TEST BANK for Management, 5th Canadian Edition John Schermerhorn Jr, Daniel Bachrach & Barry Wright. by StudyGuide

Schermerhorn, Management, Fifth Canadian Edition

CHAPTER 1 MANAGEMENT TODAY Question type: True/False 1) Intellectual capital is a personal asset for individuals. Answer: True Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 2) Intellectual capital is defined as the collective and shared knowledge of an organization’s workforce. Answer: True Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Application Difficulty: Medium AACSB: Analytic 3) Intellectual capital = Competency x Commitment. Answer: True Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 4) Commitment represents one’s talents or job-relevant capabilities. Answer: False Test Bank

Chapter 1 – Management Today

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Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 5) A knowledge worker is a person whose physical capabilities are critical assets. Answer: False Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 6) Creativity and insight are critical assets to a knowledge worker. Answer: True Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 7) Tech IQ is the ability to use technology and the commitment to stay informed about the latest technological developments. Answer: True Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 8) Improvements in technology, the deregulation of markets, and the opening of national borders have had little impact on businesses in the United States and Europe. Answer: False

Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom code: Knowledge Difficulty: Medium AACSB: Analytic 9) National boundaries are no longer thought of as a constraint in the world of business. Answer: True Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 10) Job migration refers to the shift of manufacturing and jobs from overseas to back home. Answer: False Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 11) Globalization refers to the worldwide interdependence of resource flows, product markets, and business competition that characterizes the new economy. Answer: True Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

12) The reach of the global economy means that countries and people are increasingly connected through media, information technology, travel, and lifestyles.

Answer: True Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 13) If an act is legal then it follows that the act is also an ethical one. Answer: False Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic

14) Ethics refers to a code of moral principles that sets standards of what is “good” or “right” as opposed to what is “bad” or “wrong.” Answer: False Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 15) Integrity and ethical leadership must be practised at all organizational levels. Answer: True Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 16) Society is becoming more lenient in its expectations that social institutions conduct their affairs per high moral standards.

Answer: False Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 17) Minorities constitute more than one-quarter of the Canadian population. Answer: False Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 18) Workforce diversity describes demographic differences among members of the workforce focusing primarily on income, social status, education, and experience. Answer: False Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 19) Prejudice is the display of negative opinions and attitudes about people who lack interpersonal or technical skills. Answer: False Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 20) Discrimination refers to an invisible barrier that limits the career advancement of women and minorities.

Answer: False Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 21) The “glass-ceiling effect” limits the career advancement and promotion of women and visible minorities. Answer: True Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 22) The first leaf in the shamrock organization consists of a core group of “freelancers” and “independent contractors.” Answer: False Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 23) Core workers, contract workers, and part-time workers are the employment patterns in the Irish shamrock model used by Charles Handy. Answer: True Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 24) In Charles Handy’s description of changing careers, a person who performs

specific tasks as needed and is compensated on a fee-for-services basis is a known as a core worker. Answer: False Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 25) In a free-agent economy, people do not change jobs very often. Answer: False Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 26) Since employment patterns are changing dramatically, people should maintain a “portfolio of skills” to increase their flexibility and job opportunities. Answer: True Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 27) All organizations are open systems that interact with their environments. Answer: True Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 28) An open system interacts with its environments to transform resource inputs into

product outputs such as finished products and/or services. Answer: True Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 29) An open system is a collection of subsystems that function independently from one another. Answer: False Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 30) Organizations are complex systems with many interrelated parts functioning together to achieve common goals. Answer: True Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 31) The open systems model focuses on the internal rather than external factors that transform resources into finished products. Answer: False Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 32) Performance effectiveness is defined as the quantity and quality of outputs relative to the cost of inputs.

Answer: False Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 33) Any inefficiency in an organization reduces the cost of production. Answer: False Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 34) Performance efficiency is an output measure of resource cost associated with goal accomplishment. Answer: False Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 35) Productivity refers to the quantity or the amount of work that is performed by a group or team. Answer: False Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 36) An organization that has good resource utilization and low goal attainment will be neither efficient or effective. Answer: True Learning Objective 1: Describe what organizations are like as work settings.

Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Hard AACSB: Analytic 37) A manager who emphasizes meeting production targets even if there is a cost overrun is more interested in performance efficiency than in performance effectiveness. Answer: False Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 38) Some recent trends in managing organizations include: greater focus on command and control, concern for efficiency, and emphasis on individual performance. Answer: False Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 39) In the context of current organizational trends, organizations and their members are networked for intense, real-time communication and coordination. Answer: True Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 40) A manager is a person who supports, activates, and is responsible for the work of others. Answer: True Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers

Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 41) Middle managers are in charge of overseeing the overall operations of an organization. Answer: False Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 42) An example of a middle manager is a clinic director in a hospital who develops and implements action plans consistent with the objective set by the hospital’s higherlevel executives. Answer: True Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 43) The top managers of an organization constitute an executive team that is not accountable to any higher authority in the organization. Answer: False Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 44) Top managers set strategy and lead an organization in a manner consistent with its purpose and mission. Answer: True Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy

AACSB: Analytic 45) Typical job titles for middle managers include department head, team leader, and supervisor. Answer: False Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 46) A team leader is someone who coordinates complex projects with task deadlines while working with many persons within and outside the organization. Answer: False Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 47) The responsibilities of a team leader or supervisor will include planning meetings and work schedules; recruiting, training, and developing team members to meet performance standards; and recommending pay increases for subordinates. Answer: True Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 48) Staff managers are responsible for the work activities that make a direct contribution to the organization’s outputs. Answer: False Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

49) Line managers are responsible for work that makes a direct contribution to an organization’s outputs. Answer: True Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 50) Functional managers are primarily involved in using their special technical expertise to advise and support line workers. Answer: False Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 51) Effective managers successfully help others achieve both high performance and satisfaction in their work. Answer: True Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 52) Accountability flows upward in a traditional organizational structure or heirarchy. Answer: True Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 53) The upside-down pyramid view of organizations shows customers at the top being served

by workers who are supported by managers. Answer: True Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 54) In an upside-down pyramid, the best managers are often known for “helping” and “supporting” rather than “directing” and “order-giving.” Answer: True Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 55) Planning is the process of measuring work performance, comparing results to objectives, and taking corrective action as needed. Answer: False Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 56) Organizing is the process of assigning tasks, allocating resources, and coordinating the activities of individuals and groups to implement plans. Answer: True Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 57) Leading is the process of awakening people’s enthusiasm to work hard and inspiring their efforts to fulfill plans and accomplish objectives.

Answer: True Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 58) Controlling is the process of assigning tasks, allocating resources, and coordinating activities. Answer: False Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 59) Through control, a manager identifies desired results and ways to achieve them. Answer: False Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 60) In the management process, if the planning is impeccable, then there is no need for controlling. Answer: False Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 61) The four management functions are planning, delegating, leading and controlling. Answer: False Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process

Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 62) If an organization has a well-defined plan and strong leaders then the function of controlling is not required. Answer: False Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 63) According to Mintzberg, a manager’s informational role is limited to that of a figurehead. Answer: False Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 64) According to Mintzberg, as a monitor, a manager provides direction and instills enthusiasm. Answer: False Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 65) Through agenda setting, good managers develop action priorities that include goals and plans that span both long-term and short-term time frames. Answer: True Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

66) Networking is the process of building and maintaining positive relationships with people whose help may be needed to implement one’s work agendas. Answer: True Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 67) Lifelong learning is the ability to translate knowledge into action that results in desired performance. Answer: False Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 68) A technical skill is the ability to work well in cooperation with other persons, whereas a human skill is the ability to view a situation broadly and solve problems to the benefit of all concerned. Answer: False Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 69) Emotional intelligence is the ability to recognize, understand and manage feelings while working with others. Answer: True Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

70) Important managerial roles include giving, receiving, and analyzing information; interacting with people inside and outside the work unit; and using information to make decisions to solve problems or address opportunities. Answer: True Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Comprehension Difficulty: Medium AACSB: Reflective Thinking 71) A person high in emotional intelligence does not usually sense when another person’s emotions are negatively influencing a relationship. Answer: False Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic Question type: Multiple Choice 72) In today’s workplace, careers are being defined in terms of a) flexibility, free agency, skill portfolios, and entrepreneurship. b) free agency, entrepreneurship, skill portfolios, and control. c) skill portfolios, free agency, entrepreneurship, and competitiveness. d) free agency, skill portfolios, entrepreneurship, and diversity. e) entrepreneurship, free agency, skill portfolios, and traditional values. Answer: a Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 73) In addition to initiative and discipline, career success today requires a) continuous learning.

b) aggressiveness. c) competitiveness. d) a strong sense of tradition. e) assertiveness. Answer: a Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 74) The changing mix of ages and attitudes in the workplace is evidenced by which of the following survey results? a) 60% of millennials will change their first job after three years b) 72% of college students want a job where they can make an impact c) 45% of millennials are strong team players compared to 55% of baby boomers d) all of the above. e) none of the above Answer: d Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 75) ________is the collective brainpower or shared knowledge of a workforce that can be used to create value. a) Social capital b) Intellectual capital c) Workforce diversity d) Productivity e) Competency Answer: b Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy

AACSB: Analytic 76) Which of the following best defines competency? a) how hard one works to apply their talents and capabilities to the task at hand b) one’s talents and job-related capabilities c) shared knowledge of an organization’s employees d) both a and b e) a and c Answer: e Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 77) The intellectual capital equation states: Intellectual Capital = a) Competency × Commitment. b) Competency ÷ Commitment. c) Knowledge × Concept. d) Knowledge ÷ Concept. e) Intellect × Talent. Answer: a Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 78) ________represents one’s willingness to work hard in applying one’s capabilities to important tasks. a) Intellect b) Productivity c) Commitment d) Effectiveness e) Competency Answer: c

Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 79) The conceptual age as outlined by Daniel Pink theorizes that the most successful individuals will be those who? a) are creative and "right-brain" thinkers b) hold “whole mind” competencies c) have “high concept” and “high touch” skills d) all of the above e) none of the above . Answer: d Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 80) The members of a ________team are most likely to hold meetings, access common databases, share information and files, make plans, and solve problems together, all without ever meeting face to face. a) virtual b) specialized c) cross-functional d) self-managed e) formal Answer: a Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Technology 81) The fourth industrial age is characterized by.

a) technological advancements in energy industries b) the rise of electronics, telecommunications and computers c) the Internet, automation and robotics are change drivers d) the rise of alternative energy sources and expanded space exploration e) the decline of traditional manufacturing processes Answer: c Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Technology 82) ________is the worldwide interdependence of resource flows, product markets, and business competition. a) Collectivism b) Globalization c) Nationalization d) Diversification e) Orientalism Answer: b Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Diversity 83) A consequence of globalization is. a) reshoring b) job migration c) job concentration d) loss of competitive advantage e) loss of ethics Answer: b Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy

AACSB: Analytic 84) Which of the following best defines the term Tech IQ?. a) the ability to use current technologies at work and in your personal life, combined with the commitment to keep yourself updated as technology continues to evolve b) the ability to meet, access common databases, share information and files, make plans and decisions, solve problems, and complete tasks without ever meeting face to face. c) the ability to apply expertise and perform a special task with proficiency d) the ability to think analytically and achieve integrative problem solving e) the ability to manage ourselves and our relationships effectively Answer: a Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 85) Which of the following statements does not accurately describe the impact of the global economy? a) The world is increasingly arranged in regional economic blocks. b) Government leaders in our global economy are concerned about the competitiveness of nations. c) The national boundaries of business are disappearing. d) Countries and peoples are increasingly interconnected. e) There is less economic interdependence between nations. Answer: e Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 86) In today’s world, consumers find that their customer service call is answered in Ghana, their CAT scan is read by a radiologist in India, and their income tax return is prepared by an accountant in the Philippines. This has become possible primarily due to ___. a) collectivism

b) the glass-ceiling effect c) regional trade agreements d) globalization e) distributed leadership Answer: d Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 87) Job migration occurs primarily a) when firms shift jobs from one country to another. b) due to an ecological fallacy. c) when workforce diversity increases. d) when workers refrain from moving from their home country to another country. e) due to an increase in the productivity of the workforce. Answer: a Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 88) Which of the following is an advantage of reshoring? a) It helps safeguard the intellectual property of a firm. b) It shifts jobs from home countries to the overseas outlets of a firm. c) It increases the cost of transportation. d) It increases globalization. e) It increases job migration. Answer: a Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

89) Which of the following is defined as a code of moral principles that sets standards for what is “good” and “right” as opposed to “bad” and “wrong” in the conduct of a person or group? a) synergy b) ethics c) behaviour d) cohesiveness e) individualism Answer: b Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 90) Which of the following is not an indicator of ethical practice in an organization? a) strong corporate governance policies and practices b) emphasizing social responsibility and sustainability policies and practices c) strong internal audit policies and practices d) internal legal counsel e) formal code of conduct policy Answer: d Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Comprehension Difficulty: Hard AACSB: Reflective Thinking 91) ________describes the differences among workers in terms of gender, race, age, ethnicity, religion, sexual orientation, and able-bodiedness. a) Ethics b) Workforce diversity c) Masculinity-femininity d) Creative economy e) Competency Answer: b

Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 92) Jonas, an employee of Pluto Inc., thinks that business leaders should only be men. Due to this, he holds a grudge against his current manager, who is a woman.. Jonas often displays defiant behaviour at the workplace. His behaviour is an example of ___. a) prejudice b) whistleblowing c) subordination d) harassment e) bullying Answer: a Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 93) Differences among members of the workforce––such as age, gender, religion, national origin, sexual orientation, and able-bodiedness––are characteristics of ___. a) racial discrimination b) workforce diversity c) workforce demographics d) workforce planning and development e) human resource management Answer: b Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 94) Displaying negative, irrational opinions and attitudes toward members of diverse populations is considered to be ___.

a) discrimination b) unethical c) illegal d) prejudice e) immoral Answer: d Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 95) Treating minority members unfairly and denying them the full benefits of organizational membership is called ___. a) prejudice b) discrimination c) the glass-ceiling effect d) stereotyping e) bias Answer: b Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 96) Which of the following corporate positions ensures that the work environment utilizes the talents of all employees and allows them to learn and grow in their careers? . a) CEO b) CFO c) CDO d) CPA e) CIO Answer: c Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge

Difficulty: Easy AACSB: Analytic 97) The ________effect is an invisible barrier limiting career advancement of women and visible minorities. a) ecological fallacy b) masculinity-femininity c) job migration d) nationalization e) glass-ceiling Answer: e Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 98) Nicola is the most qualified candidate for the job of marketing manager at Lean Inc. However, the recruiters do not hire her because they feel that a woman would not be able to handle the responsibilities associated with such a senior position. This is an example of the ________effect. a) ecological fallacy b) globalization c) job migration d) glass-ceiling e) nationalization Answer: d Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 99) Glenn refused to promote Carmelia to the position of a global manager because she belonged to a minority community. He was of the opinion that her ethnic identity would limit her from working effectively and that it would make the company’s clients uncomfortable. Which attitude has Glenn displayed in his decision? a) discrimination

b) favouritism c) opportunism d) prejudice e) incompetency Answer: a Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 100) A well-known business executive is fired for not revealing a personal financial interest in a project that will significantly benefit company profits. This executive’s action is an example of ___. a) corporate social responsibility b) opportunistic behaviour c) violating managerial ethics d) adhering to company policies e) dishonesty Answer: c Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 101) When a company’s managerial accountability includes supporting employment opportunities and upward mobility for women, minorities, disabled persons, and seniors, the company is ___. a) providing good working conditions for employees b) practicing ethical behaviour c) valuing workforce diversity d) operating according to the Business Fairness and Civil Equities Act e) promoting differential treatment for some people Answer: c Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today

Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 102) In the 21st century, which ethical expectation is an organization and its stakeholders not likely to encounter? a) the expectation of treating customers right and acting in ways consistent with society’s values b) the expectation of sustainable development and protection of the natural environment c) the expectation of protecting consumers through product safety and fair practices d) the expectation of protecting human rights, including employment policies and practices e) the expectation that shareholders’ interests and profitability are the primary considerations when organizations make decisions affecting the environment Answer: e Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Comprehension Difficulty: Medium AACSB: Reflective Thinking 103) The typical characteristic of a(n) ________is that they typically operate with a core group of full-time long-term workers supported by others who work on contracts and parttime. a) shamrock organization b) ad hoc team c) combined task force d) project team e) joint task force Answer: a Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 104) Which of the following is the defining characteristic of a free-agent economy?

a) People often change jobs, with many working on independent contracts with a shifting mix of employers. b) The structure is totally centralized, and the leader makes all key decisions while most communication is done by one on one conversations. c) It consists of boundary-less organizations whose employees communicate only through the virtual media. d) In this system, organizations are exempted from tax, given that they use surplus revenues to achieve their goals rather than distribute them as profit. e) The structure is fully functional, and it consists of long-term employees who are mostly concerned with their respective areas of interest. Answer: a Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 105) The typical career in the 21st century ___. a) won’t be uniformly full-time and limited to a single organization. b) will require skills to be portable and of value to more than one employer. c) will require skills to be carefully maintained and upgraded over time. d) all of the above e) none of the above Answer: d Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 106) According to Charles Handy, the Irish shamrock can be used to describe the changing employment patterns in organizations of ___. a) full-time workers, part-time workers, and temporary workers b) contract workers, full-time workers, and core employees c) core workers, contract workers, and part-time workers d) skilled workers, unskilled labourers, and contract workers e) technical employees, unskilled labourers, and skilled workers Answer: c

Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 107) According to Charles Handy, a ________is a person who pursues a traditional career path. a) temporary skilled worker b) contract worker c) part-time worker d) core worker e) manager Answer: d Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 108) Which of the following is not considered a career survival skill? a) Entrepreneurship b) Networking c) Mastery d) Technology e) Life-long learning Answer: e Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 109) Which of the following is not one of the critical survival skills for the new workplace that is identified in the text? a) entrepreneurship b) love of technology

c) marketing d) teamwork e) mastery Answer: d Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 110) In Charles Handy’s shamrock concept, the second leaf of the shamrock is comprised of which of the following? a) freelancers b) independent contractors c) temporary, part-time workers d) a and b only e) a, b and c Answer: d Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 111) Which of the following statements holds true for the term self-management? a) It is a skill that involves being able to recognize one’s own strengths. b) This skill involves ignoring one’s own shortcomings. c) It is a skill that involves taking help from others for assessing oneself realistically. d) It involves hiring managers to help improve one’s personal development. e) This skill does not require one to be responsible for his or her actions. Answer: a Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic

112) Allen, a salesman at a retail store, is a quick learner and knows how to handle customers. He could become an assistant manager if he wasn’t reluctant to take on more responsibility and always looked for ways to leave work early. Which of the following skills does Allen lack, for his career advancement? a) competence b) commitment c) knowledge d) aptitude e) analytical Answer: b Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 113) To survive in the new workplace, people must do all of the following except a) be able to contribute something of value to their employers. b) have links with peers and others inside and outside the organization in order to get things done. c) be able to communicate personal and work group successes and progress. d) act as if they are running their own businesses. e) have an extensive knowledge of information technology. Answer: e Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 114) ________helps in maintaining connectivity with people that in turn helps with job searches and career advancement. a) Commitment b) Self-management c) Social networking d) Performance efficiency e) Job migration Answer: c Learning Objective 1: Describe what organizations are like as work settings.

Section Reference: 1.1 Working Today Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 115) An organization is a ___. a) collection of people working on the same projects b) collection of people working together to achieve a common purpose c) collection of people reporting to the same manager d) collection of people working in different departments e) collection of people working together in a business Answer: b Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 116) Providing value-added ________and/or ________is a broad purpose that all organizations share. a) information; resources. b) skills; knowledge. c) goods; services. d) structures; technology. e) information technology; training. Answer: c Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 117) ________is increasingly viewed as a source of organizational strength and performance advantage. a) Making a profit and providing a high return to shareholders b) Producing quality products and services and providing customer satisfaction c) Producing goods and services for worldwide consumption d) Making the highest return on investment and having the greatest profitability e) Diversification through mergers and acquisitions

Answer: b Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 118) Organizations are complex systems composed of ___. a) various subsystems, each of which works for separate goals b) sets of organizational policies and processes c) many interdependent parts that function together to achieve a common purpose d) different groups or units working for the same organization e) completely independent subsystems that interact with their environments Answer: c Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 119) Which of the following is a typical characteristic of an open system organization? a) It is an organization that is convened for a specific purpose and disbands when its task is completed. b) It is a system where each member has the authority to make decisions about how they share and complete their work. c) It is a system where communication flows only between individual members and a hub. d) It is a system in which subgroups have limited communication with one another. e) It is a system that transforms resource inputs from the environment into product outputs. Answer: e Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 120) Which of the following accurately describes an open system organization? a) An open system is used to share and exchange information across organizational boundaries. b) An open system is a collection of subsystems that are not connected to the external

environment. c) An open system is one of many systems that have a positive impact on employee satisfaction. d) An open system interacts with the external environment in a continual process of transforming resource inputs into product outputs in the form of finished goods and/or services. e) An open system treats its employees as an important asset. Answer: d Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Comprehension Difficulty: Hard AACSB: Analytic 121) Which of the following statements accurately describes the interactions of an open system organization with its environment? a) The environment provides resource inputs including finished goods and/or services. b) The organization creates a transformation process for turning resource inputs into outputs. c) The environment consumes product outputs including people, money, materials, technology, and information. d) Resource inputs affect product outputs through a feedback loop. e) Workflows are part of the resource inputs. Answer: b Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 122) If an operation adds value to the original cost of resource inputs, not-for-profit organizations ________and business organizations ___. a) earn a profit; increase shareholder value b) benefit society; earn a profit c) earn a profit; promote corporate social responsibility d) increase shareholder value; promote corporate governance e) promote corporate social responsibility; increase market share Answer: b Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations

Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 123) ________refers to the quantity and quality of work performance, with resource utilization taken into account. a) Effectiveness b) Efficiency c) Profitability d) Productivity e) Organizational performance Answer: d Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 124) ________is an output measure of a task or goal. a) Commitment b) Productivity c) Competency d) Performance efficiency e) Performance effectiveness Answer: e Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 125) ________is an input measure of a task or goal. a) Commitment b) Productivity c) Competency d) Performance efficiency e) Performance effectiveness Answer: d

Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 126) The annual productivity report of Papyrus Inc. states that it has achieved the targets it had set for the year 2021. However, in this process, much of its resources have been wasted, and the amount spent on resources is more than the estimated amount. Its productivity has been a) effective and efficient. b) neither effective nor efficient. c) not effective but efficient. d) effective but not efficient. e) stagnant in terms of efficiency and effectiveness. Answer: d Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Application Difficulty: Medium AACSB: Analytic 127) The annual productivity report of Papyrus Inc. states that it has not achieved the targets it had set for the year 2021. However, in this process, Papyrus found that it also did not waste its resources. Its productivity has been a) effective and efficient. b) neither effective nor efficient. c) not effective but efficient. d) effective but not efficient. e) stagnant in terms of efficiency and effectiveness. Answer: c Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Application Difficulty: Medium AACSB: Analytic 128) The annual productivity report of Papyrus Inc. states that it has achieved the targets it had set for the year 2021, and in the process Papyrus did not waste its resources. Its productivity has been

a) effective and efficient. b) neither effective nor efficient. c) not effective but efficient. d) effective but not efficient. e) stagnant in terms of efficiency and effectiveness. Answer: a Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Application Difficulty: Medium AACSB: Analytic 129) The annual productivity report of Papyrus Inc. states that it has not achieved the targets it had set for the year 2021, and in the process, Papyrus wasted much of its resources. Its productivity has been a) effective and efficient. b) neither effective nor efficient. c) not effective but efficient. d) effective but not efficient. e) stagnant in terms of efficiency and effectiveness. Answer: b Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Application Difficulty: Medium AACSB: Analytic 130) Bumblebee is a toy manufacturing company; and while the company has been effective in managing its resources without any waste, its productivity efficiency report shows a decrease in the year 2021 when compared to the previous year. This outcome indicates that its productivity is ___. a) efficient but not effective b) neither effective nor efficient c) effective and efficient d) effective but not efficient e) stagnant Answer: a Learning Objective 1: Describe what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Application

Difficulty: Medium AACSB: Analytic 131) Collin, a trainee with an event management firm, was asked to coordinate the designing, production, and installment of banners and posters for an upcoming project. He was assigned a particular amount of money for this purpose. Collin completed the job in time but exhausted his resources. He made a request for additional funds to make the remaining payments to the vendors. In which of the following ways can Collin’s performance be categorized? a) effective but not efficient b) effective and efficient c) neither effective nor efficient d) not effective but efficient e) essential but not effective Answer: a Learning Objective 1: Describe what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 132) The productivity of a company is neither efficient nor effective when its a) goals are not achieved, and resources are wasted. b) goals are achieved, and resources are not wasted. c) goals are achieved however resources are wasted. d) performance effectiveness is high. e) goals are not achieved nor are resources wasted. Answer: a Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 133) The productivity of a company is effective and efficient if its a) goals are not achieved, and resources are wasted. b) goals are achieved, and resources are not wasted. c) goals are achieved however resources are wasted. d) performance effectiveness is low. e) goals are not achieved nor are resources wasted.

Answer: b Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 134) ________is an output measure of task or goal accomplishment. a) Job satisfaction b) Competency c) Performance effectiveness d) Performance efficiency e) Tech IQ Answer: c Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 135) A measure of the resource cost associated with goal accomplishment is called ___. a) performance efficiency b) productivity c) return on Investment d) performance effectiveness e) value creation Answer: a Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 136) Which of the following statements does not accurately describe the impact of resource utilization and goal attainment on organizational performance? a) When resource utilization is poor and goal attainment is low, organizational performance is neither effective nor efficient.

b) When resource utilization is good and goal attainment is low, organizational performance is efficient but not effective. c) When resource utilization is poor and goal attainment is high, organizational performance is effective but not efficient. d) When resource utilization is good and goal attainment is high, organizational performance is both effective and efficient. e) Organizational performance is unaffected by poor versus good resource utilization and low versus high goal attainment. Answer: e Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Comprehension Difficulty: Hard AACSB: Analytic 137) A manager who emphasizes cost containment, even at the expense of missing production targets, is more interested in ________than in ___. a) performance efficiency; performance effectiveness b) performance effectiveness; performance efficiency c) productivity; performance efficiency d) productivity; performance effectiveness e) productivity; profitability Answer: a Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 138) The difference between performance effectiveness and performance efficiency is that the a) former is an output measure of goal accomplishment and the latter is an input measure of the resource costs associated with goal accomplishment. b) former focuses on resource utilization and the latter focuses on the quantity and quality of work performance. c) former emphasizes machine efficiency, while the latter emphasizes human capital. d) former emphasizes the performance of the team as a whole and the latter emphasizes the performance of the individual employees. e) former leads to a decrease in customer satisfaction, while the latter reduces productivity. Answer: a

Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Comprehension Difficulty: Medium AACSB: Reflective Thinking 139) Mathilda, who works for an insurance company, has the capacity to sell fifteen insurance policies a day. However, she sells only ten insurance policies a day. This is an example of ___. a) information asymmetry b) the glass-ceiling effect c) inefficiency d) an ecological fallacy e) the functional chimneys problem Answer: c Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 140) Emphasis on teamwork, pre-eminence of technology, and concern for work-life balance are examples of a) performance effectiveness b) performance efficiency c) productivity d) current organizational trends e) none of the above Answer: d Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 141) Which of the following is true in the context of present-day organizational trends? a) Workers are more tolerant of hierarchy. b) Little attention is paid to preservation of natural resources. c) There is a greater focus on valuing human capital. d) Organizations are less horizontal in focus.

e) Traditional top-down bosses are popular. Answer: c Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 142) A manager may be defined as ___. a) someone who directly supports and helps activate the work efforts and performance accomplishments of others b) someone who is loyal to the organization c) someone who is responsible for directing and/ supervising lower-level employees d) someone who is part of the organizational hierarchy e) someone who tries to produce as much output with as little personal input as possible Answer: a Learning Objective 1: Describe what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 143) When managers are classified according to hierarchical levels in the organization they are described as ___. a) project and product managers b) global and domestic c) top, middle, and team leaders or supervisors d) functional, staff, and line e) administrative and general Answer: c Learning Objective 1: Describe what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 144) ________are responsible for the performance of the organization as a whole or of one of its major parts.

a) Top managers b) Middle managers c) Team leaders or supervisors d) Functional managers e) Project managers Answer: a Learning Objective 1: Describe what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 145) Which of the following statements does not accurately describe the activities of top managers? a) Top managers pay special attention to the external environment. b) Top managers are alert to potential long-run problems and opportunities and develop appropriate ways of dealing with them. c) Top managers are responsible for an organizations large departments or divisions. d) Top managers create and communicate long-term vision. e) Top managers ensure that strategies and objectives are consistent with the organization’s mission. Answer: c Learning Objective 1: Describe what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 146) ________are in charge of relatively large departments or divisions consisting of several smaller work units. a) Top managers b) Middle managers c) Team leaders or supervisors d) General managers e) Project managers Answer: b Learning Objective 1: Describe what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge

Difficulty: Easy AACSB: Analytic 147) In not-for-profit organizations such as hospitals or universities, a ________is responsible for the management of the organization. a) team leader b) board of trustees c) middle manager d) chief executive officer e) department head Answer: b Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 148) Who elects the members of the board of directors? a) top managers b) shareholders c) middle managers d) first-line managers e) senior staff Answer: b Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 149) To which of the following categories does the chief financial officer (CFO) of an organization typically belong? a) board of directors b) middle managers c) first-line managers d) top managers e) board of trustees Answer: d

Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 150) An organization’s chief information officer (CIO) is in the __________category. a) board of directors b) middle managers c) first-line managers d) top managers e) board of trustees Answer: d Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 151) Hospital clinic directors, university deans, and corporate division managers are all examples of which manager category? a) functional b) middle c) first-line d) top e) staff Answer: b Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 152) ________are in charge of guiding the performance of an organization as a whole or one of its major departments or divisions. a) Top managers b) Board of directors c) Middle managers d) First-line managers e) Board of trustees

Answer: a Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 153) The middle managers of an organization a) are in charge of the organization as a whole. b) are appointed by the shareholders of an organization. c) oversee the work of large departments. d) hold titles such as department head, team leader, or supervisor. e) constitute an executive team that reports to the board. Answer: c Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 154) Which statement about middle management is true? a) Middle management includes executives and vice presidents. b) Middle managers work with top managers and coordinate with peers to develop and implement action plans to accomplish organizational objectives. c) Middle managers develop high-level action plans for implementation by people at lower levels in the organization. d) Middle managers do not have other managers reporting to them. e) Middle managers constitute the first level of an organization’s hierarchy of authority. Answer: b Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 155) A ________is a person who is in charge of a small work group composed of non-managerial workers.

a) general manager b) line manager c) team leader d) middle manager e) functional manager Answer: c Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 156) The responsibilities of team leaders and supervisors include all of the following except a) encouraging high performance and teamwork. b) informing team members about organizational goals and expectations. c) developing and implementing action plans for large departments or divisions. d) informing higher levels of team needs and accomplishments. e) coordinating with other teams and supporting their work efforts. Answer: c Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 157) ________pursue work-unit performance objectives that are consistent with higher-level organizational goals. a) Top managers b) Middle managers c) Team leaders or supervisors d) Functional managers e) General managers Answer: c Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

158) Managers who have responsibility for work activities that make a direct contribution to producing the organization’s product or service are called ___. a) general managers b) line managers c) middle managers d) staff managers e) project managers Answer: b Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 159) Managers who use special technical expertise to support the efforts of line workers are called ___. a) line managers b) staff managers c) project managers d) general managers e) administrators Answer: b Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 160) ________managers use their special technical expertise to support the efforts of ________managers. a) General; functional b) Administrative; project c) Higher-level; lower-level d) Staff; line e) Line; staff Answer: d Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers

Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 161) A manager who has responsibility for a single area of activity in the organization is a___. a) staff manager b) line manager c) functional manager d) general manager e) project manager Answer: c Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 162) A manager who is responsible for complex organizational units that include many functional areas of activity is ___. a) an administrator b) a staff manager c) a supervisor d) a team leader e) a general manager Answer: e Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 163) A plant manager who oversees the purchasing, manufacturing, warehousing, sales, and personnel functions may be described as a(n) ___. a) general manager b) administrator c) functional manager d) staff manager e) project manager

Answer: a Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 164) Team leaders ideally report to the ___. a) top managers b) board of directors c) board of trustees d) first-line managers e) middle managers Answer: e Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 165) ________directly contribute to producing an organization’s goods or services. a) Line managers b) Staff managers c) Top managers d) Middle managers e) Trustees Answer: a Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 166) Addison is the sales manager of a firm whose responsibility is limited to the sphere of marketing. Addison’s job profile indicates that Addison is a ________of the firm. a) director b) general manager c) trustee d) shareholder

e) functional manager Answer: e Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Application Difficulty: Medium AACSB: Analytic 167) Kelsey oversees all the operations of a firm, from purchasing to manufacturing to human resources to finance and accounting functions. Kelsey is the ________of the firm. a) general manager b) line manager c) functional manager d) team leader e) director Answer: a Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Application Difficulty: Medium AACSB: Analytic 168) Job titles such as chief operating officer (COO), chief executive officer (CEO), or vice president are commonly used by ________in organizations. a) board members b) top managers c) team leaders d) middle managers e) functional managers Answer: b Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 169) A manager in a public or not-for-profit organization might be referred to as a(n) ___. a) director

b) president c) administrator d) team leader e) trustee Answer: c Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 170) ________is the requirement of one person to answer to a supervisor about the performance in their area of responsibility. a) Productivity b) Competency c) Performance effectiveness d) Accountability e) Performance efficiency Answer: d Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 171) The organizational requirement for one person to answer to a higher authority for performance results in his or her area of work responsibility is known as ___. a) productivity b) quality management c) accountability d) chain of command e) performance management Answer: c Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

172) Truly effective managers utilize organizational resources in ways that result in both ________and ___. a) high-performance outcomes; high levels of satisfaction for the workers b) high-performance outcomes; high returns to the shareholders c) high-quality products or services; high returns to the shareholders d) high profit margins; large market shares e) high returns to the shareholders; high levels of satisfaction for the workers Answer: a Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 173) Which of the following demonstrates corporate governance in an organization? a) A board of directors holds the top management accountable for organizational performance. b) Minority members are denied the full benefits of organizational membership. c) The traditional top-down “do as I say” form of management prevails. d) Top managers guide the performance of an organization as a whole. e) Team leaders report to middle managers about the performance of the non-managerial workers. Answer: a Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 174) ________is the overall quality of human experiences in the workplace. a) Productivity b) Competency c) Performance effectiveness d) Quality of work life e) Performance efficiency Answer: d Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge

Difficulty: Easy AACSB: Analytic 175) Which statement about quality of work life (QWL) is false? a) QWL expresses true respect for people at work. b) QWL is part of all manager’s accountability. c) QWL provides for protection of individual rights. d) QWL deals with human resource utilization in the performance process. e) QWL changes very little during tough economic times. Answer: e Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 176) Which of the following questions was posted by Jeffrey Pfeffer? a) Why do we give so much attention to human sustainability and ‘organizational effects on employee health and mortality”? b) Why don’t we give more attention to human sustainability and ‘organizational effects on employee health and mortality”? c) Why don’t we give equal attention to human sustainability and ‘organizational effects on employee health and mortality”? d) Why do we give equal attention to human sustainability and ‘organizational effects on employee health and mortality”? e) Why don’t we give more attention to human sustainability and ‘organizational effects on shareholder expectations”? Answer: b Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Hard AACSB: Analytic 177) The upside-down pyramid view of organizations shows a) managers at the top being in charge of the overall operations of the organization. b) customers at the top being served by workers who are supported by managers. c) that board of directors can hold top management accountable for organizational performance.

d) that operating and front-line workers are at the bottom of the pyramid followed by the middle managers. e) that the primary job of top executives is to preserve the resources of the company. Answer: b Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 178) Kendall has been promoted to one of the company’s top managerial positions and needs to set new goals and missions for the team. Which of the following functions will Kendall ideally carry out in this new capacity? a) Make decisions regardless of a difference of opinion with his superiors. b) Be attentive to any potential long-run problems and opportunities. c) Take control of divisions consisting of several smaller work units. d) Reduce the quality and quantity of inputs to increase the outputs. e) Take charge of a small work group composed of non-managerial workers. Answer: b Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 179) Ryan works in a private firm and manages the accounts department with a team of four junior accountants. In this scenario, Ryan would be categorized as a ___. a) line manager b) boundary spanner c) functional manager d) general manager e) non-managerial worker Answer: c Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking

180) Which of the following is typically the first step of the management process? a) organizing b) analyzing c) leading d) controlling e) planning Answer: e Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 181) Which of the following is not one of the four management process functions? a) organizing b) analyzing c) leading d) controlling e) planning Answer: b Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 182) In the context of the management process, ________is the process of setting objectives and determining what should be done to accomplish them. a) organizing b) inspiring c) leading d) planning e) controlling Answer: d Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

183) In the context of the management process, organizing is the process of a) setting objectives and determining what should be done to accomplish them. b) assigning tasks, allocating resources, and coordinating work activities. c) preparing team members to achieve closure and disband. d) measuring performance and taking action to ensure desired results. e) motivating team members to increase team cohesiveness to ensure the occurrence of groupthink. Answer: b Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 184) In the context of the management process, leading primarily involves a) setting objectives and determining what should be done to accomplish them. b) assigning tasks, allocating resources, and coordinating work activities. c) arousing enthusiasm and inspiring efforts to achieve strong performance reach goals. d) preparing team members to achieve closure and disband. e) developing action priorities for accomplishing goals and plans. Answer: c Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 185) In the context of the management process, which of the following best describes the process of controlling? a) Setting objectives and determining what should be done to accomplish them. b) Assigning tasks, allocating resources, and coordinating work activities. c) The process of arousing enthusiasm and inspiring efforts to achieve goals. d) Measuring performance and taking action to ensure desired results. e) Developing action priorities for accomplishing goals and plans. Answer: d Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process

Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 186) The CEO of a large retail store chain has decided to sell off or close some of the locations that are not profitable. This is an example of the management function referred to as ___. a) delegating b) planning c) organizing d) leading e) controlling Answer: b Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 187) Leslie assigns Morgan a project to be completed by the end of the month and then holds periodic meetings to review Morgans’ progress. Which of the management functions is Leslie performing? a) delegating b) planning c) organizing d) leading e) controlling Answer: e Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 188) Assigning tasks, allocating resources, and arranging the coordinated activities of individuals and groups to implement plans describes the management function of ___. a) delegating b) planning c) organizing d) leading

e) controlling Answer: c Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 189) Inspiring and motivating employees to work hard and supporting their efforts to fulfill plans and accomplish objectives describes the management function of ___. a) planning b) organizing c) motivating d) leading e) controlling Answer: d Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 190) The owner of OFC, a small, family-owned business that manufactures and markets organic fruit spreads, has hired eight students to help during the summer season. The students were divided into two groups. The first group, led by Parker prepares the fruit for cooking. The second group led by Riley packs the filled and cooled jars into boxes. When the owner meets with Parker to find out why the group is not preparing the fruit as quickly as was expected, the owner is engaged in which management function? a) planning b) organizing c) leading d) motivating e) controlling Answer: c Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Hard AACSB: Analytic

191) OFC is a small, family-owned business that manufactures and markets fruit spreads. Every day at break time, the owner of the company randomly selects a jar from inventory to serve to the employees. Each employee samples the spread and evaluates its quality. This is an example of ___. a) planning b) organizing c) leading d) controlling e) delegating Answer: d Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 192) According to Mintzberg, which of the following is a function of a manager’s informational role. a) leader b) disturbance handler c) disseminator d) entrepreneur e) resource allocator Answer: c Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 193) In accordance with the set of managerial roles outlined by Mintzberg, as a monitor, a manager is required to a) scan for information. b) provide direction. c) handle budgets. d) forge agreements. e) share information. Answer: a

Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 194) According to Mintzberg, the interpersonal roles of a manager primarily involve a) the giving, receiving, and analyzing of information. b) providing direction and instilling enthusiasm. c) handling budgets and distributing resources. d) making deals and forging agreements. e) interacting with people inside and outside the work unit. Answer: e Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 195) According to Mintzberg, as a resource allocator, a manager is mainly involved in a) the giving, receiving, and analyzing of information. b) providing direction and instilling enthusiasm. c) handling budgets and distributing resources. d) making deals and forging agreements. e) interacting with people inside and outside the work unit. Answer: c Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 196) Henry Mintzberg identified a set of roles that managers perform. These roles are grouped into which of the following three categories? a) interpersonal, strategic, and decisional b) strategic, informational, and authoritarian c) interpersonal, informational, and decisional d) supervisory, authoritarian, and decisional e) supervisory, informational, and strategic

Answer: c Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 197) According to Henry Mintzberg, managerial roles that involve interactions with people inside and outside the work unit are called ___. a) informational roles b) interpersonal roles c) decisional roles d) technical roles e) human roles Answer: b Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 198) Being an entrepreneur, disturbance handler, resource allocator, and negotiator are part of the ________roles of a manager. a) decisional b) informational c) interpersonal d) monitoring e) allocation Answer: a Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 199) Shannon, a manager at Worth Industries and fluent in Mandarin, acts as a translator for the company’s clients in China. Which of the following roles of a manager is Shannon performing in this scenario?

a) resource allocator b) monitor c) spokesperson d) leader e) disturbance handler Answer: c Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 200) As a manager, Rachel made sure that her employees’ morale was always high by conducting open discussions on projects, initiating programs to help employees deal with various aspects of their lives, and acknowledging the work they were doing. Which of the following functions of management is being executed by Rachel? a) planning b) organizing c) controlling d) leading e) measuring Answer: d Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 201) A volleyball coach must identify which players are best-suited for each position on the team and how the assembly of the larger unit will allow for the plays or strategies to be successfully executed. Placing just one player into a position in which he or she is not best-suited or does not understand the responsibility attached, may have adverse effects on the entire team’s ability to complete a play or strategy. The volleyball coach is performing the management function of ___. a) planning b) leading c) controlling d) organizing e) following Answer: d

Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Application Difficulty: Medium AACSB: Analytic 202) Greer is the manager of a hardware store and inspires the employees by working alongside them through the holidays, encouraging them to voice their opinions, suggestions, and concerns and works hard to encourage a positive attitude among all of the employees. Greer is performing the management function of ___. a) planning b) leading c) controlling d) organizing e) following Answer: b Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Application Difficulty: Medium AACSB: Analytic 203) After reviewing sales reports, Hayden, a sales manager, sees that sales representatives were not meeting their sales targets. Hayden realized that the number of customers assigned to each sales representative was too much and did not allow each sales representative sufficient time with each customer. As a result, Hayden decided to hire at least two more sales representatives. Hayden is performing the management function of ___. a) planning b) leading c) controlling d) organizing e) following Answer: c Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 204) When general managers develop action priorities for their jobs that include goals

and plans spanning short-term and long-term time frames, they are performing the ____________activity. a) agenda setting b) leading c) motivating d) controlling e) information processing Answer: a Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 205) ________primarily involves developing action priorities for accomplishing goals and plans. a) Organizing b) Agenda setting c) Capitalizing d) Information scanning e) Controlling Answer: b Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 206) The process of creating positive relationships with people who can help advance agendas is referred to as ___. a) organizing b) networking c) capitalizing d) allocating e) controlling Answer: b Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge

Difficulty: Easy AACSB: Analytic 207) Which of the following best describes social capital? a) A unique form of ethical entrepreneurship that seeks novel ways to solve pressing social problems. b) The ability to manage ourselves and our relationships effectively. c) A capacity to create positive relationships with people who can help advance agendas. d) The capacity to get things done with the support and help of others. e) The ability to think analytically to diagnose and solve complex problems. Answer: d Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 208) Which of the following best describes learning? a) A change in behaviour that results from experience. b) The capacity to get things done with the support and help of others. c) The process of measuring performance and taking action to ensure desired results. d) The ability to use expertise to perform a task with proficiency. e) The ability to think analytically and achieve integrative problem solving. Answer: a Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 209) Which of the following best describes lifelong learning? a) A change in behaviour that results from experience. b) The process of constantly learning from all experiences and opportunities. c) The process of measuring performance and taking action to ensure desired results. d) The ability to use expertise gained from past experiences to perform a task with proficiency. e) The ability to think analytically and achieve integrative problem solving. Answer: B

Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 210) A(n) ________is the ability to translate knowledge into action that results in desired performance. a) concept b) commitment c) agenda d) process e) skill Answer: e Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 211) A technical skill is the ability to a) work well in cooperation with other people. b) focus on the “soft” skills at work. c) use expertise to perform a task with proficiency. d) think analytically and diagnose and solve complex problems. e) manage ourselves and our relationships effectively. Answer: c Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 212) According to Robert Katz, which of these managerial skills is least important to a top manager? a) technical skills b) organizational skills c) administrative skills d) conceptual skills e) supervisory skills

Answer: a Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 213) According to Robert Katz, which of these managerial skills is considered most important to a top manager? a) technical skills b) organizational skills c) administrative skills d) conceptual skills e) supervisory skills Answer: d Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 214) Tristan is calculating the departments’ inventory turnover statistics for the most recent quarter. Tristan is drawing mainly on ________skills. a) supervisory b) conceptual c) creative d) technical e) strategic Answer: d Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Application Difficulty: Easy AACSB: Analytic 215) Dakota, the manager of a company that manufactures carpets has a reputation for being open and supportive in dealing with employees. Employees can feel free to talk to Dakota about any problems they have. Dakota is demonstrating

a) a technical skill. b) a human skill. c) a communicative skill. d) an administrative skill. e) a conceptual skill. Answer: b Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Application Difficulty: Medium AACSB: Analytic 216) A prospective employer asks Grayson, “What kind of contribution can you make to our company with your knowledge?” The employer is focusing on Grayson’s ________skills. a) human b) conceptual c) interpersonal d) critical thinking e) technical Answer: e Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 217) Knowing how to write a business plan, using statistics to analyze data from a market survey, and preparing visual aids for a presentation are part of a manager’s ________skills. a) peripheral b) technical c) human d) conceptual e) advanced Answer: b Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic

218) A(n) ________skill is the ability to think analytically to diagnose and solve complex problems. a) conceptual b) human c) technical d) kinesthetic e) interpersonal Answer: a Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 219) Human skills are also referred to as ________skills. a) conceptual b) interpersonal c) technical d) emotional e) intellectual Answer: b Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 220) Which of the following is a defining characteristic of a manager with good human skills? a) capacity to break problems into smaller parts b) knowing how to write a business plan c) a high degree of emotional intelligence d) expertise at handling budgets and distributing resources e) ability to inspire efforts to achieve goals Answer: c Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Knowledge

Difficulty: Medium AACSB: Analytic 221) A(n) ________skill refers to the ability to work well in cooperation with other people. a) conceptual b) technical c) emotional d) human e) analytical Answer: d Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 222) An important component of ________is the ability to manage ourselves and our relationships effectively, which is also known as ___. a) human skills; emotional intelligence b) human skills; self-management c) informational roles; self-management d) emotional intelligence; interpersonal roles e) emotional intelligence; interactional skills Answer: a Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 223) The degree of importance associated with ________skills remains relatively consistent across all levels of management. a) technical b) human c) diagnostic d) conceptual e) analytical Answer: b

Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 224) ________is the ability to manage ourselves and our relationships effectively. a) Conceptual skill b) Technical skill c) Tech IQ d) Emotional intelligence e) Critical thinking Answer: d Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 225) Which statement concerning the relative importance of technical, human, and conceptual skills at different management levels is true? a) Their relative importance tends to be about the same at each managerial level. b) Technical skills are of greatest importance for middle managers. c) Conceptual skills are most important for top managers. d) Human skills are of greatest importance for lower-level managers. e) Technical skills are not needed at all by top managers. Answer: c Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 226) A manager who is using spreadsheet software to prepare a departmental budget is exercising a ________skill. a) supervisory b) conceptual c) creative d) technical e) strategic

Answer: d Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 227) Taylor is the new COO of a large hotel chain. After assessing the hotel chain’s operations, Taylor drew up a proposal of needed changes for management, including how those changes would affect the hotel and its employees, new job responsibilities, new performance measures, and the training that would be required. Taylor is using ________to help the hotel’s management have a better understanding of the impact the changes. a) human skills b) technical skills c) conceptual skills d) analytical skills e) interpersonal skills Answer: c Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Application Difficulty: Medium AACSB: Analytic 228) Alex is a software engineer and develops games for Supergamer.com. Which of the following skills is Alex most likely to use in order to fulfill the job responsibilities? a) financial skills b) gross motor skills c) interpersonal skills d) human skills e) technical skills Answer: e Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Application Difficulty: Medium AACSB: Analytic

229) Morgan, a marketing manager at Tesron Automobiles, is discussing an automobile concept with the design team, and the discussion quickly turns argumentative. Morgan, diffuses the argument by diverting the group’s attention to another topic. This scenario illustrates that Morgan has a high degree of ___. a) technical skills b) critical thinking c) marketing skills d) emotional intelligence e) cognitive intelligence Answer: d Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Application Difficulty: Medium AACSB: Analytic 230) Which of the following essential management skills is equally important to all levels of management? a) technical skills b) critical thinking skills c) human skills d) emotional intelligence skills e) cognitive intelligence skills Answer: c Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage Bloom’s: Application Difficulty: Medium AACSB: Analytic 231) A personal SWOT analysis does not include which of the following elements? a) Strengths b) Threats c) Opportunities d) Weaknesses e) Technical Answer: e Learning Objective 1: Summarize how we learn and use essential skills for career success. Section Reference: 1.5 Learning How to Manage

Bloom’s: Application Difficulty: Easy AACSB: Analytic Question type: Essay 232) Why is job migration considered to be a negative side effect of globalization? How is it being dealt with in Canada? Answer: One controversial side effect of globalization is job migration, the shifting of jobs from one country to another. The Canadian economy has been a net loser to job migration while countries like China, India, and the Philippines have been net gainers. Politicians and policymakers regularly debate the high costs of job migration as local workers lose jobs, and their communities lose economic vitality. One side looks for new government policies to stop job migration and protect the jobs of Canadian workers. The other side calls for patience, believing that the national economy will strengthen and grow jobs in the long run as the global economy readjusts. Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Comprehension Difficulty: Medium AACSB: Reflective Thinking 233) Explain why advanced technology has made “networks” and “networking” increasingly important to organizations today. Answer: More and more, job searches are using multi-media resumes, online networking sites, and electronic portfolios that display skills and job qualifications. Many employers responding to one survey report using social networking sites in recruitment efforts and say that they are now checking the online profiles of their job applicants. Learning Objective 1: Summarize the challenges of developing and maintaining career readiness in the new economy Section Reference: 1.1 Working Today Bloom’s: Comprehension Difficulty: Medium AACSB: Reflective Thinking 234) Briefly describe what an organization and what a manager is? Why do organizations need managers? Answer: An organization is a collection of people working together to achieve a common purpose. A manager is a person in an organization who supports and is

responsible for the work performance of one or more other persons. Every manager’s job includes the responsibility of helping other people to achieve high performance. Without this help, the efforts of the organization’s members probably would not be coordinated sufficiently to achieve the organization’s common purpose. Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Comprehension Difficulty: Hard AACSB: Reflective Thinking 235) Explain the nature of productivity, performance effectiveness, and performance efficiency; and describe the interrelationships among these concepts. Answer: Productivity is the quantity and quality of work performance with resource utilization considered. Productivity reflects both performance effectiveness and performance efficiency. Performance effectiveness is a measure of task or goal accomplishment. Performance efficiency is a measure of the resource costs associated with goal accomplishment; it is a measure of outputs realized compared to inputs consumed. Effectiveness does not guarantee efficiency or vice versa. An organization can be effective but not efficient, efficient but not effective, neither effective nor efficient, or both effective and efficient. To be truly productive an organization must be both effective and efficient. Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 236) Presented in the textbook were seven organizational trends and transitions. List and define each of these trends. Answer: Here are some of the changes in present organizational trends: Focus on valuing human capital: The premium is on high-involvement work settings that rally the knowledge, experience, and commitment of all members. Demise of “command-and-control.” Traditional top-down “do as I say” bosses are giving way to participatory bosses who treat people with respect. Emphasis on teamwork: Organizations are more horizontal in focus and driven by teamwork that pools talents for creative problem solving. Pre-eminence of technology: New developments in computer and information technology continually change the way organizations operate and how people work. Importance of networking: Organizations and their members are networked for intense, realtime communication and coordination. New workforce expectations: A new generation of workers is less tolerant of hierarchy, more informal, attentive to performance merit, and concerned for work-life balance. Priorities on sustainability: Social values show more attention to the preservation of natural resources for future generations and understanding how work affects human well-being.

Learning Objective 1: Describe what organizations are like as work settings. Section Reference: 1.2 Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 237) List and briefly describe each of the four levels of hierarchical structure in a typical business organization. Answer: At the highest levels of business organizations, we find the board of directors whose members are elected by shareholders to represent their ownership interests. In not-for-profit organizations such as a hospital or university, this level is often called a board of trustees, and it may be elected by local citizens, appointed by government bodies, or invited by existing members. The top managers including the chief executive officer (CEO), chief operating officer (COO), chief financial officer (CFO), chief information officer (CIO), chief diversity officer (CDO), president, and vice president constitute an executive team that reports to the board and is responsible for the performance of an organization as a whole or for one of its larger parts. Middle managers report to top managers and are in charge of relatively large departments or divisions consisting of several smaller work units. Examples are clinic directors in hospitals; deans in universities; and division managers, plant managers, and regional sales managers in businesses. Middle managers work with top managers, coordinate with peers, and support lower levels to develop and pursue action plans that implement organizational strategies to accomplish key objectives. Team leaders report to middle managers and supervise non-managerial workers. Learning Objective 1.3: Discuss what it means to be a manager. Section Reference: 1.3 Managers Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 238) Richard is the manager of a local bookstore. The bookstore has a chain of stores across Canada. The basic organizational structure is depicted in the chart.

Based on this diagram, answer the following questions: a) What level of manager is Richard? Explain. b) Is Richard a line or a staff manager? Explain. c) Is Richard a general or a functional manager? Explain. d) Explain Richard’s role within the context of the upside-down pyramid view of an organization. e) Describe what Richard’s day may be like? f) Describe how Richard will use the managerial skills in his job. Which of these skills is the most important? Answer: a) Richard is a supervisor. He has one level of management working below him (assistant managers) and many levels above him. b) Richard is a line manager. His work directly contributes to the organization’s output. c) Richard is a general manager. He hires employees, creates marketing campaigns and orders inventory. d) In the upside-down pyramid view of an organization, as a manager, Richard would be known more for “helping” and “supporting” than for “directing” and “order giving.” He will be well informed regarding the needs of those reporting to or dependent on him. Richard will often be found providing advice and developing the support needed for others to perform to the best of their abilities. Basically, in the upside-down pyramid view, Richard’s job is to support the workers. e) Richard’s day will be very busy. He will look after staff problems, handle employee absences, work at a hectic pace, be interrupted frequently and communicate using a variety of media. f) Richard will use his technical skills by creating marketing campaigns, hiring staff, scheduling, accounting and using the computerized ordering system. Richard will use his human skills by interacting with his employees, customers, and bosses. He will use his conceptual skills by analyzing book sales, creating training programs for the staff, and problem-solving high staff turnover. The most important skill for Richard is technical. Learning Objective 1.3: Discuss what it means to be a manager.

Section Reference: 1.3 Managers Bloom’s: Comprehension Difficulty: Hard AACSB: Analytic 239) List and briefly describe the four different management functions. For each function provide an example of a task or activity representative of that function. Answer: The four functions of management in what is called the management process are— planning, organizing, leading, and controlling. Function Planning

Organizing

Leading

Controlling

Description The process of setting performance objectives and determining what actions should be taken to accomplish them. Through planning, a manager identifies desired results and ways to achieve them. The process of assigning tasks, allocating resources, and coordinating work activities.

The process of arousing enthusiasm and inspiring efforts to achieve goals. the process of measuring performance and taking action to ensure desired results.

Example Preparing a budget for the organization, department or division. Setting a plan to reduce employee turnover.

Setting up a committee to find ways to reduce employee turnover; or a committee to revamp an information system. The committee would set a chair, assigns roles, tasks and deliverables. Setting up an employee recognition program; setting up a mentorship program Using variance reports to identify cost overruns and savings. Documenting employee absentee rates and reasons

Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic

240) Discuss the various roles performed by a manager. Answer: The managerial roles fall into three categories—informational, interpersonal, and decisional roles. A manager’s informational roles involve the giving, receiving, and analyzing of information. A manager fulfilling these roles will be a monitor, scanning for information; a disseminator, sharing information; and a spokesperson, acting as official communicator. The interpersonal roles involve interactions with people inside and outside the work unit. A manager fulfilling these roles will be a figurehead, modelling and setting forth key principles and policies; a leader, providing direction and instilling enthusiasm; and a liaison, coordinating with others. The decisional roles involve using information to make decisions to solve problems or address opportunities. A manager fulfilling these roles will be a disturbance handler, dealing with problems and conflicts; a resource allocator, handling budgets and distributing resources; a negotiator, making deals and forging agreements; and an entrepreneur, developing new initiatives. Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 241) Describe the various challenges that managers face in the 21st century workplace. To what extent are you, as a future manager, prepared to meet each of these challenges? Explain your answer. Answer: The challenges that managers must face in the 21st century work environment include the following: Intellectual capital – intellectual capital and knowledge workers increasingly drive organizations; since knowledge constantly becomes obsolete, everyone is under pressure to learn and continually apply new knowledge. Globalization – economic competitiveness is a challenge of worldwide scope. Technology – the availability and ease of transferring information is affecting organizational work environments and the very nature of business itself. Diversity – organizations and their members are being challenged to deal positively with differences among people; meeting this challenge creates strategic opportunity. Ethics – modern society expects managers and leaders in all organizations to conduct their affairs according to high moral standards. Careers – careers will be different and everyone must be concerned with developing their skill portfolios to remain valuable resources to organizations. Each student should assess his/her own level of competency with respect to dealing with these challenges, as well as why he/she is/isn’t prepared to meet these challenges. Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Synthesis Difficulty: Medium AACSB: Reflective Thinking

242) Define each of the four functions of management and Mintzberg’s ten managerial roles. Describe how Mintzberg’s managerial roles might be used in performing the four functions of management. Answer: The four functions of management are planning, organizing, leading, and controlling. Planning is the process of setting objectives and determining what actions should be taken to accomplish them. Organizing is the process of assigning tasks, allocating resources, and arranging and coordinating the activities of individuals and groups to implement plans. Leading is the process of arousing people’s enthusiasm to work hard and direct their efforts to fulfill plans and accomplish objectives. Controlling is the process of measuring work performance, comparing results to objectives, and taking corrective action as needed. Mintzberg’s managerial roles include the following: (a) interpersonal roles (figurehead, leader, and liaison) involve interactions with people inside and outside the work unit; (b) informational roles (monitor, disseminator, and spokesperson) involve giving, receiving, and analyzing information; and (c) decisional roles (entrepreneur, disturbance handler, resource allocator, and negotiator) involve using information to make decisions, solve problems, or address opportunities. While all ten managerial roles might be used at one time or another in performing each of the four functions of management, many of them are more likely to be used in carrying out certain managerial functions. The entrepreneurial role, for instance, is closely linked to the managerial function of planning. In this role, direction is being set for the organization. The liaison, disseminator, and resource allocator roles are closely associated with organizing. The figurehead, leader, and spokesperson roles are closely aligned with leading. The monitor role is related primarily to controlling. Learning Objective 1.4: Explain the functions, roles, and activities of managers. Section Reference: 1.4 The Management Process Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

Schermerhorn, Management, Fifth Canadian Edition

CHAPTER 2 MANAGEMENT LEARNING PAST TO PRESENT Question type: True/False 1) The three classical management approaches are scientific management, bureaucratic organization and mathematical principles. Answer: False Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 2) The classical approaches to management assume that people are rational and selfactualizing. Answer: False Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 3) The principles of scientific management were proposed by Frederick Taylor. Answer: True Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 4) In the book The Principles of Scientific Management, Frederick Taylor stated that the principal objectives of management should be to maximize prosperity for both the employer and the employee. Answer: True Test Bank

Chapter 2 – Management Learning Past to Present

2-1

Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 5) A motion study is the science of analyzing a job or task and then reducing it to it most elementary components Answer: True Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 6) Time study is the science of reducing a task to its basic physical motions. Answer: False Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 7) Frederick Taylor’s four principles of scientific management focus on developing a science for every job, carefully selecting workers based on their abilities, simplifying work, introducing work standards and giving them proper incentives. Answer: False Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 8) Motion studies, conducted by Frank and Lillian Gilbreth, provided the foundation for modern job simplification, work standard techniques, and incentive wage plans. Answer: True Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches

Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 9) For UPS, productivity standards have cut down on inefficiencies and have increased productivity. Answer: True Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 10) Mary is very concerned with worker morale, and she frequently surveys employees to determine their level of job satisfaction. She feels that people really want to work, to take more responsibility, and to make a contribution. Her approach reflects application of scientific management principles in the workplace. Answer: False Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 11) Henri Fayol believed that management could be taught. Answer: True Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 12) Within the administrative practices approach to management the five duties of management include control. Answer: True Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy

AACSB: Analytic 13) One of the fourteen principles defined by Henri Fayol that is still applicable today is the unity of direction principle. Answer: True Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 14) One of the rules or duties within the administrative principles approach to management is coordination, which refers to providing and mobilizing resources to implement a plan. Answer: False Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 15) The disadvantage of administrative principles is that it includes excessive paperwork. Answer: False Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 16) The scalar chain principle states that there should be a clear and unbroken line of communication from the top to the bottom of the organization. Answer: True Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 17) The unity of command principle specifies that one person should be in charge of all

activities that have the same performance objective. Answer: False Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 18) Max Weber believed that efficiency in the utilization of resources and fairness in the treatment of employees and clients were potential advantages of bureaucratic organizations. Answer: True Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 19) Formal rules and procedures are defining characteristics of Max Weber’s bureaucratic organization. Answer: True Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 20) One of the defining characteristics of Max Weber’s bureaucratic organization is the fair and impartial application of rules and procedures. Answer: True Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 21) Behavioural approaches assume that people are social and self-actualizing, enjoy social relationships, respond to group pressures, and search for personal fulfillment.

Answer: True Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 22) The study of organizational behaviour led to the development of behavioural management approaches. Answer: False Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 23) Even though the way we manage work and organizations is changing, managers today can benefit from studying the history of management thought. Answer: True Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 24) Mary Parker Follett believed that making employee ownership and profit-sharing part of the organizational structure and culture would create feelings of collective responsibility. Answer: True Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 25) Mary Parker Follett’s belief that businesses were services and that private profits should always be considered in relation to the public good foreshadowed today’s concerns with managerial ethics and corporate social responsibility. Answer: True

Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 26) Many modern management concepts have parallels in some of the historical management writings, and contemporary managers are trying to perfect many ideas that have deep historical roots. Answer: True Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 27) Since so much has changed in management science, the writings of classical theorists like Mary Parker Follett are not relevant to the way organizations are managed today. Answer: False Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 28) Leon Prieto is often referred to as the “Father of African American Management”. Answer: False Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 29) One of the eight necessities of management outlined by Charles C. Spaulding is adequate communication. Answer: False Learning Objective 2.1: Describe the principal insights of classical management thinking.

Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 30) After a series of scientific tests, Elton Mayo and his team of researchers concluded that a new “social setting” created for workers in a test room decreased the productivity of those employees. Answer: False Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 31) According to Elton Mayo, people would restrict their output in order to avoid the displeasure of their group, even if it meant sacrificing pay that could otherwise be earned by increasing output. Answer: True Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 32) The Hawthorne effect is the tendency of persons singled out for special attention to perform as or better than expected. Answer: True Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 33) Neither group atmosphere nor participative supervision was found to be an important explanatory factor for improved productivity in the relay assembly test-room studies at Western Electric’s Hawthorne Works. Answer: False

Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 34) The Hawthorne studies shifted the attention of managers and scholars away from the technical and structural concerns emphasized by the classical management approach toward the study of social and human concerns as keys to productivity. Answer: True Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 35) A key lesson from the Hawthorne studies is that people’s feelings, attitudes, and relationships with co-workers have very little influence on their performance as compared with compensation and incentives. Answer: False Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 36) One of the findings of the Hawthorne studies is that physical working conditions have a much greater impact on worker performance and productivity than people’s feelings, attitudes, and relationships with their co-workers. Answer: False Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 37) A need is described by Abraham Maslow as a physiological or psychological deficiency that must be fulfilled. Answer: True

Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 38) According to the deficit principle, a satisfied need is a motivator of behaviour. Answer: False Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 39) According to the progression principle, a satisfied need does not motivate behaviour. Answer: False Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 40) Esteem, social and safety are all lower order needs according to Maslow’s hierarchy of needs. Answer: False Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 41) Self-actualization, esteem, and social are all higher order needs according to Maslow’s hierarchy of needs. Answer: False Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches

Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 42) Maslow’s ideas point managers toward finding ways to link volunteer work with opportunities to satisfy higher-order needs like esteem and self-actualization. Answer: True Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 43) Physiological and safety needs are higher-order needs in Maslow’s hierarchy of human needs. Answer: False Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 44) According to Maslow, the more the self-actualization need is satisfied, the weaker it becomes. Answer: False Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 45) Physiological needs refer to the needs for physical closeness and relationships with others. Answer: False Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy

AACSB: Analytic 46) Self-actualization is a term used by Maslow to explain why managers who understand and help people satisfy higher-order needs at work will achieve greater levels of productivity and fulfillment. Answer: False Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 47) Managers holding Theory Y assumptions approach their jobs believing that those who work for them generally dislike work, lack ambition, act irresponsibly, and prefer to be led rather than to lead. Answer: False Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 48) Based on McGregor’s Theory, Theory X managers are more effective in motivating people because they believe that their subordinates like work and are self-motivated and are willing to accept responsibility. Answer: False Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 49) Managers who hold Theory Y assumptions value diversity, empowerment and leadership. Answer: True Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy

AACSB: Analytic 50) Self-fulfilling prophecies are created by managers who hold Theory X or Theory Y assumptions. Answer: True Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 51) Both the Hawthorne studies and McGregor’s X and Y Theory predict that people tend to act in ways that are consistent with what managers expect of them. Answer: True Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 52) Argyris asserts that psychological success occurs when people define their own goals. Answer: True Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 53) Argyris believes that implementation of classical management ideas such as the bureaucratic organization and Fayol’s administrative principles will ensure that workers are productive and efficient. Answer: False Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

54) Argyris’s theory of adult personality counters Fayol’s concept of unity of direction. Answer: True Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 55) In contrast to Weber, Argyris believes that people work more efficiently in a clear hierarchy of authority, with those at higher levels controlling people at lower levels in the organization. Answer: False Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 56) Argyris believes that employee absenteeism, turnover, apathy, and low morale are caused by lack of adequate supervision and poorly defined tasks. Answer: False Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 57) The quantitative management approach uses mathematical techniques to improve managerial decision making and problem solving. Answer: True Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic

58) A grocery store receives complaints from customers that the waiting time is too long for checkouts during certain times of the day. This problem can be solved by the queuing theory. Answer: True Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 59) A real estate developer wants to control costs and finish building a new apartment complex on time. This problem can be solved by inventory analysis. Answer: False Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 60) Inventory modelling is used to help allocate service personnel or workstations to minimize customer waiting time and service cost. Answer: False Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 61) Network models break large tasks into smaller components to allow for better analysis, planning, and control of complex projects. Answer: True Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

62) Simulation is used to create models to determine how best to allocate scarce resources. Answer: False Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 630) Analytics is the systematic analysis of big data to solve problems and make decisions. Answer: True Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 64) People and technology are outputs in an open system. Answer: False Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 65) Goods and services are inputs in an open system. Answer: False Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

66) An open system interacts with its environment in the continual process of transforming resource inputs into outputs. Answer: True Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 67) According to the contingency theory, appropriate managerial behaviour can be generalized or extrapolated from other situations. Answer: False Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 68) Contingency thinking involves matching responses to the unique problems and opportunities posed by different situations and by individual and environmental differences. Answer: True Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 69) Contingency thinking is consistent with Weber’s concept of bureaucracy which is an ideal form of organizing. Answer: False Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

70) A tight bureaucracy works best when the environment is relatively stable and operations are predictable and uncomplicated. Answer: True Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 71) Total quality management (TQM) focuses primarily on specific quality issues within a particular segment within the larger organization. Answer: False Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 72) Continuous improvement involves always searching for new ways to improve work quality and performance. Answer: True Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 73) ISO certification requires companies to adopt quality benchmarks and then maintain them with strict conformity to quality that strongly discourages change or refinement. Answer: False Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Comprehension

Difficulty: Easy AACSB: Analytic 74) Knowledge management involves making decisions based on hard facts about what really works. Answer: False Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 75) Evidence-based management uses information from four sources; one of which is customer feedback. Answer: False Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Question type: Multiple Choice 76) Which of the following assumes that when at work people will rationally consider opportunities made available to them and do whatever is necessary to achieve the greatest personal and monetary gain? a) classical management approach b) Theory X c) theory of human needs d) behavioural management approach e) modern management approach Answer: a Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

77) Which of the following statements accurately describes the role of management history relative to contemporary management thought? a) Since the world of work and business continues to change, managers have little to gain from studying the history of management thought. b) Many modern management concepts have parallels in some of the historical management writings. c) Contemporary managers are trying to reinvent management practices. d) There are no useful lessons to be learned from historical management principles. e) c and d Answer: b Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 78) Which of the following is a classical management approach? a) Theory X b) Theory Y c) human needs theory d) Hawthorne studies e) administrative principles Answer: e Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 79) The three branches of the classical approach to management are ___. a) behaviourism, rationalism, and self-actualization b) scientific management, administrative principles, and bureaucratic organization c) authoritarian, permissive, and homeostatic d) economic, modern, and self-actualizing e) open, closed, and entropic Answer: b Learning Objective 2.1: Describe the principal insights of classical management thinking.

Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 80) The view that people will rationally consider available opportunities and do whatever is necessary to achieve the greatest personal economic gain is the underlying assumption of which approach to management thought? a) quantitative approach b) socio-economic approach c) modern approach d) classical approach e) behavioural approach Answer: d Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 81) ___ emphasizes careful selection and training of workers and supervisory support. a) Bureaucratic organization b) Theory X c) Theory Y d) Scientific management e) Administrative principles Answer: d Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 82) Who is known as the father of scientific management? a) Henri Fayol b) Frederick Taylor c) Max Weber d) Douglas McGregor e) Abraham Maslow

Answer: b Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 83) According to Frederick Taylor, the principle objective of management should be ___. a) profitability b) efficiency c) achieving the greatest good for society d) the good of the community e) securing maximum prosperity for both the employer and employee Answer: e Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 84) Which of the following was used by Taylor to find ways to improve workers’ productivity? a) Motion study b) Time study c) Scientific management d) Quantitative analysis e) None of the above Answer: b Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 85) Finley has been watching some of the workers on shift sort and put inventory in storage bins. It appears that much time and effort are being wasted and Finley decides to analyze the workers’ overall task and then select and train workers for specific parts of the job so as to increase workers’ productivity. Finley is applying the principles of ___. a) scientific management

b) organizational behaviour c) management science d) contingency theory e) administrative management Answer: a Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 86) A follower of Frederick Taylor would be least likely to try to ___. a) make results-based compensation a performance incentive b) select workers with the right abilities to do the job c) offer workers proper training d) motivate workers by encouraging them to work in small groups e) train supervisors to support workers by carefully planning their work Answer: d Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 87) The practical lessons of scientific management include all of the following except a) make results-based compensation a performance incentive. b) select workers with the right abilities to do the job. c) carefully design jobs with efficient work methods. d) allow workers to have input into the determination of work methods and performance standards. e) train supervisors to support workers by carefully planning their work. Answer: d Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 88) ___ refer(s) to a job science that includes careful selection and training of workers along

with proper supervisory support. a) Administrative principles b) Scientific management c) Contingency theory d) Self-actualization e) Fayol’s principles of management Answer: b Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 89) A group of friends wanted to start their own car detailing business. It was decided that to be as productive and profitable as possible they would break down the various jobs associated with cleaning the inside and outside of a car, and each would specialize in a job or task. With which of the following management approaches do their actions most agree? a) administrative principles b) scientific management c) contingency theory d) self-actualization e) Fayol’s principles of management Answer: b Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 90) Pizza Bliss, a pizza delivery chain, assures delivery of pizza within half an hour of the placement of order. It employs various techniques such specialization of work, motion studies, and analysis of routes to make sure that an order reaches a customer in no more than half an hour. Which of the following management techniques is Pizza Bliss most likely using? a) Maslow’s theory of human needs b) bureaucratic organization c) scientific management d) Hawthorne studies e) Theory X and Theory Y Answer: c

Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 91) Which of the following concepts has led to advances in the areas of job simplification, work standards, and incentive wage plans? a) administrative principles b) theory of human needs c) Theory X d) Theory Y e) motion study Answer: e Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 92) The work of Frank and Lillian Gilbreth on motion studies provided the basis for later advances in which of the following management areas? a) job simplification b) incentive wage plans c) work standards d) all of the above e) none of the above Answer: d Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 93) United Parcel Service (UPS) makes use of calibrated productivity standards as well as the timing of package sorting, delivery, and pickup to keep productivity at the highest level per employee. In developing worker productivity standards, UPS makes use of ___. a) behavioural theories b) self-actualization

c) systems theory d) scientific management e) administrative principles Answer: d Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 94) Henri Fayol’s ___ closely resemble the ___ that are used in contemporary businesses. a) three rules of management; systems and contingency approaches. b) administrative principles; systems and contingency approaches. c) five duties of management; four functions of management. d) notions of planning and organizing; ideas of command and coordination. e) principles of collective and social responsibility; functions of management. Answer: c Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 95) According to Henri Fayol, the five rules of management are ___. a) foresight, organization, command, coordination, and control b) authority, responsibility, discipline, remuneration, and initiative c) centralization, stability, initiative, communication, and espirit de corps d) prediction, hypothesis, observation, experimentation, and verification e) standardization, centralization, negative entropy, communication, and homeostasis Answer: a Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 96) Henri Fayol is noted for originating which of the following concepts? a) the scalar chain principle

b) the unity of command principle c) the unity of direction principle d) all of the above e) none of the above Answer: d Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 97) Which of the five rules of management is completing a plan of action for the future? a) Foresight b) Organization c) Command d) Coordination e) Control Answer: a Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 98) Which of the five rules of management is to lead, select, and evaluate workers to get the best work toward a plan? a) Foresight b) Organization c) Command d) Coordination e) Control Answer: c Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 99) The manager of a company fits diverse efforts together. He ensures that information is

shared, and problems are solved. Which of the following management duties is the manager performing? a) foresight b) organization c) command d) coordination e) control Answer: d Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 100) In a juice manufacturing plant, the production team manufactures 2,000 bottles of juice per day while the sales team sells only 1,700 bottles per day. Since the product is perishable, the extra output incurs losses to the company. The manager intervenes and sets a common standard for both teams. Which of the following management duties is the manager performing? a) control b) foresight c) coordination d) organization e) command Answer: a Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 101) ___ is to make sure things happen according to plan and to take necessary corrective action. a) Foresight b) Organization c) Command d) Coordination e) Control Answer: e

Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 102) A manager employs five workers to produce a total of 36 units of a product per day, and soon realizes that the workers are able to produce only 30 units a day. The manager then employs an additional worker to meet the set target. Which of the following duties of management is being applied? a) foresight b) organization c) command d) coordination e) control Answer: e Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 103) Which of the following is true of the scalar chain principle? a) Each person should receive orders from only one boss. b) There should be a clear and unbroken line of communication from the top to the bottom in an organization. c) One person should be in charge of all activities that have the same performance objective. d) Guidelines must be written and kept for historical record. e) Workers should be selected and promoted on ability, competency, and performance. Answer: b Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 104) Mr. Reymont, the founder of Reymont Public School, set multiple guidelines and rules about each governing body and the hierarchical structure. He has set up a system to ensure that crucial information reaches all stakeholders in the organization. This has helped in the smooth functioning of the school and avoided managerial overrides. Which of the following principles has Mr. Reymont adhered to in this scenario?

a) scalar chain of principle b) progression principle c) deficit principle d) participative management e) total quality management Answer: a Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 105) A worker receives an order to meet the daily production target from one manager and an order to train the new workers from another. Which of the following principles does this action contravene? a) scalar chain principle b) unity of command principle c) unity of direction principle d) principle of motion study e) principle of merit Answer: b Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 106) Which of the following is true of the unity of direction principle? a) One person should be in charge of all activities that have the same performance objective. b) Guidelines must be written and kept for historical record. c) Each person should receive orders from only one boss. d) There should be a clear and unbroken line of communication from the top to the bottom in an organization. e) Workers should be selected and promoted on ability, competency, and performance. Answer: a Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy

AACSB: Analytic 107) Which of the following best states the impetus for the development of a bureaucratic organization? a) Max Weber was trying to define the one best way to perform a job. b) Max Weber was attempting to upset German society. c) Max Weber was reacting to performance deficiencies in organizations of his day. d) Max Weber was attempting to identify a common set of employee needs in German society. e) Max Weber was interested in formulating exact rules of behaviour for German managers. Answer: c Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 108) Max Weber was concerned that people in nineteenth-century organizations were in positions of authority due to their ___ rather than their ___. a) political connections; leadership traits. b) social standing; job-related capabilities. c) leadership qualities; job requirements. d) economic wealth; social standing. e) managerial competence; economic wealth. Answer: b Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 109) Max Weber believed that ___ could correct performance deficiencies in late 19th century German organizations. a) a loosely structured system b) a bureaucracy c) a contingent organization d) an organic organization e) an adaptive organization Answer: b

Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 110) ___ is an ideal, intentionally rational, and very efficient form of organization founded on the principles of logic, order, and legitimate authority. a) a democratically structured system b) a contingent organization c) an organic organization d) an open systems organization e) bureaucracy Answer: e Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 111) Weber’s conception of bureaucratic organizations included all of the following characteristics except a) clear division of labour. b) clear hierarchy of authority. c) formal rules and procedures. d) impersonality. e) careers based on social and/or political connections. Answer: e Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 112) Assume that an organization has a clear division of labour, standard rules and procedures, a well-defined hierarchy of authority; members selected for technical competence, and explicitly defined duties and responsibilities. This is an example of ___. a) a closed system b) an open system

c) a bureaucracy d) negative entropy e) scientific management Answer: c Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 113) Which of the following best describes the idea of a clear division of labour? a) Rules and procedures are impartially and uniformly applied, with no one receiving preferential treatment. b) Jobs are well defined, and workers become highly skilled at performing them. c) Workers are selected and promoted on ability, competency, and performance, and managers are career employees of an organization. d) Written guidelines direct behaviour and decisions in jobs, and written files are kept for historical record. e) Authority and responsibility are well defined for each position, and each position reports to a higher-level. Answer: b Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 114) Which of the following best describes the concept of impersonality? a) Jobs are well defined, and workers become highly skilled at performing them. b) Workers are selected and promoted on ability, competency, and performance, and managers are career employees of an organization. c) Written guidelines direct behaviour and decisions in jobs, and written files are kept for historical record. d) Authority and responsibility are well defined for each position, and each position reports to a higher-level. e) Rules and procedures are impartially and uniformly applied, with no one receiving preferential treatment. Answer: e Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches

Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 115) At Infra-beam Solutions, the workers under one manager are expected to follow rigid and specific times for their shifts, and the workers under another manager are given the liberty of flexible timings. Which of the following characteristics of a bureaucracy has the company neglected? a) clear division of labour b) clear hierarchy of authority c) unity of direction d) careers based on merit e) impersonality Answer: e Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 116) Which of the following is an advantage of bureaucracy? a) relatively less paperwork b) flexibility in the face of shifting client needs c) greater efficiency and organizational stability d) employee enthusiasm e) speed in handling problems Answer: c Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 117) Which of the following is a disadvantage of bureaucracy? a) preferential treatment of some employees b) unclear division of labour c) excessive paperwork d) unclear hierarchy of authority e) absence of written guidelines

Answer: c Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 118) Which one of the following statements about bureaucracy is true? a) The work of Max Weber is too outdated to be used in the modern science of management. b) The work of Max Weber still has a major impact on the present trends and directions of management. c) The work of Max Weber influenced only European management thinkers. d) Bill Gates bases the operations of Microsoft on Max Weber’s theories of specialization and division of labour. e) Max Weber believed that a bureaucracy was the most rigid and apathetic form of organization. Answer: b Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 119) Morgan is skilled at managing employees and developing solution for emerging problem, and so was chosen as the assistant manager. In Morgan’ organization, jobs are well defined, and employees become experts at what they do. There is a formal chain of command, yet there is no favouritism. According to this information, choose the approach to management that has been adopted by this organization. a) Maslow’s theory of human needs b) evidence-based management c) bureaucracy d) Taylor’s managerial approach e) scalar chain system Answer: c Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic

120) The behavioural (or human resource) approach to management assumes that ___. a) people at work will seek satisfying social relationships, respond to group pressures, and search for personal fulfillment b) management problems are best solved by qualitative rather than by quantitative analysis c) people are easily understandable creatures d) people are completely rational and responsive to economic incentives e) environmental reinforcements have little to do with people’s work behaviour Answer: a Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 121) Avery, the CEO of Magnum Heights, believes that employees who feel they are part of the organization in which they work are likely to exhibit better productivity. Keeping these ideals in mind, Avery has adopted a scheme in which employees are offered shares of the company. Which managerial theory does this action demonstrate? a) Weber’s bureaucracy model b) McGregor’s Theory X c) Follett’s organizations as communities d) Fayol’s administrative principles e) Taylor’s scientific management Answer: c Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 122) Today’s concerns for managerial ethics and corporate social responsibility were foreshadowed in the writings of ___ which argued that businesses were services and that private profits should always be considered in relation to the public good. a) Frederick Taylor b) Henri Fayol c) Mary Parker Follett d) Max Weber e) Lyndall Urwick Answer: c

Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 123) The ___ approach to management assumes that people are social and self-actualizing, enjoy social relationships, respond to group pressures, and search for personal fulfillment. a) classical b) scientific management c) contingency thinking d) behavioural e) modern Answer: d Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 124) The behavioural approach to management includes all of the following approaches except a) The Hawthorne studies. b) Maslow’s theory of human needs. c) McGregor’s Theory X and Theory Y. d) the human systems contingency model. e) Argyris’s theory of personality and organization. Answer: d Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 125) Mary Parker Follett, a classical management theorist, believed that ___. a) groups were mechanisms through which diverse individuals could combine their talents for a greater good b) organizations are communities in which managers and workers should labour in harmony c) the manager’s job is to help people in organizations cooperate with one another and achieve an integration of interests

d) all of the above e) none of the above Answer: d Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 126) Which of the following is true of Follett’s view on organizations? a) Organizations are communities in which managers and workers should work in harmony. b) Follett warned against the dangers of less hierarchy. c) Follett supported the idea of managers dominating workers. d) She propagated the idea of workers working individually, rather than in a group. e) It is not a manager’s job to help people cooperate with one another. Answer: a Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 127) Which of the following management theories advocates employee ownership, profit sharing, and gain-sharing plans? a) McGregor’s Theory X and Theory Y b) Hawthorne studies c) Fayol’s Administrative Principles d) Maslow’s hierarchy of needs e) Follett’s organizations as communities Answer: e Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 128) A manager wishes to implement the conclusions of the Hawthorne studies into their organization. To do so, the manager should

a) create written guidelines for workers. b) implement division of labour in the workplace. c) assure good human relations between workers. d) reduce a job or task to its basic physical motion. e) define authority and responsibility for each worker. Answer: c Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 129) Charles C. Spaulding outlined “eight necessities” of management. Which of the following is not one of those necessities? a) Cooperation and teamwork b) Authority and responsibility c) Conflict resolution d) Adequate training e) Adequate capital Answer: d Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 130) A manager finds out that the productivity has declined. As a result a new social setting is created for the workers, where they share pleasant social relations with one another and receive special attention from the supervisor. The manager has implemented lessons from ___ to improve the productivity of the workers. a) the scientific management theory b) the theory of human needs c) Theory X and Theory Y d) the Hawthorne studies e) Fayol’s administrative principles Answer: d Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Application Difficulty: Medium

AACSB: Analytic 131) Which of the following theories proposes that groups can have strong negative, as well as positive, influences on individual productivity? a) scientific management theory b) bureaucratic organization c) Theory X and Theory Y d) Hawthorne studies e) administrative principles Answer: d Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 132) Which of the following best describes the Hawthorne effect? a) The tendency of people who are singled out for special attention to perform as anticipated because of expectations created by the situation. b) the objective of management is to secure maximum prosperity for both employer and employee.. c) The need that is activated only when the next-lower-level need is satisfied. d) Generally, people dislike work, lack ambition, act irresponsibly, and prefer to be led. e) Basically, people are willing to work, like responsibility, and are self-directed and creative. Answer: a Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 133) Peyton has been having some challenges at work. Peyton’s manager believes that Peyton can be best motivated by providing an environment where Peyton’s most pressing needs can be satisfied. Which of the following theories reflects the manager’s thinking? a) McGregor’s Theory X b) The Hawthorne Studies c) Deming’s TQM d) Taylor’s scientific management e) Abraham Maslow’s hierarchy of needs

Answer: b Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 134) ___ suggests that higher levels of productivity in the workplace are achieved when a manager develops and encourages good human relations. a) The administrative principle b) The Hawthorne Effect c) McGregor’s Theory X d) Abraham Maslow’s hierarchy of needs e) The organizations as communities principle Answer: b Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 135) The Hawthorne studies refer to ___ that was conducted at the Hawthorne Works of the Western Electric Company. a) an intensive training program for workers b) an education program for fast-track managers c) a research program on technology d) a research program on management decision making e) a research program on individual productivity Answer: e Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 136) Which of the following statements best characterizes the thinking that emerged from the Hawthorne studies? a) If jobs are properly designed and proper incentives provided, predictable results will follow.

b) Workers will perform their jobs as they are told to and will maximize their output so as to increase their pay. c) Concern for the worker will lead to greater worker satisfaction, which will then lead to increased output. d) Workers generally dislike work and need to be closely supervised to ensure adequate productivity. e) People are motivated primarily by money. Answer: c Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 137) A key conclusion from the Hawthorne relay assembly test-room studies was that ___. a) workers cannot be productive at various levels of illumination b) workers are basically rational c) workers perform well when they share pleasant social relations with one another and when supervision is participatory d) workers are more productive when their pay scale is increased to match their effort e) workers are more productive when their work areas are well lighted Answer: c Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 138) The Hawthorne studies have been criticized for which of the following reasons? a) poor research design b) weak empirical support for the conclusions drawn c) the tendency of researchers to over generalize their findings d) all of the above e) none of the above Answer: d Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

139) The Hawthorne studies shifted the attention of managers and scholars away from the technical and structural concerns emphasized by the classical management approach and towards ___. a) a more scientific approach to management b) in-depth studies of actual case histories and individual experiences c) the use of computers to deal with more complex mathematical models d) the study of social and human concerns as keys to productivity e) a Theory X approach to management science Answer: d Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 140) Which of the following best describes the Hawthorne effect? a) The tendency of workers that have been singled out to perform at least as well as expected. b) The idea that managers should give more attention to workers’ social and self-actualizing needs. c) It is the job of managers to help workers cooperate with each other and to amalgamate goals and interests. d) The principle objective of management is to secure the prosperity of both employers and employees. e) None of the above Answer: a Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 141) The deficit principle states that a) a need is activated only when the next-lower-level need is satisfied. b) people dislike work, lack ambition, act irresponsibly, and prefer to be led. c) people are willing to work, like responsibility, and are self-directed and creative. d) people at work rationally consider opportunities made available to them and do whatever is necessary to achieve the greatest personal and monetary gain. e) a satisfied need is not a motivator of behaviour.

Answer: e Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 142) The progression principle states that a) a need is activated only when the next-lower-level need is satisfied. b) people dislike work, lack ambition, act irresponsibly, and prefer to be led. c) people are willing to work, like responsibility, and are self-directed and creative. d) people at work rationally consider opportunities made available to them and do whatever is necessary to achieve the greatest personal and monetary gain. e) a satisfied need is not a motivator of behaviour. Answer: a Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 143) Charlie, a long-time employee of Relkins & Sons Ltd., earns a good compensation, owns a house, and is close to family and friends. Charlie has been recognized as a good manager, respected by subordinates, and has excellent managerial skills. Relkins & Sons has offered to pay Charlie’s house rent if Charlie can successfully negotiate a substantial contract with a new client. This offer fails to motivate Charlie. Which of the following principles explains Charlie’s behaviour? a) progression principle b) principle of motion study c) deficit principle d) Hawthorne effect e) self-fulfilling prophecy Answer: c Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 144) Which of the following management theories is based on the deficit principle and the

progression principle? a) administrative principles b) Maslow’s theory of human needs c) scientific management d) Hawthorne studies e) Theory X and Theory Y Answer: b Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 145) Which of the following refers to the lowest needs in Maslow’s hierarchy of human needs? a) esteem needs b) self-actualization needs c) social needs d) safety needs e) physiological needs Answer: e Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 146) Maslow’s work in the area of human needs is important to which area of management thought? a) classical approach b) scientific management c) systems theory d) human relations e) contingency theory Answer: d Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy

AACSB: Analytic 147) Maslow’s hierarchy of needs theory includes which of the following needs? a) food, shelter, money, and prestige b) physiological, spiritual, social, and psychological fulfillment c) physical safety, financial security, and social status d) physiological, safety, social, esteem, and self-actualization e) respect, prestige, recognition, security, and power Answer: d Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 148) ___ needs refer to the needs for basic biological maintenance such as food, water, and physical well-being. a) Physiological b) Safety c) Social d) Esteem e) Self-actualization Answer: a Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 149) ___ needs refer to the needs for security, protection, and stability in the events of daily life. a) Physiological b) Safety c) Social d) Esteem e) Self-actualization Answer: b Learning Objective 2.2: Identify key insights of the behavioural management approaches.

Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 150) ___ needs concern the needs for love, affection, and belongingness in one’s relationships with other people. a) Physiological b) Safety c) Social d) Esteem e) Self-actualization Answer: c Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 151) ___ needs involve the needs for respect, prestige, recognition, and self-esteem; and a personal sense of competency and mastery. a) Physiological b) Safety. c) Social d) Esteem e) Self-actualization Answer: d Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 152) ___ needs include the needs for being self-fulfilled and to grow and use abilities to the fullest and most creative extent. a) Physiological b) Safety c) Social d) Esteem e) Self-actualization

Answer: e Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 153) According to the deficit principle of Maslow’s theory of human needs, ___. a) people have a variety of needs, or deficits, that they must satisfy at any given time b) each person has different needs c) people are not motivated by a satisfied need d) people are always in need of something e) no matter what their condition in life, all people are looking for basic security Answer: c Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 154) According to the progression principle of Maslow’s theory of human needs, ___. a) the five human needs must all be satisfied before people can progress to self-actualization b) a need at any level only becomes activated when the next lower-level need has been satisfied c) the most basic human need is the need for self-actualization d) human needs are never truly fulfilled e) human needs progress from stronger needs to weaker needs Answer: b Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 155) At which need level of Maslow’s hierarchy do the deficit and progression principles cease to operate? a) physiological needs b) safety needs

c) social needs d) esteem needs e) self-actualization needs Answer: e Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 156) Greer manages a not-for-profit organization and is interested in applying Maslow’s need hierarchy to manage the volunteers working for this not-for-profit organization. In order to promote productivity, Greer should ___. a) create jobs that satisfy the needs of the volunteers b) create work environments that satisfy the needs of the volunteers c) ensure that the work is fulfilling for the volunteers d) all of the above e) none of the above Answer: d Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 157) Shae works for minimum wage and does not have enough money to pay for the family’s dental bills . Shae’s manager offers to award Shae with a “Best Worker” certificate if Shae can increase productivity. This offer fails to motivate Shae. Which of the following explains Leonard’s behaviour? a) progression principle b) principle of motion study c) deficit principle d) Hawthorne effect e) Weber’s bureaucracy theory Answer: a Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic

158) Which of the following is an example of a self-actualization need? a) need for self-fulfillment b) mastery c) affection d) protection e) physical well-being Answer: a Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 159) The CEO of Charter & Co. has good compensation, a house, a family, and is respected by his employees and is recognized as an efficient manager. Now, the CEO wants to start their own company. Which of the following needs is being responding to? a) social needs b) esteem needs c) physiological needs d) self-actualization needs e) safety needs Answer: d Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 160) A long-time employee of a company earns a wage that provides adequate food, shelter, and a good standard of living. According to the progression principle, which of the following needs is most likely to motivate this individual next? a) recognition b) mastery c) protection d) self-fulfillment e) affection Answer: e

Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 161) The worker of a company is motivated by the need for security, protection, and stability in the day-to-day events of life. According to the progression principle, which of the following needs has already been satisfied? a) safety needs b) cultural needs c) social needs d) esteem needs e) physiological needs Answer: e Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 162) At the ___level of human needs, the deficit and progression principles cease to operate. a) self-actualization b) social c) safety d) esteem e) physiological Answer: a Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 163) Shiloh is the manager at Peace, an international campaigning organization where volunteers work without being paid. According to Maslow’s theory, which of the following needs should Shiloh focus on to increase the productivity of the volunteers? a) physical well-being b) safety c) esteem

d) mastery e) protection Answer: c Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 164) According to McGregor’s Theory X, ___. a) people are social and self-actualizing b) a satisfied need does not motivate behaviour c) people at work rationally consider opportunities made available to them d) a need is activated only when the next-lower-level need is satisfied e) people dislike work, lack ambition, act irresponsibly, and prefer to be led Answer: e Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 165) According to McGregor’s Theory Y, ___. a) people are willing to work, like responsibility, and are self-directed and creative b) people are social and self-actualizing c) a satisfied need does not motivate behaviour d) people at work rationally consider opportunities made available to them e) a need is activated only when the next-lower-level need is satisfied Answer: a Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 166) Which of the following management theories create self-fulfilling prophecies? a) Maslow’s theory of human needs b) Argyris’s theory of adult personality

c) McGregor’s Theory X and Theory Y d) The Hawthorne Studies e) Follett’s organizations as communities Answer: c Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 167) According to Douglas McGregor, managers should pay more attention to ___. a) motion studies b) social responsibility c) behaviour modification techniques d) quantitative analysis e) social and self-actualization needs Answer: e Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 168) Theory X managers tend to see their employees as ___. a) creative, responsible, and self-motivated b) motivated by challenging work c) irresponsible, resistant to change, lacking in ambition, disliking work, and preferring to be led rather than to lead d) liking work because they prefer to lead rather than to be led e) basically rational Answer: c Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 169) According to McGregor, Theory Y managers tend to see their employees as ___.

a) passive, dependent, and reluctant b) irresponsible, resistant to change, lacking in ambition, disliking work, and preferring to be led rather than to lead c) willing to work, willing to accept responsibility, capable of self-direction, capable of self-control, imaginative, and creative d) disliking work because they prefer to be led rather than to lead e) basically rational and motivated by money Answer: c Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 170) Douglas McGregor believed that managers holding either Theory X or Theory Y assumptions could create situations in which employees acted as expected. This idea is known as ___. a) the Hawthorne Effect b) Theory Z c) the self-fulfilling prophecy d) self-actualization e) the expectancy theory Answer: c Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 171) Douglas McGregor would describe managers who tend to be directive in their relationships with others and who take a command-and-control orientation as ___ managers. a) scientific principles b) Theory X c) Theory Y d) Theory Z e) administrative principles Answer: b Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches

Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 172) A manager who allows their employees to participate in decision making, who delegates authority to them, and who offers them greater job autonomy and job variety would be classified by Douglas McGregor as a ___ manager. a) democratic b) human relations c) Theory X d) Theory Y e) Theory Z Answer: d Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 173) Which of the following is true of the self-fulfilling prophecy? a) It does not occur to managers who hold Theory X assumptions. b) It occurs when an employee acts in ways that confirm the manager’s expectations. c) It does not occur to managers who hold Theory Y assumptions. d) It is the tendency of employees singled out for special attention to perform as expected. e) It tries to match management practices with situational demands. Answer: b Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 174) Cooper is a manager who assumes that employees dislike work and act irresponsibly. As a result Cooper tries to command and control the employees in every way possible. According to the self-fulfilling prophecy, Cooper’s employees are most likely to a) take initiatives. b) become creative. c) become passive. d) be self-directed. e) perform responsibly.

Answer: c Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 175) Morgan is a manager who assumes that employees are willing to perform well, like responsibility, and are self-directed. Morgan encourages them to be more involved in their jobs and grants them reasonable freedom. Morgan’s employees are most likely to a) act passively. b) become dependent. c) perform reluctantly. d) perform irresponsibly. e) take initiatives. Answer: e Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 176) Managers holding assumptions in Theory X and Theory Y believe that ___. a) people are willing to work and like responsibility b) people are self-directed and creative c) these theories typically create responsible workers d) these theories create self-fulfilling prophecies e) these theories create opportunities to satisfy esteem and self-actualizing needs Answer: d Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 177) According to Chris Argyris, ___. a) managers who treat people positively and as responsible adults will achieve the highest productivity

b) the principle of specialization increases opportunities for self-actualization c) bureaucracy allows workers to control their work d) the concept of unity of direction leads to psychological success e) people dislike work, lack ambition, act irresponsibly, and prefer to be led Answer: a Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 178) What was the disadvantage Argyris found in Weber’s bureaucratic model? a) It would create passive, dependent workers. b) It limits opportunities for self-actualization. c) It would create conditions for psychological failure. d) It creates a lenient work environment. e) It disregards motion study. Answer: a Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 179) What was the disadvantage Argyris found in the scientific management model? a) It would create passive, dependent workers. b) It limits opportunities for self-actualization. c) It would create conditions for psychological failure. d) It creates a lenient work environment. e) It disregards motion study. Answer: b Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 180) According to Argyris’s theory of adult personality, which of the following creates dependent and passive workers?

a) Weber’s bureaucracy b) organizations as systems c) organizations as communities d) scientific management e) Maslow’s theory of human needs Answer: a Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 181) According to Argyris’s theory of adult personality, which of the following may create conditions for psychological failure? a) the deficit principle b) the progression principle c) the concept of motion study d) the concept of unity of direction e) the principle of specialization Answer: d Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 182) Among the guided values of Toronto-based Four Seasons Hotels and Resorts is “We believe that each of us needs a sense of dignity, pride, and satisfaction in what we do.” This principle reflects which theorist approach to behavioural management? a) Chris Argyris b) Douglas McGregor c) Abraham Maslow d) Mary Parker Follet e) Elton Mayo Answer: a Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Application Difficulty: Medium

AACSB: Analytic 183) According to Chris Argyris, certain management principles found in the classical approaches are inconsistent with ___. a) the administrative principles approach b) Theory X c) the mature adult personality d) rational principles e) the findings of quantitative analysis Answer: c Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 184) According to Chris Argyris, management practices that are influenced by ___ are inconsistent with the mature adult personality. a) Classical management approaches. b) Behavioural management approaches. c) Human resource management approaches. d) Quantitative management approaches. e) Modern management approaches. Answer: a Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 185) Argyris believes that implementation of classical management ideas such as the bureaucratic organization and Fayol’s administrative principles will do all of the following except a) create conditions for psychological failure among the workers. b) ensure that workers are productive and efficient. c) create dependent and passive workers. d) cause workers to have little sense of control over their work environments. e) undermine worker performance. Answer: b

Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 186) According to Argyris’s theory of personality and organization, managers who treat people as ___ will achieve ___. a) dependent workers; the highest productivity b) dependent workers; high profitability c) mature and responsible adults; mediocre productivity d) mature and responsible adults; the highest productivity e) friendly workers; high productivity and profitability Answer: d Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 187) Argyris believes that absenteeism, turnover, apathy, alienation, and similar behavioural problems in the workplace occur because of ___. a) a mismatch between workers’ mature personalities and management practices b) task specialization c) Theory Y management d) a lack of situational thinking e) poor communication between managers and employees Answer: a Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 188) ___ is the use of large databases and mathematics to solve problems and make informed decisions using systematic investigation. a) Analytics b) Evidence-based management c) Total quality management

d) Contingency thinking e) Proxemics Answer: a Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 189) A coal extracting company is worried about the depleting coal reserves in various parts of the world. It wants to make future projections for reserve sizes and depletion rates that are useful in the planning process. Which of the following quantitative approaches should the company apply? a) inventory analysis b) mathematical forecasting c) queuing theory d) linear programming e) network models Answer: b Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 190) A food chain is receiving complaints from customers that the waiting time is too long from the time of order placement to the time of delivery during certain times of the day. The outlet wants to allocate service personnel and workstations based on alternative workload demands in a way that minimizes both customer wait times and costs of service workers. Which of the following quantitative approaches is the outlet most likely to apply? a) inventory analysis b) mathematical forecasting c) queuing theory d) linear programming e) network models Answer: c Learning Objective 2.3: Explain the core foundations of modern management theory and practice.

Section Reference 2.3: Modern Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 191) A supermarket chain is receiving complaints from customers about the long waiting times for checkouts during the hours of 8:00 am to 9:00 am and 5:00 pm to 9:00 pm. Which of the following should the supermarket use to address customers’ complaints? a) quantitative analysis b) contingency thinking c) operations management d) knowledge management e) learning organization Answer: a Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 192) Which of the following statements accurately describe quantitative management approaches? a) Quantitative management approaches developed about the same time as human resource approaches to management. b) Quantitative approaches are based on the assumption that mathematical techniques can be used to improve managerial problem solving. c) Quantitative approaches are increasingly driven by computer technology. d) All of the above statements accurately describe quantitative management approaches. e) None of the above statements accurately describe quantitative management approaches. Answer: d Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 193) A real estate developer wants to control costs and complete construction of a new apartment complex on time. The developer will use the ___ quantitative approach.

a) network models b) inventory analysis c) queuing theory d) linear programming e) mathematical forecasting Answer: a Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 194) An oil exploration company is worried about future petroleum reserves in various parts of the world. The oil company will use the ___ quantitative approach. a) network models b) inventory analysis c) queuing theory d) linear programming e) mathematical forecasting Answer: e Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 195) A “big box” retailer is trying to deal with pressures on profit margins by minimizing costs of inventories while never being “out of stock” for their customers. The big box retailer will use the ___ quantitative approach. a) network models b) inventory analysis c) queuing theory d) linear programming e) mathematical forecasting Answer: b Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches

Bloom’s: Application Difficulty: Medium AACSB: Analytic 196) ___ helps control stocks by mathematically determining how much to automatically order and when. a) Queuing theory b) Mathematical forecasting c) Inventory analysis d) Linear programming e) Network models Answer: c Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 197) Which of the following is true of linear programming? a) It makes future projections useful in the planning process. b) It helps control inventories by mathematically determining how much to automatically order and when. c) It allocates service personnel and workstations based on alternative workload demands. d) It calculates how best to allocate limited resources among different alternatives. e) It breaks large tasks into smaller components and diagrams them in step-by-step sequences. Answer: d Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 198) Network models are used to a) make future projections useful in the planning process. b) control inventories by mathematically determining how much to automatically order and when. c) allocate service personnel and workstations based on alternative workload demands.

d) calculate how best to allocate limited resources among different alternatives. e) break large tasks into smaller components and diagram them in step-by-step sequences. Answer: e Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 199) ___ allows project managers to analyze, plan, and control timetables for the completion of activity sub-sets. a) Linear programming b) Bureaucracy c) Network model d) Queuing theory e) Inventory analysis Answer: c Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 200) An organization is a(n) ___ of interrelated parts working together for a purpose. a) sub-system b) system c) collection d) open system e) group Answer: b Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic

201) In an open system, which of the following is an input? a) an oven used by a baker b) a service offered by a baker c) a special type of cheese offered by a deli d) a loaf of bread made by a baker e) a sandwich sold at a deli Answer: a Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 202) In an open system, which of the following is an output? a) technology b) people c) supplies d) money e) goods Answer: e Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 203) A system that actively interacts with its environment is best described as a(n) a) subsystem. b) closed system. c) department. d) transformation system e) open system Answer: e Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge

Difficulty: Medium AACSB: Analytic 204) The Western Europe division of Nike Inc. is composed of several departments. Using the systems concept, the division would be classified as ___. a) an entropic system b) a subsystem c) either a system or a subsystem depending on the frame of reference d) either an open or a closed system depending on the frame of reference e) a closed system Answer: c Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 205) During the 1960s, many people were offended by what they viewed as the gross commercialism of their environment. As a result, many went to live in communes. The members of the communes tried to make the communes as self-sufficient as possible. The commune dwellers tried to create a ___ that did not interact with the external environment. a) subsystem b) closed system c) transformation system d) resource-independent system e) open system Answer: b Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Evaluation Difficulty: Hard AACSB: Analytic 206) ___ tries to match managerial responses with problems and opportunities specific to different people and settings. a) Total quality management b) Knowledge management c) Evidence-based management

d) Contingency thinking e) Quantitative analysis Answer: d Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 207) Which of the following works best in a stable and predictable environment? a) tight bureaucracy b) evidence-based management c) human relations approach d) knowledge management e) quality management Answer: a Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 208) A shift in consumer taste in a product results in a significant loss in sales. According to ___, this would lead to shift or change in several areas including product manufacturing and marketing. a) Maslow’s Theory b) quality management c) behavioural management approaches d) contingency theory e) labour Laws Answer: d Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic

209) As a supervisor of a large and diverse workforce, Austin uses whatever style of management seems to fit the individual employee’s needs. Austin’s management style conforms to which management theory? a) bureaucratic management b) total quality management c) the contingency approach d) Theory X and Y e) Maslow’s Theory Answer: c Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Analytic 210) According to the contingency theory, ___. a) the best management approach is based on Theory Y assumptions b) there is no one best management approach c) the best management approach employs formal mathematical models d) the best management approach takes human factors into consideration e) the best management approach focuses on the economic realities of decision making Answer: b Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 211) From a contingency perspective, a bureaucracy a) is a dynamic way of organizing things. b) is best suited in organizations that are quick in adapting to changing circumstances. c) is best suited for quick handling of problems. d) works best in a relatively unstable environment. e) works best when the operations are predictable and uncomplicated. Answer: e Learning Objective 2.3: Explain the core foundations of modern management theory and

practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 212) ___ is an organization-wide commitment to continuous improvement, product attribute, and customer needs. a) Quantitative analysis b) Total quality management c) Theory X d) Theory Y e) Scientific management Answer: b Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 213) The basic principles behind TQM that W. E. Deming taught the Japanese include a) tally defects, analyze and trace them to the source, make corrections, measure what follows. b) tally defects, analyze and trace them to the source, redesign the manufacturing process c) tally defects, analyze and trace them to the source, make corrections d) tally defects, analyze and trace them to the source, make corrections, solicit customer feedback e) none of the above Answer: a Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 214) The work of ____________ is at the heart of the quality movement in management. a) Mary Parker Follett b) Charles C. Spaulding c) Elton Mayo

d) W. Edwards Deming e) Chris Argyis Answer: d Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 215) Which of the following is a true statement about total quality management (TQM)? a) TQM focuses on applying quantitative management approaches to the production of goods and services. b) It is a process of making a commitment to applying quality standards and principles to the way operations are managed in all parts of the organization. c) TQM focuses on reducing the cost of production. d) There is one best way to manage people and operations. e) TQM is a method of determining how to best allocate scarce resources among competing uses. Answer: b Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 216) Which of the following is true of total quality management (TQM)? a) Quality principles are part of an organization’s strategic objectives. b) It is applied only to a few aspects of operations. c) TQM applies exclusively to managers. d) It applies to the inputs of a system. e) Total quality management is a one-time improvement process. Answer: a Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

217) Which of the following is a predominant principle of total quality management (TQM)? a) contingency thinking b) continuous improvement c) quantitative analysis d) progression principle e) deficit principle Answer: b Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 218) An ISO certification is a global indicator of the importance of a) knowledge management. b) evidence-based management. c) total quality management. d) quantitative analysis. e) contingency thinking. Answer: c Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 219) Operations and management services in organizations worldwide have adopted international quality standards known as a) knowledge management. b) continuous improvement. c) ISO certification. d) total quality management. e) evidence-based management. Answer: c Learning Objective 2.3: Explain the core foundations of modern management theory and

practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 220) Human resource managers make hiring and firing decisions on substantive and empirically proven hard facts. Their decisions are based on a) knowledge management. b) evidence-based management. c) quality management. d) modern management. e) management. Answer: a Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 221) Which of the following best describes evidence-based management? a) It is the process of using intellectual capital for competitive advantage. b) It involves making decisions based on hard facts about what really works. c) It is the use of large databases and mathematics to solve problems. d) It is the science of reducing a task to its basic physical motions. e) It emphasizes careful selection and training of workers and supervisory support. Answer: b Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 222) Which of the following holds true for evidence-based management? a) It does not use evidence from the local context. b) An evaluation of the available research evidence is unnecessary. c) It does not use “dangerous half-truths” as evidence. d) The perspectives of those people affected by a decision are irrelevant.

e) Decisions made are not based on “hard facts.” Answer: c Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 223) Which of the following criteria is useful to determine a good scientific method? a) Research question or problem remains unidentified. b) Data are rigorously gathered, analyzed, and interpreted. c) Hypothesis obtained are irrelevant as evidences. d) No hypothesis is stated as an explanation. e) research design is formed at the last stage of the conclusion. Answer: b Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 224) Which of the following are one of the four sources of information used in evidencebased management? a) Clearly identified problem. b) Practitioner expertise c) Research found on Wikipedia d) Mathematical forecasting e) None of the above Answer: b Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 225) Adrian is worried about the factory’s consecutive decrease in profits due to the goods

that are damaged in the storehouse. This has increased production costs and in an attempt to tackle the problem, Adrian has set up a system of measuring the needs of clients and manufacturing the required number of products. Which of the following approaches has Adrian adopted? a) mathematical forecasting b) queuing theory c) linear programming d) inventory analysis e) network models Answer: d Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 226) Drew’s team has published a quarterly report that shows a significant decline in sales regarding a particular retailer. Until now, the retailer has been a profitable customer for Drew’s company. Drew needs to find the problem and deal with the situation quickly. In this situation, which of the following management styles would be most appropriate for Drew to adopt? a) quality management b) knowledge management c) contingency thinking d) networks model e) linear programming Answer: c Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 227) Brady, a manager at an online shopping company, wants to figure out a way for cost effective logistics. While a few suggestions have been made by colleagues, Brady wants to select only that technique that has proven to be effective according to hard facts. In this situation, which of the following approaches is being adopted by Brady? a) evidence-based management b) knowledge management

c) total quality management d) contingency thinking e) linear programming Answer: a Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking Question type: Essay 228) What can be learned from classical management thinking? Answer: The classical management approaches encompass scientific management, administrative principles, and bureaucratic organization. The basic assumption of the classical management approaches is that people are rational and are primarily driven by economic concerns. The useful lessons from scientific management, as espoused by Frederick Taylor, are: make results-based compensation a performance incentive; carefully design jobs with efficient work methods; carefully select workers with the abilities to do these jobs; train workers to perform the jobs to the best of their abilities; and train supervisors to support workers so they can perform the jobs to the best of their abilities. In addition, the work of Frank and Lillian Gilbreth, also done within the scientific management tradition, provided a foundation for later advances in job simplification, work standards, and incentive wage plans. The contributions of the administrative principles branch of the classical management approach are exemplified by the work of Henri Fayol and Mary Parker Follett. Henri Fayol developed rules and principles of management that served as guides to management practice. His rules of managerial foresight, organization, command, coordination, and control are similar to the modern planning, organizing, leading, and controlling functions of management. Fayol’s scalar chain, unity of command, and unity of direction principles also served to guide management practice. Follett brought an understanding of groups and a deep commitment to human cooperation to her writings about businesses and other organizations. Her insights about groups and human cooperation include the following: groups are mechanisms through which individuals could combine their talents for a greater good; organizations should be viewed as communities in which managers and workers work in harmony; and the manager’s job is to help organization members cooperate with one another and achieve an integration of interests. Follett’s work also anticipated many modern management concepts and practices, including employee ownership, profit sharing, gainsharing, systems concepts, managerial ethics, and corporate social responsibility. Max Weber viewed bureaucracy as an ideal, intentionally rational, and very efficient form of organization founded on principles of logic, order, and legitimate authority. The characteristics of bureaucratic organizations include the following: a clear division of labour, a clear hierarchy of authority, formal rules and procedures, impersonality, and careers based on merit. Weber believed that by designing and operating organizations as bureaucracies,

productivity could be optimized. Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Analysis Difficulty: Medium AACSB: Reflective Thinking 229) What did the behavioural management approaches contribute to management thinking? Answer: The basic assumption of the behavioural management approaches is that people are social and self-actualizing. These approaches include the Hawthorne studies, Maslow’s theory of human needs, McGregor’s Theory X and Theory Y, and Argyris’s theory of adult personality. The key contribution of the Hawthorne studies is that people’s feelings, attitudes, and relationships with co-workers influence their performance. Maslow’s hierarchy of human needs suggests that managers who can help people satisfy their important needs at work will achieve productivity. Douglas McGregor, the developer of Theory X and Theory Y, argued that managers should devote more attention to people’s social and self-actualizing needs at work. McGregor asserted that managers must shift their perspective from Theory X¾a set of negative assumptions about human behaviour¾to Theory Y¾a set of positive assumptions about human behaviour. McGregor believed that managers who hold either set of assumptions can create self-fulfilling prophecies—that is, through their behaviour they can create situations where subordinates act to confirm the managers’ original expectations. Theory Y assumptions are central to contemporary ideas about employee participation, involvement, empowerment, and self-management. Argyris argued that organizations were too often structured and operated in ways that were incongruous with the needs and characteristics of the adult personality. He maintained that implementation of classical management ideas such as the bureaucratic organization and Fayol’s administrative principles would create conditions for psychological failure among the workers, create dependent and passive workers, cause workers to have little sense of control over their work environments, and undermine worker performance. To have high individual and organizational performance, Argyris advocated transforming organizations so they would be compatible with the capacities and characteristics of the adult personality. Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Analysis Difficulty: Medium AACSB: Reflective Thinking 230) Assume you are a manager working in one of today’s Fortune 500 Companies. Discuss how you would try to influence workers’ motivation using the classical approach to management. How would you try to influence workers’ motivation using the behavioural management approach to management? Answer: The students should draw on the material in their answers to the preceding two questions to address the applied issue in this question. The students should identify both the ideas they are using and how they are using them. The emphasis should be on the practical

application of these ideas. Learning Objective 2.1: Describe the principal insights of classical management thinking. Section Reference 2.1: Classical Management Approaches Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 231) Outline and discuss the conclusions of the Hawthorne studies. Answer: Elton Mayo and his colleagues conducted the Hawthorne studies and concluded that the new “social setting” created for workers in the test room made them want to do a good job. They shared pleasant social relations with one another and received lots of special attention that made them feel important. They were given a lot of information and were frequently asked for their opinions. Mayo’s team concluded that good “human relations” in the test room seemed to result in higher productivity. Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 232) Explain the two underlying principles that form the basis for Maslow’s theory of human needs. Answer: Abraham Maslow described a need as a physiological or psychological deficiency a person feels the compulsion to satisfy, suggesting that needs create tensions that can influence a person’s work attitudes and behaviours. Maslow’s theory is based on two underlying principles. The first is the deficit principle—a satisfied need is not a motivator of behaviour. People act to satisfy “deprived” needs, those for which a satisfaction “deficit” exists. The second is the progression principle—the five needs exist in a hierarchy of “prepotency.” A need at any level is activated only when the next-lower-level need is satisfied. Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 233) What are the two different assumptions that create a self-fulfilling prophecy? Answer: Theory X and Theory Y are the two assumptions that create self-fulfilling prophecies. Managers with Theory X assumptions, for example, act in a very directive, command-and-control fashion that gives people little personal say over their work. These supervisory behaviours create passive, dependent, and reluctant subordinates, who tend to do only what they are told to or required to do. This reinforces the original Theory X viewpoint.

