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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The Globalization Challenge has and will require the development and design of: A) cross-cultural accounting and reporting structures. B) transnational business processes. C) specialized and widely varied technology platforms that communicate across national boundaries. D) both A and C above E) both A and B above 2) The business perspective calls attention to the organizational and managerial nature of: A) computer technology. B) information systems. C) conflict. D) knowledge gathering. E) the bureaucracy. 3) A broad-based understanding of information systems that includes behavioral knowledge about organizations and individuals using information systems as well as technical knowledge about computers is called: A) information systems literacy. B) computer literacy. C) management literacy. D) technology literacy. E) MIS literacy. 4) Information technology increases organizational flexibility for large companies by allowing them: A) to offer customized products in small quantities. B) to create databases to reveal customers needs and preferences. C) to eliminate the need for research staff. D) both A and B above E) both B and C above 4) 3) 2) 1)

5) Because information systems are so essential to business, government, and daily life, organizations must take special steps to ensure: A) that the systems are accurate, reliable, and secure. B) that backup written records are kept. C) that software is updated frequently. D) that all managers know and understand the basics of copyright law. E) that references are checked before employees are hired. 6) Horizontal systems automating business processes crossing functional and hierarchical boundaries: A) must be considered in the original architecture of the system. B) are usually informal. C) are typically built after major functional systems are in place. D) are not necessary if the system is properly designed. E) are necessary only if the system is an extranet. 7) Maintaining the organization s labor force is a business function of: A) manufacturing and production. B) finance. C) human resources. D) sales and marketing. E) accounting. 8) Promoting the organization s products and services is a business function of: A) manufacturing and production. B) finance. C) human resources. D) sales and marketing. E) accounting. 9) The global availability of the Internet has fueled the growth of: A) free trade. B) electronic commerce. C) new laws against pornography. D) new tariffs and tax laws worldwide. E) the universal use of the English language. 10) Early information systems brought about largely technical changes that were: A) relatively easy to accomplish. B) not based on digital requirements. C) non-competitive. D) involved only with core activities. E) beyond the enterprise. 2

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11) Maintaining the organization s financial records is a business function of: A) manufacturing and production. B) finance. C) human resources. D) sales and marketing. E) accounting. 12) Input: A) captures or collects raw data from within the organization or from the external environment. B) is data shaped into meaningful form. C) allows the analysis of problems faced by the organization. D) converts raw data into meaningful form. E) both B and C above 13) One of the many tools managers use to cope with change is: A) computer software. B) conflict. C) the formulation of action plans. D) information technology. E) continuing education. 14) The shared information technology resources for the organization are called its: A) business infrastructure. B) IT infrastructure. C) network. D) operational network. E) MIS plan. 15) __________ use paper-and-pencil technology. A) Reactionaries B) Manual systems C) Bureaucracies D) Most established companies E) Educational systems 16) E-commerce and the use of Internet technology are driving the move toward: A) digital firms. B) fiber-optic networks worldwide. C) new tax laws. D) satellite communications systems. E) multinational organizations.

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17) Integrating systems for different organizational levels and functions to freely exchange information: A) will require the use of the mainframe system. B) does not require that managers be retrained. C) can be technologically difficult and costly. D) has always been part of bureaucratic policy. E) is not a requirement of the digital firm. 18) When customer feedback drives marketing and production, the term used is: A) collaborative enterprise. B) closed loop marketing. C) sales forecasting. D) enterprise engineering. E) industrial networking. 19) __________ describe(s) information inputs to an ESS system. A) Aggregate data B) High-volume data C) Design specifications D) Analytic models and data analysis tools E) Documents and schedules 20) __________ are designed to support organization-wide process coordination and integration. A) Office applications B) Decision support systems C) Enterprise applications D) Strategic planning operations E) Management information systems 21) In supply chain management, demand forecasts will be off target if: A) managers do not understand the implications. B) sales quotas are not met. C) the information going into the system is flawed. D) communications are delayed. E) operations do not move smoothly. 22) Employees whose jobs are principally to use, manipulate, or disseminate information are all considered to be: A) clerical personnel. B) customer relations experts. C) data workers. D) operations personnel. E) mid-level managers. 4

