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1. (Optional) Sign up for LearnSmart
and work the chapter 8-10 and 1316 decks down to zero.
2. Carefully read every assigned page,
taking notes if that’s your style.
3. Make sure you know the correct
answer to every True/False question
that appears in the lecture slides
(including this lecture!)
7. Master the vocabulary flashcards
available at the “Student Online
Learning Center” for each chapter;
in the sense that if given the
definition, you can give the term
for each one.
4. Review every question you missed on
the Catalyst quizzes.
5. Take the practice quizzes (one per
chapter) available at the “Student
Online Learning Center”.
6. Review your lecture notes.
8. Read the script in the “with script”
version of the PowerPoint slides.
9. Get at least 6 hours of sleep the
night before.
Chapter 8: True or False?
Max Weber was a
proponent of nepotism
in business
organizations.
The practice among those
with power or influence of
favoring relatives or
friends, especially by
giving them jobs.
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Chapter 8: True or False?
Make
of your firm a
meritocracy (rule by the most
qualified)
Stamp
out
nepotism
Nepotism
Rob is a middle manager who
spends all of his time devising
ways to implement the ideas of
top management. Max Weber
would have called Rob a
bureaucrat.
8-7
Chapter 8: True or False?
Fayol’s principle of esprit de
corps says that employees
should be divided into small
groups that can be directed
efficiently by a single
manager.
A spirit of pride and loyalty should
be created among people in the
firm. Managers should pay
particular attention to fostering
in their workers a sense of pride
in the work of their department,
and a sense of loyalty to the
members of that department.
Chapter 8: True or False?
Fayol believed that
managers should treat
employees and peers
with respect and justice.
A manager should treat
employees and peers
with respect and
justice.
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Chapter 8: True or False?
Span of control refers to
the number of different
markets a business can
serve efficiently.
Optimal span of control: The maximum
number of subordinates a given
manager or supervisor can supervise
while still being fully effective in their
position.
Actual span of control: The actual
number of subordinates that currently
report to a given manager or supervisor.
Chapter 8: True or False?
In a line-and-staff
organization, staff
positions are temporary
jobs to train new line
managers.
• Staff Personnel -- Employees who advise and assist
line personnel in meeting their goals, and include
marketing research, legal advising, IT and human
resource employees.
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Chapter 8: True or False?
Team participants in a
matrix organization
model may report to
two managers.
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Chapter 8: True or False?
The informal
organization is created
by the decisions of top
management.
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Chapter 8: True or False?
While most companies have a
formal organization
structure, only poorly
managed firms also have an
informal organization.
• Informal Organization -- The system that
develops spontaneously as employees meet and
form cliques, relationships, and lines of authority
outside the formal organization.
• The informal
organization is never
captured or reflected
in the official
organization charts or
other documents of
the company.
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Chapter 8: True or False?
Chapter 9: True or False?
The grapevine refers to the
formal channel used for
confidential communications
between members of top
management.
Companies such as IBM
prefer to stay the course and
continue to compete by
selling products instead of
services.
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Chapter 9: True or False?
“Now no company offers more
Information Technology services
than IBM…By switching IBM’s
focus from production to
services…Sam Palmisano has led
his company into the fastestgrowing segment of the global
market.”
Firms that specialize in
accounting, finance, and
management consulting
are all part of the service
sector.
Chapter 9: True or False?
“...in the service sector…toppaying jobs already exist in
business services such as
accounting, finance, and
management consulting.”
An intermittent production
process is characterized by
long production runs that
turn out finished goods over
time.
Chapter 9: True or False?
A production process in
which the production
run is short and the
machines are changed
frequently to make
different products.
When it comes to location
decisions, labor costs are no
longer an important
consideration for most
manufacturing firms.
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Chapter 9: True or False?
Primary drivers

Availability of cheap & skilled
labor
◦ Which is in turn affected by “quality of life”
factors: weather, crime, home prices, quality
of local schools, etc.

