Which of the following is not a major functional area of a business organization

Chapter 01 Test Bank – Static

Inhaltsverzeichnis Show

What are the 3 major functional areas of business organization?
What are the 7 functional areas of business?
Which of the following is not the functional areas of management?
What are functional areas?

Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's

goods or services.

FALSE

Operation managers are not responsible for promoting goods/services. It is the marketing functional area that is responsible for assessing consumer wants and needs and selling and promoting the organization’s goods or services.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-06 Describe the operations function and the nature of the operations manager's job. Topic: The Scope of Operations Management

Often, the collective success or failure of companies' operations functions will impact the ability of a nation to compete with other nations.

TRUE

A nation is often only as competitive as its companies.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-03 Explain the importance of learning about operations management. Topic: Why Learn about Operations Management?

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Companies are either producing goods or delivering services. This means that only one of the two types of operations management strategies are used.

FALSE

There are very few pure goods or pure services, so most companies sell product packages which combine goods and services. Therefore, most production systems involve a blend of goods and services.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-02 Identify similarities and differences between production and service operations. Topic: Introduction to Operations Management Topic: Production of Goods versus Providing Services

Operations, marketing, and finance function independently of each other in most organizations.

FALSE

Operations, marketing, and finance are naturally dependent upon one another.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-04 Identify the three major functional areas of organizations and describe how they interrelate. Topic: Why Learn about Operations Management?

The greater the degree of customer involvement, the more challenging the design and management of operations.

TRUE

Greater customer involvement leads greater variation in the goods and services provided. This creates greater variation in production or service requirements and results in more complexity in the design and management of operations.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-05 Summarize the two major aspects of process management. Topic: Process Management

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The use of models will guarantee the best possible decisions.

FALSE

Models are useful, but their use does not guarantee the best decisions.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-07 Explain the key aspects of operations management decision making. Topic: Operations Management and Decision Making

People who work in the field of operations should have skills that include both knowledge and people skills.

TRUE

Operations management requires a blend of knowledge and people skills.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 01-06 Describe the operations function and the nature of the operations manager's job. Topic: Career Opportunities and Professional Societies

Assembly lines improved productivity by using interchangeable parts and craft production.

FALSE

Rather than craft production, assembly lines used the concept of division of labor to divide the production operation into a series of small tasks which were so small that very little skill was required of the workers.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 3 Hard Learning Objective: 01-08 Briefly describe the historical evolution of operations management. Topic: The Historical Evolution of Operations Management

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The operations manager has primary responsibility for making operations system design decisions, such as system capacity and location of facilities.

FALSE

The operations manager plays a role in these decisions but is not primarily responsible for them.

The word "technology" is used only to refer to "information technology."

FALSE

Technology also refers to the technology involved in new products and services and the technology involved in resource transformations.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-09 Describe current issues in business that impact operations management. Topic: Operations Today

"Value added" by definition is always a positive number since "added" implies increases.

FALSE

Some transformations result in the output being worth less than the inputs.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-06 Describe the operations function and the nature of the operations manager's job. Topic: Introduction

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Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-07 Explain the key aspects of operations management decision making. Topic: Operations Management and Decision Making

Most people encounter operations only in profit-making organizations.

FALSE

Operations are also relevant to nonprofit organizations such as hospitals and police and fire departments.

Service typically involves a much higher degree of customer contact than manufacturing.

TRUE

Customer contact tends to be much higher in services.

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A systems approach emphasizes interrelationships among subsystems, but its main theme is that the whole is greater than the sum of its individual parts.

TRUE

Optimizing the performance of individual subsystems does not guarantee optimal performance from the overall system.

The Pareto phenomenon is one of the most important and pervasive concepts that can be applied at all levels of management.

TRUE

Pareto phenomena can be observed in a wide variety of organizational situations.

Operations managers, who usually use quantitative approaches, are not really concerned with ethical decision making.

FALSE

Ethics issues are touching on all areas of management, including operations.

AACSB: Ethics Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-09 Describe current issues in business that impact operations management. Topic: Key Issues for Today's Business Operations

The optimal solutions produced by quantitative techniques should always be evaluated in terms of the larger framework.

TRUE

Quantitative techniques have limitations that must be understood. Qualitative information must also be considered.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation

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A systems approach means that we concentrate on efficiency within a subsystem and thereby assure overall efficiency.

FALSE

Subsystem efficiency doesn't necessarily translate into overall efficiency.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-07 Explain the key aspects of operations management decision making. Topic: Operations Management and Decision Making

Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their apprentices using custom-made parts.

TRUE

After the Industrial Revolution, more standardized approaches became common.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-08 Briefly describe the historical evolution of operations management. Topic: The Historical Evolution of Operations Management

Elton Mayo's Hawthorne experiments were significant contributions to the human relations movement, which emphasized the importance of the human element in job design.

TRUE

The Hawthorne experiments revealed that in addition to the physical and technical aspects of work, worker motivation is critical for improving productivity.

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Among Ford's many contributions was the introduction of mass production, using the concepts of interchangeable parts and division of labor.