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23) Enterprise systems can help create a foundation for a __________ organization. A) collaborative B) joint marketing C) distributed management D) supply chain E) customer or demand-driven 24) __________ generally provide answers to routine questions that have been specified in advance and have a predefined procedure for answering them. A) TPS B) ESS C) DSS D) MIS E) ALS

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25) The __________ collects data from various key business processes and stores the data in a single comprehensive data repository, usable by other parts of the business. A) automatic reporting system B) enterprise system C) transaction system D) management information system E) intranet 26) MIS and DSS are: A) strategic-level systems. B) management-level systems. C) operational-level systems. D) knowledge-level systems. E) transaction-level systems. 27) __________ describe(s) information inputs to an office system. A) Aggregate data B) High-volume data C) Design specifications D) Analytic models and data analysis tools E) Documents and schedules 28) From an economic standpoint, information system technology can be viewed as a: A) factor of production that can be freely substituted for capital and labor. B) transaction mediator. C) cost of doing business in any environment in today s global economy. D) capital expenditure. E) product or service in itself.

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29) At the business level, the most common analytical tool is: A) ESS. B) value chain analysis. C) the value web. D) the industry value chain. E) DSS. 30) According to the Mintzberg model of management, interpersonal roles are: A) where managers initiate activities, handle disturbances, allocate resources, and negotiate conflict. B) where managers act as figureheads and leaders for the organization. C) where managers act as a liaison, disseminating and allocating resources. D) the expectations of the activities that managers should perform in an organization. E) where managers act as the nerve centers of their organizations, receiving and disseminating critical facts. 31) According to Mintzberg, a __________ is an example of a professional bureaucracy structure. A) midsize manufacturing firm B) law firm or school system C) consulting firm D) small start-up business E) very large established company 32) Manufacturers and retailers are starting to use information systems to create products and services that are custom-tailored to fit: A) new markets determined by Internet sales. B) customers in a global environment. C) customers who complete most of their transactions on the Web. D) the precise specifications of individual customers. E) the most profitable 20 percent of their customers. 33) According to the Mintzberg model of management, decisional roles are: A) the expectations of the activities that managers should perform in an organization. B) where managers act as a liaison, disseminating and allocating resources. C) where managers act as figureheads and leaders for the organization. D) where managers initiate activities, handle disturbances, allocate resources, and negotiate conflict. E) where managers act as the nerve centers of their organizations, receiving and disseminating critical facts.

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34) Political models of decision making are models that: A) result from competition in bargaining among the organization s interest groups and leaders. B) are based on decisions being shaped by standard operating procedures. C) take into account the structural and political characteristics of an organization. D) believe that organizational decisions are forced by unexpected environmental factors. E) believe that organizations are not rational and that decisions are accidental solutions to problems. 35) A major change in the relationship between information systems and organizations is: A) the decreased dependence on mainframe systems. B) that newer organizations have an edge over older ones. C) that managing systems today involves a much larger part of the organization today than it did in the past. D) the level of interest in information systems within all employee groups has increased. E) that there is increased competition between the two. 36) Properly used, an information system creates: A) an opportunity for everyone to participate in decision making. B) value for the organization. C) competitive knowledge. D) all the reports that anyone might need. E) a more efficient, but not necessarily a more effective, organization. 37) Businesses process information in order to: A) prepare documentation for taxes and business reports. B) improve organizational performance and produce profits. C) create feedback. D) maintain a competitive edge. E) none of the above 38) Electronic computers and related software programs are the technical foundation, the tools and materials, of: A) information accumulation. B) information storage. C) modern information systems. D) all industrialized countries. E) all business procedures.