(and) Cheap
low rents)
Land (which produce
Many state and local
governments offer tax
incentives and
government services to
attract businesses.
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Chapter 9: True or False?
One big incentive to locate in a
particular city or state is the tax
situation there and degree of
government support…(M)any
compete fiercely by offering
companies tax reductions and
other support…so they will
locate there.”
If a company achieves Six
Sigma standards, they
automatically win the
Malcolm Baldrige award.
A quality system that allows
only 3.4 defects per million
opportunities.
• To qualify, a company has to show quality in
seven areas:
- Leadership
- Strategic planning
- Customer and market focus
- Information and analysis
- Human resources focus
- Process management, and
- Business results
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Chapter 9: True or False?
Chapter 9: True or False?
The evaluation process for the
Baldrige award measures a
firm’s quality in several key
areas including planning,
leadership, and customer
and market focus.
The significance of the
critical path on a PERT
chart is that it identifies the
least costly method of
producing a given product.
Chapter 9: True or False?
Gantt charts will show the
production manager if certain
activities in the production
process are lagging behind
their acceptable time of
completion.
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Chapter 9: True or False?
A company becomes lean by
implementing a process of
continuous improvement in
which every opportunity to
eliminate wasted time or
other resources is taken.
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Chapter 9: True or False?
Chapter 9: True or False?
Among its many uses, a PERT
chart includes a "progress
indicator" bar for each project
step that shows the project
manager how much of that
step has been completed.
Among its many uses, a PERT
chart shows the project
manager whether any project
steps are behind schedule or
not; and if so, which ones.
Chapter 9: True or False?
Chapter 9: True or False?
If you ever want to get rehired as a project manager,
you should endeavor to
deliver the project you are
managing both on time and
on or under budget.
Chapter 9: True or False?
Production management is the
art and science of making any
combination of goods and/or
services efficiently and
effectively.
Operations management is
defined as the art and science
of making goods (and goods
only) efficiently and
effectively.
Chapter 9: True or False?
The steps on the critical path
are of special interest to the
project manager.
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Chapter 9: True or False?
When a producer negotiates
with their supplier to switch
to Just-in-Time inventory
control, some increase in the
price per unit purchased is
usually involved.
Chapter 10: True or False?
According to management
professor William Ouchi, the
best way for U.S. firms to
become more competitive is
to adopt the Type J approach
to management.
Ouchi wanted to help U.S. firms
adopt successful Japanese
strategies, but he realized it
wouldn’t be practical to
(adopt)…an approach based on
the culture of another
country…(so he) recommended
a hybrid approach, Theory Z.
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Chapter 10: True or False?
Mark successfully completed a
very challenging assignment
given to him by his supervisor at
work. The feeling of
accomplishment and satisfaction
Mark experiences is an example
of an extrinsic reward.
Chapter 10: True or False?
The Hawthorne studies
proved that the methods of
scientific management were
the best way to achieve
maximum productivity
among employees.
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Chapter 10: True or False?
Chapter 10: True or False?
According to Maslow,
people will try to satisfy
their higher order needs
before they turn their
attention to lower order
needs.
Safety needs are
placed at the lowest
level in Maslow’s
hierarchy of needs.
Chapter 10: True or False?
Herzberg’s study
showed that pay was
the job characteristic
that ranked highest as
a motivator.
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Chapter 10: True or False?
Motivators
Hygiene Factors
1. Achievement
2. Recognition
 3. Work Itself
 4. Growth
 5. Advancement
 6. Responsibility
 7. Peer and Group
Relationships


• 8. Pay
• 9. Supervisor’s Fairness
• 10. Company Policies
and Rules
• 11. Status
• 12. Job Security
• 13. Supervisor’s
friendliness
• 14. Working conditions
Herzberg used the term
hygiene factor to refer to
an element of job content
that was most important as
a source of worker
motivation.
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Chapter 10: True or False?
According to McGregor,
Theory X-type managers
motivate employees by
giving them a great deal of
freedom and responsibility.
Chapter 10: True or False?
Theory Y managers assume
that the main factor that
motivates most employees
is the desire to earn more
money.
Chapter 10: True or False?
Fast Track Corporation moves
employees from one job to
another on a regular basis in
order to improve motivation.
Fast Track’s strategy is job
enlargement.
• Job Enlargement -- A job enrichment strategy
that involves combining a series of tasks into one
challenging and interesting assignment.
• Job Rotation -- A job enrichment strategy that
involves moving employees from one job to
another.
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Chapter 10: True or False?
Frederick Herzberg
interviewed managers and
asked them “What motivates
your employees to work
hard?”
Asked employees to rank motivators
1.
2.
3.
4.
5.
6.
7.
Achievement
Recognition
Work Itself
Growth
Advancement
Responsibility
Peer and Group Relationships
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Chapter 10: True or False?
Theory X Managers Believe Their
Employees:
McGregor says Theory X
managers dislike work.
• Dislike Work
• Avoid Responsibility
• Have Little Ambition
• Are motivated by fear & money only
• Need to be forced, controlled, directed
and/or threatened to work hard
Chapter 10: True or False?
McGregor says Theory X
managers seek to avoid
responsibility.
Chapter 10: True or False?
Studies show that employee
effectiveness and effort vary
a lot between companies.
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But Many Product Packages Go Well
Beyond the Basic Functions!
• To attract buyers’ attention
• Protect the goods inside and be
tamperproof
• Describe and provide information about
the product
• Explain the product’s benefits
• Provide warranty information and
warnings
• Give an indication of price, value, and
uses
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True or False?
As a promotional strategy,
advertising is more important in the
marketing of industrial goods than
it is in the marketing of consumer
goods.
True or False?
True or False?
Unsought goods and services
are products consumers do
not actively seek out for
purchase on a regular basis.
Capital items are industrial
goods that are expensive
and last a long time.
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True or False?
• How would you classify these consumer
products?
While the Universal Product Code
(UPC) improves efficiency at the
retail check-out counter, it has
increased problems in controlling
inventory.
- Beautyrest mattress
- Honda Accord
- McDonald’s Big Mac
- Rolls Royce automobiles
- Oreo Cookies
- Harvard University degree
14-115
True or False?
A knockoff brand is a
brand name that has
lost its exclusive legal
protection.
True or False?
Sometimes a firm will
lower prices below their
costs in order to build a
customer base.
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