In contrast to Theory X, managers with Theory Y assumptions tend to behave in “participative” ways that allow subordinates more job involvement, freedom, and responsibility. This creates opportunities to satisfy esteem and self-actualization needs; workers tend to perform as expected with initiative and high performance. Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 234) Is the following statement an underlying principle of Maslow’s theory? “A need at any level is activated only when the next-lower-level need is satisfied.” Explain why or why not. Answer: Yes. The above statement is the progression principle of the Maslow’s theory—the five needs exist in a hierarchy of “prepotency.” According to Maslow, people try to satisfy the five needs in sequence. They progress step by step from the lowest level in the hierarchy up to the highest. Along the way, a deprived need dominates individual attention and determines behaviour until it is satisfied. Then, the nexthigher-level need is activated. At the level of self-actualization, the deficit and progression principles cease to operate. Learning Objective 2.2: Identify key insights of the behavioural management approaches. Section Reference 2.2: Behavioural Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 235) Compare and contrast systems thinking and contingency thinking. Why are both types of thinking useful for managers in contemporary organizations? Answer: Systems thinking views organizations as open systems that interact with their environment in a continual process of transforming resource inputs into product outputs. Systems thinking also views the organization as a collection of interrelated parts or subsystems that must function together to achieve a common purpose. Each subsystem needs to perform its tasks well and to work well with the other subsystems. Contingency thinking tries to match managerial responses with the problems and opportunities unique to different situations, particularly those posed by individual and environmental differences. Contingency approaches to management assert that there is no one best way to manage. Instead, managers should understand individual and situational differences and respond to them in appropriate ways. Systems thinking and contingency thinking recognize the realities of complex modern organizations and their interplay with dynamic and competitive global environments. Failure to embrace either systems thinking or contingency thinking undermines the effective management and leadership of organizations. Learning Objective 2.3: Explain the core foundations of modern management theory and practice.

Section Reference 2.3: Modern Management Approaches Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 236) The core of an evidence-based management approach is the application of ‘the scientific method’ to the decision-making process. Define evidence-based management approach and describe the scientific method used in this approach. Answer: Evidence-based management, or EBM, is defined as the process of making management decisions on “hard facts”- that is about what really works, rather than on “dangerous half-truths”- things that sound good but lack empirical substantiation. Evidence-based management proceeds from the premise that using better, deeper logic and employing facts to the extent possible permits leaders to do their jobs better. Evidence-based management is based on the belief that facing the hard facts about what works and what doesn’t, understanding the dangerous half-truths that constitute so much conventional wisdom about management, and rejecting the total nonsense that too often passes for sound advice will help organizations perform better. The scientific method is a well-established practice that refers to techniques for investigating phenomena, acquiring new knowledge, or correcting and integrating previous knowledge. To be termed scientific, a method of inquiry must be based on gathering observable, empirical and measurable evidence subject to specific principles of reasoning. It includes the following guidelines: A research question or problem is identified. One or more hypotheses, or possible explanations, are stated. A research design is created to systematically test the hypotheses. Data gathered through the research are analyzed and interpreted. The hypotheses are accepted or rejected based upon the evidence. Learning Objective 2.3: Explain the core foundations of modern management theory and practice. Section Reference 2.3: Modern Management Approaches Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic

Schermerhorn, Management, Fifth Canadian Edition

CHAPTER 3 ETHICS AND SOCIAL RESPONSIBILITY Question type: True/False 1) Ethics reflects the code of moral principles that sets standards as to what is “good” versus “bad” or “right” versus “wrong” in people’s conduct, and thereby guides their moral choices and behaviours. Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 2) If an act or action is legal it follows then that the act or action will also be ethical. Answer: False Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 3) Taking several pens from the office and giving them to family members is an example of living up to the “letter of the law.” Answer: False Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 4) Values are broad beliefs about what is appropriate behaviour. Test Bank

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Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 5) Terminal values are preferences regarding the means to desired ends. Answer: False Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 6) Among the terminal values held important by managers are self-respect, family security, freedom and happiness. Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 7) Instrumental values are preferences regarding desired ends. Answer: False Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 8) Self-respect, freedom, happiness, and family security are examples of terminal values; and imagination, ambition, self-discipline, and honesty are examples of instrumental values. Answer: True Test Bank

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Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 9) Most ethical problems in the workplace arise when people are asked to do or are about to do something that challenges their terminal and instrumental values. Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 10) To the extent that values vary among people, we can expect different interpretations of what behaviour is ethical or unethical in a given situation. Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 11) Variation in values among people has little, if any, impact on differences in people’s interpretations of behaviour as being ethical or unethical in a given situation. Answer: False Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 12) The utilitarian view considers ethical behaviour to be that which delivers the greatest good to the greatest number of people. Answer: True Test Bank

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Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 13) The utilitarian view of ethical behaviour is based on the work of philosopher John S. Mill. Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 14) The utilitarian view of ethical behaviour focuses on treating people impartially and fairly in accordance with guiding rules and standards. Answer: False Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 15) Results-oriented performance criteria are consistent with the utilitarian view of ethics. Answer: False Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 16) The individualism view of ethical behaviour focuses on the pursuit of long-term selfinterests. Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 17) The individualism view assumes that all individuals are self-regulating which means that they will run roughshod over other individuals. Answer: False Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 18) An individual whose ethical behaviour protects and respects the fundamental rights of all human beings is practising the moral-rights view of ethics. Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 19) In contemporary organizations, the moral-rights view concerns the protection of employees with respect to their rights to privacy, due process, free speech, health and safety, and freedom of conscience. Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 20) The justice view of ethical behaviour focuses on treating people impartially and fairly according to guiding rules and standards. Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Test Bank

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Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 21) Procedural justice involves the degree to which policies and rules are fairly applied to all individuals. Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 22) The concept of procedural justice is concerned that policies and rules are applied fairly. Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 23) Distributive justice is the degree to which others are treated with dignity and respect. Answer: False Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 24) Interactional justice involves the degree to which individuals treat each other with respect and dignity. Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 25) Interactional justice is the degree to which policies and rules are administered fairly in an organization. Answer: False Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 26) Commutative justice involves the degree to which outcomes are allocated fairly among people and without respect to individual characteristics based on ethnicity, race, gender, age, or other particularistic criteria. Answer: False Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 27) A determinant of ethical behaviour is cultural context. Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 28) “When in Rome, do as the Romans do” is a classic example of the ethical perspective of cultural relativism. Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 29) Cultural relativism suggests ethical standards apply universally across all cultures. Answer: False Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 30) Moral absolutism is the believe that if a behaviour or action is not ethical in one’s home environment, it may be acceptable somewhere else. Answer: False Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 31) Ethical imperialism is an attempt to impose one’s ethical standards on other cultures. Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 32) Cultural relativism is a form of ethical imperialism. Answer: False Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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33) A person who adopts the perspective of cultural relativism assumes that ethical standards should apply absolutely across cultures and national boundaries. Answer: False Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 34) A manager who operates in a foreign country with the premise that ethical behaviour is always determined by its cultural context is adopting a perspective of universalism. Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Application Difficulty: Medium AACSB: Analytic 35) Core values or “hyper-norms” that transcend cultural boundaries focus on human dignity, basic rights, and good citizenship. Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 36) Keeping a safe workplace; creating a corporate culture that values employees, customers, and suppliers; and producing safe products and services are universal core values that respect human dignity. Answer: True Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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37) An ethical dilemma is a situation that offers potential benefit or gain and that may also be considered unethical. Answer: True Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 38) When an action must be taken and there is not a clear “right” or “wrong” approach, a person is faced with an ethical dilemma. Answer: True Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 39) Ethical dilemmas often involve conflicts of interest, issues of customer confidence, or the use of organizational resources, however, they seldom concern discrimination or sexual harassment. Answer: False Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 40) Questions such as “Is it legal?” “Is it right?” “Whom does it affect?” “Who benefits?” and “Who gets hurt?” are examples of spotlight questions. Answer: False Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Test Bank

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41) Asking spotlight questions is a powerful way to test whether a decision is consistent with an individual’s personal ethical standards. Answer: True Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 42) Personal factors such as religious values and family influences have little effect on managerial ethics, whereas personal standards and needs have a great deal of impact on managerial ethics. Answer: False Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 43) An ethical framework is a personal rule or strategy for making ethical decisions. Answer: True Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 44) Factors influencing ethical behaviour by management include the person, the organization, the situation, and the external environment. Answer: True Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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45) Environmental factors that affect the ethical standards of an organization and its employees include social norms and values, competition within an industry, and governmental laws and regulations. Answer: True Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 46) The virtues of honesty, fairness, integrity, and self-respect provide ethical frameworks that help people make correct decisions even when circumstances are ambiguous and situational pressures are difficult. Answer: True Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 47) The behaviour of supervisors and the expectations of peers are organizational factors that influence ethical behaviour. Answer: True Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 48) The three levels of moral development were identified by L. Kohlberg. Answer: True Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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49) In Kohlberg’s preconventional level of moral development, moral thinking is largely limited to issues of punishment, obedience, and personal interest. Answer: True Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 50) In Kohlberg’s conventional level of moral development, the individual is strongly principlecentred. Answer: False Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 51) In Kohlberg’s postconventional level of moral development, the individual is willing to break with norms, conventions and laws. Answer: True Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 52) The conditions that raise the ethics intensity of a situation include the magnitude, probability, and immediacy of any potential harm, the proximity and concentration of the effects, and social consensus. Answer: True Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Comprehension Difficulty: Easy Test Bank

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AACSB: Analytic 53) The ethics culture in an organization sets high standards and may even push people to behave more ethically than they otherwise would. Answer: True Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 54) Government laws and regulations can describe and encourage ethical behaviour, however they can’t guarantee ethical conduct. Answer: True Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 55) The Sarbanes-Oxley Act created the mechanism for governmental supervision of the liquidation of Enron and Arthur Andersen. Answer: False Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Comprehension Difficulty: Hard AACSB: Analytic 56) The climate of competition in an industry has little impact on what may be considered as ethical or unethical. Answer: False Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 57) A common statement by a rationalizer is “It’s in everyone’s best interests.” This response involves the mistaken belief that because someone can be found to benefit from the behaviour, the behaviour is also in the individual’s or the organization’s best interests. Answer: True Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 58) Moral muteness occurs when individuals ignore behaviour that is ethically questionable. Answer: True Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 59) Making sure that everyone knows wrongdoing will be punished whenever it is discovered is an appropriate method for dealing with the rationalization that “no one will ever know about the unethical behaviour.” Answer: True Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Application Difficulty: Medium AACSB: Analytic 60) One of the six pillars of character is citizenship. Answer: True Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 61) An amoral manager chooses to behave unethically. Answer: False Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 62) An immoral manager is one who fails to consider or disregards the ethical implications of his or her behaviour. Answer: False Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 63) A moral manager is one who considers the ethical implications of his or her behaviour and actions. Answer: True Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 64) An amoral manager is one who fails to consider or disregards the ethical implications of his or her behaviour. Answer: True Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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65) Ethics mindfulness is a state of awareness that causes a person to behave in an ethical manner from one situation to another. Answer: True Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 66) Moral leaders are more influential than either amoral or immoral leaders. Answer: False Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 67) Moral managers are leaders who possess ethics mindfulness. Answer: True Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 68) Amoral and immoral leaders can be just as influential as moral leaders. Answer: True Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 69) According to Archie Carroll, managers who are engaged in unethical practices remain mostly Test Bank

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uninformed or undisciplined in considering the ethical aspects of their behaviour. Answer: True Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 70) The value of an ethics code relies on the organization’s underlying human resource foundation. Answer: True Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 71) Exposure to a multi-step process for dealing with ethical dilemmas is an appropriate component of an ethics training program. Answer: True Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 72) Codes of ethics may identify expected behaviours in terms of general organizational citizenship, the avoidance of illegal or improper employee behaviour, and customer relations. Answer: True Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 73) Formal codes of ethics are usually concerned with expressing how employees may be Test Bank

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expected to behave in terms of customer-supplier relationships, political contributions, confidentiality of corporate information, and response to bribes and kickbacks. Answer: True Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 74) A whistleblower is a person who exposes the misdeeds of others in an attempt to divert attention from his or her own unethical behaviour. Answer: False Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 75) A whistleblower is someone who exposes the misdeeds of others in an organization in an attempt to preserve ethical standards and protect against wasteful, harmful, or illegal acts. Answer: True Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 76) Strong work group identities that encourage loyalty and self-censorship are barriers to whistle blowing. Answer: True Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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77) Organizational barriers to whistle blowing include a strict chain of command, strong work group identities, and ambiguous priorities. Answer: True Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 78) Impaired career progress and various retaliatory actions, up to and including termination, are among the potential risks faced by people who act as whistleblowers. Answer: True Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 79) Organizational stakeholders are the persons, groups, and other organizations directly affected by the behaviour of an organization and holding a stake in its performance. Answer: True Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 80) Any organization has a social responsibility to serve the interests of its many stakeholders. Answer: True Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 81) Competitors, labour unions, public-interest groups, and legal institutions are all shareholders Test Bank

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of an organization. Answer: False Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 82) Demand legitimacy indicates the extent to which a stakeholder’s concerns need immediate attention. Answer: False Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 83) Issue urgency is the extent to which stakeholder’s demand is perceived as requiring immediate attention. Answer: False Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 84) Corporate social responsibility means taking personal responsibility to always respect and protect the interests of society at large. Answer: False Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 85) Corporate social responsibility means the obligation of an organization to act in such a way Test Bank

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that serves the interests of stakeholders and society at large. Answer: True Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 86) Advocates of corporate social responsibility assert that businesses have the resources and obligation to act in socially responsible ways, and that it decreases the need for restrictive government regulation, improves the public image of business, and may improve or determine long-run profits. Answer: True Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Application Difficulty: Medium AACSB: Analytic 87) According to its opponents, corporate social responsibility will raise business costs, reduce business profits, dilute the purpose of business, and give business too much social power. Answer: True Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 88) The triple bottom line evaluates organizational performance on economic, social, and environmental criteria. Answer: True Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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89) The three P’s of organizational performance are patience, politeness, and planning. Answer: False Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 90) The classical view of social responsibility maintains that the organization must be concerned with the broader social welfare and not just with corporate profits. Answer: False Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 91) According to the classical view of CSR, the principal obligation of management should be to owners and shareholders. Answer: True Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 92) The socio-economic view of social responsibility holds that management’s only responsibility in managing a business is to maximize profits. Answer: False Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

Test Bank

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93) The shared value view of social responsibility maintains that organizational profits and growth and societal social progress are interconnected. Answer: True Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 94) A social responsibility audit is a systematic assessment and reporting of an organization’s accomplishments in various areas of corporate social responsibility. Answer: True Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 95) When corporate social performance focuses on acting to create positive impact, the company’s actions are driven by compliance. Answer: False Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 96) The obstructionist strategy involves a corporate social responsibility commitment that reflects mainly economic concerns and meets the organization’s economic responsibility. Answer: True Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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97) The defensive strategy involves a corporate social responsibility commitment that meets economic and legal responsibilities and seeks to protect the organization by doing the minimum legally required to satisfy expectations. Answer: True Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 98) An organization that is following a proactive social responsibility strategy would take both preventive actions to avoid adverse social impacts from company activities and a leadership role in identifying and responding to emerging social issues, thereby satisfying economic, legal, ethical, and discretionary responsibilities. Answer: True Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Application Difficulty: Medium AACSB: Analytic 99) Housing and job training for the homeless, bringing technology to poor families, improving literacy among disadvantaged youth, and making small loans to start minority-owned businesses are all examples of social entrepreneurship. Answer: True Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 100) Corporate governance involves making sure day-to-day performance is achieved ethically and in socially responsible ways. Answer: False Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Comprehension Test Bank

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Difficulty: Easy AACSB: Analytic 101) A firm is meeting its legal responsibility when it voluntarily conforms to legal as well as broader values and moral expectations of society. Answer: False Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 102) An organization is meeting its ethical responsibility when it is in compliance with the law and requirements of various external regulations. Answer: False Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 103) Corporate governance is defined as the way that governments regulate corporations. Answer: False Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 104) Corporate governance typically involves hiring, firing, and compensating the chief executive officer (CEO); assessing strategy; and verifying financial records. Answer: True Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 105) Corporate governance is the sole responsibility of top management and the boards of directors in large corporations. Answer: False Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 106) Corporate governance is defined as the oversight of the actions and decisions of top management of an organization by the board of directors. Answer: True Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 107) The effectiveness of corporate governance has been criticized because ethical failures and scandals have raised concerns about executives’ commitment to corporate social responsibility. Answer: True Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 108) When corporate boards of directors are weak or unethical, the government sometimes steps in to try to correct things for the future. Answer: True Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Medium Test Bank

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AACSB: Analytic 109) The reality facing managers in contemporary organizations is that they are responsible for attaining high performance along with high ethical standards and social responsibility. Answer: True Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Question type: Multiple Choice 110) Ethics is defined as the ___ code of principles that sets standards of good or bad, or right or wrong, in one’s conduct. a) social b) legal c) moral d) cultural e) religious Answer: c Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 111) Which statement accurately describes the relationship between law and ethics? a) Even though an action is legal, it may not be ethical. b) An action that is not illegal is without question an ethical action. c) Living up to the “letter of the law” is a sufficient guarantee that a person’s actions are truly ethical. d) a and c e) b and c Answer: a Test Bank

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Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 112) Most ethical problems in the workplace arise when people are asked to do or are about to do something that a) is illegal. b) goes against work group standards. c) violates their personal beliefs. d) violates the organization’s policies. e) violates social norms. Answer: c Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 113) Which of the following is a terminal value? a) honesty b) ambition c) imagination d) self-discipline e) happiness Answer: e Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 114) After completing an exercise in values lasting freedom, self-respect, and security are what Hollis values. The values are examples of a) personality. Test Bank

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b) instrumental values. c) diversity. d) moral values. e) terminal values. Answer: e Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 115) Which of the following is an instrumental value? a) honesty b) self-respect c) freedom d) family security e) happiness Answer: a Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 116) Self-respect, freedom, happiness, and family security are examples of ___ that managers consider to be important. a) moral values b) socialistic values c) terminal values d) instrumental values e) bureaucratic values Answer: c Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 117) ___ are preferences regarding the means for accomplishing desired ends. a) Ethical values b) Utilitarian values c) Terminal values d) Instrumental values e) Social values Answer: d Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 118) Robin has decided that within five years Robin will hold at least a middle management position in the organization. This is an example of which of the following? a) Ethical values b) Utilitarian values c) Terminal values d) Instrumental values e) Social values Answer: c Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Application Difficulty: Medium AACSB: Analytic 119) Imagination, ambition, self-discipline, and honesty are examples of ___ that managers consider to be important. a) instrumental values b) moral values c) socialistic values d) terminal values e) bureaucratic values Test Bank

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Answer: a Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 120) Which of the following is NOT one of the four views of ethical behaviour? a) Utilitarian b) Justice c) Moral rights d) Shared values e) Individualism Answer: d Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 121) The ___ view of ethical understanding and reasoning abilities considers ethical behaviour to be that which delivers the greatest good to the greatest number of people. a) individualism b) religious c) justice d) utilitarian e) moral rights Answer: d Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 122) Perry Eagles, the CEO of Gama Tech., shuts down offshore operations of the company during a period of economic recession. Even though this action was instrumental in keeping the Test Bank

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company profitable it resulted in over 20% of the workforce losing their jobs. Which ethical viewpoint would Perry most likely use to justify this decision? a) individualism b) religious c) justice d) utilitarian e) moral rights Answer: d Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Application Difficulty: Medium AACSB: Analytic 123) The utilitarian view of ethical behaviour is that which a) provides the greatest good for the greatest number of people. b) respects and protects the individual’s fundamental rights. c) ensures that people are treated impartially and fairly. d) advances the pursuit of long-term self-interests. e) ensures the resolution of personal moral dilemmas. Answer: a Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 124) Using results-oriented performance criteria to judge what is best for most people in a business organization is an application of which view of ethical behaviour? a) the utilitarian view b) the individualism view c) the collectivism view d) the moral-rights view e) the justice view Answer: a Test Bank

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Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 125) The individualism view of ethical behaviour is based on the belief that one’s primary commitment is to the long-term advancement of self-interests. Lying and cheating for immediate gain are not tolerated by this ethical viewpoint because lying and cheating a) are inherently harmful to a person’s psyche. b) serve no one’s interest in the long run. c) are against the law. d) are contrary to all religious beliefs. e) cause an unfair distribution of resources. Answer: b Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 126) In business practice, the ___ view of ethical understanding and reasoning abilities may result in greed and a tendency to “push the law to its outer limits.” a) individualism b) religious c) justice d) utilitarian e) moral rights Answer: a Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 127) According to the individualism view of ethical behaviour, society will be best off if Test Bank

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a) individuals make decisions based on the greater common good. b) everyone works toward the betterment of society. c) everybody lives by the letter of the law. d) everyone acts in a way that maximizes their own happiness. e) everyone follows a universal moral code of behaviour. Answer: d Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 128) The key concept of the individualism view of ethical behaviour is a) assessing the implications of a decision in terms of its long-term personal consequences. b) promoting honesty and integrity. c) ensuring that people’s rights are protected and respected. d) evaluating a decision on the basis of its impartiality and fairness. e) ensuring that the greatest number of people benefit to the greatest extent possible. Answer: a Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 129) Which of the following is the assumption made in the individualism view of ethical behaviour? a) It does not promote honesty or integrity in people. b) People are self-regulating in the quest for long-term advantage for the self. c) The outcome of an ethical decision does not affect the majority of the society. d) Every person works in coordination with another to fulfill each other’s goals. e) No individual can take advantage of the freedom allowed in this approach. Answer: b Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Comprehension Test Bank

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Difficulty: Medium AACSB: Analytic 130) The individualism view is supposed to promote ___ in business practice it may result in ___. a) personal enrichment; organizational enrichment b) honesty and integrity; pushing the law to its outer limits c) narcissism; procedural justice d) running roughshod over other people to achieve personal objectives; honesty and integrity e) pushing the law to its outer limits; interactional justice Answer: b Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 131) In the ___ view, ethical behaviour respects and protects fundamental rights. a) individualism b) justice c) moral rights d) utilitarian e) humanitarian rights Answer: c Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 132) The main emphasis of the moral-rights view of ethical behaviour is a) assessing the implications of a decision in terms of its long-term personal consequences. b) promoting honesty and integrity. c) ensuring that people’s rights are protected and respected. d) evaluating a decision on the basis of its impartiality and fairness. e) ensuring that the greatest number of people benefit to the greatest extent possible. Test Bank

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Answer: c Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 133) In contemporary organizations, the ___ concerns the protection of employees with respect to their rights to privacy, due process, free speech, free consent, health and safety, and freedom of conscience. a) utilitarian view b) individualism view c) collectivism view d) moral-rights view e) justice view Answer: d Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 134) Which of the following is a drawback of the moral-rights view of ethical behaviour? a) It relies on the assessment of future outcomes that are often difficult to predict and are tough to measure accurately. b) It presumes that individuals are self-regulating; however, not everyone has the same capacity or desire to control their behaviours. c) It is possible for a few individuals to take advantage of the freedom allowed by this perspective and disrupt the degree of trust that exists within a business community. d) It does not ensure that the outcomes associated with protecting individual rights are beneficial to the majority of society. e) It places an emphasis on fairness and equity, both of which cannot be ensured simultaneously. Answer: d Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 135) The main emphasis of the justice view of ethical behaviour is a) assessing the implications of a decision in terms of its long-term personal consequences. b) promoting honesty and integrity. c) ensuring that people’s rights are protected and respected. d) evaluating a decision on the basis of its impartiality and fairness. e) ensuring that the greatest number of people benefit to the greatest extent possible. Answer: d Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 136) Suppose that a professor’s main concern in grading term papers is to evaluate all papers and assign grades fairly and objectively in light of the requirements and grading scale contained in the course syllabus. From an ethics perspective, this is an example of the professor adopting which of the following views? a) the utilitarian view b) the individualism view c) the collectivism view d) the moral-rights view e) the justice view Answer: e Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Application Difficulty: Medium AACSB: Analytic 137) In doing performance appraisals for the employees, a manager faithfully adheres to the company’s established evaluation procedures for each employee. This manager is acting on the basis of the ______ a) distributive justice. Test Bank

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b) utilitarian view. c) justice view. d) individualism view. e) procedural view. Answer: c Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Application Difficulty: Medium AACSB: Analytic 138) ___ justice involves the degree to which policies and rules are fairly applied to all individuals. a) Procedural b) Economic c) Distributive d) Commutative e) Interactional Answer: a Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 139) The concern that “a sexual harassment charge levied against a senior executive receive the same full hearing as one made against a first-level manager” is an example of the concept of ___ justice. a) procedural b) interactional c) distributive d) communicative e) moral rights Answer: a Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Test Bank

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Bloom’s: Application Difficulty: Medium AACSB: Analytic 140) The degree to which policies and rules are fairly administered in an organization is known as a) distributive justice. b) moral justice. c) ethical management. d) procedural justice. e) equitable policy. Answer: a Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 141) Which of the following addresses the fair allocation of outcomes, without any communal or gender biases? a) procedural justice b) fundamental justice c) distributive justice d) commutative justice e) interactional justice Answer: c Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 142) The degree to which outcomes are allocated without regard to ethnicity, race, gender, age, or other individual differences criteria is the concept of a) distributive justice. b) moral justice. Test Bank

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c) ethical management. d) procedural justice. e) equitable policy. Answer: a Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 143) If a woman and a man have equivalent qualifications and experience and are given the same consideration for promotion, ___ is being applied. a) distributive justice b) moral justice c) ethical management d) procedural justice e) equitable policy Answer: a Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Application Difficulty: Medium AACSB: Analytic 144) Taylor, a bank officer, takes the time to fully explain to an applicant why they are being turned down for a loan. Taylor answers all of the applicant’s questions without being demeaning in any way. Taylor is reflecting the ethical concern of ___. a) moral rights b) distributive justice c) interactional justice d) utilitarianism e) individualism Answer: c Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Application Test Bank

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Difficulty: Medium AACSB: Analytic 145) Interactional justice involves the a) degree to which policies and rules are fairly applied to all individuals. b) degree to which outcomes are allocated fairly among people and without respect to individual characteristics. c) degree to which people treat one another with dignity and respect. d) fairness of exchanges or transactions. e) honesty and integrity of business dealings. Answer: c Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 146) Suave ZN, a franchisee outlet for Eco Motors, an electric car company, sells Chris Johnson an older model car. Suave ZN sells the older model without informing Chris of the newer, better models released by Eco Motors in the same price band. According to which justice dimension would Suave ZN conduct be considered unethical? a) procedural b) economic c) distributive d) commutative e) interactional Answer: d Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Application Difficulty: Medium AACSB: Analytic 147) An expatriate of Country A argues that the practice of giving corporate gifts is acceptable in another country as long as it is consistent with local laws and customs. In this scenario, the Country A expatriate is guided by ___. Test Bank

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a) ethnocentrism b) moral relativism c) ethical imperialism d) cultural relativism e) moral absolutism Answer: d Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 148) A manager who operates in a foreign country with the premise that ethical behaviour is always determined by its cultural context is adopting a perspective of a) cultural activism. b) cultural relativism. c) ethical imperialism. d) cultural socialism. e) ethical realism. Answer: b Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 149) ___ is an attempt to impose one’s ethical standards on other cultures. a) Polycentrism b) Moral relativism c) Ethical imperialism d) Cultural relativism e) Moral absolutism Answer: c Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 150) An executive who assumes that ethical standards should apply absolutely across cultures and national boundaries is operating under which cultural perspective? a) cultural activism b) cultural relativism c) ethical universalism d) cultural socialism e) ethical realism Answer: c Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 151) Critics charge that ___ is a form of ___, or the attempt to externally impose one’s ethical standards on others. a) cultural relativism; cultural universalism b) universalism; ethical imperialism c) cultural relativism; ethical imperialism d) ethical imperialism; cultural relativism e) ethical imperialism; Romanesque law Answer: b Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 152) According to Thomas Donaldson, the core values, or “hyper-norms” that should transcend cultural boundaries focus on a) human dignity, basic rights, and good citizenship. b) human dignity, acceptance, social responsibility. c) human dignity, cultural tolerance, social responsibility. Test Bank

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d) human dignity, basic rights, stakeholder responsibility. e) none of the above Answer: a Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 153) According to Thomas Donaldson, the core values or “hyper-norms” that should transcend cultural boundaries focus on human dignity, basic rights, and ___. a) cultural tolerance b) social responsibility c) acceptance d) good citizenship e) stewardship Answer: d Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 154) Suppose that a manager denies a candidate a promotion because of the candidate’s race, religion, gender, age, or other criteria that are not relevant to the job. This manager is creating an ethical dilemma involving a) discrimination. b) sexual harassment. c) conflicts of interest. d) customer confidence. e) organizational resources. Answer: a Learning Objective 3.2: Discuss ethical dilemmas and common ethics issues in the workplace. Section Reference 3.1: Ethics in the workplace Bloom’s: Application Difficulty: Medium Test Bank

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AACSB: Analytic 155) Jeff interviewed three candidates for the plant supervisor position. Sanjiv, who is 5 years away from retirement, was the best candidate. Jeff is caught in an ethical dilemma involving a) conflict of interest. b) sexual harassment. c) discrimination. d) customer confidence. e) code of conduct. Answer: c Learning Objective 3.2: Discuss ethical dilemmas and common ethics issues in the workplace. Section Reference 3.1: Ethics in the workplace Bloom’s: Application Difficulty: Medium AACSB: Analytic 156) If a manager makes a co-worker feel uncomfortable because of inappropriate comments or actions regarding sexuality, the manager is creating an ethical dilemma involving a) discrimination. b) sexual harassment. c) conflicts of interest. d) customer confidence. e) organizational resources. Answer: b Learning Objective 3.2: Discuss ethical dilemmas and common ethics issues in the workplace. Section Reference 3.1: Ethics in the workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 157) Ethical dilemmas in the form of ___ may occur where a manager takes a bribe or kickback or extraordinary gift in return for making a decision favourable to the gift giver. a) discrimination b) sexual harassment c) conflicts of interest d) customer confidence Test Bank

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e) organizational resources Answer: c Learning Objective 3.2: Discuss ethical dilemmas and common ethics issues in the workplace. Section Reference 3.1: Ethics in the workplace Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 158) Ethical dilemmas in the form of ___ may occur where a manager has privileged information regarding the activities of a customer and shares that information with another party. a) discrimination b) sexual harassment c) conflicts of interest d) customer confidence e) organizational resources Answer: d Learning Objective 3.2: Discuss ethical dilemmas and common ethics issues in the workplace. Section Reference 3.1: Ethics in the workplace Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 159) Managers who use official stationery or company email accounts to communicate personal opinions or requests to community organizations are engaging in acts that may be considered to constitute an ethical dilemma regarding a) discrimination. b) sexual harassment. c) conflicts of interest. d) customer confidence. e) organizational resources. Answer: e Learning Objective 3.2: Discuss ethical dilemmas and common ethics issues in the workplace. Section Reference 3.1: Ethics in the workplace Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Test Bank

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160) Charlie is a volunteer fundraiser for a charitable organization and has full access to the company’s email and telephone database. Charlie is considering using this information to potential donors for contributions to the charitable organization. Charlie is caught in an ethical dilemma involving a) customer confidence. b) ethics. c) social responsibility. d) organizational resources. e) conflict of interest. Answer: d Learning Objective 3.2: Discuss ethical dilemmas and common ethics issues in the workplace. Section Reference 3.1: Ethics in the workplace Bloom’s: Application Difficulty: Medium AACSB: Analytic 161) Which of the following is not a step that managers should follow for making ethical decisions? a) Recognize the ethical dilemma. b) Identify your options. c) Model what others are doing. d) Double-check your decisions by asking follow-up questions. e) Take action. Answer: d Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 162) An important way for double-checking the ethics of a decision is to ask which one of the following questions? a) How would I feel about this decision if it made a lot of money for the company? b) How would I feel if I received a large bonus a result of making this decision? c) How would I feel if this decision harmed someone? Test Bank

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d) How would I feel if a competitor lost business as a result of this decision? e) How would I feel if my family found out about my decision? Answer: e Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 163) In the checklist for dealing with ethical dilemmas, the textbook points to one step that is key to testing whether or not a decision may be ethical. That step is: a) Recognize the ethical dilemma. b) Get the facts. c) Identify your options. d) Test each option. e) Double-check with the spotlight questions. Answer: e Learning Objective 3.2: Discuss ethical dilemmas and common ethics issues in the workplace. Section Reference 3.1: Ethics in the workplace Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 164) Which of the following is a spotlight question when dealing with ethical dilemmas? a) What sort of trouble will I get into because of my decision? b) Are there any legal consequences to my decision? c) Who will be affected by my decision? d) How will I feel if my family finds out about my decision? e) How will my career be affected by my decision? Answer: d Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Test Bank

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165) When faced with an ethical dilemma, spotlight questions are used to test possible decisions for a) the risk of public disclosure. b) potential harm to self. c) the risk to job security. d) potential harm to others. e) possible legal implications. Answer: a Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 166) Managers with strong ___, ones that provide personal rules or strategies for value-based decision making, will act more consistently and confidently than those without. a) religious affiliations b) ethical frameworks c) ethnocentric backgrounds d) social-centred behaviour e) self-centred behaviour Answer: b Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 167) Which of the following is an example of an ethical dilemma? a) Martha, who had filled in her personal details that she is a Canadian citizen, is hired as a receptionist despite some of her co-workers apprehension about her racial identity. b) Wanda, an employee at a real estate firm, files a sexual harassment case against her manager despite his repeated apologies. c) Steward, an engineer, gives his office laptop to his daughter as a birthday gift. d) Vince, an tax auditor working for the Canada Revenue Agency, is tempted to take money from a taxpayer he is auditing in order to save a sick child even though he knows that he should Test Bank

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not accept bribes. e) Clara fires half of her employees so as to decrease the cost of inputs of her company. Answer: d Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Application Difficulty: Medium AACSB: Analytic 168) Which of the following, in correct order, are the levels of moral development identified by Lawrence Kohlberg? a) Preconventional, conventional, postconventional, principle-centered. b) Preconventional, postconventional, conventional, principle-centered. c) Principle-centered, preconventional, conventional, postconventional. d) Preconventional, conventional, postconventional. e) conventional, preconventional, postconventional. Answer: d Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 169) In Kohlberg’s preconventional level of moral development, decisions a) are made according to internal principles. b) are likely to be based on following social norms. c) made follow rules to help society run smoothly. d) are likely to be directed toward achieving personal gain. e) are consistent with universal principles. Answer: d Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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170) At the conventional level of moral development, behaviour is ___. a) social-centred b) peer-pressure driven c) self-centred d) principle-centred e) punishment-driven Answer: a Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 171) At the postconventional level of moral development, an individual is ___. a) social-centred b) peer-pressure oriented c) self-centred d) principle-centred e) punishment-driven Answer: d Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 172) Roger, Isaac, Irene, and Betty were the last students to leave their class after a lecture. They noticed that the instructor had left behind a copy of the midterm exam on the desk. “I’ll just take a quick look at it and ease some of my fears about the midterm. I won’t copy any of the questions or answer though.” thought Roger. However, Isaac wanted to look at the midterm to copy the answers. Isaac promised that if no one said anything he would be willing to share the copies. Irene and Betty exited without looking at the midterm because they believed it was wrong, even though they hadn’t studied and there was a high probability that would fail the midterm. Betty then went to the instructor’s office to let the instructor know the exam had been left in the classroom. Who was operating in Stage 2 of Kohlberg’s preconventional level of moral development? Test Bank

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a) Roger b) Isaac c) Both Roger and Isaac d) Irene e) Betty Answer: c Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Application Difficulty: Medium AACSB: Analytic 173) Roger, Isaac, Irene, and Betty were the last students to leave their class after a lecture. They noticed that the instructor had left behind a copy of the midterm exam on the desk. “I’ll just take a quick look at it and ease some of my fears about the midterm. I won’t copy any of the questions or answer though.” thought Roger. However, Isaac wanted to look at the midterm to copy the answers. Isaac promised that if no one said anything he would be willing to share the copies. Irene and Betty exited without looking at the midterm because they believed it was wrong, even though they hadn’t studied and there was a high probability that would fail the midterm. Betty then went to the instructor’s office to let the instructor know the exam had been left in the classroom. Who was operating in Stage 4 of Kohlberg’s conventional level of moral development? a) Roger b) Isaac c) Irene d) Betty e) Both Irene and Betty Answer: d Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Application Difficulty: Medium AACSB: Analytic 174) Roger, Isaac, Irene, and Betty were the last students to leave their class after a lecture. They noticed that the instructor had left behind a copy of the midterm exam on the desk. “I’ll just take a quick look at it and ease some of my fears about the midterm. I won’t copy any of the questions or answer though.” thought Roger. However, Isaac wanted to look at the midterm to copy the answers. Isaac promised that if no one said anything he would be willing to share the Test Bank

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copies. Irene and Betty exited without looking at the midterm because they believed it was wrong, even though they hadn’t studied and there was a high probability that would fail the midterm. Betty then went to the instructor’s office to let the instructor know the exam had been left in the classroom. At what level of Kohlberg’s levels of moral development were Irene and Betty operating at? a) Stage 6, postconventional level b) Stage 5, postconventional level c) Stage 3, conventional level d) Stage 1, preconventional level e) Stage 4 conventional level Answer: a Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Application Difficulty: Medium AACSB: Analytic 175) As described by Lawrence Kohlberg in the text, the phase in moral development that focuses on personal gain and avoiding punishment is the ___ phase. a) post conventional b) conventional c) preconventional d) social e) personal Answer: c Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 176) In this phase of moral development, the individual is strongly driven by core principles and personal beliefs. This is the stage where a strong ethics framework is evident and the individual can be willing to break with norms and conventions, even laws, to make decisions consistent with personal principles. a) post conventional b) conventional Test Bank

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c) preconventional d) personal e) social Answer: a Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 177) When students on a university campus find cheating so commonplace that it becomes an accepted standard, you are dealing with an ethical issue in which context? a) situational b) personal c) organizational d) environmental e) cultural Answer: a Learning Objective 3.2: Discuss ethical dilemmas and common ethics issues in the workplace. Section Reference 3.1: Ethics in the workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 178) The behaviour of supervisors and the expectations of peers are ___ factors that influence ethical behaviour. a) social b) organization c) person d) corporate e) environment Answer: b Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Comprehension Difficulty: Easy Test Bank

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AACSB: Analytic 179) The Sarbanes-Oxley Act of 2002 makes it easier for corporate executives to be tried and sentenced to jail for ___. a) sexual harassment b) nepotism c) financial misconduct d) biodata fraud e) misuse of organizational facilities Answer: c Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 180) After doing something that might be considered unethical, a rationalizer says: “It’s not really illegal.” This expresses a mistaken belief that a) one’s behaviour is acceptable, especially in ambiguous situations. b) because someone can be found to benefit from the behaviour, it is also in the individual’s or the organization’s best interests. c) the behaviour is justified and cannot be held wrong at any time. d) the organization’s (on behalf of whom the individual acts) best interests stand above all others. e) as long as people have acted in good faith, their behaviour is ethical. Answer: a Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 181) When rationalizers tell themselves that “no one will ever know about it,” they believe that a) the behaviour is acceptable, especially in ambiguous situations. b) because someone can be found to benefit from the behaviour, it is also in the individual’s or the organization’s best interests. c) the behaviour is really “safe” and will never be found out or made public. Test Bank

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d) the organization’s (on behalf of whom the individual acts questionably) best interests stand above all others. e) as long as people have acted in good faith their behaviour is ethical. Answer: c Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 182) When rationalizers proceed with a questionable action because of a mistaken belief that “the organization will stand behind me,” they believe that a) the behaviour is acceptable, especially in ambiguous situations. b) because someone can be found to benefit from the behaviour, it is also in the individual’s or the organization’s best interests. c) the behaviour is really “safe” and will never be found out or made public. d) the organization’s (on behalf of whom the individual acts questionably) best interests stand above all others. e) as long as people have acted in good faith their behaviour is ethical. Answer: d Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 183) The text identifies different ways of dealing with the four rationalizations that are commonly used to justify unethical behaviour. Which of the following courses of action is not a recommended way for dealing with at least one of the four rationalizations? a) When in doubt about a decision to be made or an action to be taken, don’t do it. b) If other people and other companies are doing it, you are justified in doing it too. c) Look beyond the short-term results to address longer-term implications. d) Make sure everyone knows that wrongdoing will be punished whenever it is discovered. e) Organizational loyalty should not stand above the law and social morality. Answer: b Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Test Bank

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Section Reference 3.1: Ethics in the Workplace Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 184) On a recent expense report for a recent business trip, Bailey sought reimbursement for some personal entertainment expenses. Knowing that the company policy precluded such reimbursement, Bailey reported higher amounts for transportation fares and gratuities than was actually spent. Which of the following rationalizations most likely applies to Bailey’s actions? a) It’s not really illegal. b) It’s in everyone’s best interests. c) No one will ever know about it. d) My boss will cover for me. e) none of the above Answer: c Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Application Difficulty: Medium AACSB: Analytic 185) Which of the following rationalizations for unethical behaviour reflects the belief that one’s behaviour is acceptable, especially in ambiguous situations? a) It’s not really illegal. b) It’s in everyone’s best interests. c) No one will ever know about it. d) The organization will protect me. e) Everybody does it. Answer: a Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 186) Which of the following rationalizations for unethical behaviour reflects the belief that because someone can be found to benefit from the behaviour, the behaviour is also in the Test Bank

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organization’s best interests? a) It’s not really illegal. b) It’s in everyone’s best interests. c) No one will ever know about it. d) The organization will protect me. e) Everybody does it. Answer: b Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 187) Which of the following rationalizations for unethical behaviour reflects the belief that a questionable behaviour is really “safe” and will never be discovered or made public? a) It’s not really illegal. b) It’s in everyone’s best interests. c) No one will ever know about it. d) The organization will protect me. e) Everybody does it. Answer: c Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 188) Which of the following rationalizations for unethical behaviour reflects the belief that the organization’s best interests stand above all others? a) It’s not really illegal. b) It’s in everyone’s best interests. c) No one will ever know about it. d) The organization will protect me. e) Everybody does it. Answer: d Test Bank

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Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 189) Which of the following is not one of the six pillars of character as described in the textbook? a) Trustworthiness b) Citizenship c) Respect d) Credit worthiness e) Fairness Answer: d Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 190) Which of the following is not one of the characteristics of trustworthiness; one of the six pillars of character as described in the textbook? a) Honesty b) Integrity c) Acceptance d) Loyalty e) Reliability Answer: c Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 191) Which of the following is one of the six pillars of character as described in the textbook? a) Honesty Test Bank

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b) Integrity c) Acceptance d) Loyalty e) Trustworthiness Answer: e Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 192) According to Archie Carroll, an ___ manager is defined as a manager who chooses to behave unethically. a) amoral b) apathetic c) immoral d) individualist e) ethnocentric Answer: c Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 193) According to Archie Carroll, an ___ manager unintentionally or unknowingly disregards the ethics of an act or a decision. a) amoral b) apathetic c) immoral d) individualist e) ethnocentric Answer: a Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 194) The CEO of Whoosh Airlines contacted the CEO of a competitor to discuss raising airfares on their competing money-losing routes. The government agency that regulates the industry alleges that this was an illegal attempt to monopolize airline routes. According to your textbook, the CEOs would be considered what type of manager? a) corporate manager b) immoral manager c) amoral manager d) moral manager e) unethical manager Answer: b Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Application Difficulty: Medium AACSB: Analytic 195) All of the following statements are accurate except a) an amoral manager is one who fails to consider or disregards the ethical implications of his or her behaviour. b) an immoral manager is one who makes a conscious decision to behave in an unethical manner. c) a moral manager is one considers the ethical implications of his or her behaviour and actions. d) ethical mindfulness is a state of awareness that causes a person to behave in an ethical manner from one situation to another. e) in terms of ethics all managers are basically the same. Answer: e Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 196) All of the following statements are accurate except a) moral managers are leaders who possess ethical mindfulness. Test Bank

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b) amoral and immoral leaders can be just as influential as moral leaders. c) amoral and immoral leaders are less influential than moral leaders. d) amoral and immoral leaders have a largely negative impact on the ethics centre of gravity. e) moral leaders can shift the ethics centre of gravity by communicating ethical values and serving as ethics role models. Answer: c Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 197) Archie Carroll suggests that most managers act ___. a) ethically b) amorally c) immorally d) morally e) unscrupulously Answer: b Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 198) In Kohlberg’s terms, which of the following types of manager is at the postconventional level of moral development? a) unethical b) amoral c) ethnocentric d) moral e) immoral Answer: d Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Analysis Test Bank

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Difficulty: Medium AACSB: Analytic 199) ___ is the state of enriched awareness that causes a person to behave ethically from one situation to the next. a) Social entrepreneurship b) Ethics mindfulness c) Moral management d) Code of ethics e) Social responsibility Answer: b Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Application Difficulty: Medium AACSB: Analytic 200) Ethics training refers to a) structured programs to help participants understand the ethical aspects of decision making, and how to incorporate ethical standards into their daily lives. b) teaching corporate outlines for formal corporate codes of ethics. c) training on the laws under which “white collar” criminals are prosecuted. d) learning about corporate guidelines for supplier conduct. e) exposure to governmental regulations for defence contractors in the United States. Answer: a Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 201) A formal statement of an organization’s values and ethical principles that provide guidelines on how to behave in situations susceptible to ethical dilemmas are referred to as the organization’s a) code of ethics. b) corporate social responsibility. Test Bank

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c) management guidelines. d) employee mandate. e) employee handbook. Answer: a Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 202) Which of the following is seen as a shortcoming of current corporate ethics training programs? a) Scenarios such as client relationships and bribery are not dealt with. b) Even the most stringent of training programs cannot guarantee ethical behaviour c) The programs do not teach right from wrong because the assumption is individuals know this d) The programs do not give individuals the moral courage to do what is right. e) All of the above Answer: a Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 203) Which of the following is the best way to instill ethical behaviour in an organization? a) promoting rationalizations for unethical behaviour b) promoting a strict legal code c) conducting ethics training d) conducting behavioural training e) conducting physical training Answer: c Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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204) Formal codes of ethics are usually concerned with expressing how employees may be expected to behave with respect to all the following except a) customer-supplier relationships. b) political contributions. c) confidentiality of corporate information. d) choice of friends and acquaintances. e) responses to bribes and kickbacks. Answer: d Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 205) Codes of ethical conduct have several limitations. Which of the following is not one of these limitations? a) Codes of ethical conduct cannot guarantee ethical conduct. b) The value of an ethics code relies on the organization’s underlying human resource foundation. c) Ethical codes are not useful is large, complex organizations. d) Ethical codes are not replacements for hiring people of integrity. e) Ethical codes cannot replace leadership that is committed to being positive role models for the rest of the organization’s members. Answer: c Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 206) A ___ is a formal statement of an organization’s values and ethical principles that set expectations for behaviour. a) code of ethics b) mission statement c) code of conduct Test Bank

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d) legal code e) value statement Answer: a Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 207) A formal statement of an organization, for instance, “We support people through empowerment, providing a safe and caring workplace and providing opportunities for personal and professional growth” is an example of a) ethics culture. b) social responsibility. c) sustainability. d) code of ethics. e) social strategies. Answer: d Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Application Difficulty: Medium AACSB: Analytic 208) ___ should act as ethical role models and set an ethical tone in their areas of responsibility. a) Top management only b) Middle management only c) First-line or supervisory management only d) Top and middle management levels only e) All levels of management Answer: e Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Test Bank

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209) Which of the following is a primary reason why employees fail to blow the whistle to report wrongdoings they observe at work? a) a flexible and lenient chain of command b) weak work group identities that discourage loyalty and self-censorship c) presence of ethical leadership d) the belief that no corrective action would be taken e) the lack of any commitment to the organization Answer: d Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 210) Which of the following is true of a whistleblower? a) A whistleblower is the first to act unethically in an organization. b) Whistleblowers unintentionally disregard the ethics of an act or a decision. c) Whistleblowers are members of management who specifically look out for unethical behaviour among employees. d) A whistleblower exposes the misdeeds of others in organizations. e) Whistleblowers are members of law enforcement specifically trained to deal with financial misconduct. Answer: d Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 211) Which of the following is not a potential risk faced by people who act as whistleblowers? a) impaired career progress b) retaliatory discharge c) being ostracized by peers d) being generously rewarded for revealing misdeeds e) character assassination Test Bank

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Answer: d Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 212) A strict chain of command, strong work group identities, and ambiguous priorities are a) organizational barriers to whistle blowing. b) essential components of moral quality circles. c) mechanisms for resolving ethical dilemmas. d) all of the above e) none of the above Answer: a Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 213) The persons, groups, and other organizations directly affected by the behaviour of an organization and holding a stake in its performance are referred to as a) governing boards. b) organizational stakeholders. c) trustees. d) role senders. e) regulators. Answer: b Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 214) Major organizational stakeholders include all of the following except Test Bank

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a) employees and contractors who work for the organization. b) providers of the organization’s human, information, material, and financial resources. c) general economic conditions and political trends. d) stockholders, investors, and creditors with claims on assets and profits of the organization. e) local, state, and national governmental agencies that enforce laws and regulations. Answer: c Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 215) Stakeholder power a) indicates the extent to which stakeholders need immediate attention. b) refers to the managers’ ability to maximize profits. c) refers to the shareholders’ ability to influence managers. d) refers to the capacity of the stakeholder to positively or negatively affect the operations of the organization. e) indicates the validity and legitimacy of a stakeholder’s interests in the organization. Answer: d Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 216) Demand legitimacy a) indicates the extent to which stakeholders need immediate attention. b) refers to the managers’ ability to maximize profits. c) refers to the shareholders’ ability to influence managers. d) refers to the capacity of the stakeholder to positively or negatively affect the operations of the organization. e) indicates the validity and legitimacy of a stakeholder’s interest in the organization. Answer: e Learning Objective 3.4: Explain social responsibility and corporate governance. Test Bank

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Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 217) Aubrey Louise, an important stakeholder at Carmichaels & Sons. Inc. requests a detailed report of the profit statement of the company when rumors are heard that the balance sheet for the past year was fabricated. Aubrey’s request is immediately granted as some of the higher officials had the same suspicions. Which of the following best explains the quick actions taken in this case? a) issue urgency b) corporate social responsibility c) demand legitimacy d) self-centred behaviour e) organizational setting Answer: c Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Application Difficulty: Medium AACSB: Analytic 218) Issue urgency a) indicates the extent to which the stakeholder’s concerns need immediate attention. b) refers to the managers’ ability to maximize profits. c) refers to the shareholders’ ability to maximize profits. d) refer to the capacity of the stakeholder to positively or negatively affect the stakes of the organization. e) indicates the validity and legitimacy of a stakeholder’s interest in the organization. Answer: a Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 219) ___ describes the obligation of an organization to act in ways that serve both its own Test Bank

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interests and the interests of society at large. a) Sustainability b) Corporate accountability c) Environmental stewardship d) Corporate social responsibility e) Corporate citizenship Answer: d Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 220) In a press release, a major fast food chain issues the statement: “Since 2007, we have reduced sodium in our soup by 30%.” This is an example of a) ethics. b) global issues. c) corporate social responsibility. d) social performance. e) sustainability. Answer: c Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Application Difficulty: Medium AACSB: Analytic 221) Birds Unlimited has met its objective to achieve a 20% increase in profits over the previous year through the introduction of new products and services. The company has met its a) social responsibility. b) economic responsibility. c) ethical standards. d) social performance. e) customer responsibility. Answer: b Test Bank

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Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Application Difficulty: Medium AACSB: Analytic 222) ___ refers to an organization’s obligation to act in ways that serve its own interests as well as the interests of society at large. a) A code of ethics b) A moral code c) A formal policy statement d) Public accountability e) Corporate social responsibility Answer: e Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 223) Stewardship means taking personal responsibility to always respect and protect the interests of ___ at large. a) stakeholders b) shareholders c) management d) the environment e) the organization Answer: a Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 224) ___ can be described as acting in ways that ensure a better quality of life for all, now and in the future. Test Bank

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a) Sustainability b) Corporate accountability c) Environmental stewardship d) Corporate social responsibility e) Corporate citizenship Answer: a Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 225) The ___ evaluates organizational performance on economic, social, and environmental criteria. a) social denominator b) corporate critical line c) stewardship audit d) global value audit e) triple bottom line Answer: e Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 226) The 3 P’s of organizational performance are a) planning, process, and profit. b) procurement, process, and profit. c) procurement, processing, and planet. d) place, people, and policy. e) profit, people, and planet. Answer: e Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 227) The triple bottom line for assessing organizational performance evaluates how well organizations are doing on a) economic, social, and environmental performance criteria. b) industrial, market, and customer satisfaction criteria. c) ecological, environmental, and financial criteria. d) humanitarian, sociological, and research criteria. e) geological, anthropological, and lean performance criteria. Answer: a Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 228) Which of the following leadership beliefs is not appropriate for guiding socially responsible organizational practices? a) People do their best in a healthy work environment that allows for job involvement as well as a good balance between work and family life. b) Organizations function best over the long run when located in healthy communities with high qualities of life. c) Organizations realize performance gains and efficiencies by exploiting the natural environment. d) Organizations must be managed and led for long-term success. e) An organization’s reputation must be protected as a valuable asset. Answer: c Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Application Difficulty: Medium AACSB: Analytic 229) ___ of corporate social responsibility is the view that management’s only responsibility in running a business is to maximize profits. Test Bank

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a) The stockholder model b) The shared value view c) The corporate view d) The classical view e) The socio-economic view Answer: d Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 230) According to the classical view of corporate social responsibility, the principal obligation of management should be to ___. a) suppliers b) owners c) consumers d) future generations e) the state or local government Answer: b Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 231) According to proponents of the classical view of corporate social responsibility, what drives businesses to make things like healthier foods and energy-efficient products? a) the government b) profitability c) owners and shareholders d) a sense of indebtedness to society e) pressure from civil society Answer: b Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Test Bank

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Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 232) ___ of corporate social responsibility is the view which maintains that the organization must be concerned with the broader social welfare and not just with corporate profits. a) The stockholder model b) The shared value view c) The stakeholder view d) The classical view e) The socio-economic view Answer: e Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 233) The ___ view of corporate social responsibility is that business should focus on the broader welfare of the community and not just profits. a) shared value b) classical c) post-modern d) socio-economic e) ethnocentric Answer: d Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 234) Which of the following statements is in agreement with the socio-economic view of corporate social responsibility? a) Financial improvement can be achieved by being socially responsible. b) The primary responsibility of business is to maximize business profits. Test Bank

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c) By acting responsibly, businesses avoid government regulation. d) Businesses must be concerned with the broader social concerns and not just with corporate profits. e) Society is served best when businesses are allowed to maximize their profits. Answer: d Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 235) The ___ view of corporate social responsibility approaches business decisions with the understanding that economic and social progress are interconnected. a) shared value b) classical c) post-modern d) socio-economic e) ethnocentric Answer: a Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 236) The ___ refers to the situation in which corporate social responsibility leads to improved financial performance and this, in turn, leads to additional socially responsible actions. a) generous stakeholder b) virtuous circle c) just alliance d) fair community e) socio-economic parable Answer: b Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 237) A company following the virtuous circle of corporate social responsibility will most likely a) become an add-on initiative—funding activities like philanthropy, environmental preservation, and community projects. b) pursue a narrow stakeholder perspective focused on maximizing short-term profits. c) pursue its own interests in competitive settings and make products that are profitable. d) put society and the environment ahead of shareholders and stakeholders. e) integrate socially responsible behaviour into everyday business goals and activities for an improved financial performance. Answer: e Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 238) Which of the following is most likely to result in a virtuous circle? a) Unicorn Educational Services makes anonymous donations to charities every year. b) Holding Hands, a not-for-profit organization, provides free food and shelter to orphans. c) Medix Technology funds frequent AIDS awareness programs held by a not-for-profit organization in the surrounding neighborhood. d) Bubble Plastics incorporates environmentally friendly manufacturing techniques that also result in cost savings. e) Fryt Inc. uses environmentally hazardous chemicals to reduce the cost of manufacturing its products and to maximize its profits. Answer: d Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Application Difficulty: Medium AACSB: Analytic 239) Arguments that corporations should engage in socially responsible behaviour include all the following except Test Bank

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a) social responsibility decreases the need for restrictive government regulation. b) businesses have the resources and obligation to act in socially responsible ways. c) socially responsible behaviour improves the public image of business. d) pursuing socially responsible goals may dilute the purpose of the business. e) long-run profits for the business may improve or even be dependent on its degree of social responsibility. Answer: d Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Application Difficulty: Medium AACSB: Analytic 240) A social responsibility audit is a) a systematic assessment and reporting of an organization’s accomplishments in various areas of corporate social responsibility. b) a public opinion survey regarding the social impact of a corporation’s actions. c) an internal accounting audit requested by shareholders. d) a systematic assessment of the corporation’s impact on its employees’ social lives. e) a survey of employees regarding their social preferences. Answer: a Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 241) Which of the following does not reflect a common audit area for corporate social responsibility? a) ecology and environmental quality b) truth in lending and consumer protection c) managing conflict d) service to communities e) employment practices Answer: c Learning Objective 3.4: Explain social responsibility and corporate governance. Test Bank

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Section Reference 3.4: Social Responsibility Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 242) Castle & Co. focuses on using recycled paper as packing material. Though the firm incurs a higher cost of inputs due to this strategy, it continues to use the recycled papers thereby contributing to the betterment of the larger community. When a social responsibility audit is taken, on what side will the company’s performance rate? a) compliance b) negative c) underrated d) conviction e) moderate Answer: d Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Application Difficulty: Medium AACSB: Analytic 243) The text identifies several criteria for evaluating socially responsible corporate behaviour. A firm is meeting its ___ when it earns a profit through provision of goods and services desired by customers. a) economic responsibility b) legal responsibility c) ethical responsibility d) discretionary responsibility e) stakeholder responsibility Answer: a Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 244) There are several criteria for evaluating socially responsible corporate behaviour. A firm is Test Bank

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meeting its ___ when it operates within the law and according to the requirements of various external regulations. a) economic responsibility b) legal responsibility c) ethical responsibility d) discretionary responsibility e) stakeholder responsibility Answer: b Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 245) There are several criteria for evaluating socially responsible corporate behaviour. A firm is meeting its ___ when it voluntarily conforms to legal as well as broader values and moral expectations of society. a) economic responsibility b) legal responsibility c) ethical responsibility d) discretionary responsibility e) stakeholder responsibility Answer: c Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 246) There are several criteria for evaluating socially responsible corporate behaviour. A firm is meeting its ___ when it voluntarily moves beyond basic economic, legal, and ethical expectations to provide leadership in advancing social well-being. a) economic responsibility b) legal responsibility c) ethical responsibility d) discretionary responsibility e) stakeholder responsibility Test Bank

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Answer: d Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 247) The highest level of social performance comes through the satisfaction of an organization’s a) economic responsibility. b) legal responsibility. c) ethical responsibility. d) discretionary responsibility. e) stakeholder responsibility. Answer: d Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 248) A(n) ___ strategy tries to avoid and resist pressures for social responsibility. a) minimalist b) obstructionist c) defensive d) accommodative e) proactive Answer: b Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 249) In the ___ strategy of corporate social responsibility, social demands lying outside the organization’s perceived self-interests are resisted. Test Bank

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a) minimalist b) obstructionist c) defensive d) accommodative e) proactive Answer: b Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 250) Strathum Tech Inc., a manufacturer of refrigerators, used ozone depleting CFCs in its products. It downplayed the significance of ozone depletion for years, claiming that CFCs do not cause any significant harm to the ozone layer. Which of the following strategies of corporate social responsibility did the company employ? a) minimalist b) obstructionist c) defensive d) accommodative e) proactive Answer: b Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Application Difficulty: Medium AACSB: Analytic 251) Which strategy of corporate social responsibility meets only economic responsibilities? a) resistive b) obstructionist c) defensive d) accommodative e) proactive Answer: b Test Bank

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Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 252) Karlanium Inc. is a bottle manufacturing company. It is required by law to process its waste by-products before depositing it in the dumping grounds. Its social responsibility is limited to fulfilling this legal requirement. To which of the following categories does Karlanium belong? a) resistive b) obstructionist c) defensive d) accommodative e) proactive Answer: b Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 253) A(n) ___ strategy does the minimum legal requirements to display social responsibility. a) leadership b) obstructionist c) defensive d) accommodative e) proactive Answer: c Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 254) Piggybank is a finance company that offers small loans to individuals. Legal guidelines regarding small loans require the terms and conditions of payback be accessible to customers. The company complies with this rule by putting up a poster with terms and conditions in a back Test Bank

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room of their office. Only customers explicitly wishing to see the terms and conditions are taken to the back room. What strategy of corporate social responsibility does the company follow? a) leadership b) obstructionist c) defensive d) accommodative e) proactive Answer: c Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Application Difficulty: Medium AACSB: Analytic 255) A(n) ___ strategy accepts social responsibility and tries to satisfy society’s basic ethical expectations. a) resistive b) obstructionist c) defensive d) accommodative e) proactive Answer: d Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 256) Which strategy of corporate social responsibility meets economic, legal, and ethical responsibilities but not discretionary responsibilities? a) resistive b) obstructionist c) diversification d) accommodative e) proactive Answer: d Test Bank

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Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 257) A(n) ___ strategy actively pursues social responsibility by taking discretionary actions to make things better in the future. a) resistive b) obstructionist c) defensive d) accommodative e) proactive Answer: e Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 258) Which corporate social responsibility strategy meets economic, legal, ethical, and discretionary responsibilities? a) resistive b) obstructionist c) defensive d) accommodative e) proactive Answer: e Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 259) An organization that is following a(n) ___ social responsibility strategy would both take preventive action to avoid adverse social impacts from company activities and take a leadership Test Bank

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role in identifying and responding to emerging social issues. a) obstructionist b) defensive c) accommodative d) proactive e) ethical Answer: d Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 260) Shine Clean, a laundry detergent manufacturer, employs unskilled locals and trains them. It manufactures its detergent using organic products. It uses biodegradable packaging that is sourced locally, and disposes its wastes using environmentally friendly methods. It follows the advice of its research team and takes discretionary actions in the hopes of making things better in the future. Shine Clean is pursuing the ___ strategy of corporate social responsibility. a) resistive b) obstructionist c) defensive d) accommodative e) proactive Answer: e Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Application Difficulty: Medium AACSB: Analytic 261) Which of the following corporate social responsibility strategies addresses the most number of responsibilities? a) resistive b) obstructionist c) defensive d) accommodative e) proactive Test Bank

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Answer: e Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 262) Businesses are required by law to have boards of directors that are elected by ___ to represent their interests. a) customers b) government officials c) shareholders d) union leaders e) all employees Answer: c Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 263) When organizations decide to maximize profits and serve the greater good, this is referred to as ____________. a) Corporate Knights b) White Knights c) Corporate Social Responsibility d) Social Entrepreneurship e) Corporate Governance Answer: d Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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264) ___ is the active oversight of top management by a board of directors. a) Ethical administration b) Executive leadership c) Corporate governance d) Final authority e) Command leadership Answer: c Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 265) Corporate governance typically involves all the following except a) hiring and firing the chief executive officer (CEO). b) assessing strategy. c) verifying financial records. d) approving product specifications and production methods. e) compensating the chief executive officer (CEO). Answer: d Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 266) ___ is making sure day-to-day performance is achieved ethically and in socially responsible manner. a) Corporate governance b) Social leadership c) Ethical self-governance d) Stockholder control e) Command leadership Answer: c Learning Objective 3.4: Explain social responsibility and corporate governance. Test Bank

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Section Reference 3.4: Social Responsibility Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 267) The management challenge in contemporary organizations is best summarized in which of the following statements? a) Managers must simultaneously maintain high-performance standards as well as ethical and socially responsible operations. b) Every manager must strive to achieve organizational goals even if it compromises his/her values. c) Economic performance is the most important objective that managers must achieve. d) Maintaining ethical standards and promoting social responsibility are the most important objectives managers must achieve. e) Management in today’s business environment should be approached in essentially the same way that it was in the past. Answer: a Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Application Difficulty: Medium AACSB: Analytic 268) Glendelwalt is a finance corporation that believes in working for the betterment of the present as well as the future generations. They promote the principle of stewardship and sustainability. Which of the following actions should it implement so as to promote their ideals? a) Hire more workers. b) Remodel and renovate their building. c) Start a “save water and energy” program. d) Increase the salary of the workers. e) Improve their customer service. Answer: c Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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Question type: Essay 269) What are instrumental and terminal values? Give examples of each. Answer: Terminal values are preferences about desired ends, such as the goals one strives to achieve in life. Examples of terminal values considered important by managers include selfrespect, family security, freedom, and happiness. Instrumental values are preferences regarding the means for accomplishing these ends. Among the instrumental values held important by managers are honesty, ambition, imagination, and self-discipline. Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 270) Identify four alternative views of ethical behaviour, briefly describe the main emphasis of each view, and give a specific example in relation to each organization for each view. Answer: The four alternative views of ethical behaviour and the main emphasis of each are as follows: Utilitarian view – ethical behaviour that delivers the greatest good to greatest number of people. Individualism view – ethical behaviour that best serves long-term self-interests. Moral-rights view – ethical behaviour that respects the fundamental rights of all people. Justice view – ethical behaviour that is impartial and fair in treating people according to guiding rules and standards. Specific examples will vary. Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Application Difficulty: Medium AACSB: Analytic 271) The business ethics of your partner in North America, your supplier in India, and your customer in Europe, may vary because they have their root in the culture of their home society. What are some of the key ethical issues facing companies doing business in a global context? What is your view of how well businesses have done in facing and addressing those ethical issues? Answer: Although more small businesses are venturing into the global marketplace, large multinational corporations still represent much of international business, and the ethical expectations of them are often greater because of their size and visibility. These corporations Test Bank

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face complex business ethics environments that vary widely from country to country. In addition to the stakeholders normally considered in any ethical business decision, the number of stakeholders grows to include host governments, foreign suppliers, agents, and other organizations. The idea of variation in business ethics formally known as “cultural relativism” states that the “right way to act”—what is “good behaviour”—is nothing more than behaviour that is socially approved by the majority within a culture. What some countries, cultures and governments perceive as good and ethical business practices meant to boost the competitive advantage of their home country corporations are often seen as just the opposite—bordering on the unethical and providing an unfair advantage over competitors. Other potential ethical questions that could be mentioned include: global supply chain, product quality, labour rights and standards, corruption, bribery, extortion, safety standards, concerns about environmental degradation, crime, lack of legal enforcement or clear property rights, women’s rights, children’s rights. Students will have different views on how businesses have managed in light of these issues. Multinational companies are gaining experience in managing these complex ethical issues in a complex, globalized world. The expanding interest in business ethics and the development of international guidelines to guide business behaviour across cultural boundaries will help bring more consistency in ethical standards and contribute to making the international business experience a richer and more satisfying one for all concerned. Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Analysis Difficulty: Medium AACSB: Reflective Thinking 272) Describe the utilitarian view of ethical behaviour. Provide at least one real world example of this view. Answer: The utilitarian view considers ethical behaviour to be that which delivers the greatest good to the greatest number of people. Based on the work of 19th-century philosopher John Stuart Mill, this results-oriented point of view assesses the moral implications of actions in terms of their consequences. Business decision makers, for example, are inclined to use profits, efficiency, and other performance criteria to judge what is best for the most people. An example could include the automotive industry, which recently underwent plant shutdowns and massive layoffs in order to reduce costs. Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking Test Bank

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273) List and describe the four dimensions of justice issues in organizations. Illustrate your answer with an example for each dimension. Answer: The four dimensions are: Procedural; Distributive, Interactional and Commutative. Procedural justice involves the degree to which policies and rules are fairly applied to all individuals. For example, does a sexual harassment charge levied against a senior executive receive the same full hearing as one made against a first-level supervisor? Does a woman with the same qualifications and experience as a man receive equal treatment under a nodiscrimination policy for hiring or promotion? Distributive justice involves the degree to which outcomes are allocated fairly among people and without respect to individual characteristics based on ethnicity, race, gender, age, or other particularistic criteria. For example, are members of minority groups adequately or proportionately represented in senior management positions? Do universities allocate a proportionate share of athletic scholarships to males and females? Interactional justice involves the degree to which people treat one another with dignity and respect. For example, does a bank loan officer take the time to fully explain to an applicant why he or she was turned down for a loan? Commutative justice focuses on the fairness of exchanges or transactions. According to this principle, the exchange is deemed to be fair if all parties enter into it freely, have access to relevant and available information, and obtain some type of benefit from the transaction. Learning Objective 3.1: Define ethics and describe the foundations of ethical behaviour. Section Reference 3.1: Ethics Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 274) Define an ethical dilemma? Describe some of the possible sources of ethical dilemmas. Answer: An ethical dilemma occurs when someone must choose whether to pursue a course of action that, although offering the potential of personal or organizational benefit or both, may be considered unethical. Potential sources of ethical dilemmas include discrimination, sexual harassment, conflicts of interest, customer confidence, and organizational resources. Additionally, many ethical dilemmas involve conflicts with superiors, customers, and subordinates. Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 275) Describe the different levels of L. Kohlberg’s moral development. Include in your identify Test Bank

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the stages of each level and provide one example of each level. Answer: Lawrence Kohlberg describes the three levels of moral development—preconventional, conventional, and postconventional. There are two stages in each level, and Kohlberg believes that we move step by step through them as we grow in maturity and education. In Kohlberg’s preconventional level of moral development the individual is self-centred. Moral thinking is largely limited to issues of punishment, obedience, and personal interest. Decisions made in the preconventional stages of moral development are likely to be directed toward achieving personal gain (Stage 2) or avoiding punishment (Stage 1) and are based on obedience to rules. In the conventional level of moral development, the individual is more social-centred. Decisions made in these stages are likely to be based on following social norms, meeting the expectations of group memberships, (Stage 3) and living up to agreed-upon role obligations. Rules are followed in order to help society as a whole run smoothly (Stage 4). At the postconventional level of moral development, the individual is strongly principle-centred. This is where a strong ethics framework is evident. The individual is willing to break with norms and conventions, even laws, to make decisions consistent with universal principles. Stage 5 of this level is where the individual will live up to societal agreement regarding individual rights and Stage 6 is where the individual will act according to their own internal principles. Kohlberg believes that only a small percentage of people progress to the postconventional stages. Examples will vary by student. Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 276) What is ethics intensity? Discuss the conditions that raise the ethics intensity of a situation. Answer: Ethics intensity is the extent to which a situation is perceived to pose important ethics challenges. The conditions that raise the ethics intensity of a situation include the magnitude, probability, and immediacy of any potential harm, the proximity and concentration of the effects, and social consensus. A decision situation will elicit greater ethical attention when the potential harm is perceived as great, likely, and imminent, when the potential victims are visible and close by, and when there is more social agreement on what is good or bad about what is taking place. Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Solution:

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277) Taylor works for Vision, a billboard advertising agency, which hires billboards from owners on behalf of clients. Taylor routinely accepts pay-offs from billboard owners in exchange for referring their billboards to clients. This behaviour could result in his dismissal from Vision, if found out. Of the rationalization arguments presented in your textbook, which is Taylor most likely to use to rationalize this act? Support your answer. Answer: Taylor is most likely to use either “It’s in everyone’s best interests” or “The organization will stand behind me”. The first statement could be used as Taylor could argue that it is in Vision’s interest as the company gets more customers and therefore more revenue. This also keeps the employees working as well. The client is also benefiting as their signs are being rented out. The second statement could be used by Taylor, assuming that top management has no problem with the action – that top management is basically immoral. Learning Objective 1: Discuss ethical dilemmas and common ethics issues in the workplace Section Reference 3.1: Ethics in the Workplace Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 278) What are codes of ethics? What ethical issues do they address? Answer: Codes of ethics are formal statements of an organization’s values and ethical principles that set expectations for behaviour. Ethics codes typically address organizational citizenship, illegal or improper acts, and relationships with co-workers and customers. Specific guidelines are often set for bribes and kickbacks, political contributions, honesty of books or records, and confidentiality of corporate information. Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 279) Discuss the ways in which high ethical standards may be maintained in organizations. Answer: Four primary methods for maintaining high ethical standards are: ethics training, whistleblower protection, ethical role models, and codes of ethical conduct. Each of these is described below: Ethics training refers to structured programs that help participants understand the ethical aspects of decision making, and help people incorporate high ethical standards into their daily behaviours. Ethics training helps people deal with ethical issues while under pressure and to avoid the common rationalizations for unethical behaviour. Whistleblowers are people who expose the misdeeds of others in organizations in order to Test Bank

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preserve ethical standards and protect against wasteful, harmful, or illegal acts. Whistleblowers need to be protected because of the risk of managerial/organizational retaliation and career damage. Being an ethical role model applies to managers throughout the organization. The behaviour of top managers can either encourage or discourage unethical behaviour in others at lower levels of the organization. Although top managers have a special responsibility for setting the ethical tone of an organization, all managers can influence the ethical behaviour of the people who work for and with them. Codes of ethical conduct are official written guidelines on how to behave in situations susceptible to ethical dilemmas. Most ethical codes identify expected behaviour in terms of general organizational citizenship, the avoidance of illegal or improper acts in one’s work, and good relationships with customers. Learning Objective 3.3: Describe approaches to maintaining high ethical standards. Section Reference 3.3: Maintaining High Ethical Standards Bloom’s: Analysis Difficulty: Medium AACSB: Reflective Thinking 280) Corporations that want to be regarded as socially responsible are establishing corporate governance initiatives and practices that encourage sustainability. Define sustainability and discuss whether companies can achieve a higher degree of ethics as a result of corporate sustainability initiatives. Answer: Sustainability can be defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” Central to sustainability is finding a balance between present and future needs, focusing on social rights, environmental protection, and economic development. Cost reduction, resource preservation, legislative compliance, reputation and right initiatives are some of the reasons why businesses focus on sustainability programs. The drive for continuous improvement in products and markets has made organizations environmentally aware and become a part of an ever-increasing standard of business ethics. As companies drive to increase shareholder values through profits and margins, internal and external business sustainability has become the new doctrine for success. The mantra of this new management culture is one that equates business growth with business sustainability while raising the plateau for greater and higher ethical standards. When a company knows what it really stands for, and when this knowledge guides company decisions about what to do and what not to do in most situations, then the problem of ethical compliance largely fades away. Owing to their wholehearted approach to ethics, these companies are steps ahead of competitors in their categories. In many ways, businesses have significantly shifted away from a traditional model which suggested that addressing environmental concerns is a distraction from core functions. In fact, some businesses are finding that well managed social responsibility programs and corporate sustainability initiatives can be a driver for competitive advantage and new business opportunities. Test Bank

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Learning Objective 3.4: Explain social responsibility and corporate governance. Section Reference 3.4: Social Responsibility Bloom’s: Analysis Difficulty: Medium AACSB: Reflective Thinking 281) What is corporate social responsibility? In your opinion, should businesses be socially responsible? Support your answer with appropriate reasons. Answer: Corporate social responsibility looks at ethical behaviour from the organizational level. Corporate social responsibility is an obligation of the organization to act in ways that serve both its own interests and the interests of its many external stakeholders¾those persons, groups, and other organizations directly affected by the behaviour of the organization and who hold a stake in its performance. In the 21st century economy, it is hard to argue against corporate social responsibility. One way to approach this is by exploring the linkage between organizations’ corporate social responsibility and their financial performance. In the short term, financial success might be achieved by ignoring social responsibility. In the long term, however, proper attention must be given to social responsibility in order for the company to survive and prosper. Indeed, in today’s world, the public at large expects businesses and other organizations to act with genuine social responsibility. Additionally, increasing empirical evidence indicates that high performance in social responsibility can be associated with strong financial performance and, at worst, has no adverse financial impact. Moreover, recent evidence suggests the existence of a virtuous circle in which corporate social responsibility leads to improved financial performance and this, in turn, leads to additional socially responsible actions. Another approach for supporting the contention that businesses should be socially responsible draws upon the four criteria for evaluating corporate social performance. These criteria, which can be arranged in a hierarchy of impact, are the following: - the organization’s economic responsibility, which is met when it earns a profit through the provision of goods and services desired by customers. - the organization’s legal responsibility, which is fulfilled when it operates within the law and according to the requirements of various external regulations. - the organization’s ethical responsibility, which is met when its actions voluntarily conform to both legal expectations and the broader values and moral expectations of society. - the organization’s discretionary responsibility, which involves the organization’s voluntary movement beyond basic economic, legal, and ethical expectations to provide leadership in advancing the well-being of individuals, communities, and society as a whole. The argument can be made that businesses are more likely to survive and succeed over the long term when they fulfill a responsibility that has greater impact. Thus, a higher probability of survival and success would occur by fulfilling the legal responsibility than by just fulfilling the economic responsibility. Likewise, fulfilling the ethical responsibility likely produces still further increases in the probability of business success and survival. Fulfilling the discretionary responsibility should provide a business with the greatest chance of survival and success. Test Bank

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CHAPTER 4 ENVIRONMENT, INNOVATION, AND SUSTAINABILITY Question type: True/False 1) Offshoring is the return of jobs from foreign locations as companies establish new domestic operations. Answer: False Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 4.1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 2) Rising labour costs, higher shipping costs, and public criticisms about destroying local jobs can cause global firms to return to their home countries. Answer: True Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 3) The legal-political conditions in the global business environment are uniform across all countries. Answer: False Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 4.1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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4) Inflation, income levels, and job outlook are part of the socio-cultural conditions in the general environment. Answer: False Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 4.1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 5) The baby boomers are “digital natives” who grew up in technology- enriched homes, schools, and friendship environments. Answer: False Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 4.1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 6) Some of the important socio-cultural conditions of the general environment include more people of colour and more women entering the workforce, accompanied by decreases in both religious diversity and the number of workers coming from non-traditional families. Answer: False Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 7) The millennials are characterized with the ease of multitasking, desire for immediate gratification, continuous contact with others, and less concern with knowing things than with knowing where to find out about things. Answer: True Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 4.1: The External Environment Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 8) Competitive advantage achieved through costs will help an organization earn profits with prices that one’s competitors have difficulty matching. Answer: True Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 9) Customers and owners are important resource input stakeholders in an organization’s value creation, whereas suppliers and communities are important product output stakeholders in an organization’s value creation. Answer: False Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 10) The more uncertain the environment, the easier it is to analyze environmental conditions and predict future states of affairs. Answer: False Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 11) The least challenging and certain situation is an environment that is both complex and Test Bank

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dynamic. Answer: False Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 12) High environmental uncertainty occurs when the rate of change in the environment is low and the complexity of the environment is low. Answer: False Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 13) Innovation is a low priority when executives and leaders try to steer organizations through complex and uncertain environments. Answer: false Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 14) Creating positive change in organizations is easy, despite the complexity, uncertainty, anxiety, and risk involved. Answer: false Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Medium Test Bank

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AACSB: Analytic

15) Product innovations result in better ways of doing things. Answer: false Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 16) Invention is the generation of a novel idea or unique approach to solving problems or crafting opportunities. Answer: false Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 17) Business model innovations result in new ways of making money for the firm. Answer: true Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 18) Within the context of Gary Hamel’s “wheel of innovation,” scaling concerns testing ideas in concept; discussing them with peers, customers, clients, or technical experts; and building initial models, prototypes, or samples. Answer: false Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Test Bank

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Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

19) The initial step of assessing in the innovation process involves commercializing innovation by turning it into actual products, services, or processes that increase profits by improving sales or lowering costs. Answer: false Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 20) The concept of reverse innovation got its start as global firms moved away from viewing innovation as a “home market” activity that creates new products and services for distribution to “foreign markets.” Answer: true Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 21) Highly innovative organizations have top managers who understand the innovation process, tolerate criticism and differences of opinion, take all possible steps to keep goals clear, and maintain the pressure to succeed. Answer: true Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 22) Environmental capital is the supply of natural resources that we use to sustain life and Test Bank

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produce goods and services for society. Answer: true Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 23) Sustainable development places greater importance on the needs of the present generation than on the needs of future generations. Answer: false Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 24) The executives of Dunes Inc. pay equal attention toward maximizing profits of the firm, maintaining the well-being of its employees, satisfying its customers, and preserving the environment. This indicates that Dunes Inc. uses the triple bottom line approach. Answer: true Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Application Difficulty: Medium AACSB: Analytic 25) An organization that does not provide health insurance to employees can be categorized as one with poor human sustainability. Answer: true Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic Test Bank

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26) Pfeffer’s concern on human sustainability focuses on the importance of employees as they are organizational stakeholders. Answer: true Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Question Type: Multiple Choice 27)The general environment of organizations comprises a. the groups and persons with whom an organization interacts and conducts business b. Economic, legal-political, socio-cultural, technological, and natural environment c. missions, strategies and internal practices d. all external conditions that set the context for managerial decision-making. Answer: d Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 28) Internet censorship a. occurs solely as a response to events such as elections, protests, or riots. b. is the deliberate blockage and denial of public access to information posted on the Internet. c. is based on the right for expansive free speech and access to content on the Internet. d. occurs when authorities block content to mislead the public. Answer: b Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic Test Bank

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29) Generational cohorts consist of a. segmentation of a jurisdiction population b. people who have the similar ideas, problems, and attitudes c. people born within a few years of one another and who experience somewhat similar life events during their formative years d. people born within a relative timeframe in a general jurisdiction e. people who live in multigenerational groupings within a general jurisdiction Answer: c Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 30) Legal-political conditions in the general environment include: a. norms, customs, and social values regarding human rights, trends in education and related social institutions, and demographic patterns in society. b. existing and proposed laws and regulations, and the policies of the government and political parties. c. the way we work, how we live, and how we raise our families d. the external environment and the competition e. social problems, such as poverty, famine, disease, and literacy. Answer: b Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 31) A sustainable business a. is defined by the integration of economic, environmental, and social goals, activities, and plans. b. both meets the needs of customers and protects the natural environment for future generations. c. does not embrace change or constant reinvention. d. focuses on profitability and exploitation of natural resources. e. undertakes a traditional approach toward competition, environmental policies and Test Bank

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human rights. Answer: b Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 32) High-uncertainty environments require a. the ability of decision makers to avoid new circumstances b. the ability of decision makers to respond to all circumstances with equal tact and professionalism c. the ability of decision makers to conduct a full risk analysis of new circumstances and new information prior to making decisions d. the ability of decision makers to respond quickly as new circumstances arise and new information becomes available. e. the ability of decision makers to respond in due course to all new insights and events Answer: d Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 33) ________ environment consists of economic, legal-political, socio-cultural, technological, and natural environment conditions. a) Specific b) Task c) General d) Stakeholder e) Customer Answer: c Learning Objective 4.1: Summarize key trends in the external environment of organizations Section Reference 1: The External Environment Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 34) General environment conditions exclude which one of the following categories? a) technological conditions b) human relations conditions c) economic conditions d) legal-political conditions e) natural environment conditions Answer: b Learning Objective 4.1: Summarize key trends in the external environment of organizations Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 35) Which of the following represents the economic conditions in the general environment? a) patents b) infrastructure c) Internet access d) unemployment rate e) norms Answer: d Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 36) Economic conditions in the general environment include ___. a) philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations b) inflation, income levels, gross domestic product, unemployment, and job outlook c) norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society d) development and availability of technology, including scientific advancements Test Bank

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e) nature and conditions of the natural environment, including levels of public concern expressed through environmentalism Answer: b Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 37) Legal-political conditions in the general environment include ___. a) philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations b) inflation, income levels, gross domestic product, unemployment, and job outlook c) norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society d) development and availability of technology, including scientific advancements e) nature and conditions of the natural environment, including levels of public concern expressed through environmentalism Answer: a Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

38) Socio-cultural conditions in the general environment include ______. a) philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations b) inflation, income levels, gross domestic product, unemployment, and job outlook c) norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society d) development and availability of technology, including scientific advancements e) nature and conditions of the natural environment, including levels of public concern expressed through environmentalism Answer: c Test Bank

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Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

39) Technological conditions in the general environment include ___. a) philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations b) inflation, income levels, gross domestic product, unemployment, and job outlook c) norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society d) development and availability of technology, including scientific advancements e) nature and conditions of the natural environment, including levels of public concern expressed through environmentalism Answer: d Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 40) Natural environment conditions in the general environment include ___. a) philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations b) inflation, income levels, gross domestic product, unemployment, and job outlook c) norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society d) development and availability of technology, including scientific advancements e) nature and conditions of the natural environment, including levels of public concern expressed through environmentalism Answer: e Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 4.1: The External Environment Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 41) A country faced severe recession that resulted in loss of jobs and low-income levels, which in turn affected the lifestyles of the consumers. Which of the following conditions are influencing the environment of the country? a) political conditions b) legal conditions c) technological conditions d) socio-cultural conditions e) economic conditions Answer: e Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Application Difficulty: Medium AACSB: Analytic 42) Which of the following involves outsourcing of jobs to foreign locations? a) reshoring b) offshoring c) repatriation d) nationalization e) backshoring Answer: b Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 43) Which of the following is a criterion of a good economic condition in the general environment? a) the rising income inequality among the working class b) the low unemployment rate in the society c) the introduction of new developments in the technological areas d) the introduction of carbon neutral methods for sustainable development e) the occurrence of long-term joblessness among the people of the society Test Bank

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Answer: b Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 44) Adams Inc., an automobile corporation based in London, shifts its manufacturing activities to China in order to minimize its cost of production. Which strategy has is Adams Inc. adopted here? a) repatriation b) nationalization c) backshoring d) offshoring e) reshoring Answer: d Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Application Difficulty: Medium AACSB: reflective Thinking 45) Which of the following would qualify as a reason for reshoring? a) low costs in the target country b) complicated logistics in the target country c) excellent customer service in the target country d) low shipping costs in the target country e) low labour costs in the target country Answer: b Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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46) Techni Asset, a software corporation based in Canada, used to operate from several countries with lower labour costs. When the firm started to incur high costs of production in the foreign countries and received complaints and criticisms about the loss of local jobs, the firm decided to return to its home country. This change made to the firm’s global strategy is an example of ___. a) offshoring b) outsourcing c) nationalization d) privatization e) reshoring Answer: e Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 47) The patent attorney of Rayon Inc. was accused of stealing the organization’s invention. This scenario is an example of the ______conditions of the general environment. a) natural b) legal-political c) technological d) socio-cultural e) educational Answer: b Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Application Difficulty: Easy AACSB: Reflective Thinking 48) The government of Floraine imposes certain rules and regulations regarding the interest rates and other transactions for its financial institutions. This is an example of the ___ conditions of the general environment. a) natural b) technological c) socio-cultural d) legal-political Test Bank

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e) educational Answer: d Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Application Difficulty: Easy AACSB: Reflective Thinking 49) Which of the following examples illustrates the legal-political conditions in the general environment? a) bureaucratic decisions made in a nation b) financial market situation existing in a nation c) health and nutritional values of a nation d) information technology systems or infrastructure of a nation e) population demographics of a nation Answer: a Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 50) Crayons Inc., a media corporation headquartered in Toronto, has its operations across different nations. The activities of the firm are affected by the government policies and the ideologies of the legislative institutions existing in the host countries. Which of the following factors are affecting the firm’s operations? a) economic conditions b) socio-cultural conditions c) legal-political conditions d) technological conditions e) natural environment conditions Answer: c Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Application Difficulty: Medium Test Bank

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AACSB: Reflective Thinking 51) Which of the following is a part of the socio-cultural conditions in the general environment? a) inflation b) financial markets c) government policies d) intellectual properties e) demographics Answer: e Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 52) Diversity issues relating to educational opportunity, access to technology, housing options, and so on are parts of the ___ conditions in the general environment. a) economic b) legal c) technological d) socio-cultural e) political Answer: d Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 53) The managers of Vortex Inc. stress the importance of team norms, business ethics, and respect for human rights in the organization. This implies that the organization is working on the ___ conditions in the organizational environment. a) economic b) legal c) socio-cultural d) technological e) political Test Bank

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Answer: c Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 54) The marketing executives of Exphyne Inc. observe the demographics of the population at its different areas of operation. They work toward satisfying the needs and preferences of individuals belonging to various demographic groups. The factors that they analyze include age, ethnicity, income levels, and gender. This implies that Exphyne Inc. focuses on the ___ conditions in the general environment to make sales. a) technological b) legal c) philosophical d) socio-cultural e) political Answer: d Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 55) Which of the following aspects of demographics comprises of generational cohorts? a) income levels b) race c) age d) ethnicity e) gender Answer: c Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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56) ___ are “digital immigrants” who have had to learn about technology as it became available. a) Baby Boomers b) Gen Ys c) Gen Xs d) Millennials e) Gen Zs Answer: a Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 57) Which of the following are characterized by ease of multitasking, desire for immediate gratification, continuous contact with others, and less concern with knowing things than with knowing where to find out about things? a) Millennials b) Gen Xs c) Baby Busters d) Golden Boomers e) Baby Boomers Answer: a Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 58) Vane has the ability to multitask and maintain continuous contact with others. She believes in receiving immediate gratification. This implies that Vane is most likely a ___. a) Baby Boomer b) Millennial c) Gen X d) Baby Buster e) Golden Boomer Test Bank

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Answer: b Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 59) Finheat, a financial services organization, advertises its financial products and instruments on social networking sites and other websites. This implies that the firm is utilizing the ___ conditions in the general environment. a) natural b) legal c) technological d) socio-cultural e) political Answer: c Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 60) Jamie has a diverse collection of the latest video games. He also owns a mobile phone with a number of applications. His school is well equipped with Internet facilities. Which of the following generational cohorts does Jamie most likely belong to? a) Baby Boomer generation b) Gen X generation c) Baby Buster generation d) Millennial generation e) Golden Boomer generation Answer: d Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking Test Bank

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61) InGen Inc. implements the use of social media, digital sharing of presentations, data, files, and holds regular virtual meetings. This indicates that the firm has reasonably well-equipped ___ conditions in the organizational environment. a) natural b) technological c) legal d) socio-cultural e) political Answer: b Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 62) Which of the following examples illustrates the technological conditions in the general environment? a) features and applications available on an individual’s phone b) income levels of an individual c) housing options for an individual d) job options for an individual e) educational opportunities for an individual Answer: a Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 63) Which of the following examples would qualify as a potential problem of the existing everpresent technological condition? a) an organization advertising its products on social networking websites b) an organization’s employees regularly engaging in online pastimes during work hours c) an organization conducting regular virtual meetings with its clients d) a musician promoting his debut musical project through media websites Test Bank

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e) an organization implementing digital sharing of files, presentations, and projects Answer: b Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 64) A sustainable business a) is involved in risk taking from position of performance difficulty. b) has lack of information regarding what exists in the business environment and what developments may occur. c) creates products or services that become so widely used that they largely replace prior practices and competitors. d) meets the needs of customers as well as protects the natural environment for future generations. e) is an organization motivated by desperation to escape existing difficulties. Answer: d Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 65) The specific environment can be described in terms of which of the following? a) stakeholders b) persons, groups, or institutions that are affected by the organization’s performance c) the task environment d) all of the above e) none of the above Answer: d Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Hard AACSB: Analytic Test Bank

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66) Which of the following statements accurately describe the concept of environmental uncertainty? a) Environmental uncertainty consists of two components – complexity of the environment and rate of change in the environment. b) High environmental uncertainty occurs when the rate of change in the environment is high and the complexity of the environment is low. c) Low environmental uncertainty occurs when the rate of change in the environment is low and the complexity of the environment is high. d) All of the above statements accurately describe environmental uncertainty. e) None of the above statements accurately describe environmental uncertainty. Answer: a Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 67) All of the following are true statements regarding environmental uncertainty except a) there is a lack of complete information concerning what developments will occur in the external environment. b) most organizations encounter relatively little uncertainty in their environments. c) complexity refers to the number of different factors that exist in the environment. d) the rate of change in factors in the environment is one component of environmental uncertainty. e) environmental uncertainty makes it difficult to understand potential implications for the organization. Answer: b Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 68) ___ refers to the extent to which the organization is developing value for and satisfying the needs of important strategic constituencies. Test Bank

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a) Constituency development. b) Organization development. c) Value creation. d) Strategic needs management. e) Constituency creation. Answer: c Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 69) ___ means that there is a lack of complete information regarding what exists and what developments may occur in the external environment. a) Environmental complexity b) Environmental dynamism c) Environmental change d) Environmental uncertainty e) Environmental information Answer: d Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 70) In a country, the Web access through mobile devices doubled each year since 2009 and during 2010, on average, 2 million people used Facebook each day. Which of the following environmental condition does this information portray? a) economic condition b) legal-political condition c) natural condition d) socio-cultural condition e) technological condition Answer: e Learning Objective 4.1: Summarize key trends in the external environment of organizations. Test Bank

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Section Reference 1: The External Environment Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 71) The government of Drewtopia introduced a new program whereby all its business enterprises will adopt “green values,” and minimize and recycle its waste disposal. Which of the following conditions has the government taken care of by this decision? a) economic b) socio-cultural c) political d) natural e) technological Answer: d Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 72) The ___ environment includes the people and groups with whom an organization interacts. a) general b) natural c) specific d) macro e) external Answer: c Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 73) Stakeholders a) are described as employees who move to foreign locations to reduce costs to the organization. Test Bank

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b) are individuals who propose laws and regulations, government policies, and the philosophy and objectives of political parties. c) are owners of organizations who take risks motivated by desperation to get out of bad situations. d) refer to the employees who return from different host countries and help in establishing new domestic operations. e) are the persons, groups, and institutions directly affected by an organization. Answer: e Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 74) Which of the following is true of stakeholders? a) Members of the specific or task environment are often described as stakeholders. b) Stakeholders are influenced by their stakes, but they are not allowed to influence it in return. c) An organization’s performance does not affect the stakeholders. d) All stakeholders belong to the generational cohort of Baby Boomers. e) All stakeholders are “digital natives” who grew up in technology-enriched homes, schools, and friendship environments. Answer: a Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 75) Which of the following falls on the positive side of risk-taking behaviour of organizations? a) risk taking from position of performance difficulty b) risk taking motivated by desperation to get out of bad situation c) risk taking from hard time dealing with problems without losing focus d) risk taking with the ability to deal with problems as they arise e) risk taking from little staying power answer: d Test Bank

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Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 76) Which of the following is true of value creation by businesses? a) Businesses create value for customers through realized profits and losses. b) Businesses create value for employees by wages earned and job satisfaction. c) Businesses create value for competitors through the benefits of long-term business relationships. d) Businesses create value for suppliers by the citizenship they display. e) Businesses create value for local communities by stimulating markets and innovations that didn’t exist before. Answer: b Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 77) Four Rollers Corp., an automobile company, benefits by spending less than its competitors on labour, operations, promotions, and features offered. This enables the firm to charge relatively lower prices on its goods from its customers. Which of the following is a competitive advantage of the firm? a) high quality b) low costs c) flexibility d) delivery e) adaptability Answer: b Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Application Test Bank

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Difficulty: Easy AACSB: Reflective Thinking 78) Which of the following examples illustrates a firm that has achieved competitive advantage through costs? a) a firm that uses patented technology to deliver goods and services to customers on time b) a firm’s ability to adjust and adapt to different demographic segments and satisfy their needs c) a firm that invests only a small amount on promotion and maximizes profits by charging low prices d) a firm’s technology that creates high quality products and services e) a firm that specializes in developing timely new products answer: c Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 79) Linkage Communications produces mobile phones, smart phones, and laptops. In terms of longevity and user-friendliness, the firm’s products are rated the best. Additionally, it offers applications and features with the latest technology. Which of the following has enabled Linkage Communications to achieve a competitive advantage over its competitors? a) quality b) costs c) flexibility d) delivery e) adaptability answer: a Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 80) Which of the following examples illustrates a firm that has achieved competitive advantage Test Bank

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through technology? a) a firm that invests less on its production processes b) a firm that focuses on producing zero defect products c) a firm that uses patented expertise in developing a nuanced product d) a firm that spends very less on advertising and promotional costs e) a firm that caters to only a selected few customer needs answer: b Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 81) Which of the following examples displays a firm with a competitive advantage achieved through quality? a) an organization that is famous for its durable products b) a corporation that reduces its expenses by finding new production processes c) a firm that delivers goods and services faster than its competitors d) an organization that gains profits by charging less prices e) a company that tailors its goods and services to fit consumer needs and preferences answer: a Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 82) The Oomph Factor, an online retail firm, owns a patented technology that ensures that its goods and services reach customers on time. The firm also has the ability to develop timely new products. The firm has gained competitive advantage through ___. a) quality b) costs c) flexibility d) delivery Test Bank

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e) adaptability answer: d Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 83) Which of the following illustrates a firm that has achieved competitive advantage through delivery? a) a firm that uses technology to produce durable products b) a firm that develops timely new products c) a firm that has the flexibility to operate successfully in any business environment d) a firm that makes small financial investments at the time of production e) a firm that can adapt and change according to the needs of different customers answer: b Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 84) Which of the following illustrates a firm that has achieved competitive advantage through flexibility? a) a firm that creates customized products based on each of its customer’s preferences b) a firm that produces goods by maintaining high quality standards c) a firm that ensures speedy delivery of goods compared to its competitors d) a firm that develops products with unique features that are not made available by any of its competitors e) a firm that develops timely new products answer: a Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Test Bank

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Section Reference 4.2: Environment and Value Creation Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 85) Competitive advantage can be achieved through ___ by finding ways and using technology to adjust and tailor products and services to fit customer needs in ways that are difficult for one’s competitor to match. a) quality b) costs c) flexibility d) delivery e) durability Answer: c Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 86) Which of the following is true of environmental uncertainty? a) The less uncertain the environment, the harder it is to analyze environmental conditions and predict the future state of affairs. b) The least challenging situation is an environment that is both complex and dynamic. c) High-uncertainty environments require less flexibility in organizational designs and work practices as different circumstances arise every now and then. d) High-uncertainty environments require people to make decisions gradually since new circumstances arise constantly. e) The uncertainty of an organization can be analyzed using degree of complexity and rate of change. Answer: e Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic Test Bank

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87) Cufflinks, an outstanding house for tailored suits, has always had satisfied customers owing to their ingenuity in facilitating top fashion trends. It is innovative in adapting to changing vogues and demands of its customers. Through which of the following ways does Cufflinks gain a competitive advantage? a) costs b) flexibility c) delivery d) quantity e) profits answer: b Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 88) The R&D department of Meredith Inc., a tire manufacturer, discovers a new material to be used as an alternative to rubber that brings down the manufacturing costs. This allows the company to offer its products at a price lower than the market price. The newly discovered material is the company’s a) disruptive innovation. b) competitive advantage. c) natural capital. d) environmental capital. e) competitive environment. Answer: b Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 89) Innovation refers to the Test Bank

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a) lack of information regarding what exists in the environment. b) people and groups with whom an organization interacts. c) process of taking a new idea and putting it into practice. d) return of jobs from foreign locations as companies establish new domestic operations. e) things that an organization does extremely well and that gives it an advantage. Answer: c Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

90) Brazen Inc. introduced a new line of deodorized clothes produced with natural ingredients such as flowers and fruits, to reduce the impact of the environmental hazards caused by the production of deodorants. This implies that Brazen Inc. was engaging in ___. a) process innovation b) business model innovation c) product innovation d) skimming e) performance innovation Answer: c Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 91) Which of the following is an example of a product innovation? a) a firm launching a new flavour to its existing range of candies b) a firm allowing customers to mail the desired designs of goods c) a firm introducing a new online shopping model d) a firm introducing new technology to ease the installation process e) a firm changing its line of business from manufacturing automobiles to producing music Answer: a Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Test Bank

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Section Reference 4.3: Environment and Innovation Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 92) Footlore Inc. introduced a sophisticated new range of shoes that prevents any type of injury to the wearer’s feet. This is an example of a a) process innovation. b) product innovation. c) business model innovation. d) social business innovation. e) paradigm innovation. Answer: b Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 93) Discovering a potential product or a way to modify an existing product involves the ___ step of the product development process. a) initial experimentation b) feasibility screening c) idea creation d) feasibility determination e) final application Answer: c Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 94) What is the best way to describe a product that is a disruptive innovation? a) The product offers higher quality at a lower price. b) The product occupies a majority of the market share. Test Bank

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c) The product is incompatible with a previous version of the product. d) The product is so new customers require new behaviours for its use. e) The product makes customers uneasy when it is used. Answer: d Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 95) Apple’s iPod is an example of what type of innovation? a) continuous b) service c) breakthrough d) product e) accidental Answer: a Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Easy AACSB: Reflective Thinking 96) Apple’s iTunes is an example of what type of innovation? a) continuous b) service c) breakthrough d) product e) accidental Answer: c Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Easy AACSB: Reflective Thinking Test Bank

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97) Which of the following forms of innovation focuses on better ways of doing things? a) product innovation b) process innovation c) business model innovation d) social business innovation e) paradigm innovation Answer: b Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 98) ___ is the process of turning new ideas into products or processes that can increase profits through greater sales or reduced costs. a) Product development b) Process value analysis c) Commercializing innovation d) Marketing research e) Supply chain management Answer: c Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Easy AACSB: Reflective Thinking 99) ___ is the stage of the product development process in which ideas are shared with others and prototypes are tested. a) Idea creation b) Initial experimentation c) Feasibility determination d) Feasibility screening e) Final application Answer: b Test Bank

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Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Easy AACSB: Reflective Thinking 100) The ___ step of the product development process involves the commercialization of a new product for sale to customers or clients. a) final application b) initial experimentation c) feasibility determination d) feasibility screening e) idea creation Answer: a Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Easy AACSB: Reflective Thinking 101) Which of the following is an example of a process innovation? a) a firm putting coupons on the Web b) a firm introducing a new social media site c) a firm introducing “ready to assemble” furniture d) a firm converting the movie rental business into a subscription business e) a firm creating the world’s largest online marketplace Answer: c Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 102) Highly innovative organizations have top managers who do all of the following except a) understand the innovation process. Test Bank

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b) tolerate criticism and differences of opinion. c) create conflict to stimulate creativity. d) take all possible steps to keep goals clear. e) maintain the pressure to succeed. Answer: c Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 103) Eureka Electronics Inc. offers computer programs and software programs including software drivers and plug-ins that can be self-installed easily. The firm’s introduction of programs that can be self-installed is an example of ___ innovation. a) product b) process c) business model d) reverse e) social business Answer: b Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 104) Which of the following scenarios best describes a process innovation? a) a firm launching a new car model with basic features and systems b) a restaurant where customers are allowed to order dishes after taking a sample c) a footwear manufacturer introducing a unique range of shoes d) a firm introducing a new software to protect computers from viruses e) a firm changing its line of business from manufacturing eyewear to producing watches Answer: b Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Test Bank

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Difficulty: Medium AACSB: Reflective Thinking 105) A business model innovation results in a) new ways for firms to make money. b) better ways of doing things. c) introduction of new or improved goods. d) the creation of new services. e) environmental uncertainty. Answer: a Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 106) Celluloid Inc., a photography firm, entered into other activities such as cinematography, advertisement creations, and short-film making, to make more money for the firm. This implies that Celluloid Inc. had engaged in a ___ innovation. a) product b) process c) business model d) reverse e) pricing Answer: c Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 107) Which of the following is an example of a business model innovation? a) a firm introducing a new model of its smartphone b) a firm introducing “ready to install” software c) a firm introducing a range of meals that can be cooked instantly d) a firm introducing its new range of accessories to go with its clothesline Test Bank

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e) a firm introducing a new social networking website to connect with its customers Answer: d Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 108) Garsynth Corporation specializes in preparing eco-friendly products out of solid waste, old newspapers, and waste plastic. The firm employs individuals belonging to the weaker economic sections of the city. The company has engaged in ___ innovation. a) product b) red ocean c) reverse d) breakthrough e) social business Answer: e Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 109) Which of the following is an example of a social business innovation? a) an organization working on maintaining cleanliness in the cities b) a firm specializing in producing customized bags based on preferences of the purchasers c) a firm introducing a range of meals that can be cooked instantly d) a firm removing the use of intermediaries to deal with customers directly e) a record label using an exclusive process to record music albums Answer: a Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking Test Bank

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110) Microcredit lending is an example of ___ innovation. a) reverse b) social business c) disruptive d) environmental e) green Answer: b Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 111) Which of the following steps in the innovation process involves thinking about new possibilities? a) imagining b) experimenting c) assessing d) designing e) scaling Answer: a Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 112) Harry Smith of Honeybee Haven needs to expand the production of honey to meet new contract obligations. Harry has spent some time now in thinking up new ways to modify the beehives to increase they bees’ production of high-quality honey. What is the next step? a) imagining b) experimenting c) assessing d) designing e) scaling Test Bank

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Answer: d Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Medium AACSB: Reflective Thinking 113) A group of employees of Smithson Inc., a software firm, were analyzing the practicality and feasibility of a software program by releasing a few samples of the program on the Internet for a month. Which of the following steps of the innovation process were the employees engaging themselves in? a) imagining b) experimenting c) assessing d) designing e) scaling Answer: b Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 114) Red Sun Inc., an automobile manufacturer, developed a new car model. The firm worked on identifying the strengths and weaknesses of the new model, the costs that would be incurred in its manufacture, and its target markets. Which of the following steps of the innovation process was the firm involved in? a) imagining b) experimenting c) assessing d) designing e) scaling Answer: c Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Hard Test Bank

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AACSB: Reflective Thinking 115) Which of the following steps in the innovation process consists of implementing what has been learned and commercializing new products or services? a) scaling b) experimenting c) assessing d) designing e) imagining Answer: a Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 116) Animo Inc., a firm that specializes in animation, released its latest patented animation software in the market to increase its profits by improving sales. Which of the following steps of the innovation process was executed by the firm? a) imagining b) experimenting c) assessing d) designing e) scaling Answer: e Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 117) Which of the following is the final step in the “wheel of innovation?” a) imagining b) experimenting c) assessing d) designing Test Bank

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e) scaling Answer: e Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 118) Which of the following is true of reverse innovation? a) It taps the potential for innovation existing at higher organizational levels. b) It emphasizes recognition of innovations developed in well-established markets. c) It recognizes innovations existing in diverse settings or locations. d) It involves a lack of complete information regarding what exists in the environment. e) It focuses on identifying strengths and weaknesses, and potential costs and benefits. Answer: c Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 119) Which of the following concepts got its start as global firms moved away from viewing innovation as a “home market” activity that creates new products and services for distribution to “foreign markets”? a) disruptive innovation b) product innovation c) reverse innovation d) incremental innovation e) social business innovation Answer: c Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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120) ___ innovation pulls new products and services from settings, where they are often created under-pricing constraints, and pushes them into use elsewhere. a) Disruptive b) Reverse c) Luxurious d) Product e) Business model Answer b Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 121) Which of the following creates products or services that become so widely used that they largely replace prior practices and competitors? a) disruptive innovation b) sustainability c) sustaining innovation d) transformational innovation e) incremental change Answer a Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 122) Rhapsody Inc. created a new line of cameras that work on solar energy. These solar cameras reduced the demand for digital cameras and gradually replaced the use of digital cameras and ended competition. Which of the following is prominent in this instance? a) positioning innovation b) incremental change c) process improvement d) disruptive innovation e) process innovation Test Bank

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Answer d Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 123) Comtrot, a mobile application developer, outsourced the development of an application to a cheaper location in another country. The application would notify users about their blood pressures twice a week. The final product was marketed in the country of Comtrot’s origin. Which of the following does this situation demonstrate? a) disruptive innovation b) sustainability c) reverse innovation d) social business innovation e) process innovation Answer c Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 124) Pandemonium, a software enterprise, introduced a new gaming console in a small way with stimulating features. In six months its popularity and its sales increased extensively. The major players in the business were overshadowed by this new gaming console. Which of the following best describes this situation? a) environmental capital b) sustainable development c) sustainable innovation d) reverse innovation e) disruptive innovation Answer e Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Test Bank

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Difficulty: Hard AACSB: Reflective Thinking 125) Fredrick comes up with an innovative range of watches. He has built a prototype and has given it to his friends for checking its feasibility and examining its practical use. According to the Hamel’s “wheel of innovation,” which of the following steps has Fredrick undertaken? a) assessment b) scaling c) imagining d) experimenting e) designing Answer e Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 126) Lewang has decided to launch an innovative product that would help the blind access their emails through a voice application. He has finished designing the product and accessing the costs and its market applicability. Keeping in mind Hamel’s “wheel of innovation,” what is the next step that Lewang should ideally undertake? a) He should check for its sustainability. b) He should initiate the process of scaling. c) He should implement reverse innovation. d) He should increase the price of the product. e) He should access the rate of change in environment. Answer b Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 127) The commitment to protect the rights of present and future generations as co-stakeholders of present-day natural resources is termed as ___. Test Bank

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a) disruptive innovation b) sustainability c) environmental uncertainty d) reverse innovation e) scaling Answer: b Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 128) ___ meets the needs of the present generation without compromising the ability of future generations to meet their needs. a) Cultural diversity b) Sustainable development c) Environmental protection d) ISO 9000 e) Intergenerational collaboration Answer: b Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 129) Sustainable development has become a top priority for which major organization? a) World Trade Organization b) World Health Organization c) International Standards Organization d) The United Nations e) none of the above Answer: c Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Knowledge Test Bank

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Difficulty: Hard AACSB: Analytic 130) Which of the following is true of sustainability? a) It is a lack of information regarding what exists in the environment and what developments may occur. b) It is a system by which an organization is directed or controlled. c) It refers to the relationship between an organization’s management, its employees, its stakeholders, and the government. d) It is a commitment to live and work in ways that protect the rights of both the present and the future generations. e) It does not apply to the non-living things present on earth. Answer: d Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 131) The process of using environmental resources to support societal needs today while also preserving and protecting them for future generations is referred to as ___. a) triple bottom line experiment b) global warming c) sustainable development d) scaling e) greenhouse effect Answer: c Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 132) The supply of natural resources which sustain life and produce goods and services for society is referred to as ___. a) global warming Test Bank

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b) environmental capital c) green innovation d) triple bottom line e) greenhouse effect Answer: b Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 133) Which of the following holds true regarding sustainable businesses? a) A sustainable business operates with nature by exploiting it. b) A sustainable business strives for a win-lose outcome where the environment gains and the organization loses. c) A sustainable business creates products or services that become so widely used that they result in the exhaustion of the resources. d) A sustainable business can result in an environmental uncertainty. e) A sustainable business works by meeting the needs of customers while advancing the wellbeing of the natural environment. Answer: e Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 134) In a press release, a major fast food chain issues the statement: “Since 2007, we have reduced our reliance on paper products by 30%.” This is an example of a) ethical procedures. b) global issues. c) corporate social initiative. d) social performance. e) a sustainable business model. Answer: e Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Test Bank

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Section Reference 4.4: Environment and Sustainability Bloom’s: Application Difficulty: Easy AACSB: Analytic 135) Which of the following would qualify as one of the main goals of a sustainable business? a) carbon reduction b) profit maximization c) global warming d) scaling e) greenhouse effect Answer: a Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 136) Black Corporation focuses on providing maximum support to its employees as it considers them its most important organizational stakeholders. The firm has a system of flexible working hours to reduce the stress of employees and zero-day notice periods. It permits employees to work from home through its virtual network. From this information, it can be inferred that Black Corporation a) has a high rate of sustainable innovation. b) focuses on the differences of generational cohorts. c) highlights the importance of the triple bottom line. d) has a high rate of human sustainability. e) focuses on the ideals of environmental capital. Answer: d Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 137) Arguments that corporations should engage in socially responsible behaviour include all of the following except Test Bank

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a) social responsibility decreases the need for restrictive government regulation. b) businesses have the resources and obligation to act in socially responsible ways. c) socially responsible behaviour improves the public image of business. d) pursuing socially responsible goals may dilute the purpose of the business. e) long-run profits for the business may improve or even be dependent on its degree of social responsibility. Answer: d Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 138) Food Chow, a grocery retail business, stopped the use of plastic bags and encouraged the use of reusable bags. This indicates that the firm is practicing ___. a) sustainable business b) triple bottom line c) scaffolding d) competitive advantage e) reverse innovation Answer: a Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 139) Which of the following is an example of human sustainability? a) Glenneth & Co., a pharmaceutical company, recruits employees on a temporary basis. b) Margaret works every day for eleven hours as a receptionist in a law firm. c) Carmel Works, a software company, provides ample health insurance coverage for its employees as well as their dependents. d) Preacher & Abel, a cosmetic company, cut down on the wages of its employees to reduce cost of production. e) Brent Inc. takes the initiative of planting trees across the town in which it operates. Answer: c Test Bank

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Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 140) The management challenge in contemporary organizations is best summarized in which of the following statements? a) Managers must simultaneously maintain high-performance standards as well as ethical and socially responsible operations. b) Every manager must strive to achieve organizational goals even if it compromises his/her values. c) Economic performance is the most important objective that managers must achieve. d) Maintaining ethical standards and promoting social responsibility are the most important objectives managers must achieve. e) Management in today’s business environment should be approached in essentially the same way that it was in the past. Answer: a Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 141) Harry Smith has been a beekeeper for almost 40 years, and was trained by his father, who was trained by his father before him. Harry does not work with gloves nor does he wear protective equipment, when working with his “girls” as he calls them. And while he does get stung once or twice each season, he is fully aware of what conditions prompted such a response from the bees. Catching and/or removing swarms of bees is part of his business. Often, he will offer this service for free, relocating the bees to a new hive within his own bee yard, or giving the swarm to a new beekeeper just starting out. This “risky” business is on the: a) Positive side of risk-taking behaviour b) Negative side of risk-taking behaviour Answer: a Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Comprehension Test Bank

