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Principles of Information Systems 13th Edition Stair Test Bank
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Chapter 2 Information Systems in Organizations
TRUEFALSE
1. While information systems were once primarily used to automate manual processes, they have
transformed the nature of work and the shape of organizations themselves.
(A) True
(B) False
Answer : (A)
2. An organization’s structure is independent of its goals and approach to management.
(A) True
(B) False
Answer : (B)
3. Suppose a retail business has an unwritten rule that “every sales person cooperates with others.”
This is an example of organizational culture.
(A) True
(B) False
Answer : (A)
4. Reengineering and continuous improvement have the same definition.
(A) True
(B) False
Answer : (B)
5. Organizations cannot have many value chains.
(A) True
(B) False
Answer : (B)
6. A sustaining innovation is one that initially provides a lower level of performance than the
marketplace has grown to accept.
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(A) True
(B) False
Answer : (B)
7. The concept of a value chain is not significant to organizations unless they manufacture products.
(A) True
(B) False
Answer : (B)
8. A traditional view of information systems holds that organizations use them to control and
monitor processes and ensure effectiveness and efficiency.
(A) True
(B) False
Answer : (A)
9. Over time, disruptive innovation tends to become less attractive to users in a new market.
(A) True
(B) False
Answer : (B)
10. Perceived usefulness and ease of use of a system influence an individual’s attitude toward the
system.
(A) True
(B) False
Answer : (A)
11. The diffusion of innovation theory states that adoption of any innovation happens all at once for
all members of the targeted population.โโ
(A) True
(B) False
Answer : (B)
12. The diffusion of innovation theory can be useful in planning the rollout of a new information
system. โ
(A) True
(B) False
Answer : (A)
13. The activities that lead to getting the right product into the right consumer’s hands in the right
quantity at the right time at the right cost are known as value chain management.
(A) True
(B) False
Answer : (B)
14. Opportunities in information systems are available to people from different parts of the world.
(A) True
(B) False
Answer : (A)
15. The role of a systems analyst is narrowly defined and seldom involves communications with
others.
(A) True
(B) False
Answer : (B)
16. The information systems operations group is responsible for the day-to-day running of IS
hardware to process the organization’s information systems workload.
(A) True
(B) False
Answer : (A)
17. โWhen an organization hires another firm in another country to perform a specific function on its
behalf, it is known as offshoring.
(A) True
(B) False
Answer : (A)
18. โThe successful implementation for change only happens when people accept the need for change
and believe that it will improve factors such as productivity and/or customer satisfaction.
(A) True
(B) False
Answer : (A)
19. “Adapting” is the second stage in Lewin’s Change Model, which involves learning new work
methods, behaviors, and systems.โ
(A) True
(B) False
Answer : (B)
20. According to Lewin’s Change Model, an organization must deliberately change old habits, learn
new work methods, and accept the new work methods as parts of the job.
(A) True
(B) False
Answer : (A)
21. Suppose an organization wishes to change for the better. It can accomplish that just by
changing people’s roles, responsibilities, and lines of authorities.
(A) True
(B) False
Answer : (B)
22. When organizational learning occurs, what is revealed can be small, incremental adjustments
known as continuous improvement.โ
(A) True
(B) False
Answer : (A)
23. Today, many organizations can function and compete effectively without computer-based
information systems.โ
(A) True
(B) False
Answer : (B)
24. For someone to be a good CIO, technical ability is the most important characteristic.
(A) True
(B) False
Answer : (B)
25. One of the primary roles of a senior IS manager is to communicate with other areas of the
organization to determine changing business needs.โ
(A) True
(B) False
Answer : (A)
MULTICHOICE
26. Providing value to a _____ is the primary goal of any organization.
(A) stakeholder
(B) product
(C) competitor
(D) service
Answer : (A)
27. In a manufacturing organization, the supply chain is a key value chain whose primary activities
include all of the following EXCEPT:
(A) inbound logistics
(B) finance and accounting
(C) marketing and sales
(D) customer service
Answer : (B)
28. The idea of _____ is a form of innovation that constantly seeks ways to improve business
processes and add value to products and services.