TRUE

Ford made mass production a practical success.

Operations and sales are the two functional areas that exist to support activities in other functions such as accounting,

finance, IT, and human resources.

FALSE

Operations and sales are the two line functions in a business organization. All other functions including accounting, finance, IT, and human resources exist to support these two line functions.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-03 Explain the importance of learning about operations management. Topic: Why Learn about Operations Management?

Lean production systems incorporate the advantages of both mass production and craft production.

TRUE

Lean production blends the high volume and low unit cost of mass production with the variety and flexibility of craft production.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 01-08 Briefly describe the historical evolution of operations management. Topic: Operations Today

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Managing the supply chain has become more important as a result of firms increasing their levels of:

A. overtime. B. outsourcing. C. marketing. D. promotions. E. shipping.

By buying more goods and services rather than producing them themselves, firms are increasing their levels of outsourcing, thereby increasing the need to manage the supply chain.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-10 Explain the need to manage the supply chain. Topic: Key Issues for Today's Business Operations

Which of the following would tend to increase the importance of supply chain management?

A. increased supply chain stability B. lower levels of outsourcing C. reduced competitive pressures D. increased globalization E. greater emphasis on local markets

Increased globalization leads to longer lead times, increased shipping distances, greater opportunities for disruption of deliveries, more heterogeneous markets and sources of supply, and greater sources of uncertainty.

In their chief role of _________, operations managers exert considerable influence over the degree to which the goals and objectives of the organization are realized.

A. promoter/salesman B. designer/builder C. planner/decision maker D. recruiter/trainer E. troubleshooter/problem-solver

Operations management professionals make a number of key decisions that affect the entire organization. Most of these decisions involve many possible alternatives that can have quite different impacts on costs or profits.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember

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Difficulty: 1 Easy Learning Objective: 01-07 Explain the key aspects of operations management decision making. Topic: Operations Management and Decision Making

A "product package" consists of:

A. the exterior wrapping. B. the shipping container. C. a combination of goods and services. D. goods if a manufacturing organization. E. customer relations if a service organization.

Most firms are not pure service or manufacturing firms; they produce combinations of goods and services.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-01 Define the terms operations management and supply chain. Topic: Introduction

Business organizations consist of three major functional areas which, ideally:

A. support one another. B. are mutually exclusive. C. exist independently of each other. D. function independently of each other. E. do not interface with each other.

Finance, marketing and operations are these major functional areas. In practice, there is significant interfacing and collaboration between these areas.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Learning Objective: 01-04 Identify the three major functional areas of organizations and describe how they interrelate. Topic: Why Learn about Operations Management?

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Learning Objective: 01-01 Define the terms operations management and supply chain. Topic: Introduction

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Budgeting, analysis of investment proposals, and provision of funds are activities associated with the _______ function.

A. operation B. marketing C. purchasing D. finance E. internal audit

These are the primary tasks for the finance function.

Which one of the following would not generally be classified under the heading of transformation?

A. assembling B. teaching C. staffing D. farming E. consulting

Staffing doesn't involve transforming resources so much as it involves acquiring them.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 3 Hard Learning Objective: 01-01 Define the terms operations management and supply chain. Topic: Introduction

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Learning Objective: 01-06 Describe the operations function and the nature of the operations manager's job. Topic: The Scope of Operations Management

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Knowledge skills usually don't include:

A. process knowledge. B. accounting skills. C. communication skills. D. global knowledge. E. financial skills.

Communication skills generally are considered to be people skills.

Which of the following is not true about the systems approach?

A. A systems viewpoint is almost always beneficial in decision making. B. A systems approach emphasizes interrelationships among subsystems. C. A systems approach concentrates on efficiency within subsystems. D. A systems approach is essential whenever something is being redesigned or improved. E. All of the choices are true.

Subsystem efficiency doesn't necessarily translate into overall system efficiency; so an approach which concentrates on efficiency within subsystems is an alternative to the systems approach

Which of the following is a system in which low-skilled workers use specialized equipment to produce high volumes of standardized goods?

A. supply chain B. the Internet C. craft production D. mass production E. lean systems

Mass production has played a prominent role in increasing standards of living.

AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Remember

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What are the 3 major functional areas of business organization?

Every business is managed through three major functions: finance, marketing, and operations management. Figure 1-1 illustrates this by showing that the vice presidents of each of these functions report directly to the president or CEO of the company.

What are the 7 functional areas of business?

Generally, the six functional areas of business management involve strategy, marketing, finance, human resources, technology and equipment, and operations. Therefore, all business planners should concentrate on researching and thoroughly understanding these areas as they relate to the individual business.

Which of the following is not the functional areas of management?

Planning, staffing, controlling are covered under this definition. Hence, co-operating is not a function as such, of management.

What are functional areas?

A functional area is a department or group of personnel tasked with a specific organizational function. Typically, functional departments comprise teams of employees with similar skills and expertise. These departments allow organizations to integrate activities and tasks with similar logic and protocols.