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Difficulty: Medium AACSB: Analytic 142) Harry Smith of Honeybee Haven has been approached by a local grocery chain owner who has approached Harry with a proposal to carry Honeybee Haven’s honey in its stores. Accepting this proposal would require Harry to increase his operation tenfold to produce enough honey to service both the grocery chain and his existing clients. Honey production is dependent on both the number of bees and number of hives, but also the weather and type of crops grown within a ten-mile radius of the bee-yard. This situation represents one of a) High uncertainty b) Environmental uncertainty c) High risk d) High complexity e) Low complexity Answer: b Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 143) Harry Smith operations Honeybee Haven as part of his farming operation. He has recently developed a new type of beehive that will increase honey production tenfold. This is an example of competitive advantage achieved through a) costs b) quality c) delivery d) flexibility e) innovation answer: d Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Application Difficulty: Hard AACSB: Analytic 144) Harry Smith of Honeybee Haven has used the traditional Langstroth frame in his beehives Test Bank

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for decades. He has recently been exploring a new type of frame on the market that permits easier extraction of honey from the hives without removing the frame itself. This is an example of: a. Process innovation b. Product innovation c. Business model innovation d. All of the above Answer c Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Hard AACSB: Reflective Thinking 145) Honeybee Haven is a relatively small operation. Harry Smith is a sole proprietor and employs two beekeeping apprentices to help out during the busy summer months. He keeps beehives at the farm, and ‘rents’ out hives to local area farmers to pollinate certain crops. Harry supplies honey to local shops and sells directly to the public through his website. He also teaches beekeeping at the local library as a volunteer. These groups, organizations and people are: a) Investors b) Employees c) Interested parties d) Stakeholders e) benefactors answer: d Learning Objective 4.2: Discuss value creation and competitive advantage in complex environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Application Difficulty: Medium AACSB: Analytic

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146) Harry Smith employs two assistant beekeepers at Honeybee Haven. Harry provides beekeeper suits, netted head gear, long gloves and all other equipment necessary for his employees to safely and efficiently monitor the beehives. In winter months, after the bees are secured for the cold weather, Harry has his employees work on repair and refit of the wooden hives and marketing activities in preparation for the next season. Honeybee Haven is demonstrating concern for: a) Human sustainability b) Environmental sustainability c) Profit d) Competitive advantage e) Climate change Answer: a Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority. Section Reference 4.4: Environment and Sustainability. Bloom’s: Analysis Difficulty: Medium AACSB: Reflective Thinking 147) Harry Smith owner and operator of Honeybee Haven is a third-generation beekeeper. His daughter, Henrietta has just finished her undergraduate degree in business and has returned home from school. Henrietta has grown up in the bee yard and is a beekeeper herself. At school she has learned about how business and the natural environment must co-exist. She is trying now to influence her father into considering expansion of the beekeeping operation to included education, marketing and speaking engagements to champion the cause of the honeybee. These activities are examples of: a) Triple bottom line b) Profit, people and plant c) Sustainable business strategy d) Competitive advantage e) Green innovation Answer: c Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority. Section Reference 4.4: Environment and Sustainability. Bloom’s: Application Difficulty: Medium AACSB: Analytic 148) Honeybee Haven takes particular care to ensure the health and safety of its employees by ensuring that they have the proper equipment, as well as caring for the health of the bees by ensuring hives are inspected by government inspectors. This in turn assures that honey is of the Test Bank

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highest quality resulting in increased sales and profits. Honeybee Haven is following a model referred to as: a. Green b. Triple bottom line c. Sustainable d. Innovative Answer: b Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority. Section Reference 4.4: Environment and Sustainability. Bloom’s: Application Difficulty: Medium AACSB: Analytic

Question type: Short answer 149) Describe the most important aspects of each dynamic force that surrounds and influences the general environment of an organization. Answer: Things like the overall health of the economy in terms of financial markets, inflation, income levels, and job outlook are important economic conditions in the general environment. Legal-political conditions in the general environment are represented by existing and proposed laws and regulations, government policies, and the philosophy and objectives of political parties. Diversity issues relating to educational opportunity, access to technology, housing options, job options, are part of the socio-cultural conditions in the general environment. The socio-cultural conditions also include norms, customs, and demographics of a society or region, as well as social values on such matters as ethics, human rights, gender roles, and life styles. The ongoing wave of technological conditions in the workplace ranges from new product development and advertising to employee networking and data sharing to virtual meetings and always-available chats. Natural environmental conditions include the abundance of natural resources that the environment provides for organizations and society, and the need to protect the availability of those resources for the future. Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 150) Describe the primary elements of the general environment and of the specific environment. Answer: The general environment consists of all the background conditions in the external Test Bank

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environment of an organization. The primary elements of the general environment include the following: Economic conditions –– health of the economy in terms of inflation, income levels, gross domestic product, unemployment, and job outlook. Social-cultural conditions –– norms, customs, and values on such matters as human rights; trends in education and related social institutions; as well as demographic patterns in society. Legal-political conditions –– prevailing philosophy and objectives of the political party or parties running the government, as well as laws and government regulations. Technological conditions –– development and availability of technology, including scientific advancements. Natural environment conditions –– nature and conditions of the natural environment, including levels public concern expressed through environmentalism. The specific environment (or task environment) consists of the actual organizations, groups, and persons with whom an organization interacts and conducts business. The primary elements of the specific environment are the organization’s important stakeholders, which include the following: Customers ––consumer or client groups, individuals, and organizations that purchase the organization’s goods and/or use its services. Suppliers ––providers of the human, information, and financial resources and raw materials needed for the organization’s operations. Competitors –– organizations that offer the same or similar goods and services to the same consumer or client groups. Regulators –– government agencies and representatives, at the local, state, and national levels, that enforce laws and regulations affecting the organization’s operations. Investors/owners ¾ individuals, groups, and other organizations/institutions that hold an equity interest in the business. Learning Objective 4.1: Summarize key trends in the external environment of organizations. Section Reference 1: The External Environment Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 151) What are the dimensions of environmental uncertainty? Answer: The first dimension of environmental uncertainty is the degree of complexity, or the number of different factors in the environment. An environment is typically classified as relatively simple or complex. The second is the rate of change in and among these factors. An environment is typically classified as stable or dynamic. The most challenging and uncertain situation is an environment that is both complex and dynamic. High-uncertainty environments require flexibility and adaptability in organizational designs and work practices, as well as an ability of decision makers to respond quickly as new circumstances arise and new information becomes available. Learning Objective 4.2: Discuss value creation and competitive advantage in complex Test Bank

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environments. Section Reference 4.2: Environment and Value Creation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 152) Why is innovation important for organizational survival and success in a turbulent environment? Answer: Innovation is a primary source of competitive advantage in the modern business world. Organizations that survive and prosper the best are learning organizations –– ones that mobilize people, values, and systems to achieve continuous change and performance improvements driven by the lessons of experience. Tom Peters, for instance, argues that people and organizations should be led toward innovation as the primary source of competitive advantage. Organizations and their managers must continually adapt to new situations if they are to survive and prosper over the long run. Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Application Difficulty: Medium AACSB: Analytic 153) What are the three types of innovation? What do they result in? Answer: (1) Product innovations result in the creation of new or improved goods and services. (2) Process innovations result in better ways of doing things. (3) Business model innovations result in new ways of making money for the firm. Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 154) Describe the five steps of the “wheel of innovation.” Answer: Gary Hamel describes the five steps in the “wheel of innovation.” Step 1 is imagining— thinking about new possibilities. Step 2 is designing—building initial models, prototypes, or samples. Step 3 is experimenting—examining practicality and financial value through experiments and feasibility studies. Step 4 is assessing—identifying strengths and weaknesses, potential costs and benefits, and potential markets or applications. Step 5 is scaling— implementing what has been learned and commercializing new products or services. Test Bank

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Learning Objective 4.3: Describe how organizations embrace technology and pursue innovation. Section Reference 4.3: Environment and Innovation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 155) How do global corporations view sustainable development and provide an example of a global corporation fulfilling its commitments to sustainable development? Answer: Sustainable development is generally agreed to mean ‘meeting the needs of the present without compromising the ability of future generations to meet their own needs.’ Corporate responsibility standards, norms, principles and guidelines aim to provide generally accepted reference points for improving aspects of social and environmental performance. Although mostly voluntary, some are emerging as de facto industry standards that provide the desired legitimacy, consistency and comparability required by business and its stakeholders. For a firm to fulfill a commitment to sustainable development, its executives must lead in ways that demonstrate stewardship in protecting the natural environment and preserving its resources for the future. Many international standards and networks started as attempts to help guide organizations on how to improve the consistency of their products, reduce their impact on the environment (ISO 14000) or to generally improve their environmental and social management. These programs are voluntary and involve a range of activities, from a simple commitment to investigate sustainability issues to the adherence to strict protocols for environmental and social standards. Sustainability is now a regular focus at the annual World Economic Forum at Davos, where many of the world’s most powerful business and political leaders gather annually to reflect on the key challenges of the year ahead. General Electric (GE) is an example of a company fulfilling its commitments on sustainable development. In 2010, GE earned the top rank in Global 100 list of the most sustainable large corporations in the world at the World Economic Forum in Davos. This was due to its industry leading ratio of sales to waste, strong board gender diversity, and a doubling of its carbon productivity from 2006 to 2008, reducing its total carbon emissions while increasing sales from $150 billion to $181 billion. Philips Electronics is another fine example of a company that appears to have an advanced-stage sustainability strategy. Philips Electronics has developed special medical vans that allow urban doctors to reach remote villages to diagnose and treat patients via satellite. It has also developed low-cost water-purification technology and a smokeless wood-burning stove that could reduce the 1.6 million deaths annually worldwide from pulmonary diseases linked to cooking smoke. Philips is also abandoning its leading incandescent lighting business in favour of more energyefficient compact fluorescent, and eventually LED lighting. Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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156) What is corporate social responsibility? In your opinion, should businesses be responsible for human sustainability in their management practices? Support your answer with appropriate reasons. Answer: Corporate social responsibility looks at ethical behaviour from the organizational level. Corporate social responsibility is an obligation of the organization to act in ways that serve both its own interests and the interests of its many external stakeholders¾those persons, groups, and other organizations directly affected by the behaviour of the organization and who hold a stake in its performance. In the 21st century economy, it is hard to argue against corporate social responsibility. One way to approach this is by exploring the linkage between organizations’ corporate social responsibility and their financial performance. In the short term, financial success might be achieved by ignoring social responsibility. In the long term, however, proper attention must be given to social responsibility in order for the company to survive and prosper. Indeed, in today’s world, the public at large expects businesses and other organizations to act with genuine social responsibility. Additionally, increasing empirical evidence indicates that high performance in social responsibility can be associated with strong financial performance and, at worst, has no adverse financial impact. Moreover, recent evidence suggests the existence of a virtuous circle in which corporate social responsibility leads to improved financial performance and this, in turn, leads to additional socially responsible actions. Another approach for supporting the contention that businesses should be socially responsible draws upon the four criteria for evaluating corporate social performance. These criteria, which can be arranged in a hierarchy of impact, are the following: - the organization’s economic responsibility, which is met when it earns a profit through the provision of goods and services desired by customers. - the organization’s legal responsibility, which is fulfilled when it operates within the law and according to the requirements of various external regulations. - the organization’s ethical responsibility, which is met when its actions voluntarily conform to both legal expectations and the broader values and moral expectations of society. - the organization’s discretionary responsibility, which involves the organization’s voluntary movement beyond basic economic, legal, and ethical expectations to provide leadership in advancing the well-being of individuals, communities, and society as a whole. The argument can be made that businesses are more likely to survive and succeed over the long term when they fulfill a responsibility that has greater impact. Thus, a higher probability of survival and success would occur by fulfilling the legal responsibility than by just fulfilling the economic responsibility. Likewise, fulfilling the ethical responsibility likely produces still further increases in the probability of business success and survival. Fulfilling the discretionary responsibility should provide a business with the greatest chance of survival and success. Learning Objective 4.4: Explain the challenges of sustainability as an environmental priority Section Reference 4.4: Environment and Sustainability Bloom’s: Application Difficulty: Hard Test Bank

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AACSB: Analytic

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CHAPTER 5 GLOBAL MANAGEMENT AND CULTURAL DIVERSITY Question type: True/False 1) The growing interdependence among elements of the global economy is known as diversification. Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 2) Global managers must keep informed about international developments and be able to understand and relate to people with diverse cultural backgrounds. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 3) In World 3.0, local needs and priorities are largely ignored compared to the economic gains from global integration. Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 4) Cultural awareness is an important characteristic of a truly global manager. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 5) Sigma Inc. conducts for-profit transactions of goods and services across national boundaries. Sigma Inc. is an example of an international business. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 6) Businesses expand their operations to the international marketplace in order to increase profits and gain access to customers, suppliers, capital, and labour. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 7) A benefit to an organization going global is economic development of the host economy. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and Test Bank

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organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 8) A common first step into international business is global sourcing. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 9) Global sourcing, exporting/importing, and licensing/franchising are market-entry strategies for conducting international business. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 10) Most manufacturers today shy away from using global sourcing due to growing concerns over quality issues. Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 11) Reshoring is when an organization moves more manufacturing and jobs to a foreign country. Test Bank

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Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 12) Because the growth of export industries creates jobs, governments willingly give advice and assistance to businesses trying to grow their export capabilities. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 13) Importing enables a company to enter the international market by selling locally-made products in foreign markets. Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 14) A licensing agreement is a form of international business through which a foreign company pays a fee for the rights to manufacture or sell another firm’s products in a specified region. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 15) A franchise is a type of business in which a local firm pays a foreign firm a fee for the rights to make and/or sell the foreign firm’s products. Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 16) Joint ventures and franchising are direct investment strategies for conducting international business. Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 17) Direct investment strategies require major capital commitments and create rights of ownership and control over foreign operations. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 18) Insourcing is the process of creating jobs through foreign direct investment. Answer: True Test Bank

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Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 19) In a joint venture, a foreign firm buys the rights to use another’s name and operating methods in its home country. Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 20) A global strategic alliance can provide new market access and expertise to the local or host partner. Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 21) A foreign direct investment is building, buying, or buying part ownership of a business in another country. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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22) A foreign subsidiary is a foreign operation completely owned and controlled by a local firm. Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 23) A foreign subsidiary represents the lowest level of involvement in international operations. Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 24) Any company doing business abroad is not necessarily required to abide by local laws, but by their home country laws. Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 25) Political risk is the potential loss in value of a foreign investment due to instability and political changes in the host country. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Test Bank

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Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 26) Most global firms use a planning technique called a political risk analysis to forecast political disruptions that can threaten foreign investments. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 27) The World Trade Organization (WTO) is a global institution that was established to promote free trade and open markets around the world. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 28) The World Trade Organization uses tariffs and quotas to protect favoured nations from foreign competition. Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 29) The most favoured nation status allows a nation to choose one other nation to get special Test Bank

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treatment regarding quotas and tariffs. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 30) Tariffs are essentially a tax imposed by governments on imports. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 31) The goal of most tariffs is to protect local firms from foreign competition. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 32) NAFTA was recently replaced with the CUSM agreement. Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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33) Protectionism is used by the members of the European Union to restrict business and government procurement of goods and services from foreign competition. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 34) The United States-Mexico-Canada (USMCA) agreement largely frees the flow of goods and services, workers, and investments between the U.S. and Canada, while limiting them between the United States and Mexico. Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 35) The European Union (EU) is an alliance of European countries that agree to promote mutual economic growth by removing barriers that previously limited cross-border trade and business development. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 36) The European Union is a group of European countries that have common trade and customs laws that facilitate the free flow of workers, good and services, and investments across national boundaries. Test Bank

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Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 37) The expected benefits of a common European currency include higher productivity, lower inflation rates, and steady growth in the member countries. Answer: True Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 38) While part of the European Union, Great Britain adopted the Euro as its official currency. Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Application Difficulty: Medium AACSB: Analytic 39) APEC was established to promote free trade and investment in European countries. Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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40) The Asia Pacific Economic Forum (APEF) consists of 27 countries that agree to support economic growth and development by removing trade barriers. Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 41) SADC links 14 countries of Southeast Asia in trade and economic development efforts. Answer: False Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 42) Global corporations are also referred to as multinational corporations and transnational corporations. Answer: False Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 43) The Domestic Density Index measures a corporation’s percentage of sales, employees, and shareholders that are domestic in the home country. Answer: True Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 44) Executives of transnational corporations view the entire world as their domain for acquiring resources. Answer: True Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 45) Transnational corporations have a domestic perspective yet operate across borders and make multinational decisions. Answer: False Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 46) Transnational corporations seek integration of their operations, operating across borders without home-based prejudices, and making major decisions from a global perspective. Answer: True Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 47) When large multinationals gain disproportionately from the forces of globalization, while smaller firms and countries do not, there occurs what is referred to as a “globalization gap.” Answer: True Test Bank

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Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 48) Technology transfer, capital development, increased employment opportunities, and the development of local resources are benefits that host countries can obtain from relationships with multinational corporations. Answer: True Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 49) Extraction of excessive profits by global corporations is a potential host-country cost. Answer: True Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 50) Host-country complaints about multinational corporations (MNCs) include foreign exchange restrictions, pressure to buy raw materials at inflated prices, failure to protect intellectual property, and failure to uphold contracts. Answer: True Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 51) Multinational corporations are often criticized at home for diverting labour-intensive jobs from the domestic labour force to foreign labour markets, diverting capital investments away Test Bank

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from the domestic market, and encouraging corrupt practices in their foreign subsidiaries. Answer: True Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 52) The Corruption of Foreign Public Officials Act (CFPOA) makes it illegal for Canadian firms and their representatives to engage in corrupt practices overseas. Answer: True Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 53) The use of child labour has been effectively eliminated as an ethical issue that faces managers of MNCs. Answer: False Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 54) Long hours of work and poor working conditions are prevalent in sweatshops. Answer: True Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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55) Culture is the shared set of beliefs, values, and patterns of behaviour common to a group of people. Answer: True Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 56) Culture shock is the tendency to view one’s culture as superior to other cultures. Answer: False Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 57) Culture shock is the confusion or discomfort that someone may experience when in an unfamiliar culture. Answer: False Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 58) Nigel is very proud of his British culture and tends to view other cultures as potentially inferior to his own. This is an example of ethnocentrism. Answer: True Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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59) Ethnocentrism is the confusion or discomfort that someone may experience when in an unfamiliar culture. Answer: False Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 60) Knowledge about foreign cultures is known as cultural intelligence. Answer: True Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 61) Self-awareness and reasonable sensitivity are the basic building blocks of cultural intelligence. Answer: True Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 62) The silent language of culture refers to the common practices and beliefs that are similar across different cultures. Answer: False Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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63) High-context cultures are those in which most communication takes place via the spoken or written word. Low-context cultures are those in much communication takes place through nonverbal and situational cues in addition to the written or spoken word. Answer: False Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 64) In low-context cultures, contracts tend to be viewed as binding agreements; in high-context cultures, written contracts continue to emerge and are modified as the parties work together. Answer: True Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 65) In high-context cultures, what is actually said or written may convey only part, and sometimes a very small part, of the real message. Answer: True Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 66) Most communication in low-context cultures takes place via the written or spoken word. Answer: True Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 67) Members of monochronic cultures are more flexible in their views of time than those of polychronic cultures. Answer: False Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 68) In monochronic cultures time is used to accomplish many different things at once. Answer: False Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 69) In polychronic cultures people tend to do one thing at a time. Answer: True Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 70) Members of polychronic cultures do not approve of coming late or bringing an uninvited guest. Answer: False Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 71) Proxemics is the study of how people use space to communicate. Answer: True Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 72) In terms of proxemics, Japanese culture places little emphasis on how space is used or managed. Answer: True Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 73) Tight cultures are characterized by clear and rigid social norms. Answer: True Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 74) In a tight culture, deviations from norms tend to be tolerated. Answer: False Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 75) The Asian proverb “The nail that sticks up will be hammered down” is indicative of a loose culture. Answer: False Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 76) The importance of Hofstede’s research lies in drawing attention to the impact that differences in national culture have on international management. Answer: True Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 77) The five cultural dimensions identified by Hofstede are power distance, uncertainty avoidance, individualism-collectivism, masculinity-femininity, and time orientation. Answer: True Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 78) The ecological fallacy refers to the belief that a generalized cultural value, such as individualism, does not apply equally to all members of that culture. Answer: False Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Test Bank

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Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 79) The power dimension in Hofstede’s framework is defined as the degree to which a society encourages individual autonomy to make decisions versus depending on others for direction. Answer: False Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 80) People in high-power-distance cultures tend to be tolerant of power and are prone to follow orders. Answer: True Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 81) In Hofstede’s framework for comparing national cultures, individualism-collectivism concerns the degree to which a society values assertiveness and material concerns versus greater concerns for human relationships and feelings. Answer: False Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 82) People in high uncertainty-avoidance cultures prefer structure in their lives. Answer: True Test Bank

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Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 83) The masculinity-femininity dimension of Hofstede’s study of national cultures refers to the degree to which men and women differ in the way they deal with risk, change, and dealing with situational uncertainty. Answer: False Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 84) According to Hofstede’s framework for comparing national cultures, time orientation refers to the degree to which a society focuses on short-term considerations versus planning for the future. Answer: True Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 85) Comparative management demonstrates that management practices are the same across countries and cultures. Answer: False Learning Objective 5.4: Identify the benefits of global learning for management and organizations. Section Reference 5.4: Global Management Learning Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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86) Intercultural competencies are skills that help an individual to function successfully in crosscultural situations. Answer: True Learning Objective 5.4: Identify the benefits of global learning for management and organizations. Section Reference 5.4: Global Management Learning Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 87) Hofstede’s research supports his conclusion that management practices are universal. Answer: True Learning Objective 5.4: Identify the benefits of global learning for management and organizations. Section Reference 5.4: Global Management Learning Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 88) To promote global organizational learning, organizations and their members should be alert, open, inquiring, and cautious regarding the potential merits of management practices found in other countries and how they are affected by cultural variables. Answer: True Learning Objective 5.4: Identify the benefits of global learning for management and organizations. Section Reference 5.4: Global Management Learning Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 89) The three pillars of intercultural competency are perception management, self-management and relationship management. Answer: True Learning Objective 5.4: Identify the benefits of global learning for management and organizations. Test Bank

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Section Reference 5.4: Global Management Learning Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Question type: Multiple Choice 90) The worldwide interdependence of resource supplies, product markets, and business competition characterizes a ___. a) Trans-Asian management b) the European Union c) free trade d) a global economy e) the multinational economy Answer: d Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 91) Globalization is characterized by the ___. a) worldwide dependence of resource supplies, product markets, and business competition b) worldwide independence of resource supplies, product markets, and business competition c) worldwide interdependence of resource supplies, product markets, and business competition d) worldwide distribution of resource supplies, product markets, and business competition e) worldwide exploitation of resource supplies, product markets, and business competition Answer: c Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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92) Which of the following is an effect of globalization? a) reducing cooperation among nations in the global economy b) weakening economic integration across countries c) reducing interdependence among the components in the global economy d) increasing the importance of nation states e) creating a borderless world where economic integration becomes extreme Answer: e Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 93) Balancing global integration gains with local needs and priorities is a challenge for. a) Management b) Multinational corporations c) National leaders d) All of the above e) None of the above Answer: c Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 94) ___ involves managing business and organizations with interests in more than one country. a) Global management b) Territorial management c) Reshoring d) Insourcing e) Economic development Answer: a Test Bank

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Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 95) Which of the following is a common reason for conducting business on an international level? a) reducing imports b) accessing lower-cost labour c) boosting domestic demand d) establishing market monopoly e) promoting ethnocentrism Answer: b Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 96) Which of the following is not a reason a company will go international? a) profits. b) customers. c) suppliers. d) capital. e) weak labour laws. Answer: e Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 97) The global manager is a person who ___. Test Bank

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a) is comfortable speaking several different languages b) is quick to find opportunities in unfamiliar settings c) is able to utilize economic, social, technological, and other forces for the benefit of the organization d) has experienced culture shock e) culturally aware and informed on international issues Answer: e Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 98) Global sourcing, importing/exporting, licensing, and franchising are typical ways to begin a ___. a) global business b) cross-cultural intrapreneurship c) transborder entrepreneurship d) non-government organization (NGO) e) multinational franchise Answer: a Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 99) ___ meets the needs of the present generation without compromising the ability of future generations to meet their needs. a) Cultural diversity b) Sustainable development c) Environmental protection d) ISO 9000 e) Intergenerational collaboration Test Bank

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Answer: b Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 100) The process of purchasing materials, component parts, or business services from different countries around the world is known as ___. a) exporting/importing b) licensing c) global sourcing d) direct investment e) joint venture Answer: c Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 101) The goal of ___ is to take advantage of international wage gaps and the availability of skilled labour by contracting for goods and services in low-cost foreign locations. a) exporting b) importing c) licensing d) global sourcing e) direct investment Answer: d Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Test Bank

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102) Robin is planning to expand the family business internationally and is currently in the process of sourcing materials, manufacturing components, and locating business services around the world. Which of the following best describes Robin’s actions? a) global sourcing b) insourcing c) licensing d) franchising e) outsourcing Answer: a Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Application Difficulty: Medium AACSB: Analytic 103) Which of the following global corporations was downgraded by financial analysts for “moral reasons” once it was determined that a number of its global suppliers were paying low wages to its employees? a) Nike b) Honda c) Cisco d) Apple e) Boeing Answer: d Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 104) Sasha owns and operates Maxim Coffee which grows, harvests and roasts local coffee. Encouraged by the rising sales figures in the domestic market, Sasha decides to sell Maxi Coffee in markets around the world. Which of the following terms is applicable to this business strategy? Test Bank

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a) importing b) insourcing c) franchising d) exporting e) licensing Answer: d Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Application Difficulty: Medium AACSB: Analytic 105) The growth of export industries ___ the exporting country. a) reduces imports in b) provides low-cost labour in c) creates local jobs in d) increases financial resources for e) leads to an excess supply of products in Answer: c Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 106) The importing of products involves ___. a) buying foreign-made products and selling them in domestic markets b) contracting to provide managerial and technical service to a foreign concern c) selling locally-made products in foreign markets d) making a direct investment in a foreign operation e) making products and selling them in local or domestic markets Answer: a Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 107) ___ is a significant pathway to business growth for both individual firms and economies by providing new customer bases and expanded markets for products and services. a) Importing b) Exporting c) Global sourcing d) Licensing e) Franchising Answer: b Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 108) Drew decides to shut down the company’s steel business in Kenya and shift the production back to Canada. The rising labour problems and political disruptions in the host country had led this decision. This method of shifting of business to a native location is called ___. a) joint venture b) foreign subsidiary c) outsourcing d) franchising e) reshoring Answer: e Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Application Difficulty: Medium AACSB: Analytic 109) When Veriol Inc., a pharmaceuticals company, bought the rights to manufacture and sell Nocturne Pharma’s vitamin supplement, Vita Plus, in Mexico, Veriol Inc. engaged in ___. Test Bank

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a) exporting b) global sourcing c) franchising d) insourcing e) licensing Answer: e Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Application Difficulty: Medium AACSB: Analytic 110) In ___, the foreign firm buys the rights to use another’s name and operating methods in its home country. a) insourcing b) franchising c) global sourcing d) exporting e) offshoring Answer: b Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 111) ___ is a form of international business through which a foreign company pays a fee for the rights to manufacture or sell another firm’s products in a specified region. a) A franchise b) A joint venture c) A strategic alliance d) A licensing agreement e) Outsourcing Answer: d Test Bank

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Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 112) A form of licensing in which a foreign firm buys the rights to use another’s name and operating methods in its home country is called ___. a) a licensing agreement b) franchising c) a joint venture d) outsourcing e) a strategic alliance Answer: b Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 113) CNOOC’s one-billion dollar investment in Nexen, a Calgary oil and gas producer, is China’s largest ever successful overseas investment. Chinese state-owned firm CNOOC Ltd. is now officially in control of Nexen Inc. CNOCC’s investment is characterized as a(n) a) joint venture. b) global strategic alliance. c) foreign direct investment. d) sourcing. e) long-term investment. Answer: b Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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114) Bailey is considering forming a strategic alliance with a Swiss-based company that promises to market Bailey’s products in several EU countries in exchange for access to the company’s distribution network in Canada and the United States. This strategy will require less investment than a(n)___ strategy. a) exporting b) licensing c) franchising d) joint venture e) subsidiary Answer: e Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Application Difficulty: Medium AACSB: Analytic 115) A firm that establishes a direct investment in a foreign country through a co-ownership arrangement that pools resources, shares risks, and shares control of business operations is engaging in ___. a) a licensing agreement b) a franchise c) a joint venture d) an equity alliance e) outsourcing Answer: c Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 116) Which of the following is characteristic that experts recommend a firm look for when choosing a joint venture partner? Test Bank

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a) Has a weak local workforce b) Has a solid profit potential c) Has an adequate financial standing d) Has a developing local market e) Is not necessarily familiar with the firm’s major business Answer: b Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 117) Which one of the following forms of international business transactions represent investments in a local operation that is completely owned and controlled by a foreign firm? a) a franchise b) a multinational corporation c) management contracts d) foreign subsidiaries e) joint ventures Answer: d Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 118) Which of the following terms is used to describe local job creation that results from foreign direct investment? a) restructuring b) franchising c) offshoring d) insourcing e) horizontal integration Answer: d Test Bank

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Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 119) McCain Foods Limited employs over 20,000 people at 57 facilities worldwide, generating over $6 billion in sales. These facilities worldwide are considered ___. a) foreign subsidiaries b) regional economic alliances c) global corporations d) national corporations e) regional offices Answer: a Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 120 A(n) ___is one in which a foreign operation is built entirely new or a firm purchases a local operation in its entirety. a) greenfield investment b) franchise c) multinational corporation d) a joint venture e) equity alliance Answer: a Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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121) When Miriam Inc., a handbag manufacturer headquartered in Canada decided to invest in Japan, it linked up with a Japanese fashion house in order to pool resources, share risks, and operate the new business together. This is an example of ___. a) a joint venture b) a foreign subsidiary c) a greenfield venture d) diversification e) product development Answer: a Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Application Difficulty: Medium AACSB: Analytic 122) A(n) ___ is a local operation completely owned and controlled by a foreign firm. a) franchise b) sweatshop c) foreign subsidiary d) global strategic alliance e) export house Answer: c Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 123) International businesses face all of the following legal problems except a) negotiating contracts with foreign parties. b) handling foreign exchange. c) intellectual property rights. d) implementing contracts. e) real estate purchases for prospective facilities. Test Bank

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Answer: e Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 124) China’s laws regarding intellectual property are a major risk when doing business with Chinese organizations. This illustrates a host country’s differences in the a) complexities in trade agreements. b) economic alliances. c) legal and political systems. d) general environment. e) business environment. Answer: c Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 125) Foreign companies operating in Canada ___. a) may encounter quite different laws than they are accustomed to in their home countries b) must deal with antitrust issues that prevent competitors from regularly communicating with one another c) must deal with special laws regarding occupational safety and health, equal employment opportunity, and sexual harassment d) all of the above e) none of the above Answer: d Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Medium Test Bank

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AACSB: Analytic 126) ___is the potential loss in value of foreign investment due to instability and political changes in the host country. a) Greenfield investment b) Political risk c) Protectionism d) Global sourcing e) none of the above Answer: b Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 127) International businesses face all of the following political risks except a) terrorism b) civil war c) armed conflicts d) currency devaluation e) new government systems Answer: d Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 128) Matata, a Japanese firm that manufactures automobile parts, was running at a loss in its offshore outlet in Mexico due to the governmental and civil disruptions in the country. Thus, it withdrew its business outlets from Mexico. Following the departure of Matata, another Japanese firm, Lui Corporation, entered into business in Mexico. With this decision, Lui Corporation has made itself open to ___. Test Bank

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a) a licensing agreement b) a regional economic alliance c) political risk d) insourcing e) joint venture Answer: c Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Application Difficulty: Medium AACSB: Analytic 129) Foot-O, a local footwear company, has made a payment to the German footwear giant Buirick GmbH to use their excellent method of shoe making. This is an example of ________. a) franchising b) insourcing c) a joint venture d) a foreign subsidiary e) a licensing agreement Answer: e Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Application Difficulty: Medium AACSB: Analytic 130) A ___ tries to forecast political disruptions that can threaten the value of a foreign investment. a) break even analysis b) political risk analysis c) cost benefit analysis d) strategic opportunism e) none of the above Answer: b Test Bank

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Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 131) Members of the World Trade Organization (WTO) agree to give each other the most favourable treatment for imports and exports, which is known as ___. a) international political kickbacks b) most favoured nation status c) global greasing d) most favoured bribery status e) the Import/Export Bank Answer: b Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 132) The role of the World Trade Organization is to ___________. a) eliminate tariffs and other protectionist policies b) give member nations favoured nation status c) eliminate child labour and sweatshops d) ensure that corrupt business practices are eliminated around the world e) promote free trade and open markets around the world Answer: e Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 133) Cases presented before the World Trade Organization for resolution are likely to involve Test Bank

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disputes regarding ___. a) cultural appropriateness b) restructures c) cultural distance d) ecological fallacy e) tariffs Answer: e Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 134) ___ are essentially taxes that governments levy on imports from abroad. a) Excise duties b) Tariffs c) Pay-offs d) Corporate taxes e) Subsidies Answer: b Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 135) The goal of most tariffs is to a) improve present working conditions. b) protect transnational corporations from political risks. c) diversify the existing jobs. d) protect local firms from foreign competition. e) create jobs for foreign workers. Answer: d Test Bank

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Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 136) The political call for tariffs and favourable treatment to help shelter domestic businesses from foreign competition is known as ___. a) free trade b) restrictive trade c) protectionism d) import regulations e) export Agreements Answer: c Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 137) The USMCA agreement (formerly NAFTA) is comprised of ___ linked together through favourable trade and customs laws to facilitate the free flow of workers, goods and services, and investments across national boundaries. a) Northern European countries b) African nations c) the U.S., Mexico, and Canada d) the U.S. and Canada e) the U.S., Puerto Rico, and the Caribbean community Answer: c Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic Test Bank

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138) Arguments on the positive side of the USMCA agreement (formerly NAFTA) do not include a) greater cross-border trade. b) benefits to farm exports. c) a common currency. d) reform of the Mexican business environment. e) greater productivity of manufacturers. Answer: c Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 139) Which of the following is true with regard to the European Union (EU)? a) There is an absence of common consensus between the member states of the EU with regard to political integration. b) All the member states of the EU have adopted the Euro as the common currency. c) The common currency of the EU is a weak competitor of the U.S. dollar. d) The EU members are supposed to give one another most favoured nation status. e) The EU is a regional economic and political alliance of global importance. Answer: e Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 140) The ___ is an economic alliance of 27 European countries. a) European Unified Countries Pact b) European Free Trade Organization c) European International Association d) European Favoured Nation Agreement e) European Union Test Bank

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Answer: e Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 141) The European Union is an alliance of European countries that have ___. a) signed a mutual defense treaty b) agreed to promote mutual economic growth by removing trade barriers c) created an international organization to represent the rights and interests of workers d) formed a political alliance to overthrow hostile governments e) decided to promote cultural exchanges Answer: b Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 142) Which of the following are competitive implications for the European Union? a) free flow of workers, goods and services, and investments across national boundaries b) each EU country has access to a market slightly smaller than the United States c) unfavourable trade and customs laws d) use of trade restrictions and quotas e) none of the above. Answer: a Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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143) The Asia Pacific Economic Cooperation (APEC) is an economic alliance of ___ members. a) 21 b) 10 c) 3 d) 27 e) 34 Answer: b Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 144) The ___ links 14 countries of southern Africa in trade and economic development efforts. a) South African Free Trade Association (SAFTA) b) South African Community (SAC) c) South Africa Union (SAU) d) South Africa Economic Cooperative (SAEC) e) South African Development Community (SADC) Answer: e Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 145) A ___ is a multination enterprise (MNE) that operates worldwide on a borderless basis. a) franchise b) transnational corporation c) foreign subsidiary d) greenfield venture e) limited liability company Answer: b Test Bank

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Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 146) The best definition of a true global corporation (or MNC multinational corporation) is ___. a) any firm that does business abroad b) a business firm that has extensive operations in one foreign country c) any import/export firm d) any joint venture with a foreign firm e) a business that has extensive international operations in more than one foreign country Answer: e Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 147) Transnational corporations view the entire world as their domain for all of the following except a) acquiring resources. b) locating production facilities. c) marketing goods and services. d) communicating a brand image. e) creating the business plan. Answer: e Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 148) A(n)___make major decisions from a global perspective, distributes work among worldwide points of excellence, and employs executives from many different countries. Test Bank

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a) multinational corporation b) transnational corporation c) international corporation d) nondomestic corporation e) supernational corporation Answer: b Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 149) The Domestic Density Index gives ratings for all of the following except a) percentage of domestic sales. b) percentage of employees that are domestic to the home country c) nationality of the CEO d) percentage of domestic investment e) percentage of shareholders that are domestic to the home country Answer: d Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 150) When multinational corporations and industrialized nations gain disproportionately from globalization, this is referred to as _________. a) global mismanagement b) corruption c) greenfield d) globalization gap e) economic risk Answer: d Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 151) Which of the following is a potential host-country benefit? a) smaller tax base b) interference with the governments c) economic domination d) introduction of new industries e) exploitation of natural resources Answer: d Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 152) Host countries sometimes complain about the presence of multinational firms (MNCs). These complaints include all of the following except a) MNCs may dominate the local economy. b) MNCs may export jobs to other countries. c) MNCs fail to market products or services needed in the local economy. d) MNCs may fail to transfer their most advanced technology. e) MNCs fail to help domestic firms develop. Answer: c Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 153) Home-country criticisms of global firms include complaints about a) interference with the local government. b) hiring the most talented local personnel at a high cost. c) failure to transfer advanced technologies. d) sending scarce investments capital abroad. e) poor working conditions for employees. Test Bank

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Answer: d Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 154) ___ involves illegal practices to further one’s business interests. a) Corruption b) Ethnocentrism c) Polycentrism d) Proxemics e) Ecological fallacy Answer: a Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 155) The Corruption of Foreign Public Officials Act (CFPOA) makes it illegal for a) countries who are not members of the EU to invest in Canada b) Canadian firms to invest overseas in businesses. c) foreign firms to offer nonmonetary gifts to Canadian officials. d) foreign firms to offer bribes to Canadian firms. e) Canadian firms and their representatives to offer bribes overseas. Answer: e Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 156) Which of the following is an example of child labour? Test Bank

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a) a 13-year-old boy accompanying his mother to the carpet factory where she works b) a 10-year-old boy working in a chemical factory c) a 10-year-old girl helping her younger brother with schoolwork d) a 13-year-old boy earning $10 for helping his father pick strawberries e) a 19-year-old girl working as a salesgirl in the local supermarket Answer: b Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Application Difficulty: Medium AACSB: Analytic 157) Which of the following describes sweatshops? a) local business operations that expand internationally through foreign direct investment b) arbitrating firms that settle labour disputes between employees and employers c) business operations that employ workers at low wages for long hours in poor working conditions d) foreign firms that hire talented local personnel for training others in the host country e) foreign firms that are engaged in rampant corruption and bribery to gain easy access to the local resource pool Answer: c Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 158) Which of the following is a characteristic of a sweatshop? a) poor working conditions b) high wages c) low power distance d) high degree of foreign investment e) strong ethics Answer: a Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 159) Which of the following is an example of a sweatshop? a) Bane & Packhard, an American law firm, opened its branch in Taiwan as part of its business expansion strategy. b) Rosenberg Inc., a pharmaceuticals company, opened a manufacturing plant in Bangladesh, in an old run-down facility. Rosenberg hired local employees, paid them above the minimum wage, and made them work nine hour days. c) Patron Wave, an electronic device manufacturing company, housed its employees in a rundown building with limited lighting and no indoor washroom facilities and paid the employees less than minimum wage. d) Big Sell, a supermarket, sourced its canned fishes from Asia at a far lower price than most of its local competitors. e) Mammoth InfoTech refused to increase the annual wages of its employees citing poor financial results in the last quarter. Answer: c Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Application Difficulty: Medium AACSB: Analytic 160) Why are some scarce minerals known as conflict minerals? a) They bring in greater foreign investments. b) They are found in abundance. c) The money from their sales is used to fund armed violence. d) The source of these minerals is easy to trace back. e) They are available for a cheap price. Answer: c Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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161) ___ is a shared set of beliefs, values, and patterns of behaviour common to a group of people. a) Culture b) Meme c) Folklore d) Conduct e) Morality Answer: a Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 162) Which of the following is true about culture? a) Culture is a set of legal codes. b) Culture is an irrelevant factor in international business. c) Culture is not common to a group of people. d) Culture remains static over time. e) Cultural miscues can be costly in international business. Answer: e Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 163) ___ is the confusion and discomfort a person experiences when in an unfamiliar culture. a) Cultural appropriation b) Culture shock c) Cultural assimilation d) Cultural relativism e) Culture phobia Answer: b Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Test Bank

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Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 164) Culture shock is a) an extreme amount of hatred and rejection of foreign cultures. b) an individual’s failure to comply with the codes of his or her culture. c) an assumption that one’s own culture is superior to that of others. d) an assumption that one’s own culture is inferior to that of others. e) a certain level of discomfort a person experiences when in an unfamiliar culture. Answer: e Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 165) One of the new employees at Aubrey’s firm is from Asia and looks lost most of the time and is not interacting well with others in the office. Which of the following terms best describes this new employee’s situation? a) ethnocentrism b) self-concordance c) proxemics d) culture shock e) ethical dilemma Answer: d Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 166) Karsten Bach, a German citizen, decides to visit a friend living in Indonesia after many decades. Having never visited the country before, Karsten feels confused, anxious, uncomfortable, and in need of information and advice during the visit. Karsten is most likely experiencing ___. Test Bank

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a) claustrophobia b) culture shock c) cognitive dissonance d) culturation e) boredom Answer: b Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 167) An American executive goes to Yemen to finalize a business deal. Upon meeting the Yemen team, the American hands over the necessary documents to the Yemeni host with his left hand, which Muslims in Yemen consider unclean. Moreover, he refuses to accept the dry fruits that are offered, a behaviour that deeply offends the Yemen team. As a result, the American loses the business deal to an Australian company who was better versed in Yemeni ways. The lack of understanding of ___ is most likely to have resulted in the loss of business for the American executive. a) the business trends in Yemen b) Yemeni dress code c) the business laws in Yemen d) Yemeni culture e) the banking system in Yemeni Answer: d Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 168) Culture shock is experienced in five different stages; which include all of the following except a) confusion b) the honeymoon c) reality d) anger and irritation Test Bank

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e) major victories Answer: e Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 169) Which sequence describes the stages that a person goes through in adjusting to a new culture accurately? a) the honeymoon, confusion, irritation/anger, small victories, and reality b) small victories, the honeymoon, reality, irritation/anger, and confusion c) confusion, small victories, the honeymoon, irritation/anger, and reality d) confusion, irritation/anger, reality, small victories, and the honeymoon e) the honeymoon, small victories, reality, confusion, and irritation/anger Answer: c Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 170) The tendency to view one’s culture as superior to any other is referred to as __________. a) ethnocentrism b) discrimination c) prejudice d) amoral e) cultural gap Answer: a Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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171) Which of the following is a trait of ethnocentrism? a) showing no concern for the cultures of others b) being eager to adopt the elements of foreign cultures c) showing a preference for foreign cultural values to one’s own d) respecting ethnic minorities and their culture e) failing to comply with the cultural values of one’s own group Answer: a Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 172) Parker, a Canadian national and university student, was sent to India as part of a cultural exchange program. Upon arrival in India, Parker did not respond to the host who greeted Parker by joining hands with Parker. As well Parker declined the tea that was offered, emphasizing a cultural preference for coffee. Parker felt that Canadian ways and culture were far superior to the ones in the host country. In this scenario, Parker displayed ___. a) polycentrism b) idealism c) ethnocentrism d) feudalism e) collectivism Answer: c Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 173) Cultural intelligence is the___. a) tendency to consider one’s own culture to be superior to other cultures b) same as emotional intelligence c) seven stages that people go through in adjusting to a new culture d) ability to understand and adapt to new cultures e) ability to communicate effectively in several languages Test Bank

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Answer: d Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 174) People with cultural intelligence a) are flexible in dealing with cultural differences. b) are uncomfortable with cultural differences. c) view one’s culture as superior to that of others. d) view one’s culture as inferior to that of others. e) are eager to adopt the values of foreign cultures. Answer: a Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 175) Someone high in cultural intelligence views cultural differences as ___. a) threats b) ethical dilemmas c) learning opportunities d) moral dilemmas e) barriers to learning Answer: c Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 176) Which of the following accurately describe the basic building blocks of cultural intelligence? Test Bank

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a) self-management and respect b) self-awareness and reasonable cultural sensitivity c) respect and emotional intelligence d) diversity leadership and self-awareness e) emotional intelligence and self-management Answer: b Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 177) The capacities to listen, observe, and learn are the building blocks of cultural intelligence. These skills and competencies can be developed by better understanding what the anthropologist Edward T. Hall calls the “___” languages of culture. a) graphic b) silent c) transformative d) spectacular e) vocal Answer: b Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 178) The central building blocks of cultural intelligence are ___________. a) context, time and space b) listening, observation and learning c) power, time and space d) time, observation and learning e) power, time and observation Answer: b Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 179) ___ cultures emphasize communication via spoken or written words. a) High-context b) Popular c) High femininity d) Low-context e) Monochronic Answer: d Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 180) People who tend to say or write what they mean and mean what they say belong to ___ cultures. a) high-context b) popular c) low-context d) mass e) global Answer: c Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 181) In ___ cultures, what is actually said or written may convey only part, and sometimes a very small part, of the real message. a) low-context b) monochronic c) polychronic Test Bank

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d) popular e) high-context Answer: e Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 182) Which of the following is true with regard to people in high-context cultures? a) They rely on situational cues as well as on spoken or written words. b) The main part of the real message is conveyed by what is actually said. c) Body language is ignored in the communication process. d) They emphasize the importance of doing one thing at a time. e) They focus on using time to accomplish many different things at once. Answer: a Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 183) Cultures where it is possible to begin making business deals only after social relationships are established are referred to as ___ cultures. a) ethnocentric b) high-context c) xenocentric d) polychronic e) popular Answer: b Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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184) Monochronic cultures focus on ___. a) gestures b) written language c) social context d) time e) space Answer: d Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 185) In ___, time is used to accomplish many different things at once. a) polychronic cultures b) monochronic cultures c) ethical cultures d) time dependent cultures e) sensitive cultures Answer: a Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 186) In ___ cultures, people tend to do one thing at a time. a) ethnocentric b) xenocentric c) monochronic d) popular e) high-context Answer: c Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Test Bank

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Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 187) Charlie visited one of the Middle East countries to discuss strategic alliance with a client. Charlie noticed that the client hosts wouldn’t mind doing a lot of other things simultaneously during the meeting. Charlie was baffled by the amount of interruptions that took place while interacting with the client. Which of the following terms best describes the culture of Charlie’s client? a) ethnocentrism b) polychronic culture c) tight culture d) low-context culture e) transitional culture Answer: b Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 188) Most businesspeople in North America schedule meetings with specific people and focus on a specific agenda for an allotted time. This is characteristic of a(n) ___ culture. a) polychronic b) low-context c) ethnocentric d) high-context e) monochronic Answer: e Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 189) ___ is the degree to which a society emphasizes short-term or long-term goals. Test Bank

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a) Uncertainty avoidance b) Power distance c) Time orientation d) Time preference e) Individualism-collectivism Answer: c Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 190) In ___ cultures, time is used to accomplish many different things at once. a) polychronic b) ethnocentric c) low-context d) high-context e) monochronic Answer: a Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 191) Which of the following is true about members of polychronic cultures? a) They are known to be punctual without exception. b) They do only one thing at a time. c) They are flexible in their views of time. d) They regard time as the primary focus of business. e) They have a pre-determined sequence of agenda. Answer: c Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 192) Ashley Bentley, a British executive, decided to meet a client in the latter’s office in Abu Dhabi. Ashley became frustrated when after an initial warm greeting, the client continued to deal with a continuous stream of visitors flowing in and out of the office. Bentley felt the client was not extending the dedicated attention that was deserved. This is because Bentley closely identifies with the ___ cultural values. a) low-context b) monochronic c) high-context d) xenocentric e) polychronic Answer: b Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 193) ___ is the study of how people use space to communicate. a) Proxemics b) Kinesics c) Spacetime d) Chronemics e) Vocalics Answer: a Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 194) Proxemics relates to which of the following aspects of the silent language of culture? a) nonverbal communication b) monochronic cultures Test Bank

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c) space orientation d) context e) time Orientation Answer: c Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 195) Which of the following is true about proxemics? a) It studies the importance of time in the context of business. b) It emphasizes the importance of gestures in the communication process. c) It emphasizes verbal communication. d) It focuses on the use of space in communication. e) It focuses on the comparative analysis of the cultural traits of different groups. Answer: d Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 196) Ray is currently writing his doctoral thesis, which is a comparative study on the use and treatment of physical space in communication between people across cultures. His thesis is a study on ___. a) haptics b) kinesics c) vocalics d) chronemics e) proxemics Answer: e Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Application Difficulty: Medium Test Bank

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AACSB: Analytic 197) Which of the following describes cultural tightness/looseness? a) the ability to accept and adapt to new cultures b) the strength of social norms and tolerance for deviations c) the confusion and discomfort a person experiences when in an unfamiliar culture d) the tendency to consider one’s culture superior to others e) the tendency to rely on nonverbal and situational cues Answer: b Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 198) Which of the following is one of the focuses of cultural tightness/looseness? a) the tolerance that exists for any deviations from norms b) the superiority of home-country values over a foreign culture c) the first interaction with a new culture and the anxieties associated with it d) the time when a new culture becomes the subject of one’s criticism e) the ability to interpret the real message from what is being said Answer: a Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 199) In a ___ culture, people guide their behaviour according to expectations set by prevailing social norms. a) low-context b) loose c) monochronic d) polychronic e) tight Test Bank

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Answer: e Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 200) The goal set by tight cultures is to a) fit in. b) stand out. c) remain complacent. d) attract attention. e) disregard the social norms. Answer: a Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 201) In a loose culture, ___. a) people adhere to the social norms b) people are expected to fit in c) people are discouraged to speak out d) deviations from norms are tolerated e) conformity to social norms is uniform and absolute Answer: d Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 202) Which of the following is true about loose cultures? a) A high degree of conformity to social norms is present. Test Bank

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b) Tolerance for deviation is absent. c) The goal is to fit into the societal expectations. d) Social norms are narrow and unambiguous. e) Non-criminal deviations from norms tend to be tolerated. Answer: e Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 203) A mix of cultural tightness and looseness in a cross-cultural team may result in ___. a) synchronized performance b) consistent productivity c) soft or unstated conflict d) mitigation of conflict e) uniform and high inclination to volunteer Answer: c Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 204) In a cross-cultural team, a member from the loose culture may show an inclination for which of the following? a) looking toward formal authority for direction b) criticizing others c) being slow to volunteer d) being slow to display emotion e) always being on time Answer: b Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 205) Which of the following is a cultural dimension identified by Geert Hofstede? a) social orientation b) cultural intelligence c) social context d) uncertainty avoidance e) socialization Answer: d Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 206) Geert Hofstede developed a framework consisting of five dimensions for understanding the management implications of broad differences in national cultures. Which one of the following statements accurately identifies these five dimensions? a) location, certainty avoidance, individualism-collectivism, masculinity-femininity, and religious tradition b) power distance, certainty avoidance, individualism-utilitarianism, masculinity-femininity, and religious tradition c) political distance, uncertainty avoidance, utilitarianism-collectivism, masculinity-femininity, and time orientation d) power distance, uncertainty avoidance, individualism-collectivism, masculinity-femininity, and time orientation e) power distance, uncertainty avoidance, individualism-collectivism, totalitarianismdecentralization, and economic opportunities Answer: d Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 207) Which of the following descriptions represents Hofstede’s masculinity-femininity dimension? Test Bank

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a) reliance on group decisions versus reliance on individual decisions b) everyone should have equal rights versus the ones in control should be entitled to privilege c) willingness to take risks versus concern with security in life d) assertiveness and material concerns versus concerns for human relationships and feelings e) time is free versus time is money Answer: d Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 208) Hofstede defined his time orientation dimension of national culture as ___. a) the degree to which a society tolerates risk and situational uncertainties b) the degree to which a society accepts a hierarchical or unequal distribution of power in organizations c) the degree to which a society relies on individual accomplishments and self-interests versus the collective accomplishments and interests of the group d) the degree to which a society emphasizes assertiveness and material concerns versus greater concerns for human relationships and feelings e) the degree to which a society emphasizes short-term considerations versus greater concern for the future Answer: e Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 209) The ___ assumes that a generalized cultural value applies equally well to all members of the culture. a) ecological fallacy b) naturalist theory c) etymological theory d) definist culture e) existential process Test Bank

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Answer: a Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 210) Nico, a resident of Ukraine, decides to travel to Canada for a vacation. During the vacation Nico has decided that all Canadians, without exception are strongly individualistic. Nico is in the danger of falling prey to the ___. a) regression fallacy b) ethical dilemma c) Samaritan’s dilemma d) existential fallacy e) ecological fallacy Answer: e Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 211) ___ is the degree to which a society accepts unequal distribution of power. a) Masculinity-femininity b) Proxemics c) Power distance d) Individualism-collectivism e) Power tactics Answer: c Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 212) Which of the following is true about people in high-power-distance cultures? Test Bank

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a) They do not accept differences in rank. b) They tend to be tolerant of power. c) They display a narrow perception of the mind. d) They display egalitarian relationships. e) They have no respect for the elderly. Answer: b Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 213) Adrian had been recruited as a human resource manager for a firm based in China. Adrian soon realized that the work culture at the new office is entirely different from that of the previous firm, which was based in the Canada. In the new office, Adrian could not question an order passed by a higher authority. What kind of a culture is Adrian facing in the new office? a) individualistic culture b) loose culture c) polychronic culture d) high-power-distance culture e) low-context culture Answer: d Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 214) Which of the following descriptions best describes Hofstede’s power distance dimension? a) reliance on group decisions versus reliance on individual decisions b) everybody should have equal rights versus the ones who are in control are entitled to privilege c) willingness to take risks versus concern with security in life d) interdependence versus independence e) time is free versus time is money Answer: b Test Bank

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Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 215) The extensive use of words like “I” and “me” in conversations and meetings reflect a cultural tendency toward ___. a) collectivism b) nationalism c) masculinity d) individualism e) socialism Answer: d Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 216) ___ had the highest individualism score of any country in Hofstede’s data. a) The United States b) The United Kingdom c) Canada d) Australia e) China Answer: a Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 217) Which of the following descriptions represents Hofstede’s individualism-collectivism dimension? a) all people should have equal rights versus the ones in control are entitled to privilege. b) Test Bank

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willingness to take risks versus concern with security in life c) reliance on individual accomplishments and self-interests versus the collective accomplishments and interests of the group d) interdependence versus independence e) time is free versus time is money Answer: c Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 218) Jaden has just started working in China and noticed almost immediately that the words “we” and “us” are frequently used in conversations and meetings. This illustrates what type of attitude? a) collectivist b) power sharing c) individualistic d) teamwork e) group effort Answer: a Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 219) ___ is the degree to which a society tolerates risk and change. a) Culture shock b) Cultural assimilation c) Imperialism d) Power distance e) Uncertainty avoidance Answer: e Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 220) In high uncertainty-avoidance cultures, one would expect to find a preference for ___. a) openness to change b) innovation c) predictability d) openness to risk e) ambiguity Answer: c Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 221) Members of low uncertainty-avoidance cultures display a) apathy toward innovation. b) affinity for rules. c) preference for structure. d) openness to change. e) rigidity toward change. Answer: d Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 222) Skyler Melville, a successful artist, lives and works in Paris. Skyler does not travel much and like many of Skyler’s peers, has declined multiple offers to teach in famous schools of art outside of Paris. Skyler does not like change and prefers predictability, order, and structure in life. Skyler displays the traits associated with a ___ culture. a) low uncertainty avoidance b) short-term oriented Test Bank

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c) long-term oriented d) xenocentric e) high uncertainty avoidance Answer: e Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 223) Hofstede defined his uncertainty-avoidance dimension of national culture as ___. a) the degree to which a society is uncomfortable with risk, change, and situational uncertainties b) the degree to which a society accepts a hierarchical or unequal distribution of power in organizations c) the degree to which a society emphasizes individual accomplishments and self-interests versus the collective accomplishments and interests of groups d) the degree to which a society emphasizes assertiveness and material concerns versus greater concerns for human relationships and feelings e) the degree to which a society emphasizes short-term considerations versus greater concern for the future Answer: a Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 224) Which of the following defines masculinity-femininity? a) It is the degree to which a society values assertiveness and materialism versus feelings, relationships, and quality of life. b) It is the ratio of men and women in the workforce at a given point of time. c) It is the degree to which a society values the role of men and women as the propagators of its culture. d) It refers to the core differences of gender that are mirrored in the interaction between a man and a woman. e) It refers to the importance of men versus women in a society. Answer: a Test Bank

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Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 225) ___ has the highest masculinity score in Hofstede’s research. a) Malaysia b) Japan c) India d) France e) Germany Answer: b Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 226) The goal of comparative management studies is to ___. a) increase cultural diversity b) stimulate creative thinking about the practices used by managers in different cultures c) promote Ethnocentric attitudes d) explain why managers in one culture are more effective than in another culture e) identify universal management practices and principles Answer: b Learning Objective 5.4: Identify the benefits of global learning for management and organizations. Section Reference 5.4: Global Management Learning Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 227) Which of the following pillars of management advocates that a person be inquisitive and curious about cultural differences? Test Bank

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a) relationship management b) perception management c) finance management d) self-management e) crisis management Answer: b Learning Objective 5.4: Identify the benefits of global learning for management and organizations. Section Reference 5.4: Global Management Learning Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 228) One of the concerns of multinational corporations is whether North American. management practices and theories are appropriate for use in foreign countries. Hofstede’s research in this area indicates that North American theories ___. a) are universally applicable since they are good theories b) are only valid within the United States c) work best within American-based multinational corporations d) are still ethnocentric e) work best within English-speaking countries Answer: d Learning Objective 5.4: Identify the benefits of global learning for management and organizations. Section Reference 5.4: Global Management Learning Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 229) Companies that believe in ___ realize that businesses around the world have much to share with and learn from one another. a) transnational knowledge positioning b) global management learning c) expatriate knowledge sharing d) international trade e) ethnocentrism Answer: b Test Bank

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Learning Objective 5.4: Identify the benefits of global learning for management and organizations. Section Reference 5.4: Global Management Learning Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 230) Which of the following is a key component of intercultural competencies? a) It refers to acting competent when working in another culture. b) It does not tolerate cultural diversity. c) It involves being judgmental about a cultural norm. d) It refers to the superiority of one culture to another. e) It does not require a person to be open-minded about a culture. Answer: a Learning Objective 5.4: Identify the benefits of global learning for management and organizations. Section Reference 5.4: Global Management Learning Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 231) Lane, who was posted as a manager in a firm in India, was able to quickly adjust to the host country’s culture and work ethics. Lane’s self-confidence and flexible nature allowed Lane to accept and adapt to the cultural differences well. Which trait is displayed in the given scenario? a) ethnocentrism b) intercultural competency c) xenocentrism d) uncertainty avoidance e) egocentrism Answer: b Learning Objective 5.4: Identify the benefits of global learning for management and organizations. Section Reference 5.4: Global Management Learning Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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Question type: Essay 232) Name and briefly define some common market-entry strategies that help companies go global. Answer: Some common market-entry strategies that help companies go global are global sourcing; exporting and importing; and licensing and franchising. A common first step into international business is global sourcing—the process of purchasing materials, manufacturing components, or locating business services around the world. A second form of international business involves exporting—selling locally-made products in foreign markets. The flipside of exporting is importing—buying foreign-made products and selling them in domestic markets. Another form of international business is the licensing agreement where foreign firms pay a fee for rights to make or sell another company’s products in a specified region. Franchising is a form of licensing in which a foreign firm buys the rights to use another’s name and operating methods in its home country. Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 233) Identify and describe the key regional alliances in the global economy referred to in the text. Answer: The key regional alliances of the 21st century global economy are: the European Union, the Americas, the Asia Pacific Economic Cooperation and the Association of Southeast Asian Nations, and Africa (Southern Africa Development Community). The European Union (EU) is a group of European countries that agreed to support mutual economic growth by removing barriers that previously limited cross-border trade and business development. Members of the EU are linked through favourable trade and customs laws to facilitate the free flow of workers, goods and services, and investments across national boundaries. In the Americas, the United States-Mexico-Canada (USMCA) agreement, which replaced the North American Free Trade Agreement (NAFTA), largely frees the flow of goods and services, workers, and investments among Canada, Mexico, and the United States. APEC goal is to promote free trade and investment in the Pacific region. It has 21 members, including Canada, the United States, and Australia. APEC works to raise living standards and education levels through sustainable economic growth. The 10 nations of Southeast Asia belong to the Association of Southeast Asian Nations (ASEAN) with a stated goal of promoting economic growth and progress. The South African Development Community (SADC) links the countries of southern Africa in trade and economic development efforts. Its objectives include harmonizing and rationalizing strategies for Test Bank

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sustainable development among member countries. Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 234) Briefly describe the different forms of global business that an organization can pursue. Answer: An international business conducts for-profit transactions of goods and/or services across national boundaries. These transactions can be conducted through the following forms: • Global sourcing involves purchasing materials, manufacturing components, or business services from around the world. • Exporting involves selling locally-made products in foreign markets. • Importing involves buying foreign-made products and selling them in domestic markets. • A licensing agreement occurs when a foreign firm pays a fee for the right to make or sell another company’s products in a specified region. • Franchising is a form of licensing in which the foreign firm buys the rights to use another firm’s name and operating methods in its home country. • Joint ventures are co-ownership arrangements that pool resources, share risks, and share control of business operations. • A foreign subsidiary is a local operation completely owned and controlled by a foreign firm. Learning Objective 5.1: Discuss the implications of globalization for management and organizations. Section Reference 5.1: Management and Globalization Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 235) Legal, political, and ethical challenges to global business can be found in many arenas. What are the challenges to business that emerge from the actions of a host country and those that emerge from the actions of a home country? Answer: Local politics, laws, and ethical standards all play a crucial role in global business. Even the best corporate strategies or marketing plans can be sidetracked by unexpected legal or political impediments that serve to increase the costs or risks associated with doing business in a foreign country. It is therefore important for those involved in global enterprise of any sort - even if they never leave their home country - to understand the legal, political, and ethical environment of global business. Test Bank

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For example, U.S.-based Intel manufactures semiconductors in China and Costa Rica, among other places. Its home country is therefore the United States, while China and Costa Rica are host countries to its global operations. To succeed, Intel must meet government requirements and local customs in all three countries. The potential host-country costs include complaints that MNCs extract excessive profits, dominate the local economy, interfere with the local government, do not respect local customs and laws, fail to help domestic firms develop, hire the most talented of local personnel, and fail to transfer their most advanced technologies. Whenever a domestic employer outsources jobs, or cuts back or closes a domestic operation in order to shift work to lower-cost international destinations, the loss of local jobs is controversial. Corporate decision-makers are likely to be engaged by government and community leaders in critical debates about a firm’s domestic social responsibilities. Other home-country criticisms of MNCs include complaints about sending capital investments abroad and engaging in corrupt practices in foreign settings. Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 236) How do global corporations view sustainable development and provide an example of a global corporation fulfilling its commitments to sustainable development? Answer: Sustainable development is generally agreed to mean ‘meeting the needs of the present without compromising the ability of future generations to meet their own needs.’ Corporate responsibility standards, norms, principles and guidelines aim to provide generally accepted reference points for improving aspects of social and environmental performance. Although mostly voluntary, some are emerging as de facto industry standards that provide the desired legitimacy, consistency and comparability required by business and its stakeholders. For a firm to fulfill a commitment to sustainable development, its executives must lead in ways that demonstrate stewardship in protecting the natural environment and preserving its resources for the future. Many international standards and networks started as attempts to help guide organizations on how to improve the consistency of their products, reduce their impact on the environment (ISO 14000) or to generally improve their environmental and social management. These programs are voluntary and involve a range of activities, from a simple commitment to investigate sustainability issues to the adherence to strict protocols for environmental and social standards. Sustainability is now a regular focus at the annual World Economic Forum at Davos, where many of the world’s most powerful business and political leaders gather annually to reflect on the key challenges of the year ahead. General Electric (GE) is an example of a company fulfilling its commitments on sustainable development. In 2010, GE earned the top rank in Global 100 list of the most sustainable large corporations in the world at the World Economic Forum in Davos. This was due to its industry leading ratio of sales to waste, strong board gender diversity, and a doubling of its carbon productivity from 2006 to 2008, reducing its total carbon emissions while increasing sales from Test Bank

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$150 billion to $181 billion. Philips Electronics is another example of a company that appears to have an advanced-stage sustainability strategy. Philips Electronics has developed special medical vans that allow urban doctors to reach remote villages to diagnose and treat patients via satellite. It has also developed low-cost water-purification technology and a smokeless wood-burning stove that could reduce the 1.6 million deaths annually worldwide from pulmonary diseases linked to cooking smoke. Philips is also abandoning its leading incandescent lighting business in favour of more energyefficient compact fluorescent, and eventually LED lighting. Learning Objective 5.2: Describe global corporations and the issues they face and create. Section Reference 5.2: Global Businesses Bloom’s: Analysis Difficulty: Medium AACSB: Reflective Thinking 237) Define culture. Explain the importance of cultural intelligence. Answer: Culture is a shared set of beliefs, values, and patterns of behaviour common to a group of people. People with cultural intelligence, or the ability to accept and adapt to new cultures, are flexible in dealing with cultural differences and willing to learn from what is unfamiliar. They use that learning to self-regulate and modify their behaviours to act with sensitivity toward another culture’s ways. In other words, someone high in cultural intelligence views cultural differences not as threats but as learning opportunities. Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 238) Describe the key dimensions of Geert Hofstede’s framework for comparing national cultures. What are the implications of these cultural dimensions for international business? Answer: Geert Hofstede identified five keys dimensions by which national cultures can be compared. These cultural dimensions are: Power distance – the degree to which a society accepts or rejects the unequal distribution of power among people in organizations and the institutions of society. Uncertainty avoidance – the degree to which a society is uncomfortable with risk, change, and situational uncertainty, versus having tolerance for them. Individualism-collectivism – the degree to which a society emphasizes individual accomplishments and self-interests, versus the collective accomplishments and interests of groups. Masculinity-femininity – the degree to which a society values assertiveness and material success, versus feelings and concern for relationships. Test Bank

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Time orientation – the degree to which a society emphasizes short-term considerations versus greater concern for the future. People who grow up in and live in a particular culture are influenced by that culture’s orientation toward each of these dimensions. Different behaviour will result from different orientations toward these cultural dimensions. Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 239) Distinguish between tight and loose cultures. Provide an example of each. Answer: In a tight culture, such as ones found in Malaysia, Korea, or Japan, people guide their behaviour according to expectations set by very clear social norms. They try to conform to these norms, understanding that any deviation will be noticed and discouraged and not be tolerated. The goal is to fit in and not stand out. On the other hand, in a loose culture, such as Hungary, Brazil, or Australia, people show general or mixed concern for social norms, and these norms may be broad and ambiguous. Conformity is mixed; deviations from norms tend to be tolerated unless they reach criminal territory or the extremes of morality. More specific examples may be provided by the student, similar to those presented in the text. Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures. Section Reference 5.3: Cultures and Global Diversity Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 240) What is meant by intercultural competencies? What are the different pillars of intercultural competencies? Answer: Intercultural competencies are skills and personal characteristics that help us be successful in cross-cultural situations. The three pillars of intercultural competency are perception management, relationship management, and self-management. In perception management, a person must be inquisitive and curious about cultural differences. Being flexible and non-judgmental are important when interpreting and dealing with situations in which differences are present. In relationship management, a person must be genuinely interested in others, be sensitive to one’s own emotions and feelings, and be able to make personal adjustments while engaging in cross-cultural interactions. In self-management, a person must have a strong sense of personal identity and understand his or her own emotions and values. One must also stay self-confident even in situations that call for personal adaptations because of cultural differences. Test Bank

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Learning Objective 5.4: Identify the benefits of global learning for management and organizations. Section Reference 5.4: Global Management Learning Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 241) Are management theories universal? Explain why or why not. Answer: Geert Hofstede argues that management theories do not apply universally across nations and cultures; he worries that many theories are ethnocentric and fail to take into account cultural differences. For instance, America’s emphasis on participation in leadership reflects the culture’s medium stance on power distance; other countries with higher scores (e.g., France) are less participative. Hofstede also argues that U.S.-based motivation theories are value laden, with an emphasis on individual performance. He argues that this is consistent with the individualism found in Anglo-American countries. However, where values are more collectivistic, the theories may be less appropriate. The focus on individual job enrichment in the United States as opposed to the focus on groups of workers as in Europe is also consistent with individualistic versus collectivistic differences. Similarly, while some Japanese practices can be applied successfully abroad, others have met with difficulties. Specific Japanese practices that vary with respect to degree of transferability include: lifetime employment, job rotation and broad career experience, information sharing, group decisions, and quality emphasis. It is important to identify both the potential merits of management practices found in other countries and the ways in which cultural variables may affect their success or failure when applied elsewhere. Learning Objective 5.4: Identify the benefits of global learning for management and organizations. Section Reference 5.4: Global Management Learning Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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CHAPTER 6 ENTREPRENEURSHIP AND NEW VENTURES Question type: True/False 1) Entrepreneurship describes strategic thinking and risk-aversion behaviour in business that results in new opportunities. Answer: False Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 2) Entrepreneurship describes strategic thinking and risk-taking behaviour that results in the creation of new opportunities for individuals and/or organizations. Answer: True Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 3) A classic entrepreneur is a risk-taking individual who acts to pursue opportunities and situations others fail to recognize, or even view as problems or threats. Answer: True Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 4) Serial entrepreneurship is one way for people, including women and minorities who have hit Test Bank

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the “glass ceiling” in their careers or are otherwise cut off from other employment choices, to strike out on their own and gain economic independence. Answer: False Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 5) A first-mover advantage comes from being first to exploit a niche or enter a market. Answer: True Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 6) A first-mover advantage comes from being first within the industry to outsource non-core business activities or to embrace social responsibility. Answer: False Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 7) Serial entrepreneurs exist only in for profit organizations. Answer: False Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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8) Entrepreneurs are born, not made. Answer: False Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 9) The following phrases¾entrepreneurs are born, not made; entrepreneurs are gamblers; and entrepreneurs are young¾capture three fundamental truths about entrepreneurs. Answer: False Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 10) One of the myths about entrepreneurs is that entrepreneurs are risk averse and take as few gambles or chances as possible. Answer: False Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 11) Having sufficient money or capital to start up and maintain an entrepreneurial venture is a guarantee to entrepreneurial success. Answer: False Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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12) Entrepreneurs include people who buy a local franchise outlet, open a small retail shop, or go into a self-employed service business. Answer: True Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 13) Founders of new business enterprises that achieve large-scale success or people who assume responsibility for introducing a new product or a change in operations in an existing organization are not entrepreneurs. Answer: False Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 14) The general profile of an entrepreneur is an individual who is very self-confident, determined, resilient, adaptable, and driven by excellence. Answer: True Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 15) Entrepreneurs typically have an internal locus of control, a high energy level, a high need for achievement, a high tolerance for ambiguity, self-confidence, an action orientation, the desire for independence, and a high degree of flexibility. Answer: True Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 16) Entrepreneurs’ belief that they are in control of their own destiny shows that they have an internal locus of control. Answer: True Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 17) Entrepreneurs tend to have a tolerance for ambiguity. Answer: True Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 18) Entrepreneurs typically come from families with strong corporate career backgrounds and seek independence from the corporate bureaucracies that dominated their parents. Answer: False Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 19) Entrepreneurs have strong interests in creative production and high interest in enterprise control. Answer: True Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Test Bank

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Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 20) Entrepreneurs are self-starters who are willing to stay with a course of action even when their plans are not working. Answer: False Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 21) Most entrepreneurs start their own business before the age of 25. Answer: False Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 22) An individual’s family environment has little to no impact on the success or failure of an entrepreneurial enterprise. Answer: True Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 23) Anita Roddick, founder of The Body Shop PLC, said she created her business: “to create a livelihood for myself and my two daughters, while my husband, Gordon, was trekking across the Americas”. This is an example of necessity-based entrepreneurship. Answer: True Test Bank

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Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 24) Economists differentiate between entrepreneurs who are driven by the quest for new opportunities and those who are driven by absolute need. Answer: True Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 25) Necessity-based entrepreneurship takes place because other employment options don’t exist. Answer: True Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 26) Entrepreneurship offers women and members of visible minorities opportunities to strike out on their own and gain economic independence. Answer: True Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 27) Women and minorities are more likely to reach higher levels of success and opportunities by working for a large corporation than by starting their own businesses. Test Bank

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Answer: False Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 28) Minority-owned businesses are one of the slowest growing sectors of the Canadian economy. Answer: False Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 29) Entrepreneurship does not offer women and members of visible minorities opportunities to strike out on their own and gain economic independence. Answer: False Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 30) Classic entrepreneurship is a form of ethical entrepreneurship that seeks novel ways to solve pressing social problems. Answer: False Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 31) Social enterprises have a social mission to help make lives better for underserved populations. Test Bank

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Answer: True Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 32) McGill University has created an MBA program in social enterprise and entrepreneurship. Answer: False Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 33) The vast majority of small businesses employ between 100 and 150 persons. Answer: False Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 34) Wanting to be their own bosses and controlling their future or seeking to fulfill a dream are important reasons that people pursue entrepreneurship and launch their own businesses. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic

Test Bank

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35) One of the common ways to get involved in a small business is to buy and run a franchise. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 36) In a franchise, the franchise parent receives a share of income or a flat fee from the franchisee. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 37) A franchise is where a business owner sells to another person the right to operate the same business in another location, under the original owner’s business name and guidance. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 38) A business model is a plan for how the enterprise will generate profits. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 39) A start-up is a new venture that the entrepreneur is hoping will take shape and prove successful as things move forward. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 40) Lean start-ups are permanent, cost-intensive organizations. Answer: False Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 41) Growing too fast is one of the reasons small businesses fail. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 42) Statistics on Canadian small business failure rates indicate that almost 50 percent of new businesses fail in their first five years of operation. Answer: True Test Bank

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Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 43) Lack of experience, lack of expertise, lack of strategy and strategic leadership, poor financial control, growing too fast, lack of commitment, and ethical failure are important reasons for new business failures. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 44) Not having sufficient know-how to run a business in the chosen market or area is a reason for the high failure rate of new businesses. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 45) Taking the time to craft a vision and mission, and to formulate, revise, and properly implement strategy are reasons for the high failure rate of new businesses. Answer: False Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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46) Not keeping track of the numbers and failure to control business finances has little to do with business success or failure. Answer: False Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 47) Not taking the time to consolidate a position, fine-tune the organization, or systematically meet the challenges of growth are some of the reasons for the high failure rate of new businesses. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 48) Not devoting enough time to the requirements of running a competitive business is one of the reasons for the high failure rate of new businesses. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 49) A family business feud is the issue of who will run the business when the current head leaves. Answer: False Test Bank

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Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 50) Everyone working together, sharing values and a common goal, and knowing that what they do benefits the family, define the ideal situation in a family business. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 510) While family businesses must solve the same problems of other small or large businesses, they also must address a set of unique problems. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 52) The family business feud occurs when members of the controlling family get into disagreements about work responsibilities or finances but not business strategy or operating approaches. Answer: False Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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53) A significant problem that faces family business is the succession problem, which is the transfer of leadership from one generation to the next. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 54) Only a small percent of businesses operating worldwide are family owned; most are public corporations. Answer: False Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 55) The clear majority of family business with succession plans will survive well beyond the second generation. Answer: False Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 56) About 70 percent of family firms survive to the second generation, about 45 percent survive to the third generation, and about 25 percent are expected to survive beyond the third generation. Answer: False Test Bank

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Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 57) A succession plan must include legal aspects of any ownership transfer as well as procedures for choosing or designating the firm’s new leadership or any financial and estate plans relating to the transfer. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 58) In succession planning, family businesses should set up the succession plan well in advance of the need to use it; and then share it with all affected persons, making sure they understand it. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 59) In succession planning, family businesses should identify the leadership successor well ahead of time and prepare the leadership successor through training and experience to assume the new role when needed. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 60) Having a succession plan helps avoid a succession problem. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 61) Business incubators are also called business accelerators. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 62) Business incubators aid in the development of start-ups. Answer: True Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 63) The entrepreneur’s ability to identify a market niche that is being missed by other established firms or to identify a new market that has not yet been discovered by existing firms are important avenues of new venture creation. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new Test Bank

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business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 64) To stay customer focused, a new venture should effectively address questions such as: Who is your customer? How will you price your product or service for the customer? How much does it cost to attract a customer? How much does it cost to support and retain a customer? Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Application Difficulty: Medium AACSB: Analytic 65) The three life cycles of an entrepreneurial firm are the birth cycle, the breakthrough cycle and the maturity cycle. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 66) In the birth stage of the life cycle of entrepreneurial firms, the entrepreneur struggles to get the new venture established and to survive long enough to test the viability of the underlying business model in the marketplace. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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67) Activities that focus on establishing the business, getting customers, and finding financing occur in the birth stage of the life cycle of entrepreneurial firms. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 68) The breakthrough stage involves establishing the firm and fighting for its existence. Answer: False Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 69) At the breakthrough stage of the life cycle of entrepreneurial firms, the management challenge is one of fighting for existence and survival. Answer: False Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 70) At the breakthrough stage of the life cycle of entrepreneurial firms, the business model begins to work well, growth is experienced, and the complexity of managing the business operation expands significantly. Answer: True Test Bank

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Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 71) Activities that focus on working on finances, becoming profitable and growing occur in the birth stage of the life cycle of entrepreneurial firms. Answer: False Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 72) At the breakthrough stage of the life cycle of entrepreneurial firms, the management challenge is one of investing wisely and staying flexible. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 73) In the maturity stage of the life cycle of entrepreneurial firms, the entrepreneur experiences the advantages of market success and financial stability, while also facing continuing challenges of meeting the needs for professional management skills. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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74) At the maturity stage of the life cycle of entrepreneurial firms, the management challenge is one of coping with growth and takeoff. Answer: False Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 75) The life cycle of entrepreneurial firms poses different management challenges at each stage and requires different management competencies at each stage. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 76) Self-management is an ability to use objective understanding of personal strengths and weaknesses to keep growing—individually and career-wise. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 77) A succession plan describes the direction for a new business and the financing needed to operate it. Answer: False Test Bank

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Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 78) A business plan describes the direction for a new business and the financing needed to operate it. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 79) A business plan should include an executive summary, industry analysis, company description, products and services description, market description, marketing strategy, operations description, staffing description, financial projection, capital needs, and milestones. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 80) A business plan should be comprehensive, easy to read, and less than ten pages. Answer: False Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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81) A business plan forces an entrepreneur to explore important challenges and issues that must be addressed before starting a new business. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 82) The business plan of a small, start-up business might not include information about the costs of the start-up or details about financing. Answer: False Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 83) In a business plan, the executive summary contains the mission of the company, the details of the owners, and the legal form of the organization. Answer: False Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 84) One of the important decisions in starting a new business venture is choosing the legal form of ownership. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new Test Bank

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business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 85) A sole proprietorship is simple to start, run, and terminate. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 86) A sole proprietorship is the most common form of small business ownership in Canada. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 87) When establishing a corporation, a partnership agreement must be made. Answer: False Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 88) A partnership is formed when two or more people agree to contribute resources to start and operate a business together. Test Bank

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Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 89) A general partnership consists of business partners who agree on the contribution of resources and skills to the new venture, and on the sharing of profits, losses, and management responsibilities. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 90) A limited partnership limits the liability of one partner for the negligence of another partner. A limited liability partnership consists of a general partner and one or more other partners who do not participate in day-to-day business management. Answer: False Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 91) A corporation is a legal entity that exists separate from its owners, protects the owners from personal liability, and gives the firm a life of its own beyond that of its owners. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 92) A benefit corporation is a legal entity that exists separate from its owners, and benefit the owners by limiting liability to the corporation. Answer: False Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 93) A benefit corporation is a corporate entity designed to benefit society, and must include their goals of social entrepreneurship and social enterprises in the bylaws of incorporation. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 94) A limited liability corporation is a hybrid business form combining advantages of the sole proprietorship, partnership, and corporation. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 95) For tax purposes, the limited liability corporation functions like a corporation, protecting the owners’ assets against claims made against the company. Test Bank

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Answer: False Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 96) For liability purposes, the limited liability corporation functions as a partnership in the case of multiple owners and as a sole proprietorship in the case of a single owner. Answer: False Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 97) Debt financing may require collateral that pledges business assets or personal assets, such as a home, to secure the loan in case of default. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 98) Debt financing involves borrowing money from another person, a bank, or a financial institution and repaying it over time with interest. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 99) Equity financing involve exchanging ownership shares in the business in return for outside investment monies. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 100) A limited partnership can raise capital through equity financing. Answer: False Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 101) Debt financing involves exchanging ownership shares for outside investment monies, whereas equity financing involves borrowing money to be repaid over time with interest. Answer: False Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 102) Equity financing is usually obtained from venture capitalists, which are companies that pool capital and make investments in new ventures in return for an equity stake in the business. Answer: True Test Bank

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Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 103) Venture capitalists tend to focus on relatively large investments and they usually take a management role to grow the business and add value as soon as possible. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 104) Sometimes an entrepreneurial venture becomes a candidate for an initial public offering in which shares in the business are sold to the public and begin trading on a major stock exchange. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 105) A successful initial public offering (IPO) enhances the value of the original investments of the venture capitalist and the entrepreneur. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Test Bank

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106) An angel investor is a wealthy individual who is willing to make an investment in return for equity in a new venture. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 107) The presence of angel investors is common and helpful in the very early start-up stage of an entrepreneurial venture, and as a result cause venture capitalists to have little interest in investing in the entrepreneurial venture. Answer: False Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 108) Crowdfunding is an online platform where entrepreneurs can obtain start-up financing. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 109) A disadvantage to crowdfunding is that investors may fall prey to fraudsters, resulting in a loss of trust for the method. Answer: True Test Bank

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Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 110) An advantage to crowdfunding is that the funds raised are not required to be paid back as it is a form of equity funding. Answer: True Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 111) The equity security model is a crowdfunding model currently available only in the United States. Answer: False Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Question type: Multiple Choice 112) The term ___ describes strategic thinking and risk-taking behaviour that results in the creation of new opportunities. a) business planning b) partnership c) entrepreneurship d) proxemics e) franchising Test Bank

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Answer: c Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 113) H. Wayne Huizenga believes that “An important part of ___ is a gut instinct that allows you to believe in your heart that something will work even though everyone else says it will not.” a) being an entrepreneur b) visioning c) business venturing d) strategic management e) small business success Answer: a Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 114) Entrepreneurship is risk-taking behaviour that results in ___. a) higher profits b) guaranteed success c) a new business plan d) new opportunities e) limited control Answer: b Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 115) A ___ entrepreneur is a risk-taking individual who acts to pursue opportunities others fail to recognize, or even view as problems or threats. Test Bank

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a) serial b) classic c) follow-through d) sustainer e) social Answer: b Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 116) The main characteristic of ___ an entrepreneur is that they start and run new ventures repeatedly, moving from one interest and opportunity to the next. a) sustainer b) classic c) serial d) first-mover e) necessity-based Answer: c Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 117) A _______ is a risk-taking individual who acts to pursue opportunities and situations others fail to recognize, or even view as problems or threats. a) classic entrepreneur b) social entrepreneur c) needs-based entrepreneur d) serial entrepreneur e) first mover entrepreneur Answer: d Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Test Bank

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Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 118) Which of the following is true about serial entrepreneurs? a) They are born, not made. b) They pursue innovations within the company that can change the organization in significant ways. c) They make large investments in new ventures in return for an equity stake in the business. d) They start and run businesses and non-profits over and over again, moving from one interest and opportunity to the next. e) They are primarily responsible for selling of shares of stock to the public at large. Answer: d Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 119) A first-mover advantage comes from a) making improvements to existing product lines. b) being the first to exploit a niche or enter a market. c) being the first to take a free ride on the opportunity created by a pioneer. d) the ability to poach trained personnel from an established business. e) taking risks while strategizing to improve an existing market. Answer: b Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 120) What is the requisite age for an entrepreneur to start a business? a) There is no requisite age for entrepreneurship. b) between 25-35 years old Test Bank

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c) over 45 years old d) the younger the better e) none of the above Answer: a Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 121) Which of the following is not a typical characteristics of entrepreneurs? a) Take calculated risks. b) Have a high need for power. c) Have an internal locus of control. d) Demonstrate self-confidence. e) Have a high tolerance for ambiguity. Answer: b Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 122) Which of the following is true of entrepreneurs? a) They believe that their destiny is beyond their control. b) They like to avoid risk. c) They have a high need for achievement. d) They are averse to autonomy. e) They have a low tolerance for ambiguity. Answer: c Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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123) Entrepreneurs include ___. a) founders of new business enterprises that achieve large-scale success b) people who buy a local franchise outlet, open a small retail shop, or go into a self-employed service business c) people who assume responsibility for introducing a new product or a change in operations in an existing organization d) all of the above e) only a and b above Answer: d Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 124) The characteristics that are typically associated with entrepreneurs include all the following except a) internal locus of control. b) high need for achievement. c) creativity. d) action orientation. e) self-confidence. Answer: c Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: easy AACSB: Analytic 125) Which one of the following statements does not accurately describe entrepreneurs? a) Entrepreneurs believe that they control their own destiny; they are self-directing and like autonomy. b) Entrepreneurs are persistent, hardworking, and willing to exert extraordinary efforts to succeed. c) Entrepreneurs are motivated to act collectively to accomplish challenging goals. d) Entrepreneurs are risk takers; they tolerate situations with high degrees of uncertainty. Test Bank

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e) Entrepreneurs feel competent, believe in themselves, and are willing to make decisions. Answer: c Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 126) Avery, a young college graduate, started a store for traditional musical instruments. Avery likes working independently, and not being directed by others. Which of the following personality traits of an entrepreneur is exhibited by Avery? a) internal locus of control b) high energy level c) high need for achievement d) tolerance for ambiguity e) flexibility Answer: a Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Application Difficulty: Medium AACSB: Analytic 127) Entrepreneurs share all the following characteristics except a) entrepreneurs believe that they control their own destiny; they are self-directing and like autonomy. b) entrepreneurs are risk minimizes since this is the best way to control their own destinies. c) entrepreneurs are motivated to act individually to accomplish challenging goals; they thrive on performance feedback. d) entrepreneurs try to act ahead of problems; they want to get things done quickly and do not want to waste valuable time. e) entrepreneurs want to be independent; they are highly self-reliant and want to be their own boss rather than to work for others. Answer: b Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Test Bank

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Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 128) There are certain myths about entrepreneurs. Which of the following is not one of these myths? a) Entrepreneurs are made, not born. b) Entrepreneurs are gamblers. c) Money is the key to entrepreneurial success. d) You must be young to be an entrepreneur. e) You must have a degree in business to be an entrepreneur. Answer: a Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 129) Entrepreneurs a) do not like situations with high degree of uncertainty. b) driven by excellence. c) have an external locus of control. d) are unwilling to admit problems and errors. e) do not like autonomy. Answer: b Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 130) Entrepreneurs tend to have distinguishable backgrounds and experiences, including all but which one of the following? a) Entrepreneurs typically come from families with strong corporate career backgrounds and seek independence from the corporate bureaucracies that dominated their parents. b) Entrepreneurs seek independence and the sense of mastery that comes with success. Test Bank

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c) Entrepreneurs tend to have prior career or personal experience in the business area or industry in which they develop an entrepreneurial venture. d) Entrepreneurs have strong interests in creative production and enterprise control. e) Entrepreneurs often try more than one business venture. Answer: a Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 131) Which of the following scenarios best demonstrates an entrepreneur who has a tolerance for ambiguity? a) Jean’s decision to modify a pre-existing problem-tackling strategy in his private firm b) Roger’s decision to hire an experienced manager to head his new branch in another state c) Karl’s decision to expand his private firm overseas despite the risk of facing cultural differences d) Sasha’s decision to quit her job to enter a partnership with a well-recognized firm e) Giselle’s decision to join her family’s well-established business Answer: c Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Application Difficulty: Medium AACSB: Analytic 132) ___ takes place because other employment options don’t exist. a) Classic entrepreneurship b) Serial entrepreneurship c) Intrapreneurship d) An initial public offering e) Necessity-based entrepreneurship Answer: e Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 133) According to Industry Canada, Canada’s (Small and Medium-sized Enterprises) SMEs have revenues that are ___% less than the average Canadian SME. a) 8 b) 13 c) 25 d) 33 e) 45 Answer: c Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 134) Charlie graduated from culinary school a few years ago, however Charlie has been unemployed for the past two months, and there are virtually no jobs currently available. Struggling to pay the bills Charlie realizes that something needs to happen. Noticing that there are no bakeshops anywhere in the neighborhood, Charlie opens a neighborhood bakeshop. Based on this information Charlie is a ____________. a) necessity-based entrepreneur. b) social entrepreneur. c) venture capitalist. d) intrapreneur. e) serial entrepreneur. Answer: a Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Application Difficulty: Medium AACSB: Analytic 135) Remy, a single parent of two very young children cannot work away from home. Remy decided to start a tutoring business and set up an office space in the basement. Which of the following kinds of entrepreneurship is this an example of? Test Bank

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a) serial entrepreneurship b) necessity-based entrepreneurship c) intrapreneurship d) Internet entrepreneurship e) social entrepreneurship Answer: b Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Application Difficulty: Medium AACSB: Analytic 136) ___ entrepreneurship is one way for people, including women and minorities who have hit the “glass ceiling” in their careers or are otherwise cut off from other employment choices, to strike out on their own and gain economic independence. a) Classic b) Necessity-based c) Follow-through d) Serial e) Sustainable Answer: b Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 137) Social entrepreneurs a) take risks and create enterprises whose missions is to help make lives better for underserved populations. b) bring buyers and sellers together for online business transactions and take a percentage from the sales. c) are wealthy individuals willing to invest in a new venture in return for an equity stake. d) pursue innovations that can change the organization in significant ways. e) start new ventures because they have few or no other employment and career options. Answer: a Test Bank

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Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 138) Colin and Becky started a garbage disposal and recycling program called “No More Trash” in their city, which has seen enormous growth in the last few years. The public waste management system has proved to be a failure as the authorities are overwhelmed by the influx of people that have recently moved to the area. Which of the following kinds of entrepreneurship is “No More Trash” an example of? a) serial entrepreneurship b) necessity-based entrepreneurship c) intrapreneurship d) Internet entrepreneurship e) social entrepreneurship Answer: e Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Application Difficulty: Medium AACSB: Analytic 139) Andrew Young, the founder of “The One Acre Fund,” provides low-interest loans and agricultural education to East African farmers. This is an example of a) a family business. b) social entrepreneurship. c) entrepreneurship. d) diversity through entrepreneurship. e) an entrepreneur with a high need for achievement. Answer: b Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic Test Bank

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140) Harley, a florist, realized the need for easily accessible organic compost in the neighbourhood that neighbourhood consists mainly of senior citizens who are unable to procure their own gardening supplies. Harley quickly established “We Compost,” a non-profit organization that delivers compost to each household in the neighbourhood. This is an example of ___. a) serial entrepreneurship b) classic entrepreneurship c) intrapreneurship d) necessity-based entrepreneurship e) social entrepreneurship Answer: e Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Application Difficulty: Medium AACSB: Analytic 141) A(n) ___ necessarily has between 5 and 100 employees, is independently owned and operated, and does not dominate its industry. a) small business b) social organization c) non-profit organization d) classic entrepreneurship e) Internet entrepreneurship Answer: a Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 142) Which of the following is not one of the defining characteristics of small businesses? a) a business with 100 or fewer employees b) a business that makes an annual profit of less than $100,000 c) a business that is independently owned Test Bank

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d) a business that is independently operated e) a business that does not dominate its industry Answer: b Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 143) A ___ is a business in which the owner of a business sells to another the right to operate the same business in another location. a) non-profit organization b) franchise c) joint venture d) family business e) wholly-owned subsidiary Answer: b Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 144) Which of the following is true about a franchise? a) It is one of the least common ways to get involved in a business. b) It runs under the franchisee’s name and guidance. c) The franchise parent receives a flat fee from the franchisee. d) It makes use of things like open source software, while containing costs, staying small, and keeping operations as simple as possible. e) It refers to a business in which material or goods are given to another person, but ownership is retained until the goods are sold. Answer: c Learning Objective 6.2: Describe how small businesses get started and common problems they face. Test Bank

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Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 145) A business model is a a) plan that describes the organizational structure of the company. b) plan for making a profit by generating revenues that are greater than costs. c) plan to determine the strengths and viability of a company’s organizational structure. d) model that depicts the detail of an organization’s workflow. e) model that lists the details of all the employees of an organization. Answer: b Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 146) A(n) ___ is a new and temporary venture that is trying to discover a profitable business model for future success. a) family business b) intrapreneurship c) start-up d) business incubator e) acquisition Answer: c Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 147) Lean start-ups a) aim to create a sophisticated product with a big budget. Test Bank

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b) focus on increasing their acquisitions. c) establish a complex and detailed work structure. d) aim to keep operations as simple as possible. e) focus on making lives better for underserved populations. Answer: d Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 148) One of the reasons small business start-ups can fail is due to a) lack of business expertise. b) strict financial controls. c) high ethical standards. d) slow growth. e) strategic leadership. Answer: a Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 149) Industry Canada statistics on small business failure rates indicate that ___ of new businesses fail in their first five years of operation. a) less than 20 percent b) 20 to 40 percent c) about half d) 60 to 80 percent e) more than 80 percent Answer: c Learning Objective 6.2: Describe how small businesses get started and common problems they face. Test Bank

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Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 150) Which of the following is not a reason for the high failure rate of new businesses? a) poor financial control b) growing too fast c) lack of experience d) poor advertising e) ethical failure Answer: d Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 151) All the following are reasons for the high failure rate of new businesses except a) not having sufficient know-how to run a business in the chosen market or area. b) not having expertise in the essentials of business operations, including finance, purchasing, selling and production. c) not taking the time to craft a vision and mission, and formulate, revise, and properly implement strategy. d) not keeping track of the numbers and failure to control business finances. e) not taking the time to adequately promote the product. Answer: e Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 152) Monroe decided to open a general hardware store in Winnipeg. Monroe had no previous retail management experience however Monroe does have ten years of experience as a retail Test Bank

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clerk. Unfortunately, Monroe was unable to cope with the demands of running a store, and after several bad decisions, finally had to shut the store down. What was likely the main reason for the failure of Monroe’s business? a) lack of experience b) insufficient financing c) lack of commitment d) ethical failure e) growing too fast Answer: a Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Application Difficulty: Medium AACSB: Analytic 153) ___ implies that a business owner does not have the skillsets required in the essentials of business operations, including finance, purchasing, selling, or production. a) Lack of experience b) Insufficient financing c) Lack of expertise d) Ethical failure e) Growing too fast Answer: c Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 154) Which of the following best describes a lack of commitment? a) not having enough funding to maintain operations while still building the business and gaining access to customers and markets b) not having sufficient know-how to run a business in the chosen market or geographical area c) not having expertise in the essentials of business operations, including finance, purchasing, selling, and production Test Bank

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d) falling prey to the temptations of fraud, deception, and embezzlement e) not devoting enough time to the requirements of running a competitive business Answer: e Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 155) Which of the following best describes lack of strategy and strategic leadership? a) not taking the time to craft a vision and mission, nor to formulate and properly implement a plan b) not having enough funding to maintain operations while still building the business and gaining access to customers and markets c) not having sufficient know-how to run a business in the chosen market or geographical area d) falling prey to the temptations of fraud, deception, and embezzlement e) not having expertise in the essentials of business operations, including finance, purchasing, selling, and production Answer: a Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 156) Canadian Business magazine provided a list of reasons why small businesses fail. Which of the following is one of those reasons? a) Too many partners b) Growing too fast c) Relying on customers for financial needs d) Being at least ten times better than the competition e) Having too much experience Answer: d Learning Objective 6.2: Describe how small businesses get started and common problems they Test Bank

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face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 157) All the following statements about family businesses are accurate except a) Family businesses are responsible for 60% of the Canadian GDP. b) Family businesses are often impacted by intergenerational conflicts between family members. c) Over 50% of family businesses survive to the second (next) generation. d) The largest percentage of private businesses operating in Canada are family businesses. e) Family businesses have the same problems as other small and medium sized businesses. Answer: c Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 158) According to the text, a family business is an ideal situation when everything goes right. Which of the following is not one of the aspects of everything going right with a family business? a) Everyone working together. b) Everyone sharing values. c) Everyone sharing a common goal. d) Everyone enjoying equal shares in the financial success of the business. e) Everyone knowing that what they do benefits the family. Answer: d Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 159) The family business feud occurs when members of the controlling family get into disagreements about ___. Test Bank

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a) work responsibilities b) business strategy c) operating approaches d) finances e) all of the above Answer: e Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 160) In family businesses, ___ refers to the problem that arises when members of the family have major disagreements over how the business should be run. a) budget deficit b) debt financing c) an ethical dilemma d) a reverse culture shock e) a family business feud Answer: e Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 161) A(n) ___ plan describes how the leadership transition and related financial matters will be handled when the time for changeover arrives. a) change map b) transition map c) transformation plan d) succession plan e) operational plan Answer: d Test Bank

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Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 162) Which of the following descriptions of the succession problem in family businesses is inaccurate? a) The succession problem involves transferring leadership from one generation to the next. b) A key management issue in the succession problem concerns how the assets will be distributed and who will run the business when the current head leaves. c) The succession problem should be addressed ahead of time with a succession plan. d) The clear majority of family business with succession plans will survive well beyond the second generation. e) Since not all family businesses have succession plans, many will not survive beyond the first generation. Answer: d Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 163) Ripley and Charley are both general managers at Alton & Sons, their father’s business. After a heart attack, their father decides to retire and is now faced with the challenge of choosing between one of his two equally capable children to replace him in the business. Which type of problem related to family businesses is the father facing? a) family business integration b) succession problem c) family disagreement d) role confusion e) family business feud Answer: b Learning Objective 6.2: Describe how small businesses get started and common problems they face. Test Bank

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Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Application Difficulty: Medium AACSB: Analytic 164) Lenci opened a chain of four restaurants, each of which are run by different members of the family. Lenci has outlined the vision, rules, and regulations for the restaurants and is considering expanding into online ordering for takeout as well as a few other opportunities. For the restaurants to continue to operate successfully, Lenci and the entire family need to develop a(n) a) business plan. b) marketing plan. c) expansion plan. d) succession plan. e) milestone plan. Answer: d Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Application Difficulty: Medium AACSB: Analytic 165) ___ offer space, shared services, and advice to help get small businesses started. a) Business councillors b) Business incubators c) Succession plans d) Social advisors e) Internet entrepreneurships Answer: b Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 166) The goal of business incubators is to Test Bank

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a) ensure that established businesses retain their competitive advantage. b) aid third generation family businesses resolve family business feuds. c) formulate a succession plan for established family businesses. d) increase the survival rates for new start-ups. e) establish social enterprises. Answer: d Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 167) Which of the following is true of small business development centres? a) They concentrate on establishing social enterprises. b) They exclusively support all non-profit organizations. c) They are supported by the Canadian government’s Business Development Program or BDP. d) They offer guidance to entrepreneurs trying to invest in Canadian mergers and acquisitions. e) They aid in the development of the public sector. Answer: c Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 168) The role of the Business Development Program (BDP) include all of the following except? a) provide guidance to existing and prospective business owners on how to set up and manager their business. b) assist entrepreneurs in starting up, growing and/or modernizing their business. c) provide interest-free loans to small and medium sized businesses in specific business sectors d) provide assistance in developing a strategic marketing campaign e) all of the above are part of the role of the BDP Answer: d Test Bank

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Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 169) Important issues in new venture creation include all the following except a) Does the entrepreneur have a good idea and the courage to give that idea a chance? b) Is the entrepreneur prepared to meet and master the test of strategy and competitive advantage? c) Can the entrepreneur identify a market niche that is being missed by other established firms? d) Can the entrepreneur generate first-mover advantage? e) Can the entrepreneur find appropriate safety nets to protect the business from marketplace challenges? Answer: d Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 170) A first-mover advantage comes from ___. a) being first to earn a profit b) being first to exploit a niche or enter a market c) being first to relocate key business operations d) being first to outsource non-core business activities e) being first within the industry to embrace social responsibility Answer: c Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

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171) Which of the following are the three stages common to the life cycles of entrepreneurships? a) birth stage, maturity state, and IPO stage. b) birth stage, breakthrough stage, and IPO stage. c) birth stage, maturity stage, and exiting stage. d) birth stage, breakthrough stage, and maturity stage. e) breakthrough stage, maturity stage, and IPO stage. Answer: d Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 172) According to the life cycle of entrepreneurial firms, the birth stage signifies the stage in which the a) entrepreneur recognizes a niche in the market and formulates an idea to take advantage of it. b) entrepreneur experiences the advantages of market success and financial stability. c) entrepreneur faces the continuing management challenge of remaining competitive in a changing environment. d) business model begins to work well, growth is experienced, and the complexity of managing the business operation expands significantly. e) entrepreneur struggles to get the new venture established and survive long enough to test the viability of the underlying business model in the marketplace. Answer: e Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 173) According to the life cycle of entrepreneurial firms, the breakthrough stage signifies the stage in which the a) entrepreneur recognizes a niche in the market and formulates an idea to take advantage of it. b) entrepreneur experiences the advantages of market success and financial stability. c) entrepreneur faces the continuing management challenge of remaining competitive in a Test Bank

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changing environment. d) business model begins to work well, growth is experienced, and the complexity of managing the business operation expands significantly. e) entrepreneur struggles to get the new venture established and survive long enough to test the viability of the underlying business model in the marketplace. Answer: d Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 174) According to the life cycle of entrepreneurial firms, the maturity stage signifies the stage in which the a) entrepreneur struggles to get the new venture established and survive long enough to test the viability of the underlying business model in the marketplace. b) business model begins to work well, growth is experienced, and the complexity of managing the business operation expands significantly. c) entrepreneur recognizes a niche in the market and formulates an idea to take advantage of it. d) entrepreneur experiences the advantages of market success and financial stability while facing the continuing management challenge of remaining competitive in a changing environment. e) entrepreneur formulates a plan for making a profit by generating revenues that are greater than the costs of doing business. Answer: d Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 175) Activities that focus on working on finances, becoming profitable, and growing occur in the ___ stage of the life cycle of entrepreneurial firms. a) birth b) breakthrough c) growth d) maturity Test Bank

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e) decline Answer: b Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 176) In the ___stage of the life cycle of entrepreneurial firms, the entrepreneur experiences the advantages of market success and financial stability, while also facing continuing challenges of meeting the needs for professional management skills. a) birth b) breakthrough c) growth d) maturity e) decline Answer: d Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 177) Activities that focus on refining the strategy, continuing growth, and managing for success occur in the ___ stage of the life cycle of entrepreneurial firms. a) birth b) breakthrough c) growth d) maturity e) decline Answer: d Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Test Bank

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Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 178) Reece is an entrepreneur and at the current stage in which the company is, Reece’s main concerns if there will be enough customers and money to remain in business. Based on this information, Reece’s company is in the a) birth stage. b) breakthrough stage. c) maturity stage. d) stagnant stage. e) failure stage. Answer: a Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Application Difficulty: Medium AACSB: Analytic 179) ___ leadership brings the venture into being and sees it through the early stages of an enterprise. a) Transactional b) Entrepreneurial c) Bureaucratic d) Transformational e) Democratic Answer: b Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 180) ___ leadership manages and leads the venture into maturity as an ever-evolving and stillgrowing enterprise. Test Bank

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a) Strategic b) Entrepreneurial c) Bureaucratic d) Transformational e) Democratic Answer: a Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 181) A(n) ___ plan describes the direction for a new business and the financing needed to operate it. a) succession b) business c) structural d) operational e) feasibility Answer: b Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 182) A(n) ___ describes the direction for a new business and the financing needed to operate it. a) competitor analysis b) business plan c) operating plan d) investment strategy e) balance sheet Answer: b Test Bank

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Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 183) Which of the following items is not usually included in a business plan? a) Executive summary b) Company description c) Marketing strategy d) Staffing description e) Resource plan Answer: e Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 184) A business plan should include all the following items except a) overview of business purpose and highlight of key elements of the plan. b) description of the organization’s decision-making and communications systems. c) nature of the industry, including economic trends, important legal or regulatory issues, and potential risks. d) product characteristics, distribution, promotion, pricing, and market research. e) amount of funds needed to run the business, amount available, and amount requested from new sources. Answer: b Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic

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185) In a business plan, the overview of the business purpose and the business model for making money is contained in the ___. a) market strategy b) market description c) company description d) industry analysis e) executive summary Answer: e Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 186) In a standard business plan, an organization’s mission, ownership details, and, legal forms are typically included in the ________. a) market strategy b) executive summary c) company description d) industry analysis e) staffing description Answer: c Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 187) In a business plan, the marketing strategy contains the a) description of the size of market, competitor strengths and weaknesses, and five-year sales goals. b) overview of the business purpose and the business model for making money. c) description of the management and staffing skills needed and available, compensation, and human resource systems. d) details of the product characteristics, distribution, promotion, pricing, and market research. Test Bank

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e) description of cash flow projections for one to five years, break-even points, and phased investment capital. Answer: d Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 188) In a business plan, the operations description contains the a) description of cash flow projections for one to five years, break-even points, and phased investment capital. b) details of the product characteristics, distribution, promotion, pricing, and market research. c) manufacturing or service methods, supplies and suppliers, and control procedures used. d) description of the management and staffing skills needed and available, compensation, and human resource systems. e) overview of the business purpose and the business model for making money. Answer: c Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 189) In a business plan, ___ detail the amount of funds needed to run the business, amount available, and amount requested from new sources. a) capital needs b) milestones c) performance needs d) liability needs e) capability needs Answer: a Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Test Bank

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Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 190) In a business plan, the ___ provides details of cash flow estimate for one to five years, break-even points, and phased investment capital. a) staffing description b) financial projection c) capital need d) milestones e) operations description Answer: b Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 191) Before starting on a new venture, Kingsley writes down the specifics of the new venture ideas, the amount of capital needed and different options on how to obtain and repay the capital, and future business operations and strategies. Kingsley is preparing a ________. a) succession plan b) business portfolio c) business plan d) competitive analysis e) mission statement Answer: c Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Application Difficulty: Medium AACSB: Analytic 192) Which of the following forms of ownership holds the business owner or owners personally Test Bank

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liable for business debts and claims? a) sole proprietorship b) corporation c) limited liability partnership d) benefit corporation e) limited liability corporation Answer: a Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 193) A ___ consists of business partners who agree on the contribution of resources and skills to the new venture, and on the sharing of profits, losses, and management responsibilities. a) professional partnership b) general partnership c) limited partnership d) unlimited partnership e) limited liability partnership Answer: b Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 194) A ___ consists of a general partner and one or more “limited” partners who do not participate in day-to-day management of the business. a) professional partnership b) general partnership c) limited partnership d) unlimited partnership e) limited liability partnership Test Bank

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Answer: c Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 195) A ___ limits the liability of one partner for any negligence committed by another partner. a) professional partnership b) general partnership c) limited partnership d) unlimited partnership e) limited liability partnership Answer: e Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 196) A ___, common among professionals such as accountants and attorneys, limits the liability of one partner for the negligence of another. a) general partnership b) sole proprietorship c) limited partnership d) limited liability corporation e) limited liability partnership Answer: e Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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197) A ___ is a legal entity that exists separate from its owners, protects the owners from personal liability, and gives the firm a life of its own beyond that of its owners. a) sole proprietorship b) partnership c) corporation d) limited liability partnership e) angel investor Answer: c Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 198) A ___ is a legal entity that exists separate from its owners, protects the owners from personal liability, and whose goal is to provide a benefit to society and profits to its owners. a) public corporation b) limited liability corporation c) private corporation d) cooperative e) benefit corporation Answer: e Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 199) A ___ is a hybrid business form combining advantages of the sole proprietorship, partnership, and corporation. a) sole proprietorship b) partnership c) corporation d) limited liability corporation Test Bank

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e) venture capitalist Answer: d Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 200) Casey has a passion for designing clothes and decides to open a clothing store. The needed start-up capital is raised by taking personal loans from family and friends, for which Casey will pay interest each year. Casey’s business is an example of a ___. a) proprietorship b) corporation c) limited liability partnership d) general partnership e) limited liability corporation Answer: a Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Application Difficulty: Medium AACSB: Analytic 201) In the context of business ownerships, a ___ is established when two or more people agree to contribute resources to start and operate a business together. a) corporation b) limited liability corporation c) partnership d) social enterprise e) business incubator Answer: c Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 202) Erik and Elsa own a pet grooming business. Erik manages the financial responsibilities while Elsa manages the customers. This is an example of a ___. a) sole proprietorship b) general partnership c) corporation d) limited liability partnership e) limited liability corporation Answer: b Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Application Difficulty: Medium AACSB: Analytic 203) “Sheng’s Designs” is an architectural firm owned by Sheng and four outside investors. Each of the four investors provided an initial investment of $20,000. Sheng is the only one of the group who handles the day-to-day business management of the firm. In it’s first year of operations the firm reported a loss of $200,000. Sheng will be taking a loss of $120,000. This is an example of a ___. a) limited partnership b) general partnership c) corporation d) limited liability corporation e) sole proprietorship Answer: a Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Application Difficulty: Medium AACSB: Analytic

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204) Which of the following is true about a corporation? a) It combines the advantages of the other forms—sole proprietorship, partnership, and limited liability corporation. b) Only a for-profit business can be registered as a corporation. c) It exists separately from its owners. d) For tax purposes, it functions as a partnership. e) For liability purposes, it functions as a partnership. Answer: c Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 205) Which of the following is true of a limited liability corporation? a) It is commonly identified by the “Ltd.” designation in a name. b) It consists of a general partner and one or more “limited” partners who do not participate in day-to-day business management. c) The business owner is personally liable for business debts and claims. d) For tax purposes, it functions as a sole proprietorship in the case of a single owner. e) It involves the owners going into debt by borrowing money from another person, bank, or financial institution. Answer: d Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 206) For liability purposes, a limited liability corporation functions like a ___ and protects the assets of owners against claims made against the company. a) sole proprietor b) corporation c) general partnership d) limited partnership Test Bank

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e) limited liability partnership Answer: b Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 207) Three friends have opened a new café each of whom have contributed $1,500 toward startup costs and have agreed on dividing profits and losses equally. The legal structure for the company can best be described as a a) proprietorship. b) partnership. c) trade alliance. d) corporation. e) benefit corporation. Answer: b Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Application Difficulty: Medium AACSB: Analytic 208) The major source(s) of outside financing for an entrepreneurial start-up are ___. a) debt financing and equity financing b) governmental grants c) foundation grants d) alternatives a and b e) alternatives a and c Answer: a Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Comprehension Test Bank

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Difficulty: Easy AACSB: Analytic 209) ___ involves obtaining capital from another person, bank, or financial institution with agreed upon terms for repayment. a) Debt financing b) Risk management c) Securitization d) Debt consolidation e) Equity financing Answer: a Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 210) ___ involves obtaining capital by selling shares in the business to outside investors in return for their investments. a) Debt consolidation b) Equity financing c) Debt financing d) Securitization e) Risk management Answer: b Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 211) ___ facilitates large investments in new ventures in return for an equity stake in the business. a) State-directed financing Test Bank

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b) Entrepreneurial capitalism c) Venture capitalism d) Debt financing e) Oligarchic capitalism Answer: c Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 212) ___ tend to focus on relatively large investments and they usually take a management role to grow the business and add value as soon as possible. a) Entrepreneurial support systems b) Investment bankers c) Brokerage firms d) Venture capitalists e) Pension funds Answer: d Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 213) Vancouver-based Willowest, with manufacturing facilities in China, has become a recognized supplier of hospitality furnishing, including upholstered seating, linens, towels, and bathrobes. Consider that Shi Yu Zhang is interested in expanding the business globally but needs a large investor and is willing to offer the investor a seat on Willowest’s board of directors. What type of investor is Shi Yu looking for? a) an angel investor b) a silent partner c) a financial institution d) a venture capitalist e) a corporate investor Test Bank

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Answer: d Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Application Difficulty: Medium AACSB: Analytic 214) When a corporation’s shares are first sold to the public and begin trading on a stock exchange, it is referred to as ___. a) venture capitalism b) equity financing c) angel investing d) an initial public offering e) an Internet entrepreneurship Answer: d Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 215) A successful ___ enhances the value of the original investments of the venture capitalist and the entrepreneur. a) leveraged buyout b) risky investment shift c) equity takeover d) initial public offering e) employee stock ownership plan Answer: d Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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216) ___ are wealthy individuals willing to invest in a new venture in return for an equity stake. a) Limited liability partners b) Sole proprietors c) General partners d) Debt financers e) Angel investors Answer: e Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 217) Which of the following statements about angel investors is/are accurate? a) When venture capital is not available to the entrepreneur, the angel investor is a financing option. b) Angel investors are helpful in the very early start-up stage of an entrepreneurial venture. c) The presence of angel investors can help attract venture capital funding that might not be available otherwise. d) all of the above e) none of the above Answer: d Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 218) Sloan needed business financing however was rejected by many financing companies. Finally, one of Sloan’s wealthy friends became interested in the business and gave Sloan a substantial amount for a share in the venture. Which of the following best represents I Sloan’s source of finance? a) initial public offering Test Bank

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b) revolving credit c) debt financing d) angel investor e) loan shark Answer: d Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Application Difficulty: Medium AACSB: Analytic 219) Which of the following is not a crowdfunding model that is legally available in Canada? a) Reward model b) Equity security model c) Pre-purchase model d) Cost model e) Donation model Answer: d Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 220) Which of the following is an advantage to raising capital through crowdfunding? a) The amount raised must be paid back, however the terms are always more lenient than traditional debt financing. b) The amount raised need never be paid back as crowdfunding is a type of equity financing. c) Because crowdfunding is a form of venture capitalization, the business owner will lose an ownership share in the business. d) Crowdfunding does not put the potential investor at risk of exposure to fraudsters and scam artists. e) The amount raised must be paid back, however interest may not be charged on the amount raised. Answer: b Test Bank

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Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Question type: Essay 221) List and briefly describe the attitudes and personal interests of entrepreneurs. Answer: The typical attitudes and personal interests of entrepreneurs are: • Internal locus of control: Entrepreneurs believe that they are in control of their own destiny; they are self-directing and like autonomy. • High energy level: Entrepreneurs are persistent, hardworking, and willing to exert extraordinary efforts to succeed. • High need for achievement: Entrepreneurs are motivated to accomplish challenging goals; they thrive on performance feedback. • Tolerance for ambiguity: Entrepreneurs are risk takers; they tolerate situations with high degrees of uncertainty. • Self-confidence: Entrepreneurs feel competent, believe in themselves, and are willing to make decisions. • Passion and action orientation: Entrepreneurs try to act ahead of problems; they want to get things done and not waste valuable time. • Self-reliance and desire for independence: Entrepreneurs want independence; they are selfreliant; they want to be their own bosses, not work for others. • Flexibility: Entrepreneurs are willing to admit problems and errors, and are willing to change a course of action when plans aren’t working. Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 222) Describe the key personal traits and characteristics of entrepreneurs. Which three of these traits and characteristics do you think are the most important for entrepreneurial success and why? Answer: The personal traits and characteristics that are typically associated with entrepreneurs are the following: Internal locus of control – entrepreneurs believe that they control their own destiny; they are selfTest Bank

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directing and like autonomy. High energy level – entrepreneurs are persistent, hardworking, and willing to exert extraordinary efforts to succeed. High need for achievement – entrepreneurs are motivated to act individually to accomplish challenging goals; they thrive on performance feedback. Tolerance for ambiguity – entrepreneurs are risk takers; they tolerate situations with high degrees of uncertainty. Self-confidence – entrepreneurs feel competent, believe in themselves, and are willing to make decisions. Passion and action orientation – entrepreneurs try to act ahead of problems; they want to get things done and not waste valuable time. Self-reliance and desire for independence – entrepreneurs want independence; they are selfreliant; they want to be their own boss, not work for others. Flexibility – entrepreneurs are willing to admit problems and errors, and to change a course of action when plans are not working. Each student should identify the two or three personal traits characteristics they think is most important and provide appropriate supporting reasons. Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Evaluation Difficulty: Hard AACSB: Analytic 223) Briefly describe the backgrounds and experiences that tend to distinguish entrepreneurs from other people. Answer: Entrepreneurs tend to have backgrounds and experiences that differ from other people. The key elements of entrepreneurs’ backgrounds and experiences are the following: Entrepreneurs tend to have parents who were entrepreneurs or self-employed. Entrepreneurs tend to be raised in families that encourage responsibility, initiative, and independence. Entrepreneurs often try more than one business venture. Entrepreneurs tend to have prior career or personal experience in the business area or industry in which they develop an entrepreneurial venture. Most entrepreneurs start their businesses between the ages of 22 and 45; however, age is no barrier. Entrepreneurs have strong interests in creative production and enterprise control. Entrepreneurs seek independence and the sense of mastery that comes with success. Learning Objective 6.1: Define entrepreneurship and identify characteristics of entrepreneurs. Section Reference 6.1: The Nature of Entrepreneurship Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 224) Your textbook provided a number of reasons for why small businesses often fail. List and describe three (3) of the reasons, and then briefly discuss what a small business owner can do to mitigate that reason for failure. Answer: The text provides two sets of reasons for small business failure, and a student may provide either or a combination of the two (as some of the reasons overlap). One set of reasons for small business failure include lack of experience, lack of expertise, lack of strategy and strategic leadership, poor financial control, growing too fast, insufficient commitment, and ethical failure. The second set of reasons is that provided by Canadian business magazine. Those reasons include inexperience, no value proposition, no “x10”, relying on investors rather than customers, bad partners, copycat firms, premature scaling, the economy, not getting outside and ARPU and COGS. A brief explanation for each should be provided by the student as well. The student may present a discussion on business incubators and small business development centres, however if so the discussion must be linked to the specific reasons for failure presented. are resources that entrepreneurs can draw and which can help them to avert failure. A business incubator is a special facility that offers space, a variety of shared administrative services, and management advice to help small businesses get started. Small business development centres offer guidance to entrepreneurs and small business owners –– actual and prospective ¾ in how to set up and successfully run a business operation. An example answer may be ‘poor financial control’ which can be described as the owner not knowing the business’s cash position on a timely basis or is unable to keep track of revenues and expenses. A possible solution to the problem might be to either hire a qualified accountant, either on a full-time or part-time basis or take basic accounting and/or financial management courses. Learning Objective 6.2: Describe how small businesses get started and common problems they face. Section Reference 6.2: Entrepreneurship and Small Business Bloom’s: Evaluation Difficulty: Hard AACSB: Analytic 225) Briefly describe what a business plan is and the various sections that should be included in a complete business plan. Answer: A business plan describes the direction for a new business and the financing needed to operate it. Although there is no single template, it is generally agreed that a good business plan includes an executive summary, covers certain business fundamentals, is well organized with Test Bank

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headings and easy to read, and runs no more than about 20 pages in length. Here is a sample business plan outline. • Executive summary—overview of the business purpose and the business model for making money. • Industry analysis—nature of the industry, including economic trends, important legal or regulatory issues, and potential risks. • Company description—mission, owners, and legal form. • Products and services description—major goods or services, with competitive uniqueness. • Market description—size of market, competitor strengths and weaknesses, five-year sales goals. • Marketing strategy—product characteristics, distribution, promotion, pricing, and market research. • Operations description—manufacturing or service methods, supplies and suppliers, and control procedures. • Staffing description—management and staffing skills needed and available, compensation, and human resource systems. • Financial projection—cash flow projections for one to five years, break-even points, and phased investment capital. • Capital needs—amount of funds needed to run the business, amount available, and amount requested from new sources. • Milestones—a timetable of dates showing when key stages of the new venture will be completed. Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 226) There are a number of reasons why one needs a business plan. List and briefly describe four of the reasons that were presented in your textbook. Answer: Here are some more reasons why you need a business plan. • • • • • Test Bank

It forces you to be clear about your business model—how your business will make money. It makes you identify and confront the potential strengths and weaknesses of your proposed business. It makes you examine the market potential for your business’s products or services. It makes you examine the strengths and weaknesses of the competitors for your proposed business. It helps you clarify the mission and key directions for the business, helping you to stay focused. Chapter 6 – Entrepreneurship and New Ventures

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• •

It helps you determine how much money will be needed to launch and operate the business. It helps you communicate more confidently and credibly with potential lenders and investors.

Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 227) Describe the life cycle of entrepreneurial firms and the management challenges that occur at each stage. Answer: The life cycle of entrepreneurial firms follows a predictable pattern of birth, breakthrough, and maturity. In the birth stage, the entrepreneur struggles to get the new venture established and survive long enough to test the viability of the underlying business model in the marketplace. The key challenges in the birth stage are establishing the firm, getting customers, and finding financing. In the breakthrough stage, the business model begins to work well, growth is experienced, and the complexity of managing the business operation expands significantly. The key challenges in the breakthrough stage are working on finances, becoming profitable, and growing. In the maturity stage, the entrepreneur experiences the advantages of market success and financial stability, while also facing continuing management challenges of remaining competitive in a changing environment. The key challenges in the maturity stage are refining the strategy, continuing growth, and managing for success. Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 228) Briefly describe what a business partnership is, including the various types of business partnerships and the advantages and disadvantages of this form of business organization. Answer: A partnership is formed when two or more people agree to contribute resources to start and operate a business together. It should be backed by a legal and written partnership agreement. Business partners agree on the contribution of resources and skills to the new venture, and on the sharing of profits and losses. The simplest and most common form is a general partnership where the partners share management responsibilities. A limited partnership Test Bank

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consists of a general partner and one or more “limited” partners who do not participate in day-today business management. They share in the profits, but their losses are limited to the amount of their investment. A limited liability partnership, common among professionals such as accountants and attorneys, limits the liability of one partner for the negligence of another. Advantages include: easier to form than a corporation; flexibility in that there are different forms of partnerships to suit individual needs; low cost to form Disadvantages include: limited life as the partnership ceases to exist when a partner leaves or a new partner is taken on; a partnership agreement can be a costly document to create and update; depending on the form of partnership the partners may be liable for debts of the partnership and actions of the other partners. Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Solution: 229) Many businesses are structured in the form of sole proprietorships. What is a sole proprietorship? Provide an example of a business that would commonly be operated as a sole proprietorship. What are the advantages and disadvantages of operating as a sole proprietorship? Answer: A sole proprietorship is simply an individual or a married couple pursuing business for a profit. This does not involve incorporation. One does business, for example, under a personal name. Example: A convenience store, a boutique Advantages: Ease of start/end, you are your own boss, Retain all profit, No special taxes Disadvantages: Unlimited liability but limited financial resources, Overwhelming time commitment, Limited growth and lifespan Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 230) Family businesses represent the largest percentage of businesses operating worldwide. In Test Bank

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the North American economy family businesses employ millions of employees and generate more than a trillion dollars of sales each year. From the perspective of shareholders in a family business, what is an advantage of this kind of company? Also, identify potential disadvantages for shareholders in a family business. Answer: A family business is almost an ideal situation where everyone is working together, sharing values and a common goal since family members know that what they do benefits the family. Disadvantages include: Family business feud may occur when family members have major disagreements over how the business should be run. Complex emotional issues between personal and business issues in family businesses may make decision-making around management succession/control issues a lot more challenging. Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 231) What is a corporation? What advantages does a corporate form offer over other forms of business organization? Answer: A corporation, commonly identified by the “Inc.” or “Ltd.” designation in a name, is a legal entity that is chartered by the state and exists separately from its owners. The corporation can be for-profit, such as Microsoft, Inc., or non-profit, such as Count-Me-In, Inc.—a firm featured early in the chapter for helping women entrepreneurs get started with small loans. The corporate form offers two major advantages: (1) It grants the organization certain legal rights (e.g., to engage in contracts), and (2) the corporation becomes responsible for its own liabilities. This separates the owners from personal liability and gives the firm a life of its own that can extend beyond that of its owners. Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 232) Describe what equity financing is and what some of the advantages and disadvantages are of this form of capital. Test Bank

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Answer: Equity financing is an alternative to debt financing. It involves giving ownership shares in the business to outside investors in return for their cash investments. This money does not need to be paid back. It is an investment, and the investor assumes the risk for potential gains and losses. The equity investor gains some proportionate ownership control in return for taking that risk. Learning Objective 6.3: Explain how entrepreneurs plan, legally structure, and fund new business ventures. Section Reference 6.3: New Venture Creation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Solution:

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CHAPTER 7 DATA AND DECISION MAKING Question type: True/False 1) The three career competency “must-haves” are computer competency, information competency and analytical competency. Answer: False Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 2) Computer competency is the ability to utilize computers and information technology to locate, retrieve, evaluate, organize, and analyze information for decision making. Answer: False Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 3) Information competency is the ability to use technology to locate, retrieve, evaluate, organize, and analyze information for decision making. Answer: True Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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4) Analytical competency is the ability to understand new technologies and to use them to their best advantage. Answer: False Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 5) The raw facts and observations made useful and meaningful for decision making is called information. Answer: True Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 6) Timeliness, quality, completeness, relevance, and understandability are qualities of useful information. Answer: True Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 7) Information that is clear and easily understood by the user and is free from unnecessary detail is considered relevant information. Answer: False Test Bank

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Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 8) The management process of planning, organizing, leading, and controlling is ultimately driven by information. Answer: True Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 9) A management information system is designed to use information technology to meet the specific information needs of managers as they make a variety of decisions on a dayto-day basis. Answer: True Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 10) Management information systems use the latest in information technology to collect, organize, and distribute data in such a way that they become meaningful as information. Answer: True Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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11) C-suite refers to an application that assists organizations in collecting, organizing and sharing data within the organization. Answer: False Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 12) Internal information flows upward in the form of goals, instructions and feedback. Answer: False Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 13) At the organization’s boundaries, information in the external environment is accessed and managers use this intelligence information to deal effectively with competitors and key stakeholders. Answer: True Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 14) Organizations send public information to stakeholders and the external environment for image building, financial reporting, and product advertising. Answer: True Test Bank

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Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 15) Information technology is changing organizations by breaking down traditional barriers that prevent people and departments from communicating and sharing information. Answer: True Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 16) Neither supply chain management nor customer relationship management can be improved with information technology (IT) connections. Answer: False Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 17) Data mining is the process of analyzing data in order to produce information that is useful to decision-makers. Answer: True Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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18) The Five “Vs” of big data are Volume, Variety, Veracity, Velocity and Value. Answer: True Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 19) If big data has limited value, it is irrelevant if the other four “Vs” are satisfied.. Answer: True Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic

20) Business intelligence sorts and reports data in such a way as to provide competitive, big picture and dashboard information. Answer: False Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 21) Because of the increasing use of information technology, individuals and teams can communicate more easily and share information, and coordination and control among decision makers can be increased. Answer: True Test Bank

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Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloomcode: Comprehension Difficulty: EAsu AACSB: Analytic 22) Because of the growth of management information systems, more managers are needed to coordinate the flow, sharing, and processing of information. Answer: False Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 23) Problem solving is the process of identifying a discrepancy between actual and desired states, and then taking appropriate corrective action. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 24) Problem solving and decision making are dependent on quality information being available to the right people at the right time. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Test Bank

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25) A performance threat occurs when the actual performance is less than desired or is moving in an unfavourable direction. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 26) A performance deficiency occurs when an actual situation turns out either better than anticipated or offers the potential to be better than anticipated. Answer: False Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 27) A performance opportunity occurs when actual performance is less than desired performance. Answer: False Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 28) A performance opportunity offers a chance for a better future if the right steps are taken. Answer: True Test Bank

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Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 29) Managers who ignore information that would otherwise signal the presence of a problem are problem deniers. Answer: False Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 30) Problem avoiders deal reasonably well with performance threats but miss many performance opportunities. Answer: False Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 31) Problem solvers are managers who try to solve problems but only when forced to by the situation. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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32) Problem seekers actively process information and constantly look for problems to solve or opportunities to explore. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 33) Problem avoiders ignore information that would otherwise signal the presence of a problem; problem seekers try to solve problems as they arise; and problem solvers actively process information and look for problems to solve or opportunities to explore. Answer: False Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 34) A person who approaches problems in a rational, step-by-step, and analytical fashion is engaging in systematic thinking. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 35) Systematic thinkers are likely to deal with many aspects of a problem simultaneously, consider hunches, and jump quickly from one issue to another. Answer: False Test Bank

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Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 36) Systematic thinkers are likely to break a complex problem into smaller components, make a plan before taking action, and search for information to facilitate problem solving in a step-by-step fashion. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 37) Intuitive thinking tends to work best in situations where facts are limited and few decision precedents exist. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 38) Intuitive thinkers will broadly and quickly evaluate a problem situation, explore and abandon alternatives very quickly, and consider a number of alternatives and options simultaneously. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 39) Multidimensional thinking is the capacity to view many problems at once, in relationship to one another, and across short-term and long-term horizons. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 40) Strategic opportunism is the ability to remain focused on long-term objectives while being flexible in dealing with short-term problems and opportunities in a timely manner. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 41) Cognitive styles are the various ways individuals deal with information while making decisions. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 42) The four cognitive styles are sensation thinkers, intuitive thinkers, intuitive feelers, and systematic feelers. Answer: False Test Bank

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Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 43) Sensation thinkers are comfortable with abstraction and unstructured situations. Answer: False Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 44) Intuitive feelers prefer broad and global issues, and they value flexibility and human relations. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 45) Structured problems can be dealt with through programmed decisions as they are routine and occur over and over again. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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46) Programmed decisions use solutions already available from past experience to solve structured problems. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 47) When a program chair places students on academic probation for not maintaining a minimum grade point average this is a programmed decision. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 48) Unstructured problems are ones that are familiar, straightforward, and clear with respect to the information needs. Answer: False Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 49) Unstructured problems are full of ambiguities and information deficiencies and require nonprogrammed decisions that craft novel solutions to meet the demands of a unique situation. Answer: True Test Bank

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Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 50) A nonprogrammed decision is made when a new and unfamiliar problem arises, and a novel solution is crafted to meet the demands of the unique situation at hand. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 51) Most problem situations encountered by higher-level managers can be classified as routine and structured. Answer: False Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 52) A crisis is an unexpected problem that can lead to disaster if not resolved quickly and appropriately. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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53) Most managers react to crisis situations by readily involving others in solving the problem. Answer: False Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 54) Proactive managers try to identify those situations that are likely to be susceptible to a crisis, and then develop basic contingency plans for crisis management. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 55) A crisis may be made worse if critical decisions are made with poor or inadequate information and from a limited perspective. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 56) An appropriate guideline for crisis management is to take the time to understand what is going on with the crisis situation and the conditions under which the crisis must be resolved. Answer: True Test Bank

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Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 57) An appropriate guideline for crisis management is to never “fight fire with fire” by starting another crisis to get people’s attention. Answer: False Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 58) Decision making in a certain environment requires the use of probabilities to estimate the likelihood that a particular outcome will occur. Answer: False Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 59) When decision makers lack complete information on action alternatives and their consequences and have calculated the probabilities associated with the various outcomes, they are operating in a risk environment. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Test Bank

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60) When decision makers have information on all possible action alternatives and their consequences, have calculated probabilities associated with the various alternatives, they are operating in a risk environment. Answer: False Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 61) Uncertainty is the most difficult decision environment for any manager. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 62) Uncertain environments force managers to rely heavily on intuition, judgment, informed guessing, and hunches. Answer: True Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 63) The first step in the decision-making process involves gathering information, processing information, and deliberating. Answer: True Test Bank

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Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 64) A key aspect of problem identification and definition involves clarifying goals by determining exactly what a decision should accomplish. Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 65) Common mistakes made in defining a problem include focusing on symptoms instead of causes, choosing the wrong problem to address, and defining the problem too broadly or too narrowly. Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 66) Generation and evaluation of alternative courses of action is the decision-making step where people assemble the facts and information that will be helpful for problem solving. Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 67) A cost/benefit analysis compares the costs of implementing an alternative with its expected benefits. Test Bank

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Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 68) Typical criteria for evaluating alternative solutions include benefits, costs, timeliness, acceptability, and ethical soundness. Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 69) The second step of the decision-making process will be effective when the search for alternatives is completed rapidly. Answer: False Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 70) The second step of the decision-making process will be effective when alternatives meet ethical standards that are acceptable to the organization’s various stakeholders. Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

Test Bank

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71) The third step of the decision-making process involves selecting a preferred course of action. Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 72) A classical decision model describes decision making within the constraints of limited information and alternatives. Answer: False Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 73) According to classical decision theory, managers make rational choices in a certain world because they have complete information regarding all possible alternatives and their consequences. Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 74) A manager who chooses the alternative that yields the absolute best solution to a given problem is making an optimizing decision. Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 75) Making decisions within the constraints of limited information and alternatives is known as bounded rationality. Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 76) The behavioural decision model describes decision making with complete information, where the manager faces a clearly defined problem and knows all possible action alternatives as well as their consequences. Answer: False Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 77) The behavioural decision model describes decision making where people are assumed to act only in terms of what they perceive about a given situation. Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 78) According to the behavioural decision model, competent managers¾even with cognitive limitations¾can make perfectly rational decisions in highly ambiguous situations. Answer: False Test Bank

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Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 79) When a manager chooses the first satisfactory alternative that comes to his or her attention during the decision-making process, satisficing occurs. Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 80) Implementation is the decision-making stage at which problem-solving actions are initiated. Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 81) The lack-of-participation error refers to the failure to adequately involve those persons whose support is necessary to ensure a decision’s implementation. Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 82) The failure to adequately involve the people whose support is necessary to ensure a plan’s implementation is a major reason for difficulties in the implementation stage of decision making. Test Bank

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Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 83) The final stage of the decision-making process is evaluating results. Answer: False Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 84) When evaluating the results of a decision or course of action, a manager needs to examine only negative consequences of the chosen course of action. Answer: False Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 85) In the evaluation stage of the decision-making process, a modified or new solution may need to be generated if the original solution appears to be inadequate. Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 86) The decision-making process is not complete until results are evaluated. Test Bank

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Answer: False Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 87) The final step in the decision-making process is ethical assessment of each step in the process. Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 88) A spotlight question tests the ethics of a decision by exposing it to scrutiny through the eyes of family and community members. Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 89) The four criteria against which a decision should be tested are utility, rights, justice and environment. Answer: False Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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90) An ethics check should address the questions: “How would I feel if my family found out about this decision?” and “How would I feel if this decision were published in the local newspaper?” Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 91) Only major managerial decisions need to meet the criteria of an ethics check. Answer: False Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 92) Examining the ethics of a proposed decision may result in both better decisions and the prevention of costly litigation. Answer: True Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 93) System 1 thinking is described as automatic, deliberate and associative. Answer: False Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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94) When people face complex environments and have limited information, they often use heuristics to simplify decision making. Answer: True Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 95) When a problem is evaluated and resolved in the positive or negative context in which it is perceived, a framing error occurs. Answer: True Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 96) The anchoring and adjustment bias occurs when people use information “readily available” from memory as a basis for assessing a current situation or event. Answer: False Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 97) The representativeness bias involves making decisions based on alterations to a previously existing value or starting point. Answer: False Test Bank

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Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 98) A person decides that a group is aggressive after finding out that some members of that group are aggressive. This is an example of representativeness bias. Answer: True Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Application Difficulty: Medium AACSB: Analytic 99) A confirmation error occurs when focusing only on information that is consistent with a decision already made. Answer: True Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 100) Escalating commitment refers to the tendency to increase effort and perhaps apply more resources to pursue a course of action that is not working. Answer: True Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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101) Avoiding the escalation of commitment trap in decision making can be accomplished by setting advance limits on involvement, determining why the particular course of action is right, keeping in mind the costs involved, and not letting others influence your decision. Answer: True Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 102) Big-C creativity occurs when average people come up with unique ways to deal with daily events and situations. Answer: False Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 103) Little-C creativity occurs when average people come up with unique ways to deal with daily events and situations. Answer: True Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 104) The first step in design thinking is visualizing and brainstorming potential solutions in collaboration with others. Answer: False Test Bank

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Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 105) Creative people are good at making connections among seemingly unrelated facts or events. Answer: True Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloomcode: Knowledge Difficulty: Easy AACSB: Analytic 106) Creativity potential blossoms best when it has management support and the right organizational culture. Answer: True Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloomcode: Knowledge Difficulty: Easy AACSB: Analytic 107) Task expertise, task motivation, and time management are personal creativity drivers. Answer: False Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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108) One of the most important creativity skills is the willingness to question assumptions. Answer: True Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 109) Some of the characteristics that describe creative people are resourceful, systematic, and intuitive in problem solving, think outside the box, transfer learning from one setting to others. Answer: True Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 110) Two of the situational creativity drivers are management support and organizational culture. Answer: True Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 111) The three stages in integrative thinking are to articulate and examine models, explore new possibilities and assess prototypes. Answer: False Test Bank

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Difficulty: Easy AACSB: Analytic 114) Charlie is enjoys working with all kinds of technological devices and is able to learn their functions quickly and can spot new ways to apply the technology to various functions at work. Which of the following can best describe Charlie’s ability? a) technological competency b) business competency c) information competency d) entrepreneurial competency e) analytical competency Answer: a Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Application Difficulty: Medium AACSB: Analytic 115) ___ is ___ made useful and meaningful for decision making. a) Information; understandability b) Timeliness; data c) Data; information d) E-commerce; information e) Information; data Answer: e Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 116) Which of the following is not a characteristic of useful information? a) The information is available when needed. b) The information is accurate and reliable. Test Bank

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c) The information is complete and sufficient for the task at hand. d) The information is appropriate for the task at hand. e) The information will enable the user to be involved in making decisions and increase the likelihood of his/her commitment to those decisions. Answer: e Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 117) Useful information meets the test of five criteria. These criteria are ___. a) timeliness, quantity, completeness, relevance, and understandability b) timeliness, quality, completeness, relevance, and understandability c) timeliness, quality, completeness, relevance, and acceptance d) timeliness, quantity, quality, completeness, and acceptance e) timeliness, completeness, relevance, applicability, and acceptance Answer: b Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 118) ___ meets the specific information needs of managers as they make decisions on a daily basis. a) An extranet. b) An intranet. c) A management information system. d) An enterprise-wide network. e) An inter-organizational information system. Answer: c Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Test Bank

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Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 119) ___ use the latest in information technology to collect, organize, and distribute data in such a way that they become meaningful as information. a) Network portals b) Management information systems c) Computer networks d) Systems analysis packages e) Information control portals Answer: b Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 120) The advantages of appropriate management information system (MIS) utilization include all of the following except a) allows for better and timelier access to useful information, as well as for involving more people in the planning process. b) allows for more ongoing and informed communication among all parts of the organization, helping ensure better coordination and integration. c) allows for better and more frequent communication with all organization members and key environmental stakeholders. d) allows for greater reliance on computer and information technology in addressing the challenges faced by an organization. e) allows for more immediate and complete measurement of performance results, thereby allowing real-time solutions to performance problems. Answer: d Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Analysis Difficulty: Medium Test Bank

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AACSB: Analytic 121) The term ___ describes the systematic evaluation and analysis of information to make decisions. a) tactics b) assay c) heuristics d) analytics e) strategy Answer: d Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 122) Which of the following is not one of the Five “Vs” of Big Data?. a) value b) veracity c) volume d) variety e) variable Answer: e Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 123) ___ is the process of tapping information systems to extract and report data in organized ways that are helpful to decision makers. a) Analytics b) Strategic opportunism c) Satisficing Test Bank

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d) Heuristics e) Business intelligence Answer: e Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 124) One of the current trends in business intelligence is data visualization in the form of ____________. a) data launching b) executive dashboards c) executive panels d) performance metrics e) intuitive dashboards Answer: b Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 125) ___ is the process of identifying a discrepancy between an actual and a desired state of affairs, and then taking action to resolve it. a) Error mapping b) Scenario planning c) Problem solving d) Risk taking e) Opportunity seeking Answer: c Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 126) Problem solving and decision making are dependent on quality ___ being available to the right people at the right time. a) products b) services c) information d) control e) goals Answer: c Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 127) A company purchased a new computer system for the purpose of streamlining the processing of customer orders. The objective is to decrease processing time so that 98% of all orders are shipped within 24 hours of being received. After operating the new system for three months, it was discovered that the company hipped 90% of orders with 24 hours in the first month, 94% in the second month and 91% of all orders were shipped within 24 hours. This situation is an example of a(n) ___. a) performance opportunity b) ethical situation c) performance threat d) work process weakness e) planning weakness Answer: c Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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128) A ___ occurs when an actual situation turns out either better than anticipated or offers the potential to be better than anticipated. a) performance issue b) performance deficiency c) performance opportunity d) decision situation e) management challenge Answer: c Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 129) Managers who are passive in gathering information and are unwilling to make decisions and deal with problems are referred to as problem ___. a) seekers b) creators c) defenders d) avoiders e) claimers Answer: d Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 130) An IT program manager realized that there were a few defects in the company’s new application. The defects were not discovered until after a significant number of packages had been shipped to customers. The IT manager has decided to assume that the customers will likely not use the defective application and so therefore no harm will be done. As a result the IT manager decides that it will be more costly and take considerable effort to rectify the problem, and so decides to do nothing. This manager is a problem ___. Test Bank

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a) seeker b) creator c) defender d) avoider e) claimer Answer: d Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 131) Managers who are regarded as problem solvers a) will try to solve problems only when they are forced by the situation. b) are unwillingly gather information, not wanting to make decisions or deal with problems. c) will anticipate performance threats and opportunities and take action to gain an advantage. d) will ignore information that would otherwise signal the presence of a performance threat. e) actively process information and constantly look for problems to solve. Answer: a Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 132) The marketing manager of a firm receives a number of complaints from customers about late delivery of products. After reviewing the complaints, the manager takes appropriate measures to rectify the issues in the supply chain. This manager is a ___. a) problem defender b) problem avoider c) problem claimer d) problem seeker Test Bank

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e) problem solver Answer: e Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 133) Which of the following traits is associated with problem seekers? a) They are passive in information gathering, not wanting to make decisions or deal with problems. b) They are willing to make decisions and try to solve problems, but only when forced by the situation. c) They ignore information that would otherwise signal the presence of a performance opportunity or threat. d) They are reactive in gathering information to solve problems after, but not before, they occur. e) They anticipate performance threats and opportunities and take action to gain an advantage. Answer: e Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 134) A medical officer in a multispecialty hospital has made it part of the job to regularly review customer service procedures in order to highlight any opportunities for improvement. If there are any deficiencies remedial measures are put into place as soon possible. This trait of the medical officer show that the manager is a ___. a) problem defender b) problem avoider c) problem claimer d) problem seeker e) problem solver Test Bank

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Answer: d Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 135) Which of the following best describes systematic thinking? a) Systematic thinking is often imaginative and works best in situations where facts are limited, and few decision precedents exist. b) A quick and broad evaluation of the situation and the possible alternative courses of action is undertaken. c) It makes managers deal with many aspects of a problem at once and consider hunches based on past experience. d) Systematic thinking makes a person approach a problem in a rational, step-by-step, analytical fashion. e) With systematic thinking it is always possible for the firm’s top managers to make systematic fact-based decisions. Answer: d Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 136) Addison takes time to examine problems and break them down into segments to see where the actual problems lie and how they can be solved. Addison divides the problems into smaller components and then addresses them in a logical and integrated fashion. This approach to problem solving is an example of ___. a) problem seeking b) systematic thinking c) multidimensional thinking d) intuitive thinking e) strategic opportunism Answer: b Test Bank

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Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 137) Dr. Morales initially conducts basic medical tests for all patients. Once the test results have been reviewed Dr. Morales suggests more specific tests for the patients. Before suggesting any course of treatment all reports and results are re-examined and reviewed. This type of problem solving in a step-by-step fashion is known as ___ thinking. a) heuristic b) systematic c) intuitive d) spontaneous e) flexible Answer: b Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 138) Systematic thinkers are likely to ___. a) make a plan for solving a problem but explore and abandon alternatives very quickly b) break a complex problem into smaller components; make a plan before taking action, and search for information to facilitate problem solving in a step-by-step fashion c) broadly and quickly evaluate the problem situation and the possible alternative course of action d) rely on nonverbal cues and hunches to solve problems e) deal with many aspects of a problem simultaneously, consider hunches, and jump quickly from one issue to another Answer: b Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 139) Intuitive thinkers are likely to do all of the following except a) broadly and quickly evaluate a problem situation. b) explore and abandon alternatives very quickly. c) consider a number of alternatives and options simultaneously. d) consider hunches and jump quickly from one issue to another. e) solve problems in a step-by-step fashion. Answer: e Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 140) Managers should use ___ in situation with high uncertainty and where limited facts and few decision precedents exist. a) systematic thinking b) intuitive thinking c) the nominal group technique d) the brainstorming technique e) decision tree analysis Answer: b Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 141) Finley manages a bake shop and has noticed that cupcakes are disappearing at a faster rate than the sales reflect. This problem does not seem to be happening with any of the other products the shop sells. Finley has also noticed that the newest employee disappears at break time and for long periods of time. Finley follows the new employee Test Bank

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to the parking lot and observes the employee taking three cupcakes from a paper bag and eating them on the spot. Finley is demonstrating _____________ thinking. a) multidimensional b) strategic c) cognitive d) intuitive e) sensation Answer: d Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 142) Casey is a manager at a mining firm and is good at handling crisis situations. Casey is spontaneous in problem solving, and typically provides alternative courses of action within a matter of a couple of days of identifying a problem. This type of problemsolving approach shows that Casey is a(n) ___ thinker. a) systematic b) analytical c) intuitive d) systemic e) lateral Answer: c Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 143) ___ is the capacity to view many problems at once, in relationship to one another, and across long and short time horizons. a) Intuitive thinking b) Expert thinking c) Strategic thinking Test Bank

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d) Multidimensional thinking e) Alternative thinking Answer: d Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 144) Cassidy has been managing a local restaurant for a number of years. The restaurant’s head office has noticed that Cassidy often deals with many issues and problems simultaneously such as staff shortages, issues with product delivery and general restaurant maintenance. Cassidy is also able to map many problems into one network. Recently Cassidy devised a staff scheduling process that helped to ensure that there would always be sufficient staff working, while at the same time not having too many staff working and doing nothing. This process will save the company considerable time and money for quite some time. Cassidy’s displays ___ thinking. a) critical b) multidimensional c) lateral d) intuitive e) heuristic Answer: b Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 145) Which of the following skills refers to the ability to remain focused on long-term objectives while being flexible enough to resolve short-term problems and opportunities in a timely manner? a) information competency b) strategic opportunism c) systematic thinking d) management analytics Test Bank

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e) performance planning Answer: b Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 146) Kadin has the ability to remain focused on long-term objectives, such as the company’s goal towards long-term environmental protection measures. At the same time Kadin is able to recognize and resolve short-term problems and issues, such as a recent vacation scheduling problem among the staff. These skills have allowed Kadin to be very successful in the role of department manager. This skill set demonstrates ___. a) technological competency b) strategic opportunism c) systematic thinking d) information competency e) intuitive thinking Answer: b Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 147) ___ tend to emphasize the impersonal rather than the personal and take a realistic approach to problem solving. a) Intuitive feelers b) Intuitive thinkers c) Sensation feelers d) Intuitive seekers e) Sensation thinkers Answer: e Learning Objective 7.2: Identify different ways managers approach and deal with Test Bank

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problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 148) Kerry emphasizes the impersonal, tends to take a realistic approach to problem solving, and prefers facts and clear goals. Kerry likes to be in situations of high control and prefers problem solving in a certain environment. Kerry can be regarded as a(n) ___. a) sensation feeler b) idealistic thinker c) sensation thinker d) intuitive feeler e) intuitive thinker Answer: c Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 149) The ___ are comfortable with unstructured situations, and they tend to be idealistic and prone toward intellectual and theoretical positions. a) intuitive feelers b) intuitive thinkers c) sensation feelers d) sensation seekers e) sensation thinkers Answer: b Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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150) Morgan tends to emphasize the impersonal and takes a logical approach to problem solving, and usually avoids details. Morgan is prone to intellectual and theoretical positions and is comfortable with unstructured situations. These traits show that Morgan is a(n) ___. a) sensation feeler b) idealistic thinker c) sensation thinker d) intuitive feeler e) intuitive thinker Answer: e Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 151) Sensation thinkers differ from intuitive thinkers as intuitive thinkers a) are insightful and prefer broad and global issues. b) are comfortable with abstraction and unstructured situations. c) like hard facts, clear goals, certainty, and situations of high control. d) tend to emphasize the impersonal rather than the personal and take a realistic approach to problem solving. e) are open communicators and sensitive to feelings and values. Answer: b Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 152) ___ are insightful, comfortable with intangibles, and value flexibility and human relationships. a) Sensation feelers b) Intuitive thinkers c) Sensation seekers Test Bank

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d) Sensation thinkers e) Intuitive feelers Answer: e Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 153) Oakley values flexibility and human relations while making decisions and prefers broad and global issues rather than narrow and specific issues. Oakley tends to avoid details during problem solving and is comfortable with intangibles. These traits demonstrate a(n) ___. a) sensation feeler b) idealistic thinker c) sensation thinker d) intuitive feeler e) intuitive thinker Answer: d Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 154) ___ are open communicators, tend to be realistic, and emphasize both analysis and human relations. a) Intuitive feelers b) Intuitive thinkers c) Sensation feelers d) Intuitive seekers e) Sensation thinkers Answer: c Learning Objective 7.2: Identify different ways managers approach and deal with Test Bank

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problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 155) Bao focuses on facts and tends to take a realistic approach to problem solving and emphasizes analysis. Bao is an open communicator, responsive to feelings, and values human relations. These characteristics show that Bao is a(n) ___. a) sensation thinker b) intuitive feeler c) intuitive thinker d) sensation feeler e) idealistic thinker Answer: d Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 156) Problems that are familiar, straightforward, and clear with respect to information needs are called ___ problems. a) ambiguous b) undefined c) structured d) framing e) uncertain Answer: c Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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157) Parker has been asked to prepare a report comparing the profits the company earned in the current financial year in its domestic market to the previous year’s report for the same market. This is a(n) ___ problem. a) unstructured b) structured c) ambiguous d) framing e) uncertain Answer: b Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 158) A ___ decision applies a solution from past experience to a routine problem. a) unique b) nonprogrammed c) tactical d) nonrecurring e) programmed Answer: e Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 159) Hadley manages the customer service division and usually makes decisions to resolve customer complaints based on previous experiences and the standard procedures set by the company. The type of decision being made by Hadley is a(n) ___ decision. a) unstructured b) tactical c) nonrecurring d) programmed Test Bank

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e) unique Answer: d Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 160) Which of the following is true of unstructured problems? a) They are clear with respect to information needs. b) They can be resolved using readily available solutions from past experiences. c) They can be resolved with a high degree of certainty. d) They are ambiguous and contain information deficiencies. e) They are routine and occur over and over again. Answer: d Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 161) Sumaira has been asked to prepare a report on the best advertising campaign for a new product the company is launching in a new market. Because of the nature of the product and the demographic being targeted the company wants Sumaira to come up with a new and unique campaign, with a focus on social media. The type of problem being faced by Sumaira is a(n) ___ problem. a) integrated b) anticipated c) computational d) certain e) unstructured Answer: e Learning Objective 7.2: Identify different ways managers approach and deal with problems. Test Bank

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Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 162) A(n) ___ is made when a new and unfamiliar problem arises and a novel solution is crafted to meet the demands of the unique situation at hand. a) programmed decision b) nonprogrammed decision c) structured decision d) unstructured decision e) difficult decision Answer: b Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 163) ___ are full of ambiguities and information deficiencies, and require ___ that craft novel solutions to meet the demands of a unique situation a) Structured problems; programmed decisions b) Structured problems; nonprogrammed decisions c) Unstructured problems; nonprogrammed decisions d) Unstructured problems; programmed decisions e) Structured problems; crisis decisions Answer: c Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 164) An unexpected problem that can lead to disaster if not resolved quickly and appropriately is known as ___. Test Bank

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a) a structured problem b) an unstructured problem c) a nonprogrammed decision d) a programmed decision e) a crisis Answer: e Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 165) A ___ decision occurs when an unexpected problem arises that can lead to disaster if not resolved quickly and appropriately. a) nonprogrammed b) strategic c) crisis d) programmed e) standard Answer: c Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 166) Terrorism in the post-9/11 world, ethical scandals, outbreaks of workplace violence, information technology failures, and man-made environmental disasters are all examples of ___ problems that organizations and managers face. a) unstructured b) structured c) crisis d) non-programmed e) programmed Test Bank

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Answer: c Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 167) ___ refers to the preparation of managers and others to deal with unexpected highimpact events that threaten an organization’s well-being. a) Fiscal responsibility b) High context planning c) Relief anticipation management d) Impact avoidance goal setting e) Crisis management Answer: e Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 168) Which of the following is not a rule or guideline for crisis management? a) Take the time to understand what is going on with the crisis situation and the conditions under which the crisis must be resolved. b) Attack the crisis as quickly as possible to keep it as small as possible. c) Know when to back off and wait for a better opportunity to make progress with the crisis. d) Never “fight fire with fire” by starting another crisis to get people’s attention. e) Respect the danger of the unfamiliar and value the sceptic. Answer: d Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 169) A(n) ___ environment offers complete information on possible action alternatives and their consequences. a) uncertain b) speculative c) risk d) certain e) unanticipated Answer: d Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 170) To assist in their promotions and appraisals, Ellery analyzed and graded the previous year’s team members performance. Ellery is sure of the decisions made on promotions, salary raises and appraisals because all the factual information was used in the decision process. This type of environment is referred to as a(n) ___. a) uncertain environment b) risk environment c) certain environment d) threat environment e) unanticipated environment Answer: c Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 171) A(n) ___ environment lacks complete information on alternatives and their consequence. However this environment does offer “probabilities” of the likely outcomes for possible action alternatives. Test Bank

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a) uncertain b) secure c) risk d) certain e) definite Answer: c Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 172) The manager at a shoe retail store is trying to estimate how much stock to order for the current spring season based on last spring's outcomes. The manager is operating under what kind of decision-making condition? a) reliability b) risk c) uncertainty d) certainty e) crisis Answer: b Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 173) Chikashi, a manager at a hotel, decided to launch a new type of cuisine in the hotel’s restaurant because the restaurant was incurring losses due to negative feedback on its existing cuisine. Chikashi had to make a decision immediately to improve the situation and was aware of the possible consequences of this action. Chikashi had to make the decision in a(n) ___ environment. a) uncertain b) risk c) certain d) secure Test Bank

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e) anticipated Answer: b Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 174) A(n) ___ environment lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives. a) anticipated b) risk c) certain d) threat e) uncertain Answer: e Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 175) Taylor is assigned the task of marketing a new experimental drug to consumers in a developing country. However, Taylor is not aware of the potential side-effects of the drug. Moreover, the demand for this drug in that developing country is completely unknown, nor can probabilities be assigned to the likely outcomes of the marketing strategies to sell this drug. This decision-making environment can be referred to as a(n) ___. a) uncertain environment b) risk environment c) certain environment d) threat environment e) unanticipated environment Answer: a Test Bank

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Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Difficulty: Medium AACSB: Analytic 176) The ideal, but seldom achieved, condition for managerial problem solving is characterized by ___. a) low risk, because managers seek little stimulation b) high risk, because that is when high profits are possible c) uncertainty, because that offers the greatest chance for creativity d) normality, because that is the condition under which all the business school principles work e) certainty, because the manager simply has to locate the alternative offering the best solution Answer: e Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 177) The customer service manager for The Keg is authorized to distribute dry-cleaning vouchers to customers who complain about spilled drinks on their clothes during their dining experience in the restaurant. This is an example of a ___ decision to a(n) ___ problem. a) nonprogrammed; routine b) nonprogrammed; unstructured c) nonprogrammed; technical d) programmed; exclusive e) programmed; structured Answer: e Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Application Test Bank

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Difficulty: Medium AACSB: Analytic 178) The ___ involves a set of activities and events that begins with identification of a problem, includes making a decision, and ends with the evaluation of results. a) control process b) organizing process c) leading process d) decision-making process e) negotiation process Answer: d Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 179) Decision making is a ___ process that begins with ___ and ends with ___. a) Five-step; identifying and defining the problem; evaluating results b) Five-step; identifying and defining the problem; ethical reasoning c) Four-step; identifying and defining the problem; implementing the solution d) Six-step; generating alternative solutions; evaluating the results e) Six-step; identifying and defining the problem; ethical reasoning Answer: e Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 180) Which of the following is the first step in a decision-making process? a) generating alternative solutions b) evaluating results c) evaluating alternative solutions d) identifying and defining a problem e) choosing a preferred course of action Test Bank

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Answer: d Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 181) Which of the following is a common mistake that can occur in the first step of decision making? a) choosing the first alternative that gives a satisfactory solution b) abandoning the search for alternatives too quickly c) lack-of-participation error d) focusing on symptoms instead of causes e) not measuring the performance results Answer: d Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 182) Adara does not seem to be as productive as normal and the manager is concerned. The manager wants to talk to Adara and solve the problem. Which of the following is the first step the manager should take in the decision-making process? a) Generate and evaluate alternative solutions to improve her performance. b) Choose a preferred course of action for performance improvement. c) Identify and define the problem that is causing the productivity issues. d) Talk to Adara’s family. e) Evaluate solutions before consulting Adara. Answer: c Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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183) A key aspect of ___ involves clarifying goals by determining exactly what a decision should accomplish. a) evaluation of solutions b) implementation of solutions c) problem identification and definition d) generation of solutions e) choosing a preferred solution Answer: c Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 184) Stating a problem as the need to “build a better mousetrap” instead of the need to “get rid of mice” is an example of which type of error in identifying and defining a problem? a) choosing the wrong problem to deal with b) focusing on symptoms instead of causes c) defining a problem too broadly or too narrowly d) selective perception e) doing the routine rather than the unexpected Answer: c Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 185) A production manager is trying to solve a problem that has resulted in defective products and understands that the problem is due to a technical failure which must be corrected immediately to avoid further loss. The next step in the manager’s decisionmaking process after collecting all the details regarding the problem is to a) choose a preferred course of action. b) evaluate the implemented solution. c) implement the decision. Test Bank

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d) define the problem. e) generate and evaluate alternative solutions. Answer: e Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 186) ___ is the decision-making stage at which people assemble the facts and information that will be helpful for problem solving. a) Identification and problem definition b) Generation and evaluation of alternative courses of action c) Selection of the preferred course of action and making the “ethics double-check” d) Implementation of the decision solution e) Evaluation of results Answer: b Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 187) Comparing the costs of implementing an alternative with its expected benefits is called a(n) ___. a) inventory of alternatives b) cost-benefit analysis c) decision matrix d) payoff table e) chart of probabilities Answer: b Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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188) Which of the following features will likely prevent the second step of the decisionmaking process from being effective? a) The pros and cons of possible alternative courses of action should be identified. b) Bringing more people into the decision process adds information and perspective to problem solving. c) Decisions are only as good as the quality of alternatives that are considered. d) The search for alternatives should be completed quickly. e) Alternatives should meet ethical standards that are acceptable to the organization’s various stakeholders. Answer: d Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 189) Typical criteria for evaluating alternative solutions include all of the following except a) benefits and costs b) timeliness c) acceptability d) ease of implementation e) ethical soundness Answer: d Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 190) The third step of the decision-making process involves ___. a) generating alternative solutions and evaluating them b) selecting a preferred course of action c) implementing the solution d) gathering information, processing information, and deliberating Test Bank

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e) evaluating the results Answer: b Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 191) A classical decision model differs from a behaviour decision model in that the classical model a) assumes that people act with only partial knowledge about the available action alternatives and their consequences. b) describes decision making with limited information and alternatives. c) recognizes cognitive limitations to our human information-processing capabilities. d) describes how many decisions get made in the ambiguous and fast-paced problem situations. e) assumes that the choice of preferred course of action is made by a decision maker who is fully informed about all possible alternatives. Answer: e Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 192) The ___ describes decision making with complete information, where the manager faces a clearly defined problem and knows all possible action alternatives as well as their consequences. a) classical decision model. b) administrative decision model. c) behavioural decision model. d) bounded rationality decision model. e) political decision model. Answer: a Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 193) Which of the following describes decision making with complete information? a) classical decision model b) satisficing decision c) bounded rationality d) behavioural decision model e) cognitive limitation Answer: a Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 194) A(n) ___ decision chooses the alternative that gives the absolute best solution to a problem. a) satisficing b) intuitive c) optimizing d) experimental e) heuristic Answer: c Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 195) Devon, a manager at an IT firm, likes to focus on facts when making decisions. When faced with a well-defined problem and all the information regarding the possible action alternatives as well as their consequences is available, Devon is most likely to make a(n) ___ decision that gives the best possible solution for a problem. a) intuitive Test Bank

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b) optimizing c) satisficing d) heuristic e) experimental Answer: b Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 196) Which of the following describes making decisions within the constraints of limited information and alternatives? a) decision optimization b) management analytics c) bounded rationality d) classical decision model e) business intelligence Answer: c Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 197) The ___ describes decision making where people are assumed to act only in terms of what they perceive about a given situation. a) executive decision model. b) personal decision model. c) biased decision model. d) behavioural decision model. e) descriptive decision model. Answer: d Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Test Bank

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Difficulty: Medium AACSB: Analytic 198) Which of the following recognizes that there are cognitive limitation on a person’s information-processing capabilities? a) classical decision model b) certain environment c) optimizing decision d) behavioural decision model e) unstructured environment Answer: d Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 199) Drew is an operations manager with an approved budget of $555,000 to buy four new machines which will increase production by 15%. After seeing what the suppliers had to offer, Drew quickly realized that the model that would best suit the company’s needs was very expensive and therefore only three machines could be purchased. In an attempt to purchase the fourth machine Drew requested a budget increase and was denied. Drew then purchased only the three machines. This is an example of ___. a) evaluating results b) bounded rationality c) rational decision making d) classical decision model e) cost benefit analysis Answer: b Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 200) When a manager chooses the first satisfactory alternative that comes to their attention during the decision-making process, ___ occurs. Test Bank

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a) rationalization b) intuition c) satisficing d) optimization e) utilitarianism Answer: c Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 201) The ___ is particularly useful in describing how people make decisions under conditions of risk and uncertainty. a) classical decision model b) executive decision model c) behavioural decision model d) descriptive decision model e) political decision model Answer: c Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 202) Cassidy is not keen on collecting facts and information while solving problems and is more spontaneous in decision making and usually chooses the first possible alternative to solve a problem. The type of decision being made in such situations is known as a(n) ___ decision. a) absolute best b) satisficing c) conditional d) optimizing e) fully informed Answer: b Test Bank

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Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 203) ___ is the decision-making stage at which problem-solving actions are initiated. a) Identification and problem definition b) Solution generation and evaluation c) Solution selection and “ethics double-check” d) Implementation e) Evaluation Answer: d Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 204) ___ is failure to involve in a decision the persons whose support is needed to implement it. a) Framing error b) Lack-of-participation error c) Bounded rationality d) Confirmation error e) Strategic opportunism Answer: b Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 205) The failure to adequately involve the people whose support is necessary to ensure a plan’s implementation is a major reason for difficulties in the ___ stage of decision making. Test Bank

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a) identification and problem definition b) solution generation and evaluation c) solution selection and “ethics double-check” d) implementation e) evaluation Answer: d Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 206) Corey has been assigned to implement performance improvement procedures in the organization and is nearing the final stage of the decision-making process. In order to make sure that the performance improvement procedures that have been implemented have been effective, Corey should ___. a) analyze the performance improvement procedures b) identify and define the factors affecting performance c) generate and evaluate alternative course of action d) choose a preferred course of action e) evaluate the results Answer: e Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 207) Which of the following does not accurately describe the evaluation of results in the decision-making process? a) The decision-making process is not complete until results are evaluated. b) The process must be renewed when results are not achieved. c) Only negative consequences of the chosen course of action need to be examined. d) Evaluation is made easier if the solution involves clear objectives with measurable targets and timetables. e) A modified or new solution may need to be generated if the original solution appears to be inadequate. Test Bank

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Answer: c Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 208) After purchasing new computers for the department, Blair is comparing the performance of the new computers to the computers they replaced. Which stage of the decision-making process is Blair carrying out? a) Generate and evaluate alternative courses of action. b) Identify and define the problem. c) Evaluate results. d) Implement the decision. e) Decide on a preferred course of action. Answer: c Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 209) Brady evaluated seven different computer models and decided that the Dell model was the best choice for the company’s purposes. After obtaining permission, Brady ordered the computers from a reputable company. Which stage of the decision-making process is Blair carrying out? a) Generate and evaluate alternative courses of action. b) Identify and define the problem. c) Evaluate results. d) Implement the decision. e) Decide on a preferred course of action. Answer: d Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Application Difficulty: Medium Test Bank

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AACSB: Analytic 210) The decision-making process ends with the a) choice of a preferred course of action. b) evaluation of implemented solutions. c) implementation of the decision. d) ethical reasoning assessment. e) generation of alternative solutions. Answer: d Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 211) Any decision should meet the ___. a) ethics double-check b) bounded rationality limitations c) intellectual capital requirements d) group decision-making criteria e) creativity guidelines Answer: a Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 212) Which of the following statement does not accurately describe an attribute or feature of ethical decision making? a) The “ethics double-check” should address the question: “How would I feel if my family found out about this decision?” b) The “ethics double-check” should address the question: “How would I feel if this decision were published in the local newspaper?” c) The “ethics double-check” should be done during step 3 of the decision-making process. Test Bank

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d) Any discomfort in answering the “ethics double-check” questions signifies that the decision may have ethical shortcomings. e) Only major managerial decisions need to meet the criteria of the “ethics doublecheck.” Answer: e Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 213) Examining the ___ a proposed decision may result in both better decisions and the prevention of costly litigation. a) implementation strategy for b) ethical reasoning of c) expected results of d) required resources for e) top management support for Answer: b Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 214) Which of the following questions does not address the ethical criteria for decision making that managers should use? a) Does the decision satisfy all constituents or stakeholders? b) Does the decision respect the rights and duties of everyone? c) Does the decision fulfill the organization’s strategic objectives? d) Is the decision consistent with the canons of justice? e) Is the decision consistent with my responsibilities to care? Answer: c Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Application Test Bank

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Difficulty: Medium AACSB: Analytic 215) When people face complex environments and have limited information, they often use simplifying strategies for decision making. These simplifying strategies are known as ___. a) uncertainty reduction b) heuristics c) optimizing d) rationalization e) work simplification Answer: b Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 216) When a problem is evaluated and resolved in the positive or negative context in which it is perceived, a(n) ___ occurs. a) lack-of-participation error b) escalation error c) framing error d) group decision error e) satisficing error Answer: c Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 217) Which statement about heuristics is correct? a) The availability bias occurs when people use information from memory as a basis for Test Bank

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assessing a current situation or event. b) The representativeness bias occurs when people assess the likelihood of something occurring based on its similarity to a stereotyped set of occurrences. c) The anchoring and adjustment bias involves making decisions based on alterations to a previously existing value or starting point. d) all of the above e) none of the above Answer: d Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 218) Catalina, the manager of a law firm, makes a decision about the pay raise of the firm’s interns based only on their current salaries. This type of decision making can lead to ___. a) a lack-of-participation error b) availability bias c) representativeness bias d) a framing error e) a confirmation error Answer: d Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Application Difficulty: Medium AACSB: Analytic 219) The ___ bias occurs when people use information “readily available” from memory as a basis for assessing a current situation or event. a) representativeness b) availability c) escalation d) satisficing e) anchoring and adjustment Test Bank

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Answer: b Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 220) The ___ bias occurs when people assess the likelihood of something occurring based on its similarity to a stereotyped set of occurrences. a) representativeness b) availability c) escalation d) satisficing e) anchoring and adjustment Answer: a Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 221) The ___ bias involves making decisions based on alterations to a previously existing value or starting point. a) representativeness b) availability c) escalation d) satisficing e) anchoring and adjustment Answer: e Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 222) The ___ occurs when decisions are influenced by inappropriate allegiance to a previously existing value or starting point. a) confirmation error b) lack-of-participation error c) representativeness bias d) anchoring and adjustment bias e) availability bias Answer: d Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 223) The ___ bases a decision on recent information or events. a) framing error b) availability bias c) representativeness bias d) confirmation error e) anchoring bias Answer: b Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 224) Based on recollection of a recent product failure, the manager of a company decides not to invest in a new product, even though the readily available information is infallible and irrelevant. This is an example of ___. a) a confirmation error b) a framing error Test Bank

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c) availability bias d) an escalating commitment e) anchoring bias Answer: c Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Application Difficulty: Medium AACSB: Analytic 225) The ___ occurs when people assess likelihood of something happening based on its similarity to a stereotyped set of occurrences. a) availability bias b) lack-of-participation error c) representativeness bias d) confirmation error e) adjustment bias Answer: c Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 226) Harper, who leads the design team in an automobile firm, decides not to invest in a particular technology that helps to improve the fuel efficiency of cars, as other automobile companies who had invested in similar technologies had not achieved much success. The type of decision-making error made by Harper is known as ___. a) availability bias b) confirmation error c) adjustment bias d) lack-of-participation error e) representativeness bias Answer: e Test Bank

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Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Application Difficulty: Medium AACSB: Analytic 227) Hunter is a very successful car salesperson who generates considerable revenue for the dealership. The general manager is impressed with Hunter’s performance and decides to hire Hunter’s cousin as a salesperson, assuming they will be as successful as Hunter in selling cars. However, Hunter’s cousin fails to live up to expectations. The type of decision-making error made by the general manager is known as ___. a) availability bias b) confirmation error c) adjustment bias d) lack-of-participation error e) representativeness bias Answer: e Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Application Difficulty: Medium AACSB: Analytic 228) Jordan has had problems in the past with employees who smoke because they always took more than fifteen minutes on their breaks. During an interview with a potential new employee, Jordan notices that the candidate smells of smoke. Jordan does not know definitively if the candidate smokes or if they walked through a group of smokers on the way to the interview. Jordan decided not to hire the candidate even though the candidate had the necessary qualifications and effectively answered all of the interview questions. This is an example of ___. a) availability bias b) a framing error c) anchoring and adjustment bias d) representation bias e) a confirmation error Answer: c Test Bank

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Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Application Difficulty: Medium AACSB: Analytic 229) Rajiv was asked to prepare a report on the estimated costs of introducing a new product into the market. Rajiv estimated the costs by slightly increasing the costs the company had incurred while introducing a product into the market the previous year. This might not be accurate, because a number of other factors should also have been considered while calculating the estimated costs for the current year. This type of decision-making error is known as ___. a) availability bias b) confirmation error c) representativeness bias d) anchoring and adjustment bias e) lack-of-participation error Answer: d Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Application Difficulty: Medium AACSB: Analytic 230) A(n) ___ occurs when focusing only on information that validates a decision already made. a) confirmation error b) escalating commitment c) lack-of-participation error d) anchoring and adjustment bias e) framing error Answer: a Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 231) The tendency to increase effort and perhaps apply more resources to pursue a course of action that is not working is known as ___. a) cost-benefit impact b) heuristics c) escalating commitment d) escalating cost impact e) satisficing Answer: c Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 232) ___ is the continuation of a course of action even though it is not working. a) Confirmation error b) Escalating commitment c) Lack-of-participation error d) Framing error e) Strategic opportunism Answer: b Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 233) Ryan, the marketing manager at a company, decides to invest more money to promote a technology that has earlier failed at the market due to its technical incompetency. Ryan is unwilling to accept that the product lacks the competitive edge to survive in the market and is not ready to admit any mistakes and applies more resources to pursue a course of action that is not working. This type of decision-making trap is Test Bank

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known as ___. a) confirmation error b) escalating commitment c) framing error d) strategic opportunism e) lack-of-participation error Answer: b Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Application Difficulty: Medium AACSB: Analytic 234) Ludo authorizes the expenditure of an additional $200,000 for the production of a new product despite mounting concerns from top management that it will be unprofitable. Ludo’s behaviour illustrates the phenomenon of ___. a) confirmation bias b) representation bias c) anchoring bias d) availability bias e) escalation of commitment Answer: e Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 235) The generation of a novel idea or unique approach to solving performance problems or exploiting performance opportunities is ___. a) heuristics b) satisficing c) creativity d) cost benefit analysis e) diversity Test Bank

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Answer: c Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 236) Big-C creativity occurs when a) extraordinary things are done by average people. b) ordinary things are done by exceptional people. c) average people come up with unique ways to deal with issues. d) extraordinary things are done by exceptional people. e) ordinary things are done by average people. Answer: d Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 237) ___ unlocks creativity in decision making through a process of experiencing, ideation, and prototyping. a) Problem solving b) Escalating commitment c) Business Intelligence d) Design thinking e) Strategic opportunism Answer: d Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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238) The ideation step in design thinking involves a) accepting problems as they are delivered. b) defining problems by research and observation. c) visualizing and brainstorming potential solutions in collaboration with others. d) looking for answers to assigned problems through standard procedures. e) testing and modifying the potential solution over and over to achieve the best outcome. Answer: c Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 239) The three-component model of creativity that the text defines as personal creativity drivers in organizations is a) task expertise, task motivation, creativity skills b) task expertise, task completion, creativity skills c) creativity skills, goal oriented, task completion d) creativity skills, task expertise, goal oriented e) external rewards, personal ambition, management support Answer: a Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 240) Situational creativity drivers in organizations where people, management, and traditional organizational environments all mix include a) group creativity skills, management support, organizational culture. b) group creativity skills, management support, heuristics. c) management support, organizational culture, goal orientation. d) management support, organizational culture, task expertise. Test Bank

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e) group creativity skills, management support, task expertise. Answer: a Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 241) In the context of individual and group decision making, the “right” decision method is the one that ___. a) provides for a timely decision b) provides for a quality decision c) promotes the commitment of people who will be involved in implementing the decision d) a and b e) a, b, and c Answer: e Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 242) The potential advantages of group decision making include all of the following except a) it makes greater amounts of information, knowledge, and expertise available to solve problems. b) it increases the number of action alternatives that are examined. c) it increases the likelihood of minority domination. d) it increases the understanding and acceptance of outcomes by members. e) it increases the commitment of team members to implementing the final plans. Answer: c Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Test Bank

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Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic Question type: Essay 243) Briefly describe what internal information and external information are and how they are used in organizations? Answer: At the organization’s boundaries, information in the external environment is accessed. Managers use intelligence information to deal with customers, competitors, and other stakeholders such as government agencies, creditors, suppliers, and stockholders. Organizations also send vast amounts of public information to stakeholders and the external environment. This often takes the form of advertising, public relations messages, and financial reports that serve a variety of purposes, ranging from image building to product promotion to financial documentation to damage control. Within organizations, people need vast amounts of internal information to make decisions and solve problems in their daily work. They need information from their immediate work setting and from other parts of the organization. Internal information flows downward in such forms as goals, instructions, and feedback; it flows horizontally in ways that assist in cross-functional coordination and problem solving; and it flows upward in such forms as performance reports, suggestions for improvement, and even disputes. The ability of technology to gather and move information quickly within an organization can be a great asset to decision making. It helps top levels stay informed while freeing lower levels to make speedy decisions and take the actions they need to best perform their jobs. Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 244) List and briefly describe the five criteria that to determine if available data is useful and meaningful for decision making Answer: Data are raw facts and observations. In contrast, information is data made useful and meaningful for decision making. We all have lots of access to data, but we don’t always gather and use this data to create useful information that meets the test of these five criteria: 1. Timely—The information is available when needed; it meets deadlines for decision Test Bank

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making and action. 2. High quality—The information is accurate, and it is reliable; it can be used with confidence. 3. Complete—The information is complete and sufficient for the task at hand; it is as current and up to date as possible. 4. Relevant—The information is appropriate for the task at hand; it is free from extraneous or irrelevant material. 5. Understandable—The information is clear and easily understood by the user; it is free from unnecessary detail. Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 245) What are data mining and Big Data? List and describe the Five “Vs” of Big Data including how each of the five “Vs” help to get the most out of data when solving problems. Answer: Data mining is the process of analyzing data to produce useful information for decision-makers. Big data is large quantities of data that are difficult to mine without the use of mathematical and analytical techniques. The Five “Vs” are: Volume, Variety, Veracity, Velocity and Value Volume: data must exist in ‘super-large’ quantities. With the right software it becomes increasingly easy to collect and handle big data. Variety: Technology makes it easy to collect and take advantage of data from many different sources. This variety of data makes arriving at the correct or best decision easier. Veracity: Before it can be used for decision making, data must be tested for its veracity or legitimacy. Velocity: Big data must reflect information in real time. Value: Big data must be worth the time, effort and resources that go into data collection. Without value, an appropriate or correct decision cannot be achieved. Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Synthesis Difficulty: Hard AACSB: Reflective Thinking 246) Information, in more general terms, is data plus conceptual commitments and Test Bank

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interpretations. Information is frequently data extracted, filtered or formatted in some way. When is information truly useful for management and provide an example of information for a business? Answer: Data is truly useful when it contains certain characteristics: Timely—the information is available when needed; it meets deadlines for decision making and action. High quality—the information is accurate and it is reliable; it can be used with confidence. Complete—the information is complete and sufficient for the task at hand; it is as current and up to date as possible. Relevant—the information is appropriate for the task at hand; it is free from extraneous or irrelevant materials. Understandable—the information is clear and easily understood by the user; it is free from unnecessary detail. Information is data that have been given meaning by way of context. A spreadsheet is often used to make information from the data stored within it. A good example would be an income statement for a business. It is still a list of dollar figures, but now it has a relevant context. Learning Objective 7.1: Discuss the role of information, data, and analytics in management. Section Reference 7.1: Information, Technology, and Management Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 247) Differentiate between programmed and nonprogrammed decisions. Answer: Programmed decisions use solutions or decision rules already available from past experience. They are used to solve structured problems that are routine and occur over and over again. As these problems are routine, they allow for decisions to be programmed in advance and then put into use as needed. Nonprogrammed decisions craft novel solutions to meet the demands of the unique situation at hand. Managers use nonprogrammed decisions to deal with unstructured problems that are new or unusual situations full of ambiguities and information deficiencies. They often involve choice of strategies and objectives in some situations of uncertainty. Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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248) Provide specific examples, other than those from your textbook, of the following types of decisions, and include in your answer why your example belongs in its category: a) Programmed decisions b) Nonprogrammed decisions c) Crisis Answer: Example answers, which will include an explanation as to why the example belongs in the category a) Programmed decisions: absent employee late employee product return angry customer fire drill void the cash register b) Nonprogrammed decisions customer fight drunk customer employee becoming seriously ill at work customer injuring themselves c) Crisis bomb threat wildcat strike dangerous weather Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Evaluation Difficulty: Hard AACSB: Reflective Thinking 249) Explain how risk, certainty, and uncertainty influence the decisions that managers make. Answer: Certainty, risk, and uncertainty represent the three decision environments within which managerial decision making and problem solving take place. Certain environments offer sufficient information about possible action alternatives and their outcomes. While this environment is ideal for decision making, very few managerial decisions actually occur in certain environments. Risk environments lack complete information about action Test Bank

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alternatives and their consequences, but offer some estimates of probabilities associated with the potential outcomes of possible action alternatives. Uncertain environments occur when information is so poor that managers are unable even to assign probabilities to the likely outcomes of known alternatives. Risk environments and uncertain environments represent the vast majority of decision-making and problem-solving situations encountered by managers. Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Synthesis Difficulty: Hard AACSB: Analytic 250) Compare and contrast the four basic types of cognitive styles. Which problemsolving style is better and can team members with different problem-solving styles impact on the decision-making process? Answer: The four basic types of problem-solving styles are sensation thinker (ST), sensation feeler (SF), intuitive thinker (IT), and intuitive feeler (IF). Sensing people seek specific factual data and information from their environment, whereas intuitive people gather global or more abstract data. After gathering data, people make decisions based on their thinking or feeling. Thinking people tend to solve a problem by breaking it into logical parts and then analyzing them, whereas feeling people make decisions based on instinct. One problem-solving style is not better than another. Many people exhibit characteristics of each style at various times and in different situations. In a project environment, it is important to achieve a balance by integrating all four psychological functions. The particular combination of problem-solving styles of team members can affect the team process and its decisions. For example, there is likely to be more conflict and divergence in a team with three strong sensation thinkers and three intuitive feelers than if all six members have the same problem-solving style. Although different viewpoints should stimulate creativity and innovative solutions, if differences are not facilitated properly, those can also lead to conflict, which may hurt the team spirit. Learning Objective 7.2: Identify different ways managers approach and deal with problems. Section Reference 7.2: Problem Solving and Managerial Decisions Bloom’s: Synthesis Difficulty: Hard AACSB: Reflective Thinking 251) Apply the six steps in the decision-making process to a decision that you have made or are in the process of making. By applying this model to your own decision situation, Test Bank

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what insights do you gain regarding how effective you are as a decision maker? Answer: Figure 6.5 from the text depicts a six-step decision-making process. These steps are described below: Step 1: identify and define the problem. This is a stage of information gathering, information processing, and deliberation. Step 2: generate and evaluate alternative solutions. Several potential solutions are formulated at this stage. More information is gathered, data are analyzed, and the advantages and disadvantages associated with possible alternative courses of action are identified. Step 3: choose a preferred course of action and conduct the “ethics double-check.” In this step, a decision is made to pursue a particular course of action and the ethical implications of it are examined. Step 4: implement the action. In this step, appropriate action plans must be established and fully implemented. Step 5: evaluate results. Evaluation involves comparing accomplishments to objectives. Step 6: ethical reasoning. Each step in the process should be assessed with ethical reasoning, including four ethics criteria. The students should evaluate their own decision situation in light of the activities that occur that each step of the above process. Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Evaluation Difficulty: Hard AACSB: Reflective Thinking Solution: 252) How can managers ensure they are making ethical decisions? Answer: Any decision that managers make should be ethical. Any decision that managers make should meet the “ethics double-check” of Step 3 of the decision-making process. The “ethics double-check” should address two spotlight questions: “How would I feel if my family found out about this decision?” and “How would I feel if this decision were published in the local newspaper?” If a manager experiences any discomfort in answering these questions honestly, the decision probably has ethical shortcomings. In addition to the two spotlight questions, managers should ask and answer the following questions: Does the decision satisfy all constituents or stakeholders? Does the decision respect the rights and duties of everyone? Is the decision consistent with the canons of justice? Is the decision consistent with my responsibilities to care? Managers can proceed with confidence when they can answer affirmatively to these questions. Clearly, examining the ethics of a proposed decision may result in both better decisions and the prevention of costly litigation.

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Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 253) What is the role of ethical reasoning in the decision-making process? How can ethical reasoning be checked in decision making? Answer: Each step in the decision-making process can and should be linked with ethical reasoning. The choices made often have moral dimensions that might easily be overlooked. We sometimes have to take special care to stay tuned into virtues—things like fairness, kindness, compassion, and generosity—and guard against vices—things like greed, anger, ignorance, and lust. One way to check ethical reasoning in decision making is to ask and Answer pointed questions that bring critical thinking into the process. Gerald Cavanagh and his associates, for example, suggest that a decision should test positive on these four ethics criteria. 1. Utility—Does the decision satisfy all constituents or stakeholders? 2. Rights—Does the decision respect the rights and duties of everyone? 3. Justice—Is the decision consistent with the canons of justice? 4. Caring—Is the decision consistent with my responsibilities to care? Learning Objective 7.3: Explain the six steps in the decision-making process. Section Reference 7.3: The Decision-Making Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 254) How does design thinking help in making creative decisions? Answer: Design thinking unlocks creativity in decision making through a process of experiencing, ideation, and prototyping. Experiencing involves defining problems by research and observation and not simply accepting them as delivered. Ideation involves visualizing and brainstorming potential solutions in collaboration with others. Prototyping involves testing and modifying the potential solution over and over to achieve the best outcome. Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 255) The text discusses creative decision making as more likely to occur when people involved have stronger creativity skill sets. Identify at least six of those skills listed. Answer: Work with high energy Identify problems, plan, make decisions Hold one’s ground in face of criticism Accept responsibility for what happens Be resourceful, even in difficult situations Be both systematic and intuitive in problem solving Think “outside of the box” (divergent thinking) Synthesize and find correct answers (convergent thinking) Use “lateral thinking,” looking at diverse ways to solve problems Transfer learning from one setting to others “Step back,” be objective, question assumptions Learning Objective 7.4: Describe the potential pitfalls and sources of creativity in managerial decision making. Section Reference 7.4: Decision-Making Pitfalls, Creativity, and Integrative Thinking Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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CHAPTER 8 PLANNING PROCESSES AND TECHNIQUES Question type: True/False 1) The management process involves planning, organizing, leading, and controlling the use of resources to achieve performance objectives. Answer: True Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 2) Planning is the process of setting objectives and determining what should be done to accomplish them. Answer: True Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 3) Controlling is the process of setting objectives and determining how to accomplish them. Answer: False Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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4) Leading refers to guiding the efforts of human resources to ensure high levels of task accomplishment. Answer: True Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 5) Planning in organizations creates a solid platform to assist managers in allocating and arranging resources to accomplish essential tasks in the organization. Answer: True Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 6) Without planning, control lacks the follow-through needed to ensure that things work as planned. Answer: False Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 7) Without control, planning lacks a framework for measuring how well things are going and what could be done to improve things. Answer: False Test Bank

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Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 8) Although planning focuses attention on defining and setting objectives, it does not concern itself with the implementation of those objectives. Answer: False Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 9) Planning eliminates the need for effective leadership. Answer: False Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 10) Planning is a five-step process that includes defining objectives, determining current status relative to objectives, developing premises regarding future conditions, analyzing action alternatives and choosing among them, and implementing the plan and evaluating results. Answer: True Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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11) The planning process is a systematic way of setting performance objectives and deciding how to best achieve them. Answer: True Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 12) In the planning process, objectives refer to the specific results or desired outcomes that one intends to achieve. Answer: True Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 13) Planning is an ongoing process engaged in simultaneously with other daily work processes. Answer: True Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 14) Stretch goals are performance targets that we must work extra hard to reach. Answer: True Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Test Bank

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Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 15) Plans alone don’t deliver results; implemented plans do. Answer: True Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 16) An organization with flexibility operates with an orientation toward the past rather than the future. Answer: False Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 17) Effective planning improves focus and flexibility, provides an action orientation, helps to improve coordination, and facilitates better control and time management. Answer: True Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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18) An organization with focus knows the needs of its customers and knows how to serve them well; an individual with focus knows where he or she wants to go in a career or situation and can retain that objective even in difficult circumstances. Answer: True Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 19) Planning helps us avoid simply being carried along by the flow of events, and focuses our attention on priorities. Answer: True Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 20) Planning provides action orientations for people and organizations that are results oriented, priority oriented, advantage oriented, and change oriented. Answer: True Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 21) When plans are coordinated among the various systems and components of the organization, there is less likelihood that multiple accomplishments will add up to the desired results for the organization. Answer: False Test Bank

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Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 22) Without planning, control lacks objectives and standards for measuring how well things are going and what could be done to make them go better. Answer: True Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 23) For effective time management, one must become calendar-bound by letting others control one’s schedule. Answer: False Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 24) Planning helps managers and organizations to stay ahead of the competition by creating a performance-oriented sense of direction, making sure the most important things get attention first, ensuring that all resources are used to best advantage, and anticipating problems and opportunities so they can be dealt with in the best way. Answer: True Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Analysis Difficulty: Medium Test Bank

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AACSB: Analytic 25) Effective time management involves choices about the allocation of time to the most important priorities. Answer: True Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 26) Good time management involves prioritizing your work, screening calls and emails, and saying “no” to distracting requests. Answer: True Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 27) Planning time frames are shrinking leaving top management is no longer responsible for setting longer-term plans and directions for the organization. Answer: False Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 28) Akira is an accomplished manager, who is always the first one in the office and the last to leave. Akira carefully plans out each day, with a calendar full of meetings, conferences and strict times set aside for specific tasks. At the same time Akira wants to be available to team members, so they frequently drop by to talk about ongoing plans and tasks. And finally, Akira tends to focus on lower priority tasks thinking they will take Test Bank

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less time to complete which should leave more time for the more important tasks. Based on this, one can conclude that Akira is effective in time management. Answer: False Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Application Difficulty: Medium AACSB: Analytic 29) A long-term plan covers three or more years, a short-term plan covers a one to threeyear timeline, while a sprint plan covers a period of less than one year. Answer: False Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 30) All managers, regardless of their levels, will use the same time horizon to plan their work activities. Answer: False Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 31) Strategic plans are focused only on a specific department of an organization. Answer: False Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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32) Strategic plans ideally set forth the goals and objectives needed to accomplish the organization’s vision in terms of mission or purpose and what it hopes to be in the future. Answer: True Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 33) An organization’s vision clarifies the purpose of the organization and expresses what it hopes to be in the future. Answer: True Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 34) Tactical plans often take the form of operational plans that indicate how different components of the enterprise will contribute to the overall strategy. Answer: False Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 35) A functional plan indicates how different operations within the organization will help advance the overall strategy. Answer: True Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 36) Examples of functional plans include production plans, financial plans, logistics plans, and HR plans. Answer: True Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 37) Operational plans define what needs to be done in specific functions or work units to implement strategic plans and achieve strategic objectives. Answer: True Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 38) Typical strategic plans in a business would include dealing with the methods and technology needed by people in their work and dealing with money required to support various operations. Typical operational plans in a business would include dealing with requirements of selling and distributing goods or services and dealing with recruitment, selection, and placement of people into jobs. Answer: False Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Application Difficulty: Medium AACSB: Analytic 39) Operational plans include single-use plans like budgets that apply to one specific task or time period. Answer: True Test Bank

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Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 40) Policies set expectations for many aspects of employee behaviour. Answer: True Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 41) Policies and procedures are single-use plans for meeting the needs of a well-defined situation in a timely manner. Answer: False Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 42) Policies define precise actions to be taken while procedures outline the broad guidelines as to how the actions will be taken. Answer: False Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 43) Procedures set broad guidelines for making decisions and taking action in specific circumstances. Test Bank

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Answer: False Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 44) Standard operating procedures are rules that are can be found in employee manuals. Answer: True Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 45) Budgets are single-use plans that commit resources to activities, projects, or programs. Answer: True Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 46) To be “over budget” is generally considered bad for a company or an individual; to come in “under budget” is generally good. Answer: True Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 47) Operating budgets allocate resources such as labour, equipment, and space. Test Bank

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Answer: False Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 48) A flexible budget allocates resources as if each budget were brand new. Answer: False Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 49) A zero-based budget and a project schedule are examples of standing plans that are designed to cover recurring situations. Answer: False Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 50) A monthly operating budget is an example of a single-use plan that serves the needs and objectives of a well-defined situation in a timely manner. Answer: True Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 51) A fixed budget is defined as one that allocates a fixed amount of resources for a specific purpose. Test Bank

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Answer: True Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 52) A zero-based budget allows the allocation of resources to vary in proportion with various levels of activity. Answer: False Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 53) Fixed budgets define specific task objectives, link activities to be accomplished with due dates, and identify the amounts and timing of resource requirements. Answer: False Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 54) Qualitative forecasting uses expert opinions to predict the future. Answer: True Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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55) Using the opinions of persons with special expertise to make predictions about the future is called qualitative forecasting. Answer: True Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 56) Using mathematical and statistical analyses of historical data and surveys to predict future events is called quantitative forecasting. Answer: True Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 57) Quantitative forecasting techniques use expert opinions to predict the future, whereas qualitative forecasting uses mathematical analyses to predict future events. Answer: False Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 58) Forecasting is a process of making quantitative or qualitative predictions about what will happen in the future; yet in the final analysis, forecasting is subject to error because it always relies on human judgment and interpretation. Answer: True Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Analysis Difficulty: Medium Test Bank

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AACSB: Analytic 59) Contingency planning identifies alternative courses of action that can be implemented to meet the needs of changing circumstances. Answer: True Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 60) Contingency planning does not specify different courses of action under different conditions. Answer: False Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 61) Contingency planning focuses on early identification of possible shifts in future events. Answer: True Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 62) Contingency planning contains trigger points that indicate when preselected alternative plans should be activated. Answer: True Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 63) Scenario planning is a short-term version of contingency planning. Answer: False Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 64) Scenario planning involves identifying alternative future states of affairs that may occur and then developing plans to deal with each case should it occur. Answer: True Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 65) Scenario planning has helped Royal Dutch/Shell adjust their strategies and operations in order to be better prepared than their competitors for future shocks. Answer: True Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 66) Both contingency planning and scenario planning identify alternative courses of action and are invaluable in an uncertain environment. The difference is that contingency planning has a long-term focus while scenario planning has a short-term focus. Answer: False Test Bank

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Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 67) Benchmarking is used to gain perspective on current organizational performance by using internal and external comparisons. Answer: True Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 68) Benchmarking is done to determine what other organizations are doing well and planning on incorporating those good ideas into one’s own organization. Answer: True Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 69) Internal benchmarking refers to those things that are done by both competitors and non-competitors that enable them to achieve superior performance. Answer: False Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 70) Internal benchmarking encourages members and work units to learn each others best practices. Test Bank

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Answer: True Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 71) Brynel is the manager of a local automobile dealership. Each month managers from all the other dealerships meet to discuss marketing campaigns and strategies, the local economy and similar topics. During the course of the day Brynel will often speak one on one with other managers to find out what is working for them and not working for them in their parts and service departments. These are the two departments that Brynel has found to be weakest in the organization. On returning to the dealership Brynel will then call a meeting with his parts and service managers to go over what Brynel found and see if they can be implemented. This is an example of internal benchmarking. Answer: False Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 72) If staff planners are used, people may lack the commitment needed to successfully implement plans no matter how good those plans are. Answer: True Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 73) Staff planners are individuals who lead and coordinate the planning function for an organization for one of its major components. Answer: True Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 74) An important risk associated with the use of staff planners is the communication gap that can develop between staff planners and line managers. Answer: True Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 75) Great goals include an element of challenging and stretching while still being realistic and possible to achieve. Answer: True Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 76) A goal can only be considered ‘great’ if it has all five of the SMART characteristics. Answer: True Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 77) The five characteristics of a SMART goal are specific, measurable, attainable, relevant and timely. Answer: True Learning Objective 8.4: Explain how goals and participation influence planning success. Test Bank

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Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 78) Carlyn arrived at work on Monday morning to find that the management team had come up with a new set of goals for the coming months. The first goal listed was that customers calls were to last no longer than 2.5 minutes regardless of the customer issue. Carlyn knows from experience that on average a customer call takes at least 4.0 minutes to satisfactorily complete. The reward for averaging 2.5 minutes per call is an extra day off per month; no penalty was noted for not achieving the goal. This action by the management team is in violation of the measurable characteristic of SMART goals. Answer: False Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Application Difficulty: Medium AACSB: Analytic 79) As long as people have goals, how they are set doesn’t really make much of an impact on their success or not. Answer: False Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Comprehension Difficulty: Hard AACSB: Analytic 80) A good performance objective should be challenging and specific, however it need not be measurable or time defined. Answer: False Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Test Bank

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81) On those jobs where performance is difficult to quantify, performance objectives can be stated as verifiable work activities. Answer: True Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 82) Charlie arrived at work on Monday morning to find that the management team had decided to promote Charlie to Accounts Receivable supervisor with the overall goal of reducing the time it takes customers to pay their accounts. Charlie has completed a number of business management and accounting courses; however, Charlie has no real supervisory experience. The company has offered to send Charlie to a three-day management training seminar. This is an example of an outcome goal, with the outcome defined by management as Charlie becoming an effective supervisor. Answer: False Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Application Difficulty: Medium AACSB: Analytic 83) Companies should provide employees with clear and quantified work goals to help managers and employees identify problems before they interfere with performance. Answer: True Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 84) Strategic goals set by top management cascade down the organization step by step to become quality management objectives for lower levels. Answer: True Test Bank

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Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 85) Aligning goals from one level to the next facilitates the right things happening at the right time on all levels of the organization. Answer: True Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 86) When goals are correctly aligned between team leaders and team members, both will jointly plan goals, and then individually act and control their actions and results. Answer: False Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 87) Management by objectives (MBO) is a structured process of regular communication in which a supervisor/team leader and subordinates/team members jointly set performance objectives and review results accomplished. Answer: True Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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88) In management by objectives (MBO), the supervisor/team leader and subordinates/team members jointly set performance objectives and review the results accomplished. Answer: True Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 89) Improvement objectives, personal development objectives, and maintenance objectives can be specified in a management by objectives (MBO) contract. Answer: True Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 90) In using management by objectives (MBO), managers should avoid having subordinates engage in self-appraisal of their performance results in terms of their performance objectives. Answer: False Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 91) Advantages of management by objectives (MBO) include focusing the work efforts of subordinates/team members on the most important tasks and objectives, and the work efforts of the supervisor/team leader on areas of support that can help subordinates/team members meet agreed-upon objectives. Answer: True Learning Objective 8.4: Explain how goals and participation influence planning success. Test Bank

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Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 92) Participatory planning requires that the planning process include people who will be affected by the resulting plans and/or will be asked to help implement them. Answer: True Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 93) The use of participatory planning can increase creativity in planning, the commitment of people for planning, and the information available for planning. Answer: True Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 94) The use of participatory planning can increase conflict over scarce resources and consequently decrease acceptance of chosen alternatives. Answer: False Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 95) While participation in the planning process can increase the amount of time spent in planning, it nonetheless can enhance results by improving implementation. Answer: True Test Bank

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Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic Question type: Multiple Choice 96) ___ is the process of setting objectives and determining how to accomplish them. a) Directing b) Controlling c) Leading d) Organizing e) Planning Answer: e Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 97) A(n) ___ is a statement of action steps to be taken to accomplish the objectives. a) concept b) objective c) guideline d) goal e) plan Answer: e Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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98) Setting objectives and determining what should be done to accomplish them is the essence of the management function of ___. a) productivity improvement b) controlling c) leading d) organizing e) planning Answer: e Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 99) In the planning process, ___ refer to the specific results or desired outcomes that one intends to achieve. a) guidelines b) objectives c) procedures d) policies e) alternatives Answer: b Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 100) Which of the following management functions deals with the allocation and arrangement of resources to accomplish tasks? a) planning b) leading c) organizing d) controlling Test Bank

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e) directing Answer: c Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 101) ___ is a management function that guides the efforts of human resources to ensure high levels of task accomplishment. a) Leading b) Directing c) Resourcing d) Organizing e) Processing Answer: a Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 102) Which of the following management functions deals with monitoring task accomplishments and taking necessary corrective action? a) coordinating b) processing c) controlling d) leading e) directing Answer: c Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 103) Abasi, the supervisor at KNYA Inc., is in the process of setting certain specific goals for the team, and is deciding how the team can reach those goals. In this scenario, Abasi is involved in the process of ___. a) planning b) leading c) organizing d) controlling e) directing Answer: a Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Application Difficulty: Medium AACSB: Analytic 104) Which of the following statements about planning and controlling is/are accurate? a) Even the best plans must be changed at some point due to an uncertain future. b) Managers must be flexible in response to new circumstances. c) Managers must have the discipline to maintain control when performance pressures are unrelenting. d) b and c e) a, b, and c Answer: e Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 105) Which one of the following lists the planning steps in the correct sequence?

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a) Define objectives, determine current standing relative to objectives, evaluate current accomplishments, analyze and choose among possible action alternatives, and implement the plan and evaluate results. b) Define objectives, develop premises regarding future conditions, determine current standing relative to objectives, analyze and choose among possible action alternatives, and implement the plan and evaluate results. c) Define objectives, determine current standing relative to objectives, develop premises regarding future conditions, analyze and choose among possible action alternatives, and implement the plan and evaluate results. d) Determine current standing relative to objectives, define objectives, develop premises regarding future conditions, analyze and choose among possible action alternatives, and implement the plan and evaluate results. e) Develop premises regarding future conditions, define objectives, determine current standing relative to objectives, analyze and choose among possible action alternatives, and implement the plan and evaluate results. Answer: c Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 106) Which of the following is the first step in the planning process? a) analyzing alternatives and making a plan b) defining the objectives c) implementing the plan and evaluating results d) determining where one stands vis-à-vis objectives e) developing premises regarding future conditions Answer: b Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 107) At the beginning of every month, the owners of a small bakery define the major objectives for that month (for example, the profit needed for that month). They also try to Test Bank

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anticipate any problems or issues that could prevent them from reaching their objectives and create a plan of action if needed. At the end of the month, they check to see if they met their objectives. Creating such good plans, will help them to a) make sure their business is always successful. b) ensure they are always prepared. c) keep a results-driven sense of direction. d) identify opportunities. e) be better organized. Answer: c Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Application Difficulty: Medium AACSB: Analytic 108) The chief technology officer (CTO) at Acme Appliances, is in the process of identifying the results the company wants to achieve next year. The CTO also has an idea of how far off the desired mark the company is currently. The CTO is most likely in the process of a) developing premises regarding future conditions. b) defining her company’s objectives. c) analyzing her company’s alternatives and planning. d) implementing the plan and evaluating the results. e) determining where her company stands vis-à-vis objectives. Answer: b Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Application Difficulty: Medium AACSB: Analytic 109) In which step of the planning process would one know where one is placed in reaching the goals, and what strengths work in one’s favour and what weaknesses may hold one back? a) implementing the plan and evaluating results Test Bank

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b) defining the objectives c) developing premises regarding future conditions d) analyzing alternatives and making a plan e) determining where one stands vis-à-vis objectives Answer: e Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 110) After evaluating the current sales of PCs in relation to the desired sales, the marketing manager at Alfalah Inc., generates alternative campaigns that may affect the PC’s expected sales. The manager identifies, for each campaign, things that may help or hinder progress toward the company’s objectives. Based on this information, the manager is currently in which phase of the planning process? a) defining the objectives b) determining where one stands vis-à-vis objectives c) developing premises regarding future conditions d) analyzing alternatives and making a plan e) implementing the plan and evaluating results Answer: c Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Application Difficulty: Medium AACSB: Analytic 111) In which phase of the planning process would one choose the alternative to accomplish one’s objectives and describe what must be done to follow the best course of action? a) analyzing alternatives and making a plan b) defining the objectives c) implementing the plan and evaluating results d) determining where one stands vis-à-vis objectives e) developing premises regarding future conditions Test Bank

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Answer: a Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 112) Avery, the marketing manager at Kalx Inc., wants to check if the latest marketing campaign was successful in increasing laptop sales for the company. Which of the following steps must Avery take to measure the sales performance of the organization? a) Determine where he stands vis-à-vis objectives. b) Define the objectives. c) Develop premises regarding future conditions. d) Evaluate results and revise plans if needed. e) Analyze alternatives and make a plan. Answer: d Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Application Difficulty: Medium AACSB: Analytic 113) In which step of the planning process does one take action and carefully measure progress toward objectives? a) Define the objectives. b) Determine where you stand vis-à-vis objectives. c) Implement the plan and evaluate results. d) Analyze alternatives and make a plan. e) Develop premises regarding future conditions. Answer: c Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 114) In the planning process, ___ are the specific results or desired outcomes that one intends to achieve. a) objectives and goals b) beliefs and culture c) procedures d) policies e) guidelines Answer: a Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 115) The planning team at Abdullah and Sons has thoroughly examined all possible situations that may be encountered in the current year. They have also addressed various factors that may help or act as barriers to objectives. Which of the following steps in the planning process has been completed by the planning team at Abdullah and Sons by taking these actions? a) defining objectives b) determining where one stands vis-à-vis objectives c) developing premises regarding future conditions d) measuring performance e) implementing the plan and evaluating results Answer: c Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Application Difficulty: Medium AACSB: Analytic 116) Performance targets that we must work extra hard to reach are called ___. Test Bank

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a) stretch goals b) tactical goals c) objectives d) plans e) missions Answer: a Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 117) Aiden has been given the responsibility of meeting certain sales targets for next year, and is preparing a list of actions and measurables that aid the sales team in reaching these targets. The list includes such specific action items as preparing a customer call log, checking the quality of inputs and outputs, pricing, and details about the overall advertising strategy. In this scenario, which of the following is Aiden creating? a) goal b) policy c) plan d) concept e) objective Answer: c Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Application Difficulty: Medium AACSB: Analytic 118) Which of the following is true of planning? a) It is done by managers at scheduled times. b) It is a one-time process. c) It doesn’t need to be evaluated or monitored for viability. d) It can include the active participation of all employees. e) It can deliver results even without implementation. Test Bank

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Answer: d Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 119) Which of the following is an external source of organizational pressure? a) quest for operating efficiencies b) alternative work arrangements c) government regulations d) concerns for work–life balance e) new organizational structures Answer: c Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 120) Which of the following is an internal source of organizational pressure? a) government regulations b) changing social norms and ethical expectations c) changing technologies d) greater workplace diversity e) uncertainties of a global economy Answer: d Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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121) Which of the following statements describes the benefits of planning accurately? a) Planning improves action orientation. b) Planning improves coordination. c) Planning improves time management. d) a and b e) a, b, and c Answer: e Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 122) Which of the following is correct about focus? a) An organization with focus knows what it does best. b) An organization with focus knows the needs of its customers and knows how to serve them well. c) An individual with focus knows where he or she wants to go in a career or situation and can retain that objective even in difficult circumstances. d) all of the above e) none of the above Answer: d Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 123) Which of the following is correct about flexibility? a) An organization with flexibility is willing and able to change and adapt. b) An organization with flexibility operates with an orientation toward the future. c) An individual with flexibility adjusts career plans to fit new and developing opportunities. d) all of the above Test Bank

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e) none of the above Answer: d Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 124) ___occurs when an organization allows itself to be carried along by the flow of events. a) Coordination b) Organizational pressure c) Complacency trap d) Ecological fallacy e) Ethnocentrism Answer: c Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 125) According to Stephen R. Covey, good planning helps an organization to be a) priority oriented, results oriented, advantage oriented, change oriented. b) priority oriented, results oriented, strategy oriented, tactically oriented. c) advantage oriented, change oriented, task oriented, control oriented. d) advantage oriented, change oriented, strategy oriented, results oriented. e) advantage oriented, change oriented, strategy oriented, decision oriented. Answer: a Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 126) Ashton is an assistant manager at a popular retail outlet and likes to keep the employees motivated and insists that the sales team meet their daily sales target and strive to go beyond their targets for extra bonuses. Ashton can be regarded as a(n) ___ manager. a) change oriented b) results oriented c) priority oriented d) relational oriented e) complacency oriented Answer: b Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Application Difficulty: Medium AACSB: Analytic 127) A(n) ___ oriented manager ensures that all resources are used to the best interest and benefit. a) result b) change c) relation d) priority e) advantage Answer: e Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 128) A(n) ___ oriented manager anticipates problems and opportunities so they can be dealt with most effectively. a) result Test Bank

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b) employee c) priority d) change e) advantage Answer: d Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 129) A(n) ___ oriented manager makes sure the most important things get first attention. a) priority b) result c) advantage d) change e) innovation Answer: a Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 130) Without ___, ___ lacks a framework for measuring how well things are going and what could be done to improve things. a) problem solving; organizing b) planning; controlling c) planning; leading d) controlling; goal setting e) planning; decision making Answer: b Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Test Bank

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Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 131) Without ___, ___ lacks the follow-through needed to ensure that things work as planned. a) controlling; organizing b) planning; controlling c) controlling; leading d) planning; problem solving e) controlling; planning Answer: e Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Esay AACSB: Analytic 132) Which of the following is true about planning? a) Good planning improves rigidity. b) An organization with flexibility starts losing focus. c) Planning allows organizations to get into the complacency trap. d) Planning improves coordination. e) When planning is not done well, it facilitates control. Answer: d Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 133) Without planning, the process of ___ lacks a framework for measuring how well things are going and what could be done to improve things. Test Bank

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a) organizing b) control c) leading d) goal setting e) decision making Answer: b Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 134) The link between planning and controlling begins with ___. a) anticipating problems and opportunities b) setting objectives and standards c) analyzing the alternatives d) evaluating and monitoring the results e) understanding the internal and external organizational threats Answer: b Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 135) Effective ___ involves choices about the allocation of time to the most important priorities. a) inventory management b) cash management c) time management d) project budgeting e) strategic management Answer: c

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Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 136) Good time management includes all the following except a) saying no to requests that divert you from what you should be doing. b) having a system for screening telephone calls, emails, and requests for meetings. c) not letting drop-in visitors or instant messages use up too much of your time. d) following priorities; working on the most important and urgent tasks first. e) not leaving details for others to address or leaving them for later. Answer: e Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 137) Akira is an accomplished manager, who is always the first one in the office and the last to leave. Akira carefully plans out each week and day, with a calendar full of meetings, conferences and strict times set aside for specific tasks including returning telephone calls and answering emails. At the same time Akira wants to be available to team members, so they frequently drop by to talk about ongoing plans and tasks, and unless Akira has a scheduled meeting or conference, will spend time with the team member to discuss whatever issue they have brought forward. And finally, Akira tends to focus on lower priority tasks thinking they will take less time to complete which should leave more time for the more important tasks. Based on this, which of the following statements is correct about Akira’s time management skills. a) Akira is very skilled at time management. b) Akira is adhering to all seven of the time management tips. c) Akira is going against all seven of the time management tips. d) Akira is following only one of the seven time management tips by scheduling telephone calls and answering emails. e) Akira is following two of the seven time management tips by prioritizing work and working on the smaller tasks leaving time for more important tasks and by scheduling telephone calls and answering emails. Test Bank

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Answer: d Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Evaluation Difficulty: Hard AACSB: Analytic 138) Which of the following is true about long-range and short-range plans? a) There is a lot more permanency to long-term plans today than there was in the past. b) Long-term plans are not subject to frequent revisions. c) Long-term plans typically look at least ten years or more into the future. d) Planning time frames are rapidly and continually shifting. e) Lower management is mainly responsible for creating short-term plans. Answer: d Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 139) Even though the time frames of planning are shrinking, ___ responsible for setting longer-term plans and directions for the organization. a) lower management is b) middle management is c) shareholders are d) top management is e) consumers are Answer: d Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 140) Which of the following statements accurately describe planning time horizons? Test Bank

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a) Short-range plans cover one year or less into the future. b) Intermediate-range plans cover a time frame of one to two years into the future. c) Long-range plans cover a time frame of three or more years into the future. d) all of the above e) none of the above Answer: d Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 141) ___ are longer-term plans that set broad directions for the organization. a) Procedural plans b) Functional plans c) Strategic plans d) Tactical plans e) Operational plans Answer: c Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 142) Which level of management typically spends more the most time determining longrange plans? a) lower-level managers b) middle-level managers c) lower-level and middle-level managers d) top-level managers e) all levels of management Answer: d Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 143) Which of the following is true of strategic plans? a) Plans at the middle and lower levels of the traditional organizational structure tend to be strategic. b) Strategic plans are focused only on a specific department or group of employees in the organization. c) They are short-range plans to achieve an immediate goal. d) Strategic plans ideally set forth the goals and objectives needed to accomplish the organization’s vision e) They refer to the “tactical” plans of the organization. Answer: d Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 144) ___ plans set broad, comprehensive, and longer-term action directions for the entire organization. a) Normal b) Single-use c) Strategic d) Tactical e) Operational Answer: c Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 145) Strategic planning begins with ___. a) tactical planning b) a vision Test Bank

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c) time management d) forecasting e) none of the above Answer: b Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 146) A ___ clarifies the purpose of the organization and expresses what it hopes to be in the future. a) vision b) mission c) policy d) procedure e) budget Answer: a Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 147) V-Mart, an online retailer, hopes to be one of the most popular, highly efficient, and biggest e-commerce organizations in the country. It wishes to excel in all its endeavors to serve customers. This is an example of a a) policy. b) functional plan. c) code of conduct. d) vision. e) tactical plan. Answer: d Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Application Test Bank

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Difficulty: Medium AACSB: Analytic 148) A ___ helps to implement all or parts of a strategic plan. a) strategic plan b) tactical plan c) long-range plan d) short-range plan e) functional plan Answer: b Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 149) Which of the following are implications of research conducted by Elliot Jaques? a) People vary in their capabilities to think out, organize, and work through events of different time horizons. b) Most people work comfortably with only three-month time spans; smaller groups of people work well with a one-year time frame; and only one person in several million can handle a 20-year time frame. c) Managers working at different levels in the organization must plan over varying time horizons. d) all of the above e) none of the above Answer: d Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 150) The management of Spielzeit, a toy manufacturing company, decides to promote their products at various shopping malls in the city and surrounding municipalities. To do so, they create ten teams of four employees each to visit shopping malls and promote the Test Bank

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toy products. Management’s decision to allocate the company’s human resources for promoting the toys may be regarded as a ___ plan. a) tactical b) strategic c) top-down d) production e) visionary Answer: a Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Application Difficulty: Medium AACSB: Analytic 151) Production, financial, facilities, marketing, and human resources are all examples of ___ plans. a) strategic b) operational c) contingency d) functional e) flexible Answer: d Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 152) All of the following are examples of functional plans except a) logistics plans. b) facilities plans. c) human resources plans. d) operational plans. e) financial plans. Answer: d Test Bank

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Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 153) ___ indicate how different operations within the organization will help advance the overall strategy. a) Operational plans b) Policies c) Budgets d) Functional plans e) Missions Answer: d Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 154) Which of the following functional plans deal with work methods and technologies? a) human resource b) marketing c) facilities d) financial e) production Answer: e Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 155) Functional plans dealing with money and capital investments are called ___ plans. a) marketing b) logistics Test Bank

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c) financial d) human resource e) facilities Answer: c Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 156) Nakatomi Inc. wants to open a new automobile manufacturing unit in Kasnia. Upper management of Nakatomi has created a team whose sole assignment is to design the layout of the new factory in Kasnia. In this scenario, Nakatomi is dealing with the ___ planning. a) facilities b) financial c) operational d) marketing e) inventory Answer: a Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Application Difficulty: Medium AACSB: Analytic 157) One of Hazel Ltd.’s original suppliers has unexpectedly shut down, Hazel must now find alternate suppliers to provide resources for its manufacturing plant. Such plans are referred to as ___ plans. a) production b) facilities c) marketing d) logistics e) financial Answer: d Learning Objective 8.2: List and give examples of the types of plans used by managers. Test Bank

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Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Application Difficulty: Medium AACSB: Analytic 158) ___ plans are functional plans that deal with suppliers and acquiring resource inputs. a) Human resource b) Logistics c) Marketing d) Production e) Facilities Answer: b Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 159) ___ plans deal with selling and distributing goods or services. a) Production b) Financial c) Facilities d) Logistics e) Marketing Answer: e Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 160) Ainsley is the owner of a hobby shop and has come up with a new plan to improve the sale and distribution of the shop’s merchandise. This plan includes curb-side delivery and increasing the shop’s web presence. Which type of plan did Ainsley employ in this scenario? a) human resources Test Bank

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b) logistics c) marketing d) production e) facilities Answer: c Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Application Difficulty: Medium AACSB: Analytic 161) Which of the following functional plans deal with building a talented workforce? a) human resource b) logistics c) marketing d) production e) facilities Answer: a Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 162) A(n) ___ plan identifies short-term activities to implement the broad plans of the company and includes standing plans and single-use plans. a) forecast b) functional c) strategic d) operational e) tactical Answer: d Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 163) How are strategic plans and operational plans related? a) Strategic plans and operational plans are unrelated. b) Strategic plans define what needs to be done to implement operational plans. c) Strategic plans are developed to address long-term organizational objectives; operational plans implement strategic plans. d) Operational plans are developed to meet long-term organizational objectives; strategic plans implement operational plans. e) Strategic plans set operational objectives; operational plans carry out those objectives. Answer: c Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 164) Typical operational plans in a business would deal with all the following except a) methods and technology needed by people in their work. b) money required to support various operations. c) requirements of selling and distributing goods or services. d) company growth through mergers and acquisitions. e) recruitment, selection, and placement of people into jobs. Answer: c Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Application Difficulty: Medium AACSB: Analytic 165) Plans that define what needs to be done in specific functions or work units in order to implement strategic plans and achieve strategic objectives are called _______ plans. a) business b) implementing c) company d) tactical Test Bank

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e) operational Answer: e Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 166) Policies and procedures that are used repeatedly are called ______ plans. a) single-use b) standing c) strategic d) scheduling e) individual Answer: b Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 167) Which of the following is a standing plan? a) a policy b) a budget c) a vision d) a mission e) a forecast Answer: a Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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168) An organization’s zero-tolerance policy towards sexual harassment in the workplace is an example of a ___ plan. a) facilities b) financial c) single-use d) standing e) logistics Answer: d Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Application Difficulty: Medium AACSB: Analytic 169) Which of the following is a single-use plan? a) a procedure b) a policy c) a budget d) a mission e) a vision Answer: c Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 170) ___ communicate broad guidelines for making decisions and taking action in specific circumstances. a) Rules b) Procedures c) Policies d) Guidelines e) Regulations Answer: c Test Bank

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Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 171) ___ or ___ describe exactly what actions are to be taken in specific situations. a) Rules; procedures. b) Rules; goals. c) Procedures; policies. d) Projects; project management. e) Objectives; strategies. Answer: a Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 172) ___ are often found in employee manuals as standard operating procedures. a) Goals b) Rules c) Budgets d) a and b e) a and c Answer: b Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 173) Which of the following statements best distinguishes procedures and policies? a) Procedures help obtain organizational objectives; policies do not. b) Procedures present a plan of action for specific situations; policies are broad guidelines. Test Bank

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c) A procedure is a single-use plan; a policy is a standing plan. d) Procedures guide ethics; policies guide fair employment. e) A procedure is a standing-use plan; a policy is a single-use plan. Answer: b Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 174) Which of the following describes the difference between a policy and a procedure? a) A policy focuses on the organization, while a procedure focuses only on a single department. b) A policy sets a broad guideline, and a procedure defines precise actions to be taken. c) A policy is a single-use plan, a procedure is a standing plan. d) A policy identifies short-term directions for the organization. A procedure identifies long-term directions. e) A policy guides fair employment, while a procedure guides ethical principles. Answer: b Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 175) When a university issues a statement that it “… will not tolerate sexual harassment in relation to the evaluation of employee or student performance …,” a ___ plan in the form of an organizational ___ is being communicated. a) single-use; procedure. b) standing-use; rule. c) standing; procedure. d) single-use; policy. e) standing; policy. Answer: e Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Test Bank

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Bloom’s: Application Difficulty: Medium AACSB: Analytic 176) ___ are single-use plans that commit resources for specific time periods to activities, projects, or programs. a) Procedures b) Policies c) Guidelines d) Budgets e) Forecasts Answer: d Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 177) Financial budgets a) project cash flows and expenditures. b) plot anticipated sales or revenues against expenses. c) allocate resources like labour, equipment, and space. d) allocate a stated amount of resources for a specific purpose. e) allow resources to vary in proportion with various levels of activity. Answer: a Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 178) ___ budgets allocate resources such as labour, equipment, and space. a) Financial b) Operating c) Nonmonetary d) Zero-based Test Bank

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e) Flexible Answer: c Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 179) Ajax has prepared the following budget for the upcoming quarter. Ajax Limited ________ Budget For the Quarter ending March 31, 2022 Cash collections from customers Investment income Proceeds on sale of land Total

$550,000 50,000 600,000 $1,200,000

Payments to suppliers Operating expense payments Total

$900,000 415,000 $1,315,000

Surplus (Deficit) This is an example of a __________ budget.