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39) The power of computer hardware and software has grown much more rapidly than: A) the ability of organizations to apply and use the technology. B) worldwide Internet usage. C) the ability of organizations to purchase the technology. D) telecommunications technologies. E) governments can control. 40) A(n) __________ has both an upstream and a downstream portion. A) enterprise system B) fluctuation in inventory C) inventory reduction D) logistics management program E) supply chain 41) ESS are: A) strategic-level systems. B) management-level systems. C) operational-level systems. D) knowledge-level systems. E) transaction-level systems. 42) Office systems are: A) strategic-level systems. B) management-level systems. C) operational-level systems. D) knowledge-level systems. E) transaction-level systems. 43) In postindustrial societies, authority increasingly relies on: A) economic status. B) information. C) formal hierarchical positions. D) knowledge and competence. E) self-managed teams. 44) According to Mintzberg, a __________ is an example of a divisionalized bureaucracy structure. A) midsize manufacturing firm B) law firm or school system C) consulting firm D) small start-up business E) very large established company

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45) All information systems can be described as organizational and management solutions to: A) competitive stressors. B) challenges posed by the environment. C) technology requirements. D) the globalization of business. E) conflict. 46) The use of information systems can help small organizations: A) maintain highly complex and revealing records and reports. B) cross-train employees. C) develop teamwork. D) look like large ones to potential customers and clients. E) develop a global market for their products. 47) Budgeting, profit planning, and portfolio analysis are examples of: A) manufacturing and production information systems. B) finance and accounting information systems. C) enterprise application information systems. D) human resources information systems. E) sales and marketing information systems. 48) In Simon s model of the stages in decision making, the design stage is described as: A) putting the decision into effect. B) determining possible solutions to the problem. C) reporting on the outcomes of the decision. D) deciding which solution to apply to the problem. E) identifying and understanding the problem. 49) The ultimate end product of the new ways of conducting business electronically is: A) the extinction of the traditional bureaucracy. B) lifelong education. C) more government oversight. D) the digital firm. E) a more complicated tax structure. 50) __________ usually serve managers interested in weekly, monthly, and yearly results, not day-to-day activities. A) TPS B) Knowledge workers C) DSS D) MIS E) ALS

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SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 51) A(n) __________ on information systems says that the performance of the system is optimized when both the technology in the organization mutually adjust to one another until a satisfactory fit is obtained. 52) A(n) __________ links two or more computers to share data or resources such as a printer. 53) The major industrial powers are being transformed from __________ to service economies. 54) A(n) __________ can be either computer-based or manual. 55) A(n) __________ processes the organization s paperwork. 56) __________ allows members of the organization to evaluate and correct input. 57) A(n) __________ is one where nearly all significant business processes and relationships are managed through digital means. 58) A business processes information in order to improve __________ and produce __________. 59) A(n) __________ is a formal rule for accomplishing tasks that have been developed to cope with expected situations. 60) A production-support program called __________ allows Toyota engineering teams to use design and manufacturability data to create a plan that specifies the order in which parts are to be installed in a car as it moves down the production line. 61) A(n) __________ balances the decision-making load across an organization. 62) __________ focuses primarily on knowledge of information technology. 63) Selling the organization s products and services is the major business function of the department of __________. 64) __________ is the conversion, manipulation, and analysis of raw input into a form that is more meaningful to humans. 65) A(n) __________ transforms raw information through various stages that add value to that information. 66) A(n) __________ is a specialized task performed in the business organization. 51)

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67) A(n) __________ is the network of organizations and business processes involved in procuring materials, transforming them into products, and distributing the products to customers. 68) __________ involves close linkage and coordination of the activities involved in buying, making, and moving a product. 69) The __________ portion of the supply chain includes the organization s suppliers and their suppliers, and the processes for managing relationships with them. 70) A(n) __________ performs and records the daily routine transactions necessary to conduct the business. 71) __________ is the technology that produces professional-quality documents combining output from word processors with design, graphics, and special layout features. 72) A(n) __________ supports the monitoring, controlling, decision-making, and administrative activities of middle managers. 73) A(n) __________ helps the firm identify customers for the firm s products or services, develop products or services to meet customer s needs, promote these products and services, sell products and services, and provide ongoing customer support. 74) Sales and marketing, manufacturing, finance, accounting, and human resources are the main __________ of an organization. 75) A(n) __________ generally provides answers to routine questions that have been specified in advance and have a predefined procedure for answering them. 76) __________ is a bafflegab way of saying return the item to the seller. 77) The __________ describes large fluctuations in inventories along the supply chain resulting from small, unanticipated fluctuations in demand. 78) A(n) __________ is a nonroutine decision in which the decision maker must provide judgment, evaluation, and insights into the problem definition. 79) A(n) __________ is the formal organizational unit that is responsible for the information systems function in the organization. 80) A(n) __________ is a decision that is repetitive, routine, and has a definite procedure for handling it. 81) A(n) __________ is a cooperative alliance formed between two or more corporations for the purpose of sharing information to gain strategic advantage.