(A) reengineering
(B) process redesign
(C) disruptive change
(D) continuous improvement
Answer : (D)
29. The performance levels of radically new ‘high-tech’ products usually improve with newer
versions. Such types of products are known as
(A) sustaining innovations
(B) continuous improvement
(C) disruptive innovations
(D) business reengineering
Answer : (C)
30. _____ involves reducing the number of employees to cut costs.
(A) Outsourcing
(B) Offshoring
(C) Utility computing
(D) Downsizing
Answer : (D)
31. Which of the following theories explains how a new idea or product gains acceptance and
spreads through a specific population or subset of an organization?
(A) diffusion of innovation theory
(B) contingency theory
(C) public choice theory
(D) two-factor theory
Answer : (A)
32. In a supply chain, _____ involve the transformation, movement, and storage of supplies and raw
materials.
(A) virtual flows
(B) matrix flows
(C) information flows
(D) physical flows
Answer : (D)
33. _____ is a visa program that allows skilled employees from foreign lands into the United States.
(A) L-1B
(B) H-1B
(C) 4F
(D) G-5
Answer : (B)
34. _____ are responsible for running and maintaining information system equipment and also
for scheduling, hardware maintenance, and preparing input and output.
(A) Data-entry operators
(B) System operators
(C) Web operators
(D) Local area network operators
Answer : (B)
35. _____ encompasses all the activities required to get the right product into the right consumer’s
hands in the right quantity at the right time and at the right cost, from acquisition of raw materials
through customer delivery. โ
(A) Supply chain management
(B) Value chain management
(C) Inventory management
(D) Customer management
Answer : (A)
36. In the contemporary view of information systems, they are considered an integral part of the
supply chain management process mainly because they: _________.
(A) โaid in product transformation
(B) โare a means of producing output
(C) โare a means of providing input into the process
(D) โall of these
Answer : (D)
37. Suppose you are assigned to manage a virtual team. Which of the following will you NOT do?
(A) define goals, and set expectations
(B) be aware of team members cultural sensitivity
(C) ensure the team members are familiar with each other at a personal level
(D) hold team meetings regularly – whether the team members like it or not
Answer : (D)
38. All of the following are potential drawbacks to outsourcing EXCEPT:
(A) โloss of flexibility and control
(B) โlow employee morale
(C) โgreater focus on core business
(D) โpotential for data breaches
Answer : (C)
39. Suppose, you need to advise someone about getting a certification. Which of the following will
be appropriate advice?
(A) Getting certification is a sure way of improving your income
(B) Certifications are vendor-specific
(C) Certifications are the same as courses offered at universities
(D) You need a college degree before you can take a certification exam
Answer : (B)
40. All of the following are positive driving forces that influence chance according to Lewin’s Theory
of Force Field Analysis, EXCEPT:
(A) โbeliefs
(B) โpast performance
(C) โexpectations
(D) โcultural norms
Answer : (B)
41. โAccording to the diffusion innovation theory, _____ are the risk takers, always the first to try new
products and ideas.
(A) โearly majority
(B) late majority
(C) โearly adopters
(D) โinnovators
Answer : (D)
42. โWhich of the following is NOT one of the four main components in Leavitt’s Diamond?
(A) โpeople
(B) โsystems
(C) โtasks
(D) โtechnology
Answer : (B)
43. โThe members of an organization who are most likely to contribute to organizational learning are
_________.
(A) โhourly employees
(B) โmid-level managers
(C) โexecutives
(D) โall of these
Answer : (D)
44. Positive outcomes of continuous improvement include ________.โ
(A) โincreased customer loyalty
(B) โincreased customer satisfaction
(C) โprotection against competitors
(D) โall of these
Answer : (D)
45. According to Lewin and Schein’s 3-stage model of organizational change, which of the following
tasks would be found in the ‘unfreezing’ stage?
(A) Monitor progress against success criteria
(B) Establish controls to ensure change is occurring
(C) Establish processes and systems to institutionalize change
(D) Assign leaders and implementation teamโ
Answer : (D)
46. Suppose you work at a business unit that has group of people who would rather wait to try a
new technique. They listen to and follow the opinion leaders. They would be classified as the
_________.
(A) innovators
(B) early adopters
(C) early majority
(D) late majority
Answer : (C)
47. โWhich of the following is NOT a potential drawback to downsizing?