($115,000)

a) Financial b) Operating c) Nonmonetary d) Zero-based e) Flexible Answer: a Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Synthesis Difficulty: Hard AACSB: Analytic 180) Which of the following budgets reports anticipated revenues and expenses? Test Bank

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a) zero-based b) nonmonetary c) financial d) operating e) fixed Answer: d Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 181) A fixed budget a) allocates a stated amount of resources for a specific purpose. b) allocates resources as if each budget were brand new. c) allows resources to vary in proportion with various levels of activity. d) allocates resources like labour, equipment, and space. e) always has equal expenditures and revenue. Answer: a Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 182) A(n) ___ budget allows the allocation of resources to vary in proportion with various levels of activity. a) master b) strategic c) operational d) flexible e) zero-based Answer: d Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 183) In a chain of discount department stores, personnel needs are estimated in three different ways: (a) for a high demand season, (b) for a moderate demand season, and (c) for a slack season. By taking these three activity levels into account, managers are developing a ___. a) fixed budget b) flexible budget c) zero-based budget d) standing-use plan e) policy Answer: b Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Application Difficulty: Medium AACSB: Analytic 184) When a project or activity is budgeted in each new budget period as if it were brand new, a(n) ___ budgeting approach is being used. a) fixed b) flexible c) zero-based d) contingency e) operational Answer: c Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 185) Morrison Manufacturing (MM) creates a budget for projects or activities in each new budget period as if it were brand new. It does not renew any of the past funding. MM is using a(n) ___ budgeting approach. Test Bank

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a) nonmonetary b) operating c) zero-based d) fixed e) flexible Answer: c Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 186) Chris manages a construction company. One of Chris’s responsibilities is to oversee the allocation of equipment and construction workers to different construction projects . Chris allocates most of the equipment and workers to high priority projects. In this scenario, Chris creates a ___ budget. a) financial b) operating c) non-monetary d) zero-based e) personal Answer: c Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Application Difficulty: Medium AACSB: Analytic 187) In order to establish itself in Canada Target Corporation (Target) bought the struggling Zellers Inc. from Hudson’s Bay Company in 2011. Target planned to spend over $1 billion converting approximately 150 Zellers stores into Target stores within the following two to three years. What type of plan would Target have needed for this type of move? a) short-range plan b) forecasting plan c) long-range plan d) contingency plan Test Bank

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e) operational plan Answer: c Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Application Difficulty: Medium AACSB: Analytic 188) ___ is the process of predicting what will happen in the future. a) Benchmarking b) Scenario planning c) Contingency planning d) Staff planning e) Forecasting Answer: e Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 189) The current issue of a popular business periodical predicted a global economic downturn which it attributed to a predicted increase in the inflation rate. This report is an example of ___. a) benchmarking b) scenario planning c) contingency planning d) staff planning e) forecasting Answer: e Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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190) Using the opinions of persons with special expertise to make predictions about the future is called ___. a) quantitative forecasting b) guesswork c) qualitative forecasting d) contingency planning e) expert planning Answer: c Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 191) A magazine publishes forecasts of industry conditions, interest rates, unemployment trends, and national economies every quarter. It uses expert opinion to predict the future. This method of forecasting the future falls under the category of ___ forecasting. a) specific b) attainable c) timely d) measurable e) qualitative Answer: e Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 192) Pat is the marketing manager at Kurt Consulting. Pat is predicting a 15% drop in the sales of their premium packages and has used correlation and regression analyses of previous years’ sales records to arrive at this conclusion. Pat is using ___. a) contingency planning b) qualitative forecasting c) quantitative forecasting d) internal benchmarking Test Bank

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e) external benchmarking Answer: c Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 193) Using mathematical and statistical analyses of historical data and surveys to predict future events is called ___. a) quantitative forecasting b) estimation planning c) qualitative forecasting d) contingency planning e) expert planning Answer: a Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 194) Planning that identifies alternative courses of action that can be implemented to meet the needs of changing circumstances is called ___. a) formal planning b) contingency planning c) just-in-time planning d) problem solving e) just-in-case planning Answer: c Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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195) Which of the following statements about contingency planning is false? a) Contingency planning occurs when planners decide the future will be identical to the past. b) Contingency planning anticipates events that may occur in the future. c) Contingency planning specifies different courses of action under different conditions. d) Contingency planning focuses on early identification of possible shifts in future events. e) Contingency planning contains trigger points that indicate when preselected alternative plans should be activated. Answer: a Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 196) Jean and a team of engineers have gone through the blueprint of a new commercial complex and have underlined major issues that could crop up when work starts at the site. They have also thought of possible fixes to the issues. This is an example of ___. a) benchmarking b) operational planning c) functional planning d) tactical planning e) contingency planning Answer: e Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 197) Which of the following is a long-term version of contingency planning? a) benchmarking b) scenario planning c) forecasting d) staff planning Test Bank

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e) operationalizing Answer: b Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 198) ___ involves identifying several possible future situations or states of affairs and then making plans to deal with each situation should it occur. a) Scenario planning b) External benchmarking c) Forecasting d) Staff planning e) Internal benchmarking Answer: a Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 199) Harper works for RLB financial services, a mortgage company. The company has opened a new branch in a developing country and Harper has been assigned the task of identifying all potential risks the company might face in that country. Harper has identified several possible events such as political unrest, ethnic riots, and natural calamities that would endanger the business continuity of the organization and has made plans to deal with each of these events. This is an example of _________. a) scenario planning b) performance appraisal c) contingency planning d) benchmarking e) zero-based budgeting Answer: a Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Test Bank

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Bloom’s: Application Difficulty: Medium AACSB: Analytic 200) Royal Dutch/Shell uses scenario planning to explore what the company would do if and when its oil supplies run out. For Royal Dutch/Shell, the benefits of scenario planning include which of the following? a) It helps the organization to plan ahead to make major adjustments in strategies and operations. b) It conditions the company’s executives to think. c) It enables the company to be better prepared than competitors for future shocks. d) all of the above e) none of the above Answer: d Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 201) ___ is a technique that makes use of both internal and external comparisons to better evaluate one’s current performance and identify possible actions for the future. a) Contingency planning b) Scenario planning c) Forecasting d) Management by objectives e) Benchmarking Answer: e Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 202) ___ is a planning technique that makes use of external comparisons to determine practices used by best-in-class companies to improve performance and identify possible actions for the future. Test Bank

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a) Contingency planning b) Benchmarking c) Scenario planning d) Forecasting e) Management by objectives Answer: b Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 203) ___ refer to those things that are done by both competitors and non-competitors that enable them to achieve superior performance. a) Competitive objects b) Superior goals c) Non-competitive objectives d) Best practices e) Operating activities Answer: d Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 204) Riveras, a chain of discount stores, utilized the best retailing strategies of another successful retail chain to create a market for itself. By learning from the retail chain, Riveras has used ___. a) qualitative forecasting b) quantitative forecasting c) scenario planning d) external benchmarking e) internal benchmarking Answer: d Test Bank

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Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 205) Morrison Associates, a law firm, encourages its lawyers to learn from each other about how they can handle their cases better. It encourages the lawyers to share their best practices and collectively work toward meeting the objectives of the firm. This is an example of ___. a) internal benchmarking b) forecasting c) functional planning d) tactical planning e) external benchmarking Answer: a Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 206) ___ are individuals who lead and coordinate the planning function for an organization or for one of its major components. a) Staff planners b) Project managers c) Middle managers d) Line managers e) Collaborators Answer: a Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 207) Which of the following is true about the use of staff planners? Test Bank

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a) It can lead to a communication gap between planners and implementers. b) It can lead to an increase in commitment to implement the plans. c) The use of staff planners can lead to a short-term rather than a long-term focus. d) Very few organizations use staff planners as they don’t bring any expertise to the planning process. e) The use of staff planners always reduces the focus of the planning team. Answer: a Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 208) Which of the following is true of a “great goal?” a) It is not bound by timetables. b) It is not too specific and challenging to accomplish. c) It is challenging and can be objectively measured. d) It is somewhat challenging and generic in nature. e) it focuses on activities or effort expended with specific due dates for completion. Answer: c Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 209) When job performance is difficult to quantify, performance objectives can be stated as ___. a) short-range plans b) benchmarks c) verifiable work activities d) measurable end products e) deliverables Answer: c Learning Objective 8.4: Explain how goals and participation influence planning success. Test Bank

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Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 210) The means-ends concept relates to ___. a) hierarchy of authority b) hierarchy of objectives c) control system d) responsibility structure e) zero-based budget Answer: b Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 211) As described by G. Latham and G. Seijts, effective goal setting management requires both. a) a hierarchy of authority and a hierarchy of objectives b) learning goals and outcome goals c) a measurable end product and verifiable work activities d) participatory planning and a hierarchy of goals e) a vision and a strategy Answer: b Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 212) Which of the following is true of participatory planning? a) It reduces the time needed for planning. b) It has less need for forecasting. c) It pays greater attention to contingency situations. Test Bank

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d) It can improve results by improving implementation. e) It decreases the creativity of planning. Answer: d Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 213) The use of participatory planning can produce all the following benefits except a) increase creativity in planning. b) increase commitment of people for planning. c) increase acceptance of chosen alternatives. d) increase conflict over scarce resources. e) increase information available for planning. Answer: d Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 214) ___ requires that the planning process include people who will be affected by the resulting plans and/or will be asked to help implement them. a) Contingency planning b) Scenario planning c) Strategic planning d) Participatory planning e) Benchmarking Answer: d Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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215) Silver Finance requires that its employees, managers, some customers, and others who will be affected by the resulting interest rate planning be included in the process. A selection from each of these groups may also be asked to participate in the implemention of the resulting overall interest rate structure rollout. Silver Finance is utilizing ___. a) contingency planning b) scenario planning c) management by objectives d) participatory planning e) benchmarking Answer: d Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Application Difficulty: Medium AACSB: Analytic 216) Which of the following goals is conducive to a management by objectives (MBO) process? a) Improve productivity by 15.0%. b) Increase sales within an year. c) Improve training and customer service. d) Decrease waste by 10.0% over the next eight months. e) Reduce costs by 6.0%. Answer: d Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Application Difficulty: Medium AACSB: Analytic 217) In management by objectives (MBO), the supervisor/team leader and subordinates/team members formally agree on all the following except ___. a) performance objectives for a specific time period b) plans for accomplishing the performance objectives c) standards for measuring the accomplishment of objectives d) procedures for reviewing performance results Test Bank

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e) procedures for distributing rewards based on performance results Answer: e Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Application Difficulty: Medium AACSB: Analytic 218) In a management by objectives (MBO) approach, the supervisor/team leader and subordinates/team members ___. a) jointly plan, individually act, and individually control b) individually plan, individually act, and jointly control c) jointly plan, individually act, and jointly control d) jointly plan, jointly act, and individually control e) jointly plan, jointly act, and jointly control Answer: c Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 219) Which of the following is not one of the advantages of management by objectives (MBO)? a) MBO clearly focuses a person’s work efforts on the most important tasks and objectives. b) MBO clearly focuses a person’s work efforts on the activities that are likely to result in the greatest rewards. c) MBO focuses a supervisor’s work efforts on areas of support that can help subordinates meet agreed-upon objectives. d) MBO contributes to relationship building. e) MBO encourages self-management rather than external supervisory control. Answer: b Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Analysis Test Bank

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Difficulty: Medium AACSB: Analytic Question type: Essay 220) List and briefly describe the steps in the planning process. Answer: The five basic steps in the planning process are: 1. Define your objectives––Identify desired outcomes or results in very specific ways. Know where you want to go; be specific enough so that you will know you have arrived when you get there or know how far off the mark you are at various points along the way. 2. Determine where you stand vis-à-vis objectives––Evaluate current accomplishments relative to the desired results. Know where you stand in reaching the objectives; know what strengths work in your favour and what weaknesses may hold you back. 3. Develop premises regarding future conditions––Try to anticipate future events. Generate alternative “scenarios” for what may happen; identify for each scenario things that may help or hinder progress toward your objectives. 4. Analyze alternatives and make a plan––List and carefully evaluate the possible actions that may be taken. Choose the alternative(s) most likely to accomplish your objectives; decide step by step what must be done to follow the chosen course of action. 5. Implement the plan and evaluate results––Take action and carefully measure your progress toward objectives. Do what the plan requires; evaluate results; take corrective actions and revise plans as needed. Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 221) List and briefly describe the steps in the planning process. For each of the steps include a practical example that clearly demonstrates the step. Answer: The five basic steps in the planning process are: 1. Define your objectives––Identify desired outcomes or results in very specific ways. Know where you want to go; be specific enough so that you will know you have arrived when you get there or know how far off the mark you are at various points along the way. Example: To increase potential and existing customer visits to the organization’s Facebook page. 2. Determine where you stand vis-à-vis objectives––Evaluate current accomplishments relative to the desired results. Know where you stand in reaching the objectives; know what strengths work in your favour and what weaknesses may hold you back. Test Bank

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Example: A Facebook page exists for the organization, however when comparing it to other e-commerce pages there is no way to track visits or how someone feels about the page. A current weakness is that the company currently does not employ someone who is skilled at Facebook page development. 3. Develop premises regarding future conditions––Try to anticipate future events. Generate alternative “scenarios” for what may happen; identify for each scenario things that may help or hinder progress toward your objectives. Example: Scenarios for the Facebook page development could include significant increase in sales so the organization would have to make sure their supply chain is able to handle the increased volume. 4. Analyze alternatives and make a plan––List and carefully evaluate the possible actions that may be taken. Choose the alternative(s) most likely to accomplish your objectives; decide step by step what must be done to follow the chosen course of action. Example: Hire someone who specializes in marketing on Facebook 5. Implement the plan and evaluate results––Take action and carefully measure your progress toward objectives. Do what the plan requires; evaluate results; take corrective actions and revise plans as needed. Example: Give the specialist free rein and all necessary resources to develop the Facebook page such that tracking is incorporated. Note that the suggested example is a brief one, and student examples will definitely vary however the example should clearly identify with the specific step. Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Synthesis Difficulty: Hard AACSB: Reflective Thinking 222) Describe the benefits of planning for individuals and organizations. Answer: The benefits of planning for individuals and organizations include the following: Planning improves focus and flexibility. Focus and flexibility are important to the performance of both people and organizations in highly competitive and dynamic environments. Planning improves action orientation. Planning keeps people and organizations focused on the actions that are needed to stay competitive and to become better at what they are doing. Planning helps make people and organizations more oriented toward results, priorities, advantages, and change. Planning improves coordination. Planning helps individuals, groups, and subsystems within organizations make meaningful contributions to the organization as a whole, even as they pursue their specific tasks and objectives. Planning improves control. Planning facilitates control by defining objectives and desired performance results, and identifying specific actions through which they are to be Test Bank

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pursued. Planning improves time management. Each day, managers are bombarded by a multitude of tasks and demands. They work in a setting of frequent interruptions, crises, and unexpected events. Consequently, it can be easy to lose track of objectives and fall prey to “time wasters.” Learning Objective 8.1: Identify the importance of planning and steps in the planning process. Section Reference 8.1: Why and How Managers Plan Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 223) Three broad categories of plans were presented in your textbook: Long-term and short-term plans; Strategic and Tactical Plans and Operational Plans. Define or describe each of these plan categories, including, where applicable, the specific plans within each category. Answer: Short-Range and Long-Range Plans: short-range plans cover 1 year or less, intermediate-range plans cover 1 to 2 years, long-range plans look 3 or more years into the future. Top management is most likely to be involved in setting long-range plans. Strategic and Tactical Plans: strategic plans set broad, comprehensive and longer-term action directions. Strategic plans are longer-term plans that set broad and comprehensive directions for an organization and create a framework for allocating resources for maximum long-term performance impact. Strategic planning begins with a vision that clarifies the purpose of the organization and expresses what it hopes to be in the future. It involves determining the goals and objectives that will be pursued in order to accomplish that vision. Also, it specifies how the organization will be positioned for competitive advantage in its external environment to accomplish those goals and objectives. Tactical plans are developed and used to implement strategic plans. They tend to be intermediate-term plans that specify step-by-step means for using the organization’s resources to put strategies into action. In business, tactical plans often take the form of functional plans that indicate how different components of the enterprise will contribute to the overall strategy. Such functional plans might include Production plans—dealing with the methods and technologies needed by people in their work; Financial plans—dealing with money and capital investments; Facilities plans—dealing with facilities and work layouts; Logistics plans—dealing with suppliers and the flow of raw materials and other product inputs. Operational plans define what needs to be done in specific functions or work units to implement strategic plans. Also include, production plans, financial plans, facilities plans, marketing plans and human resource plans. Test Bank

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Policies and Procedures: Standing plans, in the form of organizational policies and procedures are designed for use over and over again. A policy communicates broad guidelines for making decisions and taking action in specific circumstances. Rules or procedures describe exactly what actions are to be taken in specific situations. Budgets and Projects: Single-use plans are used once, serving the needs and objectives of well-defined situations in a timely manner. Budgets are single-use plans that commit resources to activities, projects, or programs. A fixed budget allocates a fixed amount of resources for a specific purpose. A flexible budget allows the allocation of resources to vary in proportion with various levels of activity. A zero-based budget allocates resources as if each budget was brand new. Projects are one-time activities that have clear beginning and end points. Learning Objective 8.2: List and give examples of the types of plans used by managers. Section Reference 8.2: Types of Plans Used by Managers Bloom’s: Synthesis Difficulty: Hard AACSB: Analytic 224) Ajax Limited has prepared the following three budgets. For each budget indicate what type of budget it is and support your answer with a brief explanation. Budget One: Ajax Limited ________ Budget For the Quarter ending March 31, 2022 Cash collections from customers Investment income Proceeds on sale of land Total

$1,850,000 50,000 600,000 $2,500,000

Payments to suppliers Operating expense payments Total

$700,000 1,315,000 $2,015,000

Surplus (Deficit)

$485,000

Budget Two: Ajax Limited ________ Budget Test Bank

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For the Quarter ending March 31, 2022 Sales Investment income Total Revenue

$2,380,000 50,000 2,430,000

Expenses Wages and salaries Cost of goods sold Administrative expenses Total Expenses

$900,000 710,000 $430,000 $2,040,000

Operating income (Loss)

$390,000

Budget Three: Ajax Limited ________ Budget For the Quarter ending March 31, 2022 Equipment purchase Building upgrade Total

$400,000 150,000 550,000

Answer: Budget One is a financial budget because it presents cash flows and expenditures Budget Two is an operating budget because it presents revenues, expenses and profit/loss. Budget Three is a fixed budget because it presents amounts allocated for specific purposes. Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Evaluation Difficulty: Hard AACSB: Analytic 225) Identify and briefly describe each of the five major planning tools and techniques that managers use. Test Bank

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Answer: The five major planning tools and techniques that managers use are described below: Forecasting is the process of predicting what will happen in the future. Contingency planning involves identifying alternative courses of action that can be implemented, if and when an original plan proves inadequate because of changing circumstances. Scenario planning is a long-term version of contingency planning that involves identifying several alternative future scenarios or states of affairs that may occur, and then making plans to deal with each scenario should it actually occur. Benchmarking is a technique that makes use of internal and external comparisons to better evaluate current performance and identify possible actions to improve the future. Staff planners are persons who take responsibility for leading and coordinating the planning function for the total organization or one of its major components Learning Objective 8.3: Discuss useful planning tools and techniques. Section Reference 8.3: Planning Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 226) List and briefly describe the five characteristics that great goals tend to have? Answer: Great goals tend to have the following five characteristics: Specific—clearly targeted key results and outcomes to be accomplished. Timely—linked to specific timetables and “due dates.” Measurable—described so results can be measured without ambiguity. Challenging—include a stretch factor that moves toward real gains. Attainable—although challenging, realistic and possible to achieve. Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 227) Explain how participation and involvement can lead to effective management planning. Answer: Planning is the process of setting performance objectives and determining what should be done to accomplish them. Participation and involvement open the planning process to valuable inputs from people whose efforts are essential to the effective implementation of plans. One of the things that research is most clear about is that when people participate in Test Bank

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setting goals they gain motivation to work hard to accomplish them. Whether the focus is on planning for a team, a large division, or the entire organization, involving more people creates benefits. It goes a long way toward gaining their commitment to work hard and support the implementation of plans. Involvement and participation in planning changes increases the probability that the concerns and interests of the parties involved are accounted for and this reduces their resistance to change. Participation can increase the creativity and information available for planning. It can also increase the understanding and acceptance of plans, as well as commitment to their success. Even though participatory planning takes more time, it can improve results by improving implementation of plans. Through involvement, people buy into proposed changes and the change process. Participation leads to better acceptance and hence stronger commitment to implement the changes successfully and make them work. Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 228) Assume that you and your professor use management by objectives (MBO) to establish objectives for your performance in a course and to monitor your progress on achieving those objectives. Explain how the MBO process could work in this situation. What types of objectives would be set? How would objective attainment be assessed? Answer: Management by objectives (MBO) is a structured process of regular communication in which a supervisor/team leader and subordinates/team members jointly set performance objectives for the subordinate/team members and review results that are accomplished. MBO involves a formal agreement between a supervisor/team leader and subordinates/team members concerning: The subordinates’/team members’ performance objectives for a given time period. The plans through which they will be accomplished. Standards for measuring whether goals / results have been accomplished. Procedures for reviewing results. The MBO process follows the following steps: The supervisor/team leader and subordinates/team members jointly set objectives, establish standards, and choose actions. The subordinates/team members act individually to perform the agreed-upon tasks; and the supervisor/team leader acts individually to provide necessary support. The supervisor/team leader and subordinates/team members jointly review results, discuss implications, and renew the MBO cycle. The students should use the preceding material to guide their discussion of how an MOB contract might be established and administered between a student and a professor. Additionally, the students should use the concepts of improvement objectives, personal Test Bank

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development objectives, and maintenance objectives in discussing the objectives to be set. Discussion should also focus on appropriate means for assessing the objectives that the students set. Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Synthesis Difficulty: Hard AACSB: Reflective Thinking 229) Goals should be aligned so that employees achieving their individual goals will contribute to their department's achieving its goals. Moreover, goals must contain certain attributes to be implemented successfully. These important factors help make goals integral to successful organization performance. Describe the attributes that goals must have. How does goal alignment improve an organization’s performance? Answer: Smart goals are clear and concise and therefore more likely to be understood. The components of SMART goals are: Specific—clearly target key results and outcomes to be accomplished Measurable—described so results can be measured without ambiguity Attainable—challenging, including a stretch factor that moves toward real gains, yet, realistic and possible to achieve Relevant—goals need to be referred to regularly to keep people focused on the task at hand Timely—linked to specific timetables and “due dates” Goals set anywhere in an organization should ideally help advance its overall mission or purpose. Goals should be aligned so that employees achieving their individual goals will contribute to their department's achieving its goals. Department goal achievement should contribute to the achievement of enterprise-wide strategic goals. Enterprise-wide strategic goals achievement should support the organization's mission and vision. Each member of the enterprise contributes something different, but everyone's efforts must pull in the same direction toward a common goal if the organization is to be successful. Learning Objective 8.4: Explain how goals and participation influence planning success. Section Reference 8.4: Implementing Plans to Achieve Results Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

Test Bank

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CHAPTER 9 CONTROL PROCESSES AND SYSTEMS Question type: True/False 1) The purpose of controlling is to make sure plans are achieved and that actual performance meets or surpasses objectives. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 2) Controlling makes sure that individual and group performance is consistent with plans and employees comply with organizational policies and procedures. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 3) Control can still be effective without organizing or leadership, however it is ineffective without adequate planning. Answer: False Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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4) Planning ensures that performance is consistent with plans, and that accomplishments throughout an organization are coordinated in a means–ends fashion. Answer: False Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 5) An after-action review is a structured review of lessons learned and results accomplished on a completed project. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 6) Feedforward, concurrent, and feedback controls are relevant to different phases of the organization’s input-throughput-output cycle. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 7) Feedforward control focuses on what happens during the work process. Answer: False Learning Objective 9.1: Identify the types of controls used by managers and the reasons Test Bank

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for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 8) Feedforward controls, also known as preliminary controls, are intended to ensure that objectives are clear, that proper directions are established, and that the right resources are available to accomplish objectives. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 9) The central question of feedforward control is: “What can be done to improve things going forward?” Answer: False Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 10) Concurrent controls, or steering controls, focus on the end results of an activity rather than the inputs or the activities. Answer: False Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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11) Concurrent control focuses on what happens during the work process. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 12) The central question of concurrent control is: “What needs to be done before we initiate a new process?” Answer: False Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 13) Feedback controls, or post-action controls, monitor ongoing operations and activities to make sure things are being done according to plan. Answer: False Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 14) The central question of feedback control is: “Now that we have completed our process, how did we do?” Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Test Bank

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Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 15) Any internal control strategy requires a high degree of trust. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 16) Internal control occurs when motivated individuals and groups exercise selfdiscipline in fulfilling job requirements. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 17) External control occurs when managers use personal supervision or formal administrative systems. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 18) Effective control typically involves some combination of internal and external control. Test Bank

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Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 19) The potential for self-control is increased when people have a clear sense of organizational mission, know their performance goals, have the necessary resources to do their jobs well, treat each other with respect and consideration, and work in a participative organizational culture. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 20) Bureaucratic control influences behaviour through authority, policies, procedures, job descriptions, budgets, and day-to-day supervision. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 21) Control that flows through the organizations hierarchy of authority is called clan control. Answer: False Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Test Bank

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Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 22) The bureaucratic control system influences behaviour through norms and expectations that are set by the organizational culture. Answer: False Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 23) The goal of the policies and procedures regarding sexual harassment is to make sure that members behave toward one another respectfully and in ways that offer no suggestion of sexual pressures or improprieties in the workplace. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 24) Bill C-198, that establishes procedures to regulate financial reporting and governance in publicly traded companies was passed in response to major corporate failures such as WorldCom and Enron. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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25) C-SOX establishes procedures to regulate financial reporting and governance in publicly traded corporations. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 26) The Sarbanes-Oxley Act was passed in response to major corporate failures regarding the accuracy of reported financial information, such as with Enron and WorldCom, that raised serious questions regarding top management behaviour and the accuracy of financial reports provided by the firms. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 27) Under Bill C-198, chief executives and chief financial officers must sign off on financial reports and certify their accuracy under penalty of jail and/or personal fines. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 28) Clan control influences behaviour through norms and expectations set by the organizational culture. Answer: True Test Bank

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Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 29) Normative control represents the power of collective identity. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 30) Strategic control evaluates if the original organizational or departmental strategy has been implemented as planned. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 31) Strategic control considers if the results of the organizational plan are deliberate, unrealized or evolving. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Test Bank

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32) Market control is essentially the influence of market competition on the behaviour or organizations and their members. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 33) “Keeping up with the competition” is another way of expressing the dynamics of market controls in operation. Answer: True Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 34) Controlling is a four-step process that includes establishing objectives, measuring actual performance, comparing results with objectives, and taking corrective action as needed. Answer: True Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 35) Planning is the first step of the control process where performance objectives and the standards for measurement are set. Answer: True Learning Objective 9.2: List and describe the steps in the control process. Test Bank

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Section Reference 9.2: The Control Process Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 36) The second step in the control process is to set the performance objectives and standards. Answer: False Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 37) The Pareto Principle is a method for organizations, managers and employees to stay on task to achieve an objective or goal. Answer: True Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 38) The Pareto Principle states that 20% of consequences come from 80% of work that is accomplished. Answer: False Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 39) Output standards measure effort in terms of the amount work expended in task performance. Answer: False Test Bank

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Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 40) Earnings per share, sales growth, and market share are the input standards used by businesses. Answer: False Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 41) Quality of production and error rates are output standards used by businesses. Answer: True Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 42) Input standards measure performance results in terms of quantity, quality, cost, or time of accomplished work. Answer: False Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 43) Without some form of measurement of results, effective control is not possible. Answer: True Test Bank

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Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 44) In the control process, measurement must be accurate enough to identify significant differences between what is really taking place and what was originally planned. Answer: True Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 45) Historical comparisons benchmark performance against what is being achieved by other people, work units, or organizations. Answer: False Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 46) The control equation is Need for Action = Desired Performance – Actual Performance Answer: True Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 47) The control equation can be written as Desired Performance = Need for Action + Actual Performance Test Bank

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Answer: True Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 48) Desired performance and actual performance can be compared from historical, relative, or engineering perspectives. Answer: True Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 49) In utilizing a historical approach for comparing desired and actual performance, a manager will use past performance as a benchmark. Answer: True Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 50) In utilizing a relative approach to compare desired and actual performance, a manager will use the organization’s objectives to set the standard. Answer: False Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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51) Management by exception is the technique of focusing managerial attention on situations where the difference between actual and desired performance is the greatest. Answer: True Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 52) Management by exception means that whenever there is problem situation or an opportunity situation, action must be taken. Answer: False Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 53) When performance results compared to objectives are better than desired, a performance opportunity exists. Answer: True Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 54) When performance results compared to objectives are less than desired, a performance opportunity exists. Answer: False Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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55) The goal of an opportunity situation is to increase or to continue the high level of accomplishment in the future. Answer: True Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 56) Projects are unique one-time events that occur within a defined time period. Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 57) A project manager’s job is to ensure that a project is completed on time, within budget, and consistent with the project’s objectives. Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 58) A graphic display of task scheduling required to complete a complex or simple project that has either a short- or long-term timeline, is called a Gantt chart. Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Comprehension Difficulty: Easy Test Bank

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AACSB: Analytic 59) Based on the following Gantt chart it will take approximately 6 hours to complete task E.

Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 60) A CPM/PERT is a combination of the critical path method and the program evaluation and review technique, and it displays the scheduling of tasks required to complete a project. Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 61) The beginning and end points, known as nodes, in a series of sub-activities on a CPM/PERT often have arrows between them to indicate in which order tasks must be completed. Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 62) Based on the following CPM/PERT map task G cannot be completed until both tasks E and F have been successfully completed.

Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 63) The critical path is the longest distance between the start and the finish of a project that must be completed on time in order for the project to be completed by the due date Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 64) Inventory control by economic order quantity orders new inventory whenever inventory levels fall to a predetermined point. Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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65) Just-in-time (JIT) scheduling automatically orders a fixed number of items every time an inventory level falls to a predetermined level. Answer: False Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 66) Application of just-in-time (JIT) inventory management requires a strong relationship with an organization’s key suppliers. Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 67) Breakeven analysis calculates the point at which revenues cover costs under different “what-if” conditions. Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 68) The breakeven point can be thought of as the point where losses end and profits begin. Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 69) BBE Enterprises has total fixed costs of $100,000. Each unit of their product sells for $425 with variable costs of $195 per unit. The breakeven point for BBE Enterprises is approximately 435 units. Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 70) In exercising financial control over organizations, managers should consider liquidity, leverage, asset management, and profitability. Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 71) Liquidity ratios use information about current assets and current liabilities. Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 72) Liquidity ratios measure a firm’s ability to meet short-term obligations. Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 73) Leverage measures the ability of a firm to meet short-term obligations. Answer: False Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 74) Profitability ratios measure a company’s ability to earn costs greater than revenues. Answer: False Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 75) Asset management ratios measure a company’s asset and inventory efficiency. Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 76) Inventory turnover is one method for determining the company’s financial liquidity. Answer: False Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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77) Inventory turnover is calculated as Net Income ÷ Inventory. Answer: False Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 78) A firm’s analysis of financial performance is an important aspect of managerial control. Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 79) Developing a balanced scorecard for any organization begins with a clarification of the organization’s mission and vision. Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 80) When balanced scorecard measures are taken into consideration, critical management reviews have stronger links to performance. Answer: True Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Medium Test Bank

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AACSB: Analytic 81) The four categories of a balance scorecard are financial performance, customer satisfaction, operational performance and innovation and learning. Answer: False Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: EAsy AACSB: Analytic Question type: Multiple Choice 82) Which of the following best describes controlling? a) the process of deciding where an individual should go and how to best go about it b) the process of inspiring people to best utilize the resources c) the process of bringing people and material resources together in working combinations d) the process of setting directions and allocating resources e) the process of measuring performance and taking action to ensure desired results Answer: e Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 83) The management function, which sees to it that the right things happen, in the right way, and at the right time, is known as ___. a) controlling b) organizing c) planning d) leading e) staffing Test Bank

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Answer: a Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 84) Controlling does all of the following except a) makes sure that performance by individuals and groups is consistent with plans. b) ensures that objectives and accomplishments of various subgroups of the organization are consistent with each other in a means–ends fashion. c) secures adequate financing for the enterprise. d) makes sure employees comply with organizational policies and procedures. e) ensures that the right things happen, in the right way, at the right time. Answer: c Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 85) Which of the following is true about controlling within the management process? a) The function of controlling occurs outside of the management process. b) Controlling comes after planning and leadership, and before organizing. c) The function of control is the first step in the management process as sets the foundation for planning, leadership and organizing. d) Controlling is the final stage of the management process. e) Within the management process control comes planning and organizing and before leadership. Answer: d Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Analysis Difficulty: Medium Test Bank

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AACSB: Analytic 86) A(n) ___ is a structured review of lessons learned and results accomplished on a completed project. a) post-dated assessment b) after-action review c) learning organization critique d) structured project analysis e) action planning assessment Answer: b Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 87) Which of the following is true of feedforward control? a) It focuses on what happens during the work process. b) It is preventive in nature. c) It is largely reactive. d) It solves problems as they occur. e) It focuses on the quality of end results rather than on inputs. Answer: b Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 88) Which of the following statements is accurate? a) Feedforward controls, or preliminary controls are preventive in nature. b) Feedforward controls, or steering controls occur before a work activity begins. c) Concurrent controls, or preliminary controls are designed to make sure that the work process occurs according to the plan. Test Bank

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d) Feedforward controls, or preliminary controls are designed to fit within the inputthroughput-output cycle of the work process. e) Concurrent controls, or steering controls are designed to fit within the inputthroughput-output cycle of the work process.. Answer: a Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 89) The central question of ___ control is: “What needs to be done before we begin?” a) damage b) feedforward c) concurrent d) feedback e) post-action Answer: b Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 90) Feedforward control differs from feedback control, in that feedforward controls a) correct mistakes that have already been made. b) focus on the quality of the output rather than the inputs of a work process. c) solve problems as they occur. d) focus on what happens during the work process. e) take place before a work activity begins. Answer: e Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Test Bank

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Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 91) Steering controls take place ___. a) during the work process in order to solve problems as they occur b) to ensure a proactive and forward-thinking approach to problem solving c) focus on activities before the work process begins d) after the work is completed in order to correct any mistakes that have been made e) in the input-throughput-output cycle Answer: a Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 92) The central question of ___ control is: “What can be done to improve things right now?” a) damage b) preliminary c) concurrent d) feedback e) post-action Answer: c Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 93) Drelex manufactures jute bags and takes great pride in the overall quality of their product. Drelex is known for jute bags that are strong and durable. Part of their control strategy includes checking the consistency and quality of all raw materials received before sending them to the production department. And materials that do not meet Test Bank

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Drelex’s strict standards are promptly returned to the supplier. Which of the following types of control is being implemented by Drelex? a) feedback control b) output control c) throughput control d) concurrent control e) feedforward control Answer: e Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Application Difficulty: Medium AACSB: Analytic 94) The Pittsburgh Penguins organization has been outspoken about the need to clean up professional hockey, even applauding a decision made against one of their own players in 2011, when Matt Cooke was banned for the rest of the regular season and the first round of the playoffs after he elbowed Rangers defenceman Ryan McDonagh in the head. “The suspension is warranted because that's exactly the kind of hit we're trying to get out of the game,” Pittsburgh General Manager Ray Shero said in a statement. “We've told Matt in no uncertain terms that this kind of action on the ice is unacceptable and cannot happen.” This action represents what type of control? a) concurrent control b) steering control c) feedback control d) feedforward control e) preliminary control Answer: d Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Application Difficulty: Medium AACSB: Analytic 95) Armani is the supervises the manufacture of a key component of a product that Soltice Ltd. manufactures. Part of Armani’s day is spent walking through the plant floor Test Bank

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to ensure that quality controls are being met and the area is kept free of debris. Recently Armani noticed that one area of the manufacturing line was sending units through too quickly and Armani was worried that quality inspections were not occurring as they should. Armani immediately spoke to the employees at that station to review the quality procedures and told them that there would be more frequent walk throughs to ensure they were following the protocols. Which of the following types of control is Armani practicing? a) output control b) concurrent control c) preliminary control d) feedback control e) post-action control Answer: b Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Application Difficulty: Medium AACSB: Analytic 96) Feedback control takes place to a) correct mistakes already made. b) solve problems as they occur. c) focus on activities before they begin. d) ensure the implementation of a proactive approach to problem solving. e) ensure direct supervision during the work process. Answer: a Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 97) Controls that focus on end results and provide information that can be used for future planning are called ___ controls. a) concurrent Test Bank

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b) steering c) posterior d) feedback e) end-result Answer: d Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 98) The central question of ___ control is: “Now that we are finished, how did we do?” a) damage b) preliminary c) concurrent d) feedback e) feedforward Answer: d Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 99) ABC Construction prepares various reports on their numerous construction projects. The report presented here was prepared for a project in Flin Flon, Manitoba. ABC Construction Monthly Report Actual Budgeted Costs Costs Difference Raw Materials $75,345 76000 $ (655) Construction Labour 102,475 100000 2,475 Construction Overhead 24,195 25000 (805) Administrative Charges 30,150 35000 (4,850) Total Test Bank

$ 232,165

$ 236,000 $

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This report is an example of which type of control? a) cost control b) preliminary control c) feedback control d) steering control e) managerial control Answer: c Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Application Difficulty: Medium AACSB: Analytic 100) Bake-It, a Spanish bread and biscuits producer, gave a free batch of cookies to a few customers. The customers were then asked for suggestions to improve the cookies in terms of quality, taste, and variety. Which of the following types of control was implemented by Bake-It? a) feedback control b) steering control c) feedforward control d) concurrent control e) preliminary control Answer: a Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Application Difficulty: Medium AACSB: Analytic 101) Internal control occurs when ___. a) motivated individuals and groups are supervised directly b) computers are used to monitor performance inside the organization c) motivated individuals and groups exercise self-discipline in fulfilling job requirements d) managers take responsibility for the activities in their own departments Test Bank

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e) motivated managers defend the organization against outside competitive attacks Answer: c Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 102) Through ___ control, managers can manage in ways that allow and expect people to control their own behaviour. a) normative b) internal c) regulatory d) clan e) bureaucratic Answer: b Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 103) The potential for ___ is enhanced when capable people have a clear sense of organizational mission, know their goals, and have the resources necessary to do their jobs well. a) bureaucratic control b) normative control c) regulatory control d) clan control e) internal control Answer: e Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 104) Which of the following statements about internal and external control is/are accurate? a) Effective control typically involves some combination of internal and external control. b) Organizations are increasingly relying on external control because of the emphasis on participation, empowerment, and involvement in the new workplace. c) An internal control strategy requires a high degree of trust. d) a and c e) a, b, and c Answer: d Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 105) Which of the following increases the potential for self-control? a) enforcing authority, policies, procedures, job descriptions, budgets, and day-to-day supervision to make sure that people act in harmony with organizational interests b) ensuring participative organizational cultures in which everyone treats each other with respect and consideration c) preparing budgets for personnel, equipment, travel expenses, and the like to keep behaviour targeted within set limits d) influencing behaviour through norms and expectations set by the organizational culture e) harnessing the power of group cohesiveness and collective identity Answer: b Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Test Bank

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106) The potential for self-control is increased under all of the following conditions except: a) when people have a clear sense of organizational mission. b) when people know their performance goals. c) when people have the necessary resources to do their jobs well. d) when people work in an organization with a culture that restricts participation in decision making. e) when people treat each other with respect and consideration. Answer: d Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 107) Control that flows through the organization’s hierarchy of authority is called a) self-control. b) bureaucratic control. c) market value added control. d) economic value added. e) financial control. Answer: b Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 108) Which of the following best describes bureaucratic control? a) It refers to the controls that influence behaviour through norms and expectations set by the organizational culture. b) Bureaucratic control refers to the influence of market competition on the behaviour of organizations and their members. c) The use of authority, policies, procedures, job descriptions, budgets, and day-to-day Test Bank

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supervision to make sure that people act in harmony with organizational interests are key components of bureaucratic control. d) Bureaucratic control refers to the control that is implemented when capable people have a clear sense of the organizational mission, know their goals, and have the resources necessary to do their jobs well. e) The existence of participative organizational cultures in which everyone treats each other with respect and consideration is representative of bureaucratic control. Answer: c Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 109) In which of the following control systems do organizations use budgets for personnel, equipment, travel expenses, and so on to keep behaviour targeted within set limits? a) bureaucratic control b) clan control c) normative control d) regulatory control e) self-control Answer: a Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 110) Which of the following is true of a bureaucratic control system? a) A bureaucratic control system influences employees and members to display common behaviour patterns. b) Harnessing the power of group cohesiveness and collective identity is characteristic of a bureaucratic control system. c) The expectation of a bureaucratic control system is that people will work on their own and exercise self-discipline in performing their jobs as they are given the freedom to do Test Bank

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so. d) It provides laws and regulations that govern the behaviour of an organization’s top executives. e) A bureaucratic control system is the only system that links all feedforward and feedback controls with the input-throughput-output cycles. Answer: d Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 111) The federal act which requires corporate executives like the CEO and CFO to sign off on reported financial information is a) Fair Labour Standards Act. b) Credit Control and Reporting Act. c) Bill C-198 d) Landrum-Griffin Act. e) Financial Administration Act. Answer: c Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 112) The penalties for violating the provisions of Bill C-198 are a) nothing, this is an act which favours management. b) jail time and personal fines. c) forgoing a yearly bonus. d) loss of perks usually offered to management. e) not as strict as they initially were. Answer: b Learning Objective 9.1: Identify the types of controls used by managers and the reasons Test Bank

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for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 113) Bureaucratic control differs from clan control in that bureaucratic control a) influences behaviour through norms and expectations set by the organizational culture. b) emphasizes hierarchy and authority. c) harnesses the power of group cohesiveness and collective identity. d) gives people freedom to work on their own. e) encourages participation, empowerment, and involvement. Answer: b Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 114) Which of the following is not a form of bureaucratic control? a) Normative control b) Strategic control c) Regulatory control d) Clan control e) Administrative control Answer: e Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 115) Which of the following is true of clan control? a) It influences behaviour through norms and expectations set by the organizational Test Bank

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culture. b) It uses budgets for personnel, equipment, travel expenses, and the like to keep behaviour targeted within set limits. c) It flows through the organization’s hierarchy of authority. d) It refers to the influence of customers and competition on the behaviour of organizations and their members. e) It gives people freedom to work on their own. Answer: a Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 116) An example of clan control is when a) individuals in an organization act, talk, behave and dress in similar manners. b) the organization downsizes people of similar gender and background. c) the organization begins to look like the federal government. d) all the members of upper management vacation together. e) hiring practices start to suggest that nepotism is at play. Answer: a Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 117) ________ control tracks the activities of a project or work process with the goal of discovering unintended consequences, both positive and negative. a) Clan b) Market c) Bureaucratic d) Strategic e) Administrative Answer: d Test Bank

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Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 118) Which of the following is true of market control? a) It is the way business firms use budgets for personnel, equipment, travel expenses, and the like to keep behaviour targeted within set limits. b) It is the way business firms emphasize hierarchy and authority. c) It is the way business firms influence employees and members to display common behaviour patterns. d) It is the way business firms adjust products, pricing, promotions, and other practices in response to customer feedback and what competitors are doing. e) It is the way business firms harness the power of group cohesiveness and collective identity. Answer: d Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 119) Abstract Design Ltd., a local graphic design firm, has had a Facebook presence for a number of years. Recently they have noticed a number of negative comments from customers related to their lack of community involvement. At the same time Abstract Design has noticed that a few orders had been cancelled from new customers. In order to mitigate any further downturns Abstract Design launched a new community initiative where they will donate a certain percentage of gross revenues to the local foodbank. This is an example of which control mechanism? a) self b) market c) clan d) strategic e) concurrent Answer: b Test Bank

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Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Application Difficulty: Medium AACSB: Analytic 120) The four steps of the control process are: establish performance objectives and standards; measure actual performance; compare actual performance with objectives and standards; and ___. a) take corrective action as needed b) reap the profits c) pay for the losses d) redefine the objectives e) continue as before Answer: a Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 121) The first step to the control process is to ___. a) measure actual performance b) compare results with objectives c) establish performance objectives and standards d) take corrective actions e) compare results with standards Answer: c Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 122) Which of the following statements is true about the first step of the control process? Test Bank

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a) Effective planning which will help to identify the key results that one wants to accomplish, by the performance objectives. b) This step involves the identification of the standards of measuring performance and then the identification of key results. c) It identifies the point where output standards and input standards are used to carefully document results. d) The first step involves relative comparisons that benchmark performance against that being achieved by other people, work units, or organizations. e) It focuses attention on substantial differences between actual and desired performance. Answer: a Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 123) ___ measure performance results in terms of quantity, quality, cost, or time of accomplished work. a) Input standards b) Output standards c) Annual reports d) Customer service reports e) Throughput standards Answer: b Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 124) Output standards differ from input standards in that output standards measure ___ and input standards measure __________. a) work efforts; actual outcomes b) actual outcomes; work efforts c) efficient use of resources; quality of work produced d) conformance with rules; error rates e) work attendance; conformance with rules Test Bank

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Answer: b Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 125) Once standards of performance have been established, the next step in the control process is _________________. a) identifying the key results b) comparing results with standards c) comparing results with objectives d) implementing management by exception e) measuring the actual performance Answer: e Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 126) In the context of the control process, which of the following statements is true about actual performance measurement? a) It is the point where performance objectives identify key results that one wants to accomplish. b) It involves a situation where outputs are difficult or expensive to measure. c) It is the point where output standards and input standards are used to carefully document results. d) It is the point where past experience becomes the baseline for evaluating current performance. e) It is the practice of giving attention to situations that show the greatest need for action. Answer: c Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Test Bank

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127) In the control process, ___ must be accurate enough to identify significant difference between what is really taking place and what was originally planned. a) goals b) exceptions c) output standards d) input standards e) measurement Answer: e Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 128) Which of the following is the correct control equation? a) Need for action = desired performance + actual performance. b) Need for action = performance expectations + performance deviations. c) Need for action = desired performance – actual performance. d) Need for action = performance expectations – performance deviations. e) None of these is an accurate description of the control equation. Answer: c Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 129) A shoe manufacturing company produced 300,000 pairs of shoes at the end of a certain month. If the need for action was 150,000 pairs of shoes, what was the desired performance value? a) 650,000 b) 150,000 c) 250,000 d) 450,000 e) 750,000 Test Bank

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Answer: d Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 130) Calculate the need for action from the following information: Desired performance = 800 work units Actual performance = 580 work units. a) 1,380 b) 220 c) 800 d) 1,600 e) 510 Answer: b Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 131) In utilizing an engineering approach to compare desired and actual performance, a manager will ___. a) use the organization’s objectives as a benchmark b) use standards set scientifically through such methods as time and motion studies c) use present performance as a benchmark d) use performance achievements of other organizations as a benchmark e) use previous performance as a benchmark Answer: b Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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132) In utilizing a historical approach for comparing desired and actual performance, a manager will ___. a) use the organization’s objectives as a benchmark b) use standards set scientifically through such methods as time and motion studies c) use present performance as a benchmark d) use performance achievements of other organizations as a benchmark e) use previous performance as a benchmark Answer: e Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 133) In utilizing a relative approach to compare desired and actual performance, a manager will ___. a) use the organization’s objectives as a benchmark b) use standards set scientifically through such methods as time and motion studies c) use present performance as a benchmark d) use performance achievements of other organizations as a benchmark e) use previous performance as a benchmark Answer: d Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 134) Which of the following best describes management by exception? a) The point where performance objectives identify key results that one wants to accomplish. b) It is the situation where outputs are difficult or expensive to measure. c) Management by exception is the point where output standards and input standards are used to carefully document results. d) It is the point where past experience becomes the baseline for evaluating current performance. Test Bank

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e) It is the practice of giving attention to situations that show the greatest need for action. Answer: e Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 135) ___ is the technique of focusing managerial attention on situations where the difference between actual and desired performance is greatest. a) High control management b) Management by exception c) Progressive exception management d) Critical incident management e) Exception progression management Answer: b Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 136) When the control equation identifies a situation in which actual performance is less than desired performance, the situation is called ___. a) substandard performance b) a performance downfall c) a problem situation d) a losing situation e) a managerial problem Answer: c Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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137) A management exception known as the ___ occurs when actual performance is above the standard. a) original assumption b) expected end result c) predicted end result d) opportunity situation e) intended course of action Answer: d Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 138) Suppose that, in reviewing a quarterly report of a department’s achievements, the manager compares desired performance with actual performance and the manager finds no deviation (that is, actual performance is equal to the standard). The manager should then ___. a) take no corrective action b) take corrective action because the standard was too easy c) take action to understand why the standard was not exceeded d) seek more resources for the department e) keep the information private Answer: a Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 139) Suppose that in reviewing a quarterly report of a department’s sales achievements, the manager compared desired performance with actual performance. The manager found that actual sales was greater than the targeted sales performance. The manager should then ___. a) take no corrective action b) take corrective action to bring performance results in line with the standard Test Bank

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c) take action to understand why actual results exceeded the standard d) defer action until the next quarter’s reports are in and a trend is established e) keep the information private Answer: c Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 140) Suppose that in reviewing a quarterly report of a department’s achievements, the manager compared target cost performance with actual costs incurred. If the manager found that actual costs was less than the standard, the manager should ___. a) take no corrective action b) take corrective action c) seek more resources for the department d) defer action until the next quarter’s reports are in and a trend is established e) keep the information to himself/herself Answer: b Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 141) Avery is the senior operations manager and was assigned the task of implementing the control process for a particular production process. Avery first identified the performance objectives and in doing so identified the key results that were to be accomplished. Next the standards were set and put into place followed by measuring the actual performance. After comparing the results with the objectives and standards Avery implemented ___, a practice that involved focusing attention on substantial differences between the actual and desired performances. a) economic order quantity b) just-in-time scheduling c) management by exception d) breakeven analysis e) critical path method Test Bank

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Answer: c Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 142) A project has all of the following components except a) it is a relatively complex task. b) there are multiple components to a project. c) all project components must be completed in a certain sequence. d) the date of completion is fairly flexible. e) all project components must be completed according to budget. Answer: d Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 143) ___ refer to one-time activities that have clear beginning and end points. a) Procedures b) Rules c) Projects d) Budgets e) Goals Answer: c Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 144) A project manager’s job is to ensure all of the following except a) completion of the project on time. Test Bank

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b) completion of the project within budget. c) completion of the project consistent with the project’s objectives. d) completion of the project within a fairly flexible time frame. e) completion of the project through disciplined scheduling and control. Answer: d Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 145) ___ involves making sure that the activities required to complete a project are done on time, within budget, and fulfill objectives. a) Strategic goal setting b) Management by objectives c) Project management d) Zero-based budgeting e) Self-control Answer: c Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 146) When working on a project, which technique can be used to control the activities of what needs to be done, what order they can be done, how long each will take, and how long the whole project is expected to take? a) financial control b) progressive discipline c) market value d) Gantt charts e) project management Answer: d Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Test Bank

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Bloom’s: Application Difficulty: Medium AACSB: Analytic 147) A Gantt chart differs from a PERT chart in that a Gantt chart a) uses charts to break a project into a series of small sub-activities that each has clear beginning and end points. b) represents the quickest time in which the entire project can be finished. c) helps with event or activity sequencing to make sure that things get accomplished in time for later work to build upon them. d) shows all the interrelationships that must be coordinated for the entire project to be successfully completed. e) combines critical path method and the program evaluation and review technique. Answer: e Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 148) ___ is a combination of the critical path method and the program evaluation and review technique. a) Gantt chart b) CPM/PERT c) Pie chart d) Bar diagram e) Run chart Answer: b Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 149) Based on the following Gantt chart which activities must be completed before Activity E can begin? Test Bank

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a) A, B, C and D b) A, B and C c) C d) C and D e) D Answer: b Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 150) Based on the following Gantt chart what is the total expected time to complete this project?

a) 30 hours b) 29 hours c) 36 hours d) between 25 and 30 hours e) unable to determine from the information provided Answer: b Test Bank

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a) A, B, E, G, I b) A, B, E, G c) A, B, D, H, I d) A, C, F, G e) A, C, F, G, I Answer: e Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Evaluation Difficulty: Hard AACSB: Analytic 152) Based on the following CPM/PERT map what activities must be completed before Activity G can begin?

a) A, C, and F b) A, B, C, E and F c) A, B, and C Test Bank

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d) A, C, E and F e) E and F Answer: b Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 153) Which of the following is true of critical path? a) The critical path represents what-if timelines under different projected cost and revenue conditions. b) The critical path acts as the foundation for analysis using financial controls by using the firm’s balance sheet and income statement. c) It automatically orders a fixed number of items every time an inventory level falls to a predetermined point. d) It represents the quickest time in which the entire project can be finished, assuming everything goes according to schedule and plans. e) The critical path provides management with a fast and comprehensive view of the business. Answer: d Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 154) The ___ form of inventory control automatically orders a fixed number of items every time an inventory level falls to a predetermined point. a) just-in-time scheduling b) breakeven analysis c) balanced scorecard d) asset management e) economic order quantity Answer: e Learning Objective 9.3: Explain the use of common control tools and techniques. Test Bank

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Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 155) Scheduling materials to arrive on a timely basis at a workstation or facility in order to reduce costs and improve workflow is known as ___. a) management by objectives (MBO) b) just-in-time (JIT) scheduling c) economic order quantity (EOQ) d) efficient production planning (EPP) e) timely inventory control (TIC) Answer: b Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 156) Shaun, a production manager at Taxener Inc., receives a complaint from the company’s employees that raw materials were being used in an unorganized manner leading to production delays. Which of the following techniques will help Shaun to organize the flow of raw materials for production? a) breakeven point analysis b) just-in-time scheduling c) business process reengineering d) pareto principle e) external control Answer: b Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 157) Managers rely on ___ to perform what-if calculations under different projected cost and revenue conditions. Test Bank

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a) CPM/PERT b) Gantt charts c) critical path method d) breakeven analysis e) just-in-time scheduling Answer: d Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 158) Breakeven analysis can be used to ___. a) improve control b) examine the impact of cost control measures c) experiment with different “what-if” scenarios d) a and c e) a, b, and c Answer: e Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 159) Which of the following is the correct formula for calculating the breakeven point? a) Fixed Costs ÷ (Price – Variable Costs) b) Fixed Costs – Variable Cost ÷ Price c) (Fixed Costs ÷ Variable Costs) – Price d) (Fixed Costs ÷ Price) – Variable Costs e) Fixed Cost – (Price + Variable Costs) Answer: a Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 160) Traxer Shoes plans to sell their new line of baby shoes for $10 per pair. Traxer’s total fixed costs are $15,000 with variable costs of $5 per pair. What sales volume is required to break even? a) 7500 units b) 3000 units c) 4000 units d) 6500 units e) 3500 units Answer: b Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 161) Rex’s doughnuts can produce a maximum of 100 doughnuts a day. The variable cost incurred per unit is $2 and fixed costs incurred per day are $500. Assuming Rex’s will produce the maximum number of doughnuts each day, what should the selling price be in order to break even? a) $10 b) $5 c) $7 d) $4 e) $8 Answer: c Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 162) Management at a bag manufacturing company is proposing a selling price of $80 per bag for their bags. Currently fixed costs are $10,000, variable costs are $40 per bag and the breakeven point is 250 units. If variable costs can be reduced to $30 per bag and Test Bank

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the new selling price is implemented, what will be the new breakeven point? a) 150 units b) 350 units c) 300 units d) 200 units e) 100 units Answer: d Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 163) Which of the following actions would cause a firm’s breakeven point to increase, assuming all else remains equal? a) fixed costs decrease b) selling price increases c) selling price and variable costs each increase by 5% d) fixed costs increase e) variable costs decrease Answer: d Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 164) The CFO of a company wanted to analyze the financial strength of the company and has asked for information on the company’s assets and liabilities. Which of the following would best provide that necessary information? a) income statement b) balance sheet c) balanced scorecard d) Gantt chart e) breakeven analysis account Answer: b Test Bank

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Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 165) Which of the following statements provides an accurate description of financial ratios? a) Liquidity ratios use information about current assets and current liabilities. b) Asset management ratios focus on the relationship between profits and either average inventory or total assets. c) Profit margin and return on investment are useful leverage ratios. d) Total asset turnover is one method for determining the company’s financial liquidity. e) Leverage ratios are helpful in assessing how well assets are employed in generating sales. Answer: a Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 166) All of the following are financial performance measures that managers should know except: a) liquidity. b) leverage. c) asset management. d) projected inventory levels. e) profitability. Answer: d Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic

Test Bank

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167) For control purposes, which of the following in not an important financial aspect of organizational performance? a) the ability to generate cash to pay bills b) the ability to earn more in returns than the cost of the debt c) the ability to sell shares in the company d) the ability to use resources efficiently and operate at minimum cost e) the ability to earn revenues greater than costs Answer: c Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 168) Financial ratios provide all of the following except: a) a framework for historical comparisons. b) a framework for external benchmarking. c) a means to set financial targets. d) a means to track financial goals. e) a calculation of the point at which sales revenues are sufficient to cover costs. Answer: e Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 169) The finance manager at Iridium Inc., wants to understand why the company’s profitability fell in the past 6 months. Which of the following will help the finance manager understand this issue? a) a balance sheet b) a balanced scorecard c) a CPM/PERT map d) a breakeven analysis e) an income statement Answer: e Test Bank

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Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 170) Liquidity ratios measure an organization’s ___. a) ability to meet short-term obligations b) use of debt c) asset and inventory efficiency d) ability to earn revenues greater than costs e) ability to operate at minimum cost Answer: a Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 171) The finance manager at FinTel Inc., needs to understand the current financial position of the company in terms of meeting its short-term financial obligations. To accomplish this task which of the following ratios should be used? a) debt ratio b) asset turnover c) return on assets d) inventory turnover e) acid test ratio Answer: e Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 172) In the context of financial controls, which of the following best describes leverage? Test Bank

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a) The ability to operate at minimum cost. b) An organization’s ability to earn revenues greater than costs. c) The capacity to earn more in returns than the cost of debt. d) The ability to meet short-term obligations. e) The capability to generate cash to pay bills. Answer: c Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 173) In the context of financial controls, asset management refers to the ability to ___. a) use resources efficiently and operate at minimum cost b) earn more in returns than the cost of debt c) earn revenues greater than costs d) meet short-term obligations e) generate cash to pay bills Answer: a Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 174) Liquidity differs from leverage in that liquidity is the ability to ____________ while leverage is ability to ______________. a) use debt effectively; operate at minimum cost. b) use resources efficiently; acquire more debt. c) meet short-term debt; use debt effectively. d) meet short-term debt; earn more in returns than the cost of debt. e) use debt effectively; meet short-term debt. Answer: c Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Analysis Test Bank

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Difficulty: Medium AACSB: Analytic 175) ___ = Current Assets ÷ Current Liabilities. a) Acid Test b) Current Ratio c) Debt Ratio d) Assets Turnover ratio e) Net Current Margin Answer: b Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 176) Calculate the current ratio from the following information: Sales = $14,000 Accounts Receivable = $100,000 Cash in hand = $40,000 Current liabilities = $50,000 Inventory = $40,000 Net Income = $5,600. a) 8:5 b) 3.6:1 c) 0.4:1 d) 3:5 e) 2:3 Answer: b Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 177) The Acid Test ratio = ___. Test Bank

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a) Net Income ÷ Total Assets b) Net Income ÷ Owner’s Equity c) Sales – Expenses d) Total Debts ÷ Total Assets e) Current Assets – Inventories ÷ Current Liabilities Answer: e Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 178) Which of the following ratios is also known as the acid test ratio? a) current ratio b) debt ratio c) asset turnover ratio d) inventory turnover ratio e) quick ratio Answer: e Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 179) Calculate the quick ratio from the following information: Cash = $200,000 Accounts Receivable = $100,000 Inventory = $100,000. Current Liabilities = $100,000. a) 2:1 b) 1:2 c) 3:1 d) 4:1 e) 2:2 Answer: a Test Bank

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Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 180) Which of the following is the formula for the debt ratio? a) Average Inventory ÷ Total Debts b) Sales ÷ Average Inventory c) Net Income ÷ Owner’s Equity d) Total Debt ÷ Total Assets e) Current Assets ÷ Current Liabilities Answer: d Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 191) Calculate the debt ratio from the following information: Land and building = $500,000 Machinery = $300,000 Cash = $400,000 Total debt = $300,000. a) 75.0% b) 25.0% c) 67.0% d) 100% e) 33.0% Answer: b Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic

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182) Karzon Ltd., a car manufacturing company, calculated its debt ratio to be 0.40. What is the total debt for Karzon Ltd., using the following information: Cash at bank = $300,000 Accounts Receivable = $200,000 Accounts Payable = $80,000 Mortgage Payable = $100,000 Machinery, Land and Building = $350,000 Inventories = $50,000 a) $360,000 b) $240,000 c) $280,000 d) $300,000 e) $180,000 Answer: a Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 183) Which of the following is the formula for measuring asset turnover? a) Current Assets ÷ Current Liabilities b) Current Assets – Inventories ÷ Current Liabilities c) Sales ÷ Total Assets d) Net Income ÷ Total Assets e) Total Debts ÷ Total Assets Answer: c Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 184) Inventory turnover = ___. a) Current Assets – Inventories ÷ Current Liabilities b) Net Income ÷ Total Assets Test Bank

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c) Total Debts ÷ Total Inventories d) Net Income ÷ Owner’s Equity e) Sales ÷ Average Inventory Answer: e Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 185) Calculate assets turnover from the following information: Sales = $600,000 Average Land and building = $110,000 Average Cash = $50,000 Average Inventory = $40,000. a) 2 times b) 3 times c) 5 times d) 4 times e) 6 times Answer: b Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 186) Calculate average inventory if sales are $400,000 and the inventory turnover is 1.6. a) $280,000 b) $250,000 c) $150,000 d) $180,000 e) $140,000 Answer: b Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Test Bank

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Bloom’s: Application Difficulty: Medium AACSB: Analytic 187) With reference to profitability, Net margin = ___. a) Net Income ÷ Owner’s Equity b) Net Income ÷ Sales c) Net Income ÷ Total Assets d) Net Income ÷ Inventories e) Net Income ÷ Debts Answer: b Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 188) Calculate net margin from the following information: Sales = $250,000 Net Income = $100,000. Total Asset = $675,000 Owner’s Equity = $310,000 a) 15% b) 32% c) 37% d) 40% e) 81% Answer: d Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 189) Calculate the net income if the net margin is 75% and sales are $160,000. a) $120,000 Test Bank

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b) $240,000 c) $360,000 d) $570,000 e) $600,000 Answer: a Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 190) Return on assets = ___. a) Current Assets ÷ Current Liabilities b) Sales ÷ Total Assets c) Total Debts ÷ Total Assets d) Net Income ÷ Total Assets e) Current Assets – Inventories ÷ Current Liabilities Answer: d Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 191) Calculate return on assets from the following information: Sales = $1,800,000 Net income = $375,000 Current Assets = $350,000 Land and building = $550,000. a) 42% b) 50% c) 68% d) 107% e) 200% Answer: a Learning Objective 9.3: Explain the use of common control tools and techniques. Test Bank

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Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 192) Calculate net income from the following information: ROA = 35% Sales = $250,000 Current assets = $30,000 Capital assets = $70,000. a) $87,500 b) $35,000 c) $10,500 d) $24,500 e) $15,000 Answer: b Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 193) ___ = Net Income ÷ Owner’s Equity a) Return on Equity b) Return on Assets c) Net Margin d) Inventory Turnover e) Acid Test Answer: a Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 194) Calculate owner’s equity from the following information: Expenses $700,000 Test Bank

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Return on equity 40% Total Assets $2,050,000 Sales $1,500,000. a) $2,000,000 b) $800,000 c) $375,000 d) $1,250,000 e) $820,000 Answer: a Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 195) Calculate return on equity from the following information: Sales = $400,000 Expenses = $100,000 Debts incurred = $120,000 Owner’s equity = $180,000. a) 67% b) 150% c) 167% d) 80% e) 20% Answer: c Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 106) Calculate the expenses incurred if the net income is $500,000 and sales are $1,500,000. a) $800,000 b) $650,000 c) $500,000 Test Bank

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d) $250,000 e) $1,000,000 Answer: e Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 197) In order to determine how efficiently and effectively management is using its assets to generate profits, the ___ ratios need to be calculated. a) leverage b) activity c) profitability d) liquidity e) asset management Answer: c Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 198) What is a balanced scorecard? a) A balanced scorecard shows profits or losses at a point in time, which is displayed in a Sales – Expenses = Net Income format. b) A report that displays assets and liabilities at a point in time. c) A measurement tool that shows organizational performance in financial, customer service, internal process, and innovation and Learning areas. d) The point where revenues are equal to costs. e) A control tool that reduces costs and improves workflow by scheduling materials to arrive at a workstation or facility just in time for use. Answer: c Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Test Bank

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Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 199) Ashley has been given the task of creating a balanced scorecard for the company. Which of the following would be placed in the internal process improvement area? a) reducing staff turnover b) increased sales growth c) improved product time to market d) improved production intervals e) improved on-time deliveries Answer: d Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Application Difficulty: Medium AACSB: Analytic 200) Cycle times, engineering efficiency, and new product time are sample measures of ___. a) learning b) internal process improvement c) innovation d) financial performance review e) customer satisfaction Answer: b Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Question type: Essay 201) Briefly explain the two broad options managers have with respect to control system. Test Bank

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Answer: Managers have two broad options with respect to control systems. First, they can manage in ways that allow and expect people to control their own behaviour. This puts priority on internal control, or self-control. Second, they can structure situations to make sure things happen as planned. This is external control, and the alternatives include bureaucratic or administrative control, clan or normative control, and market or regulatory control. Effective control typically involves a mix of these options. Self-control: Managers can take advantage of this human capacity for self-control by unlocking and setting up conditions that support it. This means trusting people to be good at self-management, allowing and encouraging them to exercise self-discipline in performing their jobs. Any workplace that emphasizes participation, empowerment, and involvement will rely heavily on self-control. Bureaucratic control: This form of external control uses authority, policies, procedures, job descriptions, budgets, and day-to-day supervision to make sure that people act in harmony with organizational interests. Clan control: This form influences behaviour through norms and expectations set by the organizational culture. Sometimes called normative control, it harnesses the power of group cohesiveness and collective identity. Market control: This form is essentially the influence of customers and competition on the behaviour of organizations and their members. Business firms show the influence of market control in the way that they adjust products, pricing, promotions, and other practices in response to customer feedback and what competitors are doing. Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 202) Identify and describe the three types of control and provide an example of each. Answer: The three types of control are 1) feedforward; 2) concurrent and 3) feedback. 1) Feedforward controls – also called preliminary controls, take place before a work activity begins. They ensure that objectives are clear, that proper directions are established, and that the right resources are available to accomplish them. Feedforward controls are preventive in nature. The goal is to solve problems before they occur by asking an important question: “What needs to be done before we begin?” 2) Concurrent controls – also called steering controls, focus on what happens during the work process. They make sure things are being done according to plan. The goal of concurrent controls is to solve problems as they are occurring. The key question is “What can be done to improve things right now?” 3) Feedback controls – also called post-action controls, take place after the work is completed. They focus on the quality of end results rather than on inputs and Test Bank

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activities. Feedback controls are largely reactive; the goals are to solve problems after they occur and to prevent future ones. They ask the question “Now that we are finished, how well did we do?” Note: student examples for each will vary, however they should fit within the category. Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Application Difficulty: Medium AACSB: Analytic 203) External control is based on the use of three control systems. List and explain each of these three control systems. Answer: They are bureaucratic, clan, and market controls systems. Bureaucratic control influences behaviour through authority, policies, procedures, job descriptions, budgets, and day-to-day supervision. Another level of bureaucratic control comes from the organization’s external environment. Here, laws and regulations may govern behaviour of an organization’s top executives. The best example is the U.S. Sarbanes-Oxley (SOX) Act, which establishes procedures to regulate financial reporting and governance in corporations that publicly trade in the United States, including those in Canada listed on U.S. exchanges. Clan control influences behaviour through norms and expectations set by the organizational culture. The shared informality and ebullient attitudes of WestJet flight crews, for example, show the power of clan control as a critical benchmark of the airline. Market control is essentially the influence of market competition on the behaviour of organizations and their members. A good example is the growing emphasis on “green” products and practices. When a firm like Walmart starts to get positive publicity from its expressed commitment to eventually power all of its stores with renewable energy, for example, the effect is felt by its competitors. They have to adjust their practices in order to avoid giving up the public relations advantage to Walmart. Learning Objective 9.1: Identify the types of controls used by managers and the reasons for them. Section Reference 9.1: Why and How Managers Control Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 204) Briefly explain the four-step control process. Answer: The control process involves four steps. They are as follows: (1) Establish performance objectives and standards: The control process begins with Test Bank

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planning, when performance objectives and standards for measuring them are set. Performance objectives identify key results that one wants to accomplish. Once these key results are identified, standards can be set to measure their accomplishment. (2) Measure actual performance: The second step in the control process is to measure actual performance. It is the point where output standards and input standards are used to carefully document results. (3) Compare actual performance with objectives and standards: Step 3 in the control process is to compare objectives with results. The control equation states: Need for Action = Desired Performance – Actual Performance. (4) Take corrective action: The final step in the control process is to take the action needed to correct problems or make improvements. Management by exception is the practice of giving attention to situations that show the greatest need for action. It saves time, energy, and other resources by focusing attention on high-priority areas. Learning Objective 9.2: List and describe the steps in the control process. Section Reference 9.2: The Control Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 205) a) What is a project and include in your answer two examples of a project. b) What is project management? c) Explain the two techniques of project management. Answer: a) A project is a one-time event with unique, and sometimes complex components, that must be completed within a specified timeline. Examples (student examples will vary) include: a municipal project to build a bridge; a firm building a new manufacturing plant; a family building a new home b) Project management makes sure that activities required to complete a project are planned well and accomplished on time. It is the responsibility for overall planning, supervision, and control of projects. A project manager’s job is to ensure that a project is well planned and then completed according to plan—on time, within budget, and consistent with objectives. c) Two useful techniques for project management and control are Gantt charts and CPM/PERT. A Gantt chart graphically displays the scheduling of tasks that go into completing a project. Use of the visual overview of what needs to be done on a project allows for progress checks to be made at different time intervals. It helps with event or activity sequencing to make sure that things get accomplished in time for later work to build upon them. CPM/PERT is a combination of the critical path method and the program evaluation and review technique. Project planning based on CPM/PERT uses a network chart. Such charts break a project into a series of small sub-activities that each has clear beginning Test Bank

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and end points. These points become “nodes” in the charts, and the arrows between nodes show in what order things must be done. Use of CPM/PERT techniques helps project managers track activities to make sure they happen in the right sequence and on time. Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Solution: 206) Based on the following three-year ration analysis for Ventura Enterprises Ltd. identify which ratios have improved, remained relatively constant, and which have worsened over the three-year period. Support your answer with a brief explanation.

Net Margin Return on Assets (ROA) Return on Equity (ROE) Current Ratio Quick Ratio Debt Ratio Asset Turnover Inventory Turnover

Ventura Enterprises Ltd. Ratio Analysis 2021 2020 14.5% 13.2% 6.8% 6.4% 8.2% 2.3:1 0.85:1 38.2% 1.2 times 15.1 times

8.5% 1.9:1 0.78:1 40.3% 1.4 times 14.4 times

2019 12.9% 6.1% 8.6% 1.8:1 0.63:10 42.8% 1.3 times 12.8 times

Answer: Ventura Enterprises Ltd. Ratio Analysis 2021 2020 Net Margin 14.5% 13.2%

2019 12.9%

Condition Improved

ROA

6.8%

6.4%

6.1%

Improved

ROE

8.2%

8.5%

8.6%

Worsened

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Explanation The rate of return has consistently increased year or year; and a higher value is better The rate of return has consistently increased year or year; and a higher value is better The rate of return has consistently decreased year or year; and as a higher value is better this ratio is worsening 9 - 77

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Current Ratio

2.3:1

1.9:1

1.8:1

Improved

Quick Ratio

0.85:1

0.78:1

0.63:10

Improved

Debt Ratio

38.2%

40.3%

42.8%

Improved

Asset T/over

1.2 times

1.4 times

1.3 times

Relatively constant

15.1 times

14.4 times

12.8 times

Improved

Inventory T/over

The value has consistently increased year or year; and a higher value is better The value has consistently increased year or year; and a higher value is better The rate of debt load has consistently decreased year or year; and a lower value is better as it means a lower percentage of the assets are being financed by debt Over the three-year period the ratio has remained relatively the same with only a .10 change from Year 1 to Year 3. It can be said that this has remained relatively constant. The turnover value has consistently increased year or year; and a higher value is better as it means that inventory is being held for shorter periods of time

Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Evaluation Difficulty: Hard AACSB: Analytic 207) Why would organizations wish to implement a balanced scorecard system ? Answer: A balanced scorecard tallies organizational performance in financial, customer service, internal process, and innovation and learning areas. The balanced scorecard identifies the need to measure both outcomes and drivers of performance. For the customer, internal business process, and learning and growth perspectives, a series of outcome and performance driver measures are identified. The balanced scorecard can be used in a manner that recognizes the objectives of a number of the different stakeholders of the organization. This increases the chance that the range of dimensions considered will be complete. The objectives of shareholders and customers can be recognized, with the establishment of performance measures under the financial and customer perspectives respectively. The objectives of employees can be recognized in the innovation and learning perspective. Other objectives might usefully be Test Bank

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incorporated into the development of balanced scorecards for specific organizations in both the public and private sector. It should be noted that some stakeholders, such as suppliers, governments, local communities and the environment, are not explicitly recognized by the four perspectives. Learning Objective 9.3: Explain the use of common control tools and techniques. Section Reference 9.3: Control Tools and Techniques Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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CHAPTER 10 STRATEGY AND STRATEGIC MANAGEMENT Question type: True/False 1) Competitive advantage is the ability to do something so well that one outperforms competitors. Answer: True Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 2) Typical sources of competitive advantage include cost and quality, knowledge and speed, barriers to entry, and financial resources. Answer: True Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 3) Sustainable competitive advantage is the ability to do something so well that one outperforms competitors. Answer: False Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 4) If sustainable competitive advantage is the organization’s strategy, then a wellTest Bank

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formulated goal is the instrument to achieve that strategy. Answer: False Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 5) Strategic intent refers to an organization focusing its energies on a unifying and compelling target. Answer: True Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 6) The purpose of corporate strategy is to guide activities within one specific area of operations. Answer: False Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 7) Corporate strategy focuses on the strategic question: “In what industries and markets should we compete?” Answer: True Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

8) Business-level strategy answers the question: “How can we best utilize resources to implement our business strategy?” Answer: False Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 9) In single-product enterprises, business strategies are distinct from corporate strategies. Answer: False Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 10) In a large conglomerate, while the enterprise as a whole will have a corporate strategy, each strategic business unit (SBU) will have its own business strategy. Answer: True Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 11) Functional strategy addresses the question: “How are we going to compete for customers within this industry and market?” Answer: False Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

12) The core of strategic management is looking ahead, understanding the environment and the organization, effectively positioning the organization for competitive advantage, and then achieving that goal. Answer: True Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 13) The correct sequence of a strategic management process is to first create a strategy, secondly to assess one’s competitive position and lastly to implement the strategy and evaluate the results. Answer: False Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 14) As part of the strategic management process, strategy formulation involves identifying and analyzing the existing mission, objectives and strategies; analyzing the industry and external environment as well as organizational resources and capabilities; and revising the mission and objectives and selecting new strategies. Answer: True Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 15) The strategic management process begins with an analysis of mission, values, and objectives. Answer: True

Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 16) Stakeholders are individuals and groups who will in some capacity be affected by the strategic accomplishments of the organization. Answer: True Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 17) An effective mission statement should describe the organization’s underlying philosophy and clearly identify the domain in which the organization intends to operate. Answer: True Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 18) Core values are broad beliefs about what is or is not appropriate behaviour. Answer: True Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 19) Without core values an organization cannot nurture a clear and strong organizational culture.

Answer: True Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 20) The presence of strong core values helps build a clear organizational identity. Answer: True Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 21) Operating objectives are shorter-term targets against which actual performance results can be measured as indicators of progress and continuous improvement. Answer: True Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 22) A business can use a SWOT analysis to assess its sustainability, wealth, operations, and technology. Answer: False Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 23) A SWOT analysis involves an assessment of organizational strengths and weaknesses and environmental opportunities and threats.

Answer: True Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 24) An effective SWOT analysis can be completed once every five years. Answer: False Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 25) One of the goals of a SWOT analysis is to identify what an organization does very well when compared to its competitors. Answer: True Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 26) Emergence of new competitors and resource scarcities are environmental threats. Answer: True Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 27) In a hypercompetition situation, a firm faces only a few competitors.

Answer: False Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 28) The less attractive the industry structure, the harder it will be to make good strategic choices. Answer: True Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 29) From the perspective of Porter’s five forces model, an attractive industry is one in which intense rivalry already exists among competitors, there are substantial threats in terms of new competitors and substitute products, and suppliers and buyers are very powerful in bargaining over prices and quality. Answer: False Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 30) From the perspective of Porter’s five forces model, an unattractive industry is one with less intense competition, few threats from new entrants or substitutes, and low bargaining power among suppliers and buyers. Answer: False Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

31) Portfolio planning seeks the best mix of investments among alternative business opportunities, in addition to helping allocate scare resources among competing uses. Answer: True Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Application Difficulty: Medium AACSB: Analytic 32) The BCG Matrix is based on market growth rate and market share. Answer: True Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 33) Using the BCG Matrix is not an essential tool to building an effective corporate, business unit or functional strategy. Answer: False Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 34) A “Cash Cow” on the BCG Matrix is a high market share business in a low-growth market. Answer: True Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy

AACSB: Analytic 35) A “Question Mark” on the BCG Matrix is a low market share business in a highgrowth market. Answer: True Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 36) A “Dog” on the BCG Matrix is a high market share business in a high-growth market. Answer: False Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 37) A “Star” on the BCG Matrix is a high market share business in a low-growth market. Answer: False Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 38) According to the BCG Matrix the appropriate strategy for a “Dog” is to retrench. Answer: False Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy

AACSB: Analytic 39) A growth strategy involves expansion of an organization’s current operations. Answer: True Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 40) A diversification strategy involves growth through expansion within the same business area. Answer: False Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 41) Related diversification involves growth by acquiring new businesses or entering business areas that are related to what the organization already does. Answer: True Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 42) Unrelated diversification involves growth by acquiring new businesses or entering business areas that are different from what the organization already does. Answer: True Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge

Difficulty: Easy AACSB: Analytic 43) The acquisition of an organization’s key supplier is diversification through forward vertical integration. Answer: False Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 44) Over the past number of years sales to Vantage Enterprises have made up almost 45% of total sales for Prentice Industries. To secure this revenue stream Prentice Industries has begun the process of purchasing a 55% share in Vantage Enterprises. This move is an example of a forward vertical integration. Answer: True Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Application Difficulty: Medium AACSB: Analytic 45) Terms such as “acquisition,” “merger,” “diversification,” and “global expansion” signal an underlying growth strategy. Answer: True Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 46) A stability strategy maintains current operations without substantial change. Answer: True

Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 47) Bankruptcy under Canadian law protects a firm from creditors while management reorganizes to restore solvency. Answer: True Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 48) Restructuring by divestiture is often followed by organizations that are focused and not complex. Answer: False Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 49) A restructuring strategy is used where changes in the scale and/or mix of operations are implemented in order to gain both short-term efficiencies and time to prepare new strategies for improving future performance. Answer: True Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 50) Restructuring by turnaround often occurs along with a change in top management.

Answer: True Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 51) A globalization strategy adopts standardized products and advertising for use worldwide. Answer: True Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 52) A multidomestic strategy tries to customize products and their advertising as much as possible to fit the local needs of different countries or regions. Answer: True Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 53) The transnational strategy focuses on working with rivals on projects of mutual benefit. Answer: False Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 54) A strategic alliance that involves the development of preferred supplier relationships

to guarantee a smooth and timely flow of quality materials among partners is known as an outsourcing alliance. Answer: False Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 55) A strategic alliance that involves firms joining together for sales and distribution of products or services is known as a distribution alliance. Answer: True Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 56) In a distribution alliance, firms join together to sell and distribute products or services. Answer: True Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 57) Co-opetition is the strategy of working with competitors on mutually beneficial projects. Answer: True Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

58) Porter’s four competitive strategies are: differentiation, cost leadership, focused cost differentiation and focused cost leadership. Answer: False Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 59) The strategic objective of the differentiation strategy is to attract customers who stay loyal to the firm’s products and lose interest in those of its competitors. Answer: True Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 60) It is advisable to combine a cost leadership strategy with a differentiation strategy to get better results. Answer: False Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 61) Organizations pursuing a cost leadership strategy seek a competitive advantage by directing the organization’s resources and attention toward minimizing costs to operate more efficiently than the competition. Answer: True Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation

Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 62) The objective of a focus strategy is to target organizational resources and expertise toward a particular customer group, geographical region, product or service line. Answer: True Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 63) Organizations pursuing a focused differentiation strategy seek a competitive advantage by concentrating on one special market segment and trying to be the lowest cost provider in that segment. Answer: False Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 64) Organizations pursuing a focused cost leadership strategy seek a competitive advantage by concentrating on one special market segment and trying to offer customers in that segment a unique product. Answer: False Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 65) “You can compete on price, or you can compete on product, but you can’t compete on both,” is a marketer’s statement that Porter believes is generally true.

Answer: True Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 66) The strategic planning pitfall known as “failures of process” occurs when inadequate attention is paid to the analysis of mission and purpose, core values and corporate culture, organizational strengths and weaknesses, and environmental opportunities and threats. Answer: True Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 67) Goal replacement is the tendency to get so bogged down in details that the planning process becomes an end in itself instead of a means to an end. Answer: False Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 68) Corporate governance refers to the system of control and performance monitoring of top management that is maintained by the board of directors, or the board of trustees and other major stakeholder representatives. Answer: True Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic

69) Board members are increasingly expected to exercise control and take active roles in ensuring that strategic management of an enterprise is successful; and as a result, top management feels more performance accountability to the board and other stakeholders. Answer: True Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 70) Inside directors are chosen from the ranks of top management. Answer: True Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 71) A strategic leader needs to reduce the sense of urgency so as to achieve the best results. Answer: False Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 72) The critical tasks of strategic leadership include: (a) being a guardian of trade-offs by ensuring that the organization’s resources are allocated in ways consistent with the strategy, and (b) creating a sense of urgency by not allowing the organization and its members to grow slow and complacent. Answer: True Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation

Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 73) Effective strategic leadership can occur without the leader being a teacher of the strategy or being a great communicator to ensure that everyone understands the strategy. Answer: False Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 74) Because of the complex challenges faced by contemporary organizations, strategic management must be viewed as a leadership responsibility held solely by the company CEO. Answer: False Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Question type: Multiple Choice 75) According to the text, the major opportunities for developing competitive advantage have traditionally included all of the following except a) cost and quality. b) knowledge and timing. c) barriers to entry. d) financial resources. e) social progress. Answer: e Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management

Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 76) Which of the following best describes the differences between competitive advantage and sustainable competitive advantage? a) Competitive advantage is how an organization can use its resources in a way that outperforms the competition, while sustainable competitive advantage is how an organization can maintain that position. b) Competitive advantage is how an organization uses its technology, knowledge and financial resources to outperform the competition, while sustainable competitive advantage is how an organization can maintain that position. c) Both competitive advantage and sustainable competitive advantage describe how an organization use resources in a way that outperforms the competition and its ability to maintain that position and grow from it. d) Competitive advantage is how an organization can use its resources in a way that outperforms the competition, while sustainable competitive advantage is how an organization can maintain that position by making it difficult and costly for other organizations to copy or imitate. e) There is no significant difference between the two concepts. Answer: d Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 77) Which of the following best describes the term “sustainable competitive advantage”? a) Sustainable competitive advantage is the ability to outperform rivals in ways that are difficult or costly to imitate. b) It is the ability to formulate technology to gain market exposure. c) Sustainable competitive advantage is the ability to focus organizational energies on a unifying and compelling goal. d) It is the ability to formulate strategies efficiently to accomplish long-term goals. e) The ability to identify the setbacks in the organizational procedure and work toward correcting them describes sustainable competitive advantage. Answer: a Learning Objective 10.1: Discuss the process and importance of strategic management.

Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 78) Which of the following situational descriptions does not describe one of the four major opportunities for developing sustainable competitive advantage that are identified in the text? a) Sustainable competitive advantage occurs where strategy drives an emphasis on operating and/or product or service quality. b) Sustainable competitive advantage occurs where strategy drives an emphasis on innovation and speed of delivery to market for new ideas. c) Sustainable competitive advantage occurs where strategy drives an emphasis on securing high quality human resources. d) Sustainable competitive advantage occurs where strategy drives an emphasis on creating a market stronghold that is protected from entry by others. e) Sustainable competitive advantage occurs where strategy drives an emphasis on investments and/or loss sustainment that competitors can’t match. Answer: c Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 79) Which of the following best describes a strategy? a) It is a comprehensive plan guiding resource allocation to achieve long-term organization goals. b) The strategy of an organization is the same as the mission of the organization. c) Strategy is the document that expresses the organization’s reason for existence in society. d) It is the predominant value system of the organization as a whole. e) An organization’s strategy is a special strength that gives an organization a competitive advantage. Answer: a Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge

Difficulty: Easy AACSB: Analytic 80) A ___ is a plan for using resources consistent with ___. a) strategy; strategic intent b) vision; strategic intent c) budget; transformational leadership d) strategy; transformational leadership e) strategy; visionary leadership Answer: a Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 81) ___ refers to an organization focusing its energies on a unifying and compelling corporate target. a) Strategic thinking b) The operational plan c) The functional plan d) Strategic intent e) Objective advantage Answer: d Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 82) Which of the following correctly identifies the different levels of strategy that can exist in a business? a) corporate strategy, business strategy, and functional strategy b) institutional strategy, corporate strategy, and business strategy c) growth strategy, retrenchment strategy, and stability strategy d) corporate strategy, divisional strategy, and work group strategy

e) top-level strategy, middle-level strategy, and lower-level strategy Answer: a Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 83) ___ focuses on the strategic question: “In what industries and markets should we compete?” a) Environmental strategy b) Functional strategy c) Competitive strategy d) Business strategy e) Corporate strategy Answer: e Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 84) ___ focuses on the strategic question: “How can we best serve the needs of the homeless population?” a) Environmental strategy b) Functional strategy c) Competitive strategy d) Business strategy e) Corporate strategy Answer: e Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Application Difficulty: Medium AACSB: Analytic

85) Decisions related to choices about product and service mix, facilities locations, and new technologies are part of the ___ level strategy of an organization. a) branding b) marketing c) corporate d) functional e) business Answer: e Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 86) The term ___ is often used to describe a business firm that is part of a larger enterprise. a) supplier alliance b) strategic business unit c) joint venture d) Cash Cow e) co-opetitor Answer: b Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 87) ___ addresses the question: “How are we going to compete for customers within this industry and market?” a) Environmental strategy b) Functional strategy c) Operating strategy d) Business strategy e) Corporate strategy

Answer: d Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 88) Healthy Home Inc. is a newly established organization which manufactures home appliances. The company is in the process of selecting the locations for its production facilities and appropriate manufacturing technology. This information indicates that the company is developing its ___ strategy. a) contingency level b) competitive level c) business-level d) marketing-level e) tactical level Answer: c Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Application Difficulty: Medium AACSB: Analytic 89) The difference between a corporate-level strategy and a business-level strategy is that a) a corporate-level strategy sets long-term direction for the total enterprise and the latter is concerned with how a division or strategic business unit will compete in its product or service domain. b) the former focuses on how a division will compete in its product or service domain and a business-level strategy is concerned with guiding the use of organizational resources to implement business strategies. c) a business-level strategy is involved in crafting strategies to guide the allocation of resources, and a corporate-level strategy is concerned with formulating and implementing strategies. d) the former adopts standardized products and advertising for use worldwide and the latter seeks efficiencies of global operations with attention to local markets. e) a corporate-level strategy makes decisions regarding facilities locations, and new technologies and the latter customizes products and advertising to best fit local needs. Answer: a

Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 90) The difference between a corporate-level strategy and a functional-level strategy is that a) a corporate-level strategy focuses on how a strategic business unit will compete in its product domain and a functional-level strategy sets long-term direction for the total enterprise. b) the former sets long-term direction for the total enterprise and a functional-level strategy guides activity within one specific area of operations. c) the former is concerned with formulating and implementing strategies while the latter is involved in crafting strategies to guide the allocation of resources. d) a functional-level strategy seeks efficiencies of global operations with attention to local markets and a corporate-level strategy adopts standardized products and advertising for use worldwide. e) the former makes decisions regarding facilities locations, and new technologies and a functional-level strategy customizes products and advertising to best fit local needs. Answer: b Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 91) ___ guides the use of resources to implement business strategy. a) Competitive strategy b) Corporate strategy c) Objective formulation d) Business strategy e) Functional strategy Answer: e Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge

Difficulty: Easy AACSB: Analytic 92) ___ focuses on activities within a specific area of operations such as marketing, manufacturing, finance, and human resources. a) Environmental strategy b) Operating strategy c) Functional strategy d) Business strategy e) Corporate strategy Answer: c Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 93) Questions such as “How can we best utilize resources within a specific area of operations to implement our business strategy?” are typically asked while discussing the ___ strategy. a) branding b) divisional c) corporate d) functional e) business Answer: d Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 94) The entire process of formulating and implementing strategies to accomplish longterm goals and sustain competitive advantage is referred to as a) strategic analysis. b) strategy formulation.

c) strategy implementation. d) strategic management. e) strategic outsourcing. Answer: d Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 95) Which of the following is the first step in the process of strategic management? a) strategic analysis b) strategy formulation c) strategy implementation d) strategic marketing e) strategic outsourcing Answer: a Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 96) Which of the following is the last step in the process of strategic management? a) strategic analysis b) strategy formulation c) strategy implementation d) strategic marketing e) strategic outsourcing Answer: c Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

97) Strategy analysis is ___. a) the process used to analyze the organization, existing strategies, the organizational environment, and the organization’s competitive position and strategies b) the method by which strategies guide resource allocation c) the same as goal development d) also called corporate-level strategy e) a form of functional strategy Answer: a Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 98) Strategy formulation is ___. a) a set of processes used to create new strategies by evaluating existing strategies and changes in the organizational environment b) the process of revising objectives and setting new corporate, business and/or functional-level strategies c) the same as goal development d) also called corporate-level strategy e) a form of functional strategy Answer: b Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 99) Miranda Corp. changes its business strategy from a focused differentiation strategy to a focused cost leadership one, as this new strategy works better for the organization. Which of the following steps in the process of strategic management ideally includes this action? a) strategy analysis b) strategy formulation c) strategy assessment

d) strategy identification e) strategy outsourcing Answer: b Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Application Difficulty: Medium AACSB: Analytic 100) ___ is the process of setting strategies in motion and then evaluating results and making adjustments as needed. a) Strategic analysis b) Strategy formulation c) Strategy implementation d) Strategic crafting e) Strategic outsourcing Answer: c Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 101) A(n) ___ expresses an organization’s reason for existence in society. a) statement of purpose b) mission statement c) cash flow statement d) net worth statement e) operating objective Answer: b Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

102) Michael Hammer recommends that an organization’s mission statement should address certain questions, including which of the following? a) What are we moving to? b) What is our dream? c) What kind of difference do we want to make in the world? d) all of the above e) none of the above Answer: d Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 103) A clear and viable mission statement will garner the support and respect from all of the following stakeholders except a) customers. b) community. c) employees. d) government. e) shareholders Answer: d Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 104) As part of the strategic planning process, a ___ is concerned with assessing the interests of each group of stakeholders as well as the organization’s record in responding to them. a) mission and domain analysis b) corporate culture analysis c) competitor analysis d) strategic constituencies analysis e) business portfolio planning analysis

Answer: d Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 105) ___ are broad beliefs about what is or is not appropriate behaviour. a) Corporate subcultures b) Core values c) Diversified values d) Functional values e) Marketing values Answer: b Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Ethics 106) Which of the following statements accurately describe the benefits associated with strong core values? a) Strong core values give character to an organization. b) Strong core values back up the mission statement. c) Strong core values help guide members’ behaviour in meaningful and consistent ways. d) a and b e) a, b, and c Answer: e Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 107) Organizational culture refers to ___.

a) a culture in which corporations dominate other social institutions b) the predominant value system for an organization as a whole c) the process by which managerial values are transferred to society as a whole d) the value system of top management e) a term used by academicians to describe a capitalist society Answer: b Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 108) Organizational culture accomplishes all of the following except a) it determines the strategy to be pursued. b) it shapes the values of managers and other organization members. c) it points people in common directions. d) it helps build institutional identity. e) it backs up the mission statement. Answer: a Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 109) ___ direct activities toward key and specific performance results. a) Corporate objectives b) Official objectives c) Strategic objectives d) Operating objectives e) Planning objectives Answer: d Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge

Difficulty: Easy AACSB: Analytic 110) ___ are shorter-term targets against which actual performance results can be measured as indicators of progress and continuous improvement. a) Corporate objectives b) Official objectives c) Strategic objectives d) Planning objectives e) Operating objectives Answer: e Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 111) Syntagmatic, an educational consultancy firm, is particular about recruiting qualified professionals, in order to provide more value to its global clients. Syntagmatic strives to maintain its high standards while at the same time providing its employees with a clear and strong organizational culture. Which of the following operating objectives is the primary focus of Syntagmatic? a) social responsibility b) cost efficiency c) market share d) human capacity e) financial health Answer: d Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Application Difficulty: Medium AACSB: Analytic 112) Which of the following is not a typical organizational operating objective? a) Sustainability

b) Cash flow c) Product quality d) Market share e) Innovation Answer: b Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 113) A ___ begins with the systematic evaluation of the organization’s resources and capabilities and focuses on identifying the organization’s core competencies. a) functional strategy b) mission statement c) flanking strategy d) branding analysis e) SWOT analysis Answer: e Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 114) Which of the following is an advantage of a SWOT analysis? a) It deliberates on the optimum use of organizational resources. b) It gives an organization a competitive advantage. c) It is an external analysis of environmental opportunities and threats. d) It analysis the external factors that give way to organizational weaknesses. e) It defines specific objectives that an organization must accomplish. Answer: c Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Analysis Difficulty: Medium

AACSB: Analytic 115) In conducting a SWOT analysis, the presence of manufacturing efficiencies, a skilled workforce, a good market share, strong financing, and a superior reputation would be identified as a company’s ___. a) strategies b) strengths c) weakness d) opportunities e) threats Answer: b Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 116) In conducting a SWOT analysis, issues regarding outdated facilities, inadequate research and development, obsolete technologies, weak management, and past planning failures would be addressed in analyzing the company’s ___. a) strategies b) strengths c) weaknesses d) opportunities e) threats Answer: c Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Application Difficulty: Medium AACSB: Analytic 117) In conducting a SWOT analysis, a company’s ___ can be examined by asking questions about possible new markets, the growth of existing markets, the emergence of new technologies, and the weaknesses of market rivals. a) strategies

b) strengths c) weakness d) opportunities e) threats Answer: d Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Application Difficulty: Medium AACSB: Analytic 118) A SWOT analysis should be completed a) for the organization as a whole and for each strategic business unit. b) for the organization as a whole only. c) at least annually for the organization as a whole and for each strategic business unit. d) every five years for the organization as a whole and for each strategic business unit. e) whenever top management decides it is appropriate, and whichever portion of the organization it deems necessary. Answer: c Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 119) In a SWOT analysis, industry environmental factors include the organization’s ___. a) resource suppliers b) competitors c) customers d) all of the above e) none of the above Answer: d Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Comprehension Difficulty: Easy

AACSB: Analytic 120) In doing a SWOT analysis, the examination of threats within both the industry and macro environments should address all of the following elements except a) new competitors. b) abundance of resources. c) changing market tastes. d) new regulations. e) substitute products. Answer: b Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 121) Any special strength that gives an organization a competitive advantage is referred to as its ___. a) core competency b) productivity c) co-opetition ability d) emotional intelligence e) monopolistic power Answer: a Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 122) Powerston Inc. is the market leader of car batteries primarily because of its unique distribution system. The distribution system that has given the company an advantage over its competitors is an example of the company’s ___. a) co-opetition strategy b) core competency c) technical skill

d) emotional intelligence e) monopolistic power Answer: b Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Application Difficulty: Medium AACSB: Analytic 123) Which of the following is true about oligopoly? a) There are several direct competitors. b) It ensures that there is no competition for resources. c) There are only a few competitors. d) It is seen most often in the fast foods industry. e) There are many substitute products. Answer: c Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 124) Which of the following is not an example of an oligopoly? a) Canada Post b) Air Canada c) Ford Motor Company d) Shaw Cable e) All of the above are oligopoly examples Answer: a Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Application Difficulty: Medium AACSB: Analytic

125) The ideal condition for an organization to operate in is a(n) a) oligopoly. b) monopoly. c) hypercompetition. d) non-competitive industry. e) attractive industry. Answer: b Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 126) In the food industry, where there are direct competitors, rivalry takes the form of a) hypercompetition. b) monopoly. c) oligopoly. d) non-competitive industry. e) attractive industry. Answer: a Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 127) Which of the following is not an example of a hypercompetition industry? a) Retail grocers b) Cell phone industry c) Fast food restaurants d) eCommerce e) All of the above are hypercompetition industries Answer: e Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis

Bloom’s: Application Difficulty: Medium AACSB: Analytic 128) From the perspective of Porter’s five forces model, a(n) ___ is one in which intense rivalry already exists among competitors, there are substantial threats in terms of new competitors and substitute products, and suppliers and buyers are very powerful in bargaining over prices and quality. a) attractive industry b) unattractive industry c) competitive industry d) non-competitive industry e) normal industry Answer: b Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 129) From the perspective of Porter’s five forces model, a(n) ___ is one with less intense competition, few threats from new entrants or substitutes, and low bargaining power among suppliers and buyers. a) attractive industry b) unattractive industry c) competitive industry d) non-competitive industry e) normal industry Answer: a Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 130) According to Porter, which of the following is one of the five forces that affect industry competition?

a) bargaining power of intermediaries b) market share c) market growth rate d) substitute products e) workplace diversity Answer: d Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 131) If there are many competitors and the barriers to entry are low, the a) industry is attractive. b) industry is unattractive. c) customers have low bargaining power. d) industry is mature. e) industry is not mature. Answer: b Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 132) Which of the following increases the attractiveness of a market? a) low barriers to entry b) many competitors c) many substitute products d) high power of suppliers e) few substitute products Answer: e Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Knowledge

Difficulty: Easy AACSB: Analytic 133) ___ decreases the attractiveness of the market. a) Few competitors b) High barriers to entry c) Few substitute products d) High bargaining power of customers e) Low bargaining power of suppliers Answer: d Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 134) A _______ analyzes business opportunities according to market growth rate and market share. a) Flanking strategy b) BCG Matrix c) Five Forces analysis d) Strategy formulation e) Logistics plan Answer: b Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 135) The BCG portfolio planning model uses an analysis of ___ and ___ to analyze business opportunities. a) investment alternatives; rates of return b) product alternatives; forecasted profitability c) market growth rate; costs of operation d) market growth rate; market share

e) market share; customer needs Answer: d Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 136) Businesses or products with high market shares in high-growth markets are referred to as ___ in the BCG Matrix. a) Cash Cows b) Stars c) Question Marks d) Dogs e) Apples Answer: b Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 137) In a BCG Matrix the Stars typically a) produce large profits through substantial penetration of expanding markets. b) produce low profits and limited cash flow, and little upside potential. c) may not generate much profit at the moment, however it has upside potential to do so. d) produce little if any profit and have low potential for future improvement. e) generate high profit for a short span of time and then become inactive. Answer: a Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

138) The preferred strategy for Stars is growth because they a) produce large profits and a strong cash flow, with little upside potential. b) may not generate much profit at the moment, however it has upside potential. c) produce large profits and a strong cash flow for only a short span of time and must be nurtured. d) are not only high performers in the present, they offer similar potential for the future. e) produce little if any profit and must be supported so that they perform better. Answer: d Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 139) Businesses or products with high market shares in low-growth markets are referred to as ___ in the BCG Matrix. a) Cash Cows b) Stars c) Question Marks d) Dogs e) Apples Answer: a Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 140) The preferred strategy for Cash Cows is stability or modest growth because a) they produce large profits and a strong cash flow, with little upside potential. b) they may not generate much profit at the moment, however they have upside potential. c) the markets offer great growth opportunity given that they are new to the market. d) they are not only high performers in the present, they offer similar potential for the future. e) they produce little if any profit and must be supported so that they perform better. Answer: a

Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 141) When comparing Stars and Cash Cows which of the following is true? a) Both Stars and Cash Cows have a high market share and produce large profits. b) Both Stars and Cash Cows have a high market share and operate in high growth markets. c) Both Stars and Cash Cows call for a growth strategy. d) Both Stars and Cash Cows have a high market share and only Stars operate in a high growth market. e) Both Stars and Cash Cows have a high market share while only Cash Cows produce large profits. Answer: d Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 142) Businesses or products with low market shares in high-growth markets are referred to as ___ in the BCG Matrix. a) Cash Cows b) Stars c) Question Marks d) Dogs e) Apples Answer: c Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

143) The preferred strategy for Question Marks is to grow or retrench because a) they produce large profits and a strong cash flow, with little upside potential. b) they may not generate much profit at the moment, however they have an upside potential. c) the markets offer great growth opportunity, given that they are new to the market. d) they are not only high performers in the present, they also offer similar potential for the future. e) they produce little if any profit and must be supported so that they perform better. Answer: b Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 144) Businesses or products with low market shares in low-growth markets are referred to as ___ in the BCG Matrix. a) Cash Cows b) Stars c) Question Marks d) Dogs e) Apples Answer: d Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 145) The preferred strategy for Dogs is retrenchment because a) they produce large profits and a strong cash flow, and the upside potential is there. b) they may not generate much profit at the moment, and the upside potential is there. c) the markets offer great growth opportunity given that they are new to the market. d) they are not only high performers in the present, they also offer similar potential for the future. e) they produce little if any profit, and they have low potential for future improvement.

Answer: e Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 146) Which of the following accurately describes the preferred strategy for the Boston Consulting Group’s (BCG Matrix) business opportunities? a) The preferred strategy for Stars is growth through resource investment. b) The preferred strategy for Dogs is retrenchment by divestiture. c) The preferred strategy for promising questions marks is growth, while the preferred strategy for less promising Question Marks is restructuring or divestiture. d) all of the above e) none of the above Answer: d Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 147) When one hears terms like “acquisition,” “merger,” and “global expansion,” the underlying master strategy is one of ___. a) growth b) retrenchment c) downsizing d) turnaround e) restructuring Answer: a Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

148) A ___ strategy involves growth through expansion within the same business area. a) concentration b) diversification c) related diversification d) unrelated diversification e) vertical integration Answer: a Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 149) Vintop Inc., a successful designer brand, has several outlets in the U.S. To push sales growth, Vintop has decided to focus more on its primary business and open up its branches in ten different countries. The approach taken by Vintop is an example of growth through ___. a) strategic alliance b) vertical integration c) liquidation d) diversification e) concentration Answer: e Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Application Difficulty: Medium AACSB: Analytic 150) Food Lord, a fast food chain, is expanding its operations in several states in the country. Which of the following is this an example of? a) growth through concentration b) diversification c) vertical integration d) retrenchment e) divestiture

Answer: a Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Application Difficulty: Medium AACSB: Analytic 151) Which of the following is a defining characteristic of growth through diversification? a) It involves extending business within the same business area. b) It involves acquisition of or investment in new and different business areas. c) It involves decreasing the size of operations. d) It involves selling company assets to pay creditors. e) It involves fixing specific performance problems. Answer: b Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 152) A ___ strategy involves growth through the acquisition of or investment in new and sometimes different business areas. a) concentration b) diversification c) related diversification d) unrelated diversification e) vertical integration Answer: b Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 153) Enigma Breweries, a distillery company, bought Suave Clothing, a premium men’s

fashion boutique chain. By entering a different business area, Enigma Breweries plans to grow and expand its business and profits. Which type of growth strategy has Enigma Breweries adopted? a) growth through concentration b) growth through diversification c) market development strategy d) market penetration strategy e) product development strategy Answer: b Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Application Difficulty: Medium AACSB: Analytic 154) ___ involves growth by acquiring new businesses or entering business areas that are related to what the organization already does. a) Concentration b) Related diversification c) Unrelated diversification d) Forward integration e) Vertical integration Answer: b Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 155) ___ involves growth by acquiring new businesses or entering business areas that are different from what the organization already does. a) Concentration b) Related diversification c) Unrelated diversification d) Backward integration e) Vertical integration

Answer: c Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 156) Growth through ___ typically occurs by acquiring suppliers or distributors. a) strategic alliance b) vertical integration c) liquidation d) divestiture e) concentration Answer: b Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 157) Bella Dairy Products produces a variety of premium ice creams. The company has recently acquired two large dairy farms in the area. This strategic action falls under the category of ___. a) growth through concentration b) vertical integration c) retrenchment d) divestiture e) franchising Answer: b Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Application Difficulty: Medium AACSB: Analytic 158) ___ occurs when a business acquires one of its suppliers.

a) Backward integration b) Inside-out integration c) Forward integration d) Outside-in integration e) Horizontal integration Answer: a Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 159) Kiri Ltd., manufacturers a unique skin therapy cream that it sells to high-end retailers. One of its key customers has threatened to take its business to one of Kiri’s competitors because of rumors that the suppliers for one of the key ingredients in Kiri’s cream may begin selling to other manufacturers. Which of the following would be the best strategy for Kiri Ltd.? a) Backward integration b) Inside-out integration c) Forward integration d) Outside-in integration e) Horizontal integration Answer: a Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Application Difficulty: Medium AACSB: Analytic 160) ___ occurs when business acquires distributors. a) Backward integration b) Inside-out integration c) Forward integration d) Outside-in integration e) Horizontal integration Answer: c

Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 161) A ___ strategy is used when an organization seeks to maintain current operations without substantial changes. a) stability b) renewal c) combinational d) growth e) operational Answer: a Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 162) A ___ seeks to correct weaknesses by making changes to the current ways of operating. a) restructuring strategy b) related diversification strategy c) unrelated diversification strategy d) backward integration strategy e) forward integration strategy Answer: a Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 163) Liquidation, restructuring, downsizing, rightsizing, and divestiture are examples of which organizational strategy?

a) competition b) restabilization c) growth d) restructuring e) stability Answer: d Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 164) ___ involves closing operations and selling assets to pay creditors. a) Strategic alliances b) Divestiture c) Turnaround d) Diversification e) Liquidation Answer: e Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 165) Restructuring by downsizing primarily involves a) decreasing the size of operations. b) working with rivals on projects of mutual benefit. c) customizing products and advertising to best fit local needs. d) joining in partnership to pursue an area of mutual interest. e) adopting standardized products and advertising for use worldwide. Answer: a Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge

Difficulty: Easy AACSB: Analytic 166) Which of the following best describes restructuring by divestiture? a) selling off parts of the organization to refocus on core competencies. b) working with rivals on projects of mutual benefit. c) customizing products and advertising to best fit local needs. d) joining in partnership to pursue an area of mutual interest. e) adopting standardized products and advertising for use worldwide. Answer: a Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 167) Which of the following strategies primarily tries to fix specific performance problems? a) downsizing b) turnaround c) multidomestic d) divestiture e) co-opetition Answer: b Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 168) A(n) ___ views the world as one large market, trying as much as possible to standardize products and their advertising for use everywhere. a) globalization strategy b) domestic strategy c) multidomestic strategy d) transnational strategy

e) consolidation strategy Answer: a Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 169) A globalization strategy reflects a(n) ___ that assumes everyone everywhere wants the same thing that one has developed and sold successfully at home. a) region centered view b) ethnocentric view c) polycentric view d) geocentric view e) concentric view Answer: b Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Synthesis Difficulty: Hard AACSB: Analytic 170) A(n) ___ tries to customize products and their advertising as much as possible to fit the local needs of different countries or regions. a) globalization strategy b) domestic strategy c) multidomestic strategy d) transnational strategy e) crosscultural strategy Answer: c Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

171) A multidomestic strategy reflects a(n) ___ that that shows respect for both market diversity and the capabilities of locals to best interpret their strategic implications. a) paleocentric view b) ethnocentric view c) polycentric view d) geocentric view e) concentric view Answer: c Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Synthesis Difficulty: Hard AACSB: Analytic 172) Fresh Nest, a retail grocer, provides a wide variety of products to its customers. In order to keep up with the varying demand in fruits and vegetables the store stocks products according to the needs and tastes of their community. Based on this information, which of the following strategies has been adopted by Fresh Nest? a) transnational strategy b) downsizing strategy c) turnaround strategy d) co-opetition strategy e) multidomestic strategy Answer: e Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Application Difficulty: Medium AACSB: Analytic 173) Which of the following is a describes a characteristic of the transnational strategy? a) Organizations will work with rivals on projects of mutual benefit. b) An organization seeks efficiencies of global operations with attention to local markets. c) It tries to fix specific performance problems within the organization. d) A transnational strategy involves expansion of the organization’s current operations. e) The firm will analyze business opportunities according to market growth rate.

Answer: b Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 174) A(n) ___ seeks balance among efficiencies in global operations and responsiveness to local markets. a) globalization strategy b) domestic strategy c) multidomestic strategy d) transnational strategy e) crosscultural strategy Answer: d Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: EAsy AACSB: Analytic 175) A transnational strategy reflects a(n) ___ that respects diversity and values talents around the world. a) monocentric view b) ethnocentric view c) polycentric view d) geocentric view e) concentric view Answer: d Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

176) A(n) ______ occur(s) when two or more organizations join together in partnership to pursue an area of mutual interest. a) Vertical integration b) Horizontal integration c) Strategic alliances d) Strategic contracts e) Organizational collusion Answer: c Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 177) A strategic alliance that involves a firm contracting to purchase important services from another organization is known as a(n) ___. a) collaborative alliance b) entrepreneurial alliance c) outsourcing alliance d) supplier alliance e) distribution alliance Answer: c Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 178) Compsolute has entered into a partnership with Double Edge Finances. The terms of the agreement state that Compsolute would purchase the services of Double Edge’s finance team for a period of five years. This is an example of a(n) ___ alliance. a) supplier b) distribution c) outsourcing d) co-opetition e) equity strategic

Answer: c Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Application Difficulty: Medium AACSB: Analytic 179) In a(n) ___ alliance, firms typically join together to sell and deliver products or services. a) supplier b) distribution c) contracting d) vertical e) outsourcing Answer: b Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 180) The strategy of working with rivals on projects of mutual benefit is referred to as ___. a) downsizing b) turnaround c) divestiture d) vertical integration e) co-opetition Answer: e Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 181) Michael Porter’s competitive strategies model identifies four fundamental strategies.

Which of the following correctly describes these strategies? a) introduction, growth, maturity, and decline b) Stars, Cash Cows, Dogs, and Question Marks c) growth, differentiation, incremental, and emergent d) differentiation, cost leadership, focused differentiation, and focused cost leadership e) growth, retrenchment, vertical integration, and stability Answer: d Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 182) Michael Porter’s competitive strategies framework bases business-level strategic decisions on which two main considerations? a) market scope and source of competitive advantage b) market scope and product reliability c) market scope and market share d) source of competitive advantage and stability e) source of competitive advantage and vertical integration Answer: a Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 183) Businesses pursuing a ___ seek a competitive advantage by directing the organization’s resources and attention toward distinguishing its products from those of the competition. a) differentiation strategy b) cost leadership strategy c) focused diversification strategy d) focused cost leadership strategy e) emergent strategy Answer: a

Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 184) Watercandy sells a range of premium confectionery products. Although the company’s products are priced a little higher than those of its competitors, its customers are ready to pay for its unique flavours. Watercandy uses the ___ strategy to gain an advantage over its competitors. a) cost leadership b) stuck-in-the-middle c) focused cost leadership d) differentiation e) co-opetition Answer: d Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Application Difficulty: Medium AACSB: Analytic 185) Telkon, a mobile phone company, has recently launched a device which, apart from all the regular mobile phone features, also has an e-reader and a USB port. None of the other mobile device makers have such a product. According to this information, which of the following business-level strategies is being used by Telkon? a) co-opetition strategy b) cost leadership strategy c) focus strategy d) differentiation strategy e) turnaround strategy Answer: d Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Application Difficulty: Medium AACSB: Analytic

186) Which of the following strategies allows organizations to make profits while selling products or services at prices that their competitors cannot profitably match? a) cost leadership strategy b) stuck-in-the-middle strategy c) focused differentiation strategy d) differentiation strategy e) co-opetition strategy Answer: a Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 187) Businesses pursuing a ___ seek a competitive advantage by directing the organization’s resources and attention toward minimizing costs to operate more efficiently than the competition. a) differentiation strategy b) cost leadership strategy c) focused differentiation strategy d) focused cost reduction strategy e) emergent strategy Answer: b Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 188) Aries is a new company in the laundry detergent market, which already has many competitors. Researchers at Aries have devised a new, cost-efficient formula for manufacturing detergents that has made it possible for the company to charge less than its competitors and still make a profit. The strategy used by Aries is that of ___. a) cost leadership b) stuck-in-the-middle

c) focused differentiation d) differentiation e) co-opetition Answer: a Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Application Difficulty: Medium AACSB: Analytic 189) A ___ strategy typically concentrates attention on a special market segment in the form of a niche customer group, geographical region, or product or service line. a) co-opetition b) downsizing c) turnaround d) focus e) transnational Answer: d Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 190) Businesses pursuing a ___ seek a competitive advantage by concentrating on one special market segment and trying to offer customers in that segment a unique product. a) differentiation strategy b) cost leadership strategy c) focused differentiation strategy d) focused cost leadership strategy e) restructuring strategy Answer: c Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy

AACSB: Analytic 191) Which of the following is a defining characteristic of a focused differentiation strategy? a) It offers a unique product to a special market segment. b) It seeks the lowest costs of operations within a special market segment. c) It analyzes business opportunities according to market growth rate. d) It focuses on substantial penetration of expanding markets. e) It involves decreasing the size of operations. Answer: a Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 192) Businesses pursuing a ___ seek a competitive advantage by concentrating on one special market segment and trying to be the lowest cost provider in that segment. a) differentiation strategy b) cost leadership strategy c) focused differentiation strategy d) focused cost leadership strategy e) retrenchment strategy Answer: d Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 193) Which of the following is a defining characteristic of a focused cost leadership? a) It offers a regular product to a common market segment. b) It seeks the lowest costs of operations within a special market segment. c) It analyzes business opportunities according to market growth rate. d) It focuses on substantial penetration of expanding markets. e) It involves decreasing the size of operations.

Answer: b Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 194) Paying inadequate attention to the analysis of mission and purpose, core values and corporate culture, organizational strengths and weaknesses, and environmental opportunities and threats constitutes a strategic planning pitfall known as ___. a) failures of substance b) failures of process c) emergent strategies d) failures of corporate governance e) failures of strategic leadership Answer: a Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 195) Verticone, a software firm, suffered a significant loss as a result of poor market analysis and weak strategy selection. This is an example of ___. a) representativeness bias b) failure of substance c) goal displacement d) congruence bias e) endowment effect Answer: b Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Application Difficulty: Medium AACSB: Analytic

196) Poor handling of the ways that various aspects of strategic planning are accomplished constitute a strategic planning pitfall known as ___. a) failures of substance b) failures of process c) incrementalism d) failures of corporate governance e) failures of strategic leadership Answer: b Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 197) Failures of process in strategic planning include ___. a) the lack of participation error b) inadequate resource allocation c) goal displacement d) a and b e) a and c Answer: e Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 198) A lack of participation error is most likely to occur when a) the planning process becomes an end in itself. b) the performance of top management is not monitored. c) key persons are not included in the strategic planning. d) there is lack of efficiency in vertical communication. e) the cost leadership strategy and the differentiation strategy are used simultaneously. Answer: c

Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 199) ___ is the failure to include key persons in the strategic planning effort. a) Corporate governance b) Goal displacement c) The lack of participation error d) The lack of substance error e) Conflict avoidance Answer: c Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 200) The tendency to get so bogged down in details that the planning process becomes an end in itself instead of a means to an end is known as ___. a) corporate governance b) goal displacement c) lack of participation error d) lack of substance error e) conflict avoidance Answer: b Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 201) Process failure where the planning process becomes an end in itself, rather than a means to an end is referred to as ___. a) lack of participation error

b) goal displacement c) failures of substance d) divestiture e) downsizing Answer: b Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 202) ___ is evidenced by an organization’s top management ensure that corporate, business and functional strategies are well implemented and that any strategies that are not working are either scrapped or modified in a timely manner. a) Corporate governance b) Strategic control c) Strategic leadership d) Corporate performance auditing e) Corporate performance review Answer: b Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 203) ___ is the system of control and performance monitoring of top management that is maintained by boards of directors and other major stakeholder representatives. a) Corporate governance b) Stakeholder oversight c) Top management oversight d) Corporate performance auditing e) Corporate performance review Answer: a Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation

Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 204) ___ are formally charged with ensuring that an organization operates in the best interests of its owners and/or the representative public. a) Strategic leaders b) Boards of directors c) Executive teams d) Investment advisers e) Management committees Answer: b Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 205) In corporate governance, controversies often arise over the roles of ___ and ___. a) Managers; non-management employees b) Internal customers; external customers c) Inside directors; outside directors d) Customers; suppliers e) Stakeholders; stockholders Answer: c Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 206) Which of the following statements about corporate governance is incorrect? a) Boards may be too compliant in endorsing or confirming the strategic initiatives of top management. b) Board members are increasingly expected to exercise control and take active roles in ensuring that strategic management of an enterprise is successful.

c) Outside directors may be selected because they are friends of top management or at least are sympathetic to top management. d) Top management probably feels more performance accountability to boards of directors and other stakeholders in today’s environment. e) Top management performance accountability to a board of directors relates only to financial concerns. Answer: e Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 207) ___ is the capability to inspire people to engage successfully in a process of continuous change, performance enhancement, and implementation of organizational strategies. a) Strategic conceptualization b) Scientific management c) Strategic leadership d) Motivational speaking e) Groupthink Answer: c Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 208) Because the challenges faced by contemporary organizations are so complex, strategic management is increasingly viewed as ___. a) a professional planner’s responsibility b) a team leadership responsibility c) the chief executive officer’s only responsibility d) the board chairperson’s responsibility e) every middle manager’s most important responsibility Answer: b

Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 209) Which of the following is not one of the critical tasks of strategic leadership? a) Being a guardian of trade-offs by ensuring that the organization’s resources are allocated in ways consistent with the strategy b) Creating a sense of urgency by not allowing the organization and its members to grow slow and complacent c) Ensuring that top management understands the strategy so that they can direct their subordinates in carrying it out d) Being a teacher by conveying the strategy and making it a cause e) Being a great communicator to ensure that everyone understands the strategy and how it makes their organization different from others Answer: c Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Application Difficulty: Medium AACSB: Analytic 210) Which of the following examples best captures the function of a strategic leader? a) Vincent ensures the optimum allocation and consistent use of resources in his firm. b) Joseph refrains from pressurizing his subordinates and allows them to be complacent. c) Madeleine allows her employees to carve their own paths rather than acting as a teacher. d) Lilliana limits her interactions with her subordinates and disapproves the questioning of her orders. e) Bertille trusts her subordinates and does not cross-check their work. Answer: a Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Application Difficulty: Medium AACSB: Analytic

Question type: Essay 211) Explain how competitive advantage, strategy, and the strategic management process are interrelated. Answer: Competitive advantage refers to an organization operating with an attribute or combination of attributes that allows it to outperform its rivals. Sustainable competitive advantage is one that is difficult for competitors to imitate. A strategy is a comprehensive action plan that identifies long-term direction and guides resource utilization to accomplish an organization’s mission and objectives with sustainable competitive advantage. Strategic management is the process of formulating and implementing strategies that create competitive advantage and advance an organization’s mission and objectives. Learning Objective 10.1: Discuss the process and importance of strategic management. Section Reference 10.1: Strategic Management Bloom’s: Analysis Difficulty: Medium AACSB: Reflective Thinking 212) Core values are broad beliefs about what is or is not appropriate behaviour. How can a leader assist in establishing core values in an organization? Answer: It would be naive to assume that a leader can, at any given time, control all the actions of members of an entire business. Effective leadership is much more subtle. Leaders basically create a core value or social system that establishes and reinforces desired behaviours. Consequently, when employees of a company face an unexpected situation, they are guided by the core values. One important way that leaders influence the social system in their organizations is through the values they bring to the organization. These values can be conveyed in a number of ways. For instance, they can be communicated directly through public statements, memoranda, and e-mails. Highly visible decisions are also an effective way to communicate a value. For example, a CEO could overturn the decision of a subordinate in favour of a customer in an effort to communicate the importance of customer satisfaction: “The customer is always right.” Leaders can also influence value systems through the way they administer rewards. The organization’s individuals that demonstrate the desired attitudes and behaviour can be rewarded with good-paying jobs. The presence of strong core values helps build organizational identity, giving a sense of character to the organization in the eyes of its employees and external stakeholders. Core values also back up the mission by helping guide the behaviour of organization members in meaningful and consistent ways. If leaders are responsive to the values of key stakeholders when making and communicating decisions, the decisions are more likely to

be perceived as ethical by those stakeholders. Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Analysis Difficulty: Medium AACSB: Reflective Thinking 213) What is SWOT analysis? Discuss the types of issues and questions that should be addressed when conducting a SWOT analysis. Answer: Two critical steps in the strategic management process are analysis of the organization and analysis of the environment. These two steps may be approached with a technique known as SWOT analysis ¾ that is, an analysis of internal organizational Strengths and Weaknesses, and an analysis of external environmental Opportunities, and Threats. Specific types of questions are typically asked in a SWOT analysis. For an internal assessment of the organization, these questions are: What are our strengths? Manufacturing efficiency? Skilled workforce? Good market share? Strong financing? Superior reputation? What are our weaknesses? Outdated facilities? Inadequate research and development? Obsolete technologies? Weak management? Past planning failures? The questions typically asked in analyzing the industry and environment are: What are our opportunities? Possible new markets? Strong economy? Weak market rivals? Emerging technologies? Growth of existing market? What are our threats? New competitors? Shortage of resources? Changing market tastes? New regulations? Substitute products? Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 214) Labyrinth Ltd. is a heavy-metal manufacturer with a solid reputation and a significant market share. Their most recent financial statements for reported a noticeable decline in revenues from the previous years. Management has determined that the most likely cause was the entry of new competitors into the market. As well it was discovered that these competitors are operating with a more skilled labour pool and advanced technology. Prepare a SWOT analysis for Labyrinth Ltd. Your answer will include at least one item in each of the four categories. Answer: Strengths: the company’s reputation and their market share

Weakness: antiquated technology Opportunity: acquire newer technology in order to maintain their current strengths and possibly build upon them Threat: increased competition that already has new technology Student answers may vary somewhat, however the above represent the minimum expected. Learning Objective 10.2: Identify the essential elements in strategic analysis. Section Reference 10.2: Essentials of Strategic Analysis Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 215) Discuss the challenges facing businesses in the global world and the impact on corporate strategy development and implementation. Answer: A key aspect of corporate strategy today is how to embrace the global economy and its mix of business risks and opportunities. An easy way to spot differences in global strategies is to notice how products are developed and advertised around the world. A firm pursuing a globalization strategy tends to view the world as one large market. It makes most decisions from the corporate headquarters and tries as much as possible to standardize products and advertising for use everywhere. The latest Gillette razors from Procter & Gamble, for example, are likely to be sold and advertised similarly around the world. Firms using a multidomestic strategy try to customize products and advertising as much as possible to fit local references in different countries or regions. McDonald’s is a good example. Although you can get your standard fries and Big Mac in most locations, you can have a McVeggie in India, a McArabia Kofta in Saudi Arabia, and a Croque McDo in France. A third approach is the transnational strategy where a firm tries to operate without a strong national identity and blend seamlessly with the global economy. Ford is an example. Its Global Performance strategy draws upon design, manufacturing, and distribution expertise all over the world to build five core car platforms with common parts and components. These platforms are then modified to meet regional tastes. Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Synthesis Difficulty: Hard AACSB: Analytic 216) What is the BCG Matrix? What are the recommended strategies for dealing with Stars, Question Marks, Dogs, and Cash Cows?