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82) __________ was the first to describe the ideal-typical characteristics of organizations in 1911. 83) __________ are the expenses incurred by a customer or company in lost time and resources when changing from one supplier or system to a competing supplier or system. 84) The __________ highlights the primary or support activities that add a margin of value to a firm s products or services where information systems can best be applied to achieve a competitive advantage. 85) A(n) __________ is essential for most organizations to survive and prosper in today s business environment. 86) __________ is data shaped into forms that are meaningful and useful to human beings. 87) __________ are sets of operating instructions to direct and control computer processing.

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88) A(n) __________ comprises all of the Web pages maintained by an organization or an individual. 89) A(n) __________ is composed of interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization. 90) A(n) __________ is a system used at the management level of an organization that serves the functions of planning, controlling, and decision making by providing routine summary and exception reports. 91) A(n) __________ monitors the elementary activities and transactions in the organization.

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92) __________ is the office system technology that facilitates the creation of documents through computerized text editing, formatting, storing, and printing. 93) The __________ is the set of fundamental assumptions about what products the organization should produce, how and where it should produce them, and for whom they should be produced. 94) __________ is a competitive strategy for creating brand loyalty by developing new and unique products and services that are not easily duplicated by competitors. 95) A(n) __________ automates the flow of information across organizational boundaries and links a company to its customers, distributors, or suppliers.

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96) The physical equipment used for input, processing, and output activities in an information system is the __________. 97) A(n) __________ is used at management level to combine data and sophisticated analytical models or data analysis tools to support semistructured and unstructured decision making. 98) A(n) __________ is a specialist who translates business problems and requirements into information requirements and systems, acting as a liaison between the information systems department and the rest of the organization. 99) Digital firms __________ to their environments far more rapidly than traditional firms, which means they can be more flexible in turbulent times. 100) __________ models and automates many business processes, such as filling an order or scheduling a shipment, with the goal of integrating information across the company and eliminating complex, expensive links between computer systems in different areas of the business. TRUE/FALSE. Write T if the statement is true and F if the statement is false. 101) Organizational politics are the basis for conflict. 102) Formal systems are structured and are not easily changed. 103) The two contemporary approaches to information systems are technical and behavioral. 104) A formal information system can be a manual one. 105) The maintenance of information systems is one of the major business functions. 106) Information technology has made possible a much more formal organizational structure.

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112) Modern digital firms use the Internet and networking technology to make data flow seamlessly among different parts of the organization; streamline the flow of work; and create electronic links with customers, suppliers, and other organizations. 113) In an information system, input, processing, and output produce data. 114) A network requires at least three computers. 115) Information systems are designed to provide solutions to organizational problems. 116) Information systems literacy requires an understanding of the organizational and management dimensions of information systems. 117) Many human resources information systems are designed to provide data that can satisfy federal and state record keeping requirements. 118) Information systems personnel need to determine which business processes should be integrated, and the appropriate organizational resources to support the integration. 119) Materials, information, and payments always flow through the supply chain from the top down.

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120) Enterprise systems may be of most use in organizations that find it impossible to change. 121) CAD systems are an example of manufacturing and production information systems. 122) Supply chain management systems are not compatible with intranets, extranets, or special Web software. 123) Knowledge and data workers normally report directly to senior managers. 124) Companies and their distributors use channel management to collaborate on pricing and share sales leads. 125) The use of enterprise systems will probably change the structure of the firm. 126) Most enterprise applications take advantage of Web technologies and corporate intranets. 127) One advantage to a good CRM system is that the firm can present many different faces to the customer. 128) The law of diminishing returns always works for digital, as well as traditional companies. 129) Information systems can measurably alter life in the organization. 14

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