Mixed Deck — All OM Topics Flashcards

A company practicing 'satisficing' in decision making is:

Answer: Choosing the first option that meets a minimum acceptable threshold

Satisficing, a concept by Herbert Simon, means selecting the first option that satisfies minimum criteria rather than finding the optimal solution.

Why is market analysis important in strategic planning?

Answer: All of the above

Market analysis is crucial in strategic planning because it provides vital insights into the external environment. It helps organizations understand their competitors, identify emerging market trends, and ascertain customer needs and preferences. Collectively, this information enables businesses to make informed strategic decisions, develop competitive advantages, and tailor their offerings to succeed in the marketplace.

What is a work breakdown structure in OM practice?

Answer: Hierarchical decomposition of deliverables into manageable work packages

A WBS breaks total scope into progressively smaller components for easier estimation, scheduling, and tracking.

The 'strategic gap' in organizational planning refers to:

Answer: The difference between a firm's current position and its desired future position

A strategic gap is the difference between where an organization currently stands and where it wants to be, driving the need for strategic initiatives to close that gap.

When using a decision tree for strategic choices, what does a 'chance node' (circle) represent?

Answer: A probabilistic event outside the decision maker's control

Chance nodes represent uncertain events with assigned probabilities, distinguishing them from decision nodes where managers choose.

In stakeholder analysis, a stakeholder with HIGH power but LOW interest should be:

Answer: Kept satisfied with enough engagement to prevent negative interference

High-power, low-interest stakeholders should be kept satisfied to prevent them from becoming adversarial, without overwhelming them with unnecessary detail.

What does data integrity mean in OM practice?

Answer: Accuracy, consistency, and reliability of data throughout its lifecycle

Data integrity means maintaining accuracy, consistency, and reliability from collection through use.

What are consequences of non-compliance in OM practice?

Answer: Fines, license revocation, legal liability, and reputation damage

Non-compliance can result in fines, license issues, legal liability, and lasting reputational damage.

The concept of 'strategic intent,' as defined by Hamel and Prahalad, refers to:

Answer: An ambitious long-term goal that stretches the organization beyond current capabilities

Strategic intent is a compelling, ambitious vision—often seemingly beyond current reach—that energizes and directs organizational effort over a sustained period toward a transformative goal.

What is SWOT analysis used for in strategic planning?

Answer: SWOT analysis for strategic decisions

SWOT analysis is a fundamental tool in strategic planning used to identify an organization's internal Strengths and Weaknesses, as well as external Opportunities and Threats. By systematically evaluating these four factors, organizations can develop informed strategies that leverage their strengths, mitigate weaknesses, capitalize on opportunities, and prepare for potential threats. This comprehensive assessment directly informs strategic decisions.

How does organizational development enhance company culture?

Answer: By improving culture and innovation

Organizational development (OD) enhances company culture by systematically improving internal processes, communication, and employee engagement. Through planned interventions, OD fosters a more positive, inclusive, and collaborative work environment. This leads to increased employee satisfaction, greater adaptability to change, and a culture that encourages continuous learning and innovation, ultimately benefiting the organization's long-term success.

Span of control refers to:

Answer: The number of subordinates a manager directly supervises

Span of control is the number of direct reports a single manager oversees, which directly influences organizational hierarchy and communication flow.

The 'winner's curse' in decision making most commonly affects:

Answer: Bidders who win auctions by overestimating the value of the prize

The winner's curse describes how the winning bidder in a competitive auction often overpays because they overestimated the asset's true value.

Why is documentation critical in OM compliance?

Answer: It provides evidence of compliance and defensible records

Documentation provides verifiable evidence that requirements are met and creates defensible records if compliance is questioned.

Which of the following is an example of a 'backward vertical integration' strategy?

Answer: A retailer acquiring a supplier of its raw materials

Backward vertical integration occurs when a company acquires or develops operations that were previously performed by its suppliers, moving toward the start of the supply chain.

Which type of performance indicator measures outcomes that have ALREADY occurred and cannot be changed?

Answer: Lagging indicator

Lagging indicators measure results after the fact — such as annual revenue or employee turnover rates — reflecting what has already happened.

What is 'performance calibration' in the context of organizational management?

Answer: A process where managers align and standardize performance ratings across teams to ensure fairness and consistency

Performance calibration sessions bring multiple managers together to compare and align ratings, reducing bias and ensuring equitable application of performance standards across the organization.

Which strategic planning tool maps an organization's activities against industry rivals to identify competitive positioning?

Answer: Strategic group map

A strategic group map clusters competitors by similar strategic dimensions, revealing competitive positioning across the industry.

Which of the following BEST describes a 'leading indicator' in performance management?

Answer: Employee training completion rates that predict future productivity improvements

Leading indicators are predictive metrics that can be acted on proactively — such as training completion — because they influence future outcomes.

What is a work breakdown structure in OM practice?

Answer: Hierarchical decomposition of deliverables into manageable work packages

A WBS breaks total scope into progressively smaller components for easier estimation, scheduling, and tracking.