Answer: The BCG Matrix ties strategy formulation to an analysis of business opportunities based on market growth rate (low versus high-growth rate) and market share (low versus high share). The BCG Matrix has four combinations of business conditions, each of which has a particular strategic implication. These combinations are Stars, Question Marks, Cash Cows, and Dogs. Stars are high market share/high-growth businesses. They produce large profits through a dominant competitive position in a growing market. The preferred strategy is growth. Question Marks are low market share/high-growth businesses. They do not produce much profit but do compete in rapidly growing markets. The preferred strategies are growth for promising Question Marks and retrenchment for the other Question Marks. Cash Cows are high market share/low-growth businesses. They produce large profits and a strong cash flow but offer little growth opportunity. The preferred strategy is stability or modest growth, using the cash flow to fund investment in Stars or promising Question Marks. Dogs are low market share/low-growth businesses. They do not produce much profit and show little potential for future improvement. The preferred strategy is retrenchment by divestiture. Learning Objective 10.3: Explain alternative corporate strategies. Section Reference 10.3: Corporate-Level Strategy Formulation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 217) What are the terms on which Porter based his model for choosing competitive strategies? What are the three competitive strategies cited by Porter? For each of the three strategies provide an example. Your examples should not include any that are from your textbook. Answer: Porter frames the strategy analysis in terms of market scope of the product or service, and source of competitive advantage for the product or service. The three business-level strategies cited by Porter are: cost leadership, differentiation, and focus. A differentiation strategy seeks competitive advantage through uniqueness. A cost leadership strategy seeks competitive advantage by operating with lower costs than competitors. A focus strategy concentrates attention on a special market segment in the form of a niche customer group, geographical region, or product or service line. Examples: Student examples will vary Cost Leadership – Costco Product differentiation – Lululemon Focus – Couture fashion Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Application Difficulty: Medium AACSB: Analytic

218) Briefly describe the two key factors that Michael Porter uses as the basis for formulating strategy. Explain how these factors combine to create different competitive strategies. Answer: According to Michael Porter, business-level strategic decisions are driven by two factors: market scope (i.e., the broadness or narrowness of the target market) and source of competitive advantage (i.e., whether competitive advantage is sought through lower price or through product or market uniqueness). Porter’s generic strategies framework combines these two factors to generate the following four generic strategies that an organization can pursue in seeking to gain a strategic advantage. Differentiation strategy––where the organization’s resources and attention are directed toward distinguishing its products from those of the competition. Cost leadership strategy––where the organization’s resources and attention are directed toward minimizing costs to operate more efficiently than the competition. Focused differentiation strategy––where the organization concentrates on one special market segment and tries to offer customers in that segment a unique product. Focused cost leadership strategy––where the organization concentrates on one special market segment and tries to be the lowest cost provider in that segment. Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 219) Porter suggests that competitive strategies are based on what he calls the factors that determine competition or, in other words, based on an analysis of the competitive environment. Describe one competitive strategy and illustrate how this strategy has been applied to an organization or market. Answer: Answers should contain one of these strategies: Cost leadership, Differentiation and Focus. Cost Leadership – With a cost leadership strategy, the idea is to gain a competitive edge by achieving a cost advantage. In other words, you must reduce your costs as much as possible. This gives the company an advantage over its rivals and also over its suppliers and clients. The classic example is Wal-Mart’s mass purchasing. Another example is IBM and Boeing. They are cost leaders who have chosen to use their lower costs not to reduce prices but to generate higher returns which have subsequently been invested in marketing, R&D and manufacturing as a means of maintaining and strengthening their position. Differentiation – The aim of the differentiation strategy is to ensure that either the company in general or certain specific elements (such as its products, customer care,

quality, etc.) are perceived to be unique by both clients and suppliers. As one might suppose, this kind of strategy means that the company involved must have certain capacities and skills (i.e., technology, marketing, etc.) that enable it to achieve, maintain, and develop a certain degree of differentiation. Example: Marriott International. Marriott International has the Ritz-Carlton brand name, directed at the luxury segment of the market. Although J.W.Marriott Hotels might be regarded as being in the same category, Ritz-Carlton hotels tend to be deluxe properties that are a cut above Marriott International. Most operate under the name Ritz-Carlton, although some have their own individual names. Differentiation can also be achieved by means of the brand image and packaging, a position particularly suited to mature markets in which the products are often physically indistinguishable. For example, the cola drinks with Pepsi Cola and supermarkets' own brands and the fashion clothing industry with Gap and Banana Republic which design casual clothes aimed primarily at the same customer demographics. Focus – Organizations pursuing focus strategies concentrate on a special market segment—niche customer group, geographical region, or product or service line. The objective is to serve the needs of the segment better than anyone else. Competitive advantage is achieved by combining focus with either differentiation or cost leadership. Example: A good example of differentiation focus is that of Porsche, the German sports car manufacturer. It focuses on the performance car segment of the automobile market and does not produce cars for other segments of the market. Its cars are sold on the basis of brand name based upon consumer perceptions that its products are technically superior to those of competitors, are better designed, have superior performance and are more reliable than those of their competitors. Learning Objective 10.4: Explain alternative business-level strategies. Section Reference 10.4: Business-Level Strategy Formulation Bloom’s: Synthesis Difficulty: Hard AACSB: Reflective Thinking 220) List and briefly describe the key responsibilities of strategic leadership. Answer: Key responsibilities of strategic leadership are: A strategic leader has to maintain strategic control. This means that the CEO and other top managers should always be in touch with the strategy, how well it is being implemented, whether the strategy is generating performance success or failure, and the need for the strategy to be tweaked or changed. A strategic leader has to be the guardian of trade-offs. It is the leader’s job to make sure that the organization’s resources are allocated in ways consistent with the strategy. This requires the discipline to sort through many competing ideas and alternatives, to stay on course, and not to get sidetracked. A strategic leader needs to create a sense of urgency. The leader can’t allow the organization and its members to grow slow and complacent. Even when doing well, the leader keeps the focus on getting better and being alert to conditions that require

adjustments to the strategy. A strategic leader needs to make sure that everyone understands the strategy. Unless strategies are understood, the daily tasks and contributions of people lose context and purpose. Everyone might work very hard, but without alignment to strategy the impact is dispersed and fails to advance common goals. A strategic leader needs to be a teacher. It is the leader’s job to teach the strategy and make it a “cause.” In order for strategy to work, it must become an ever-present commitment throughout the organization. This means that a strategic leader must be a great communicator. Everyone must understand the strategy and how it makes their organization different from others. Learning Objective 10.5: Describe the foundations of strategy implementation. Section Reference 10.5: Strategy Implementation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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CHAPTER 11 ORGANIZATION STRUCTURES Question type: True/False 1) The purpose of organizing is to create divisions of labour and coordinate processes in order to achieve a common goal. Answer: True Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 2) An organization’s ability to implement its strategy is greatly helped by a structure that allocates tasks through a division of labour and provides for the coordination of performance results. Answer: True Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 3) An organization structure is the system of tasks, workflows, reporting relationships, and communication channels that link together the work of diverse individuals and groups. Answer: True Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 4) The purpose of an organization structure is to map out working and reporting relationships within an organization or business unit. Answer: True Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 5) When an organization chart shows vice presidents of marketing, manufacturing, finance, and human resources reporting directly to the president of a company, the top management group is organized as a divisional structure. Answer: False Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 6) An organization chart includes major subunits in which positions reporting to a common manager are shown. Answer: True Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 7) Informal structures always work against the achievement of high productivity. Test Bank

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Answer: False Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Comprehension Difficulty: Hard AACSB: Analytic 8) An organization can be successful without an informal structure. Answer: False Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 9) The informal structure of an organization is the shadow organization connection various members of the organization. Answer: True Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 10) Social network analysis identifies the informal structures and their embedded social relationships that are active in an organization. Answer: True Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic Test Bank

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11) Informal networks are sources of emotional support and friendship that satisfy members’ social needs. Answer: True Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 12) Advantages of functional structures include the support of in-depth training and reduced accountability for total product or service delivery. Answer: False Learning Objective 2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 13) A potential disadvantage of functional structures concerns the difficulties in pinpointing responsibilities for cost containment, product or service quality, timeliness, and innovation. Answer: True Learning Objective 2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 14) The functional chimneys problem can slow decision making, diminish cooperation and commitment to a common purpose, and interfere with coordination across functions. Answer: True Test Bank

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Learning Objective 2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 15) In a functional structure, people working on the same product, in the same area, with similar customers, or on the same processes, are grouped together. Answer: False Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 16) Functional structures tend to work best in relatively stable environments where problems are predictable and the demands for change and innovation are limited. Answer: True Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 17) Divisional structures are common in organizations with assorted products, geographical areas and processes. Answer: True Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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18) Divisional structures can create healthy rivalries as divisions compete for available resources. Answer: False Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 19) A divisional structure is characterized by reduced coordination across functional departments. Answer: False Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 20) A product structure prompts managers to be responsive to changing market demands and customer tastes. Answer: True Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 21) Product structures group together jobs and activities that serve similar customers or clients. Answer: False Test Bank

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Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 22) A product structure is not effective in a global organization, as the work processes and people are too spread out to make the structure viable. Answer: False Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 23) A disadvantage of the product structure is that divisions are more likely to compete than to cooperate with each other. Answer: True Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 24) Geographical structures group together jobs and activities being performed in nearby locations or regions. Answer: False Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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25) Geographical structures are typically used when there is a need to differentiate products or services in various locations, such as in different parts of a country. Answer: True Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 26) Customer structures are effective only in service industries. Answer: False Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 27) A customer structure groups jobs and activities that serve the same customers. Answer: True Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 28) A work process is a group of tasks related to one another that collectively creates something of value to a customer. Answer: True Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 29) Process structures group together jobs and activities that are part of processes within the same product line. Answer: False Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 30) A disadvantage of functional structures is that employees lack a clear career path within functions. Answer: False Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 31) The matrix structure makes use of permanent cross-functional teams to integrate functional expertise in support of a clear divisional focus on a product, project, or program. Answer: True Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 32) Members of matrix organizations may experience task confusion and encounter Test Bank

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power struggles because of reporting to both a “project team boss” and a “functional boss.” Answer: True Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 33) A matrix structure is characterized by better customer, performance accountability and improved strategic management and reduced administrative costs. Answer: False Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 34) A potential disadvantage of the matrix structure is the occurrence of “groupitis” resulting in meetings that take longer than needed and a lack of focus on organizational goals. Answer: True Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 35) In a matrix structure, top managers are freed from lower-level problem solving to focus time on more strategic issues. Answer: True Learning Objective 11.2: Identify the strengths and weaknesses of traditional Test Bank

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organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 36) Organizations with team structures make extensive use of both permanent and temporary teams to solve problems, complete special projects, and accomplish day-to-day tasks. Answer: True Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 37) Team members’ effective utilization of the time they spend together is independent of the quality of their interpersonal relations, group dynamics, and team management. Answer: False Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 38) The team structure improves organizational performance by improving the speed and quality of decision making, and overall better time management. Answer: False Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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39) Project teams are permanent in nature and cannot be disbanded. Answer: False Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 40) The disadvantages of team structures include conflicting loyalties among members regarding both team and functional assignments and the excessive time spent in meetings. Answer: True Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 41) In addressing the potential disadvantages of team structures, managers should manage time effectively and not promote effective interpersonal relations, group dynamics, and team management. Answer: False Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 42) Network structures result in increasing overhead costs and reducing operating efficiency. Answer: False Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and Test Bank

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network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 43) Network structures consist of a central business core that that is linked through networks of relationships with outside contractors and suppliers of essential services. Answer: True Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 44) The network structure cannot function without strategic alliances with partner firms. Answer: True Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 45) Supplier strategic alliances link businesses in preferred supplier–customer relationships that guarantee a smooth and timely flow of quality supplies among the partners. Answer: True Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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46) Outsourcing strategic alliances permit an organization to outsource, or loan out core function employees, such as accounting and document processing to partner firms. Answer: False Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 47) Boundaryless sourcing refers to the contracting of business functions to outside suppliers. Answer: False Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 48) The advantages of network structures include (a) staying cost competitive through reduced overhead and increased operating efficiency, and (b) operating with fewer fulltime employees and less complex internal systems. Answer: True Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 49) The potential disadvantages of the network structure are due primarily to the demands of flexibility in responding to changing conditions, having fewer full-time employees to help build the supervisor’s managerial empire, and the need to operate across great distances. Answer: False Test Bank

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Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 50) Boundaryless organizations remove internal boundaries among parts and external boundaries linking with the external environment. Answer: True Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 51) Key requirements for a boundaryless organization are the absence of hierarchy, empowerment of team members, technology utilization, and acceptance of impermanence. Answer: True Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 52) Due to the absence of structural barriers, boundaryless organizations have few communication and coordination problems. Answer: False Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Comprehension Difficulty: Easy Test Bank

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AACSB: Analytic 53) A virtual organization is an extreme form of a boundaryless organization and requires as a fluid network of alliances in order to function in a wireless manner. Answer: True Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 54) A virtual organization operates in a shifting network of external strategic alliances that are engaged as needed, and typically are supported by extensive information technology utilization. Answer: True Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 55) A latent organization operates in a shifting network of external strategic alliances that are engaged as needed, and typically are supported by extensive information technology utilization. Answer: False Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 56) An individual wanting to work in a latent organization must be prepared to work in a potentially unstable organization. Because the individual has the skill set the Test Bank

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organization needs, this potential downside is mitigated with high compensation. Answer: True Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 57) Organizational design is the process of choosing and implementing organizational structures that best arrange resources to accomplish the organization’s mission and objectives. Answer: True Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 58) The key to organizational success is finding the one best organization design to fit all problems and opportunities. Answer: False Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 59) A clear-cut division of labour, a strict hierarchy of authority, formal rules and procedures, and promotion based on competency are features that characterize bureaucracy. Answer: True Learning Objective 11.4: Discuss how and why organizational designs are changing in Test Bank

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today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 60) Tom Burns and George Stalker determined that there are two different kinds of bureaucratic organizational designs. These are the mechanistic design and the adaptive design. Answer: False Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 61) Tom Burns and George Stalker found that the mechanistic organization thrived when the environment was unstable and changing because it provided a necessary counterbalancing sense of order. Answer: False Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 62) In a mechanistic organization, an employee works in an orderly and disciplined environment, adheres to all organizational rules and procedures, and is closely supervised. Answer: True Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 63) Government departments, such as the Canada Revenue Agency are examples of a mechanistic organizational design. Answer: True Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Application Difficulty: Medium AACSB: Analytic 64) The organic design is characterized by decentralization, wider spans of control, and few rules and procedures. Answer: True Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 65) An organic design organization would match a laissez-faire leadership style, while a mechanistic design match a autocratic leadership style. Answer: True Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Synthesis Difficulty: Hard AACSB: Analytic 66) Dynamic environments and changing conditions call for more organic designs. Answer: True Test Bank

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Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 67) Adaptive organizations lead to or create organic design organizations. Answer: False Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 68) Adaptive organizations operate with a minimum of bureaucratic structure and with cultures that encourage worker empowerment and participation. Answer: True Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 69) According the research findings of Paul Lawrence and Jay Lorsch, successful firms operating in certain environments had more organic designs, whereas successful firms operating in uncertain environments had more mechanistic designs. Answer: False Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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70) The line of authority that vertically links each position with successively higher levels of management is chain of command. Answer: True Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 71) As organizations grow, they get taller as more levels are added to the chain of command. Answer: True Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 72) Narrow spans of control create an organization that is more efficient and flexible, whereas wider spans of control usually result in additional management overhead costs. Answer: False Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 73) An organization with narrow spans of control will have fewer managers and more employees per manager, whereas an organization with wide spans of control will have more managers and fewer employees per manager. Answer: False Test Bank

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Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 74) Delegation is the process of entrusting work to others in the organization by giving them the right to make decisions and take action. Answer: True Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 75) The authority-and-responsibility principle states: “authority should equal responsibility when work is delegated from a supervisor to a subordinate.” Answer: True Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 76) The delegation process has three steps. These are: Step 1: assign responsibility; Step 2: create accountability and Step 3: grant authority. Answer: False Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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77) Effective delegation leads to empowerment of workers and can increase employees’ job satisfaction and work performance. Answer: True Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 78) Empowerment refers to letting others make decisions and exercise discretion in their work. Answer: True Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 79) Centralized organizations delegate decision making throughout all levels of management, and decentralized organizations concentrate decision making at the top levels of management. Answer: False Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 80) When decision-making authority is dispersed by extensive delegation throughout all levels of management, the organization is decentralized. Answer: True Test Bank

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Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 81) An organization that operates in a decentralized fashion is structured such that lower level employees are able to participate in decision making. Answer: True Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 82) With respect to centralization and decentralization, the current trend is for organizations to centralize decision making and decentralize control. Answer: False Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 83) A current trend in organizations is to reduce the size of staff in order to increase operating efficiency. Answer: True Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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Question type: Multiple Choice 84) ___ is the system of tasks, workflows, reporting relationships, and communication channels that link together the work of diverse individuals and groups. a) Job design b) Management c) Organization structure d) Strategy e) A work plan Answer: c Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 85) Any organization structure should ___ and ___. a) Allocate task assignments through a division of labour; provide for the coordination of performance results b) Allocate task assignments through a division of labour; provide for the creation of a horizontal organization c) Allocate organizational resources to important departments; provide for the oversight of less important departments d) Assign good leaders to the effective work teams; assign poorer leaders to marginally effective work teams e) Assign organizational objectives to divisions, departments, and work teams; provide for the coordination of performance results Answer: a Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

Test Bank

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86) Which of the following is the most accurate description regarding the purpose of an organization structure? a) to divide up and coordinate resources and tasks to be done for performance success b) to identify relationships between suppliers and company buyers c) to design titles for different types of workers d) to allocate management authority to department heads e) to assign daily work tasks to workers Answer: a Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 87) Given a clear mission, core values, objectives and strategy, ___ begins the process of implementation by clarifying jobs and working relationships. a) planning b) controlling c) organizing d) coordinating e) leading Answer: c Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 88) Avery’s job includes dividing up the work and assigning tasks to each employee. Avery accomplishes these tasks by identifying people responsible for each task, deciding on the reporting structure, and employees work relationships. Avery is a part of the company’s___ team. a) financing b) sourcing c) controlling Test Bank

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d) decentralizing e) organizing Answer: e Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Application Difficulty: Medium AACSB: Analytic 89) In an organizational structure, division of work refers to a) lines that show who reports to whom. b) positions and titles that show work responsibilities. c) the vertical layers of management. d) lines that show formal communication flows. e) positions that report to a common manager. Answer: b Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 90) An organization chart should provide a picture of how an organization works with respect to all of the following except? a) communication channels b) division of work c) social relationships d) supervisory relationships e) management levels Answer: c Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 91) An organization chart should provide a picture of how an organization works with respect to which of the following. a) communication channels b) friendship cliques c) social relationships d) grapevine structures e) sources of emotional support Answer: a Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 92) In an organizational structure, major subunits refer to a) positions and titles that show work responsibilities. b) lines that show who reports to whom. c) positions that report to a common manager. d) lines that show how formal communication flows. e) the vertical layers of management. Answer: c Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 93) An organization’s lines of authority, positions and job titles, and formal communication channels are often demonstrated in a(n) __________. a) flow chart b) PERT diagram Test Bank

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c) organization chart d) input/output diagram e) structural diagram Answer: c Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 94) Leisure Life is a large tour operator with 20 locations in west-central Canada. Four senior managers look after the company’s operations in all of the company’s locations, all of whom report to the company’s general manager who is stationed at the company headquarters in Winnipeg, Manitoba. This description represents the ___ of the company. a) code of conduct b) social network c) organization chart d) focal structure e) mission Answer: c Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Application Difficulty: Medium AACSB: Analytic 95) Which of the following is true of a formal structure? a) Formal structures work only in organizations with diverse operations that extend across many products, customers, and work processes. b) The lines of the formal structure cut across levels and move from side to side. c) Formal structures are characterized by the existence of “in” and “out” groups. d) Lines in a formal structure are drawn from person to person according to frequency and type of relationship maintained. e) A formal structure consists of vertical layers of management. Answer: e Test Bank

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98) Which of the following is a disadvantage of informal structures? a) They are characterized by too many vertical layers of management. b) They are typified by the presence of complex formal communication flows. c) They have very centralized systems that restrict employee freedom. d) They are characterized by the existence of “in” and “out” groups. e) They discourage informal learning as people work and interact together throughout the workday. Answer: d Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 99) Which of the following asks people to identify others to whom they turn for help most often, with whom they communicate regularly, and who gives them energy and motivation? a) social network analysis b) formal structures c) forces analysis d) SWOT analysis e) four corners model Answer: a Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 100) A(n)___identifies the informal structures and their embedded social relationships that are active in the organization. a) informal structure b) social network analysis c) organization chart Test Bank

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d) functional chimney e) functional structure Answer: b Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 101) Bailey, a recent MBA graduate, is the finance manager of PLUS Company. Bailey has a problem with a shadow organization in the division. A first step in Bailey’s management strategy might be ___. a) meeting with her employees to let them know she is the boss b) promising bonuses only to those employees who agree with her and work with him c) seeking to understand and work with the shadow organization d) firing the people who are members of the shadow organization e) assuming her staff is trying to undermine her and act accordingly Answer: c Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Application Difficulty: Medium AACSB: Analytic 102) The following five examples describe different types of relationships between employees at Stratus Ltd. Which set of relationships indicates the existence of a shadow organization? a) Department managers report directly to the vice presidents in charge of their division. b) An employee asks questions of an immediate supervisor, gets answers, and works closely with this person. c) In one department, superior-subordinate relationships are strained. Subordinates take direction from the manager of another department. d) Members of a word processing pool provide secretarial services for all divisions on a first come, first served basis. e) The company president delegates authority to division managers, division managers delegate authority to department managers, and department managers delegate authority Test Bank

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to support staff. Answer: c Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Application Difficulty: Medium AACSB: Analytic 103) Three common types of traditional organizational structures are ___. a) centralized, decentralized, and integrated b) functional, horizontal, and vertical c) divisional, centralized, and line d) functional, divisional, and matrix e) matrix, staff, and functional Answer: d Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 104) When an organization chart shows vice presidents of marketing, manufacturing, finance, and human resources reporting directly to the president of a company, the top management group is organized as a ___ structure. a) horizontal b) vertical c) functional d) divisional e) matrix Answer: c Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Application Test Bank

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Difficulty: Medium AACSB: Analytic 105) Alpha Sportswear Corporation, an apparel manufacturer, creates groups of employees with similar skills performing similar tasks. Members of each such group share technical knowledge, skills, and responsibilities. Which of the following structures is being used by Alpha Sportswear Corporation? a) product structure b) divisional structure c) functional structure d) geographical structure e) customer structure Answer: c Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Application Difficulty: Medium AACSB: Analytic 106) Which of the following is true of a functional structure? a) It is characterized by low-quality technical problem solving. b) It consists of task assignments consistent with expertise and training. c) It does not have the advantage of economies of scale. d) It is common in complex organizations with diverse operations. e) It is the ideal structure when there is a need to differentiate products or services in various locations. Answer: b Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 107) The ___ problem refers to the lack of communication, coordination, and collaborative problem solving across functions. Test Bank

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a) horizontal silos b) double bind c) functional chimneys d) divisional smokestack e) matrix identity Answer: c Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 108) The functional chimneys problem can ___. a) slow decision making b) diminish cooperation and commitment to a common purpose c) interfere with coordination across functions d) create difficulties in pinpointing responsibilities e) all of the above Answer: e Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 109) Which of the following is an advantage of a functional structure? a) economies of scale with efficient use of resources b) improved coordination across functional departments c) establishment of a sense of common purpose d) clear points of responsibility for product or service delivery e) expertise focused on specific customers, products, and regions Answer: a Learning Objective 11.2: Identify the strengths and weaknesses of traditional Test Bank

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organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 110) Potential disadvantages of functional structures include all of the following except a) difficulties in pinpointing responsibilities for cost containment, product or service quality, timeliness, and innovation. b) provides for clear career paths. c) sense of cooperation and common purpose tends to break down. d) narrow view of performance objectives. e) too many decisions referred upward in the organizational hierarchy. Answer: b Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 111) A ___ groups together people working on the same product, in the same area, with similar customers, or on the same processes. a) functional structure b) silos structure c) divisional structure d) vertical structure e) matrix structure Answer: c Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 112) Which of the following is true of a divisional structure? Test Bank

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a) It is common in organizations dealing with only one or a few products or services. b) It tends to work best in relatively stable environments where problems are predictable. c) Its main focus is to put together people within the same expertise and help them work together. d) It is an attempt to gain the advantages and minimize the disadvantages of the matrix structure. e) It overcomes the disadvantages of a functional structure, such as the functional chimneys problem. Answer: e Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 113) All of the following are potential advantages of using a divisional structure except a) more flexibility in responding to environmental changes. b) establishes clear points of responsibility for product or service delivery. c) expertise is focused on specific customers, products, or regions. d) duplication of resources and efforts across divisions. e) greater ease in changing size by adding or deleting divisions. Answer: d Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 114) ___ clearly identify costs, profits, problems, and successes in a market area with a central point of accountability. a) Product structures b) Geographical structures c) Area structures d) Customer structures e) Process structures Test Bank

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Answer: a Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 115) Rezter Group, a consumer goods company, owns several brands that produce different goods. Each brand is focused on a single consumer good and has a separate chief executive who is responsible for the manufacturing, sales, costs, profits, and losses of his or her brand. This implies that each brand at Rezter Group is applying a ___ structure in the organization. a) geographical b) product c) customer d) functional e) process Answer: b Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Application Difficulty: Medium AACSB: Analytic 116) Maroon Auto, an automobile manufacturer, operates in several countries. The company has three major brands which are headed by three separate managers. Each of these three managers look after all the jobs and activities associated with their respective brands. According to this information, which of the following organization structures is adopted by Maroon Auto? a) functional structure b) product structure c) geographical structure d) customer structure e) process structure Answer: b Test Bank

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Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Application Difficulty: Medium AACSB: Analytic 117) Which of the following is true of a product structure? a) It groups together jobs and activities being performed in the same location. b) It is used when there is a need to differentiate products or services in various locations. c) It groups together jobs and activities that are serving the same customers or clients. d) It clearly links costs, profits, problems, and successes in a market area with a central point of accountability. e) It helps focus attention on the unique cultures and requirements of different nations. Answer: d Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 118) ___ structures are typically used when there is a need to differentiate products or services in various locations, such as in different regions of a nation or in international operations where there is a need to focus on the requirements of particular cultures and regions of the world. a) Product b) Market c) Geographical d) Customer e) Process Answer: c Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Analysis Difficulty: Medium Test Bank

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AACSB: Analytic 119) Which of the following is true about the geographical structure? a) It helps focus attention on the unique cultures and requirements of particular regions. b) Under this structure, jobs and activities are grouped together based on preferences of similar clients. c) It groups together jobs and activities that are part of the same processes. d) It groups together people with similar skills who perform similar tasks. e) Under this structure, each product division is given a chief executive who is responsible for its own profits and losses. Answer: a Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 120) Slice-It Inc., a fast food organization operating in many countries, varies its menus in different countries according to local tastes and preferences. It groups together employees and tasks working in the same location. Which of the following structures is Slice-It Inc. using? a) geographical structure b) product structure c) customer structure d) functional structure e) process structure Answer: a Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Application Difficulty: Medium AACSB: Analytic 121) ___ are particularly appealing because they can best serve the special needs of different customer groups. Test Bank

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a) Product structures b) Process structures c) Matrix structures d) Customer structures e) Geographical structures Answer: d Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 122) Emerald World Inc.’s organizational structure combines jobs that serve clients based on factors such as their ages, tastes, and preferences. Which of the following organizational structures exists at Emerald World Inc.? a) geographical structure b) product structure c) customer structure d) functional structure e) process structure Answer: c Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Application Difficulty: Medium AACSB: Analytic 123) An order fulfillment by a catalog retailer, a procedure that takes an order from point of initiation by the customer to point of fulfilment by a delivered product is an example of a ___. a) operational chimney b) functional silo c) directional array d) work process e) strategic alliance Test Bank

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Answer: d Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 124) Employees who are involved in designing, engineering, and preparing models are grouped together at Zener Inc. Further, employees who engage in public relations, sales promotion, advertising, and direct marketing are put together in another team. Which of the following structures exists at Zener Inc.? a) geographical structure b) product structure c) customer structure d) client structure e) process structure Answer: e Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Application Difficulty: Medium AACSB: Analytic 125) Which of the following is an advantage of a divisional structure? a) expertise focused on specific customers, products, and regions b) economies of scale with efficient use of resources c) reduced costs because of common resources and efforts across divisions d) emphasis on the goals of the organization as a whole e) no scope for unhealthy rivalries within the organization Answer: a Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 126) Which of the following is a disadvantage of divisional structures? a) There is reduced flexibility in adding, removing, or changing operations to meet changing demands. b) They increase costs through the duplication of resources and efforts across divisions. c) They reduce the level of coordination across functional departments. d) They make it impossible to focus on specific customers, products, and regions. e) They require the deletion of divisions in an organization. Answer: b Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 127) A matrix structure combines elements of both ___and ___ structures. a) horizontal; vertical b) horizontal; divisional c) functional; vertical d) functional; divisional e) vertical; divisional Answer: d Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 128) Which of the following is true of a matrix structure? a) Employees in a matrix structure are allowed to be part of only one team at a time. b) A matrix structure does not have the ability to be flexible while dealing with regional differences. Test Bank

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c) It is accomplished by creating permanent teams that cut across functions to support specific products, projects, or programs. d) A matrix structure is made up of temporary teams that are disbanded after each project. e) A matrix structure involves top management in lower-level problem solving. Answer: c Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 129) Which structural approach makes use of permanent cross-functional teams to integrate functional expertise in support of a clear divisional focus on a product, project, or program? a) Hybrid b) Matrix c) Divisional d) Functional e) Individual Answer: b Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 130) Which of the following is an advantage of a matrix structure? a) improved strategic management b) no scope for issues such as “groupitis” across teams c) clearly defined tasks and no conflict in work priorities d) no power struggles across teams e) fast and effective team meetings Answer: a Learning Objective 11.2: Identify the strengths and weaknesses of traditional Test Bank

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organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 131) Which of the following is a disadvantage of a matrix structure? a) The requirement of adding the team leaders to a matrix structure can result in higher costs. b) A matrix structure results in reduced performance accountability through the program, product, or project managers. c) Matrix structures are associated with very poor customer service. d) A matrix structure stresses that top managers must engage in both lower-level problem as well as more strategic issues. e) Matrix structures lead to reduced flexibility in adding, removing, or changing operations to meet changing demands. Answer: a Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 132) If an organization is concerned about frequently adding and deleting new products or services and also wants to make sure that customers or clients always have a program manager available to respond to questions and concerns, the___ structural form is a good choice. a) Horizontal b) Vertical c) Functional d) Divisional e) Matrix Answer: e Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Application Test Bank

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Difficulty: Medium AACSB: Analytic 133) Alex, a software engineer at Re-Soft Inc., reports to two managers at the same time, a functional manager and a team manager. In the context of divisional structures, Alex is working in a ___ structure. a) geographical b) customer c) process d) product e) matrix Answer: e Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Application Difficulty: Medium AACSB: Analytic 134) Which of the following is true about a team structure? a) A temporary team does not have prominence in a team structure. b) A team structure is most often observed in a vertical organization. c) The intention of a team structure is to create more effective lateral relations around and across the organization. d) In a team structure, cross-functional structures are convened for a particular task or project and disbanded once the task is completed. e) The main focus of a team structure is to improve and maintain the hierarchical system of management. Answer: c Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 135) A ___ uses both permanent and temporary cross-functional teams to solve problems, Test Bank

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complete special projects, and accomplish daily tasks. a) geographical structure b) cross-functional structure c) team structure d) divisional structure e) matrix structure Answer: c Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 136) Which of the following is a horizontal structure that brings together members from different departments such as marketing, production, and accounting? a) divisional structure b) functional structure c) cross-functional team d) process structure e) product-oriented team Answer: c Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 137) Which of the following is true of a project team? a) Project teams are examples of traditional vertical structures. b) Project teams are characterized by a lack of communication and coordination across functions. c) Project teams are informal structures that group together jobs and activities focused on a single product or service. d) Project teams are temporary and disband once the task is completed. e) Project teams are created at the beginning of a project and cannot be disbanded as they Test Bank

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are retained for future projects. Answer: d Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 138) One of the disadvantages of using a team structure is ___. a) conflicting loyalties of members b) speed and quality of decisions c) improved morale d) shared knowledge e) improving lateral relations Answer: a Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 139) Which of the following is a limitation of a team structure? a) Team members spend a considerable amount of their time in meetings, with not all of that time spent productively. b) A team structure is associated with poor performance. c) Project teams are informal structures that group together jobs and activities focused on a single product or service. d) Employees working in a team structure often experience a reduced sense of identification. e) A team structure is not very effective at mobilizing member’s skills, knowledge and talents. Answer: a Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Test Bank

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Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 140) Four engineers from the technology cell of a company are required to work together for a certain time on a job till the job is completed. This is an example of a(n) ___. a) cross-functional team b) outsourcing strategic alliance c) boundaryless organization d) project team e) functional silo Answer: d Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Application Difficulty: Medium AACSB: Analytic 141) A ___ structure has a central core of full-time employees surrounded by outside contractors and partners that supply essential services. a) functional b) divisional c) team d) network e) matrix Answer: d Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 142) A network structure helps lower costs and improves flexibility in dealing with changing environments because Test Bank

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a) it brings members from different functional departments together. b) the central core is relatively small, and the surrounding networks can be expanded or shrunk as needed. c) the central core consists of temporary employees and focuses on cross-functional teams to improve lateral relations. d) it has vertical levels of management and hierarchical levels of authority. e) the central core is relatively big, and that provides the advantage of economies of scale. Answer: b Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 143) Which of the following is true about a network structure? a) A network structure does everything for itself with full-time employees. b) It consists of networks that are composed of full-time employees. c) Groups jobs and activities that are part of the same processes. d) It consists of a relatively small central core that results in an increase in costs. e) They employ a minimum staff and contracts out as much work as possible. Answer: e Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 144) Which of the following is an advantage of network structures? a) Companies can operate with fewer full-time employees and less complex internal systems. b) Companies can reduce overhead costs and increase operating efficiency. c) Companies can operate across great distances. d) All of the above are potential advantages of a network structure. e) None of the above is a potential advantage of a network structure. Test Bank

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Answer: d Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 145) The potential disadvantages of the network structure are due primarily to the demands of ___. a) being flexible in responding to changing conditions b) having fewer full-time employees to help supervisor’s managerial empire c) having new management responsibilities d) operating across great distance e) trying to reduce overhead through expanded relationships Answer: c Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 146) Which one of the following is not a potential disadvantage of network structures? a) Control and coordination problems may arise from network complexity. b) Permits operations across great distances. c) Potential loss of control over outsourced activities. d) The more complex the business or mission, the more complicated the network. e) The potential for lack of loyalty to develop among infrequently used contractors. Answer: b Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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147) Traves Inc., a transcription services company, manages all its core processes with a small team of highly skilled employees. However, it outsources five of its processes to contractors. This helps the company to lower its costs and have a high degree of flexibility. In this context, Traves Inc. is using a(n) ___ structure to carry out its functions. a) matrix b) bureaucratic c) network d) geographical e) product Answer: c Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Application Difficulty: Medium AACSB: Analytic 148) A strategic alliance is a(n) a) contract that brings together members from different functional departments in an organization. b) cooperation agreement with another organization to jointly pursue activities of mutual interest. c) organizational structure that combines the functional and divisional structures. d) setup that eliminates internal boundaries among subsystems and external boundaries with the external environment. e) arrangement that emphasizes formal authority, order, fairness, and efficiency. Answer: b Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 149) Yummy Inc., a fast food corporation, entered into an agreement with Garnish Inc., a Test Bank

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company that manufactures cheese, mayonnaise, and other toppings. Yummy Inc. exclusively uses the toppings produced by Garnish Inc. This business agreement has resulted in benefits for both the companies. This is an example of a ___. a) boundaryless organization b) joint venture c) cross-functional team d) cooperative structure e) strategic alliance Answer: e Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Application Difficulty: Medium AACSB: Analytic 150) Zack Books Ltd., an international library headquartered in Alberta, has many branches across different countries. It uses information technology to be in regular contact with its various outside suppliers of books and magazines. Which of the following organizational structures is being used by the library? a) Functional structure b) Network structure c) Divisional structure d) Team structure e) Matrix structure Answer: b Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Application Difficulty: Medium AACSB: Analytic 151) ___ organizations are those in which teamwork and intense communication take the place of formal lines of authority. a) Divisional b) Functional Test Bank

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c) Geographical d) Matrix e) Boundaryless Answer: e Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 152) A key assumption underlying ___ organizations is empowered people working together without bureaucratic restrictions can accomplish great things. a) divisional b) functional c) geographical d) boundaryless e) matrix Answer: d Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 153) Which of the following is true of a boundaryless organization? a) Internal to the boundaryless organization, formal lines of authority replace spontaneous teamwork and communication. b) A boundaryless organization does not encourage continuous meetings and information sharing. c) A boundaryless organization is characterized by significant hierarchy. d) Impermanence is not accepted in boundaryless organizations. e) In a boundaryless organization, people work together in teams that form and disband as needed. Answer: e Test Bank

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Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 154) A(n) ___ is a special form of a boundaryless organization. a) functional organization b) divisional organization c) virtual organization d) collaborative structure e) matrix structure Answer: c Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 155) Hipster Juices Co., well-known for its fruit juices with catchy names, has recently signed an agreement with Cozy Books Ltd. According to this agreement, Hipster Juices Co. has an outlet at each Cozy store. This agreement has led to an increase in profits for both the companies as sales of both have increased. This is an example of a ___. a) boundaryless organization b) joint venture c) cross-functional team d) strategic alliance e) cooperative structure Answer: d Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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156) Speak-Up, a cooperative group, meets every week to discuss its plans and actions for helping the community to learn more about organic farming. They form temporary teams based on tasks and actions. The size of the teams depends on the size of the tasks. In the context of team structures, Speak-Up group has the ___ structure. a) bureaucratic b) matrix c) closed d) boundaryless e) network Answer: d Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Application Difficulty: Medium AACSB: Analytic 157) A(n) ___ operates in a shifting network of external strategic alliances that are engaged as needed, and typically are supported by extensive information technology (IT) utilization. a) matrix organization b) collaborative organization c) functional organization d) divisional organization e) virtual organization Answer: e Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 158) A ___ uses IT and the Internet to engage a shifting network of strategic alliances. a) formal structure b) project team Test Bank

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c) virtual organization d) bureaucratic structure e) matrix organization Answer: c Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 159) Brandon Inc., a well-established electronics company, uses IT and the Internet to enter into business alliances with software firms spread across different nations to meet specific operating needs and objectives. Once the work is completed, the alliance rests until next called into action. Brandon Inc. is a ___. a) matrix organization b) project team c) virtual organization d) cross-functional team e) formal organization Answer: c Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Application Difficulty: Medium AACSB: Analytic 160) A(n) _________ organization is a form of boundaryless organizational structure. a) organic b) latent c) network d) cross-functional e) team Answer: b Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and Test Bank

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network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 161) An organizational design a) is the process of creating structures that accomplish mission and objectives. b) is a system of tasks, reporting relationships, and communication linkages. c) is a group of related tasks that collectively creates a valuable work product. d) identifies the informal structures and their embedded social relationships that are active in an organization. e) is a cooperation agreement with another organization to jointly pursue activities of mutual interest. Answer: a Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 162) The best organizational design is the one that a) emphasizes formal authority, order, fairness, and efficiency. b) is centralized, with many rules and procedures, a clear-cut division of labour, narrow spans of control, and formal coordination. c) emphasizes a vertical structure, hierarchy of authority, and promotion based on competency. d) achieves a good match between structure and situational contingencies. e) has narrow spans of control and structures of the pyramid form. Answer: d Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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163) Which of the following implies that an organizational design of the same kind does not apply in all circumstances? a) Every organization emphasizes formal authority, order, fairness, and efficiency. b) Every organization faces its own set of unique problems and opportunities. c) All organizations are not affected by situational contingencies such as task, technology, environment, and people. d) Every organization has narrow spans of control and structures of the traditional pyramid form. e) All organizations have sufficient resources to jointly pursue mutual interests with another organization. Answer: b Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 164) In a classic study conducted in the 1960s, Burns and Stalker ___. a) identified three basic organizational forms: bureaucratic, mechanistic, and organic b) developed conclusions that have been substantially refuted by later research c) revealed that bureaucratic structures thrived when the environment was uncertain and changing d) favoured organic over mechanistic forms e) concluded that different organizational structures could be successful, depending on the nature of the firm’s external environment Answer: e Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 165) Which of the following emphasizes formal authority, order, fairness, and efficiency? a) bureaucracy Test Bank

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b) boundaryless organization c) decentralization d) strategic business unit e) strategic alliance Answer: a Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 166) Which of the following is true of a bureaucracy? a) It is characterized by open divisions of labour. b) It encourages worker empowerment and teamwork. c) It is built on a foundation of trust that people will do the right things on their own initiative. d) It is a vertical structure with promotion based on competency. e) It performs well in environments that demand flexibility in dealing with changing conditions. Answer: d Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 167) Which of the following is true of a mechanistic design? a) It is a horizontal structure with decentralized authority. b) It is characterized by wide spans of control. c) It is characterized by a precise division of labour. d) It is typified by informal means of coordination. e) It is a design with very few rules and procedures. Answer: c Learning Objective 11.4: Discuss how and why organizational designs are changing in Test Bank

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today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 168) Mechanistic designs are ___organizational structures with a ___ form. a) loose; horizontal b) loose; vertical c) tight; horizontal d) tight; vertical e) open; network Answer: d Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 169) The staff at Grace Grocery Store is assigned specific tasks such as receiving supply, arranging stock, making sales, preparing cash registers, and so on. They perform the same task every day. The firm is characterized by formal means of coordination. Grace Grocery Store is functioning with a(n) ___ design. a) organic b) decentralized c) mechanistic d) adaptive e) boundaryless Answer: c Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Application Difficulty: Medium AACSB: Analytic

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170) As an “ideal organizational form,” bureaucracy is characterized by all of the following except a) a clear-cut division of labour. b) positions arranged in a strict hierarchy of authority. c) orderliness, fairness, and efficiency. d) a system of formal rules and procedures. e) promotions based on seniority. Answer: e Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 171) LST Inc. functions with systematic order and a hierarchical system of management. It is characterized by formal channels of communication. The employees of the firm are required to strictly abide by the formal rules of the company. LST Inc. is a(n) ___. a) adaptive organization b) bureaucracy c) decentralized organization d) boundaryless organization e) autocracy Answer: b Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Application Difficulty: Medium AACSB: Analytic 172) Adzen Inc., an advertising firm, has a horizontal structure with simple rules and procedures. It achieves targets by having personal means of coordination. The firm values the existence of informal groups and does not believe in division of labour. Which of the following designs is being used by Adzen Inc.? a) organic b) centralized Test Bank

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c) bureaucratic d) nonadaptive e) authoritative Answer: a Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Application Difficulty: Medium AACSB: Analytic 173) An organic design has all the following characteristics except a) decentralized authority. b) few rules and procedures. c) narrow spans of control. d) shared tasks. e) many teams and task forces. Answer: c Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 174) Which of the following is true of an organic design? a) It is a horizontal structure with decentralized authority. b) It has narrow spans of control. c) It has a vertical structure of authority. d) It is typified by many rules and procedures. e) It is characterized by very precise division of labour. Answer: a Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 175) Organic designs are ___ systems in which a considerable amount of work gets done through ___ structures and networks of interpersonal contacts. a) loose; formal b) loose; informal c) tight; formal d) tight; informal e) open; highly formal Answer: b Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 176) Organizations that operate with a minimum of bureaucratic features and encourage worker empowerment and teamwork are called ___. a) organic organizations b) networks c) new bureaucracies d) adaptive organizations e) mechanistic organizations Answer: d Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 177) A(n) ___ performs well in environments that demand flexibility in dealing with changing conditions. a) authoritative structure Test Bank

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b) centralized system c) mechanistic design d) adaptive organization e) bureaucratic structure Answer: d Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 178) Which of the following is true of adaptive organizations? a) They work with narrow spans of control and formal coordination. b) They operate with a distinguished feature of promotion based on competency. c) They are built on a foundation of trust that people will do the right things on their own initiative. d) They are characterized by vertical structures with a clear-cut division of labour and a hierarchy of authority. e) They work best for organizations doing routine tasks in stable environments. Answer: c Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 179) The employees of Astro Inc., a graphics design firm, are given the liberty to use their ideas and their personal skills to perform their tasks. The firm’s managers trust that all employees work efficiently without any supervision. The firm uses an organic design and works with informal structures. This implies that Astro Inc. is a(n) ___ organization. a) centralized b) adaptive c) bureaucratic d) strategic e) authoritative Test Bank

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Answer: b Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Application Difficulty: Medium AACSB: Analytic 180) ___ have features of ___, including decentralized authority, fewer rules and procedures, less division of labour, wider spans of control, and more personal means of coordination. a) Adaptive organizations; organic designs b) Bureaucratic organizations; organic designs c) Bureaucratic organizations; mechanistic designs d) Adaptive organizations; mechanistic designs e) Adaptive organizations; functional designs Answer: b Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 181) Which of the following is true of trends in organizational designs? a) The growth of new technologies for information systems and social media is reducing new possibilities for creativity. b) Managers are trying to minimize the rate of delegation of work as it incurs heavy expenditures. c) Delegation and horizontal structures are contributing to more centralization in organizations. d) The complexity and uncertainty are prompting more organizations to shift toward organic designs. e) Organizations are lowering costs and increasing efficiency by employing more staff personnel and using larger staff units. Answer: d Learning Objective 11.4: Discuss how and why organizational designs are changing in Test Bank

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today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 182) The chain of command a) is the number of subordinates directly reporting to a manager. b) links all persons with successively higher levels of authority. c) horizontally links all positions of an organization’s management. d) operates with a minimum of bureaucratic features. e) is the process of distributing and entrusting work to other persons. Answer: b Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 183) ___ refers to the number of subordinates directly reporting to a manager. a) Span of control b) Chain of command c) Delegation d) Empowerment e) Decentralization Answer: a Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 184) Which of the following statements about span of control is not accurate? a) When the span of control is narrow, relatively few people report directly to a given Test Bank

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manager. b) Early management theorists sought to determine the optimum span of control for any manager. c) There is a limit to the number of people one manager can effectively supervise. d) Narrow spans of control create an organization that is less efficient and less flexible. e) Wider spans of control usually result in additional management overhead costs. Answer: b Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 185) Which of the following is true of tall structures? a) They have inadequate levels of management. b) They are characterized by scarcity of employees. c) They reduce overhead costs. d) They are highly efficient and flexible. e) They have narrow spans of control. Answer: e Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 186) Oasis Inc. is an organization with a tall structure. Which of the following would be a characteristic of Oasis Inc.? a) Oasis Inc. would reduce the number of employees in its organization. b) The organization would have an inadequate number of managers. c) They would allow for wider spans of control. d) Oasis Inc. would incur high costs due to the existence of many managers. e) Oasis Inc. would be a highly efficient and customer-sensitive organization. Answer: d Test Bank

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Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Application Difficulty: Medium AACSB: Analytic 187) Which of the following is true of flat structures? a) They are inflexible. b) They help in reducing overhead costs. c) They have narrow spans of control. d) They tend to be very efficient due to the existence of many managers. e) They are not customer sensitive. Answer: b Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 188) Well-Adjusted Corporation functions with a flat structure. Which of the following would be a characteristic of Well-Adjusted Corporation? a) Well-Adjusted Corporation would be functioning with many managers. b) The organization would permit workers to make their own decisions. c) Well-Adjusted Corporation would tend to be more costly due to the existence of many levels of management. d) They would have a narrow span of control. e) Well-Adjusted Corporation would have a scarcity of employees. Answer: b Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Application Difficulty: Medium AACSB: Analytic

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189) The process of entrusting work to others by giving them the right to make decisions and take action is referred to as ___. a) adaption b) mechanization c) delegation d) bureaucratization e) centralization Answer: c Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 190) Which of the following holds true regarding delegation? a) Authority should equal responsibility when work is delegated from a supervisor to a subordinate. b) When a supervisor delegates a task, the subordinate should not be given authority regarding performance. c) When done well, empowerment leads to delegation. d) When work is delegated, authority of the subordinate should be higher than the responsibility given by the supervisor. e) Delegation is conducted in order to ensure that employees do not make their own decisions regarding performance of tasks. Answer: a Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 191) Which of the following is true regarding the process of delegation? a) The manager seldom gives the right to the employee to take necessary actions along with the assigned task. b) The responsibility given by the manager is an expectation for the employee to perform Test Bank

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assigned tasks. c) When an employee takes an assignment, they do not have an obligation to the manager to complete the job as agreed. d) In the process of delegation, a manager does not have the power to create accountability. e) A manager is allowed to provide the employee with responsibility without the authority to perform. Answer: b Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 192) Which of the following statements is not true regarding delegation? a) Failure to delegate may result from a manager’s lack of trust in others or his/her inflexibility regarding how things should be done. b) Effective delegation denies others the opportunity to fully utilize their talents on the job. c) Failure to delegate overloads the manager with work that could be done by others. d) Effective delegation leads to empowerment of workers. e) Effective delegation can increase employees’ job satisfaction and work performance. Answer: b Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 193) The ___ principle states: “authority should equal responsibility when work is delegated from a supervisor to a subordinate.” a) scalar b) span of control c) balance-of-command d) responsible management e) authority-and-responsibility Test Bank

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Answer: e Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 194) Which of the following is true of empowerment? a) Empowerment includes the concentration of authority for most decisions at the top level of an organization. b) It results when delegation enables people who are most capable of doing the work to make decisions. c) It is the line of authority that vertically links each position with successively higher levels of management. d) Empowerment assigns tasks and rules to employees with the intention of prohibiting employees from making their own decisions. e) It is a result of successful concentration of authority. Answer: b Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 195) Which of the following describes the purpose of empowering employees? a) It encourages employees to work as per the decisions made by the top-level managers. b) It vertically links each employee’s position with successively higher levels of management. c) Empowerment allows people at all levels to make more decisions that affect themselves and their work. d) Employees are able to work with strong hierarchical levels of authority. e) It encourages employees to use more formal means of coordination with many rules and procedures. Answer: c Test Bank

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Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 196) Crexons Inc. finds that there is too much bureaucracy in their organization resulting in lost efficiency opportunities, slower communication and higher than hoped for administrative costs. The company’s CEO realizes that in order to regain a competitive advantage and organizational sustainability the company must reorganize and first step towards that end would be to ___. a) create temporary matrix structures b) empower the employees to make their own decisions c) establish strict organizational policies d) create functional silos to make sure the functions have well-defined boundaries e) divide the organization based on processes Answer: b Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Application Difficulty: Medium AACSB: Analytic 197) Centralization refers to the a) concentration of authority for most decisions at the top level of an organization. b) dispersion of authority to make decisions throughout all organization levels. c) system that allows others to make decisions and exercise discretion in their work. d) process of creating wide spans of control and few hierarchical levels in organizations. e) process of entrusting work to others by giving them the right to make decisions and take action. Answer: a Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 198) When decision-making authority is concentrated at the top levels of an organization, the organization is said to be ___. a) vertically integrated b) decentralized c) centralized d) horizontally integrated e) control oriented Answer: c Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 199) In a highly centralized organization, one would expect to find ___. a) relatively flat structures b) functional forms of departmentalization c) a concentration of decision making with top management d) increased job autonomy e) less concern for the size of spans of control Answer: c Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 200) The dispersion of authority to make decisions throughout all organization levels is known as ___. a) span of control b) chain of command c) decentralization Test Bank

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d) bureaucracy e) centralization Answer: c Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 201) With respect to centralization and decentralization, the current trend is for organizations to ___. a) centralize both decision-making and control b) decentralize both decision-making and control c) decentralize decision making and centralize control d) centralize decision making and decentralize control e) de-emphasize the roles of centralization and decentralization in decision making and control Answer: c Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 202) Which of the following is true with regard to centralization and decentralization? a) Organizations cannot operate with decentralization without giving up centralized control. b) Advances in information technology help top managers maintain centralized control. c) Empowerment and horizontal structures are contributing to more centralization in organizations. d) Organizations with organic designs are highly centralized. e) Organizations with mechanistic designs are highly decentralized. Answer: b Learning Objective 11.4: Discuss how and why organizational designs are changing in Test Bank

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today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 203) At Sync-Up Information Solutions, a software solutions company, most processes are determined by the few active partners of the business. Which of the following does this example illustrate? a) centralization b) empowerment c) divestiture d) vertical integration e) delegation Answer: a Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Application Difficulty: Medium AACSB: Analytic 204) At Goode Bank, all operational decisions regarding promotional measures, customer accounts packages and incentives, interest rates, loan application approvals are made only by the upper management. Should a staff member, regardless of their position or how long they have worked at Goode Bank have any questions about any of these matters they must be taken to upper management. And should a staff member, again regardless of their position or length of service make a unilateral decision, regardless of the scope, without upper management approval they are subject to some form of reprimand. This implies that Goode Bank has a(n) ___. a) decentralized system b) centralized system c) boundaryless structure d) informal structure e) organic design Answer: b Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Test Bank

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Section Reference 11.4: Organizational Designs Bloom’s: Application Difficulty: Medium AACSB: Analytic 205) Remy, the CEO of Roll-On Pens, finds that vertical hierarchy exists in the organization. Remy would like to reduce the stress on this hierarchical structure and give more decision-making ability to the employees. In the context of tall and flat organizations, Remy is trying to create a(n) ___ organization. a) bureaucratic b) decentralized c) informal d) matrix e) adaptive Answer: b Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Application Difficulty: Medium AACSB: Analytic 206) Franklin Inc. encourages its employees at all levels to provide ideas, opinions, and critiques during decision-making process. This indicates that the firm has a(n) ___. a) decentralized system b) centralized system c) bureaucratic structure d) formal structure e) mechanistic design Answer: a Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Application Difficulty: Medium AACSB: Analytic

Test Bank

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207) Which of the following is true with regard to use of staff positions? a) Organizations can lower costs and increase efficiency by employing fewer staff personnel. b) When organizations have smaller staff units, they tend to incur high expenditures. c) Line personnel provide expert advice and guidance to people in staff positions. d) Organizations can create a central core of full-time staff personnel to improve efficiency. e) Organizations should focus on employing more staff personnel to increase efficiency. Answer: a Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 208) Employees who perform a technical service or provide special problem-solving expertise for other parts of the organization are called ___. a) personal staff b) functional staff c) vice presidential staff d) specialized staff e) chief executive staff Answer: d Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 209) Which of the following statements does not accurately describe a challenge associated with the use of staff? a) Because of cost considerations, cutting back on staff is a common first choice in downsizing and other turnaround efforts. b) Staff with advisory authority can suggest rather than dictate. c) Staff with functional authority can require that others do as requested within the Test Bank

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boundaries of staff expertise. d) There is one best way to divide work between line and staff responsibilities. e) Staff can grow to the point where it costs more in administrative overhead than the staff is worth. Answer: d Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Application Difficulty: Medium AACSB: Analytic 210) The current trend in the use of staff is to ___. a) reduce the size of staff in order to increase operating efficiency b) maximize the size of staff in order to increase operating effectiveness c) maximize the size of staff in order to help create a full-employment economy d) completely eliminate staff positions e) change the staff size in proportion to changes in sales Answer: a Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Question type: Essay 211) What is the organizing function? How does it relate to the other management functions? Answer: Organizing is the process of arranging people and other resources to work together to accomplish a goal. Organizing follows the planning function and precedes the leading and controlling functions. Planning gives direction to the organization by providing a clear mission, core values, objectives, and strategy. In short, planning results in strategy formulation. Organizing begins the process of strategy implementation by dividing up the work, arranging resources, and coordinating activities. Leading and controlling continue with the process of strategy implementation. Test Bank

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Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 212) An organization chart depicts the reporting relationships and work positions within an organization. Ideally an organization chart will also provide a picture of how an organization is supposed to work with respect to five (5) major areas. List and describe these five areas and include in your answer an example organization chart with at least five levels from President/CEO at the top working down to an employee level. Your chart should include labels related to the five areas noted earlier? Answer: The five areas are: • Division of work—Positions and titles show work responsibilities. • Supervisory relationships—Lines show who reports to whom. • Communication channels—Lines show formal communication flows. • Major subunits—Positions reporting to a common manager are shown. • Levels of management—Vertical layers of management are shown. Student organization charts will vary, however there should be a clear link to at least some line of supervision and communication. Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Synthesis Difficulty: Hard AACSB: Analytic 213) What is a social network analysis and why is it, in many ways, essential to organizational success in today’s global and technological environment? Answer: Social network analysis is one way of identifying informal structures and their embedded social relationships. Such an analysis typically asks people to identify others whom they turn to for help most often, and with whom they communicate regularly, and who energize and de-energize them. Social networks are then drawn with lines running from person to person according to frequency and type of relationship maintained. The result is an organizational map that shows how a lot of work really gets done in organizations, in contrast to the formal arrangements depicted on organization charts. This information is useful for redesigning the formal structure for better performance, and it also legitimates the informal networks people use in their daily work. Informal Test Bank

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structures and social networks are in many ways essential to organizational success. This is especially true during times of change, when out-of-date formal structures may fail to provide the support people need to deal with new or unusual situations. Because it takes time to change or modify formal structures, the informal structure helps fill the void. The emergent and spontaneous relationships of informal structures allow people to make contacts with others who can help them get things done. Informal learning also takes place as people work and interact together throughout the workday. And, informal structures are sources of emotional support and friendship that satisfy important social needs. Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 214) Explain the concepts of organization chart, formal structure, and informal structure. Why must a manager understand both the formal structure and the informal structure of an organization? Answer: An organization chart—which is a diagram identifying key positions and job titles within an organization, as well as lines of authority and communication—provides a representation of the organization’s formal structure. The formal structure is the organization’s official structure; it reflects the official pattern of relationships in an organization. The informal structure is a “shadow” organization made up of the unofficial, and often critical, working relationships among organizational members. By understanding the formal structure, a manager knows about the organization’s division of work, supervisory relationships, communication channels, major subunits, and levels of management. This knowledge indicates how the organization is supposed to work. However, an organization does not always operate according to the dictates of the formal structure. Knowledge of the informal structure is needed as well since the informal structure supplements rather than replaces the formal structure. Learning Objective 11.1: Explain organizing as a management function and contrast formal and informal organization structures. Section Reference 11.1: Organizing as a Management Function Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Solution: 215) What are the advantages of matrix structures? Test Bank

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Answer: The advantages of matrix structures include: Better communication and cooperation across functions. Improved decision making; problem solving takes place at the team level where the best information is available. Increased flexibility in adding, removing, or changing operations to meet changing demands. Better customer service; there is always a program, product, or project manager informed and available to answer questions. Better performance accountability through the program, product, or project managers. Improved strategic management; top managers are freed from lower-level problem solving to focus time on more strategic issues. Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 216) Briefly describe the functional, divisional, and matrix types of organizational structure. For each structure type, provide an example of an organization that follows that structure model. What are the advantages and disadvantages of each type of organizational structure? Answer: Functional structures occur when people with similar skills and performing similar tasks are grouped together. An example is a hospital or a school. Potential advantages of functional structures include the following: economies of scale with efficient use of resources; task assignments consistent with expertise and training; highquality technical problem solving; in-depth training and skill development within functions; and clear career paths within functions. Potential disadvantages of functional structures include: the functional chimneys problem; development of self-centered and narrow viewpoints, which tend to break down the sense of cooperation and common purpose; too many decisions being referred upward in the hierarchy; and difficulties in pinpointing responsibilities for cost containment, product or service quality, timeliness, and innovation in response to environmental changes. Divisional structures group together people who work on the same product or process, serve similar customers, or are located in the same area or geographic region. An example Toyota (as provided in the text). Potential advantages of divisional structures include: more flexibility in responding to environmental changes; improved coordination across functional departments; clear points of responsibility for product or service delivery; expertise focused on specific customers, products, and regions; and greater ease in changing size by adding or deleting divisions. Potential disadvantages of divisional structures include: duplication of resources and efforts across divisions, competition and poor coordination across divisions, and emphasis on divisional goals at the expense of Test Bank

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organizational goals. A matrix structure combines elements of both the functional and divisional structures in an attempt to gain the advantages and minimize the disadvantages of each. Examples include the aerospace industry when a new exploration project is undertaken. Potential advantages of matrix structures include: more interfunctional cooperation in operations; increased flexibility in meeting changing demands; better customer service championed by project managers; better performance accountability through project managers; improved problem solving taking place at the team level, where the best information is available; and improved strategic management as top managers are freed to focus on strategic issues. Potential disadvantages of matrix structures include the following: the two-boss system can result in power struggles as functional supervisors and team leaders compete with each other to exercise authority; the two-boss system can create task confusion and conflict in work priorities; teams may develop “groupitis” –– strong team loyalties that cause a loss of focus on larger organizational goals; and costs may increase due to adding team leaders to the structure. Learning Objective 11.2: Identify the strengths and weaknesses of traditional organizational structures. Section Reference 11.2: Traditional Organization Structures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 217) List and briefly describe the advantages and disadvantages of network structures? Answer: The advantages of network structures include: network structures are lean and streamlined. They help organizations stay cost competitive by reducing overhead and increasing operating efficiency. Network concepts allow organizations to employ outsourcing strategies and contract out specialized business functions. Within the operating core of a network structure, furthermore, interesting jobs are created for those who coordinate the entire system of relationships. The potential disadvantages of network structures lie largely with the demands of new management responsibilities. The more complex the business or mission of the organization, the more complicated it is to control and coordinate the network of contracts and alliances. If one part of the network breaks down or fails to deliver, the entire system suffers. In addition, there is the potential to lose control over activities contracted out and to experience a lack of loyalty among contractors who are used infrequently rather than on a long-term basis. Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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218) Briefly discuss the nature of team structures, network structures, and boundaryless organizations. Why are these new structural forms becoming popular? Answer: Team structures formally designate and use permanent and temporary teams to accomplish tasks. Team structures often use cross-functional teams that are composed of members from different areas of functional work responsibility. A network structure consists of a central organizational core that is linked through networks of relationships with contractors and outside suppliers of essential services. Network structures use communications and information technology to support a shifting variety of strategic alliances and strategic contracts that sustain operations. Boundaryless organizations eliminate internal boundaries linking component parts and external boundaries linking with the external environment. In the internal context, teamwork and communication replace formal lines of authority. In the external context, organizational needs are met through a shifting mix of outsourcing contracts and operating alliances that form and disband with changing circumstances. These structural forms are becoming popular responses to the increasing pressures created by the global economy and hypercompetition. To respond to these pressures, organizations are relying on horizontal structures - such as team structures, network structures, and boundaryless organizations - that promote integration and utilize crossfunctional teamwork. Learning Objective 11.3: Identify the strengths and weaknesses of team, virtual, and network structures. Section Reference 11.3: Team and Network Organization Structures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 219) Identify the different organizing trends in the modern workplace and explain how these trends will affect the operations of contemporary organizations. Answer: The text identifies four organizing trends that are affecting contemporary organizations. These trends are the following: Fewer levels of Management Chains of command - organizations are being “streamlined” by cutting unnecessary levels of management; flatter and more horizontal structures are viewed as a competitive advantage. When organizations grow in size, they tend to get taller as more and more levels of management are added to the chain of command. Span of control - many organizations are shifting to wider spans of control as levels of management are eliminated and subordinates operate with less direct supervision. More delegation and empowerment - managers are delegating more so that people at all levels are empowered to make decisions about their work. Decentralization with centralization - whereas empowerment and related forces are Test Bank

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contributing to more decentralized decision making in organizations, advances in information technology simultaneously allow for the retention of centralized control. Reduced use of staff - organizations are trying to reduce the use of staff in order to improve operating efficiency. All six organizing trends have similar effects on the operations of contemporary organizations. Specifically, the organizing trends share a common theme of making the adjustments needed to streamline operations for cost efficiency, higher performance, and increased worker participation. Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 220) List and describe the steps involved in the process of delegation. Answer: In the first step, the manager assigns responsibility by carefully explaining the work or duties someone else is expected to do. This responsibility is an expectation for the other person to perform assigned tasks. In the second step, the manager grants authority to act. Along with the assigned task, the right to take necessary actions (for example, to spend money, direct the work of others, or use resources) is given to the other person. In the third step, the manager creates accountability. By accepting an assignment, the person takes on a direct obligation to the manager to complete the job as agreed. Learning Objective 11.4: Discuss how and why organizational designs are changing in today’s workplace. Section Reference 11.4: Organizational Designs Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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CHAPTER 12 ORGANIZATION CULTURE AND CHANGE Question type: True/False 1) Organizational culture is the system of shared beliefs and values that develops within an organization and guides the behaviour of its members. Answer: True Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 2) Organizational culture is what you see and hear when walking around an organization as a visitor, a customer, or an employee. Answer: True Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 3) Organizational performance and effectiveness are not related to organizational culture. Answer: False Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Test Bank

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4) Corporate culture and organizational culture are two entirely different phenomena. Answer: False Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 5) The culture of an organization has the potential to shape attitudes and reinforce common beliefs however it does not direct behaviour nor establish performance expectations and the motivation to fulfill them. Answer: False Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 6) Based on the competing values framework, the four culture types are Rational, Centralized, Team and Entrepreneurial. Answer: False Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 7) Enterprising cultures emphasize collaboration and trust according to LeadershipIQ’s description of common organizational cultures. Answer: False Learning Objective 12.1: Explain organizational culture and its influence on behaviour in

organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 8) An entrepreneurial culture demonstrates shared authority, collaboration and emphasis on mutual support. Answer: False Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 9) A strong corporate culture helps an organization ensure market domination and strong profits. Answer: False Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 10) The best organizations with strong cultures will likely be performance orientated, encourage teamwork, risk taking, and innovation, and make the well-being of people a top management priority. Answer: True Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

11) Socialization is the process through which new members learn the culture of an organization. Answer: True Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 12) Collaboration is the process of helping new members learn the cultures and values of the organization. Answer: False Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 13) Organizational culture is usually described from the perspective of two levels—the external level and the internal level. Answer: False Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 14) An organization’s observable culture is visible and readily apparent at every level of the organization. Answer: True Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures

Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 15) The observable culture and the core culture represent two levels of organizational culture. Answer: True Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 16) Elements of the observable culture include stories, heroes, rites and rituals, and symbols. Answer: True Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 17) Elements of the observable culture include strategy, performance, structure, and worker involvement. Answer: False Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 18) Heroes are the people who are singled out for special attention in an organization’s observable culture. Answer: True

Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 19) As part of the observable culture of an organization, norms are the ceremonies and meetings that celebrate important occasions and performance accomplishments. Answer: False Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 20) Avery recently began work at Spich Enterprises and was recently invited to join a group of colleagues for a coffee in the employee’s café. During the break Avery’s colleagues explained how the company had recently redesigned a process that ended up saving the company a great deal of time and money, and how the employees were treated to a gourmet lunch in the conference room. This is an example of an observable culture. Answer: True Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Application Difficulty: Medium AACSB: Analytic 21) Core values are beliefs and values shared by organization members. Answer: True Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge

Difficulty: Easy AACSB: Analytic 22) An organization’s core values are underlying assumptions and beliefs that influence the behaviour of organization members and actually contribute to elements of the observable culture. Answer: True Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 23) Highly successful companies typically focus on the core values of performance excellence, innovation, social responsibility, integrity, worker involvement, customer service, and teamwork. Answer: True Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 24) In strong cultures, the core values are constantly changing in order to adapt to changes within the organization and in the external environment. Answer: False Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 25) Value-based management refers to managers who actively help develop, communicate, and enact shared values within an organization.

Answer: True Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 26) All managers and team leaders working at any level of the organization are responsible for value-based management. Answer: True Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 27) Value-based management will succeed when the core values support key performance objectives and provide clear, consistent ethical anchors, even though the values are not clearly understood nor accepted by everyone. Answer: False Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 28) Avery recently began work at Spich Enterprises and was recently invited to join a group of colleagues for a coffee in the employee’s café. During the break Avery’s colleagues explained how the company’s top management team strongly believe and follow in value-based management for the company. They then went on to explain that department managers were not required nor encouraged to apply the techniques of this management style. Avery felt that this contradicted the spirit of value-based management and concluded that the employees were incorrect. Is Avery correct (True) or incorrect (False)? Answer: False

Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Application Difficulty: Medium AACSB: Analytic 29) Leaders at every level need to promote core values and take responsibility for supporting individual and group performance objectives. Answer: True Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 30) Workplace spirituality refers to inclusiveness, pluralism, and respect for diversity in the workplace. Answer: False Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 31) The core value of workplace spirituality is respect for human beings. Answer: True Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

32) Multiculturalism refers to inclusivity, pluralism, and the respect for diversity in the workplace. Answer: True Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 33) According to R. Roosevelt Thomas, increased diversity reduces both organizational complexity and uncertainty. Answer: False Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 34) According to Thomas Kochan, increased diversity does not automatically create competitive advantage or result in higher levels of performance. Answer: True Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 35) Race and gender are the only diversity dimensions that are relevant to the workplace. Answer: False Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

36) The advantages of diversity are gained only when diversity is leveraged through training and supportive human resource practices. Answer: True Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 37) Since people come from different ethnic and social backgrounds, there is no relationship between diversity and organizational culture. Answer: False Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 38) In the context of organizational culture, inclusivity refers to the degree to which the organization is open to anyone who can perform a job, regardless of his or her race, sexual preference, gender, or other diversity attribute. Answer: True Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 39) Socialism is the belief that one’s membership group or subculture is superior to all others. Answer: False Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge

Difficulty: Easy AACSB: Analytic 40) Ethnocentrism can creep into organizations and adversely affect the way people relate to one another. Answer: True Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 41) Generational subcultures reflect gaps that exist between people who grew up and are growing up during different periods of history, and whose values have thus evolved under different influences. Answer: True Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 42) Gender subcultures reflect differences in the values and beliefs of women and men. Answer: True Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 43) Dakota, a marketing manager at Ralens Inc., is criticized for being “too lenient” when interacting with women and “too harsh” when communicating with men. This situation best exemplifies the existence of the double-bind dilemma. Answer: True

Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Application Difficulty: Hard AACSB: Analytic 44) Occupational and functional subcultures are formed among people who work together and have roots in the same cultural community, country, or region of the world. Answer: False Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 45) Occupational subcultures refer to people who develop strong identities with their work groups and specific areas of task responsibilities. Answer: True Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 46) Ethnic or national subcultures are formed among persons who share the same skills and work responsibilities. Answer: False Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 47) Minority members often face special economic and work challenges, and these challenges are not always highly visible as more workforce diversity is likely to exist at the upper-most levels of most organizations than at lower and middle levels.

Answer: True Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 48) Diversity describes differences among people at work. Answer: True Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 49) The glass ceiling refers to a hidden barrier in some organizations that limits the advancement of women and members of other marginalized groups. Answer: True Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 50) In the context of the leaking pipeline problem, decisions of high-performing women to drop out of upward-tracking career paths are not always based on outright gender prejudice. Answer: True Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 51) The leaking pipeline problem gives an advantage to advancement by women and minorities

in organizations. Answer: False Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 52) The daily work challenges that can be faced by minority subcultures in organizations include misunderstandings, lack of sensitivity, sexual harassment, pay discrimination, and job discrimination. Answer: True Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 53) Sexual harassment and pay discrimination are just two of the challenges often faced by majority groups in an organization. Answer: False Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 54) In the current Canadian corporate world, women typically make at least 13.0% less income than mean and in the top 100 Canadian companies hold 8.5% of the highest-paid positions.. Answer: True Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic

55) Biculturalism occurs when members of minority cultures display majority culture characteristics that seem to be necessary for success in the workplace. Answer: True Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 56) The three approaches to diversity in the workplace, as described by R. Roosevelt Thomas are Employment equity, valuing differences and managing diversity. Answer: True Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloomcode: Knowledge Difficulty: Easy AACSB: Diversity 57) One of the three approaches to diversity in the workplace, as described by R. Roosevelt Thomas is managing diversity which is where an organization will build quality relationships with respect for diversity. Answer: False Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloomcode: Knowledge Difficulty: Easy AACSB: Diversity 58) Employment equity is a leadership approach in which leaders commit to changing the organizational culture to empower and include all people. Answer: False Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity

Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 59) High involvement management is the process of building an organizational culture that allows all members, minorities and women included, to reach their full potential. Answer: False Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 60) One of BioTech Ltd.’s core values is to employ older, disabled, and/or minority group members whenever possible. If two equally capable candidates apply for a position and one of the candidates falls into one of these categories BioTech will invariably hire the candidate from that group. BioTech wants to create a workplace environment that enables all employees, both current and potential, to reach their full potential. BioTech Ltd. is displaying behaviour consistent with managing diversity. Answer: True Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 61) Managing diversity is an approach where leadership commits the organization to education and training programs designed to help people better understand and respect individual differences. Answer: False Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

62) The basic building block of a diversity mature organization is the absence of a glass ceiling. Answer: False Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 63) Valuing diversity, managing diversity, and educational equity are three leadership approaches to diversity. Of these three approaches, managing diversity is the one that is integrated into the overall organizational mission. Answer: False Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 64) A change leader is a change agent who takes leadership responsibility for changing the existing pattern of behaviour of another person or social system. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 65) A status quo leader is a change leader who is forward-looking, proactive, supportive of new ideas, and open to criticism. Answer: False Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge

Difficulty: Easy AACSB: Analytic 66) Change leaders are willing to take risks; status quo managers are troubled by uncertainty. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 67) Status-quo leaders will result in organizations where creativity is inhibited and even discouraged, there is little opportunity to advance in one’s career or to take on new and challenging projects or roles, and where employees are fearful of expressing ideas or providing constructive criticisms. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 68) Top-down change occurs when senior managers initiate changes with the goal of having a comprehensive impact on the organization and its performance capabilities. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 69) Research has shown that 30-40% of Canadian firms that implement large-scale change within their organizations will succeed.

Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 70) The most common reason for top-down change failure is poor implementation. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 71) Bottom-up change tries to tap into ideas and initiative at lower organizational levels and lets them percolate upward. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 72) Bottom-up change occurs when the initiatives for change come from any and all parts of the organization, not just top management. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

73) Bottom-up change initiatives are necessary to build institutional capability for sustainable change and organizational learning. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 74) The most successful and enduring change leadership is that which can harness the advantages of both top-down and bottom-up change. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 75) Transformational change is usually led from the bottom. Answer: False Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 76) The goal of incremental change is to keep the organization moving forward with continuous improvements to processes, products and work systems. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change

found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 77) Transformational change is a type of planned change that results in a major and comprehensive redirection of the organization. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 78) Planned change takes steps to best align the organization with anticipated future challenges. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 79) Planned change has a better chance of success when people are used to doing things the traditional way. Answer: False Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 80) Reactive change is a type of planned change that bends and nudges existing systems and

practices to better align them with emerging problems and opportunities. Answer: False Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 81) The phases of Kurt Lewin’s model for planned change are unfreezing, changing, refreezing and improvising. Answer: False Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 82) Unfreezing is the change phase in which a situation is prepared for change and felt needs for change are developed. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 83) The “changing phase” is the first phase in Lewin’s model for planned change. Answer: False Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge

Difficulty: Easy AACSB: Analytic 84) Changing, the second phase of Lewin’s planned organizational change model, can be implemented by identifying new, more effective ways of behaving; choosing appropriate changes in tasks, people, culture, technology, and/or structure; and taking action to put changes in tasks, people, culture, technology, and/or structure into place. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 85) The organizational targets for change include tasks, people, structure, technology, and culture. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 86) Refreezing is the phase of stabilizing the change and creating the conditions for its long-term continuity. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 87) People may not want to change even when conditions require it; consequently, managers and

change agents need to deal with people’s tendencies to resist change. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 88) Kurt Lewin’s model for planned change depicts change as a non-linear, dynamic process. Answer: False Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 89) The owner of Makers & Bakers Ltd. has purchased a new kneading machine. To ensure that the new machine is effective, the continually gathers feedback from the employees and makes relevant changes by customizing the machines based on their feedback. This is an example of an improvisational change. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Application Difficulty: Medium AACSB: Analytic 90) A force-coercion strategy for change involves the use of formal authority and/or rewards or punishments. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations.

Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 91) The two force-coercion strategies are political manoeuvring and indirect forcing. Answer: False Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 92) Spiel Industries manufactures vintage board games for global customers. With the recent COVID-19 pandemic online sales quadrupled in the space of a month and management realized that their current manufacturing process would not be able to keep up with demand for very long. The process, techniques and equipment currently in use have not changed since the early 70s and needs to be changed. Upper management determined that the best change strategy for this planned change is a shared power strategy. Answer: False Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Application Difficulty: Medium AACSB: Analytic 93) Political maneuvering is a version of the force-coercion change strategy that is used when the change agent takes direct and unilateral action to command that change occurs. Answer: False Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

94) A manager who uses a rational persuasion change strategy relies on special knowledge, empirical data, and rational argument to bring about change. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 95) Change agents who use the rational persuasion change strategy believe that people are guided by reason in their actions and decision making, and use information and facts to communicate the desirability of change. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 96) Change agents who use the rational persuasion change strategy believe they do not need to convince others of the cost-benefit value of the change, since it appears reasonably obvious. Answer: False Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 97) Change agents who rely on a shared power strategy believe that people behave as they do because of socio-cultural norms and commitments to others’ expectations, and are sensitive to the way group pressures can support or inhibit change.

Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 98) The key benefit of a shared power change strategy is release and sharing of creativity, experience and energy. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 99) The nudge theory aids management in understanding what can influence decision making. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 100) Resistance to change can be viewed as feedback that an informed change agent can use constructively to modify a planned change to better fit situational needs and goals. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

101) Resistance to change should be stopped as quickly as possible before it destroys the planned changed effort. Answer: False Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 102) A manager who uses participation and involvement in order to overcome employee resistance to change will allow others to contribute ideas and help design and implement the change. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 103) When people resist change, they are most often defending something important that appears threatened. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 104) The presence of resistance to change usually means that nothing can be done to achieve a better “fit” among the planned change, the situation, and the people involved. Answer: False

Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 105) People will resist planned change due to fear of the unknown, loss of confidence, loss of control, and/or loss of face; and not because of poor timing, work overload, or disrupted habits. Answer: False Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 106) Technological change may best be approached as an ongoing process that will inevitably require improvisation as things are being implemented. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 107) In implementing new technology, the change agent should continually gather and process information relating to the change, and improvise and review the implementation process and the new technology to meet the needs of the local situation. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Analysis Difficulty: Medium

AACSB: Analytic 108) Two of the least risky and most desirable approaches to resistance are manipulation and cooptation and explicit and implicit coercion because they have no negative consequences. Answer: False Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 109) The facilitation and agreement approach for overcoming resistance to change involves providing encouragement and training, actively listening to problems, and helping resistors to deal with performance pressures. Answer: False Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 110) One of the four basic resistance-to-change checkpoints is to check participation. Answer: False Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 111) Good advice for an organizational resistance to change would be to: check the benefits, check the compatibility, check the simplicity, and to check the “tryability” of the change. Answer: True

Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 112) Education and communication are positive ways to deal with resistance to change that uses discussions, presentations, and demonstrations to educate people beforehand about a change. Answer: True Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Question type: Multiple Choice 113) The system of shared beliefs and values that develops within an organization and guides the behaviour of its members is called ___. a) organizational culture b) corporate behavioural guidelines c) corporate climate d) systemic culture e) social culture Answer: a Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 114) Blair has been working at Drazer Inc., a consulting firm, for two days now. Over these two days Blair has told by one of his colleagues about the different dos and don’ts of the

organization, their values and beliefs, and the way people communicate and form groups. This information gives Blair an insight into the a) turnover rate in the organization. b) level of employee satisfaction in the organization. c) culture of the organization. d) degree of collectivism in the organization. e) profile of his job at the organization. Answer: c Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Application Difficulty: Medium AACSB: Analytic 115) Morgan is new to the Onyx Organization and still learning much about the organization and its policies and procedures. During a recent meeting with the accounting department supervisor, Morgan asked why accounting procedures are not modified to reflect more modern practices. The supervisor replied with, “That is the way we do things here.” The supervisor’s comment is an example of ___. a) the supervisor’s motto b) the organizational culture c) the corporate mission d) a supervisor’s principle e) an outdated production manual Answer: b Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Application Difficulty: Medium AACSB: Analytic 116) The internal culture of an organization has the potential to ___. a) shape attitudes and reinforce common beliefs b) encourage positive work behaviour c) establish performance expectations and the motivation to fulfill them

d) all of the above e) none of the above Answer: d Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 117) Which of the following is not one of the questions that can help one to determine an organization’s culture? a) How tight or loose is the structure? b) Do most decisions reflect change or the status quo? c) What outcomes or results are most highly valued? d) What are the policies and procedures of the organization? e) Is the competitive style internal or external? Answer: d Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 118) Which of the following is not one of the four types of organization culture? a) Team b) Rational c) Hierarchical d) Group e) Entrepreneurial Answer: d Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge

Difficulty: Easy AACSB: Analytic 119) Lexiren Inc. follows an organizational culture where new leaders are given the opportunity to present their ideas. The company follows a flexible organizational structure where creativity, growth, and change are valued. In the context of organizational cultures, which of the following cultures is reflected in the given scenario? a) team culture b) hierarchical culture c) entrepreneurial culture d) rational culture e) autocratic culture Answer: c Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Application Difficulty: Medium AACSB: Analytic 120) Morgan is new to the Onyx Organization and still learning much about the organization and its policies and procedures. During a recent meeting with the different department supervisors and employees, Morgan noted that everyone was encouraged to present their ideas and to build upon those ideas. No idea was ever turned away or spoken negatively of. If a new idea was to be adopted, then the individual or group that presented the idea was given the responsibility to develop and grow the idea. Based on this information, Onyz Organization demonstrates which of the following organizational cultures? a) Team b) Entrepreneurial c) Hierarchical d) Rational e) Dependable Answer: a Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Application Difficulty: Medium

AACSB: Analytic 121) The process through which new members learn the culture of an organization is called a) employee relationship management. b) orientation. c) socialization. d) organizational culture. e) acculturation. Answer: c Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 122) The two levels of culture in organizations are ___. a) strategic and operational b) functional and dysfunctional c) observable and core d) core and environmental e) rites and rituals Answer: c Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 123) Which of the following aspects is part of the core culture of an organization? a) symbols b) rituals c) values d) policies and procedures e) stories

Answer: c Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 124) Which of the following aspects is not part of the observable culture of an organization? a) symbols b) rituals c) values d) heroes e) stories Answer: c Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 125) The _______ culture is what one sees and hears when walking around an organization as a visitor, a customer, or an employee. a) strong b) power c) core d) observable e) person Answer: d Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

126) The special use of language and other nonverbal expressions to communicate important aspects of corporate life are the ___ of observable organizational culture. a) norms b) stories c) heroes d) rites and rituals e) symbols Answer: e Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 127) The underlying assumptions and beliefs that shape and guide the behaviour of organization members and actually give rise to the different aspects of observable culture can be described as the ___. a) pre-observable culture b) human values c) core values d) rites of passage e) behavioural guidelines Answer: c Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 128) Which of the following scenarios gives us an insight into the observable culture of TZN Systems, a tech consulting firm? a) the requirement that all employees wear their id tags b) the reward and recognition given to the best employees on a monthly basis

c) the belief that hard work leads to favourable results d) the priority given to quality e) the expectation of integrity in all tasks Answer: b Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Application Difficulty: Medium AACSB: Analytic 129) Which of the following scenarios is an example of the observable culture of an organization? a) the prohibition of the use of camera phones in the office premises b) the hostility toward whistleblowers c) the rewarding of a team’s achievement by conducting a team outing d) the emphasis on deadlines e) the encouragement of innovation Answer: c Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Application Difficulty: Medium AACSB: Analytic 130) Adrian’s team has successfully completed one of the most important projects for the company and to recognize the long hours and the extra effort that Adrian’s team had put in, the organization gives them half a day off and organizes a team lunch. This is associated with which of the following organizational cultures? a) power culture b) core culture c) task culture d) observable culture e) role culture Answer: d

Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Application Difficulty: Medium AACSB: Analytic 131) Addison recently made the the greatest number of successful sales in a single day at Denrex Inc., a marketing company. Addison is considered the best salesperson at the company and is portrayed as a hero and a benchmark that others should reach. This gives an understanding of which of the following organizational cultures of the company? a) power culture b) core culture c) task culture d) observable culture e) role culture Answer: d Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Application Difficulty: Medium AACSB: Analytic 132) Avery, a new employee at SRV Inc., finds that the company encourages formal attire and manners of speech and that people are very organized in their approach to different tasks. Avery has also noted that all communication follows a strict hierarchy and protocol. In the given context, Avery is observing the ___ culture at the organization. a) observable b) core c) informal d) team e) horizontal Answer: a Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Application

Difficulty: Medium AACSB: Analytic 133) When Bailey started working for the company, colleagues would often talk about the achievements of Cassidy, an employee in the shipping department. Cassidy had, on many occasions, been named “Employee of the Month”. Which of the following components of the observable culture of Bailey’s organization is illustrated in this example? a) ceremonies b) legends c) symbols d) heroes e) metaphors Answer: d Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Application Difficulty: Medium AACSB: Analytic 134) At Ray’s Café, the owner and employees treat the customer with courtesy and respect. Should a customer have any complaints about the quality of the coffee or cakes, the owner addresses the issue to the customer’s satisfaction. This has ensured that Ray’s Café has become a very popular coffee shop. This represents Ray’s Café’s ___. a) power culture b) task culture c) core culture d) peripheral culture e) ceremonial culture Answer: c Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Application Difficulty: Medium AACSB: Analytic

135) An investment firm is reviewing the performance of a small corporation, noting its track record in product innovation, the quality of work life of employees, and the organization’s degree of involvement in environmental concerns. The investment firm seems to be interested in gathering information about which aspect of the company’s culture? a) profits b) core culture c) observable culture d) environmental concerns e) Displayed corporate culture Answer: b Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Application Difficulty: Medium AACSB: Analytic 136) Highly successful companies typically focus on which of the following core values? a) strategy, performance, structure, and worker involvement b) stories, symbols, heroes, and rites and rituals c) performance excellence, innovation, social responsibility, integrity, worker involvement, customer service, and teamwork d) symbols, stories, and strategies e) observable behaviour, management strategy, mission statement, and strategic objectives Answer: c Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Application Difficulty: Medium AACSB: Analytic 137) ___ refers to managers who actively help develop, communicate, and enact shared values within an organization. a) Normative guidance b) Value-based management c) Executive morality

d) Rules-based leadership e) Transactional leadership Answer: b Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 138) The responsibility for value-based management rests with ___. a) nonsupervisory personnel b) lower management c) middle managers d) top managers e) all managers and team leaders working at any level of the organization Answer: e Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 139) Value-based management a) improves the observable culture of an organization. b) increases an organization’s tolerance for ambiguity. c) communicates and enacts an organization’s core beliefs. d) suppresses the idea of innovation within the organization. e) emphasizes the rigidity of the organization’s regulations. Answer: c Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy

AACSB: Analytic 140) A _______ leader is one whose words and actions consistently demonstrate and communicate the organization’s core values. a) team b) symbolic c) change d) status-quo e) strong Answer: b Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 141) ___involves practices that create meaning and shred community among organizational members. a) Socialization b) Acculturation c) Core values d) Value-based management e) Workplace spirituality Answer: e Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 142) A sample of values in a spiritual organizational culture includes a) trust and respect. b) meaningful purpose. c) honesty.

d) ethics and social responsibility. e) all of the above Answer: e Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 143) Which of the following is based on the principle that people are inwardly enriched by meaningful work and a sense of personal connection with others inside and outside of the organization? a) ecological fallacy b) acculturation c) ethnocentrism d) power culture e) workplace spirituality Answer: e Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 144) Which of the following protects women, indigenous people, persons with disabilities or visible minorities from discriminatory hiring and employment decisions? a) Bill C-16 b) Canadian Human Rights Act c) Canadian Criminal Code d) Employment Equity Act e) Canada Labour Standards Regulations Answer: d Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations.

Section Reference 12.1: Organizational Cultures Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 145) According to R Roosevelt Thomas Jr., the way people are treated at work, with inclusion and respect, or with exclusion and disrespect is a direct reflection of a) value-based management. b) organizational culture. c) workplace spirituality. d) socialization. e) none of the above Answer: b Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 146) ___ refers to inclusivity, pluralism, and respect for diversity in the workplace. a) Cultural diversity b) Cultural management c) Multiculturalism d) A strong culture e) An ethical culture Answer: c Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 147) ___ display characteristics such as structural integration, informal network integration, and minimum intergroup conflict. a) Pluralistic organizations b) Structurally designed organizations

c) Conflict resolution companies d) Multicultural organizations e) Technologically advanced organizations Answer: d Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 148) Which of the following statements best describes a multicultural organization? a. One that is based on pluralism and operate with inclusivity and respect for diversity, thereby valuing the talents, ideas, and creative potential of all organization members. b. An organization that is characterized by an absence of prejudice and discrimination, and minimum intergroup conflict. c. One where the organizational culture communicates and supports core values that respect and empower the full diversity of its members. d. All answer statements are correct. e. None of the answer statements is correct. Answer: d Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 149) Kendall is applying for a position with a medium-sized, rapidly growing insurance company, and notices that there are several senior citizens and female managers of different racial backgrounds. They all seem to be very supportive of the other workers. Kendall concludes that this company must be a(n)___. a) dysfunctional place to work b) good organization for women c) minority-owned organization d) multicultural organization e) ethically sound organization Answer: d

Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 150) Which characteristic of multiculturalism implies that members of both minority cultures and majority cultures are influential in setting key values and policies? a) structural division b) pluralism c) integration d) absence of prejudice and discrimination e) minimum intergroup conflict Answer: b Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 151) ___ describe(s) differences among people at work. a) Workforce characteristics b) Differential attributes c) Diversity d) Personality dimensions e) Alternative characteristics Answer: c Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 152) The advantages of diversity are gained only when diversity is leveraged through ___ and ___. a) planning; controlling

b) training; supportive human resource practices c) training; organization development d) leading; supportive human resource practices e) teamwork; individual performance excellence Answer: b Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 153) In the context of multicultural organizations, structural integration implies that a) diversity does not lead to destructive conflicts between members of majority and minority cultures. b) a variety of training and task-force activities address the need to eliminate culture-group biases. c) members of both minority cultures and majority cultures are influential in setting key values and policies. d) various forms of mentoring and support groups assist in the career development of minorityculture members. e) minority-culture members are well represented in jobs at all levels and in all functional responsibilities. Answer: e Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 154) In multicultural organizations, informal network integration implies that a) diversity does not lead to destructive conflicts between members of majority and minority cultures. b) a variety of training and task-force activities address the need to eliminate culture-group biases. c) members of both minority cultures and majority cultures are influential in setting key values and policies. d) various forms of mentoring and support groups assist in the career development of minorityculture members.

e) minority-culture members are well represented in jobs at all levels and in all functional responsibilities. Answer: d Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 155) At the corporate office in Texas, expatriates have been assigned mentors who guide them on new projects. The mentors familiarize the expatriates with Canadian culture and ways of doing business. Which of the characteristics of multiculturalism is evident here? a) structural integration b) pluralistic differentiation c) informal network integration d) absence of prejudice and discrimination e) minimum intergroup conflict Answer: c Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 156) Kidz-Candies Inc. is famous for its candies with international flavours such as “Tuscanblue,” “straw-berry.” The company has experts from across the globe who develop new flavours from their country of origin. This has resulted in influence of various cultures on policies of the company. In the context of multicultural organizations, this is an example of ___. a) structural integration b) pluralism c) informal network integration d) ethnocentrism e) minimum intergroup conflict Answer: b Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity

Bloom’s: Application Difficulty: Medium AACSB: Analytic 157) Darelen Inc. has majority of workers from Spanish communities and a minority of workers from the Finnish community. The policies and values of the company are directly influenced by both cultures. In the context of characteristics of multicultural organizations, this is an example of ___. a) network integration b) structural diversity c) pluralism d) nepotism e) ethnocentrism Answer: c Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 158) In a multicultural organization, minimum intergroup conflict ensures that a) diversity does not lead to destructive conflicts between members of majority and minority cultures. b) a variety of training and task-force activities address the need to eliminate culture-group biases. c) various forms of mentoring and support groups assist in the career development of minorityculture members. d) minority-culture members are well represented in jobs at all levels and in all functional responsibilities. e) members of both minority cultures and majority cultures are influential in setting key values and policies. Answer: a Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

159) Which characteristic of multiculturalism implies that a variety of training and task-force activities address the need to eliminate culture-group biases? a) structural integration b) pluralistic differentiation c) informal network integration d) absence of prejudice and discrimination e) minimum intergroup conflict Answer: d Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 160) In the context of multicultural organizations, ___ are groups of people who share similar beliefs and values based on their work or personal characteristics. a) gender subcultures b) organizational subcultures c) core culture groups d) generational subcultures e) ethnocentric groups Answer: b Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 161) ___ are common to groups of people with similar values and beliefs based upon shared work responsibilities and personal characteristics. a) Self-managed teams b) Work teams c) Subcultures d) Social groups e) Separate cultures

Answer: c Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 162) Which of the following is true about ethnocentrism? a) It helps in bringing together people of various cultures. b) It forms among people who work together and share similar ages. c) It is the belief that one’s membership group or subculture is superior to all others. d) It forms among persons who work together and share the same gender identities. e) It refers to the belief that women cannot handle senior positions in organizations. Answer: c Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 163) ___ is the belief that one’s membership group or subculture is superior to all others. a) Pluralism b) Inclusivity c) The glass ceiling d) Multiculturalism e) Ethnocentrism Answer: e Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 164) The finance and accounting team members in a company, all of whom are of European descent believe that they are the most important contributors to the organization. Which of the following concepts is best illustrated by this example?

a) ethnocentrism b) generational subcultures c) structural integration d) pluralism e) leaking pipeline problem Answer: a Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 165) Which of the following statements provides an accurate description about subcultures? a) Functional subcultures are composed of “salaried professionals” such as lawyers, scientists, engineers, and accountants. b) Occupational subcultures refer to people who develop strong identities with their work groups and specific areas of task responsibilities. c) Ethnic subcultures reflect gaps that exist between people who grew up and are growing up during different periods of history, and whose values have thus evolved under different influences. d) Gender subcultures reflect differences in the values and beliefs of women and men. e) Functional subcultures consist of different ethnic and racial groups that work well together. Answer: d Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 166) The subcultures that can be found in an organization include all of the following except a) occupational subcultures. b) functional subcultures. c) gender subcultures. d) national subcultures. e) divisional subcultures. Answer: e

Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 167) ___ are formed among persons who work together and share similar ages, such as Millennials and Baby Boomers. a) Organizational sects b) Generational subcultures c) Ethnic subcultures d) Gender subcultures e) Functional subcultures Answer: b Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 168) The _________ occurs when female leaders are inappropriately criticized for being either too soft or too harsh, depending on who they are dealing with. a) glass ceiling b) leaking pipeline problem c) gender discrimination d) double-bind dilemma e) gender gap problem Answer: d Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 169) Friesen Ltd., a tech support company, ensures that its employees are not overworked. This is accomplished, in part by giving employees each a half a day off every alternate Friday, when

the sales staff go to the local virtual golf facility and the accounting staff go to a nearby fitness facility. Which of the following subcultures is evident at the multicultural Friesen Ltd.? a) ethnocentric subculture b) generational subculture c) formal subculture d) occupational subculture e) functional subculture Answer: d Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 170) The manager at Fillend Inc. noticed that the workforce displayed a very clear distinction between the staff who were older than 45 years of age and the rest of the population. He decided to address this gap between the ___ that could affect the organization’s performance. a) organizational sects b) generational subcultures c) ethnic subcultures d) gender subcultures e) functional subcultures Answer: b Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 171) ___ are formed among persons who share the same skills and work responsibilities. a) Cohort subcultures b) Generational subcultures c) Ethnic or national subcultures d) Gender subcultures e) Occupational and functional subcultures Answer: e

Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 172) Some employees at Altirol Inc. have decided to have inter-departmental basketball matches in the organization. There would be four teams: accounting, finance, marketing, and the product delivery team. Senior managers are concerned about this decision as they feel that the emphasis on ___ within their multicultural organization might have adverse effects on the combined workforce. a) organizational sects b) generational subcultures c) ethnic subcultures d) gender subcultures e) functional subcultures Answer: e Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 173) Which of the following is an invisible barrier to the career advancement of women and minorities in organizations? a) generational subcultures b) ethnocentrism c) multiculturalism d) glass ceiling e) revolving door Answer: d Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

174) Despite several similar studies confirming that higher gender diversity on corporate boards leads to better corporate performance, there is only one female board member to every six males in Canada. This absence of gender diversity reflects ___. a) harassment b) discrimination c) a glass ceiling d) double-bind dilemma e) pluralism Answer: c Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 175) Abigail, an ambitious professional, worked very hard as an assistant manager in an organization for five years. Abigail has been denied two promotions over the past five years, even though she was very qualified for each of the positions. Her performance evaluations have consistently shown that she has worked with efficiency and determination. Recently Abigail was again denied a promotion, this time to a management position. Abigail finally gave up and submitted her resignation from the company. Which of the following concepts is illustrated in this example? a) functional subculture b) scaffolding c) double-bind dilemma d) force management strategy e) leaking pipeline problem Answer: e Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 176) The daily work challenges that can be faced by minority subcultures in organizations include all of the following except

a) misunderstanding. b) lack of sensitivity. c) sexual harassment. d) clear advancement paths. e) pay discrimination. Answer: d Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 177) ___ is the process of building an organizational culture that allows all members, minorities and women included, to reach their full potential. a) Inclusion management b) Managing diversity c) Workplace management d) Environmental development e) High involvement management Answer: b Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 178) As the newly appointed manager of a one of the major divisions of a large company, Lane has decided to update and implement a new division objective. The objective is to create a workplace environment that allows all kinds of people, regardless of age, gender, ethnic background and so forth to reach their full potential in the pursuit of the division’s objectives. Lane’s statement indicates a commitment to ___. a) impressing the company’s top executives b) management by objectives c) managing the natural environment d) managing diversity e) human resource management Answer: d

Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Application Difficulty: Medium AACSB: Analytic 179) With respect to diversity leadership, the “employment equity” leadership approach to diversity refers to a) creating upward mobility for minorities and women. b) building quality relationships with respect for diversity. c) achieving full utilization of diverse human resources. d) adopting characteristics of majority cultures in order to succeed. e) helping people better understand and respect individual differences. Answer: a Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 180) With respect to diversity leadership, the “valuing differences” leadership approach to diversity refers to a) creating upward mobility for minorities and women. b) building quality relationships with respect for diversity. c) achieving full utilization of diverse human resources. d) adopting characteristics of majority cultures in order to succeed. e) allowing members to reach their full potential. Answer: b Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 181) With respect to diversity leadership, the “managing diversity” leadership approach to diversity refers to

a) creating upward mobility for minorities and women. b) building quality relationships with respect for diversity. c) achieving full utilization of diverse human resources. d) adopting characteristics of majority cultures in order to succeed. e) helping people better understand and respect individual differences. Answer: c Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 182) A ___ is a one who takes leadership responsibility for changing the existing pattern of behaviour of another person or social system. a) change leader b) behavioural leader c) managerial agent d) social worker e) social system manager Answer: a Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 183) Part of any manager’s job should be to act as a ___ in the workplace. a) behavioural agent b) managerial agent c) change agent d) social change manager e) social system manager Answer: c Learning Objective 12.3: Identify alternative change strategies and types of resistance to change

found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 184) A ___ in a multicultural organization takes initiative in trying to alter any negative behaviour of another person or social system. a) groupthinker b) change leader c) biculturalist d) mediator e) status quo manager Answer: b Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 185) Which of the following statements does not accurately contrast change leadership with status quo management? a) Change leaders are threatened by change; status quo managers are confident of their ability. b) Change leaders are willing to take risks; status quo managers are bothered by uncertainty. c) Change leaders seize opportunities; status quo managers prefer predictability. d) Change leaders expect surprise; status quo managers support the current state of affairs. e) Change leaders make things happen; status quo managers wait for things to happen. Answer: c Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 186) Morgan has been a manager at Rexgen Systems for four years and is known as a risk taker

and always ready to take on and lead the next big project. Morgan is a hard worker and takes initiative to handle critical issues. Morgan is a ___. a) passive manager b) change leader c) benevolent autocrat d) group thinker e) status quo manager Answer: b Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Application Difficulty: Medium AACSB: Analytic 187) Starcan Ltd. needs to find a way to handle its newest account in the most effective and innovative way to ensure that its new client signs more contracts in the future. The enthusiastic team members of Quinn’s team have come up with a number of innovative suggestions and strategies to accomplish this objective. However, fearing uncertainty and the unpredictability of a new process, Quinn rejects all the team’s ideas and asks that they stick to the traditional way of working. Quinn’s actions are characteristics of a ___. a) benevolent leader b) change leader c) proactive manager d) democratic manager e) status quo manager Answer: e Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Application Difficulty: Medium AACSB: Analytic 188) ___ occurs when senior managers initiate changes with the goal of having a comprehensive impact on the organization and its performance capabilities. a) Top-down change

b) Bottom-up change c) Incremental change d) Outside-in change e) Inside-out change Answer: a Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 189) Top-down change is initiated and directed by top management, and usually includes all of the following implications except a) top-down change may be perceived as insensitive to the needs of lower-level personnel. b) top-down change may encounter excessive resistance. c) top-down change relies on the willingness of middle-level and lower-level managers to actively support top management initiatives. d) top-down change can be implemented effectively through the use of force. e) top-down change may fail due to insufficient commitment of lower-level employees to changing. Answer: c Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 190) Robin, director of Grover Inc., decides to make some changes in the structure of the organization, believing that this will improve the overall performance of the organization. This change is an example of ___. a) bottom-up change b) incremental change c) organic change d) top-down change e) frame-bending change

Answer: d Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Application Difficulty: Medium AACSB: Analytic 191) Which of the following is the main reason for the failure of top-down change? a) the inability to include senior staff in the decision-making process b) the inability to apply it to use it to make major and comprehensive redirection of the organization c) the unfair advantage given to the lower-level employees over the higher-level management d) its focus on too much dialogue and participation e) poor implementation strategies where lower-level inputs are not taken into consideration Answer: e Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easu AACSB: Analytic 192) ___ occurs when the initiatives for change come from any and all parts of the organization, not just top management. a) Top-down change b) Bottom-up change c) Incremental change d) Outside-in change e) Inside-out change Answer: b Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

193) In the context of change leadership, ___ implies that many change initiatives come from lower levels in the organization. a) bottom-up change b) radical change c) transformational change d) top-down change e) frame-breaking change Answer: a Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 194) The implications of bottom-up change include all of the following except a) initiatives for change come from people throughout the organization. b) bottom-up change is essential for organizational innovation. c) change is made possible through empowerment, involvement, and participation. d) bottom-up change facilitates the adaptation of operations and technologies to the changing work environment. e) bottom-up change requires the approval and close oversight of top-level managers. Answer: e Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 195) Sloan’s company is not able to meet production targets, and this is affecting the company’s sales. Sloan decides to hold weekly meetings with employees from all functional levels of the organization to find a solution to the company’s problem. After carefully listening to all of the suggestions made by the employees Sloan gradually implements certain changes in the organization. This is an example of ___.

a) bottom-up change b) radical change c) transformational change d) top-down change e) frame-breaking change Answer: a Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Application Difficulty: Medium AACSB: Analytic 196) Which of the following is true of transformational change? a) It is usually led from the top. b) It is a modest, frame-bending change. c) It does not intend to break and remake the system. d) It involves gradual and continual change toward the desired result. e) It involves evolutions in products, processes, technologies, and work systems. Answer: a Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 197) In the context of organizational change, ___ results in a major and comprehensive redirection of the organization. a) bottom-up change b) incremental change c) transformational change d) frame-bending change e) continuous improvement change Answer: c Learning Objective 12.3: Identify alternative change strategies and types of resistance to change

found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 198) ___ is a type of planned change that results in a major and comprehensive redirection of the organization. a) Reactive change b) Planned change c) Transactional change d) Transformational change e) Incremental change Answer: d Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 199) Which of the following statements provide useful lessons regarding how to lead transformational change? a) Establish a sense of urgency for change. b) Create and communicate a change vision. c) Celebrate short-term “wins” and recognize those who help. d) Stay with it; keep the message consistent; champion the vision. e) All of the above are useful lessons regarding how to lead transformational change. Answer: e Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 200) A(n)___ is at the lowest level in an organizational change pyramid.

a) Radical change b) Incremental change c) Transformational change d) Top-down change e) Frame-breaking change Answer: b Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 201) ___ is a type of planned change that bends and nudges existing systems and practices to better align them with emerging problems and opportunities. a) Reactive change b) Planned change c) Transactional change d) Transformational change e) Incremental change Answer: e Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 202) Which of the following is true of incremental change? a) It is a radical or frame-breaking change. b) Its execution results in a major and comprehensive redirection of the organization. c) It involves the evolution of products, processes, technologies, and work systems. d) It creates fundamental shifts in strategies, culture, structures, and even the underlying sense of purpose or mission. e) Its intent is to break and remake the system. Answer: c

Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 203) RZB Ltd., a clothing manufacturer, has decided to upgrade its machines to machines that have all of the latest technological advances. RZB will also institute a comprehensive training workshop for its workers in order to ensure the safety of the workers and to improve productivity. These changes are examples of a___ change. a) radical b) incremental c) transformational d) top-down e) frame-breaking Answer: b Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Application Difficulty: Medium AACSB: Analytic 204) Blues Perfumes recently replaced its CEO. The new CEO has decided to change the organizational structure, introduce more transparency, and fine-tune the current style of communication to increase effectiveness and clarity. In the context of organizational change, this is an example of a___. a) bottom-up change b) incremental change c) transformational change d) frame-bending change e) continuous improvement change Answer: c Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change

Bloom’s: Application Difficulty: Medium AACSB: Analytic 205) Which of the following statements is correct with respect to internal forces for organizational change? a) There are no internal forces for change, only external forces. b) A change in one part of the organization can create the need for change in another part of the system. c) Internal forces for change are not as significant to the organization as external forces. d) Internal forces for change can only be identified after dealing effectively with the external forces. e) Once an internal force for change has been addressed, it will not have an impact on the organization again. Answer: b Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Synthesis Difficulty: Hard AACSB: Analytic 206) The growing health awareness among consumers has begun to affect the fast food industry. Sales are down and more consumers are asking fast food companies to add more nutritious items to their menu, which the industry has started doing. This is an example of which of the following external forces of change? a) change in technological developments b) change in economic conditions c) change in government laws and regulations d) change in social forces and values e) change in globalization Answer: d Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Synthesis Difficulty: Hard AACSB: Analytic

207) The unfreezing, changing, and refreezing phases are all parts of what process? a) planned change process b) decision-making process c) conflict resolution process d) organization design process e) negotiation process Answer: a Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 208) According to Kurt Lewin’s model for planned change, which of the following phases involves preparing a system for change? a) unfreezing phase b) changing phase c) refreezing phase d) improvising phase e) coercing phase Answer: a Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 209) Which of the following scenarios depict the unfreezing stage according to Lewin’s model for planned change? a) a firm firing an employee owing to bad performance b) a firm rearranging existing teams in order to cope with the new system upgrade that has to be made c) a firm re-establishing its competency in the market by executing transformational changes

d) a firm hiring new employees because it is experiencing a high rate of employee turnover e) a firm deciding to outsource some of its projects because of lack of appropriate talent and high costs of working in-house Answer: b Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Application Difficulty: Medium AACSB: Analytic 210) Delaying a sense of urgency for change and neglecting to build a coalition of influential persons who support the change, is a major reason for the failure of the ___ phase in the Lewin’s model for planned change. a) unfreezing b) changing c) refreezing d) improvising e) coercing Answer: a Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 211) Changing, the second phase of Lewin’s planned organizational change model, can be implemented by ___. a) identifying new, more effective ways of behaving b) choosing appropriate changes in tasks, people, culture, technology, and/or structure c) taking action to put changes in tasks, people, culture, technology, and/or structure into place d) all of the above e) none of the above Answer: d Learning Objective 12.3: Identify alternative change strategies and types of resistance to change

found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 212) The final phase in Lewin’s planned change process is ___. a) unfreezing b) changing c) refreezing d) improvising e) coercing Answer: c Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 213) According to Kurt Lewin’s model for planned change, which of the following phases involves stabilizing the system after change? a) unfreezing phase b) structuring phase c) refreezing phase d) improvising phase e) coercing phase Answer: c Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 214) In which of the following phases in Kurt Lewin’s planned change process is it important to evaluate results, provide feedback to the people involved, and make any required modifications

in the original change? a) unfreezing phase b) structuring phase c) refreezing phase d) improvising phase e) coercing phase Answer: c Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 215) The most common error in the refreezing phase in Lewin’s model for planned change is a) facilitating the forgetting or abandoning of change with the passage of time. b) declaring victory too soon and withdrawing support before the change is really fixed in normal routines. c) implementing change before people are prepared and feel a need for it. d) not creating a sense of urgency for change and neglecting to build a coalition of influential persons who support it. e) preparing for more change even before the present one is fully implemented. Answer: b Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 216) Which of the following specifically involves making continual adjustments as changes are being implemented? a) unfreezing b) changing c) refreezing d) improvising e) coercing

Answer: d Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 217) Taylor is manager of the packaging and shipping department of mid-sized company and feels that the employees in the department need to change the way they function to enhance efficiency and performance. Taylor interacted with the employees in order to make them aware that the way things are being done at present was not working well enough for the department. Taylor gave the employees specific examples of where performance was below standard. Taylor tried to ensure that the employees accepted that change in the department was inevitable. On the basis of the given information, it can be concluded that Taylor is in the ___ phase of the planned change. a) freezing b) unfreezing c) structuring d) refreezing e) improvising Answer: b Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Application Difficulty: Medium AACSB: Analytic 218) The owners of Western Jeans Ltd. have purchased a number of the newest sewing machines and had them installed and all of the old machines removed. To ensure that the employees were comfortable with the new machines and that the machines performed as effectively as expected, the owners continually gathered feedback from the employees at the end of each day for the first two weeks after the machines were installed. The owners would then make relevant changes by customizing the machines based on the employee’s feedback. What kind of change is depicted here? a) framing change b) improvisational change

c) transformational change d) coercive change e) radical change Answer: b Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloomcode: Application Difficulty: Medium AACSB: Analytic 219) Which of the following change strategies pursues change through formal authority and/or the use of rewards or punishments? a) rational persuasion strategy b) environmental-adaptive strategy c) shared power strategy d) force-coercion strategy e) collaborative strategy Answer: d Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 220) With respect to the force-coercion strategy, ___ involves working indirectly to gain special advantage over other persons and thereby make them change. a) direct forcing b) political maneuvering c) unilateral decision-making d) rational persuading e) authoritarian planning Answer: b Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations.

Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 221) A local accounting firm was bought by a larger firm whose management had different goals and objectives. The local firm’s employees’ jobs and roles were re-evaluated and changed without their input, and when they voiced their concern, they were told that they had to accept the changes or else resign. The new management is applying which change strategy? a) rational persuasion b) shared power c) force-coercion d) expertise e) direct action Answer: c Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Application Difficulty: Medium AACSB: Analytic 222) With respect to the force-coercion strategy, ___ involves straightforward and unilateral action to “command” that change take place. a) direct forcing b) political maneuvering c) diplomatic coercing d) indirect maneuvering e) alliance forming Answer: a Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

223) A change agent may take direct and unilateral action to command that change occurs. Which version of force-coercion is being used in that case? a) informational manipulation b) indirect forcing c) direct forcing d) power sharing e) lateral maneuvering Answer: c Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 224) With respect to change strategies, a ___ strategy is more likely to get slower results with high commitment and long-term internalization. a) rational persuasion b) top-down c) shared power d) force-coercion e) authoritarian Answer: c Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 245) Which of the following change strategies in an organization pursues change through empirical data and sound argument? a) rational persuasion strategy b) environmental-adaptive strategy c) shared power strategy d) force-coercion strategy e) authoritarian strategy

Answer: a Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 226) Suppose that a manager uses special knowledge, empirical data, and rational argument to bring about change. This manager is relying on the ___ change strategy. a) normative-reeducative b) rational persuasion c) political manoeuvring d) facilitation-support e) force-coercion Answer: b Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 227) Whitney is the manager for the customer services department and wanted to implement some changes in the processes at work. Whitney gathered productivity and customers reports for the last year and conducted surveys of both employees and customers to show that the change would prove advantageous to all concerned and would increase performance and customer satisfaction. Which strategy is Whitney using to incorporate the change? a) force strategy b) coercion strategy c) rational persuasion d) political maneuvering e) shared power strategy Answer: c Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations.

