D
• C
• E

1) At Gamma Inc., there are separate departments of employees who specialize in sales, service maintenance, customer service, and accounting. What form of departmentalization does Gamma use?
A) Functional departmentalization
B) Product departmentalization
C) Location departmentalization
D) Customer departmentalization
E) Sequential departmentalization

• A
• B
• D
• C
• E

Which of the following is an accurate comparison between tall organizations and flat organizations?
A) Tall organizations foster employee morale better than flat organizations.
B) Tall organizations have fewer managers than flat organizations.
C) Tall organizations foster more communication problems than flat organizations.
D) Tall organizations place excessive administrative responsibilities on managers than flat organizations.
E) Tall organizations foster more productivity than flat organizations.

• A
• B
• D
• C
• E

_____ is defined as the process of linking the activities of the various departments of an organization.
A) Centralization
B) Specialization
C) Decentralization
D) Coordination
E) Delegation

• A
• B
• D
• C
• E

At Delta Corp. the manufacturing and design department frequently consults with the research and development department and the marketing and sales department regularly interacts with the manufacturing and design department. This scenario illustrates _____ at Delta.
A) coordination
B) delegation
C) job rotation
D) job specialization
E) centralization

• A
• B
• D
• C
• E

_____ exists when activities flow both ways between units.
A) Sequential interdependence
B) Pooled interdependence
C) Structural interdependence
D) Reciprocal interdependence
E) Total interdependence

• A
• B
• D
• C
• E

At Libra Motors Inc. operations managers give availability information to the dealerships department. When the dealerships department has a specific order, it is sent to the operations department. Which of the following concepts is illustrated in the scenario?
A) Sequential interdependence
B) Product departmentalization
C) Pooled interdependence
D) Reciprocal interdependence
E) One-way interdependence

• A
• B
• D
• C
• E

In organizations using _____, the product is manufactured in assembly-line fashion by combining component parts into another part or finished product.
A) job rotation technology
B) large-batch technology
C) unit technology
D) continuous-process technology
E) small-batch technology

• A
• B
• D
• C
• E