(A) โreduced payroll costs
(B) โdecreasing employee morale
(C) โlower quality
(D) โnone of these
Answer : (A)
48. You might be an information systems worker if you _________.
(A) prefer a slow-paced environment, where technology rarely changes
(B) prefer to work only on the computer and are not interested in the business
(C) enjoy learning new techniques and enjoy working with people
(D) are good in book-keeping, like an accountant
Answer : (C)
49. โIn most large organizations, the IS department is divided into the following functions __________.
(A) โoperations and development
(B) โoperations, development, and support
(C) โoperations and support
(D) โsystems, operations, and development
Answer : (B)
50. Important functions of the chief information officer include
(A) โemploying an IS department’s equipment and staff to help the organization reach its goals
(B) monitoring the financial considerations of the IS department, such as return on investment
(C) ensuring the organization complies with laws and regulations
(D) โall of these
Answer : (D)
51. โIn a large IS organization, the professional who is responsible for maintaining the security and
integrity of the organization’s systems and data is__________.
(A) โthe data center manager
(B) โthe data security manager
(C) โthe system security operator
(D) โthe information systems security analyst
Answer : (D)
52. โWhich of the following is NOT a task typically associated with the systems analyst role?
(A) โconveying system requirements to software developers and network architects
(B) โtroubleshooting problems after implementation
(C) โcollaborating with others to build a software product from scratch
(D) โchoosing and configuring hardware and software
Answer : (C)
53. โOne method an IS professional might use to find a new job would be ____________.
(A) โseeking referrals from colleagues, friends, and family members
(B) โsearching and applying for open positions on Internet job sites
(C) โnetworking through an IS professionals’ organization
(D) โall of these
Answer : (D)
SHORTANSWER
54. A manufacturing facility has a series of activities that converts the raw materials into valuable
products. Such a series of activities make up the organization’s _______ chain.Answer : value
55. A(n) _____ is a group of individuals whose members are distributed geographically, but who
collaborate and complete work through the use of information systems technology.Answer : virtual
team
56. In any organization, ______ such as raw materials, labor, facilities, equipment, and knowledge,
are needed to transform them to outputs in a way that increases the input’s value.Answer : inputs
57. The radical redesign of business processes, organizational structures, information systems,
and values of an organization to achieve a breakthrough in business results is known as
_____.Answer : reengineering
58. _____ is a set of major understandings and assumptions shared by a group, such as within an
ethic group or country.Answer : Culture
Answer : culture
59. _____ is a theory that proposes that every organizational system is made up of four
main components-people, tasks, structure, and technology-with an interaction among the four
components so that any change in one of these elements will necessitate a change in the other three
elements.Answer : Leavittโs diamond
60. The attitude towards using an information system depends on its perceived ease-of-use and
perceived _______.Answer : usefulness
61. In the technology acceptance model (TAM), _____ is defined as the degree to which individuals
believe that use of the system will improve their performance. Answer : perceived usefulness
62. _____ means the ability of a product or a service to meet or exceed customer
expectations.Answer : Quality
Answer : quality
63. _____ refers to organizational subunits and the way they relate to the overall
organization.Answer : organizational structure
Answer : Organizational structure
64. _____ is a long-term business arrangement in which a company contracts for services with an
outside organization that has expertise in providing a specific function.Answer : Outsourcing
Answer : outsourcing
65. Sarah, as the head of a business division, wants to set up a network access account for a new
employee. She should call the _____ to get this done.Answer : LAN administrator or
Answer : Network administrator
66. A(n) _____ is a professional in a developmental group of an information systems department
who assists in choosing and configuring hardware and software, matching technology to users’
needs, monitoring and testing the system in operation, and troubleshooting problems
after implementation.Answer : systems analyst
67. โ_____ design and set up databases to meet an organization’s needs.Answer : Database
administrators
Answer : DBAs
Answer : database administrators
68. The _____ group of a typical information systems organization is responsible for the day-to-day
running of IS hardware to process the organization’s information systems workload.Answer :
operations
69. _____ convert a program design developed by a systems analyst or software developer using one
of many computer languages.Answer : Programmers
Answer : programmers
70. _____ is a process for testing skills and knowledge, which results in a statement by the certifying
authority that confirms an individual is capable of performing particular tasks.โ
Answer : Certification
Answer : certification
71. Process redesign, which is also known as _____, involves the radical redesign of business
processes, organizational structures, information systems, and values.โAnswer : business process
reengineering
72. “Kaizen” is the Japanese word for _________.โAnswer : continuous improvement