Section Reference 12.3: Organizational Change Bloom’s: Application Difficulty: Medium AACSB: Analytic 228) A(n) ___ strategy engages people in a collaborative process of identifying values, assumptions, and goals from which support for change will naturally emerge. a) shared power b) rational persuasion c) unfreezing-refreezing d) facilitation-support e) force-coercion Answer: a Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 229) With respect to change strategies, a(n) ___ pursues change by participation in assessing change needs, values, and goals. a) rational persuasion strategy b) reason-based strategy c) shared power strategy d) force-coercion strategy e) authoritarian strategy Answer: c Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 230) Which of the following characteristics does not accurately describe the behaviour of a change agent who uses a shared power strategy?

a) The change agent relies on reward power. b) The change agent understands change in the context of attitudes, values, skills, and significant relationships. c) The change agent believes that people behave as they do because of socio-cultural norms and commitments to others’ expectations. d) The change agent recognizes that people have varied needs and complex motivations. e) The change agent is sensitive to the way group pressures can support or inhibit change. Answer: a Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 231) It is important to find a good fit between your personal preferences and the pace and nature of change in the career field and organizations in which you choose to work. To achieve this fit, you have to understand a) the behaviour of your co-workers. b) your tolerance for ambiguity. c) your tolerance for the observable culture of the organization. d) your perceptions about the core culture of the organization. e) how to suppress personal preferences and adhere to organizational changes. Answer: b Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Synthesis Difficulty: hard AACSB: Analytic 232) ___ can be viewed as feedback that an informed change agent can use constructively to modify a planned change to better fit situational needs and goals. a) Political maneuvering b) Power sharing c) Rational persuasion d) Forced coercion

e) Resistance to change Answer: e Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 233) Which perspective on resistance to change is most appropriate for the contemporary manager? a) Resistance must be stopped immediately because it can destroy the planned changed effort. b) Resistance is best ignored when making changes. c) Resistance provides feedback that can be used to achieve a better fit between the planned change, the situation, and the people involved. d) Once resistance occurs, the change will surely fail. e) Persuading people to change is better than forcing them to change. Answer: c Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 234) A manager uses education and communication in order to overcome employee resistance to change. This means that the manager will most likely take which of the following actions? a) Allow employees to help design and implement the desired change. b) Make use of discussions, presentations, or demonstrations to groups of employees in order to inform people of the proposed change. c) Offer incentives, trade-offs or provide special benefits. d) Use covert attempts to influence his/her employees. e) Enlist the help of key personnel in planning the change. Answer: b Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations.

Section Reference 12.3: Organizational Change Bloom’s: Application Difficulty: Medium AACSB: Analytic 235) A manager who uses participation and involvement in order to overcome employee resistance to change will most likely take which of the following actions? a) Use discussion, presentations, and demonstrations to educate people beforehand about the change. b) Allow others to contribute ideas and help design and implement the change. c) Provide encouragement and training beforehand about the change. d) Try to covertly influence others by selectively providing information in favour of the desired change. e) Threaten resistors with a variety of undesirable consequences. Answer: b Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Application Difficulty: Medium AACSB: Analytic 236) The ___ approach for overcoming resistance to change involves providing encouragement and training, actively listening to problems, and helping resistors to deal with performance pressures. a) manipulation and co-optation b) education and communication c) facilitation and agreement d) facilitation and support e) participation and involvement Answer: d Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

237) Attempting covert influence by selectively providing information and structuring events in favour of the desired change is the ___ strategy of overcoming resistance to change. a) manipulation and co-optation b) explicit and implicit coercion c) facilitation and agreement d) facilitation and support e) participation and involvement Answer: a Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 238) Threatening and/or reminding employees of undesirable consequences if they do not agree to proposed changes is the ___ approach to overcoming resistance to change. a) manipulation and co-optation b) explicit and implicit coercion c) facilitation and agreement d) facilitation and support e) participation and involvement Answer: b Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 239) All of the following are reasons why people resist planned change except a) not understanding what is happening or what comes next. b) feeling overwhelmed by the situation or that things are moving too fast. c) feeling incapable of performing well under the new system. d) not seeing any reason for the change. e) self-centred, narrow-minded thinking.

Answer: e Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 240) Technological change is most advantageous to organizations under which of the following conditions? a) when unexpected events occur b) when there is a good fit with work needs, practices, and people c) when employees are inadequately prepared to use the technology d) when the manager is unwilling to customize the new technology to the needs of the local situation e) when the manager is reluctant to gather new information relating to change Answer: b Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Application Difficulty: Medium AACSB: Analytic 241) In implementing a new technology to a work process such as replacing human labour with robotics, new computer equipment and/or software, or updated equipment and machines with more advanced models, the change agent should ___. a) be alert to resistance b) continually gather and process information relating to the change c) be willing to customize the new technology to best meet the needs of the local situation d) all of the above e) none of the above Answer: d Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change

Bloom’s: Application Difficulty: Medium AACSB: Analytic 220) Fear of the unknown, disrupted habits, and poor timing are a) reasons for dismissal. b) reasons why people resist change. c) consequences of decision-making. d) reasons for unionization. e) reasons for rewards. Answer: b Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 243) To check the benefits of a change means to a) make sure the people involved see a clear advantage in making the change. b) see nothing of the change until it is too late to react. c) make sure the change is as far away from the existing values of the organization as possible. d) measure the increase in profits of the change. e) to include a reason to celebrate. Answer: a Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 244) An effective technique for dealing with resistance to change is a) punishment and termination. b) education and communication. c) cutting of benefits and transfer.

d) loss of pension and a reduction in pay. e) celebrate the fear. Answer: b Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 245) Tatum, an employee at Krone Inc., is resisting a change to a work process. Tatum is feeling apprehensive about the fast rate at which change is occurring in the company especially since Tatum only started working for the company a short time ago and is still learning the old process. In the context of resistance to change, which of the following represents Tatum’s thought process? a) disrupted habits b) loss of face c) lack of purpose d) work overload e) poor timing Answer: e Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Application Difficulty: Medium AACSB: Analytic Question type: Essay 246) What is organizational culture? What is a strong culture? Why is a strong culture important for organizational success in the 21st century business environment? Answer: Organizational culture (or corporate culture) is the system of shared beliefs and values that develops within an organization and guides the behaviour of its members. The best organizations have strong cultures that are clear, well defined, and widely shared as they discourage dysfunctional work behaviours and encourage positive ones. Strong and positive cultures are performance-oriented, emphasize teamwork, allow for risk taking, encourage

innovation, and make the well-being of people a top management priority. Strong, positive organizational cultures also promote progressive leadership and worker empowerment, value diversity, and ensure the maintenance of high ethical standards. A strong culture is important for organizational success in the 21st century business environment because of the need to respond effectively to competitive demands and a rapidly changing environment. While all organizations face competitive demands and changing times, they face widely varying problems and opportunities and there is no one best way to deal with them. The key to success is finding the best design to master the unique situational needs and challenges for each organization, and to support that design with a strong and positive culture. Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 247) Consider the post-secondary institution you are currently attending. Describe the institution’s observable culture and its core culture, and include specific examples where applicable. Answer: In answering the “observable culture” part of this question, students should describe the stories, heroes, rites and rituals, and symbols that uniquely characterize the institution. For example, stories could relate to the information about the institution that is passed on to prospective new students when they tour campus, or the information that is passed among students regarding their most favourite and least favourite instructors. Outstanding teachers or excellent students might be example of heroes. Rites and rituals might include student award convocations and commencement ceremonies. Symbols could include the school’s mascot or nickname. In answering the “core culture” part of this question, students might draw on their knowledge of the institution’s mission statement or on their perceptions of what the college/university as a whole is committed to accomplishing. Students might also approach this part of the question from the perspective of evaluating the extent to which the college/university possesses the core values that are typically associated with highly successful organizations ¾ namely, performance excellence, innovation, social responsibility, integrity, employee involvement, customer/client service, and teamwork. Learning Objective 12.1: Explain organizational culture and its influence on behaviour in organizations. Section Reference 12.1: Organizational Cultures Bloom’s: Synthesis Difficulty: Hard AACSB: Reflective Thinking

248) Briefly describe the characteristics of a multicultural organization. Answer: Multicultural organizations have the following characteristics: Pluralism—members of both minority cultures and majority cultures are influential in setting key values and policies. Structural integration—minority-culture members are well represented in jobs at all levels and in all functional responsibilities. Informal network integration—various forms of mentoring and support groups assist in the career development of minority-culture members. Absence of prejudice and discrimination—A variety of training and task-force activities address the need to eliminate culture-group biases. Minimum intergroup conflict—Diversity does not lead to destructive conflicts between members of majority and minority cultures. Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 249) What is diversity? Explain how diversity can benefit an organization. What impact does diversity have on organizational performance and competitive advantage? Answer: Diversity describes differences among people at work, including age, race, ethnicity, gender, physical ability, sexual orientation, religious beliefs, education, experience, and family status, among others. Diversity is a potential source of competitive advantage, offering organizations a mixture of talents and perspectives for dealing with the uncertainties and complexities of the 21st century business environment. The benefits of diversity can be realized through three different approaches to diversity leadership: affirmative action, valuing diversity, and managing diversity. Affirmative action, in which leadership commits the organization to hiring and advancing minorities and women, is the least beneficial of the three approaches in terms of competitive advantage. Valuing diversity, in which leadership commits the organization to education and training programs designed to help people better understand and respect individual differences, is of intermediate value to the organization in terms of competitive advantage. Managing diversity, in which leadership commits to fully utilizing the assets of a diverse workforce, provides the greatest value with respect to competitive advantage. Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

250) Define or describe what the glass ceiling is and how it affects women and/or specific minorities? Answer: Glass ceiling is an invisible barrier that limits the professional advancement of women and minorities in some organizations. One reason why more women aren’t getting to the top is that the glass ceiling still causes many to plateau or drop out at earlier career stages. This glass ceiling isn’t always based on outright gender prejudice. However it may trace to male-dominant organizational cultures and executive mindsets that have a hard time tolerating women who want both families and careers, thus making it hard for them to resolve the “produce or reproduce dilemma.” Even as employers put into place female-friendly human resource policies such as flexible hours or work arrangements, some women may feel forced at times to choose between career and family. It’s a choice that career often loses. The term leaking pipeline problem is now used to describe situations where qualified and high-performing women drop out of upward career paths for these reasons and other glass ceiling obstacles. Learning Objective 12.2: Describe subcultures and diversity in multicultural organizations. Section Reference 12.2: Multicultural Organizations and Diversity Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 251) Briefly define or describe the following terms: Bottom-up Change Top-down Change Transformational Change Incremental Change Answer: In bottom-up change, the initiatives for change come from any and all parts of the organization, not just from top management. Such change is made possible by management commitments to empowerment, involvement, and participation. Bottom-up change is essential to organizational innovation and very useful in adapting operations and technologies to the changing requirements of work. In top-down change, senior managers initiate changes with the goal of improving organizational performance. Any change that is driven from the top and perceived as insensitive to the needs of lower-level personnel can -easily fail. Successful top-down change is led in ways that earn the support of -others throughout the organization. Transformational change is radical or frame-breaking planned change that results in a major and comprehensive redirection of the organization. It creates fundamental shifts in strategies, culture, structures, and even the underlying sense of purpose or mission. Transformational change is led from the top and designed to change the basic character of the organization. Transformational change seeks substantial changes in outcomes in the areas that today are critical for success performance, commitment, retention, enthusiasm, initiative and accountability. Incremental change is a modest, frame-bending version of planned organizational change. It bends and nudges existing systems and practices to better align them with emerging -problems and opportunities. The intent isn’t to break and remake the system, rather to move it forward

through continuous improvements. Incremental change works in the realm of skills and behaviours. This type of change is sufficient in a low-turbulence environment where the gap between current reality and the vision is not large. Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 252) What are the three phases in Lewin’s planned change process? Give examples of what change leaders can do to accomplish each phase successfully. How do the phases of Lewin’s planned change process relate to the stages in the general model of organization development? Answer: Kurt Lewin’s three phases of the planned change process are unfreezing, changing, and refreezing. Unfreezing is the change phase in which a situation is prepared for change and felt needs for change are developed. During the unfreezing phase, change leaders can establish good relationships with the people involved, help others realize that present behaviours are not effective, and minimize expressed resistance to change. Changing is the phase in which something new takes place in the system, and change is actually implemented. During the changing phase, change leaders can identify new, more effective ways of behaving; choose appropriate changes in tasks, people, culture, technology, and/or structure; and take action to put these changes into place. Refreezing is the phase of stabilizing the change and creating the conditions for its long-term continuity. During the refreezing phase, change leaders can create acceptance and continuity for the new behaviours, provide any necessary resource support, and use performance-contingent rewards and positive reinforcement. Lewin’s three-phase process of planned change relates to the second, third, and fourth stages of the general model of organization development, which is described below: Stage 1: establish a working relationship—create links with members of the client system. Stage 2: diagnosis—gathering and analyzing data, and setting appropriate change objectives. This relates to Lewin’s unfreezing stage. Stage 3: intervention—taking collaborative action to implement desired changes. This relates to Lewin’s changing stage. Stage 4: evaluation—following up to reinforce and support change. This relates to Lewin’s refreezing stage. Stage 5: achieve a terminal relationship—withdraw to leave members of the client system as self-reliant. Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Synthesis Difficulty: Hard

AACSB: Analytic 253) There is an approach to change called “Explicit and Implicit Coercion”, including examples of this type of change resistance management. Explain this approach and why it is risky in terms of negative consequences. Answer: Explicit and implicit coercion forces people to accept change by threatening resistors with undesirable consequences if they don’t do what is asked of them in the change process. Typical consequences are loss of future raises, promotions, offices and perquisites. Potential risks to this approach are harassment lawsuits, destruction of morale, higher absenteeism, higher employee turnover, violent behaviour (remember the phrase “going postal?”), discrimination complaints, decline in customer relations with customers who may view the technique negatively, loss of business from customers who disagree with the technique. Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 254) Describe each of the sources of resistance to change, and provide an example to illustrate each. If possible, draw on personal experience or the observation of others’ experiences for your examples. Answer: Students should describe and provide examples for each of the common sources of resistance to change that are listed below: Fear of the unknown—not understanding what is happening or what comes next. Disrupted habits—feeling upset when old ways of doing things can’t be followed. Loss of confidence—feeling incapable of performing well under the new ways of doing things. Loss of control—feeling that things are being done “to” you rather than “by” or “with” you. Poor timing—feeling overwhelmed and that things are moving too fast. Work overload—not having the physical or psychic energy to commit to the change. Loss of face—feeling inadequate or humiliated because the “old” ways apparently weren’t “good” ways. Lack of purpose—not seeing a reason for the change and/or not understanding its benefits. Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Synthesis Difficulty: Hard AACSB: Reflective Thinking

255) Describe how resistance to change can be used to achieve a better “fit” among the planned change, the situation, and the people involved. Answer: The presence of resistance usually means that something can be done to achieve a better “fit” among the planned change, the situation, and the people involved. Things to check when seeking a better fit include the following. 1. Check the benefits—Make sure the people involved see a clear advantage in making the change. People should know “what is in it for me” or “what is in it for our group or the organization as a whole.” 2. Check the compatibility—Keep the change as close as possible to the existing values and ways of doing things. Minimizing the scope of change helps keep it more acceptable and less threatening. 3. Check the simplicity—Make the change as easy as possible to understand and use. People should have access to training and assistance to make the transition to new ways as easy as possible. 4. Check the “tryability”—Allow people to try the change little by little, making adjustments as they go. Don’t rush the change, and be sure to adjust the timing to best fit work schedules and cycles of high/low workloads. Learning Objective 12.3: Identify alternative change strategies and types of resistance to change found in organizations. Section Reference 12.3: Organizational Change Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Schermerhorn, Management, Fifth Canadian Edition

CHAPTER 13 STRATEGIC HUMAN RESOURCE MANAGEMENT Question type: True/False 1) The basic goal of human resource management is building organizational performance capacity by raising human capital to ensure that highly capable and enthusiastic people are always available. Answer: True Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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2) Human resource specialists are increasingly important in attracting, developing, and maintaining a quality workforce in an environment complicated by legal issues, labour shortages, economic turmoil, and changing corporate strategies. Answer: True Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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3) The strategic role of HRM does not extend to supporting core values and corporate culture. Answer: False Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 4) Strategic human resource management mobilizes human capital through the HRM process to best implement organizational strategies. Answer: True Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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5) The responsibility of attracting a quality workforce involves human resource planning, recruitment, and selection. Answer: True Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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6) The responsibility of developing a quality workforce encompasses career development, work–life balance, compensation and benefits, retention and turnover, and labour–management relations. Answer: False Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 7) Person–organization fit is the extent to which an individual’s values, interests, and behaviour are consistent with the culture of his or her organization. Test Bank

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Answer: True Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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8) People are the most critical and valuable strategic assets an organization can have; consequently, people must be a top priority in any organization with high performance aspirations. Answer: True Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic

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9) Whenever any diversity characteristics interfere with finding, hiring, and utilizing the best employees, one organization’s loss in human capital can be another’s gain. Answer: True Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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10) Discrimination occurs when someone is denied a job or a job assignment for reasons that are not job relevant. Answer: True Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 11) Strategic human resource management encompasses mobilizing human capital through the human resource process in order to best implement an organization’s strategies. Answer: True Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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12) Employee value propositions, or EVPs, are mutually beneficial exchanges of values between individuals and organizations. Answer: False Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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13) The Canadian Human Rights Act guarantees people the right to employment and advancement without regard to race, colour, national origin, religion, gender, age, or mental or physical ability. Answer: True Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

Test Bank

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14) Race, religion, political belief, and criminal conviction are prohibited grounds for discrimination in all provinces of Canada. Answer: False Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

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15) Employment equity is an effort to ensure a fair representation of women and minority group members in the Canadian workforce. Answer: True Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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16) The Employment Equity Act applies only to the federal government. Answer: True Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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17) Each province has the right to impose remedies on organizations that do provide a timely resolution to any discrimination charges brought against them. Answer: True Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 18) The use of bona fide occupational qualifications based on sex, religion, age, and national origin are not allowed under any circumstances. Answer: False Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic

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19) Sexual harassment occurs when people experience conduct or language of a sexual nature that affects his/her employment situation. Answer: True Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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20) Comparable worth refers to the notion that persons performing jobs of similar importance should be paid at comparable levels. Answer: True Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 21) Permatemps are independent contractors that are engaged regularly by the same organization. Test Bank

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22) Workplace privacy essentially means that it is illegal for an employer to monitor your work performance if you are working from home. Answer: False Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic

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23) Until the legal status of employee surveillance through the use of information technology is clarified, the best advice for everyone is to assume your employer will protect your privacy and will let you know whenever you are being monitored. Answer: False Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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24) B C-16 makes it illegal to discriminate against transgender individuals in the workplace and nowhere else. Answer: False Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 25) Human resource planning is the process of analyzing an organization’s human resource needs and determining how to best fill them. Answer: True Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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26) Before a company can begin the process of attracting a qualified workforce, it must have a clear understanding of the jobs to be done, know what talents are required to perform the jobs, and have systems in place to excel at employee recruitment and selection. Answer: True Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic

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27) Job analysis is the orderly study of job facts to determine what is done, when, where, how, why, and by whom in existing jobs or potential new jobs. Answer: True Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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28) A job analysis provides information that can be used to develop or update job descriptions and job specifications. Answer: True Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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29) A job description is essentially the same as a job specification. Answer: False Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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30) Recruitment is a set of activities designed to attract a qualified pool of job applicants to an organization. Answer: True Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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31) The three steps in the typical recruitment process are advertising job vacancies, screening résumés, and making preliminary contacts. Answer: False Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 32) Recruiting websites such as Monster and CareerBuilder are sources of internal recruits. Answer: False Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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33) External recruitment brings outsider applicants with fresh perspectives, expertise, and work experience, but extra effort is needed to get reliable information on them. Answer: True Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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34) One of the disadvantages of external recruitment is the additional time and cost to get reliable information on the candidate. Answer: True Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 35) Disadvantages to internal recruitment include not bringing in outsiders with fresh perspectives and expertise, possibly missing out on getting the best candidate for a Test Bank

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position and increasing employee turnover. Answer: False Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloomcode: Analysis Difficulty: Medium AACSB: Analytic

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36) Higher levels of early job satisfaction, greater trust in an organization, and less inclination to quit prematurely are among the expected benefits of traditional recruitment practices. Answer: False Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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37) Realistic job previews seek to “sell” the firm to outsiders by communicating only the most positive features of the job to potential candidates. Traditional recruitment seeks to provide the candidate with complete information regarding the actual job and organizational features before the job is accepted. Answer: False Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 38) One of the major goals of realistic job previews is to promote job satisfaction and reduce turnover. Answer: True Test Bank

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Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

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39) Selection is the process of choosing from a pool of applicants, the person or persons who offer the greatest performance potential. Answer: True Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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40) The selection process involves the completion of a formal application, interviewing, testing, reference checks, and final analysis and decision to hire or reject. Answer: True Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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41) An application form declares an individual to be a formal candidate for a job and documents the applicant’s personal history and qualifications. Answer: True Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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42) In the selection process, reliability means there is a clear relationship between what the selection device is measuring and eventual job performance while validity means that the selection device or technique is consistent with how measures. Answer: False Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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43) A selection device is said to be valid when it yields the same results over time if taken by the same person. Answer: False Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

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44) If an applicant is unprepared, a poor communicator, or lack interpersonal skills during the interviews they will not be a good fit with the organization. Answer: False Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 45) To succeed in a video-conference interview, an applicant should be prepared ahead of time, conference in an appropriate location, dress professionally, practice an interview voice, have reference materials handy, have a list of questions ready, and ask what happens next. Test Bank

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Answer: True Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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46) A disadvantage of an unstructured interview is that the interviewer may form a false first impression of the candidate and not hire them. Answer: True Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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47) A behavioural interview asks applicants how they would react when confronted with a work situation. Answer: False Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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48) Biodata methods collect certain personal information that has been proven to correlate with good job performance. Answer: True Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 49) An assessment centre is an employment test that evaluates a person’s potential by observing his or her performance in experiential activities that simulate daily work activities. Answer: True Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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50) Work sampling has applicants work on actual job tasks while being graded by observers on their performance. Answer: False Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

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51) Reference checks are inquiries to previous employers, academic advisors, coworkers, and/or acquaintances regarding the qualifications, experience, and past work records of a job applicant. Answer: True Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 52) The best selection decisions are most likely made when responsibility for analyzing all the data and making the final decision to hire or reject an applicant rests with the Test Bank

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applicant’s prospective manager or team leader, potential co-workers, and the human resources staff. Answer: True Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

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53) Employee orientation typically involves clarifying the organization’s mission and culture, explaining operating objectives and job expectations, and communicating policies and procedures. Answer: True Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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54) The intent of socialization in the human resource management process is to help newcomers fit into the work environment in a way that furthers their development and performance potential. Answer: True Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 55) When orientation is weak or neglected, socialization largely takes place informally as newcomers learn about the organization and their jobs through casual interactions with co-workers. Answer: True Test Bank

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Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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56) Job-rotation is on-the-job training where employees spend time working in different positions, departments or even geographical locations, thereby expanding their job capabilities. Answer: False Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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57) When an experienced person provides performance advice to another person, the onthe-job training method being used is known as coaching. Answer: True Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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58) Mentoring is a form of off-the-job training in which early-career employees are formally assigned as protégés to senior persons. Answer: False Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Comprehension Difficulty: Easy Test Bank

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AACSB: Analytic 59) The act of sharing experiences and insights between a senior person and a new or early-career employee is known as management development. Answer: False Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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60) Top managers will likely benefit from management development programs that focus on developing a better understanding of multifunctional viewpoints. Answer: False Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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61) A performance management system sets standards, assesses results, and plans actions to improve future performance. Answer: True Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 62) Performance appraisal is the process of formally assessing someone’s work accomplishments and providing feedback. Answer: True Test Bank

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63) The development purpose of performance appraisal is to let employees know where they stand relative to performance objectives and standards. Answer: False Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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64) The evaluation purpose of performance appraisal is to assist employees in their training and continued personal development. Answer: False Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

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65) A manager acts in a judgmental role when they give a direct evaluation of another person’s accomplishments, and in a counselling role when focusing on a subordinate’s developmental needs. Answer: True Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Comprehension Difficulty: Easy Test Bank

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AACSB: Analytic 66) Trait-based performance assessment methods tend to be subjective and as a result, have relatively poor reliability and validity. Answer: True Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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67) The graphic rating scale provides a checklist for rating quality of work, punctuality and absenteeism. Answer: True Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic

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68) A manager is using the behaviourally anchored rating scale method of performance appraisal when an employee’s performance is evaluated using specific descriptions of actual behaviours in a given job. Answer: True Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 69) The critical-incident technique is a behaviour-based approach that can reduce the influence of recency bias on evaluations. Test Bank

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Answer: True Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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70) The critical-incident technique involves keeping a running log or inventory of effective and ineffective job behaviours. Answer: True Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

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71) Results-based performance measures may ignore the impact of circumstances beyond an employee’s control, such as economic conditions or poor performance by someone else. Answer: True Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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72) In the rank ordering method, each person in a group of employees being evaluated is formally compared with every other person and is rated as either the superior or weaker member of the group. Answer: False Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Test Bank

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Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 73) The multiperson comparison technique where each employee is placed into a frequency distribution that requires a certain percentage of employees to fall into specific performance classifications is the forced distribution technique. Answer: True Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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74) 360-degree appraisals may include self-evaluations by a job holder to identify strengths, weaknesses, and development needs. Answer: True Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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75) 360º feedback is a performance appraisal method that uses a rank ordering, paired comparisons, or a forced distribution to formally compare one person’s performance with that of one or more others. Answer: False Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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76) A recent survey conducted by the Society for Human Resource Management found that the most effective tools for maintaining a quality workforce are good health care benefits, competitive salaries, flexible work schedules, and personal time off, and opportunities for training and development. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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77) The term “work–life balance” deals with how people balance the demands of careers with demands of their personal and family needs. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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78) Work-life balance is one of the key screening criteria used by candidates when selecting potential employers. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 79) Work-life balance is achieved with flexible working schedules, flexible work locations and flexible vacation time. Answer: True Test Bank

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Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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80) Base compensation can assist the organization by making it a more desirable place of employment, attracting the right people for the right jobs, and retaining qualified employees. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

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81) If you are part of a merit pay system, your pay increases will be based on some assessment of how well you perform. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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82) It is not necessary to have a solid foundation of agreed upon and well-defined performance measures for a merit pay system to be fair and workable. Answer: False Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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83) Pay increases have no impact on employee job attitudes, motivation, and performance. Answer: False Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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84) Bonus pay plans are one-time or lump-sum payments to employees for meeting performance targets or some other extraordinary contribution to the firm. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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85) Profit sharing plans distribute a proportion of profits earned by the organization to eligible employees. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 86) Profit sharing plans pay a portion of an organization’s net profits while gain-sharing plans pay out a portion of any savings or “gains” realized from cost reduction or productivity enhancement ideas. Answer: True Test Bank

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Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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87) Gain-sharing plans allow employees to share in cost savings or productivity gains realized by their efforts. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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88) Stock ownership plans and stock option plans are an attempt to motivate employees to work hard to keep the company economically successful. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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89) Stock options give employees the right to purchase shares in their employing company at a fixed price in the future. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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90) In contrast to straight bonuses, profit-sharing plans allow employees to share in cost savings or productivity gains realized by their efforts. Answer: False Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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91) Employee benefits are monetary forms of compensation like travel costs and other reimbursements. Answer: False Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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92) The constantly rising cost of healthcare benefits is a major employer concern, and consequently employers are encouraging healthy lifestyles for their employees as one way of helping to contain these costs. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 93) A flexible benefits program allows employees to choose a set of benefits within a certain dollar amount. Answer: True Test Bank

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94) Family-friendly benefits help employees to achieve a better balance between their work and non-work responsibilities. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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95) Employee assistance programs help employees deal with troublesome personal problems. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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96) Retirement support programs often include special counselling on company benefits, money management, estate planning, and leisure time activities. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Test Bank

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97) Since the prospect of retirement raises fears and apprehensions for many people, many organizations provide special assistance to pre-retirement employees. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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98) The potential benefits of early retirement incentive programs for employers are opportunities to lower payroll costs by reducing positions and replacing higher-wage workers with less expensive newer hires. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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99) Replacement both concludes and recycles the human resource management process. Replacement is an opportunity to review human resource plans. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Synthesis Difficulty: Hard AACSB: Analytic 100) Wrongful dismissal is a doctrine giving workers legal protections against discriminatory firings. Answer: True Test Bank

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Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloomcode: Comprehension Difficulty: Easy AACSB: Analytic

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101) The most extreme way of correcting a mismatch between the employee and the organization is termination. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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102) Labour unions are organizations that deal with workers on the employers’ behalf . Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic

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103) Union members can create difficulties for management by refusing to come to work, refusing to buy employer’s products or services, asking other people to not buy the employer’s products or services, or posting and carrying signs complaining about the employer’s treatment of workers. Answer: True Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 104) Affirmative action is the process through which labour and management representatives negotiate, administer, and interpret labour contracts. Answer: False Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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Question type: Multiple Choice 105) ___ is a process of attracting, developing, and maintaining a talented work force. a) Customer relationship management b) Human resource management c) Database management d) Supply chain management e) Enterprise feedback management Answer: b Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 106) The basic goal of ___ is building organizational performance capacity by raising human capital to ensure that highly capable and enthusiastic people are always available. a) strategic workforce management b) human resource strategizing c) human resource management d) human mission matching e) organizational workforce development Test Bank

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Answer: c Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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107) The responsibility of ___ involves human resource planning, recruitment, and selection. a) developing a quality workforce b) attracting a quality workforce c) planning for a quality workforce d) staffing a quality workforce e) maintaining a quality workforce Answer: b Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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108) ________ involves employee orientation, training and development, and performance appraisal. a) Developing a quality workforce b) Attracting a quality workforce c) Planning for a quality workforce d) Staffing a quality workforce e) Maintaining a quality workforce Answer: a Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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109) Career development, work–life balance, compensation and benefits, retention and turnover, and labour–management relations fall within the task of ______ a quality workforce. a) developing b) attracting c) planning for d) staffing e) maintaining Answer: e Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 110) ACME Construction Ltd. is undergoing a major restructuring and one of the actions recommended is elimination of sixty (60) positions within the company. One of the main responsibilities of the company’s HR manager is to identify training needs for those employees who will be transferred to other divisions of the company. By identifying training for those affected employees the HR manager is trying to

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a) develop a quality workforce. b) restructure a quality workforce. c) attract a quality workforce. d) maintain a quality workforce. e) redistribute a quality workforce. Answer: a Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Application Difficulty: Medium AACSB: Analytic 111) ___ are increasingly important in attracting, developing, and maintaining a quality workforce in an environment complicated by legal issues, labour shortages, economic Test Bank

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turmoil, and changing corporate strategies. a) Human resource specialists b) Line managers c) First-level supervisors d) Team leaders e) Team members Answer: a Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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112) Dakota wants to hire Morgan for a position as a software developer. In the interview with Morgan, Dakota asks Morgan if has any previous experience as a software developer. Dakota is trying to assess Morgan's ___. a) person–job fit b) person–organization fit c) comparable worth d) graphic rating scale e) behaviourally anchored rating scale Answer: a Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Application Difficulty: Medium AACSB: Analytic 113) ___ fit is the extent to which an individual’s knowledge, skills, experiences, and personal characteristics are consistent with the requirements of their work. a) Person–team b) Person–job c) Person–organization d) Employer–person e) Person–manager Test Bank

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Answer: b Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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114) ___ fit is the extent to which an individual’s values, interests, and behaviour are consistent with the culture of his or her organization. a) Manager–person b) Person–team c) Employer–organization d) Person–job e) Person–organization Answer: e Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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115) ____________ is the extent to which an individual’s values and behaviour fit with the organizational culture and ____________ is the extent that an individual’s skills, experience and personal characteristics are consistent with the position. a) Person–job fit; person–organization fit b) Person–organization fit; person–job fit c) Person–behaviour fit; person–job fit d) Person–organization fit; person–behaviour fit e) Personality–organization fit; personality–job fit Answer: b Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Analysis Test Bank

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Difficulty: Medium AACSB: Analytic 116) ___ mobilizes human capital through the HRM process to best implement organizational strategies. a) Management by objectives b) Strategic management c) Strategic human resource management d) Human portfolio analysis e) Strategic organizational design Answer: c Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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117) An important indicator that human resource management is truly strategic in an organization is when the HRM function is headed by a ___. a) human resources director reporting to a middle-level manager b) middle-level manager reporting to an upper-level executive c) mid-level management team d) human resources manager reporting to an executive vice president e) senior executive reporting directly to the chief executive officer Answer: e Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 118) Which of the following statements does not accurately describe how human resource management should be approached in modern organizations? a) People are critical and valuable strategic assets. Test Bank

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b) People are key to organizational success and failure. c) People should be viewed as costs to be reduced. d) The human resource practices of successful organizations include employment security, decentralization, use of teams, good compensation, extensive training, and information sharing. e) Positive human resource policies contribute to higher organizational performance. Answer: c Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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119) Which of the following statements describes employee value propositions (EVPs)? a) EVPs are the foundation for strategic human resource management b) EVPs summarize the mutually beneficial value exchanges between the organization and the employee. c) EVPs are packages of rewards and opportunities that entice people to want to work hard for and remain with an organization. d) Only a) and c) describe EVPs e) Only b) and c) describe EVPs Answer: d Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 120) ___ occurs when criteria that are not job-relevant are used in making hiring or termination decisions or job assignments. a) Equal employment opportunity b) Discrimination c) Affirmative action d) Job prejudice e) Managerial bias Test Bank

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121) ____________ ensures that women and minorities are represented in the workforce in proportion to their labour market availability. a) Realistic recruiting b) Bona fide occupational qualifications c) Employment equity d) Employee assistance e) Discriminative action Answer: c Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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122) The use of bona fide occupational qualifications based on ___ is not allowed under any circumstances. a) gender b) religion c) age d) national origin e) colour Answer: e Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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123) The following sentence was printed in a job-positing advertisement, “Only individuals under the age of 45 may apply for this position as it entails strenuous physical work for long hours.” Which of the following does this statement exemplify? a) affirmative action b) bona fide occupational qualification c) sexual discrimination d) age discrimination e) comparable worth Answer: b Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Application Difficulty: Medium AACSB: Analytic

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124) In Canada, human resource management practices are affected by all of the following laws except a) the Canadian Human Rights Act. b) the Employment Equity Act. c) the Civil Employment of Minorities Act. d) the British Columbia Human Rights Act. e) the Ontario Human Rights Act. Answer: c Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 125) ___ prohibits discrimination in employment based on race, colour, religion, sex, or national origin. a) Canadian Human Rights Act b) Canadians With Disabilities Act of 1990 Test Bank

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c) Canadian Labour Code d) Employment Equity Act e) Accessibility Canada Act Answer: a Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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126) In Canada, ___ guarantee(s) people the right to employment and advancement without regard to race, colour, national origin, religion, gender, age, or mental or physical ability. a) the Canadian Human Rights Act b) fairness in business c) minority action programs d) the Constitution e) the Charter of Rights and Freedoms Answer: a Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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127) Which statement concerning the Employment Equity Act is false? a) The act applies to the federal government. b) The act is directed at race and gender discrimination only. c) The act is designed to protect people from employment discrimination. d) Failure to comply with the act can put a firm in jeopardy in the courts. e) The act applies to all federal departments and agencies. Answer: b Learning Objective 13.1: Explain the human resource management process and its legal framework. Test Bank

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128) Current legal issues in human resource management include all of the following except a) sexual harassment in the workplace. b) comparable worth of jobs. c) liability for goods produced by careless employees. d) employee entitlements of part-time workers and independent contractors. e) workplace privacy. Answer: c Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Application Difficulty: Medium AACSB: Analytic

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129) ___ occurs when a person experiences conduct or language of a sexual nature that affects their employment situation. a) A normal work experience b) Sexual harassment c) Gender interaction d) Comparable worth e) Perceptual distortion Answer: b Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 130) ___ holds that persons performing jobs of similar importance should be paid at comparable levels. Test Bank

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a) Affirmative action b) Equal employment opportunity c) Merit pay d) Pay equity e) Equality principle Answer: d Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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131) A recent survey found that female corporate leaders were underpaid compared to their male counterparts. This would be an example of which HRM issue? a) employment discrimination b) glass ceiling c) gender discrimination d) pay equity e) comparable employment Answer: d Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Application Difficulty: Medium AACSB: Analytic 132) All-Star Garage, a local auto repair facility, pays its mechanics $50 per 8-hour day. One of their most recent hires, who is paid $40 per 8-hour day found that she is being paid less than all of the other mechanics in the company, even though she has the same qualifications and about the same amount of experience as the other mechanics. This example demonstrates a violation of which of the following? a) permatemp b) pay equity c) base compensation d) recency bias Test Bank

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e) critical-incident technique Answer: b Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Application Difficulty: Medium AACSB: Analytic

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133) ___ are hired as needed and are not part of an organization’s permanent workforce. a) Part-time workers b) Frontline staff c) Independent contractors d) Flextime employees e) Line managers Answer: c Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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134) Until the legal status of employee surveillance through the use of information technology is clarified, the best advice for everyone is to assume that _________. a) your employer will protect your privacy b) you have no privacy at work c) your employer will let you know whenever you are being monitored d) you are being monitored occasionally e) it is illegal for an employer to monitor your work Answer: b Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Comprehension Difficulty: Easy Test Bank

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AACSB: Analytic 135) During the recent COVID-19 pandemic most employees were asked to or were required to work from their homes. In some cases, organizations would help the employees set up a home office with computers and printers from the organization. Taylor was one such employee, and while working from home spent considerable time going through Facebook postings, Twitter feeds and shopping on Amazon. When the company reprimanded Taylor for these actions, Taylor became very agitated and threatened to sue the company for invasion of privacy. The company told Taylor they had every right to monitor the computer activity while Taylor was working on their equipment. Given this scenario, which of the following statement is correct? a) Taylor is correct because the activity took place in the home and not at the office. What Taylor does at home is not the concern of the employer. b) Taylor’s company is correct because it is legal for employers to monitor the work performance and behaviour of their employees, even if that work takes place at home. c) Taylor has been reprimanded and should take this as a warning, and work with the company to establish clear work-from-home policies and the company should make all employees aware of the policies. d) Both a) and c) are correct. e) Both b) and c) are correct. Answer: e Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Evaluation Difficulty: Hard AACSB: Analytic

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136) Before a company can begin the process of attracting a qualified workforce it must ___. a) have a clear understanding of the jobs to be done b) have systems in place to excel at employee recruitment and selection c) know what talents are required to perform the jobs d) a and b e) a, b, and c Answer: e Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Test Bank

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137) ___ is the process of analyzing an organization’s human resource needs and determining how to best fill them. a) Management by objectives b) Strategic management c) Human resource planning d) Identifying job factors for all positions e) Placing new employees on the organization chart Answer: c Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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138) ___ is the orderly study of job facets to determine what is done when, where, how, why, and by whom. a) Job analysis b) Job description c) Job specification d) Job supervision e) Job detailing Answer: a Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 139) A job ___ details the duties and responsibilities of a job holder. Test Bank

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a) specification b) description c) analysis d) evaluation e) supervision Answer: b Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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140) The information in a job analysis can be used to create ___, which list the qualifications required of a job holder. a) job specifications b) job descriptions c) bona fide occupational qualifications d) equal employment opportunities e) job roles Answer: a Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 141) The information in a job analysis can be used to create ___, which list the qualifications required of a job holder. a) job specifications b) job descriptions c) bona fide occupational qualifications d) equal employment opportunities e) job roles Answer: a Test Bank

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142) A job analysis provides useful information that can be used to develop or update ___ and ___. a) job specifications; paired comparisons b) reliability; performance appraisals c) work–life balance; career plateauing d) job descriptions; job specifications e) job descriptions; job interviews Answer: d Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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143) Kai is the manager of a local bakery and has observed high employee turnover. Kai believes this is due to poorly defined job descriptions. The bakers, clerks, and delivery people are not clear about duties and responsibilities and there is overlapping and duplicated work processes. Kai needs to define all the activities for each position, as well as the behaviours necessary to perform them. To do this Kai should conduct a ___. a) job preview b) human resources plan c) job specifications plan d) job analysis e) job description plan Answer: d Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Application Difficulty: Medium Test Bank

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AACSB: Analytic 144) As part of the company’s restructuring plan, Blair, the human resources manager, must review and write new ___ for each position, each of which clearly state the minimum job qualifications that a person must possess to successfully perform that job. a) job rules b) human resources specifications c) job specifications d) job analysis e) job descriptions Answer: c Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic

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145) ___ is a set of activities designed to attract a qualified pool of job applicants to an organization. a) Recruitment b) Remuneration c) Probation d) Orientation e) Training Answer: a Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 146) The three steps in the traditional recruitment process are a) searching, screening, and interviewing. b) searching, initial screening, and socialization. Test Bank

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c) advertising job vacancies, making preliminary contacts, and initial screening. d) advertising job vacancies, socialization, and screening. e) planning, searching, and screening. Answer: c Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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147) Which of the following is the first step in a traditional recruitment process? a) preliminary contact with potential job candidates b) face-to-face interview c) advertisement of a job vacancy d) initial screening to create a pool of qualified applicants e) employment test Answer: c Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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148) Which of the following is true of traditional recruitment? a) It focuses on communicating the positive and negative features of a job. b) The negatives of a job are always clearly revealed and not downplayed or concealed. c) It leads to higher levels of early job satisfaction and greater trust in an organization. d) Employers could suffer lost productivity and the added costs of having to recruit again. e) New employees always have less inclination to quit prematurely. Answer: d Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Comprehension Test Bank

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Difficulty: Medium AACSB: Analytic 149) Making current employees in an organization aware of job vacancies through job posting and personal recommendations is known as ___. a) traditional recruitment b) realistic recruitment c) affirmative action d) equal employment opportunity e) internal recruitment Answer: e Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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150) Which of the following is a method of external recruitment? a) divisional transfers b) company electronic postings c) manager recommendations d) expatriation e) employee referrals Answer: e Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 151) Which of the following is a method of internal recruitment? a) recruiting websites b) virtual job fairs c) managers’ recommendations Test Bank

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d) employment agencies e) headhunters Answer: c Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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152) Which of the following is an advantage of external recruitment? a) It is easier to get reliable information on applicants from outside an organization. b) It brings outsider applicants with fresh perspectives, expertise, and work experience. c) It is usually quicker and focuses on persons whose performance records are well known. d) It reduces turnover rates. e) It aids in the retention of high-quality employees. Answer: b Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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153) The potential advantages of internal recruitment include all of the following except a) internal recruitment is usually less expensive than external recruitment. b) internal recruitment deals with people whose performance records are well established. c) a history of serious internal recruitment can be encouraging to employees. d) serious internal recruitment shows employees they can advance by working hard. e) internal recruitment provides fresh perspectives and ideas for problem solving. Answer: e Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Analysis Test Bank

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Difficulty: Medium AACSB: Analytic 154) Aiden is hired to manage the marketing department of a national retail chain and needs to hire two marketing representatives to staff the department. The company’s policy is to use internal recruitment instead of external recruitment. Aiden however prefers to hire externally in order to avoid which of the following internal recruitment disadvantages? a) Internal recruitment is usually more expensive than recruiting externally. b) The reliance on managers to recommend potential candidates. c) The lack of fresh perspectives, expertise, and experience. d) Internal recruitment reduces employee motivation and loyalty. e) Internal recruitment is usually more time consuming than external recruitment. Answer: c Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic

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155) The vice-president of marketing for Rexcam Ltd. has recently resigned and a new marketing head as soon as possible, and Rexcam does not want to spend much money on the recruitment process. Which of the following recruitment options is most suitable for Rexcam? a) external recruitment b) internal recruitment c) social recruitment d) traditional recruitment e) campus recruitment Answer: b Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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156) Which of the following is true of realistic job previews? a) It focuses on only communicating the most positive features of a job and organization to all applicants. b) The negatives of a job are often downplayed or concealed. c) It creates unrealistic expectations that cause costly turnover when new hires become disillusioned and quit. d) Less inclination of employees to quit prematurely is an expected benefit of using realistic job previews. e) Lower levels of early job satisfaction and lesser trust in organizations are the expected consequences of using realistic job previews. Answer: d Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic

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157) In ___, the organization seeks to “sell” itself to job applicants. a) realistic recruitment b) external recruitment c) socialization d) traditional recruitment e) affirmative action Answer: d Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 158) The recruitment approach that tries to provide the job candidates with all pertinent information about the job and the organization without distortion and before the job is accepted is called a(n) ___. a) open job preview Test Bank

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b) traditional job preview c) realistic job preview d) holistic job preview e) comprehensive job preview Answer: c Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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159) ___ is the process of choosing individuals to hire from a pool of qualified job applicants. a) Orientation b) Selection c) Assignment d) Promotion e) Remuneration Answer: b Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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160) Which of the following is the first step of a selection process? a) interview b) screening applicant information c) site visit d) pre-employment check e) employment testing Answer: b Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Test Bank

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161) A selection device is said to be reliable when it ___. a) measures exactly what it intends to, relative to the job specification b) can be passed by at least 75 percent of all applicants c) is administered by a qualified human resource specialist d) yields the same results over time if taken by the same person e) is sanctioned by the EEOC Answer: d Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

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162) ___ means that scores on a selection device have demonstrated links with future job performance. a) Compatibility b) Reliability c) Validity d) Equity e) Accountability Answer: c Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 163) Any selection device should ___. a) be valid but not necessarily reliable Test Bank

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b) be reliable but not necessarily valid c) be both reliable and valid d) be used only by highly trained professionals e) give prospective employees reasons to question the hiring process Answer: c Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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164) Ashton has completed the same personality assessment four different times and each time has seen dramatically different results. Ashton made sure however that each time the test was taken the answers given were honest and consistent. This test is an example of a selection technique with low ___. a) work sampling b) probability c) validity d) criteria e) reliability Answer: e Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic 165) The traditional ___ is the most common method of assessment in selection processes. a) assessment test b) face-to-face interview c) work sample d) telephone interview e) virtual interview Answer: b Test Bank

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166) From the interviewer’s perspective, interviews can fail for all of the following reasons except a) the interviewers ask the wrong things. b) the interviewers talk too much. c) line managers do the interviewing. d) the interviewers’ personal biases prevent an applicant’s capabilities from being fully considered. e) the wrong people do the interviewing. Answer: c Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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167) Interviews can be difficult for job applicants if the applicants ___. a) are unprepared b) are poor communicators c) lack interpersonal skills d) a and b e) a, b, and c Answer: e Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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168) During an online interview, which of the following preparation steps should the interviewee complete? a) Complete an online search about the organization including its mission, history and financial reports. b) Prepare a list of questions about the organization and the position being applied for. c) Send a follow-up e-mail that includes a thank you for the time taken for the interview and any follow-up comments or questions. d) Practice an online interview with a trusted colleague or friend. e) All of the above Answer: e Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic

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169) In ___ interviews, the interviewer does not work from a formal and pre-established list of questions that is asked of all interviewees. a) structured b) high validity c) standardized d) unstructured e) closed Answer: d Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 170) While interviewing four candidates for a job vacancy, the interviewer asked each of the candidates a series of questions with varying degrees of difficulty and topics. No candidate was asked exactly the same question, even though in general terms the questions covered the same topics. The interview described in this case is an example of a(n) ___ interview. Test Bank

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a) structured b) behavioural c) unstructured d) situational e) operational Answer: c Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic

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171) During a job interview, Cassidy is asked about the time when a secret about a coworker was accidently revealed and how Clive had managed to diffuse the tension with the co-worker caused by the revelation. Clive has undergone a(n) ___ interview. a) structured b) behavioural c) exit d) situational e) operational Answer: b Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic 172) In an interview, an interviewer asks a candidate, “Describe a situation in which you disagreed with your manager and how you resolved that situation.” This is an example of a(n) ___ interview. a) exit b) reference c) technical d) closed e) behavioural Test Bank

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Answer: e Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic

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173) In a face-to-face interview for an HR position, a candidate is asked how a group of employees would be dismissed during a lay-off process. This would be an example of a(n) ___ interview. a) situational b) cognitive c) psychiatric d) technical e) informal Answer: a Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic

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174) Biodata methods a) collect certain personal information that has been proven to correlate with good job performance. b) examine how job candidates handle simulated work situations. c) evaluate applicants while performing actual work tasks. d) ask job candidates about their past behaviour, focusing specifically on actions that are likely to be important in a work environment. e) ask job candidates how they would react when confronted with specific work situations they would be likely to experience on the job. Answer: a Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Test Bank

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175) As part of the selection process for a job, Jordan was asked to work for a few hours inside a facility where the real work conditions of the job were simulated. Which of the following selection techniques is being used in this case? a) work sampling b) biodata method c) behavioural interview d) assessment centre e) situational interview Answer: d Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic

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176) ___ has applicants work on actual job tasks while being graded by observers on their performance. a) Work modelling b) Work sampling c) Assessment evaluation d) Job analysis e) Job observation Answer: b Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 177) Kennedy applied for a position as a truck driver at a transport company and was Test Bank

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asked by the interviewers to drive a loaded truck for about 200 miles to assess Andrew’s driving abilities. In this case the interviewers have used the______ interview tool. a) work sampling b) biodata method c) behaviourally anchored rating scale d) critical-incident technique e) graphic rating scale Answer: a Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic

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178) ___ can be used to find out important background information about job applicants that was not discovered in the application, interviewing, or testing steps. a) Reference checks b) Assessment centres c) Management simulation games d) Apprenticeships e) Realistic job previews Answer: a Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 179) The best selection decisions are most likely made when responsibility for analyzing all the data and making the final decision to hire or reject an applicant rest with the ___. a) applicant’s prospective co-workers b) head of the human resources department c) applicant’s prospective manager or team leader d) doctor giving the physical exam and drug test e) applicant’s prospective manager or team leader, potential co-workers, and the human Test Bank

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resources staff Answer: e Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Evaluation Difficulty: Hard AACSB: Analytic

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180) ___ refers to a set of activities designed to familiarize new employees with their jobs, co-workers, and key aspects of the organization as a whole. a) Training b) Onboarding c) Recruiting d) Selection e) Development Answer: b Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 181) Which one of the following statements does not accurately describe employee orientation? a) The first six months of employment in a given organization is crucial because it is during this time that original performance expectations are set. b) Patterns for future employee-employer relationships tend to be set in the first few months of employment. c) The primary intent of orientation is to enable new employees to complete job-related paperwork. d) When orientation is neglected, even well intentioned and capable people can learn inappropriate attitudes. e) Effective orientation enhances a person’s understanding of the organization and adds purpose to his or her daily job activities. Answer: c Test Bank

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Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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182) When Lane was inducted into the organization, the first week was spent being briefed about the work processes, being introduced to other employees, informed about the organization’s mission, and objectives and the organization’s policies and procedures. Which of the following terms best describes this process? a) onboarding b) socialization c) training d) job rotation e) coaching Answer: a Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic

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183) The intent of ___ in the human resource management process is to help newcomers fit into the work environment in a way that furthers their development and performance potential. a) modelling b) mentoring c) training d) socialization e) orientation Answer: e Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 184) ___ is a set of activities that helps people acquire and improve job-related skills. a) Interviewing b) Sampling c) Recruitment d) Training e) Selection Answer: d Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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185) On-the-job training includes all of the following approaches except a) coaching. b) mentoring. c) modelling. d) management development. e) job rotation. Answer: d Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloomcode: Knowledge Difficulty: Medium AACSB: Analytic 186) ___ is a common approach of on-the-job training where people are allowed to spend time working in different jobs or departments or even geographical locations, and thus expand the range of their job capabilities. a) Coaching b) Mentoring Test Bank

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c) Socialization d) Orientation e) Job rotation Answer: e Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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187) Leslie works in the Vancouver branch of Trans-Global and has been sent to Australia by the company to learn various processes used by the Australian branch. While in Australia Leslie will be taking on roles other than the role Leslie currently holds in the company. At the same time an employee from the Australian branch will travel to Vancouver to learn about the processes Leslie uses. Which of the following is best described by this situation? a) socialization b) mentoring c) work sampling d) orientation e) job rotation Answer: e Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic 188) Linh was hired as a teller in a bank and as a new employee is required to work in different positions in the customer service department in order to gain exposure to a variety of tasks and to learn multiple jobs. This type of training is known as ___. a) off-the-job-training b) modelling c) job rotation d) coaching e) management development Test Bank

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Answer: c Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

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189) ___ is a form of coaching in which early-career employees are formally assigned as protégés to senior persons. a) Job rotation b) Orientation c) Mentoring d) Conditioning e) Inducting Answer: c Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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190) When an experienced person provides performance advice to another person, the on-the-job training method known as ___ is being used. a) coaching b) modelling c) job rotation d) employee development e) management development Answer: a Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Medium Test Bank

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AACSB: Analytic 191) When millennials mentor baby-boomers in the various technological aspects of a job this is referred to as a) modelling b) mentoring c) reverse mentoring d) executive orientation e) executive socialization Answer: c Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic

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192) Which of the following is an example of off-the-job training methods? a) job rotation b) coaching c) temporary promotions d) mentoring e) management development Answer: e Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 193) Training specifically targeted to improve a person’s knowledge and skills in the fundamentals of management and leadership is referred to as ___. a) management development b) executive modelling c) executive apprenticeship Test Bank

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d) management coaching e) management orientation/socialization Answer: a Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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194) Which of the following is a system that ensure that performance standards and objective are set and assessed, and where steps are taken to improve employee performance? a) Performance assessment system b) Human resource management system c) Strategic performance assessment system d) Performance management system e) Employee management system Answer: d Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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195) ___ is the process of formally assessing the work accomplishments and providing feedback to an employee. a) Promotion b) Orientation c) Work sampling d) Training e) Performance appraisal Answer: e Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Test Bank

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196) The ___________ purpose of performance assessment focuses on performance goals and objectives, while the ____________purpose focuses on measuring results against standards. a) evaluation; development b) development; performance c) performance; results d) development; evaluation e) development; results Answer: d Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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197) ___ is an approach that focuses on providing employees with more frequent and more developmental feedback in an effort to improve their job performance. a) Performance coaching b) Performance evaluation c) Job orientation d) Job evaluation e) Remuneration Answer: a Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 198) Which of the following is required for performance appraisal methods to be reliable Test Bank

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and valid? a) They should yield different results over time. b) The methods should yield different results for different raters. c) They should not measure factors indirectly relevant to job performance. d) There should be some bias against poor performers. e) They should measure all factors directly and indirectly relevant to job performance. Answer: c Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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199) A manager is using the ___ method of performance appraisal when the employee’s performance is evaluated using a checklist of traits or characteristics that are related to performance in a given job. a) multiperson comparisons b) behaviourally anchored rating scale c) traits rating scale d) graphic rating scale e) 360º feedback Answer: d Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic 200) Which of the following performance appraisal methods uses specific descriptions of actual behaviours to rate various levels of performance? a) graphic rating scale b) behaviourally anchored rating scale c) 360-degree appraisal d) multiperson comparison e) critical-incident technique Test Bank

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Answer: b Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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201) Which of the following is true of the behaviourally anchored rating scale (BARS)? a) It is less reliable and valid than the graphic rating scale. b) BARS is not consistent with the development purpose of the performance appraisal. c) It tends to focus on recent behaviours rather than on behaviour that occurred throughout the evaluation period. d) An employee with a BARS rating of 4 most likely treats his customers rudely and with disrespect. e) It describes expected behaviours for various levels of performance achievement in a job. Answer: c Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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202) ___ overemphasizes the latest behaviours of an individual when evaluating the individual's performance. a) The critical-incident technique b) Recency bias c) A graphic rating scale d) 360-degree appraisals e) A multiperson comparison Answer: b Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 203) The ___ is a behaviour-based approach that can reduce the influence of recency bias on evaluations by keeping a running log or inventory of a person’s effective and ineffective job behaviours. a) 360-degree appraisal b) multiperson comparison c) graphic rating scale d) critical-incident technique e) behaviourally anchored rating scale Answer: d Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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204) Marin is the manager of a restaurant and keeps a journal of all the times the servers get a good or bad review from customers. Marin is using the ___. a) graphic rating scale b) behaviourally anchored rating scale c) work sampling technique d) critical-incident technique e) job analysis technique Answer: d Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic 205) Which of the following is true of results-based approaches? Test Bank

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a) They only focus on employee traits or specific behaviours. b) They are typically qualitative. c) They may ignore the impact of circumstances beyond the employee’s control. d) They are subjective methods of appraisal. e) They focus on recent performances rather than past performances. Answer: c Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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206) ___ is the tendency to give employees a higher performance rating than they deserve. a) Recency bias b) Leniency c) Nepotism d) Neutrality e) Affirmative action Answer: b Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 207) The ___ is a performance appraisal method that uses a rank ordering, paired comparisons, or a forced distribution to formally compare one person’s performance with that of one or more others. a) critical-incident technique b) multiperson comparison method c) graphic rating scales method d) behaviourally anchored rating scales method e) 360º feedback method Answer: b Test Bank

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208) ___ are intended to gather feedback from multiple sources in order to provide a comprehensive evaluation of an employee’s performance. a) 360-degree appraisals b) Results-based performance appraisals c) Critical-incident techniques d) Behaviour-based performance appraisals e) Trait-based performance appraisals Answer: a Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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209) The issue of ___ deals with how people balance the demands of work with their personal and family needs. a) organizational socialization b) work–life balance c) performance management d) career planning e) career plateauing Answer: b Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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210) ___ allows people to more easily balance personal affairs and work responsibilities. a) Recency bias b) Leniency c) Flexibility d) Affirmative action e) Nepotism Answer: c Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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211) Which of the following cases represent legitimate concerns about work–life balance? a) Single parents who must balance complete parenting responsibilities with a job b) Dual-career couples who must balance the career needs and opportunities of each partner c) The family-friendliness of employers d) All of the above are legitimate work–life balance issues e) None of the above is a legitimate work–life balance issue Answer: d Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic 212) Base compensation can assist the organization by accomplishing all of the following except a) making the organization a more desirable place of employment. b) attracting the right people for the right jobs. c) making outside employment opportunities less attractive. d) retaining qualified employees. Test Bank

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e) eliminating the need for fringe benefits programs. Answer: e Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic

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213) ___ can assist the organization by making it a more desirable place of employment, attracting the right people for the right jobs, and retaining qualified employees. It can have a large impact on employees’ job attitudes, motivation, and performance, and decrease their tendencies to look elsewhere for jobs a) Merit pay systems b) Profit-sharing plans c) Fringe benefits d) Family-friendly benefits e) Base compensation Answer: e Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 214) An employee’s compensation each month includes a monthly salary, a travel allowance, medical and dental premiums paid for by the employer, and a percentage of the company’s adjusted monthly operating income. Which of these amounts would be considered base compensation? a) Monthly salary b) Travel allowance c) Medical and dental premiums d) Percentage of the operating income e) All of them because the employee receives them every month Answer: a Test Bank

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215) In ___, pay increases are awarded to an employee in proportion to his/her performance contributions. a) merit pay systems b) seniority pay systems c) employee stock ownership plans d) profit-sharing plans e) early retirement incentive programs Answer: a Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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216) A good merit raise is a positive signal to high performers designed to a) discourage creativity and innovation. b) encourage the employee to work harder in the future. c) encourage the employee to retire early. d) discourage the employee from using health benefits. e) discourage the employee from asking for a raise. Answer: b Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 217) A typical question raised about merit pay systems is: Test Bank

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a) Who assesses performance? b) What is a two-tier system? c) How do I get paid? d) Why does it work this way? e) What are the benefits? Answer: a Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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218) A compensation plan that provides a one-time or lump-sum payment to employees who meet specific performance targets or make some other extraordinary contribution to a company is called a) two-tier wage system. b) employee stock ownership plan. c) bonus pay. d) base pay. e) merit pay. Answer: c Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 219) An employee bonus should be given a) to everyone regardless of performance. b) only when the company makes a profit. c) regardless of whether the company makes a profit. d) only when all employees have performed well. e) to reward performance and raise loyalty to the firm. Answer: e Test Bank

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220) Helping employees to purchase stock in their employing companies is called a) employee stakeholder plan. b) gain-sharing. c) two-tier wage system. d) profit sharing. e) employee stock ownership plan. Answer: e Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

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221) Stock options a) do not lose value even if the stock price ends up lower. b) are nonmonetary forms of compensation. c) give an owner the right to buy shares of stock at a future date at a fixed price. d) provide one-time or lump-sum payments to employees who meet specific performance targets. e) offer workers to purchase stock in their employing companies whenever they chose to. Answer: c Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic

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222) A compensation plan that distributes to employees a proportion on net profits earned by the organization is called a __________ plan. a) gain-sharing b) profit-sharing c) employee stock ownership d) stock option e) group payout Answer: b Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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223) Allowing groups of employees to share in any savings or “gains” realized when their efforts result in measurable cost reductions or productivity increases is called a) loss sharing. b) gain-sharing. c) bonus pay. d) employee stock ownership plan. e) gains pay. Answer: b Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 224) What is the primary difference between profit-sharing and gain-sharing plans? a) Profit-sharing plans provide one-time payments based on performance accomplishments, whereas gain-sharing plans provide weekly and/or monthly payments. b) Profit-sharing plans pay increases in proportion to performance contributions, whereas gain-sharing plans pay in proportion to seniority and experience. c) Profit-sharing plans are most common at the executive level, whereas gain-sharing plans are most common at the lower levels. Test Bank

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d) Profit-sharing plans are monetary forms of compensation, whereas gain-sharing plans are nonmonetary. e) Profit-sharing plans distribute to employees a proportion of net profits earned by the organization, whereas gain-sharing plans allow employees to share gains realized by their efforts. Answer: e Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Evaluation Difficulty: Hard AACSB: Analytic

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225) ___ include non-monetary forms of compensation that are intended to improve the work and personal lives of employees. a) Profit-sharing and gain-sharing plans b) Stock ownership and stock options c) Employee benefits packages d) Bonus pay plans e) Merit pay system Answer: c Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 226) A(n) ___ program allows employees to choose a set of benefits within a certain dollar amount. a) employee benefits b) incentive c) bonus d) flexible benefits e) employer-assisted benefits Answer: d Test Bank

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227) ___ help(s) employees to achieve a better balance between their work and non-work responsibilities. a) Adaptive employee benefits b) Flexible base compensation c) Balanced scorecard systems d) Family-friendly benefits e) Employer-required benefits Answer: d Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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228) Family-friendly benefits include ___. a) stock options b) counselling on alcohol c) referrals for sexual abuse d) part-time employment options e) counselling for stress Answer: d Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 229) Parker, an employee at DrexCom Inc., is experiencing marital problems. Parker Test Bank

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would be pleased to learn that the company has a(n) ___ program to help with such matters. a) employee assistance b) cafeteria benefits c) comparable worth d) collective bargaining e) affirmative action Answer: a Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Application Difficulty: Medium AACSB: Analytic

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230) Offering employees financial incentives to retire early is called a) termination. b) early retirement incentive program. c) bonus pay. d) discrimination. e) payout. Answer: b Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 231) ___ refers to the involuntary dismissal of an employee. a) Termination b) Retirement c) Affirmative action d) Resignation e) Collective bargaining Answer: a Test Bank

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232) The employment-at-will doctrine assumes that ___. a) employers must have bona fide job-related reasons for a termination b) employers can terminate employees at any time for any reason c) workers should be provided legal protections against discriminatory firings d) workers should be provided financial incentives to retire early e) workers should be provided severance packages in the event of dismissal Answer: b Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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233) The principle of ___ gives workers legal protections against discriminatory firings and employers must have bona fide job-related reasons for a termination. a) employment-at-will b) collective bargaining c) merit pay d) wrongful dismissal e) affirmative action Answer: d Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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234) ___ is the process of negotiating, administering, and interpreting a labour contract in labour–management relations. a) Collective bargaining b) Acculturation c) Mediation d) Nepotism e) Affirmative action Answer: a Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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Question type: Essay 235) Define human resource management (HRM). Describe its goal and major tasks. Answer: Human resource management is a process of attracting, developing, and maintaining a talented work force. The goal of human resource management is to enhance organizational performance through the effective utilization of people. All managers, not just human resource specialists, share the responsibility to ensure that highly capable and enthusiastic people are in the right positions and working with the support they need to be successful. The three major tasks in human resource management are typically described as: 1. Attracting a quality workforce—human resource planning, employee recruitment, and employee selection. 2. Developing a quality workforce—employee orientation, training and development, and performance management. 3. Maintaining a quality workforce—career development, work–life balance, compensation and benefits, retention and turnover, and labour–management relations. Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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236) Briefly describe the legal context of human resource management with respect to discrimination in employment. Answer: Canada is governed by two main pieces of legislation: The Canadian Human Rights Code and The Employment Equity Act. • The Canadian Human Rights Code—makes it illegal for employers to discriminate in hiring, promotions, and termination employment based on prohibited grounds. • The Employment Equity Act—gives preference to four designated groups: Aboriginals Women Visible minorities People with physical/mental disabilities Learning Objective 13.1: Explain the human resource management process and its legal framework. Section Reference 13.1: Human Resource Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 237) Describe the process of recruiting. What are the different types of recruiting and explain the advantages and disadvantages of each? Answer: Recruitment is a set of activities designed to attract a qualified pool of job applicants to an organization. The three steps in a typical recruitment process are: 1. advertisement of a job vacancy, 2. preliminary contact with potential job candidates, and 3. initial screening to create a pool of qualified applicants. Recruitment can be external or internal. The recruiting that takes place on college campuses is one example of external recruitment, in which job candidates are sought from outside the hiring organization. Company websites and their social media sites, virtual job fairs, or specialized recruiting websites such as Monster and CareerBuilder, employment agencies and headhunters, university placement centres, personal contacts and employee referrals are all sources of external recruits. Internal recruitment, by contrast, seeks applicants from inside the organization. Most organizations have a procedure for announcing vacancies through newsletters, electronic postings, and the like. They also rely on managers to recommend candidates for advancement. Both recruitment methods have potential advantages and disadvantages. External recruitment brings outsider applicants with fresh perspectives, expertise, and work experience. But extra effort is needed to get reliable information on them. Internal recruitment is usually quicker and focuses on persons whose performance records are well known. A history of internal recruitment builds employee commitment and motivation by showing that opportunities exist to advance within the organization. It also helps to reduce turnover rates and aids in the retention of high-quality employees. Test Bank

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Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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238) Describe the process of employee selection. Your answer should include reference to all of the steps and processes involved in successful employee selection Answer: Once a manager has a pool of qualified candidates, the next step is to select whom to hire. The process of selection involves gathering and assessing information about job candidates and making a hiring decision. Interviews: Very few individuals are hired for professional positions without first sitting through one or more interviews. And, the traditional face-to-face interview with HR staff and/or hiring manager remains the most common method of assessment in the selection process. But rapidly increasing in frequency and importance are the telephone interview and the virtual or online video interview. Both are often part of an initial screening that tests applicants for basics such as technical skill set and experience, as well as communication skills, personal impression, and potential person-organizational culture fit. In unstructured interviews the interviewer does not work from a formal and preestablished list of questions that is asked of all interviewees. Behavioural interviews ask job candidates about their past behaviour, focusing specifically on actions that are likely to be important in the work environment. Situational interviews ask applicants how they would react when confronted with specific work situations they would be likely to experience on the job. Employment Tests: Employment tests are often used to identify intelligence, aptitudes, personality, interests, and even ethics. Biodata methods usually take the form of multiple choice, self-report questionnaires. They collect “hard” biographical information and also include “soft” items that inquire about more abstract things such as value judgments, aspirations, motivations, attitudes, and expectations. When used in conjunction with ability tests, this method can increase the reliability and validity of the selection process. Other types of employment testing involve actual demonstrations of job-relevant skills and personal characteristics. An assessment centre evaluates a person’s potential by observing his or her performance in experiential activities designed to simulate daily work. When using work sampling, companies ask applicants to do actual job tasks while being graded by observers on their performance. Generally speaking, organizations should use a combination of methods in order to increase the predictive validity of the selection process. Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Analysis Test Bank

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Difficulty: Medium AACSB: Analytic 239) Assume that you own and operate your own business, and that you employ approximately 50 people. You want to hire the best-qualified people that you can find. Explain how you would go about recruiting and selecting new employees. Answer: The recruiting and selection processes should be followed in a step-by-step fashion to have the greatest chance of attracting the best-qualified people. Recruitment is a set of activities designed to attract a qualified pool of job applicants to an organization. The steps in the recruiting process are as follows: advertisement of a job vacancy, preliminary contact with potential job candidates, and initial screening to create a pool of qualified applicants. Both external and internal recruitment could be used. Most importantly, realistic job previews should be used. This will provide the job candidate with all pertinent information about the job and the organization, without distortion and before the job is accepted. Further, it will foster a healthy perspective on the employment relationship, thereby facilitating job satisfaction while reducing the premature turnover that often occurs when expectations are unmet. Selection is the process of choosing from a pool of applicants the person or persons who offer the greatest performance potential. The steps in the selection process are: Step 1––completion of a formal application form. Step 2––interviewing. Step 3––testing. Step 4––reference checks. Step 5––physical examination. Step 6––final analysis and decision to hire or reject. The best candidates are likely to be selected if appropriate rejections are made at each step of the selection process. In step 1, candidates who lack the appropriate credentials should be rejected. In step 2, candidates with insufficient ability, ambition, or poor interpersonal qualities should be rejected. At step 3, candidates with poor test scores are rejected. At step 4, candidates with poor references should be rejected. In step 5, candidates who are physically unfit for the job should be rejected. Finally, at step 6, candidates having low overall potential should be rejected. Learning Objective 13.2: Describe how managers help organizations attract a quality workforce. Section Reference 13.2: Attracting a Quality Workforce Bloom’s: Synthesis Difficulty: Hard AACSB: Reflective Thinking 240) What steps should a manager take in helping a new employee fit into the work environment in a way that furthers their development and performance potential? Test Bank

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Answer: A manager should be concerned about socialization and orientation in helping a new employee fit into the work environment so that their development and performance potential are enhanced. Socialization is the process of influencing the expectations, behaviour, and attitudes of a new employee in a way considered desirable by the organization. The objective of socialization in the context of human resource management is to help achieve the best possible fit among the individual, the job, and the organization. Socialization of newcomers begins with orientation, which is a set of activities designed to familiarize new employees with their jobs, co-workers, and key aspects of the organization as a whole. Good orientation enhances a person’s understanding of the organization and adds purpose to his or her daily job activities. The first six months of employment are often crucial in determining how well someone is going to perform over the long run. Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 241) Describe each of the four main types or models of performance appraisal and list any of the specific techniques within each model. Provide at least one example of a performance appraisal technique within each of the four main models. Answer: The four main models are Trait-based performance assessment, Behaviourbased performance assessment, Results-based performance assessment and 360-Degree feedback. Student examples within each will vary. Performance appraisal is the process of formally assessing someone’s work accomplishments and providing feedback. In general, performance appraisal methods can be classified as focusing on traits, behaviours, results, or 360-degree feedbacks. Trait-based approaches are designed to measure the extent to which the employee possesses characteristics or traits that are considered important in the job. For example, trait-based measures often assess characteristics such as dependability, initiative, and leadership. One of the oldest and most widely used performance appraisal methods is a graphic rating scale. It is basically a checklist for rating an individual on traits or performance characteristics such as quality of work, job attitude, and punctuality. Although this approach is quick and easy, like other trait-based methods it tends to be very subjective and, as a result, has relatively poor reliability and validity. Behaviour-based approaches evaluate employees on specific actions that are important parts of the job. The behaviourally anchored rating scale, or BARS, describes actual behaviours for various levels of performance achievement in a job. Because performance assessments are anchored to specific descriptions of work behaviour, the BARS is more reliable and valid than the graphic rating scale. Behavioural-based appraisals are also more consistent with the developmental purpose of the performance appraisal since they provide specific feedback to employees on what they need to do better. But, one problem Test Bank

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is that a BARS evaluation may be influenced by recency bias, the tendency for evaluations to focus on recent behaviours rather than on behaviour that occurred throughout the evaluation period. The critical-incident technique is a behaviour-based approach that can reduce the influence of recency bias on evaluations. This technique keeps a running log or inventory of a person’s effective and ineffective job behaviours. Results-based approaches do just what their name implies. Rather than focusing on employee traits or specific behaviours, results-based assessments centre on accomplishments. This type of assessment is typically quantitative and objective, making it ideal in some circumstances. But, results-based measures sometimes create more problems than they solve. In some jobs the things that are the easiest to measure quantitatively aren’t the most important. In addition, results-based measures may ignore the impact of circumstances beyond the employee’s control, such as economic conditions or poor performance by someone else. One of the common performance appraisals errors is leniency—the tendency for supervisors to rate employees more favourably than they deserve in order to avoid the unpleasant task of giving negative feedback. While leniency tends to be less pronounced in results-based performance appraisals, it may be further reduced by the use of multiperson comparisons that formally compare one person’s results with that of one or more others. Comparisons can be done in different ways. In rank ordering, all persons being rated are arranged in order of performance achievement. The best performer goes at the top of the list, the worst performer at the bottom; no ties are allowed. In forced distribution, each person is placed into a frequency distribution, which requires that a certain percentage of employees fall into specific performance classifications, such as top 10%, next 40%, next 40%, and bottom 10%. These systems are usually put in place to guard against supervisors giving their employees too lenient or overly positive evaluations. 360-degree appraisals are intended to gather feedback from multiple sources in order to provide a more comprehensive evaluation of the employee’s performance. They typically include input not only from the employee’s supervisor but from peers, subordinates, and even customers—individuals inside and outside the organization who depend on the jobholder’s performance. Most 360-degree appraisals also include self-evaluations by the job holder to identify strengths, weaknesses, and development needs. Learning Objective 13.3: Discuss how managers help organizations develop a quality workforce. Section Reference 13.3: Developing a Quality Workforce Bloom’s: Synthesis Difficulty: Hard AACSB: Reflective Thinking 242) What options would you, as a manager, have in maintaining a qualified workforce? Comment briefly on the options discussed in the text. Answer: The options for maintaining a qualified workforce include career planning and development, work–life balance, compensation and benefits, retention and turnover, and labour–management relations. Each of these is described briefly below: Test Bank

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• • •

•

Work–life balance deals with how people balance the demands of work with personal and family needs. Among progressive employers, human resource policies and practices that support a healthy work–life balance are increasingly valued. A competitive wage and salary structure and a good benefits program can help to attract and retain highly competent employees. Retention and turnover deal with various replacement decisions ¾ that is, the management of promotions, transfers, retirements, and terminations. Each of these replacement decisions has different implications for the employing organization. Promotion and transfer shift people between positions within the organization. Retirements represent voluntary decisions to end one’s career. Termination is the involuntary and permanent dismissal of an employee. The adversarial approach to labour–management relations represents a “win-lose” conflict situation, in which both labour and management expend a lot of energy in prolonged conflict. A new and more progressive era of labour–management relations is emerging, as many unions and employers try to work together for their common good.

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243) What are the different types of benefits received by employees in organizations? Answer: Employee benefits packages include non-monetary forms of compensation that are intended to improve the work and personal lives of employees. Some benefits are required by law, such as contributions to Canada Pension Plan, unemployment insurance, and workers’ compensation insurance. Many organizations traditionally offered additional benefits in order to attract and retain highly qualified employees. These discretionary benefits include health care, retirement plans, pay for time not worked (personal days, vacations, and holidays), sick leave, and numerous other perks. Flexible benefits programs are increasingly common. They let the employee choose a set of benefits within a certain dollar amount. The trend is also toward more family-friendly benefits that help employees balance work and non-work responsibilities. These include child care, elder care, flexible schedules, parental leave, and part-time employment options, among others. Increasingly common as well are employee assistance programs that help employees deal with troublesome personal problems. Such programs may offer assistance in dealing with stress, counselling on alcohol and substance abuse, referrals for domestic violence and sexual abuse, and sources for family and marital counselling. Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 244) Discuss the advantages and disadvantages to an organization of implementing an early retirement incentive program. Answer: Early retirement incentive programs give workers financial incentives to retire early. The potential benefits for employers include the opportunity to lower payroll costs by reducing positions, replacing higher-wage workers with less expensive newer hires, and creating openings that can be used to hire workers with different, more current skills and talents. A disadvantage is when a valued and experienced employee takes advantage of the program, leaving the position vacant. The organization loses that employees contributions and knowledge. Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 245) Explain the role of labour unions in maintaining labour–management relations. Are labour unions as relevant in today’s work environment as they traditionally have been. Answer: Labour unions are organizations to which workers belong and that deal with employers on the workers’ behalf. They are found in many industrial and business occupations, as well as among public-sector employees like teachers, police officers, and government workers. Such unions serve as a collective “voice” for their members and act as bargaining agents to negotiate labour contracts with employers. These contracts specify the rights and obligations of employees and management with respect to wages, work hours, work rules, seniority, hiring, grievances, and other conditions of employment. The foundation of any labour and management relationship is collective bargaining, the process through which labour and management representatives negotiate, administer, and interpret labour contracts. It typically involves face-to-face meetings between labour and management representatives. During this time, a variety of demands, proposals, and counterproposals are exchanged. Several rounds of bargaining may be required before a contract is reached or a dispute over a contract issue is resolved. As you might expect, the collective bargaining process is time consuming and can lead to problems. Too often, labour and management sides view each other as “win-lose” adversaries. Ideally, the goal is a “win-win” outcome that offers benefits to labour in terms of fair treatment, and to management in terms of workforce quality. Arguments for the relevancy of labour unions will vary and may include such discussion Test Bank

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as the role of globalization, diversity in the workplace, traditional roles in the workplace changing, the evolving mission of labour unions and so forth. Learning Objective 13.4: Summarize how managers help organizations maintain a quality workforce. Section Reference 13.4: Maintaining a Quality Workforce Bloom’s: Synthesis Difficulty: Hard AACSB: Reflective Thinking

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CHAPTER 14 LEADING AND LEADERSHIP DEVELOPMENT Question type: True/False 1) The ability to get someone to do something you want done or to make things happen the way you want is called manipulation. Answer: False Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 2) For executive success to occur, the use of power should reflect the desire to influence and control others for the good of the group or organization as a whole. Answer: True Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 3) Managerial Power – Personal Power = Position Power. Answer: True Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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4) Reward power, coercive power, and legitimate power are different types of personal power. Answer: False Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 5) In a reward power relationship, the power is lost as soon as the value of the reward or the reward itself is taken away. Answer: True Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 6) Coercive power involves use of incentives such as pay raises, bonuses, promotions, special assignments, and verbal or written compliments. Answer: False Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 7) Legitimate power is the ability to influence through expertise. Answer: False Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 8) Morgan is a seasoned IT specialist and uses ‘expert power’ when offering to help the department manager in the selection, installation and training for a new networking system for the organization. Answer: True Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic 9) Networking power is the ability to influence the behaviour of other people through identification. Answer: False Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 10) When a manager’s charisma or interpersonal attractiveness is used to influence the behaviour of subordinates, the manager is using referent power. Answer: True Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic Answer: True Test Bank

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11) Visionary leadership describes a leader who brings to the situation a clear and compelling sense of the future as well as an understanding of the actions needed to get there successfully. Answer: True Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 12) Visionary leadership is based on serving others and helping them use their talents fully so that organizations benefit society. Answer: False Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 13) Servant leadership is follower-centred and committed to helping others in their work. Answer: True Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 14) Empowerment, through servant leadership, enables others to gain and use decision-making power. Answer: True Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Test Bank

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Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 15) In regard to servant leadership, “institutions function better when the idea, the dream, is to the fore, and the person, the leader, is seen as servant to the dream.” Answer: True Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 16) Followership considers the concepts of the excitement of leadership and the passivity of followers, however it does not consider the responsibility of a shared leadership climate a viable option. Answer: False Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 17) Trait theories of leadership address the question of: “What personal characteristics separate effective leaders from ineffective leaders?” Answer: True Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 18) Some personal traits, such as drive, self-confidence, creativity, cognitive ability, business Test Bank

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knowledge, motivation, flexibility, honesty, and integrity are considered to be important for leadership success. Answer: True Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 19) A leader who is production-centred will regularly monitor the performance results of employees. Answer: True Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 20) An effective leader will be largely production-centred and mildly employee-centred. Answer: False Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 21) Leadership styles are concerned with determining the validity of the recurring patterns of behaviours exhibited by a leader. Answer: True Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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22) An autocratic style of leadership emphasizes task over people, keeps authority and information within the leader’s tight control, and acts in a unilateral command-and-control fashion. Answer: True Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 23) A democratic style of leadership shows little concern for task, lets the group make decisions, and acts with a “do the best you can and don’t bother me” attitude. Answer: False Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 24) A laissez-faire style of leadership is committed to both task and people, getting things done while sharing information, encouraging participation in decision making, and helping people develop their skills and competencies. Answer: False Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 25) A manager who follows a laissez-faire style of leadership is known as an impoverished manager. Answer: True Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 26) Human relations leadership style emphasizes the consideration of human capital more than any other leadership style. Answer: True Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 27) Contingency approaches to leadership attempt to answer the question: “When and under what circumstances is a particular leadership style preferable to others?” Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 28) The basic premise of Fiedler’s contingency theory is that leadership success depends on the match between leadership style and situational demands. Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 29) In Fiedler’s contingency model, the least-preferred co-worker scale is used to measure a person’s leadership style. Test Bank

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Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 30) Fred Fiedler, the developer of the contingency theory of leadership, asserts that leadership style is relatively enduring and difficult to change and therefore leadership style must be fit to the situation. Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 31) The quality of leader–member relations measures the degree to which a position gives a leader power to reward and punish subordinates. Answer: False Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 32) Fred Fiedler’s research showed that both the task-oriented and the relationship-oriented leadership styles were effective all the time. Answer: False Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 33) A guiding proposition of Fiedler’s contingency theory of leadership is that a relationshiporiented style works best in low-control situations and a task-oriented style works best in highcontrol situations. Answer: False Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 34) The basic premise of the Hersey-Blanchard situational leadership model is that managers should adjust their leadership styles depending on the readiness of the followers to perform in a given situation. Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 35) According to the Hersey-Blanchard situational leadership model, employee readiness is determined by the followers’ ability, willingness, and confidence in performing required tasks. Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 36) In the Hersey-Blanchard situational leadership model, participating is a high-task, highTest Bank

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relationship style, and selling is a high-task, low-relationship style. Answer: False Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 37) In the Hersey-Blanchard situational leadership model, a manager who explains task directions persuasively and with much support is using the telling style. Answer: False Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 38) The four leadership styles in the Hersey-Blanchard situational leadership model are delegating, participating, instruction and selling. Answer: False Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 39) Robert House’s path–goal theory contributed to the recognition to the concept of leadership substitutes. Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Test Bank

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Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 40) The basic premise of House’s path–goal contingency leadership theory is that effective leaders clarify the path through which followers can achieve both task-related and personal goals. Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 41) According to House’s path–goal leadership model, directive leadership involves letting employees know what is expected, giving direction on what, when and how to complete a task or project, and clarifying the leader’s role in the group. On the other hand managers use supportive leadership will consult with employees by asking questions and using their suggestions when making a decision Answer: False Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Synthesis Difficulty: Hard AACSB: Analytic 42) According to House’s path–goal model, a manager is showing a participative leadership style when they set challenging goals for their employees, expect the highest level of performance and emphasize continuous improvement in performance. Achievement-oriented leadership involves doing things to make work more pleasant, treating group members as equals, being friendly and approachable, and showing concern for the well-being of subordinates. Answer: False Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Test Bank

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Bloom’s: Synthesis Difficulty: Hard AACSB: Analytic 43) According to House’s path–goal leadership model, supportive leadership is needed to increase confidence by emphasizing individual abilities and offering needed task assistance when worker self-confidence is low. Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 44) Follower characteristics include task structure, authority system, and work group. Answer: False Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 45) The ability, experience, and independence of subordinates; the clarity of organizational plans and formalization of rules; and routineness and availability of performance feedback can serve as effective substitutes for leadership. Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 46) The Leader-Member Exchange theory is the idea that in many leadership situations, not Test Bank

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everyone is treated the same by the leader. Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 47) In the LMX theory, the “in-group” members are considered the best performers and enjoy special and trusted relationships with the leaders that can translate into special assignments, privileges, and access to information. Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 48) The notion underlying the LMX theory is that as a leader and follower interact over time, their exchanges end up defining the follower’s role. Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 49) One of the implications of the LMX theory is that the nature of the exchange is determined by the leader and based on some presumed characteristic of the follower. Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Test Bank

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Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 50) Within the LMX theory, a high-quality exchange is usually based on perceived unfavourable personality, compatibility, and competency. Answer: False Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 51) The Vroom-Jago leader-participation model is designed to help leaders choose an appropriate decision-making method for any problem situation. Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 52) According to the Vroom-Jago leader-participation model, a power-oriented decision occurs when the leader makes the decision alone and then communicates it to the work group. Answer: False Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 53) According to the Vroom-Jago leader-participation model, a consultative decision occurs Test Bank

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when the leader makes the decision after receiving information, advice, or opinions from group members. Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 54) The consultative decision option of the Vroom-Jago leader-participation model is being used when the manager convenes the group, shares the problem, and then facilitates group discussion to make a decision. Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 55) The Vroom-Jago leader-participation theory indicates that a leader should use the more authority-oriented decision methods when the leader has the expertise needed to solve the problem; the leader is confident and capable of acting alone; others are likely to accept the decision the leader makes; and little or no time is available for discussion. Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 56) The potential disadvantage(s) of participative decision methods within the context of the Vroom-Jago leader-participation model include lost efficiency and the lack of usefulness when problems must be resolved immediately. Test Bank

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Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 57) Consultative decisions and group decisions contribute to leadership development by allowing others to gain experience in the problem-solving process. Answer: True Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 58) Transformational leaders use their personalities, character, and insight to inspire others while charismatic leaders are able to get people to put forth extraordinary effort and achieve extraordinary performance. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 59) Both transformational leaders and charismatic leaders are able to lead, inspire and motivate people in part due to the personalities and character. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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60) Transformational leadership is likely being used when followers remain loyal and devoted to the leader and strive for superior performance accomplishments. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 61) Using the power of personal reference and emotion to arouse others’ enthusiasm, faith, loyalty, pride, and trust in themselves describes the transformational leadership attribute of charisma. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 62) Helping others develop, removing performance obstacles, sharing responsibilities, and delegating truly challenging work describes the transformational leadership attribute of empowerment. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 63) Emotional intelligence is ability to manage our emotions in social relationships. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 64) A leader’s emotional intelligence has little or no influence on a leader’s effectiveness, especially in today’s senior management positions. Answer: False Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 65) The components of emotional intelligence include self-awareness, self-regulation, motivation, empathy, and social skill. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 66) Emotional intelligence is especially important to lower and middle managers and their leadership success. Answer: False Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 67) The gender similarities hypothesis states that males and females are not similar in terms of psychological properties. Answer: False Test Bank

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Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 68) The leadership double bind is a result of stereotyped expectations placed on leaders and their leadership style based on their gender. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 69) Women tend to exhibit more democratic and participative behaviours in their leadership approaches. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 70) Interactive leadership is typically attributed to men.. Answer: False Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 71) Given the current emphasis on shared power, communication, cooperation, and participation in new-form organizations, interactive leadership appears to be an excellent fit with the demands of a diverse workforce and the new workplace. Test Bank

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Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 72) Despite gender, future leadership success will require the capacity to lead through openness, positive relationships, support, and empowerment. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 73) Interactive leadership uses command-and-control use of position power to get work done. Answer: False Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 74) Moral leadership begins with personal integrity, a concept fundamental to the notion of transformational leadership. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 75) The concept of servant leadership fits with the concept of a moral leader. Test Bank

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Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 76) Authentic leadership activates performance through the positive psychological states of confidence, hope, optimism, and resilience. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 77) Character leaders are those with values, traits and virtues that prompt believability and trust through a variety of characteristics. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 78) Long-term, sustainable success can only be built upon a foundation of solid ethical behaviour. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 79) Integrity is an essential element of both transformational leadership and good old-fashioned Test Bank

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leadership. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 80) Without integrity a leader cannot be honest, credible or consistent in what they do. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 81) According to Peter Drucker, effective leadership is primarily based on being clever and not on being consistent. Answer: False Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 82) According to Peter Drucker, effective leadership should be viewed as “good old-fashioned hard work”. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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83) According to Peter Drucker, effective leadership should be viewed as the capacity to use charisma in transforming organizations and the ability to use charisma to influence both enthusiastic and recalcitrant followers. Answer: False Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 84) The saying “The buck stops here” is a leadership phrase coined by Peter Drucker. Answer: False Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 85) In the context of Drucker’s “old-fashioned” leadership, defining and establishing a sense of mission involves setting goals, priorities, and standards; keeping them visible; and maintaining them. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 86) According to Drucker’s concept of “old-fashioned” leadership, accepting leadership as a responsibility rather than a rank involves the leader having personal integrity, not blaming others when things go wrong, and actions that are consistent with what is said. Answer: True Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Analysis Test Bank

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Difficulty: Medium AACSB: Analytic Question type: Multiple Choice 87) Which of the following is a not function of leading? a) setting directions and objectives b) bringing together resources c) creating structures d) motivating commitment and hard work e) ensuring results Answer: d Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 88) The ability to get someone to do something you want done or to make things happen the way you want is called ___. a) leadership b) political behaviour c) manipulation d) control e) power Answer: e Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 89) Which of the following statements accurately describe the positive face of power? Test Bank

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a) It is the foundation of effective leadership. b) It is the ability to make things happen for the good of the group as a whole. c) It is the ability to make things happen for the good of the organization as a whole. d) all of the above e) none of the above Answer: d Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 90) Reward power, coercive power, and legitimate power are different types of ___. a) formal leadership b) position power c) informal leadership d) personal power e) directive leadership Answer: b Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 91) Which of the following is a basis of personal power? a) reward power b) coercive power c) legitimate power d) authority power e) referent power Answer: e Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Test Bank

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Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 92) Which of the following would not be considered a source of position power for a manager? a) the ability to give special monetary rewards to deserving subordinates b) possession of a charismatic personality c) the ability to recommend disciplinary action for subordinates d) being a high-ranking executive in the company e) the flexibility to schedule some subordinates into the most desirable job assignments Answer: b Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic 93) ___ is the ability to influence the behaviour of other people because of one’s capacity to offer positive outcomes to various business situations. a) Legitimate power b) Expert power c) Coercive power d) Referent power e) Reward power Answer: e Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 94) Which of the following accurately defines reward power? a) It is the capacity to offer something of value as a means of influencing other people. Test Bank

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b) Reward power is the ability to punish or withhold positive outcomes as a means of influencing other people. c) The ability to influence other people by virtue of formal authority, or the rights of office. d) It is the capacity to influence other people because of specialized knowledge. e) Reward power is the capacity to influence other people by personally identifying with them. Answer: a Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 95) Jamie is Ainsley’s manager and has suggested to Ainsley that if Ainsley can complete an important assignment by the end of the day, then Jamie would be able to give Ainsley two days of extra pay. Which of the following types of leadership powers is Jamie displaying? a) coercive power b) legitimate power c) expert power d) reward power e) referent power Answer: d Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic 96) Coercive power is the capacity to a) offer something of value as a means of influencing other people. b) influence other people by virtue of formal authority, or the rights of office. c) punish or withhold positive outcomes as a means of influencing other people. d) influence other people because of specialized knowledge. e) influence other people by personally identifying with them. Answer: c Test Bank

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Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 97) ___ is the ability to influence the behaviour of other people because of one’s capacity to punish or withhold positive outcomes. a) Legitimate power b) Expert power c) Coercive power d) Referent power e) Reward power Answer: c Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 98) Pat manages a transport company, and has discovered that one of the employees, Frances, is habitually late on deliveries. Pat has threatened to fire Frances if performance did not improve and deliveries continue to be later. What power has Pat exerted over Frances? a) coercive power b) legitimate power c) expert power d) reward power e) referent power Answer: a Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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99) ___ is the ability to influence the behaviour of other people because of one’s organizational position or status. a) Legitimate power b) Expert power c) Coercive power d) Referent power e) Reward power Answer: a Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 100) Which of the following is true of legitimate power? a) Legitimate power only be obtained through the use of incentives such as pay raises, bonuses, promotions, special assignments, and verbal or written compliments. b) This type of power can only be gained from experience and accomplishments as well as access to useful information. c) It is the right by virtue of one’s organizational position or status to exercise control over persons in subordinate positions. d) Legitimate power exists only when people expect rewards and a leader makes rewards inconsistently available. e) It is derived from charisma or interpersonal attractiveness. Answer: c Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 101) Taylor, a manager in a department store, has told Morgan to check the inventory in one of the largest display areas in the store. Morgan says this cannot be done straight away because of other job duties. Taylor tells Morgan to check the inventory now because as the boss Morgan must do whatever job related tasks Taylor sets out. Taylor is trying to use ___ power to Test Bank

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influence Morgan’s behaviour. a) personal b) referent c) legitimate d) coercive e) formal Answer: c Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic 102) Kaden, a store manager, asked Dakota, a store clerk, to stack cereal boxes at the back of the store. Dakota told Kaden that doing so would result in a drop in the sale of cereal boxes. Kaden asked Dakota to refrain from questioning Kaden’s judgment and instead to follow the instructions as given. What type of power did Kaden exert over Dakota? a) coercive power b) legitimate power c) expert power d) reward power e) referent power Answer: b Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic 103) Legitimate power differs from referent power in that legitimate power is the ability to influence through ____________ while referent power is the ability to influence through _________. a) authority; identification. b) skills and knowledge; authority. c) authority; punishment Test Bank

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d) punishment; identification. e) rewards; authority. Answer: a Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 104) Which of the following would not be considered a source of personal power for a manager? a) the ability to influence because of special expertise b) possession of a charismatic personality c) the ability to influence through personal identification d) holding a high-ranking title in the management hierarchy e) having specific knowledge to solve a problem Answer: d Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 105) Expert power is the capacity to ________. a) influence other people by virtue of formal authority, or the rights of office. b) influence other people because of specialized knowledge. c) offer something of value as a means of influencing other people. d) influence other people by personally identifying with them. e) punish or withhold positive outcomes as a means of influencing other people. Answer: b Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Comprehension Difficulty: Medium Test Bank

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AACSB: Analytic 106) Harper, who is very is skilled and knowledgeable in technical area, always makes it a point to always offer help to colleagues. Because Harper’s skill and knowledge is well known throughout the organization, everyone tends to trust Harper’s judgment. What type of power is Harper demonstrating? a) legitimate power b) expert power c) coercive power d) referent power e) reward power Answer: b Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic 107) A doctor is using ___ power when giving treatment options to a patient who is suffering from a debilitating disease. a) legitimate b) reward c) expert d) coercive e) referent Answer: c Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic 108) Expert power and referent power are different types of ___. a) formal leadership Test Bank

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b) position power c) informal leadership d) personal power e) transformational leadership Answer: d Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 109) When a manager uses networking power, the manager has the capacity to a) influence other people using specialized knowledge. b) influence other people through access to information and their contacts. c) punish or withhold positive outcomes as a means of influencing other people. d) influence other people because of their desire to identify personally with the manager. e) offer something of value as a means of influencing other people. Answer: b Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 110) When a manager’s charisma or interpersonal attractiveness is used to influence the behaviour of subordinates, the manager is using ___. a) referent power b) human relations leadership c) expert power d) position power e) participative leadership Answer: a Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Test Bank

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Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 111) Which of the following is true of referent power? a) Referent power is maintained only by protecting one’s credibility by not overstepping boundaries and pretending to have expertise that really isn’t there. b) This power type is based on serving others and helping them use their talents fully so that organizations benefit society. c) It never allows others to exercise power and achieve influence within an organization. d) Referent power can be developed and maintained through good interpersonal relationships that encourage the admiration and respect of others. e) It never allows managers to act in a unilateral fashion. Answer: d Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 112) Dana was asked by Riley, the department manager to take on a difficult assignment. Even though Dana was completely occupied with other tasks, Dana took on the assignment without hesitation. Dana’s motivation for taking on the assignment was the opportunity to develop a positive relationship with Riley. What power has Riley exerted over Dana? a) coercive power b) legitimate power c) expert power d) reward power e) referent power Answer: e Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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113) Vision, which is frequently associated with effective leadership, refers to ___. a) the leader’s capacity to plan, organize, and control b) a future that one hopes to create or achieve in order to improve upon the present state of affairs c) the ability to spontaneously take charge in a group situation d) the leader’s capacity to influence superiors e) the knowledge of when to use position power and when not use it Answer: b Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 114) ___ describes a leader who brings to the situation a clear and compelling sense of the future as well as an understanding of the actions needed to get there successfully. a) Visionary leadership b) Participative leadership c) Consultative leadership d) Charismatic leadership e) Transformational leadership Answer: a Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 115) Which of the following is not a core principle that should be practiced by managers who want to meet the challenges of visionary leadership? a) be a team player b) be a pioneer c) be a consistent role model of behaviour Test Bank

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d) be enthusiastic and inspire others to share a common vision e) be first with ideas and right in all you do Answer: e Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic 116) ___ describes a leader who is follower-centred and committed to helping others in their work. a) Visionary leadership b) Participative leadership c) Consultative leadership d) Servant leadership e) Charismatic leadership Answer: d Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 117) The form of leadership based on commitment to serving others, to helping people use their talents to full potential while working together to benefit society is called a) charismatic leadership. b) participative leadership. c) servant leadership. d) visionary leadership. e) selfless leadership. Answer: c Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 118) Which of the following accurately defines “empowerment”? a) Empowerment is the ability to manage emotions in social relationships. b) The ability to exercise dominating power over people to force them to be more productive defines what empowerment is. c) Empowerment is the ability to act with honesty, credibility, and consistency in putting values into action. d) Explaining task directions in a supportive and persuasive way. e) The process of allowing others to exercise power and achieve influence within an organization. Answer: e Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 119) ___is generated when a leader shifts the focus from themselves to others, allowing others to gain and use decision-making powers. a) Expert power b) Referent power c) Empowerment d) Coercive power e) Legitimate power Answer: c Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 120) Effective leaders empower others by providing them with the ___ to make decisions and act Test Bank

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independently within their areas of expertise. a) information, problem-solving techniques, team cohesiveness, and information technology b) responsibility, concern for people, concern for task, and supportive style c) authority, task directions, task orientation, and information technology d) trust, task needs, maintenance needs, and participation e) information, responsibility, authority, and trust Answer: e Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 121) Which of the following is not an effective method of empowering others? a) Provide employees with information and responsibility. b) Encourage others to take initiative and make decisions. c) Create an environment of cooperation, trust, and shared ownership of goals. d) Provide close supervision and tight control. e) Let others put their ideas and solutions into practice. Answer: d Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic 122) Chris is a manager who believes in being inclusive in decision making. In keeping with this philosophy Chris allows her subordinates to voice their opinion about relevant projects and believes in helping them use their talents fully so that the organization can benefit the society. Chris also empowers others by providing them with information, responsibility, authority, and trust to make decisions and act independently. Which of the following types of leadership styles does Chris follow? a) servant leadership b) autocratic leadership c) directive leadership Test Bank

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d) achievement-oriented leadership e) laissez-faire leadership Answer: a Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic 123) The leadership _________ approach to the study of leadership focuses on a leader’s personal characteristics as the primary determinants of leadership success. a) trait b) behavioural c) contingency d) situational e) path–goal Answer: a Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 124) When a leader enjoys influencing others to achieve shared goals, it can be said that the leader has the leadership trait of ___. a) dependability b) flexibility c) cognitive ability d) integrity e) motivation Answer: e Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 125) When a leader is said to have cognitive ability what does it typically indicate? a) The leader has high energy, displays initiative, and is tenacious. b) The leader is creative and original in his or her thinking. c) The leader has the intelligence to integrate and interpret information. d) The leader enjoys influencing others to achieve shared goals. e) The leader has confidence in his or her abilities. Answer: c Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 126) Traits that are common among successful leaders include all of the following except a) drive, motivation, and self-confidence. b) honesty and integrity. c) cognitive ability and business knowledge. d) being a people person. e) creativity and flexibility. Answer: d Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 127) Which of the following statements accurately describe the search for traits that characterize effective leaders? a) Certain personal traits do seem to identify successful leadership, although they must always be considered along with situational factors. b) Research indicates that physical traits such as height, weight, and physique have no relationship to leadership success. c) Some personal traits, such as drive, self-confidence, creativity, cognitive ability, business knowledge, motivation, flexibility, and honesty and integrity are considered to be important for Test Bank

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leadership success. d) All of the above statements are accurate. e) None of the above statements are accurate. Answer: d Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Evaluation Difficulty: Hard AACSB: Analytic 128) ___ is concerned with the recurring pattern of behaviours exhibited by a leader. a) Behavioural leadership theory b) Situational control c) Supportive leadership d) Leadership style e) Democratic leadership Answer: d Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 129) From the following statements identify the function of a leader who is production-centred. a) Displays sensitivity toward the needs of employees. b) Monitors performance results of employees. c) Shows trust in employees. d) Acts with supportiveness toward employees. e) Respects the feelings of employees. Answer: b Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Test Bank

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130) Which of the following is true of a leader who is production-centred? a) The leader allows employees to choose their own work. b) The leader lets employees take their own time to complete work. c) The leader sets clear work standards for employees. d) The leader maintains good social relations with employees. e) The leader shows trust in employees and allows them to make decisions regarding work. Answer: c Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 131) A manager who has high concern for task uses a leadership style that emphasizes all of the following except a) planning and defining work to be done. b) assigning task responsibilities. c) setting clear work standards. d) trusting subordinates. e) monitoring task performance. Answer: d Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 132) According to leader behaviour research, a manager who acts warm and supportive toward followers, maintains good social relations with them, respects their feelings, is sensitive to their needs, and shows trust in them is ___. a) high in concern for task b) high in concern for people c) low in concern for people d) low in concern for task e) high in concern for task, low in concern for people Test Bank

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Answer: b Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 133) When a leader is high in concern for task performance, that leader a) assigns task responsibilities to employees. b) maintains good social relations with employees. c) is sensitive toward employees’ needs. d) is supportive toward employees. e) shows trust in employees. Answer: a Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 134) An employee-centred leader a) monitors the performance of employees. b) urges task completion from employees. c) sets clear work standards for employees. d) maintains good social relations with employees. e) defines the work to be done by employees. Answer: d Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 135) When a leader is high in concern for people, that leader a) assigns task responsibilities. Test Bank

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b) urges task completion from employees. c) monitors the performance of employees. d) sets clear work standards for employees. e) acts with supportiveness toward employees. Answer: e Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 136) Which of the following characteristics refers to a leader practicing a human relations style of leadership? a) acting in a command-and-control fashion b) acting in a unilateral fashion c) acting with a “do the best you can and don’t bother me” attitude d) retaining authority and information e) emphasizing people over task Answer: e Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 137) Which of the following kinds of management traits would a human relations leader have? a) low concern for production; low concern for people b) low concern for people; high concern for production c) high concern for production; high concern for people d) high concern for people; low concern for production e) constantly changing concern for both people and production Answer: d Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Comprehension Difficulty: Medium Test Bank

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AACSB: Analytic 138) Addison is a manager who values maintaining social relationships with all of the employees in the department. Addison treats them like family and allows them to take days off even if it means that work will be compromised. Each employee’s performance is tracked and whenever performance is less than stellar Addison tries in whatever appropriate way to help the employee improve. What leadership style is Addison following? a) autocratic style b) human relations style c) laissez-faire style d) democratic style e) impoverished style Answer: b Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Application Difficulty: Medium AACSB: Analytic 139) Which of the following management traits would a democratic leader have? a) low concern for production; low concern for people b) low concern for people; high concern for production c) high concern for production; high concern for people d) high concern for people; low concern for production e) constantly changing concern for both people and production Answer: c Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 140) Which of the following is a characteristic of a democratic leader? a) getting things done while sharing information b) retaining authority and information c) acting in a unilateral fashion Test Bank

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d) acting in a command-and-control fashion e) acting with a “do the best you can and don’t bother me” attitude Answer: a Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 141) As the supervisor of four sales representatives, Pat encourages department staff to make their decisions as a group while making sure that they take all policies and procedures into consideration. Pat is using the ___ style of leadership. a) human relations b) laissez-faire c) democratic d) autocratic e) middle-of-road Answer: c Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 142) A(n) ___ of leadership shows little concern for task, lets the group make decisions, and acts with a “do the best you can and don’t bother me” attitude. a) moral style b) autocratic style c) laissez-faire style d) democratic style e) human relations style Answer: c Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 143) Which of the following management traits would a laissez-faire leader have? a) low concern for production; low concern for people b) low concern for people; high concern for production c) high concern for production; high concern for people d) high concern for people; low concern for production e) balanced and equal concern for people and production Answer: a Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 144) Kelly is the marketing manager for a local development company and has just handed the team their next project with the following instructions for project coordination: 1. This does not look like a high-profile project. 2. Do not update me on the day-to-day progress of this project. 3. Make all relevant decisions as a group; do not come to me unless absolutely necessary. 4. Do your best to finish the project on time. Which of the following leadership styles does Kelly employ? a) autocratic leadership style b) human relations style c) laissez-faire style d) democratic style e) impoverished manager style Answer: c Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Application Difficulty: Medium AACSB: Analytic 145) A(n) ___ of leadership emphasizes task over people, keeps authority and information within the leader’s tight control, and acts in a unilateral command-and-control fashion. Test Bank

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a) moral style b) autocratic style c) laissez-faire style d) democratic style e) human relations style Answer: b Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 146) Which of the following is a characteristic of an autocratic leader? a) emphasizes tasks over people b) lets team members make decisions c) shows little concern for tasks d) encourages participation in decision making e) helps others develop their skills and capabilities Answer: a Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 147) Which of the following management traits would an autocratic leader have? a) low concern for production; low concern for people b) low concern for people; high concern for production c) high concern for production; high concern for people d) high concern for people; low concern for production e) constantly changing concern for both people and production Answer: b Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Analysis Difficulty: Medium Test Bank

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AACSB: Analytic 148) Jordan is a manager who prioritizes efficiency over everything else. To achieve this Jordan micromanages all of the employees in the department and assigns them their tasks. Employees are not permitted to make independent decisions or participate in the decision-making process. If an employee needs time off they must make a formal request with a clear plan and timeline as to when their lost time, and work, will be made-up. Which leadership style does Jordan follow? a) servant leadership b) autocratic leadership c) directive leadership d) achievement-oriented leadership e) laissez-faire leadership Answer: b Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Application Difficulty: Medium AACSB: Analytic 149) Which of the following is another term for a Laissez-faire leader?. a) achievement-oriented b) team c) authority-obedience d) country club e) impoverished Answer: e Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 150) An autocratic leader may also be referred to as a _________ manager. a) country club b) team c) impoverished d) authority-obedience Test Bank

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e) achievement-oriented Answer: d Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 151) A(n) ___ manager follows a human relations style of leadership. a) team b) country club c) impoverished d) authority-obedience e) achievement-oriented Answer: b Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 152) ___ attempt to answer the question: “When and under what circumstances is a particular leadership style preferable to others?” a) Power-based approaches to leadership b) Trait approaches to leadership c) Behavioural approaches to leadership d) Contingency approaches to leadership e) Ethical approaches to leadership Answer: d Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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153) The basic premise of Fiedler’s contingency theory is that leadership success depends on ___. a) the manager’s relationship with the employees b) the manager’s ability to change styles, given the situation c) the match between leadership style and situational demands d) the personality of the manager and the employees e) the manager’s knowledge of the work situation Answer: c Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 154) In Fiedler’s contingency model, the ___ scale is used to measure a person’s leadership style. a) leader personality contingency b) leadership profile categorization c) least-preferred co-worker d) leader-participation contingencies e) leadership power concerns Answer: c Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 155) In Fiedler’s contingency model, a person’s leadership style is described as either ___ or ___. a) task motivated; relationship motivated b) team manager; impoverished manager c) delegating; participating d) selling; telling Test Bank

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e) supportive; achievement-oriented Answer: a Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 156) What are the three variables that determine a leader’s situational control according to Fiedler’s contingency theory? a) referent power, leadership style, and task structure b) personal power, leadership style, and leader–member relations c) expert power, task structure, and leader–member relations d) position power, task structure, and leader–member relations e) expert power, leadership style, and task structure Answer: d Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 157) According to Fiedler’s contingency model, the quality of leader–member relations measures the ___. a) degree to which a group supports a leader b) extent to which task goals and procedures are clearly spelled out c) extent to which a leader has authority over his or her supporters d) degree to which the position gives a leader power to reward subordinates e) degree to which the position gives a leader power to punish subordinates Answer: a Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 158) Assume you are the supervisor of a group of bank tellers. Your subordinates are highly supportive, their jobs are well defined, and you have clear authority to evaluate and reward their performance. Which of the following leadership styles would be most recommended based upon Fiedler’s theory? a) task-oriented b) relationship-oriented c) human relations d) team-oriented e) achievement-oriented Answer: a Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic 159) Suppose that the following features characterize the leadership situation in a specific work team: (1) The skills required in each team member’s job, the order in which tasks are to be performed, and the interdependencies among the various jobs are all clearly defined. (2) The supervisor frequently criticizes team members and readily punishes them because he has the power to do so. (3) Because the supervisor is punitive, the team members try to undermine his authority and sabotage his leadership. Which leadership style likely would be most effective in this situation? a) task-oriented b) relationship-oriented c) human relations d) team-oriented e) achievement-oriented Answer: b Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Test Bank

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Bloom’s: Evaluation Difficulty: Hard AACSB: Analytic 160) Which of the following is suggested by the Hersey-Blanchard situational leadership model? a) Successful leaders can only be visionary. b) Successful leaders only follow the servant leadership style. c) Successful leaders are all task motivated. d) Successful leaders may adjust their style of leadership. e) Successful leaders always stick to any one particular form of leadership style. Answer: d Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 161) The basic premise of the Hersey-Blanchard situational leadership model is that ___. a) managers should find situations that suit their leadership style b) managers should first define the situational demands of the work setting c) managers should determine the amount of situational control they believe they have in each situation d) managers should adjust their leadership styles depending on the readiness of the followers to perform in a given situation e) managers should use the leadership style that is most comfortable for them Answer: d Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 162) According to the Hersey-Blanchard’s situational leadership model, employee readiness is determined by ___. Test Bank

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a) ability, willingness, and confidence of the followers in performing required tasks b) position power, task structure, and leader–member relations c) task, relationship, and decision-making ability of the followers d) motivation, desire, and control of the leader e) intelligence, ability, and motivation of the followers Answer: a Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 163) Charlie is highly capable of performing all of the job-related duties and responsibilities required in terms of ability, willingness, and confidence. According to Hersey and Blanchard, which style would work best in this situation? a) telling b) selling c) directing d) delegating e) participating Answer: d Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic 164) According to the Hersey-Blanchard situational leadership model, the delegating style of leadership works best in a) low-readiness situations, where followers are unable and unwilling, or insecure. b) low-to-medium-readiness followers who are able but unwilling, or insecure. c) medium-to-high-readiness followers who are unable, but willing or confident. d) low-readiness followers who are unable but willing and insecure. e) high-readiness situations with able, willing, and confident followers. Answer: e Test Bank

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Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 165) Which of the following types of leadership styles follows a low-task, low-relationship feature according to the Hersey-Blanchard situational leadership model? a) instructing b) participating c) selling d) telling e) delegating Answer: e Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 166) According to the Hersey-Blanchard situational leadership model, the telling style of leadership works best in a) low-readiness followers who are unable but willing and insecure. b) low-readiness situations, where followers are unable and unwilling, or insecure. c) high-readiness situations with able, willing, and confident followers. d) medium-to-high-readiness followers who are unable, but willing or confident. e) low-to-medium-readiness followers who are able but unwilling, or insecure. Answer: b Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Test Bank

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167) Which of the following types of leadership styles follows a low-task, high-relationship feature according to the Hersey-Blanchard situational leadership model? a) instructing b) participating c) selling d) telling e) delegating Answer: b Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 168) In which of the following situations is the participating style of leadership recommended? a) One with low-to-medium-readiness followers who are able but unwilling, or insecure. b) Situations with medium-to-high-readiness followers who are unable but willing or confident. c) Where there are low-readiness followers who are unable but willing and insecure. d) One with low-readiness situations, where followers are unable and unwilling, or insecure. e) In situations where there is high-readiness with able, willing, and confident followers. Answer: a Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 169) The selling style of leadership is recommended for a) low-readiness followers who are unable but willing and insecure. b) low-to-medium-readiness followers who are able but unwilling, or insecure. c) medium-to-high-readiness followers who are unable, but willing or confident. d) high-readiness situations with able, willing, and confident followers. e) low-readiness situations, where followers are unable and unwilling, or insecure. Test Bank

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Answer: c Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 170) Which of the following types of leadership styles follows a high-task, high-relationship feature according to the Hersey-Blanchard situational leadership model? a) instructing b) participating c) selling d) telling e) delegating Answer: c Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 171) The basic premise of House’s path–goal contingency leadership theory is that ___. a) effective leaders should adapt their style to suit the employee b) since leadership style is part of the individual’s basic character, effective leaders will find a situation most suitable to their style c) managers can be taught the one best leadership style d) effective leaders clarify the path through which followers can achieve both task-related and personal goals e) effective leaders provide the motivation for their followers to achieve organizational objectives Answer: d Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Comprehension Test Bank

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Difficulty: Easy AACSB: Analytic 172) Which of the following is true of the path–goal theory? a) It disregards the tendency of leaders to develop special relationships with some team members. b) It advances the theory that that one leadership style can fit all situations in decision making. c) It promotes using just two types of leadership styles for varying situations. d) It advances theories against changing leadership styles according to situations. e) It advises leaders to shift among the four leadership styles in ways that fit situational needs. Answer: e Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 173) House’s path–goal leadership model advises managers to use leadership styles that complement situational needs. Which of the following statements accurately represents the advice provided by the path–goal model? a) When job assignments are ambiguous, directive leadership is needed to clarify task objectives and expected rewards. b) When worker self-confidence is low, supportive leadership is needed to increase confidence by emphasizing individual abilities and offering needed task assistance. c) When performance incentives are poor, participative leadership is needed to clarify individual needs and identify appropriate rewards. d) When task challenge is insufficient, achievement-oriented leadership is needed to set goals and raise performance aspirations. e) All of these are accurate statements. Answer: e Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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174) According to House’s path–goal leadership model, which of the following behaviours is part of a directive leadership style? a) showing concern for the status and needs of subordinates b) soliciting the suggestions of subordinates c) displaying confidence that subordinates are able to meet high standards d) treating subordinates as equals e) maintaining definite standards of performance Answer: e Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 175) Which of the following is true of directive leadership? a) When job assignments are unclear, directive leadership helps to clarify task objectives and expected rewards. b) When worker self-confidence is low, directive leadership can increase confidence by emphasizing individual abilities and offering needed assistance. c) When task challenge is insufficient in a job, directive leadership helps to set goals and raise performance aspirations. d) When performance incentives are poor, directive leadership can clarify individual needs and identify appropriate rewards. e) When a leader is short of ideas, directive leadership encourages workers to give their suggestions. Answer: a Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 176) According to House’s path–goal leadership theory, a manager who ___ is showing a supportive leadership style. Test Bank

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a) lets subordinates know what performance is expected b) urges subordinates to perform at their highest level c) consults with subordinates before making job changes d) treats subordinates as equals and acts friendly toward them e) uses subordinates’ suggestions in making decisions Answer: d Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 177) From the following, identify the function of the supportive leadership style in the path–goal leadership theory. a) setting challenging goals b) treating team members as equals c) expecting the highest levels of performance d) involving team members in decision making e) clarifying the leader’s role in a group Answer: b Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 178) Which of the following is true of supportive leadership? a) When task challenge is insufficient in a job, supportive leadership helps to set goals and raise performance aspirations. b) When worker self-confidence is low, supportive leadership can increase confidence by emphasizing individual abilities and offering needed assistance. c) When a leader is short of ideas, supportive leadership encourages workers to give their suggestions. d) When performance incentives are poor, supportive leadership might clarify individual needs and identify appropriate rewards. e) When job assignments are unclear, supportive leadership helps to clarify task objectives and Test Bank

