5.1 Intro to Operations Management

Which key term?

• Describes an organization that relies on more machinery and equipment to produce its output, rather than labour.

• labour intensive

• capital intensive

• productivity

• sustainability

Which key term?

• Describes an organization that relies more on labour to produce its output, rather than machinery and capital equipment.

• labour intensive

• capital intensive

• productivity

• sustainability

Which key term?

These are the human, physical, and financial resources needed to produce any good or service. They comprise of land, labour, capital, and enterprise.

• economic sectors

• production methods

• Factors of production

• entrepreneurial goals

Which key term?

This is a measure of a firm’s efficiency level, i.e., how well things are done in the organization. It calculates the rate at which inputs are transformed into outputs (good and services).

• Profitability

• Productivity

• Sustainability

• Liquidity

• - TRUE OR FALSE -
  The operations management department in an organization is typically run by the Chief Executive officer.

• True

• False

Answer explanation

Chief Operations Officer (COO)

• - TRUE OR FALSE -

• The teaching profession is an example of labour-intensive production.

• True

• False

Answer explanation

The teaching profession is cited as an example of labour-intensive production because staff salaries account for a significant portion of the operational costs for educational establishments such as schools and universtities.

Factors of production do not include:

• Labour

• Land

• Capital

• Innovation

What would be the most suitable leadership style for managing a university professor?

• Autocratic

• Democratic

• • Laissez-faire

• Paternalistic

Answer explanation

Laissez-faire would be the most appropriate style for several reasons. University professors require the freedom to carry out their research without strict control from managers.

Which of the following is a hygiene factor according to Herzberg’s theory?

• Recognition

• Job security

• Personal Growth

• Achievement

Answer explanation

Hygiene factors refer to Maslow’s primary needs: physiological needs and safety needs. According to Herzberg, the absence or inadequacy of these factors causes dissatisfaction, but their presence has little effect on long-term satisfaction. 

Identify the concept that focuses on business activity to meet the needs of the current generation without jeopardizing the needs of future generations. 

• Change

• Ethics

• Sustainability

• Creativity

Answer explanation

Sustainability focuses on business activity to meet the needs of the current generation without jeopardising the needs of future generations holistically.