73. The ________ theory was developed by E.M. Rogers to explain how a new idea or product gains
acceptance and diffuses (or spreads) through a specific population or subset of an
organization.Answer : diffusion of innovation
74. The first stage of Lewin’s change model, _____, means ceasing old habits and creating a climate
that is receptive to change.โAnswer : unfreezing
75. _______ is an outsourcing arrangement where the organization providing the service is located in
a country different from the firm obtaining the services. Answer : Offshore outsourcing
Answer : offshoring
76. According to Leavitt’s theory, _______ in one aspect of the information system element will
necessitate changes in other elements also.Answer : change
77. A local pizzeria that has been around for more than forty years, keeps adjusting to new
conditions and altering their practices. Such behavior is known as ____.Answer : organizational
learning
78. Laptops are a good example of _____ because they are gradually displacing desktop computersโ
due to new and better performance characteristics.Answer : disruptive innovation
79. Of the five categories of innovation adopters, _______ are always the first to try new products and
ideas.โAnswer : innovators
80. ________ is the term used to describe the information systems and solutions built and deployed by
departments other than the information systems department.โAnswer : Shadow IT
Answer : shadow IT
Answer : Shadow Information Technology
Answer : shadow information technology
ESSAY
81. Define the term value chain and briefly discuss the purpose of the supply chain component in a
manufacturing organization.
Graders Info :
The value chain is a series (chain) of activities that an organization performs to transform inputs into
outputs in such a way that the value of the input is increased. In a manufacturing organization, the
supply chain is a key value chain whose primary activities include inbound logistics, operations,
outbound logistics, marketing and sales, and service. These primary activities are directly concerned
with the creation and/or delivery of the product or service. There are also four main areas of support
activities, including technology infrastructure, human resource management, accounting and
finance, and procurement.
82. Explain the difference between sustaining and disruptive innovation.
Graders Info :
Sustaining innovation results in enhancements to existing products, services, and ways of operating.
Such innovations are important as they enable an organization to continually increase profits, lower
costs, and gain market share. A disruptive innovation is one that initially provides a lower level of
performance than the marketplace has grown to accept. Over time, however, the disruptive
innovation is improved to provide some new performance characteristics and becomes more
attractive to users in a new market. As it continues to improve and begins to provide a higher level
of performance, it eventually displaces the former product or way of doing things.
83. Explain the concept of “perceived usefulness” in the context of technology acceptance model
(TAM).
Graders Info :
In the TAM model, “perceived usefulness” is defined as the degree to which individuals believe that
use of a system will improve their performance. The perceived ease of use is the degree to which
individuals believe that the system will be easy to learn and use. Both the perceived usefulness and
ease of use can be strongly influenced by the expressed opinions of others who have used the system
and the degree to which the organization supports use of the system (e.g., incentives, offering
training and coaching from key users). Perceived usefulness and ease of use in turn influence an
individual’s attitude toward the system, which affect their behavioral intention to use the system.
84. Discuss the roles, functions, and careers in information systems (IS).
Graders Info :
Information systems (IS) offer many exciting and rewarding careers. Professionals with careers in
information systems can work in an IS department or outside a traditional IS department as Web
developers, computer programmers, systems analysts, computer operators, and many other
positions. There are also opportunities for IS professionals in the public sector. In addition to
technical skills, IS professionals need skills in written and verbal communication, an understanding
of organizations and the way they operate, and the ability to work with people and in groups. Most
medium to large organizations manage information resources through an IS department. In smaller
businesses, one or more people might manage information resources, with support from outsourced
services.
85. Describe both of Lewin’s theories-change model and force field analysis-and explain how they
are related.โ
Graders Info :
Lewin’s change model proposes that organizational change goes through three stages: Unfreezing,
which means ceasing old habits and creating a climate that is receptive to change; moving, which
involves learning new work methods, behaviors, and systems; and refreezing, which involves
Principles of Information Systems 13th Edition Stair Test Bank
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reinforcing changes to make the new process accepted. Lewin went on to identify two types of forces
that can influence these stages, which are explained in his theory of force field analysis. Driving
(positive) forces are beliefs, expectations, and cultural norms that encourage change, while
restraining (negative) forces make change difficult to accept or implement.
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