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expected rewards. Answer: b Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 179) According to the path–goal leadership theory, which of the following is highlighted in an achievement-oriented leadership style? a) showing concern for the well-being of subordinates b) clarifying the leader’s role in a group c) emphasizing continuous improvement in performance d) consulting team members and asking for suggestions e) treating team members as equals Answer: c Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 180) Which of the following is true of achievement-oriented leadership? a) When performance incentives are poor, achievement-oriented leadership helps to clarify individual needs and identify appropriate rewards. b) When a leader is short of ideas, achievement-oriented leadership encourages workers to give their suggestions. c) When job assignments are unclear, achievement-oriented leadership helps to clarify task objectives and expected rewards. d) When task challenge is insufficient in a job, achievement-oriented leadership helps to set goals and raise performance aspirations. e) When worker self-confidence is low, achievement-oriented leadership can increase confidence by emphasizing individual abilities and offering needed assistance. Answer: d Test Bank

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Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 181) Identify the function emphasized by participative leadership from the following statements. a) setting challenging goals b) expecting the highest levels of performance c) maintaining definite standards of performance d) involving team members in decision making e) clarifying the leader’s role in a group Answer: d Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 182) Which of the following is true of participative leadership? a) When task challenge is insufficient in a job, participative leadership helps to set goals and raise performance aspirations. b) When worker self-confidence is low, participative leadership can increase confidence by emphasizing individual abilities and offering needed assistance. c) When performance incentives are poor, participative leadership helps to clarify individual needs and identify appropriate rewards. d) When work is not scheduled, participative leadership can schedule work in an orderly manner. e) When job assignments are unclear, participative leadership helps to clarify task objectives and expected rewards. Answer: c Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic Test Bank

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183) Avery and Jean are managers. Avery spends a lot of time scheduling work to be done and providing guidance on its accomplishment. Jean takes great care to listen to subordinates’ concerns and act friendly toward them. In the terminology of House’s path–goal theory, Avery is acting as a(n) ___ leader, while Jean is acting as a(n) ___ leader. a) directive; achievement-oriented b) directive; supportive c) achievement-oriented; participative d) achievement-oriented; supportive e) autocratic; democratic Answer: b Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic 184) Sean, a young manager, strongly believes that all of the employees in the department have the potential to accomplish better results on their jobs. Sean believes that setting bold and ambitious objectives for the team members will enhance their overall performance levels. According to the path–goal theory, which of the following leadership styles has Sean adopted? a) directive leadership b) supportive leadership c) telling leadership d) participative leadership e) achievement-oriented leadership Answer: e Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic 185) When it comes to performing at work, Charlie the sales manager makes sure to consult with all department employees on different strategies to solve work-rated problems, especially when it Test Bank

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comes to complicated and/or disgruntled customers. According to path–goal theory, Charlie is demonstrating which leadership style? a) supportive leadership b) participative leadership c) achievement-oriented d) cooperative leadership e) directive leadership Answer: b Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic 186) When one of Morgan’s employees faces a major challenge such as not meeting their targets, sales manager Morgan provides insight on how to deal with the challenge, using wisdom from having twenty years of experience in the sales field. According to path–goal theory, Morgan is demonstrating which leadership style? a) supportive leadership b) participative leadership c) achievement-oriented d) cooperative leadership e) directive leadership Answer: e Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Application Difficulty: Medium AACSB: Analytic 187) Aspects of the work setting, and the people involved that can reduce the need for a leader’s personal involvement are referred to as ___. a) leadership aids b) corporate baby-sitters c) leader clones Test Bank

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d) substitutes for leadership e) mock leaders Answer: d Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 188) Which of the following notions is central to the leader–member exchange theory? a) When worker self-confidence is low, supportive leadership can increase confidence by emphasizing individual abilities and offering needed assistance. b) There is a tendency for leaders to develop special relationships with some team members, even to the point where not everyone is always treated in the same way. c) Leaders adjust their leadership styles according to the situation. d) Good leadership depends on the match or fit between a person’s leadership style and situational demands. e) Leaders are most effective when they make decisions in ways that best fit a problem situation. Answer: b Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 189) The tendency to develop “special” relationships with some team members is a central theme in a) the Hersey-Blanchard Model. b) the Blake-Mouton Managerial Grid. c) the Leader–Member Exchange Theory. d) the AMX Theory. e) the Path–goal Theory. Answer: c Learning Objective 14.3: Identify how situational contingencies influence leadership Test Bank

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effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 190) The notion that as a leader and follower interact over time their exchanges end up defining the follower’s role is a notion which underlies a) the House-Goal Theory. b) the LMX Theory. c) the Jungian Model. d) the Hersey-Blanchard Model. e) the Path–goal Theory. Answer: b Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 191) “Out-group” members a) enjoy the same privileges as the “in-group.” b) do not enjoy the same privileges as the “in-group.” c) have sound reasons to file discrimination charges against the leaders. d) often give privileges to the leaders. e) have special and trusted relationships with the leaders. Answer: b Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 192) Members of the “in-group” receive Test Bank

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a) more favourable performance evaluations than those in the “out-group.” b) less favourable performance evaluations than those in the “out-group.” c) no performance evaluations. d) less frequent performance evaluations. e) the autonomy to decide whether or not to be evaluated. Answer: a Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 193) The follower’s role ends up being defined as high-exchange or low-exchange through the influence of a) personality similarities or differences with the leader. b) interaction opportunities with the leader. c) the follower’s competencies or lack thereof. d) all of the above e) none of the above Answer: d Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 194) An implication of the leader-member exchange (LMX) Theory is a) the nature of the exchange is fated on the day the follower is hired. b) the nature of the exchange is determined by the leader and based on some presumed characteristic of the follower. c) the nature of the exchange is unimportant, only the leader is important. d) members of leaders’ “in-groups” are more prone to turnover than are members of “outgroups.” e) whichever of the two groups that an employee is in has no bearing on his or her relationship with the leader. Test Bank

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Answer: b Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 195) A low-LMX relationship is based on a) perceived favourable personality, compatibility and competency by the leader. b) perceived unfavourable personality, compatibility and competency by the leader. c) no perception at all. d) guesswork. e) mutual indifference. Answer: b Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 196) The Vroom-Jago leader-participation model is designed to ___. a) enable leaders to define their leadership style b) enable leaders to define the situational characteristics of the work setting so that the best leadership style can be used c) help leaders choose an appropriate decision-making method for any problem situation d) help leaders develop suitable leadership traits e) provide ready-made decisions concerning leadership situations Answer: c Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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197) According to the Vroom-Jago leader-participation model, a(n) ___ occurs when the leader makes the decision alone and then communicates it to the work group. a) authority decision b) delegating decision c) power-oriented decision d) consultative decision e) group decision Answer: a Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 198) According to the Vroom-Jago leader-participation model, a(n) ___ occurs when all team members participate in making a decision. a) authority decision b) employee involvement decision c) middle-of-road management decision d) consultative decision e) group decision Answer: e Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 199) The Vroom-Jago leader-participation model identifies several different decision-making options that are available for managers and leaders. The ___ option is being used when the manager or leader makes the decision after convening the group, sharing the problem, and consulting with everyone to get their suggestions. a) decide-alone b) consult individually Test Bank

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c) consult-with-group d) facilitate e) delegate Answer: c Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 200) The Vroom-Jago leader-participation model identifies several different decision-making options that are available for managers and leaders. The ___ option is being used when the manager or leader convenes the group and delegates to group members the authority to define the problem and make a decision. a) decide-alone b) consult individually c) consult-with-group d) facilitate e) delegate Answer: e Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 201) Which of the following statements accurately describes the Vroom-Jago leaderparticipation model? a) Problem situations are characterized in terms of decision quality, decision acceptance, and decision time. b) Decision quality is based on who has information that is needed for problem solving. c) Decision acceptance is based on the importance of subordinate acceptance to eventual solution implementation. d) Decision time is based on the time available to make and implement the decision. e) Each of the above statements provides an accurate description of the Vroom-Jago leaderparticipation model. Test Bank

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Answer: e Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 202) A transformational leader use their ___ to inspire followers. a) personality b) authority c) position d) power e) expertise Answer: a Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 203) ___ leaders develop special leader–follower relationships and inspire followers in extraordinary ways. a) Participative b) Charismatic c) Transformational d) Transactional e) Old-fashioned Answer: b Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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204) Which of the following is a signal that transformational leadership is likely being used? a) Followers are enthusiastic about the leader and his or her ideas. b) Followers work hard to support the leader. c) Followers remain loyal and devoted to the leader. d) Followers strive for superior performance accomplishments. e) Followers become less loyal to the leader as time goes on. Answer: c Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 205) The characteristics of ___ help them to clearly frame moral dilemmas, transparently respond to them, and serve as ethical role models. a) transactional leaders b) transformational leaders c) good old-fashioned leaders d) charismatic leaders e) authentic leaders Answer: e Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 206) A company leader who can inspire followers above their own self interests and have a profound effect on employees’ performance is known as ___ leader. a) transactional b) improvise c) informational d) transformational e) laissez-faire Answer: d Test Bank

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Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 207) The pathway to transformational leadership starts with ___. a) discharging any decision-making powers that a leader could have b) promising monetary incentive to incite interest in followers c) a leader adopting a unilateral and command-and-control style of leading d) a willingness to bring real emotion to the leader–follower relationship e) using coercive measures to influence the behaviour of followers Answer: d Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 208) Having ideas and a clear sense of direction; communicating them to others; and developing excitement about accomplishing shared “dreams” describe the transformational leadership attribute of ___. a) vision b) charisma c) symbolism d) empowerment e) intellectual stimulation Answer: a Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 209) Helping others develop, removing performance obstacles, sharing responsibilities, and delegating truly challenging work describes the transformational leadership attribute of ___. Test Bank

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a) vision b) charisma c) symbolism d) empowerment e) intellectual stimulation Answer: d Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 210) Daniel Goleman’s work on leadership development emphasized the influence of a leader using their ___. a) educational quotient b) emotional intelligence c) cultural intelligence d) curiosity quotient e) intelligence quotient Answer: b Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 211) According to Daniel Goleman, which of the following influences a leader to be successful? a) the ability to offer something of value as a means of influencing other people b) the ability to punish or withhold positive outcomes as a means of influencing other people c) the ability to have a clear sense of the future d) the ability to monitor the performance results of employees e) the ability to manage emotions in social relationships Answer: e Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 212) Which of the following is true of leaders with high emotional intelligence? a) They work on disruptive impulses. b) They are able to empathize with others. c) They always make authority decisions. d) They lack the ability to emphasize continuous improvement. e) They are less capable at establishing rapport with others. Answer: b Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 213) Which of the following emotional intelligence competencies does a leader possess when they are able to empathize with others? a) social awareness b) self-management c) relationship management d) self-awareness e) motivation and persistence Answer: a Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 214) A leader who possesses the emotional competency of self-awareness has the ability to a) offer something of value as a means of influencing other people. b) establish rapport with others and to build social capital through relationships and networks. c) understand their own moods and emotions, and to understand their impact on their own work and on others’ work. d) work hard for reasons other than money and status. Test Bank

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e) understand the emotions of others and to use this understanding to better relate to them. Answer: c Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 215) The components of emotional intelligence include all of the following except a) the ability to understand one’s own moods and emotions and understand their impact on one’s work and on others. b) the ability to think before acting, and to control otherwise disruptive impulses. c) the ability to work hard with persistence, and for reasons other than money and status. d) the ability to establish appropriate work goals for others, and to provide the necessary task structures for achieving them. e) the ability to understand the emotions of others, and to use this understanding to better relate to others. Answer: d Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 216) Which of the following is true of authentic leadership? a) It uses coercive measures to influence the behaviour of followers. b) It allows others to exercise power and achieve influence within an organization. c) It helps to establish rapport with others and to build social capital through relationships and networks. d) It offers something of material value as a means of influencing people. e) It activates positive psychological states to achieve self-awareness and positive self-regulation. Answer: e Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 217) Female leaders tend to rely on the ___ leadership approach and men tend to rely on the ___ leadership approach. a) assertive; laissez-faire b) transactional; transformational c) interactive; transactional d) transactional; interactive e) laissez-faire; democratic Answer: c Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 218) Male leaders tend to exhibit ___ and ___ behaviours in their leadership approaches. a) assertive; directive b) supportive; directive c) laissez-faire; supportive d) assertive; democratic e) democratic; supportive Answer: a Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 219) Given the current emphasis on shared power, communication, cooperation, and participation in new-form organizations, ___ leadership appears to be an excellent fit with the demands of a diverse workforce and the new workplace. a) assertive b) transactional c) interactive d) country club Test Bank

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e) laissez-faire Answer: c Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 220) ___ is leadership by moral standards that meet the ethical test of being “good” and not “bad,” of being “right” and not “wrong.” a) Good old-fashioned leadership b) Proper transformational leadership c) Ethical leadership d) Charismatic leadership e) Right-headed transactional leadership Answer: c Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 221) Which of the following statements about ethical leadership is/are accurate? a) Long-term, sustainable success can only be built upon a foundation of solid ethical behaviour. b) Leaders should try to be ethical out of fear of being caught for doing something wrong. c) Ethical leaders can act with confidence, knowing that their actions are beyond reproach. d) a and c e) a, b, and c Answer: d Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic

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222) ___ is an essential element of transformational leadership and good old-fashioned leadership. a) Initiating structure b) Consideration c) Employee-centredness d) Country club management e) Integrity Answer: e Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 223) In the context of ethical leader behaviour, a leader who ___ earns the trust of followers. a) exhibits the task-oriented leadership style b) is visionary c) exercises the leader behaviour of consideration d) acts as a transformational leader e) has integrity Answer: e Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Comprehension Difficulty: Hard AACSB: Analytic 224) Jordan, a young manager, was recently asked to repress a growing demand in the team for a team raise. Management has promised Jordan a bonus if this could be achieved. Because of Jordan’s strong ethical principles, Jordan refused the offer and instead supported the team’s demand. Jordan’s support and reassurance instilled confidence in the team, which in turn helped increase team productivity. Eventually, management gave in to the team’s demand. Which of the following types of leadership did Jordan display? a) achievement-oriented leadership b) moral leadership c) directive leadership d) autocratic leadership Test Bank

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e) interactive leadership Answer: b Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Application Difficulty: Medium AACSB: Analytic 225) According to Peter Drucker, effective leadership should be viewed as ___. a) an outward manifestation of personal charisma b) good “old-fashioned” hard work c) the ability to inspire followers d) the capacity to use charisma in transforming organizations e) the ability to use charisma to influence both enthusiastic and recalcitrant followers Answer: b Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 226) According to Drucker’s concept of “old-fashioned” leadership, accepting leadership as a responsibility, rather than a rank, involves having ___. a) leaders who surround themselves with talented people b) leaders who are not afraid to develop strong and capable subordinates c) followers who believe the leader means what he or she says d) a and b e) a and c Answer: d Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic

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227) In the context of Drucker’s “old-fashioned” leadership, earning and keeping the trust or others involves which of the following elements? a) The leader has personal integrity. b) Good leaders do not blame others when things go wrong. c) The followers believe that the leader’s actions will be consistent with what is said. d) a and b e) a and c Answer: e Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Question type: Essay 228) Define vision and explain the concept of visionary leadership. Answer: Vision is a clear sense of the future. It is a future that one hopes to create or achieve in order to improve upon the present state of affairs. But simply having the vision of a desirable future is not enough. Truly exceptional leaders are really good at turning their visions into accomplishments. The term visionary leadership describes a leader who brings to the situation a clear and compelling sense of the future, as well as an understanding of the actions needed to get there successfully. This means having a clear vision, communicating the vision, and getting people motivated and inspired to pursue the vision in their daily work. Visionary leadership gives meaning to people’s work and it makes what they do seem worthy and valuable. Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 229) Briefly describe the terms leadership, power and empowerment. Discuss how are these concepts interrelated? Answer: Leadership is the process of inspiring others to work hard to accomplish important tasks. Power is the ability to get someone else to do something you want done or to make things Test Bank

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happen the way you want for the good of the group or organization as a whole. Empowerment is the process through which managers enable and help others to gain power and achieve influence within the organization. Power in organizations is not a “zero-sum” quantity. Power can be expanded through leadership that involves other people. This can be accomplished by doing the following: • Getting others involved in selecting their work assignments and the methods for accomplishing tasks. • Creating an environment of cooperation, information sharing, discussion, and shared ownership of goals. • Encouraging others to take initiative, make decisions, and use their knowledge. • Finding out what others think and let them help design the solutions when problems arise. • Staying out of the way; giving others the freedom to put their ideas and solutions into practice. • Maintaining high morale and confidence by recognizing successes and encouraging high performance. By empowering others, the leader becomes more influential and better able to exercise leadership. Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 230) What is servant leadership and why is it important in the wake of past scandals such as Enron and WorldCom? Answer: Servant leadership is based on a commitment to serving others, rather than one’s own self interests. It strives to encourage others to use their talents to full potential while working together for the organizations that benefit society. In shifting its focus from “self” to others, servant leadership generates empowerment. This is the process through which managers enable and help others gain power and achieve influence within the organization. Servant leaders empower others by providing them with the information, authority, responsibility, and trust to make decisions and act independently. For the examples related to Enron and WorldCom, especially Enron points should be made about how the employees, particularly the sales staff followed management directives blindly and willingly. Learning Objective 14.1: Discuss leadership and explain its foundations in power, vision, and service. Section Reference 14.1: The Nature of Leadership Bloom’s: Synthesis Difficulty: Hard AACSB: Reflective Thinking Test Bank

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231) List and describe the personal traits of successful leaders identified by Shelley Kirkpatrick and Edwin Locke. Answer: The following are the personal traits of successful leaders identified by Shelley Kirkpatrick and Edwin Locke: Drive—Successful leaders have high energy, display initiative, and are tenacious. Self-confidence—Successful leaders trust themselves and have confidence in their abilities. Creativity—Successful leaders are creative and original in their thinking. Cognitive ability—Successful leaders have the intelligence to integrate and interpret information. Job-relevant knowledge—Successful leaders know their industry and its technical foundations. Motivation—Successful leaders enjoy influencing others to achieve shared goals. Flexibility—Successful leaders adapt to fit the needs of followers and the demands of situations. Honesty and integrity—Successful leaders are trustworthy; they are honest, predictable, and dependable. Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 232) What is leadership style? Explain how concern for task and concern for people are related to leadership style. Answer: Leadership style refers to the recurring pattern of behaviours exhibited by leader. Research on leadership behaviour has revealed two basic underlying dimensions: (1) concern for the task to be accomplished, and (2) concern for the people doing the work. A leader high in concern for task engages in the following behaviours: plans and defines work to be done, assigns task responsibilities, sets clear work standards, urges task completion, and monitors performance results. A leader high in concern for people engages in the following behaviours: acts warm and supportive toward followers, develops social rapport with followers, respects the feelings of followers, is sensitive to followers’ needs, and shows trust in followers. Different combinations of concern for task and concern for people define specific leadership styles. The Classic leadership style grid provides a convenient way for categorizing different leadership styles in relation to concern for task (or production) and concern for people. The Grid identifies the following styles: • Team management is the preferred leadership style; it reflects a high concern for both people and production. • Authority-obedience management reflects a high concern for production and a low concern for people. • Country club management reflects a high concern for people and a low concern for production. • Impoverished management reflects a low concern for both production and people. Test Bank

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Middle-of-road management is non-committal with respect to both production and people concerns.

Learning Objective 14.2: Describe key leader behaviours that impact leadership effectiveness. Section Reference 14.2: Leadership Traits and Behaviours Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 233) What are the four leadership styles identified by Robert House that can add value in different types of situations for a leader? Answer: Robert House believes that a leader can use these four leadership styles and actually shift back and forth among them: Directive leadership—letting followers know what is expected; giving directions on what to do and how; scheduling work to be done; maintaining definite standards of performance; clarifying the leader’s role in the group. Supportive leadership—doing things to make work more pleasant; treating team members as equals; being friendly and approachable; showing concern for the well-being of subordinates. Achievement-oriented leadership—setting challenging goals; expecting the highest levels of performance; emphasizing continuous improvement in performance; displaying confidence in meeting high standards. Participative leadership—involving team members in decision making; consulting with them and asking for suggestions; using these suggestions when making decisions. Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 234) Discuss the similarities and differences in any two of the following leadership models: the Fiedler, Hersey-Blanchard, House, and Vroom-Jago contingency models of leadership. What guidance does each contingency model provide for leaders? Answer: Fiedler’s contingency model is based on the premise that leadership success depends on a match between leadership style and situational demands. Fiedler argues that leadership style is part of one’s personality, and is therefore enduring and relatively difficult to change. Consequently, leadership style¾task motivated or relationship motivated¾must be fit to the situation. The amount of situational control¾as indicated by the quality of leader–member relations (good or poor), the degree of task structure (high or low), and the amount of position power (strong or weak)¾is crucial to determining the correct style-situation fit. Fiedler’s theory proposes that a task-oriented leader will be most successful in either very favourable (high Test Bank

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control) or very unfavourable (low control) situations, whereas a relationship-oriented leader will be most successful in situations of medium control. The Hersey-Blanchard situational model suggests that successful leaders adjust their styles depending on the readiness of followers to perform in a given situation. Readiness refers to how able, willing, and confident followers are in performing required tasks. According to this model, there are four possible leadership styles that result from different combinations of task-oriented (i.e., guidance required) and relationship-oriented (i.e., support required) behaviours. These alternative leadership styles are: • Delegating: Allowing the group to make task decisions and take responsibility for them; a low-task, low-relationship style. This style works best in high-readiness situations. • Participating: Emphasizing shared ideas and participative decisions on task directions; a low-task, high-relationship style. This style works best in low-to-medium-readiness situations. • Selling: Explaining task directions in a supportive and persuasive way; a high-task, highrelationship style. This style works best in medium- to high-readiness situations. • Telling: Giving specific task directions and closely supervising work; a high-task, lowrelationship style. This style works best in low-readiness situations. Hershey and Blanchard believe the leader’s style can and should be changed as followers mature over time. If the correct leadership styles are used in lower readiness situations, followers will “mature” and grow in ability, willingness and confidence. According to House’s path–goal theory, effective leaders: clarify the paths through which followers can achieve both task-related and personal goals, help people progress along these paths, remove barriers to goal accomplishment, and provide appropriate rewards for task accomplishment. Four leadership styles are used in dealing with path–goal relationships. These four leadership styles are: • Directive leadership: Letting subordinates know what’s expected; giving directions on what to do and how; scheduling work to be done; maintaining definite standards of performance; and clarifying the leader’s role in the group. • Supportive leadership: Doing things to make the work pleasant; treating group members as equals; being friendly and approachable; and showing concern for the well-being of subordinates. • Achievement-oriented leadership: Setting challenging goals; expecting the highest levels of performance; emphasizing continuous improvement in performance; and displaying confidence in meeting high standards. • Participative leadership: Involving subordinates in decision making; consulting with subordinates; asking for suggestions from subordinates; using subordinates’ suggestions when making decisions. The path–goal model advises managers to always use leadership styles that complement situational needs. An effective leader contributes things that are not already present (i.e., he/she avoids being redundant). The Vroom-Jago leader-participation model helps a leader choose the method of decision making that best fits the nature of the problem situation. An effective leader is able to consistently choose and implement the decision-making alternative that is most appropriate for the situation. These decision-making options are as follows: • Decide-alone: The manager decides how to solve the problem and communicates the decision to the group. Test Bank

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Consult individually: The manager makes the decision after sharing the problem and consulting individually with group members to get their suggestions. • Consult-with-group: The manager makes the decision after convening the group, sharing the problem, and consulting with everyone to get their suggestions. • Facilitate: The manager convenes the group, shares the problem, and then facilitates group discussion to make a decision. • Delegate: The manager convenes the group and delegates to group members the authority to define the problem and make a decision. A leader should use more authority-oriented decision methods when he or she has sufficient information and expertise, acceptance of the decision by others is not critical for implementation, and there is not adequate time for true participation. A leader should use more group-oriented and participative decision methods when the followers have the information and expertise that the leader lacks, acceptance of the decision by others is critical for implementation, and adequate time is available for true participation. Using the participative decision method helps to improve decision quality and decision acceptance and assists in developing leadership potential in other people. However, it takes more time Learning Objective 14.3: Identify how situational contingencies influence leadership effectiveness. Section Reference 14.3: Contingency Approaches to Leadership Bloom’s: Synthesis Difficulty: Hard AACSB: Reflective Thinking 235) Explain emotional intelligence and its components. How would you evaluate your personal competency with respect to the components of emotional intelligence? How might a person’s level of emotional intelligence influence his/her effectiveness as a leader? Answer: Emotional intelligence (EI) is both the ability to understand emotions in one’s self and others and the ability to use that understanding to guide behaviour. There are five components of emotional intelligence in which people should strive to develop competency. The students should evaluate themselves against these components, which are: • Self-awareness––the ability to understand one’s own moods, emotions, and drives, and how they affect others. • Self-regulation––the ability to think before acting and to control disruptive impulses or moods. • Motivation––the ability to work for more than money or status, and to work with perseverance and high energy. • Empathy––the ability to understand the emotions of other people and deal with others according to their emotional states. • Social skill––the ability to manage relationships, build interpersonal networks, and establish social support. Technical (or knowledge-based) skills and cognitive (or analytical) skills are threshold or baseline capabilities for leadership. Leadership excellence depends on emotional intelligence in addition to these threshold capabilities. Thus, a person’s effectiveness as a leader will be Test Bank

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diminished if they do not possess sufficient emotional intelligence in addition to technical and cognitive skills. Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Synthesis Difficulty: Hard AACSB: Reflective Thinking 236) Why is moral leadership important? What can people do to improve their capabilities to provide moral leadership? Answer: An organization without moral leadership is an organization adrift in the tumultuous sea of global competition and rapid change. Moral leadership provides consistent direction regarding decisions and actions that are fair and just for the organization and all of its stakeholders. An important element of moral leadership is integrity ¾ the leader’s honesty, credibility, and consistency in putting values into action. People can improve their capacity for moral leadership by ensuring that their actions and personal examples set high ethical standards for others to follow. Those in leadership roles should also recognize that they have a moral obligation to supply the necessary spark to awaken the potential of each individual to take the initiative in performing leader-like acts. Finally, moral leaders instil a sense of ownership in followers by being truly respectful of others and helping. Learning Objective 14.4: Summarize the challenges of personal leadership development. Section Reference 14.4: Personal Leadership Development Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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CHAPTER 15 INDIVIDUAL BEHAVIOUR Question type: True/False 1) Perception affects the impressions we form of ourselves, other people, and daily life experiences. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 2) The process through which people receive, organize, and interpret information from their environment is called impression management. Answer: False Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 3) Individual perceptions are influenced by values, cultural backgrounds, and personal and situational circumstances. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 4) A healthy psychological contract offers a balance between the contributions of individuals made on behalf of their organization and the inducements they receive. Test Bank

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Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 5) The ideal work situation is one in which the exchange of values in the psychological contract favours the employee. Answer: False Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 6) The idea of a psychological contract between an individual and an organization suggests that the individual also makes contributions in exchange for inducements. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 7) Attribution is the process of developing causal explanations for things that happen to people. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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8) Fundamental attribution error neglects internal explanations for poor-quality work. Answer: False Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 9) Attribution theory describes how people try to explain the behaviour of themselves and other people in various situations that are encountered in the workplace. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 10) A supervisor who attributes a worker’s low productivity on laziness when the worker is using a machine that breaks down frequently is an example of self-serving bias. Answer: False Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 11) A fundamental attribution error occurs when a person overestimates internal factors and underestimates external factors as influences on his or her behaviour. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic Test Bank

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12) Self-serving bias attributes personal success to internal causes and personal failures to external causes thereby creating a false sense of confidence. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 13) The self-serving bias and the fundamental attribution error provide explanations of the factors that people use in explaining their own and others’ behaviour. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 14) Stereotypes are always negative and ill-intended. Answer: False Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 15) Stereotyping occurs when attributes commonly associated with a group are oversimplified and assigned to an individual. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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16) The glass ceiling effect is an example of workplace stereotyping. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 17) Assigning one’s personal attributes to another individual is an instance of the halo effect. Answer: False Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 18) A halo effect occurs in an interview situation when one attribute is used to develop an overall impression of a person or situation. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 19) An employee for a mid-sized firm was told during their most recent performance evaluation that they would not be receiving a pay increase, other than a cost of living adjustment which all employees receive because they did not smile in the morning. The employee was told this even though their work was excellent, and was actually superior to their colleagues work. They were further told that a smile in the morning goes a long way to creating a positive relationship with their work colleagues. This is an example of the halo effect. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence Test Bank

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behaviour. Section Reference 15.1: Perception Bloom’s: Application Difficulty: Medium AACSB: Analytic 20) Under selective perception, information that makes us uncomfortable is screened out; comfortable information is allowed in. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 21) Identifying an individual with a group and using oversimplified attributes of the group to describe the individual is the perceptual distortion mechanism of selective perception. Answer: False Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 22) Selective perception rarely interferes with a manager’s view of situations or individuals. Answer: False Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 23) Selective perception rarely interferes with a manager’s view of situations or individuals. Answer: False Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence Test Bank

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behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 24) Projection is the assignment of personal attributes to other individuals. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 25) Singling out for attention those aspects of a situation or attributes of a person that reinforce or are consistent with one’s beliefs, values, or needs is referred to as projection. Answer: False Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 26) Projection errors can be controlled through self-awareness and a willingness to communicate and empathize with others. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 27) Impression management is the systematic attempt to influence how others perceive us. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence Test Bank

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behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 28) Some basic impression management tactics include making eye contact and smiling while engaged in conversation, knowing when to “dress up” or when to “dress down,” and displaying a level of energy appropriate to the circumstance. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 29) When an individual does a poor job of impression management it can harm their chances of career development and progression, as the actions taken by the individual will likely be perceived as phony and will likely result in a poor self-image. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Application Difficulty: Medium AACSB: Analytic 30) Wearing a dark blue, pinstriped business suit to an interview with a large Swiss banking institution is an example of impression management. Answer: True Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Application Difficulty: Medium AACSB: Analytic 31) Personality refers to the combination or overall profile of characteristics that make one person unique from every other. Test Bank

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Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 32) Agreeableness is one of the “Big Five” personality traits that reflects the degree to which someone is outgoing, sociable, and assertive. Answer: False Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 33) An introvert is comfortable and confident in interpersonal relationships and an extravert is more withdrawn and reserved in interpersonal relationships. Answer: False Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 34) Conscientiousness is one of the “Big Five” personality traits that reflects the degree to which someone is responsible, and able to focus on what is required to be achieved in the workplace. Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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35) A conscientious person focuses on what can be accomplished and meets commitments; a person lacking conscientiousness is careless, often trying to do too much and failing, or doing little. Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 36) Emotional stability is one of the “Big Five” personality traits that reflects the degree to which someone is calm and confident in the face of daily work experiences. Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 37) An open person is broad-minded, receptive to new things, and open to change; a person lacking openness is narrow-minded, has few interests, and is resistant to change. Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 38) Managers must be able to understand and respond to personality differences when building teams but not when making job assignments and engaging in daily work activities. Answer: False Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Comprehension Test Bank

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Difficulty: Easy AACSB: Analytic 39) Conscientiousness has been found to be a strong predictor of job performance. Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 40) Personality tests not specifically designed for hiring decisions may result in lawsuits for bias or discrimination. Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 41) The Myers-Briggs Type Indicator (MBTI) assesses personalities based on a questionnaire that probes into how people act or feel in various situations. Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 42) The Myers-Briggs Type Indicator (MBTI) is based on the four personality distinctions as identified by Carl Jung. Answer: False Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 43) The sensing vs. intuitive dimension of the Myers-Briggs Type Indicator assesses whether a person tends to rely on logic or emotions in dealing with problems. Answer: False Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 44) The thinking vs. feeling dimension of the Myers-Briggs Type Indicator assesses whether a person tends to rely on logic or emotions in dealing with problems. Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 45) The thinking vs. feeling dimension of the Myers-Briggs Type Indicator assesses whether a person prefers order and control or acts with spontaneity. Answer: False Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 46) A person with an ENFP Myers-Briggs profile would be extraverted, focused on the big picture, uses emotions when dealing with problems, and acts with flexibility and spontaneity. Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural Test Bank

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implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 47) A person with an INTJ Myers-Briggs profile would be someone who would be very good at working in a matrix structure environment as they are team players. Answer: False Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 48) A person with an ISLF Myers-Briggs profile would be someone who would be very good in a leadership capacity as they are often visionaries. Answer: False Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 49) Technology personality is an indication of an individual’s personality based on when and how social media is used. Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 50) Charlie is very adept at using a computer for work purposes; however, Charlie still prefers to have personal contact with clients. Charlie displays the bystander type of technology personality. Test Bank

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Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 51) Dominic admits to having days waiting in line to be the first to get the latest cell phone model as well as the latest version of PS4 games. Dominic displays the live wire type of technology personality. Answer: False Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 52) Avery hasn’t used a land line telephone in years, is a popular food blogger, and keeps in touch with family and friends via Facebook and Skype. Avery displays a live wire type of technology personality. Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 53) Locus of control is the belief that what happens is not within one’s control. Answer: False Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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54) Individuals with an external locus of control accept responsibility for their own actions, whereas individuals with an internal locus of control blame others and outside forces for what happen to them. Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 55) Authoritarianism is the degree to which a person defers to authority and accepts interpersonal status differences. Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 56) People with an authoritarian personality have subservient tendencies within their personalities. Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 57) The “low-Mach” personality is exploitative and unconcerned about others, whereas the “high-Mach” personality is deferential in allowing power to be exerted over him/her. Answer: False Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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58) A person with a high-Mach personality is viewed as exploitative and unconcerned about others, often acting with the assumption that the end justifies the means. Answer: False Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 59) Self-monitoring is the extent to which people believe they are in control of their destinies versus believing that that what happens to them is beyond their control. Answer: False Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 60) A person low in self-monitoring is predictable and tends to act in a consistent way regardless of circumstances, while a person high in self-monitoring tends to be a learner, comfortable with feedback, and both willing and able to change. Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 61) Self-monitoring reflects the degree to which someone is able to adjust and modify behaviour in response to the situation and external factors. Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 62) A person with a Type A personality feels guilty when relaxing. Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 63) A person who arrives at work an hour early to get a jump start on their day, and consistently stays an hour late to get things ready for the next day is an example of a Type A personality. Answer: True Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 64) An attitude is the inclination to act in a certain way towards our environment. Answer: True Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 65) The cognitive component of an attitude reflects a belief or an opinion. Answer: True Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 66) The affective component of an attitude reflects an intention to behave in a manner consistent with a belief or feeling. Answer: False Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 67) The behavioural component of an attitude reflects an intention to behave consistently with a specific belief and feeling. Answer: True Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 68) Cognitive dissonance describes the discomfort a person feels when attitudes and behaviour are inconsistent. Answer: True Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 69) Behavioural dissonance describes the discomfort a person feels when attitudes and behaviour are inconsistent. Answer: False Learning Objective 15.3: Discuss the components of attitudes and the importance of job Test Bank

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satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 70) Job satisfaction is the extent to which individuals feel positively or negatively about their job. Answer: True Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 71) Job satisfaction is closely correlated with overall life satisfaction, age and the position held in an organization. Answer: True Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 72) Common aspects of job satisfaction include satisfaction with pay, tasks, the work setting, advancement opportunities, supervision, and co-workers. Answer: True Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 73) Employees who are more satisfied with their jobs tend to be absent less frequently than employees with lower job satisfaction. Answer: True Test Bank

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Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 74) Job involvement and organizational commitment have few, if any, quality of work-life implications. Answer: False Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 75) Employee engagement refers to the willingness to “go above and beyond the call of duty” or “go the extra mile” in one’s work. Answer: False Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 76) Employee engagement refers to the extent to which an individual is dedicated to a job. Answer: False Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 77) When people go above and beyond their normal job requirements, they are exhibiting organizational citizenship behaviours. Test Bank

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Answer: True Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 78) “Going the extra mile” in one’s work is a phrase that illustrates the concept of organizational citizenship. Answer: True Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 79) In reality it is possible for an employee to like their job, be very satisfied and still not perform at a high level. Answer: True Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 80) The opportunity to do one’s best every day, believe that one’s opinions count, that their colleagues are committed to quality, and that there is a direct connection between one’s work and the company’s mission are attitudes that are positively correlated with higher profits for the company. Answer: True Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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81) Job performance refers to the quantity and quality of tasks accomplished by an individual or group at work. Answer: True Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 82) Job performance is the “bottom line” for people at work, and the cornerstone for overall organizational productivity. Answer: True Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 83) If high performance is to be achieved in any work setting, the individual contributor must possess the right abilities, work effectively at each assigned task, and have the necessary organizational support. Answer: True Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 84) Even the most capable, well-supported workers won’t achieve the highest performance levels unless they are willing to put in the work. Answer: True Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Comprehension Test Bank

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Difficulty: Easy AACSB: Analytic 85) Research has shown that it is highly likely that job satisfaction and job performance influence one another. Answer: True Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 86) Emotional intelligence is an ability to understand emotions and manage relationships effectively and allows us to avoid having emotions “get the better of us.”. Answer: True Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 87) A manager who “flies off the handle”, frequently raises their voice to employees and does not understand why employees continually fail to speak up at meetings is exhibiting a high level of positive emotional intelligence. Answer: False Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Application Difficulty: Medium AACSB: Analytic 88) Moods tend to be short term and clearly targeted. Answer: False Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Test Bank

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Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 89) Positive emotions of leaders can be “contagious” resulting in more positive moods in followers. Answer: True Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 90) The contagion effect is generally more powerful for negative posts on social media than for positive postings. Answer: False Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 91) An instructor always comes into the classroom with a smile and in an upbeat mood and always greets the class by saying “good morning” or “good afternoon”. As a result, the students rarely miss class and have a very positive attitude towards the material being taught and the school in general. This is an example of mood contagion. Answer: True Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Application Difficulty: Medium AACSB: Analytic 92) The state of tension experienced by people who face extraordinary demands, constraints, or opportunities is called stress. Test Bank

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Answer: True Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 93) Stressors are things that cause stress and originate in work, personal, and non-work situations. Answer: True Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 94) The work factors that have the greatest potential to cause excessive stress include role conflicts, role ambiguities, and role overloads. Answer: True Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 95) Work related stress factors include excessively high- or low-task demands, role conflicts or ambiguities, poor interpersonal relations, and career progress that is too slow or too fast. Answer: True Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 96) Family events, personal economics, and personal medical events are non-work related Test Bank

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factors that may influence the level of stress an individual experiences at work. Answer: True Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 97) Mistaken identity is the work-related stress syndrome where performance expectations are impossible, or the support is totally inadequate to the task. Answer: False Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 98) “Set up to fail” is the work-related stress syndrome where the individual ends up in a job that that does not match their talents or that they do not like. Answer: False Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 99) Constructive stress acts in a positive way to increase effort, stimulate creativity, and encourage diligence in one’s work. Answer: True Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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100) Destructive stress impairs the performance of an individual and is dysfunctional for the individual and/or the organization. Answer: True Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 101) A form of physical and mental exhaustion that can be incapacitating, both personally and with respect to one’s work, is workplace rage. Answer: False Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 102) A form of physical and mental exhaustion that can be incapacitating, both personally and with respect to one’s work, is job burnout. Answer: True Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 103) Excessively high or destructive stress in the workplace can lead to reduced performance, absenteeism, errors, and accidents. Answer: True Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 104) Poor health due to workplace stress may cause employees to reduce their contribution to the organization. Answer: True Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 105) Personal wellness is a stress management strategy that includes taking individual responsibility for maintaining one’s health through a disciplined approach to such things as smoking, alcohol or drug use, maintaining a nutritious diet, and engaging in a regular exercise and a physical-fitness program. Answer: True Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 106) A growing trend in business is to create fringe benefits linked to an employee’s personal wellness. Answer: True Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Question type: Multiple Choice 107) ___ is the process through which people receive, organize, and interpret information from the environment. a) Attribution Test Bank

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b) Perception c) Projection d) Conversion e) Distortion Answer: b Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 108) Which of the following is true about perceptions? a) Perceptions have a marginal influence on individual behaviour. b) Perceptions have no impact on daily life experiences. c) People perceive the same people, things, or situations differently. d) Cultural background does not affect people’s perceptions. e) Perceptions refer to the desire to achieve or to accomplish something. Answer: c Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 109) A psychological contract refers to a) the loyalty of an employee to an organization. b) the extent to which an individual is dedicated to a job. c) the mental exhaustion from work stress. d) a strong positive feeling about one’s job and an organization. e) the set of individual expectations about an employment relationship. Answer: e Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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110) The idea of a psychological contract between an individual and an organization suggests that the individual ___ in exchange for ___. a) makes commitments; power b) makes contributions; inducements c) provides performance; contributions d) offers inputs; outputs e) makes sacrifices; money Answer: b Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 111) Which of the following is a consequence of an unbalanced psychological contract? a) eustress b) fundamental attribution error c) projection d) absenteeism e) willful blindness Answer: d Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 112) Contributions, provided by the individual in the psychological contract, include ___. a) effort, time, creativity, loyalty, and commitment b) things that make the individual a desirable resource c) valued work activities d) all of the above e) none of the above Answer: a Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 113) In the psychological contract, inducements made by the organization to the employee can include all of the following except ___. a) compensation and benefits b) job security c) advancement opportunities d) training e) no opportunity for overtime Answer: e Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 114) Which of the following refers to attribution? a) The set of individual expectations about an employment relationship. b) The process of explaining perceptions about their own behaviour and the behaviour of colleagues. c) It is the process through which people receive, organize, and interpret information from the environment. d) Attribution is the tendency to define problems from one’s own point of view. e) It is the assignment of personal attributes to other individuals. Answer: b Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 115) Which of the following items does not accurately characterize attribution? a) People try to explain what they observe and what happens to them. b) The process of developing a causal explanation for things that happen to people. c) The self-serving bias and the fundamental attribution error provide explanations of the factors that people use in explaining their own and others’ behaviour. Test Bank

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d) Attributions can have a profound effect in work settings. e) People tend to perceive the same things in the same way. Answer: e Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 116) When an observer blames another person’s performance failures or problems more on internal factors relating to the individual than on external factors relating to the environment, the observer is ___. a) making a fundamental attribution error b) promoting a self-serving bias c) doing a legitimate performance appraisal d) applying the Internal Factor Theory e) applying the External Factor Theory Answer: a Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 117) Ashley has been working night shifts for about six months now and has noticed a change in both eating and sleeping habits. As a result the level of Ashley’s performance has decreased significantly. Ashley’s manager Dani, thinks that Ashley has become complacent and is trying to avoid work. Which of the following would best describe Dani’s behaviour? a) Self-serving bias b) Stereotyping c) Halo effect d) Fundamental attribution error e) Projection Answer: d Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Application Test Bank

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Difficulty: Medium AACSB: Analytic 118) Morgan’s performance at work was steadily declining as unrealistic daily targets needed to be met. Even though Morgan was able to meet these daily targets, the quality of work was not up the organization’s standards. Morgan’s supervisor assumed that this was due to a lack of concentration and laziness. This scenario is an instance of a ___. a) stereotyping error b) halo effect c) fundamental attribution error d) projection error e) self-serving bias Answer: c Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Application Difficulty: Medium AACSB: Analytic 119) When a person blames their personal failures or problems on external causes and attributes their successes to their own personality and qualities, that individual is ___. a) using the halo effect b) perceiving things accurately c) relying on the self-serving bias d) engaging in selective perception e) doing a proper performance analysis Answer: c Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Application Difficulty: Medium AACSB: Analytic 120) Jules, is a mid-level manager at a logistics company and has noticed recently that one of the employees in the department is frequently missing key project deadlines. When asked for an explanation, the employee responded by saying that the deadlines were unrealistic. Jules pointed out to the employee that all of the other employees have similar workloads and deadlines, and are always able to finish their work on time. The employee is displaying traits of ___. Test Bank

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a) mood contagion bias b) the Machiavellian effect c) the Halo effect d) a fundamental attribution error e) a self-serving bias Answer: e Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Application Difficulty: Medium AACSB: Analytic 121) Perceptual distortions include all of the following except a) Halo effect. b) Stereotyping. c) Perceptual selectivity. d) Paranoia. e) Projection. Answer: d Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 122) Which of the following occurs when attributes commonly associated with a group are assigned to an individual? a) Fundamental attribution error b) Psychological contract c) Selective perception d) Self-serving bias e) Stereotype Answer: e Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 123) Identifying an individual with a group or category and using oversimplified attributes of the group or category to describe the individual is the perceptual distortion mechanism of ___. a) stereotyping b) the halo effect c) selective perception d) willful blindness e) projection Answer: a Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 124) A stereotype often associated to individuals belonging to the millennial generation is that they are a) hard workers requiring little attention and few rewards. b) extremely competitive expecting rewards only for top-notch individual performance. c) spoiled and selfish who expect much personal attention and rewards. d) extremely company oriented with little regard for personal free time. e) willing to exert more effort for less reward than were previous generations. Answer: c Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Application Difficulty: Medium AACSB: Analytic 125) When a man has lunch with his boss, who also happen to be a man is often considered to be on his way up in the organization. When a woman has lunch with her boss who also happen to be the pair are often thought to be having an affair. This is an example of ___. a) gender stereotyping b) selective perception c) impression management Test Bank

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d) projection e) the halo effect Answer: a Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Application Difficulty: Medium AACSB: Analytic 126) Two recent computer science undergraduates each applied for a job in computer programming at the same company. Both had similar qualifications and had received awards for academic excellence at their respective universities. One of the applicants happens to be deaf. The hiring manager decided to not offer the job to the deaf person because of concerns about how they would perform the job and be able to communicate with colleagues. What type of stereotyping has affected the manager’s perceptions? a) Racial stereotyping b) Ethnic stereotyping c) Gender stereotyping d) Ability stereotyping e) Age stereotyping Answer: d Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Application Difficulty: Medium AACSB: Analytic 127) Suppose that a manager assumes employees who are older the forty years of age cannot perform well in important and challenging jobs because they lack creativity and are risk averse. Which stereotype is this manager using? a) Racial stereotype b) Ethnic stereotype c) Gender stereotype d) Ability stereotype e) Age stereotypes Answer: e Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Test Bank

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Section Reference 15.1: Perception Bloom’s: Application Difficulty: Medium AACSB: Analytic 128) Using a single attribute to develop an overall impression of a person or situation is called ___. a) stereotyping b) the halo effect c) selective perception d) impression management e) projection Answer: b Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 129) Taylor comes across as a friendly personality, with a bold and confident voice. These attributes impress Charlie, the marketing manager of Goldwyn Inc., during an interview. Owing to these attributes, Taylor is immediately hired because the assumption is that Taylor will be a hard-working and smart employee. Charlie's assumption is a result of the ___. a) mood contagion error b) Machiavellian effect c) halo effect d) fundamental attribution error e) projection effect Answer: c Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Application Difficulty: Medium AACSB: Analytic 130) A promotion was granted to Jean because all quality and productivity standards were met, despite Jean’s ineffective interpersonal and communication skills. Jean was promoted due to performance skills without taking people skills into consideration. Which of the following perceptual tendencies is displayed here? Test Bank

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a) Anchoring effect b) Selective perception c) Projection d) Fundamental attribution error e) Halo effect Answer: e Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Application Difficulty: Medium AACSB: Analytic 131) Singling out those aspects of a situation or attributes of a person that reinforce or are consistent with one’s beliefs, values, or needs is termed ___. a) stereotyping b) the halo effect c) selective perception d) impression management e) projection Answer: c Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 132) Selective perception refers to a) the tendency to define problems from one’s own point of view. b) the assignment of personal attributes to other individuals. c) using a single attribute to develop an overall impression of a person or situation. d) the systematic attempt to influence how others perceive us. e) assigning the attributes commonly associated with a group to an individual. Answer: a Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 133) Suppose that a task force is addressing a rather ambiguous problem. A representative from the marketing department views it clearly as a marketing problem and a representative from the manufacturing department views it clearly as a manufacturing problem. In this case, the chair of the task force must be careful to avoid biased decision making caused by ___. a) stereotypes b) the halo effect c) selective perception d) projection e) mixed messages Answer: c Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Application Difficulty: Medium AACSB: Analytic 134) The revenues of Venus Media Inc. have been steadily declining for the past few months. The marketing department of the firm believed that the economic slowdown caused by the recent COVID-19 pandemic was the primary reason for the firm’s poor performance and did consider any other reason put forth by the other departments. Which of the following perceptual tendencies is displayed in this case? a) stereotype b) selective perception c) projection d) fundamental attribution error e) self-serving bias Answer: b Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Application Difficulty: Medium AACSB: Analytic 135) ___ involves the assignment of personal attributes to other individuals. a) Fundamental attribution error Test Bank

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b) Self-serving bias c) Projection d) Halo effect e) Stereotyping Answer: c Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 136) Dakota, a team lead, is quick at understanding concepts and in executing projects and assumes that all of the team members have the same ability to complete projects. Which of the following perceptual tendencies is displayed here? a) Stereotype b) Selective perception c) Fundamental attribution error d) Self-serving bias e) Projection Answer: e Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Application Difficulty: Medium AACSB: Analytic 137) Suppose that a manager has refused your request to work from home, even though your level of productivity would increase substantially. The reason the manager provides for refusing to allow you to work from home is “Well, how it would look to the other employees if you were allowed to stay home day after day, and they had to come into the office each day. Imagine what would happen to our business if everyone did that and ended up only working when they felt like it”. This manager is practicing ___. a) stereotyping b) projection c) the halo effect d) networking e) selective perception Answer: b Test Bank

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Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Application Difficulty: Medium AACSB: Analytic 138) The systematic attempt to influence how others perceive us is called a) the halo effect. b) stereotyping. c) selective perception. d) projection. e) impression management. Answer: e Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 139) All of the following are basic tactics of impression management except a) making eye contact. b) smiling while engaged in conversation. c) knowing when to “dress up” and when to “dress down.” d) assigning personal attributes to other individuals. e) displaying a high level of energy. Answer: d Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 140) When an employee does something that they should know is wrong and won’t admit that the action is wrong, that employee is committing ___________. a) selective perception b) the halo effect c) projection Test Bank

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d) willful blindness e) machiavellianism Answer: d Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 141) The profile of characteristics making an individual unique from others is referred to as ___. a) a stereotype b) personality c) self-serving bias d) the locus of control e) cognitive dissonance Answer: b Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 142) Which of the following is not one of the Big Five personality dimensions? a) Extraversion b) Agreeableness c) Conscientiousness d) Emotional intelligence e) Openness Answer: d Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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143) The degree to which someone is outgoing, sociable, and assertive is referred to as ___. a) agreeableness b) perceptiveness c) cognitive dissonance d) extraversion e) conscientiousness Answer: d Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 144) ___ is one of the “Big Five” personality traits that reflects the degree to which someone is good-natured, cooperative, and trusting. a) Extraversion b) Agreeableness c) Conscientiousness d) Emotional stability e) Openness Answer: b Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 145) Kelly is a senior executive at Brown Inc., and is well-mannered, trusted and has the ability to cooperate with all his colleagues. When employees have work-related or personal issues, they go to Kelly for support. Which of the following personality traits does Kelly most likely possess? a) Agreeableness b) Introversion c) Self-serving bias d) Locus of control e) Extraversion Answer: a Test Bank

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Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 146) Which of the following statements about the personality trait of extraversion is/are accurate? a) Extraversion is the degree to which someone is outgoing, sociable, and assertive. b) An introvert is comfortable and confident in interpersonal relationships. c) An extravert is more withdrawn and reserved in interpersonal relationships. d) a and b e) a and c Answer: a Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 147) ___ is one of the “Big Five” personality traits that reflects the degree to which someone is responsible, dependable, and careful. a) Extraversion b) Agreeableness c) Conscientiousness d) Emotional stability e) Openness Answer: c Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 148) Which of the following statements about the personality trait of conscientiousness is/are accurate? a) Conscientiousness is the degree to which someone is responsible, dependable, and careful. Test Bank

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b) A conscientious person focuses on what can be accomplished and meets commitments. c) A person lacking conscientiousness is careless, often trying to do too much and failing, or doing little. d) a and b e) a, b, and c Answer: e Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 149) Harper often tries to multi-task and, as a result, fails to do well in any task. Harper also tends to be careless and irresponsible while working on projects. This implies that Harper most likely a) lacks conscientiousness. b) has low agreeableness. c) lacks emotional stability. d) lacks openness to experience. e) has low extraversion. Answer: a Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 150) Which of the following statements about the personality trait of emotional stability is/are accurate? a) Emotional stability is the degree to which someone is relaxed, secure, and unworried. b) An emotionally unstable person is calm and confident. c) An emotionally stable person is anxious, nervous, and tense. d) b and c e) a, b, and c Answer: a Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 151) Which of the following examples displays the personality trait of emotional stability? a) A manager who encourages suggestions from employees for the promotion of a product. b) A CEO being careful about making merger decisions. c) Staying calm and confident when a manager’s team fails to meet quarterly targets. d) When a proprietor implements needed changes in their organization e) A team leader exhibiting good communication skills with the team members. Answer: c Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 152) Which of the following is true of the personality trait of openness to experience? a) Openness to experience refers to the degree to which someone is outgoing and sociable. b) An open person is always a source of conflict and discomfort for others. c) Openness to experience refers to the degree to which someone is good-natured, cooperative, and trusting. d) Openness to experience refers to the degree to which someone is responsible, dependable, and careful. e) An open person is broad-minded and receptive to new things. Answer: e Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 153) ___ is one of the “Big Five” personality traits that reflects the degree to which someone is curious, open to new ideas, and unworried. a) Extraversion b) Agreeableness c) Conscientiousness d) Emotional stability Test Bank

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e) Openness Answer: e Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 154) Managers must be able to understand and respond to personality differences when ___. a) making job assignments b) building teams c) engaging in daily work activities d) a and c e) a, b, and c Answer: e Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 155) Jesse, a vice-president of a mid-sized organization, is broad minded and well informed and believes in adapting to changes in the environment. Jesse also encourages co-workers to suggest new ideas to help in the growth of the organization. This implies that Jesse has ___. a) low conscientiousness b) low agreeableness c) high openness to experience d) high selective perception e) low emotional stability Answer: c Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic

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156) Ainsley, the commercial loans manager at a bank, is cooperative, sociable, dependable, and unworried. However, Ainsley lacks the interest to bring about any changes in the operations of the bank and is narrow minded. This implies that Ainsley lacks ___. a) conscientiousness b) openness to experience c) agreeableness d) extraversion e) emotional stability Answer: b Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 157) Which of the following is not one of the personality differences as outlined by Carl Jung? a) How people differ in the ways they gather information. b) How people differ in the ways they evaluate information c) How people differ in the ways they relate to the outside world d) How people differ in the ways they relate to others. e) All of the above are personality differences outlined by Jung. Answer: b Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 158) Referencing the Myers-Briggs Type Indicator®, sensing refers to a) focusing on details while gathering data. b) relying on emotions while making decisions. c) focusing on the big picture in dealing with problems while gathering data. d) acting with flexibility and spontaneity while gathering data. e) being quiet and shy when interacting with people. Answer: a Learning Objective 15.2: Explain common personality differences and their behavioural Test Bank

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implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 159) Referencing the Myers-Briggs Type Indicator®, perceiving refers to a) focusing on details while gathering data. b) focusing on details while working. c) acting with flexibility and spontaneity while working. d) acting with order and control while working. e) relying on rules and regulations while working. Answer: c Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 160) Brook has a full year to prepare for a product launch and rather than wait decided to immediately get to work on the project by creating several Gantt charts to track the production, marketing and sales strategies. On the judging scale of the Myers-Briggs Type Indicator® Brook is oriented ___. a) outwardly b) toward gathering data c) toward planning d) inwardly e) emotionally Answer: c Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 161) Dana enjoys moderating meetings and mingling with co-workers. On the Myers-Briggs Type Indicator® Dana is a(n) ___ personality. a) inward Test Bank

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b) thinking c) toward planning d) extraverted e) emotional Answer: d Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 162) Drew is a COO who makes decisions based on “gut feeling” rather than hard data. Drew would probable score high on which aspect of the Myers-Briggs Type Indicator®? a) Sensing rather than intuition b) Judging rather than perceiving c) Thinking rather than feeling d) feeling rather than thinking e) intuition rather than sensing Answer: e Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 163) Riley is fully capable of using the laptop computer for work purposes, however still prefers to have personal contact with clients. This displays what type of technology personality? a) Always on b) Social skimmer c) Broadcaster d) Toe dipper e) Bystander Answer: d Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Test Bank

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Difficulty: Medium AACSB: Analytic 164) Sean has invested too much time, money, and effort into his VHS collection and would never consider watching a movie at home any other way. Sean displays what type of technology personality? a) Always on b) Social skimmer c) Broadcaster d) Toe dipper e) Never minder Answer: e Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 165) Corey admits to having spent hours, and more often than not day waiting in line in order to be the first to get the latest cell phone version. Corey displays what type of technology personality? a) Always on b) Social skimmer c) Broadcaster d) Toe dipper e) Never minder Answer: a Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Hard AACSB: Analytic 166) Caelan hasn’t used a land line telephone phone in years, is an avid food blogger, and keeps in touch with family and friends using only Facebook or Skype. Caelan displays what type of technology personality? a) Always on b) Social skimmer Test Bank

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c) Live wire d) Toe dipper e) Never minder Answer: c Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 167) Which of the following is true of locus of control? a) It is the degree to which a person defers to authority and accepts status differences. b) People with an internal locus of control are more prone to blame others for what happens to them. c) Individuals with an external locus of control are more self-confident and accept responsibility for their own actions. d) People with an internal locus of control tend to be more satisfied and less alienated from their work. e) It describes the extent to which someone is emotionally detached and manipulative. Answer: d Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 168) A hockey player who blames a loss on a loud audience conditions would be likely to have ___. a) an external locus of control b) an internal locus of control c) no locus of control d) high self-monitoring e) type A personality Answer: a Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Test Bank

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Difficulty: Medium AACSB: Analytic 169) HootSuite founder, Ryan Holmes, shares these lessons about work and life: trust your instincts; take time to listen to others, but in the end don’t forget to listen to yourself; be persistent; and do everything it takes to reach your goal. Ryan’s personality would be described as having ___. a) an external locus of control b) an internal locus of control c) no locus of control d) high self-monitoring e) a Type A personality Answer: b Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 170) People with ___ are control-oriented in leadership positions and subservient as followers. a) an external locus of control b) a Machiavellian personality c) an authoritarian personality d) a sensation-thinker problem-solving style e) a high self-monitoring personality Answer: c Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 171) Which of the following is true of authoritarianism? a) Authoritarianism is a system that opposes status differences. b) An individual with an authoritarian personality tends to act rigidly and be control-oriented in a follower capacity. c) An individual with an authoritarian personality is likely to be subservient and follow rules Test Bank

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when in a leadership capacity. d) People with authoritarian principles never act unethically or illegally. e) Authoritarianism is the degree to which a person defers to authority and accepts interpersonal status differences. Answer: e Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 172) Roan was ordered by the manager, Brook, to shred some incriminating documents that might have led to a lawsuit against their company. Roan did as Brook instructed and shredded the documents. From the given information, it is likely that Roan has a(n) ___ personality. a) contagion b) conscientious c) low-Mach d) Type A e) authoritarian Answer: e Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 173) Bailey is a senior executive at PLM Inc., and accepts the status differences in the organization and tends to be control-oriented when asked to lead a team of employees. Bailey is prepared to obey upper management unquestioningly . This implies that Bailey has a(n) ___ personality. a) Type A b) authoritarian c) high-Mach d) introverted e) self-monitored Answer: b Learning Objective 15.2: Explain common personality differences and their behavioural implications. Test Bank

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Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 174) Which of the following refers to Machiavellianism? a) the extent to which someone is able to adjust their behaviour in response to external factors b) the extent to which a person tends to defer to authority c) the extent to which someone is curious, open to new ideas, and imaginative d) the extent to which someone is emotionally detached and manipulative e) the extent to which someone is relaxed, secure, and unworried Answer: d Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 175) Which of the following statements about the personality trait of Machiavellianism is/are accurate? a) Machiavellianism describes the extent to which someone is emotionally detached and manipulative in using power. b) The “low-Mach” personality is exploitative and unconcerned about others. c) The “high-Mach” personality is deferential in allowing power to be exerted over themselves. d) b and c e) a, b, and c Answer: a Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 176) Which of the following is true of Machiavellianism? a) A person with a “high-Mach” personality is deferential in allowing others to exert power over themselves. b) A person with a “high-Mach” personality often acts with the assumption that the end Test Bank

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justifies the means. c) A person with a “low-Mach” personality tends to be very manipulative. d) A person with a “low-Mach” personality is viewed as exploitative and unconcerned about others. e) Machiavellianism is the extent to which one believes that what happens is within one’s control. Answer: b Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 177) A person with a “low-Mach” personality a) often acts with the assumption that the end justifies the means. b) is viewed as exploitative and unconcerned about others. c) is emotionally detached and manipulative. d) is deferential in allowing others to exert power over him or her. e) is not interested in others’ emotions and values. Answer: d Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 178) Dana is a project manager at a software development firm. One of Dana's best employees, Morgan, is considering leaving the company because of a desire to pursue a passion for photography. Dana's has been asked by senior management to manipulate Morgan into staying, however Dana refuses to do so and allows Morgan to make the decision that best suits Morgan. From this information, it can be said that Dana has a (n) ___ personality. a) Self-serving b) High-Mach c) Low-Mach d) Type A e) Authoritarian Answer: c Learning Objective 15.2: Explain common personality differences and their behavioural Test Bank

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implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 179) Pat is a shrewd manager, who tends to be dishonest and takes advantage of people. Pat does not care about manipulating people as long as goals are achieved. Which of the following terms best represents Pat’s personality? a) Authoritarian b) High-Mach c) External locus of control d) Internal locus of control e) Self-monitoring Answer: b Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 180) Rudy has been describe by colleagues as a “cutthroat” salesperson because Rudy is always willing to do whatever it takes to make a sale, even if it means manipulating the customer. Rudy displays a ___ personality. a) external locus of control b) high Machiavellianism c) low Machiavellianism d) low authoritarianism e) feeler Answer: b Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 181) Julian works for a financial consulting firm and is seen as generally manipulative and unconcerned about the interests and values of co-workers. Julian does not care about others’ emotions and lacks basic social skills. This implies that Julian has Test Bank

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a) high self-monitoring skills. b) low authoritarianism. c) a high-Mach personality. d) high extraversion. e) an internal locus of control. Answer: c Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 182) ___ reflects the degree to which someone is able to adjust and modify behaviour in response to the situation and external factors. a) Locus of control b) Authoritarianism c) Machiavellianism d) Problem-solving style e) Self-monitoring Answer: e Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 183) Which of the following statements regarding self-monitoring is/are correct? a) A low self-monitor tends to be a learner, comfortable with feedback, and both willing and able to change. b) A high self-monitor is predictable, tending to act consistently regardless of circumstances. c) Self-monitoring reflects the degree to which someone is able to adjust and modify behaviour in response to the situation and external factors. d) a and b e) a, b, and c Answer: c Learning Objective 15.2: Explain common personality differences and their behavioural implications. Test Bank

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Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 184) Which of the following is true of self-monitoring? a) A person high in self-monitoring is not comfortable with feedback. b) An individual low in self-monitoring is highly unpredictable. c) A person high in self-monitoring tends to act consistently regardless of circumstances. d) Someone high in self-monitoring tends to be a learner. e) A person low in self-monitoring is flexible in changing behaviour from one situation to the next. Answer: d Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 185) Taylor is an executive analyst in the merchandising department of Kira Inc. and thrives on feedback which Taylor uses to improve overall work performance. Taylor is a fast learner and has the ability to modify behaviour in response to the immediate situation and to external factors. This implies that Taylor ___. a) has an introverted personality b) has a high-Mach personality c) is high in self-monitoring d) is an authoritarian e) is low in self-monitoring Answer: c Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 186) An individual low in self-monitoring skills would display which of the following characteristics? a) learning skills Test Bank

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b) internal locus of control c) willingness to change d) flexibility e) predictability Answer: e Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 187) A person with a Type A personality a) believes in taking breaks during work. b) is oriented toward extreme achievement and perfectionism. c) never interrupts the speech of others. d) believes in doing one task at a time. e) is oriented toward extreme patience. Answer: b Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 188) Bailey is a high-achieving, stressed-out multi-tasker who works long hours. What type of personality is Bailey? a) Type B personality b) low Machiavelliansm c) high emotional stability d) Type A personality e) introverted Answer: d Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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189) Avery, who works for a software development company has a Type A personality. Over the past few months the company has been receiving fewer projects, leaving Avery to spend more time at work doing odd little jobs. Avery is most likely to ___. a) have high job satisfaction b) attend work irregularly c) pay little attention to her tasks d) quit her job e) have high levels of employee engagement Answer: d Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 190) Salim always works toward achieving all goals and targets on time and completed to perfection. Salim engages in many tasks at once and tends to hurry others along when they are speaking. Which of the following individual personality variations does Salim possess? a) authoritarianism b) Machiavellianism c) low self-monitoring d) Type A orientation e) external locus of control Answer: d Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Application Difficulty: Medium AACSB: Analytic 191) Which of the following patterns of behaviour would be observed in a Type A personality? a) slow-eating patterns b) patience c) multitasking d) laziness e) lack of stress Test Bank

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Answer: c Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 192) ___ is a predisposition to act in a certain way toward people and things in one’s environment. a) An attitude b) A norm c) A behaviour d) A need e) Locus of control Answer: a Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 193) Attitudes, whether positive or negative, have a(n) ___ component. a) emotional b) behavioural c) cognitive d) a and c e) a, b, and c Answer: e Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 194) Which of the following components of individual attitudes reflects a belief or an opinion? Test Bank

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a) cognitive component b) affective component c) normative component d) emotional component e) behavioural component Answer: a Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 195) Jade enrolled in a particular law school in Toronto based solely on the belief that the school was good. This is an example of the ___ component of individual attitudes. a) affective b) normative c) emotional d) behavioural e) cognitive Answer: e Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Application Difficulty: Medium AACSB: Analytic 196) The ___ component of an attitude reflects a specific feeling. a) cognitive b) intentional c) affective d) opinion e) behavioural Answer: c Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 197) Gabriel is an advertising professional and loves the work because of the opportunity to be creative. This is an example of the ___ component of Gabriel’s attitude. a) cognitive b) affective c) intentional d) opinion e) behavioural Answer: b Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Application Difficulty: Medium AACSB: Analytic 198) The ___ component of an attitude reflects an intention to act in a manner that is consistent with a belief and feeling. a) cognitive b) emotional c) affective d) intentional e) behavioural Answer: e Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 199) Coty received negative feedback for a recent project and has therefore decided to concentrate and put in more effort in order to improve the quality of work that is completed. This is an example of the ___ component of attitude. a) behavioural b) affective c) intentional d) emotional Test Bank

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e) cognitive Answer: a Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Application Difficulty: Medium AACSB: Analytic 200) Which of the following refers to cognitive dissonance? a) Cognitive dissonance is the predisposition to act in a certain way. b) This is the extent to which someone is emotionally detached and manipulative. c) The degree to which someone is able to adjust behaviour in response to external factors is cognitive dissonance. d) Cognitive dissonance is the degree to which individuals feel positive about their job. e) It is the discomfort felt when attitude and behaviour are inconsistent with one another. Answer: e Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 201) Kari had promised to jog every morning for a month in order to lose some weight. At the end of the month, Kari had gone for jogging for a total of only seven days. Kari was not concerned and inwardly said, “I am not that overweight anyway.” Which of the following best describes Kari’s behaviour? a) Fundamental attribution error b) Withdrawal behaviour c) Cognitive dissonance d) Self-serving bias e) Halo effect Answer: c Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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202) Michon does not believe in the use of animals for testing cosmetics, equating it to cruelty toward animals. Previously Michon worked in an organization that was known for using alternative testing methods. When a special investigative team revealed that the firm actually used animals for testing purposes, Michon experienced a psychological discomfort. This discomfort is an example of ___. a) mood contagion b) cognitive dissonance c) constructive stress d) destructive stress e) workplace rage Answer: b Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Application Difficulty: Medium AACSB: Analytic 203) Job satisfaction is___. a) the sum total of the individual’s positive work experiences b) too personal for a manager to take into account for all individuals c) seldom researched because it cannot be objectively measured d) the degree to which individuals feel positively or negatively about various aspects of their work e) none of the above Answer: d Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 204) Which of the following is true about job satisfaction? a) Job satisfaction tends to be lower in small firms and higher in large firms. b) The relationship between job satisfaction and temporary absenteeism is not strong. c) Performance does not influence job satisfaction. d) There is a strong relationship between job satisfaction and performance. e) A strong relationship exists between job satisfaction and actual job turnover. Test Bank

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Answer: e Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 205) The most commonly measured facets of job satisfaction are a) emotions, personality, attitudes and desire. b) work itself, quality of supervision, co-workers, opportunities, pay, work conditions and security. c) conceptual, interpersonal and technical skills. d) conceptual, intrapersonal and social skills. e) industry optics and ego satisfaction. Answer: b Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 206) Common aspects of job satisfaction include all of the following except a) satisfaction with tasks. b) satisfaction with information technology. c) satisfaction with the work setting. d) satisfaction with supervision. e) satisfaction with co-workers. Answer: b Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 207) Which of the following items accurately describe a common aspect of job satisfaction? Test Bank

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a) satisfaction with pay b) satisfaction with advancement opportunities c) satisfaction with organizational strategy d) Both a and b are common aspects of job satisfaction. e) Both b and c are common aspects of job satisfaction. Answer: d Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 208) Research has demonstrated a strong relationship between ___ and ___. a) Job satisfaction; absenteeism and turnover. b) Job satisfaction; monetary compensation. c) Job involvement; usage of computers. d) Job enrichment; job rotation. e) Job design; effective hiring practices. Answer: a Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 209) Addison has a job that is challenging because of the many important responsibilities and tasks it includes. Further, Addison believes that the job has provided opportunities for growth and development, both personal and professional. Addison is happy to receive fair pay and promotions on time. Which of the following is Addison experiencing? a) Organizational citizenship b) Mood contagion c) The halo effect d) Job satisfaction e) Machiavellianism Answer: d Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Test Bank

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Bloom’s: Application Difficulty: Medium AACSB: Analytic 210) Aubrey works at Tracer Consulting Ltd. and has job that stress free and secure. Aubrey receives task-related support from the department managers and has friendly and trustworthy colleagues. These working conditions help in increasing Aubrey’s ___. a) mood contagion b) job satisfaction c) locus of control d) cognitive dissonance e) Machiavellianism Answer: b Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Application Difficulty: Medium AACSB: Analytic 211) Which of the following is not a form of withdrawal behaviour? a) habitual lateness b) job turnover c) excessive sick leave d) vacation time e) habitually taking extra time for lunch and breaks Answer: d Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 212) A strong positive feeling about one’s job and employer is referred to as ___. a) mood contagion b) emotional intelligence c) cognitive dissonance d) employee engagement e) Machiavellianism Test Bank

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Answer: d Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 213) The willingness to do extra duties, help others, and have a positive feeling toward the organization is called a) being a company man. b) organizational lunacy. c) employee engagement. d) management structure. e) taking one for the team. Answer: c Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 214) Bobbie admires and speaks only positively about the company and gets involved in group discussions and brainstorming sessions to improve skills and help in the overall growth of the company. Bobbie is always ready to help colleagues, and has even started a brown-bag lunch session every Wednesday, where anyone can attend and share work ideas. From this information, which of the following does Bobbie possess? a) Mood contagion b) Employee engagement c) Emotional intelligence d) Cognitive dissonance e) Machiavellianism Answer: b Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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215) Which of the following refers to job involvement? a) The extent to which an individual is dedicated to a job. b) The degree to which one experiences cognitive dissonance in their job. c) How comfortable one feels with one’s co-workers. d) The predisposition of employees to act in a certain way. e) One’s willingness to “go beyond the call of duty” in one’s work. Answer: a Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 216) Gray generally stays at the office beyond normal work hours in order to complete special projects, and often comes to work on weekends and holidays. From this information, it is likely that Gray has high ___. a) personal wellness b) Machiavellianism c) self-serving bias d) openness to experience e) job involvement Answer: e Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Application Difficulty: Medium AACSB: Analytic 217) Which of the following describes organizational commitment? a) The willingness to “go beyond the call of duty” in one’s work. b) How loyal an individual is to an organization. c) The predisposition of employees to act in a certain way. d) The degree to which someone is emotionally detached and manipulative. e) How extensively someone is able to adjust behaviour in response to external factors. Answer: b Test Bank

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Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 218) Which of the following is true of organizational commitment? a) Organizational commitment refers to the extent to which an individual experiences cognitive dissonance at his or her job. b) Rational commitments are based primarily on values and interests of others. c) Rational commitments are generally more powerful in positively influencing performance than are emotional commitments. d) Emotional commitments are only based on pay and self-interests. e) Individuals with a high organizational commitment identify strongly with their organization. Answer: e Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 219) Hayden shares many mutual interests with co-workers and respects their values, and has a high regard for the company. This indicates that Hayden has high ___. a) personal wellness b) rational commitment c) Machiavellianism d) self-serving bias e) emotional commitment Answer: e Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Application Difficulty: Medium AACSB: Analytic 220) Rational commitments are primarily based on ___. Test Bank

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a) values b) the interests of other employees c) self-interests d) effective employee relationships e) personal wellness Answer: c Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 221) Jamie is very happy with the compensation, incentives, and all other employee benefits the organization provides. As a result Jamie feels very loyal to the organization. This implies that Jamie has a(n) ___ toward his organization. a) emotional commitment b) rational commitment c) self-serving bias d) cognitive dissonance e) affective commitment Answer: b Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Application Difficulty: Medium AACSB: Analytic 222) Which of the following refers to organizational citizenship? a) It is the loyalty of an individual toward an organization. b) It is a willingness to “go beyond the call of duty in one's work.” c) It is an ability to understand emotions and manage relationships effectively. d) It is the spillover of an employee’s positive or negative moods onto others. e) It is a strong positive feeling about one’s job and the organization that one works for. Answer: b Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 223) Peyton is a financial analyst at Capron Inc. and typically works over the weekends and on all public holidays to do additional work. Peyton does not claim any extra pay or compensatory benefits for this work. This behaviour is an example of ___. a) organizational citizenship b) personal wellness c) cognitive dissonance d) emotional intelligence e) emotional stability Answer: a Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Application Difficulty: Medium AACSB: Analytic 224) Which statement concerning job performance is incorrect? a) Job performance is the quality and quantity of task contributions from the individual or group doing the job. b) Job performance should contribute to the accomplishment of organizational objectives. c) Job performance should add value to the organization’s production of useful goods and/or services. d) Job performance is the “bottom line” for people at work, and the cornerstone for overall organizational productivity. e) Job performance is achieved through individual trade-offs with job satisfaction. Answer: e Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Evaluation Difficulty: Hard AACSB: Analytic 225) “The happy worker is a productive worker” is an expression that is used to express the idea that a) job satisfaction has nothing to do with work performance. b) job satisfaction begets work performance. Test Bank

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c) job performance creates work satisfaction. d) job dissatisfaction is related to low pay. e) if an employee is happy already, you need not increase their pay. Answer: b Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 226) The link between job satisfaction and job performance is best described as a) absolute, meaning a 100% perfect correlation. b) zero, no correlation between the two. c) modest, meaning there is some correlation between the two however it is complicated and has not been well-defined. d) only defined in mechanistic organizations. e) only evident at the management level. Answer: c Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 227) “Performance followed by rewards creates satisfaction; satisfaction influences future performance” is an expression that a) provides the basis for pay for performance systems like merit pay and bonuses. b) is no longer considered to have any meaning in the job satisfaction-job performance discussion. c) is an expression of Communist ideology. d) is too expensive to consider in any organization. e) is often used to justify downsizing. Answer: a Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Evaluation Difficulty: Hard Test Bank

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AACSB: Analytic 228) Which of the following is true of emotions? a) Emotions always tend to be long term. b) Emotions are generalized positive and negative feelings. c) Emotions are states of mind that may persist for some time. d) Emotions tend to be clearly targeted. e) Emotions are not directed toward any person or any particular thing. Answer: d Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 229) An important component of ___ is the ability to manage ourselves and our relationships effectively, which is also known as ___. a) human skills; emotional intelligence. b) human skills; self-management. c) informational roles; self-management. d) emotional intelligence; interpersonal roles. e) emotional intelligence; interactional skills. Answer: a Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 230) Charlie works for a local magazine. Charlie worked hard and did intensive research to write an article for an upcoming issue. When the article was criticized by the editor Charlie felt very upset for some time. This feeling experienced by Charlie is an example of a(n) ___. a) mood b) attitude c) emotion d) behaviour e) projection Test Bank

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Answer: c Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Application Difficulty: Medium AACSB: Analytic 231) Which of the following is true of moods? a) Moods are clearly targeted. b) Moods are generalized positive and negative feelings. c) Moods tend to be short term. d) Moods are strong feelings directed toward someone or something. e) Moods are feelings that do not last for a long time. Answer: b Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 232) Which of the following is a difference between an emotion and a mood? a) An emotion is a generalized feeling, while a mood is a strong feeling directed toward someone. b) Emotions have a general effect on attitude and behaviour, as opposed to moods that have a specific effect on attitude and behaviour. c) While an emotion tends to persist for some time, a mood tends to be brief. d) An emotion is a positive feeling, while a mood represents a negative feeling. e) Emotions are clearly targeted feelings, whereas moods are generalized states of mind. Answer: e Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 233) Mood contagion refers to the Test Bank

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a) spillover of one’s positive or negative moods onto others. b) ability to understand moods and manage relationships effectively. c) collection of strong feelings directed toward someone or something. d) positive mood created by cognitive dissonance. e) discomfort felt when attitude and behaviour are inconsistent. Answer: a Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 234) Walking into a team meeting, Taylor, the manager, was cheerful and happy. Everyone in the room felt good, and the meeting seemed to conclude in no time at all. Which of the following best describes the situation? a) halo effect b) constructive stress c) personal wellness d) job involvement e) mood contagion Answer: e Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Application Difficulty: Medium AACSB: Analytic 235) Gray felt very good after arriving at the office on time and completed all of the scheduled tasks before their deadline. This positive feeling spilled over onto colleagues because Gray interacted with them in a very cheerful manner. This is an example of ___. a) emotional intelligence b) organizational citizenship c) eustress d) mood contagion e) self-serving bias Answer: d Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Test Bank

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Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Application Difficulty: Medium AACSB: Analytic 236) ___ goes hand-in-hand with the dynamic and sometimes uncertain nature of the managerial role. a) Job-related depression b) Job-related stress c) The Type A personality d) Job turmoil e) Managerial upheaval Answer: b Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 237) Which of the following is true of eustress? a) It impairs the performance of an individual. b) It occurs when intense stress breaks down a person’s mental system. c) It encourages diligence in one’s work. d) It acts in a negative way to decrease effort and inhibit creativity. e) It is a feeling of physical and mental exhaustion from work stress. Answer: c Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 238) Which of the following is true of strain? a) It is sometimes called constructive stress. b) It is dysfunctional. c) It helps prevent job burnout among employees. d) It acts in a positive way to increase effort and stimulate creativity. e) It enhances diligence. Test Bank

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Answer: b Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 239) The ___ personality is high in achievement orientation, impatience, and perfectionism. a) authoritarian b) Type A c) Type B d) Machiavellian e) extrovert Answer: b Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 240) Family events, personal economics, and personal affairs are examples of ___ that may influence the stress individuals experience at work. a) personal factors b) work factors c) constructive factors d) non-work factors e) destructive factors Answer: d Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 241) ___ acts in a positive way to increase effort, stimulate creativity, and encourage diligence in one’s work. Test Bank

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a) Visionary stress b) Constructive stress c) Solid stress d) Motivational stress e) Energizing stress Answer: b Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 242) ___ stress impairs the performance of an individual and is dysfunctional for the individual and/or the organization. a) Destructive b) Constructive c) Negative d) Intense e) Positive Answer: a Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 243) A form of physical and mental exhaustion that can be incapacitating both personally and with respect to one’s work is ___. a) job stress b) Type A behaviour c) job burnout d) workplace rage e) eustress Answer: c Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 244) ___ is acting overtly aggressive behaviour toward co-workers and the work setting in general. a) Job stress b) Type A behaviour c) Job burnout d) Workplace rage e) Eustress Answer: d Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 245) All but one of the following statements about the negative consequences of stress is true. Which statement is not true? a) Destructive stress results from intense or long-term stress that overloads or breaks down a person’s physical and mental systems. b) Destructive stress can lead to job burnout. c) Excessive stress seldom, if ever, leads to overtly aggressive behaviour toward co-workers and the work setting in general. d) Managers must know how to maintain the positive edge of constructive stress while avoiding destructive stress. e) Too much stress can reduce resistance to disease and increase the likelihood of physical and/or mental illness. Answer: c Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 246) Which of the following statements is incorrect regarding the responsibility of managers for dealing with stress in the workplace? Test Bank

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a) For reasons of better productivity, healthy employees make fewer errors and must be replaced less frequently. b) People are more creative when they feel well, so managers should keep stress at comfortable levels. c) Poor health due to stress may cause employees to reduce their contribution to the organization, so the return on investment to the company is lost. d) People who are under a lot of stress at work will work harder in order to stay competitive with other employees, so the manager actually benefits by keeping stress levels high. e) For humanitarian reasons alone, managers should enhance the employees’ work setting and reduce stress-producing situations as much as possible. Answer: d Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 247) Bailey regularly gets into arguments, and sometime physical confrontations with colleagues due to excessive stress at work. This is an example of _______. a) constructive stress b) workplace rage c) eustress d) job burnout e) a low-Mach personality Answer: b Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Application Difficulty: Medium AACSB: Analytic 248) Charlie has been working long hours for several weeks now to complete a large and important project. As a result, Charlie’s health is deteriorating and efficiency is decreasing. Which of the following best describes Charlie’s condition? a) Job burnout b) Workplace rage c) Eustress d) Self-serving bias e) Fundamental attribution error Test Bank

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Answer: a Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Application Difficulty: Medium AACSB: Analytic 249) ___ is a stress management strategy that includes taking individual responsibility for maintaining one’s health through a disciplined approach to such things as smoking, alcohol or drug use, maintaining a nutritious diet, and engaging in a regular exercise and a physicalfitness program. a) Stress prevention b) Stress coping c) Stress reduction d) Personal wellness e) Humanitarianism Answer: d Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 250) All of the following statements about personal wellness are accurate except a) Personal wellness describes the pursuit of one’s physical and mental potential through a personal health-promotion program. b) Personal wellness is an important fringe benefit in progressive companies. c) Personal wellness is a form of preventive stress management. d) Personal wellness is a lifestyle that reflects a true commitment to health. e) People who aggressively maintain personal wellness are better prepared to deal with the inevitable stresses of work and work-life conflicts. Answer: b Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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251) Lentilla is a department manager who keeps working behind closed doors and has difficulty connecting with the employees in the department. Lentilla needs to have and develop ___. a) social awareness b) relationship management c) self-awareness d) self-management e) mood contagion Answer: b Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Application Difficulty: Medium AACSB: Analytic Question type: Essay 252) Briefly explain the concept of impression management. Answer: Impression management is the systematic attempt to influence how others perceive us. Impression management is a matter of routine in everyday life. We dress, talk, act, and surround ourselves with things that convey a desirable image to other persons. When well done, impression management can help us advance in jobs and careers, form relationships with people we admire, and even create pathways to group memberships. Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 253) Using the contributions and inducements that are referred to in the psychological contract between the individual and the organization, explain the nature of the employment relationship that you have had with an organization for which you now work or have worked in the past. Answer: A psychological contract is a set of expectations held by an individual about what will be given and received in the employment relationship¾which is the starting point for achieving a person-job fit. A healthy psychological contract has a balance between the contributions a person makes to the organization and the inducements received in return. Contributions include, but are not limited to, a person’s effort, time, creativity, loyalty, and Test Bank

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commitment that make the individual a valuable human resource. Inducements from the organization include, but are not limited to, pay, fringe benefits, training, opportunity, and respect that are given in exchange for the individual’s contributions. An ideal work situation is one in which the exchange of values in the psychological contract is considered fair. The students should apply this framework to an existing or prior employment relationship, clearly identifying the contributions and inducements. They should also indicate whether they believed the psychological contract was fair and provide an explanation for their judgments. Learning Objective 15.1: Summarize perceptual tendencies and distortions that influence behaviour. Section Reference 15.1: Perception Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 254) List and describe are the three main distinctions of Jung’s model of personality differences? Answer: Jung’s model of personality differences includes three main distinctions. The first is how people differ in the ways they relate to others—by extraversion (outgoing and sociable) or introversion (shy and quiet). The second is how they differ in the ways they gather information—by sensation (emphasizing details, facts, and routine) or by intuition (looking for the big picture and being willing to deal with various possibilities). The third is how they vary in ways of evaluating information—by thinking (using reason and analysis) or by feeling (responding to the feelings and desires of others). Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 255) Identify and define the “Big Five” personality traits. Describe the behavioural characteristics and tendencies of the polar opposites on each of these personality traits. Answer: The “Big Five” personality traits are extraversion, agreeableness, conscientiousness, emotional stability, and openness. Extraversion reflects the degree to which someone is outgoing, sociable, and assertive. An extravert is comfortable and confident in interpersonal relationships, whereas an introvert is more withdrawn and reserved in interpersonal relationships. Agreeableness concerns the degree to which someone is good-natured, cooperative, and trusting. An agreeable person gets along well with others while a disagreeable person is a source of conflict and discomfort for others. Conscientiousness is the degree to which someone is responsible, dependable, and careful. A conscientious person focuses on what can be accomplished and meets commitments, while a person lacking conscientiousness is careless, often trying to do too much and failing, or doing little. Emotional stability reflects the degree to which someone is relaxed, secure, and unworried. An emotionally stable person is calm and confident whereas a person lacking emotional Test Bank

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stability is anxious, nervous, and tense. Openness concerns the degree to which someone is curious, open to new ideas, and unworried. An open person is broad-minded, receptive to new things, and open to change, whereas a person lacking openness is narrow-minded, has few interests, and is resistant to change. Learning Objective 15.2: Explain common personality differences and their behavioural implications. Section Reference 15.2: Personality Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 256) List and describe the most commonly discussed and measured facets of job satisfaction? Answer: The following are among the facets of job satisfaction that are most commonly discussed and measured: • Work itself—does the job offer responsibility, interest, challenge? • Quality of supervision—are task help and social support available? • Co-workers—how much harmony, respect, friendliness exists? • Opportunities—are there avenues for promotion, learning, growth? • Pay—is compensation, actual and perceived, fair and substantial? • Work conditions—do conditions offer comfort, safety, support? • Security—is the job and employment secure? Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 257) What is job performance? What are the key factors involved in individual job performance and how are they related to one another in influencing individual performance? Answer: Job performance is the quantity and quality of task accomplishments by an individual or group at work. Individual job performance can be described with the individual performance equation, which is: Performance = Ability x Support x Effort. This equation clearly indicates that if high performance is to be achieved in any work setting, the individual contributor must possess the right abilities, have the necessary support, and work hard at the task. Each performance component is essential; without any one component, performance will be low due to the multiplicative relationship that exists among ability, support, and effort. Performance begins with ability¾it establishes an individual’s capacity to perform at a high level of accomplishment. Performance requires support¾to fully utilize their abilities workers need sufficient resources, clear goals and directions, freedom from unnecessary rules and job constraints, appropriate technologies, and performance feedback. Performance involves effort¾the willingness to work hard at a task is an essential component of the highperformance workplace. However, the decision to exert work effort rests squarely on the individual alone. Test Bank

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Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Application Difficulty: Medium AACSB: Analytic 258) Define “organizational citizenship.” Why would a worker want to act in the manner described by the definition? Answer: Organizational citizenship is a willingness to “go beyond the call of duty” or “go the extra mile” in one’s work. A worker would be willing to do this when they are happy with their work activities, their pay, their supervisor and their co-workers. They feel an ownership link to the organization and feel empowered so they take great pride in representing the organization to whomever or whatever is in the business interaction. They want to do things right. It shows pride and respect for themselves and for the organization Learning Objective 15.3: Discuss the components of attitudes and the importance of job satisfaction. Section Reference 15.3: Attitudes Bloom’s: Analysis Difficulty: Medium AACSB: Reflective Thinking 259) Emotional intelligence is the ability to understand emotions and manage relationships effectively. The text defines an emotion as a strong feeling directed toward someone or something. Describe the other two aspects of individual psychology that are of interest to management scholars. Answer: Moods and stress are the other aspects of individual psychology that are important and significant to management scholars. Moods are generalized positive and negative feelings or states of mind that may persist for some time. Human beings seem to have occasional moods which can represent the full range of possibilities. Researcher findings indicate that positive and negative emotions of leaders can be “contagious,” causing followers to display similarly positive and negative moods. The main implication here for leaders undertaking the primal task of managing their moods and the moods of others is this: Humour hastens the spread of an upbeat climate. But like the leader’s mood in general, humour must resonate with the organization’s culture and its reality. Smiles and laughter, we would posit, are only contagious when they’re genuine. Good moods galvanize good performance, but it doesn’t make sense for a leader to be as chipper as a blue jay at dawn if sales are tanking or the business is going under. The most effective executives display moods and behaviours that match the situation at hand, with a healthy dose of optimism mixed in. They respect how other people are feeling—even if it is glum or defeated—but they also model what it looks like to move forward with hope and humour. Stress is a state of tension experienced by individuals facing extraordinary demands, constraints, or opportunities. Stressors are things that cause stress. Whether they originate Test Bank

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directly from a change environment, other aspects of the work setting, or personal and nonwork situations, stressors can influence attitudes, emotions and moods, behaviour, job performance, and even health. Work factors have an obvious potential to create job stress. As high stress accelerates mental performance beyond certain limits, executives and employees alike start operating almost unconsciously with low creativity and reduced perspective and integration. At a certain point, doing things faster and multitasking at ever-higher levels begins to damage employee performance and judgment—and directly thwart the inflow of business insights. Furthermore, as pace and stress increase, people's ability to relate genuinely from the heart and establish meaningful business relationships sharply decreases. Salespeople in a hurry are mostly ineffective. Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 260) Briefly explain the two types of stress and provide an example of each one. Answer: Stress can be either positive or negative depending upon how people perceive it. Their reaction to and capacity to cope with stress depends upon their personality and their perception of the stressor. The two types of stress discussed in the text are constructive and destructive. Eustress is constructive stress. For example, when a student considers final examinations as a challenge to be met, he or she experiences eustress. Eustress can be viewed as a motivator that contributes to an increase in performance. For example, in project environments, when project teams face deadlines or challenges to cut costs, they often put forward their best efforts to overcome problems. Typically, individuals experiencing eustress feel that they have control over the situation (e.g., a confident project manager presenting a project plan). Generally, these individuals use their conceptual skills to develop a sound plan and their interpersonal and communications skills to carry it out. Distress is destructive stress. A student who views a final examination as an insurmountable crisis experiences distress. Distress is a de-motivator that reduces the ability to perform. Its presence may cause physical and/or emotional suffering and disturbance. Individuals experiencing distress feel that they have little or no control over the situation. For example, a technical project manager lacking in human skills may be nervous about leading the project team and managing the project. Because of this fear, he or she may lose self-confidence and self-esteem, consequently reducing the quantity and quality of performance. Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking Test Bank

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261) Locus of Control, authoritarianism, Machiavellianism, self-monitoring and Type A personality are considered as personality traits. Describe three of the above-mentioned personality traits. Answer: Locus of Control – Locus of control refers to the extent to which an individual perceives that he or she has control over the events that affect his or her life. Research has shown that we differ in our perceptions of control. Someone with an 'internal locus of control' believes that he or she has control over what happens to them, and that individual decisions and actions which he or she takes influence personal outcomes. The belief that we play a role in determining the events that impinge upon us is considered an important personal resource in coping with stress. Individuals with an 'internalised locus of control' therefore appear to suffer less threat and fewer adverse consequences than more 'externally' controlled people who tend to believe in luck or fate and perceive very little control over things that concern them. Authoritarianism – is the degree to which a person defers to authority and accepts status differences. The tendency of people with authoritarian personalities to obey orders can cause problems if they follow higher-level directives to the point of acting unethically—or even illegally. Machiavellianism – describes a personality who loves to manipulate people for the sheer joy that comes from the activity. The text describes Machiavellianism as the extent to which someone is emotionally detached and manipulative in using power. Machiavellians, especially the really high-scoring ones (high-Machs), have an uncanny ability to say the things that give others warm, fuzzy feelings. They can sell snow to people in Nome, Alaska. They have impeccable timing for the phrase that will change your mind. In short, if you did not study them, you would overlook a terrific opportunity to pick up tips. Self-monitoring reflects the degree to which someone is able to adjust and modify behaviour in response to the immediate situation and to external factors. A person high in selfmonitoring tends to be a learner, comfortable with feedback, and both willing and able to change. A Type A personality is a person oriented toward extreme achievement, impatience, and perfectionism. One of the important tendencies of Type A persons is to bring stress on themselves, even in situations others may find relatively stress free. Learning Objective 15.4: Illustrate how emotions, moods, and stress influence individual behaviour. Section Reference 15.4: Emotions, Moods, and Stress Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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CHAPTER 16 MOTIVATION THEORY AND PRACTICE Question type: True/False 1) Two of the practical managerial questions regarding work motivation are: Why do some people work enthusiastically? Why do some people do only the minimum needed to avoid reprimand or termination? Answer: True Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 2) Understanding motivation and applying motivational concepts are incidental to exercising effective leadership in inspiring people to work hard. Answer: False Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 3) An unfulfilled physiological or psychological desire is called a need. Answer: True Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 4) Higher-order needs are desires for psychological development and growth, and they include Test Bank

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esteem and self-actualization needs. Answer: True Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 5) Maslow’s progression principle holds that a need at one level does not become activated until the next lower-level need is already satisfied. Answer: True Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 6) According to the hierarchy of needs theory, the lower-order needs focus on desires for psychological development and growth. Answer: False Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 7) According to the hierarchy of needs theory, the need to self-actualize can never be fully met. Answer: True Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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8) A person at the self-actualization level of Maslow’s hierarchy will be satisfied by creative and challenging work, participation in decision making, job flexibility, and job autonomy. Answer: True Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 9) Physiological needs can be fulfilled with rest, refreshment breaks, physical comfort on the job, and reasonable work hours. Answer: True Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 10) The lower order needs in Maslow’s hierarchy of needs theory are similar to growth needs in ERG theory. Answer: False Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 11) Alderfer’s ERG theory has three need categories: existence needs, relatedness needs, and growth needs. Answer: True Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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12) The ERG theory assumes that a lower-level need can become reactivated when a higher-level need cannot be satisfied. Answer: True Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 13) According to ERG theory, relatedness needs are desires for continued satisfying growth and development. Answer: False Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 14) The frustration-regression principle of ERG theory holds that an already satisfied, lowerlevel need becomes reactivated and can influence behaviour when a higher-level need cannot be satisfied. Answer: False Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 15) According to Herzberg’s two-factor theory, a satisfier factor is found in the job itself, and includes a sense of achievement, recognition, responsibility, advancement, or personal growth. Answer: True Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 16) Herzberg’s two-factor theory indicates that hygiene factors reflect the things that turn people off and refer to the work setting. Answer: True Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 17) Herzberg’s two-factor theory indicates that hygiene factors reflect the things that turn people on and contribute to job satisfaction. Answer: False Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 18) Herzberg’s advice to managers is to always correct poor context and to build satisfier factors into the job. Answer: True Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 19) High-need achievers prefer achievable but challenging goals and expect feedback on performance. Answer: True Test Bank

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Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 20) In David McClelland’s view, the successful executive is likely to possess a high need for social power that is greater than an otherwise strong need for affiliation. Answer: True Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 21) According to David McClelland’s acquired needs theory, achievement, power, and affiliation needs are acquired over time as a result of individual life experiences. Answer: True Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 22) The need for power reflects the desire to do something better or more efficiently, to solve problems, or to master complex tasks. Answer: False Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 23) In David McClelland’s motivation theory, the need for achievement is the desire to control, influence, or be responsible for other people. Test Bank

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Answer: False Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 24) According to acquired needs theory, the need for affiliation is a manifestation of the desire to establish and maintain friendly and warm relations with other people. Answer: True Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 25) Although the need for personal power is exploitative and involves manipulation and power for the pure sake of personal gratification, it is detrimental to success in management. Answer: True Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 26) An extremely high need for affiliation may interfere with a person’s ability to make decisions with which others disagree. Answer: True Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 27) Process theories of motivation offer advice and insight on how people actually make choices Test Bank

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to work hard or not, based on their individual preferences, the available rewards, and possible work outcomes. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 28) According to J. Stacy Adams, equity theory predicts that when people perceive inequity in their situation as compared to others, they may change work inputs by putting less effort into their jobs, change the rewards received by asking for better treatment, change the comparison points by finding ways to make things appear better, or change the situation by leaving the job. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 29) The equity theory states that people who are treated unfairly will be motivated to act in ways that reduce the perceived inequity. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 30) Under-reward inequity occurs when an individual perceives that their outcomes-to-inputs ratio is greater than that of their counterpart. Answer: False Test Bank

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Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 31) Perceived inequity occurs whenever a person feels that the rewards received for their work efforts are unfair given the rewards others appear to be getting for their work efforts. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 32) People who feel underpaid may attempt to restore equity by increasing the quantity of work, increasing the quality of work, taking on more difficult assignments, or working overtime. Answer: False Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Analysis Difficulty: Hard AACSB: Analytic 33) Managers can do little to anticipate negative inequities even though equity comparisons are likely whenever monetary incentives or pay increases are allocated. Answer: False Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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34) Managers should carefully communicate an evaluation of the reward being given and the performance on which it is based. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Comprehension Difficulty: Hard AACSB: Analytic 35) The concept of equity sensitivity proposes that people have different preferences for equity and thus react differently to perceptions of inequity. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 36) Expectancy theory predicts that high expectancy, instrumentality, and valence will result in zero motivation. Answer: False Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 37) In Victor Vroom’s expectancy theory of motivation, expectancy refers to the person’s belief that working hard will result in achieving a desired level of task performance. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy Test Bank

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motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 38) In the expectancy theory of motivation, the person’s belief that successful performance will be followed by rewards or other potential outcomes is called instrumentality. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 39) Performance-outcome expectancy refers to a person’s belief that successful performance will be followed by rewards and other work-related outcomes. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 40) In the expectancy theory of motivation, the value the individual assigns to possible rewards and other work-related outcomes is called valence. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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41) The equation “motivation = expectancy x instrumentality x valence” represents the relationships among the key variables in the expectancy theory of motivation. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 42) According to expectancy theory, motivation will suffer when expectancy is high and instrumentality and valence are low; or when valence is high and expectancy and instrumentality are low; or when expectancy, instrumentality, and valence are all low. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 43) To make the most of the expectancy theory of motivation, managers should focus on group needs rather than individual thought processes. Answer: False Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 44) The basic premise of the goal-setting theory is that task goals can be highly motivating if they are properly set and are well managed. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy Test Bank

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motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 45) Locke’s goal-setting theory states that task goals can be motivating when they are set through participatory means. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 46) To achieve motivational benefits of goal setting, Locke recommends goal specificity, goal difficulty, goal acceptance, and goal commitment. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 47) Employees will respond positively to externally imposed goals if the managers assigning them are trusted and employees believe they will be adequately supported in their efforts to achieve the goals. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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48) In using goal-setting theory, managers should separate rewards from goal accomplishment. Answer: False Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 49) The basic premise of the self-efficacy theory is that when people believe themselves to be capable, they are more motivated to work at a task. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 50) Verbal persuasion is a way of enhancing self-efficacy by praising the efforts of a person performing a job. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 51) Self-efficacy theory is also referred to as the social learning theory. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 52) Using terms like confidence, competence, and ability when interacting with employees indicates a manager who is a proponent of the self-efficacy theory. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Application Difficulty: Medium AACSB: Analytic 53) Utilizing a strategy which attempts to boost employee’s confidence, competence, and ability does not indicate a manager’s belief in social learning theory. Answer: False Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Application Difficulty: Medium AACSB: Analytic 54) Managers who help create feelings of self-efficacy in others have very little effect on motivation to work. Answer: False Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Application Difficulty: Medium AACSB: Analytic 55) There is no link between the ideas and theories of Bandura, Vroom, and Locke relative to self-efficacy theory. Test Bank

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Answer: False Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 56) According to Albert Bandura’s work, there are four ways to enhance self-efficacy: enactive mastery, vicarious modelling, verbal persuasion, and emotional arousal. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 57) The more you work at a task and are successful at that task, the more your experience builds and the more confident you become at that task. This is a way to build self-efficacy and is referred to as enactive mastery. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 58) When we watch someone, who is good at a task, we are able to observe how they complete the task and therefore gain the confidence to do that task ourselves. This illustrates the selfefficacy building technique called vicarious modelling. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Test Bank

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Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 59) When others praise our efforts and link those efforts with performance successes, high motivation often results in an individual. This is the self-efficacy building technique called verbal persuasion. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 60) Getting “psyched up” and highly motivated to perform in key competitions is building selfefficacy through emotional arousal. Answer: True Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 61) Reinforcement theory considers environmental consequences to be the most important factor that influences human behaviour. Answer: True Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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62) According to the law of effect, behaviour that results in pleasant outcomes is likely to be repeated, and behaviour that results in unpleasant outcomes is not likely to be repeated. Answer: True Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 63) Operant conditioning is the process of applying the law of effect to control behaviour by manipulating its consequences. Answer: True Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 64) An operant conditioning strategy designed to strengthen or increase the frequency of behaviour by making a pleasant consequence contingent on the occurrence of the behaviour is called positive reinforcement. Answer: True Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 65) Clearly identifying work behaviours and maintaining a diverse inventory of rewards are two examples of positive reinforcement. Answer: True Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and Test Bank

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strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Application Difficulty: Medium AACSB: Analytic 66) An operant conditioning strategy designed to eliminate or decrease the frequency of a behaviour by making an unpleasant consequence contingent on the occurrence of the behaviour is called negative reinforcement. Answer: False Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 67) To use punishment effectively, managers should tell the individual what is being done wrong but not what is being done right. Answer: False Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 68) To use punishment effectively, managers should make sure the punishment matches the behaviour. Answer: True Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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69) A manager who has been nagging an employee every day about tardiness and makes no comment when the employee arrives on time one day is using negative reinforcement. Answer: True Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Application Difficulty: Medium AACSB: Analytic 70) Extinction strategies are employed to strengthen or increase the frequency of desirable behaviour. Answer: False Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 71) Punishment strategies can be effective when the managers focus on the undesirable behaviour rather than the characteristics of the person. Answer: True Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 72) Shaping is positive reinforcement of successive approximations to the desired behaviour. Answer: True Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Test Bank

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Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 73) The creation of a new behaviour by the positive reinforcement of successive approximations to the desired behaviour is called progression. Answer: False Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 74) Continuous reinforcement administers a reward each time a desired behaviour occurs. Answer: True Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 75) The law of contingent reinforcement advises managers to give rewards only if the desired behaviour is exhibited. Answer: True Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 76) The law of contingent reinforcement advises managers to give rewards as soon as possible following the occurrence of a desirable behaviour. Test Bank

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Answer: False Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 77) The law of immediate reinforcement advises managers to use both punishment and positive reinforcement to gain maximum impact on behaviour. Answer: False Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 78) An intermittent reinforcement schedule works best to draw forth a desired behaviour. Answer: False Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 79) To use positive reinforcement effectively, managers should recognize individual differences in allocating rewards and inform everyone what must be done to get rewards. Answer: True Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 80) A manager can punish an employee by administering an unpleasant outcome, such as a verbal reprimand, pay reduction, or demotion. Answer: True Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Application Difficulty: Medium AACSB: Analytic 81) Job design is the process of creating or defining jobs by assigning specific tasks to individuals and groups. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 82) Job design creates a work structure for bureaucratic organizations and identifies key individuals for specific tasks. Answer: False Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 83) The job design approach that involves standardizing work procedures so that people work in well-defined and highly specialized tasks is known as job simplification. Answer: True Test Bank

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Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 84) Job simplification has the advantages of workers being easier to train, supervise, and replace since the jobs do not require complex skills. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 85) The potential disadvantages of job simplification are tardiness and absenteeism, boredom with tasks, alienation from work, and poor performance. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 86) Job enrichment works best when people have appropriate knowledge, skills, and abilities to perform the job. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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87) The job design strategy that increases task variety by periodically shifting workers among jobs involving different task assignments is called job rotation. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 88) Job rotation can broaden people’s understanding of different jobs and enable workers to experience greater task variety. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 89) Vertical loading involves pulling pre-work and/or later work stages into the job in order to enlarge the job. Answer: False Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 90) Job enlargement is the practice of building more opportunities for satisfaction into a job by expanding its content to include work planning and evaluating duties that are normally performed by the supervisor. Answer: False Test Bank

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Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 91) In promoting job enrichment, Frederick Herzberg says: “If you want people to do a good job, give them a good job to do.” Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 92) Changes in a job that are designed to increase job depth are sometimes called vertical loading. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 93) Enriching jobs through vertical loading can be accomplished by allowing people to do complete units of work, removing controls that limit people’s discretion in their work, granting employees authority to make decisions regarding their work, and providing performance feedback. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 94) According to J. Richard Hackman, skill variety, task identity, task significance, autonomy, and feedback from the job are five core job characteristics of an enriched job. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 95) Establishing client relationships, forming natural work units, opening feedback channels, practicing vertical loading, and combining tasks are ways of improving one or more of the core job characteristics. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 96) The changing content and context of jobs and the needs and interests of a diverse workforce are creating pressure for the development of alternative work arrangements in the modern workplace. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 97) The five core job characteristics identified in the Hackman et al model will affect all people Test Bank

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in the same way. Answer: False Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 98) In those situations when job enrichment is a good choice, Hackman et al recommend five ways to improve the core job characteristics: form natural units of work, combine tasks, establish client relationships, open feedback channels, and practice vertical loading. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 99) Job enrichment utilizing the key elements of the Job Characteristics Model of Hackman et al will not make a job vertically bigger. Answer: False Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 100) Compressed workweeks, flexible working hours, job sharing, telecommuting, and part-time work are forms of alternative work arrangements. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Test Bank

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Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 101) The most common form of flexible working hours is a “4-40” schedule –– that is, 40 hours of work accomplished in four 10-hour days. Answer: False Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 102) Flexible working hours usually result in greater autonomy for individuals with respect to their work schedules, along with a greater opportunity to them to take care of personal affairs. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 103) Flexible working hours usually result in a less positive attitude toward the organization and lower job performance. Answer: False Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 104) Any work schedule that allows a full-time job to be completed in less than the standard five Test Bank

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days of eight-hour shifts is known as the compressed workweek. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 105) Potential disadvantages of the compressed workweek for individuals include increased fatigue and family adjustment problems. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 106) The benefits of the compressed workweek for the organization include lower absenteeism and possible improved performance. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 107) A company that requires employees to be at work between 9:30 a.m. and 3:30 p.m. but allows them to schedule their remaining workday to fit personal needs is using flexible working hours. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Test Bank

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Section Reference 16.4: Motivation and Job Design Bloom’s: Application Difficulty: Medium AACSB: Analytic 108) When employees in an organization agree to cut back on their work hours so everyone can keep their jobs during a pending layoff, they are using the alternative work arrangement of job sharing. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 109) As a result of a job sharing initiative, employees whose seniority would protect them from layoffs would have reduced salaries and employees who would otherwise be laid off would be able to continue to work with reduced earnings. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Application Difficulty: Medium AACSB: Analytic 110) Virtual offices include everything from an office at home to mobile workspaces in automobiles. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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111) Telecommuting frees the jobholder from the normal constraints of commuting, fixed hours, special work attire, and even direct contact with supervisors. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 112) Potential disadvantages of telecommuting include freedom from the constraints of commuting and fixed hours, increased productivity, being one’s own boss, and having more personal time. Answer: False Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 113) Employees who are employed on a part-time and temporary basis to supplement a permanent workforce are called contingency workers. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 114) The use of contingency workers has grown dramatically because they are just as committed to their employers as permanent workers are and they significantly improve productivity. Answer: False Test Bank

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Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 115) Contingency workers are often paid less and typically do not receive the same benefits packages, if at all, as full-time workers. Answer: True Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Question type: Multiple Choice 116) Which of the following are practical managerial questions regarding work motivation? a) Why do some people work enthusiastically? b) Why do some people do only the minimum needed to avoid reprimand or termination? c) How can a team leader or manager build a high-performance work setting? d) What can be done to ensure that everyone achieves the highest possible performance every workday? e) a, b, & d Answer: e Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 117) ___ refer(s) to forces within the individual that account for the level, direction, and persistence of effort expended at work. a) Work desire Test Bank

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b) Motivation c) Job preferences d) Job expectations e) Career aspiration Answer: b Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 118) Which of the following statements about the implications of motivation is incorrect? a) Understanding motivation and applying motivational concepts are incidental to exercising effective leadership in inspiring people to work hard. b) A highly motivated person works hard at a job. c) An unmotivated person does not work hard at a job. d) A highly motivated workforce is essential for organizations to consistently achieve highperformance outcomes. e) A manager who leads through motivation creates conditions under which other people are consistently inspired to work hard. Answer: a Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 119) Physiological, safety, and social needs are ___, according to Maslow’s hierarchy of needs theory. a) survival order needs b) lower-order needs c) higher-order needs d) superior needs e) inferior needs Answer: b Learning Objective 16.1: Explain how individual needs motivate behaviour. Test Bank

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Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 120) Higher-order needs include ___ needs. a) esteem and social b) respect and safety c) social and self-actualization d) recognition and social e) esteem and self-actualization Answer: e Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 121) In Maslow’s hierarchy of needs, lower-order needs differ from higher-order needs as higher-order needs a) focus on desires for good-interpersonal relationships. b) are addressed by things such as physical comfort on the job and reasonable work hours. c) focus on desires for psychological development and growth. d) are served by job security and adequate compensation and benefits. e) focus on desires for physical and social well-being. Answer: c Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 122) In Maslow’s hierarchy of needs theory, the ___ principle holds that a satisfied need is not a motivator of behaviour. a) process b) progression Test Bank

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c) deficit d) hygiene e) expectancy Answer: c Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 123) Maslow’s ___ holds that a need at one level does not become activated until the next lowerlevel need is already satisfied. a) reinforcement principle b) satisfier principle c) deficit principle d) progression principle e) hierarchy principle Answer: d Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 124) Safety needs can be fulfilled with all of the following outcomes except a) job security. b) base compensation. c) benefits. d) praise and recognition. e) safe working conditions. Answer: e Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic Test Bank

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125) Physiological needs can be fulfilled with all of the following outcomes except a) rest. b) refreshment breaks. c) safe working conditions. d) physical comfort on the job. e) reasonable work hours. Answer: c Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 126) Which of the following is an incorrect description of need satisfaction in Maslow’s hierarchy? a) Self-actualization needs are satisfied entirely with intrinsic rewards. b) Esteem needs are satisfied by both intrinsic and extrinsic rewards. c) Social needs are satisfied by both intrinsic and extrinsic rewards. d) Safety needs are satisfied entirely by extrinsic rewards. e) Physiological needs are satisfied entirely by extrinsic rewards. Answer: c Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 127) Avery, a recent BComm graduate, wanted to get an entry-level management position and work hard to become an assistant manager in one year’s time. After more than a year’s struggle Avery achieved that goal and became an assistant manager. Now Avery seems to have become complacent and does not seem to have the same drive as a year ago. Which of the following does Avery’s situation exemplify? a) Self-serving bias b) Framing error c) Deficit principle Test Bank

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d) Progression principle e) Frustration-regression principle Answer: c Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Application Difficulty: Medium AACSB: Analytic 128) Twinkle Corporation has a space where employees can meet during breaks and catch up with each other while having a snack or sipping a drink of their choice. The company is taking care of the employees' ___ needs according to Maslow’s hierarchy of needs theory. a) physiological b) safety c) social d) esteem needs e) self-actualization Answer: c Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Application Difficulty: Medium AACSB: Analytic 129) Dante’s Pipe Works provides lunch breaks, reasonable work hours, and wages that are sufficient for their employees to afford essentials such as food and shelter. According to Maslow’s hierarchy of needs theory, Dante’s Pipe Works addresses an employee’s ___ needs. a) physiological b) safety c) social d) esteem needs e) self-actualization Answer: a Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Application Test Bank

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Difficulty: Medium AACSB: Analytic 130) Vanguard Ltd. values their employees, and whenever possible gives public praise and recognition when they do well. Employees are offered free training programs, additional responsibility when requested and warranted, and promotes from within the company whenever possible. Vanguard is taking care of the employees’ ___ needs according to Maslow’s hierarchy of needs theory. a) physiological b) safety c) social d) esteem needs e) self-actualization Answer: d Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Application Difficulty: Medium AACSB: Analytic 131) According to the ERG theory proposed by Clayton Alderfer, relatedness needs are desires for a) physiological and material well-being. b) recognition, responsibility, and job autonomy. c) psychological growth and development. d) personal growth and development. e) satisfying interpersonal relationships. Answer: e Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 132) ___ needs described by Clayton Alderfer are essentially the same as the higher-order needs in Maslow’s hierarchy. Test Bank

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a) Esteem b) Relatedness c) Growth d) Existence e) Social Answer: c Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 133) The needs contained in Alderfer’s ERG theory of motivation include ___. a) desires for physiological and material well-being b) desires for satisfying interpersonal relationships c) desires for continued psychological growth and development d) all of the above e) none of the above Answer: d Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 134) According to ERG theory, ___ are desires for physiological and material well-being. a) existence needs b) esteem needs c) relatedness needs d) growth needs e) developmental needs Answer: a Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 135) The ___ of ERG theory holds that an already satisfied, lower-level need becomes reactivated and can influence behaviour when a higher-level need cannot be satisfied. a) frustration-regression principle b) deficit principle c) progression principle d) law of effect e) contingency principle Answer: a Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 136) In the two-factor theory of motivation, a ___ is found in job content, such as a sense of achievement, recognition, responsibility, advancement, or personal growth. a) growth factor b) satisfier factor c) hygiene factor d) achievement factor e) relatedness factor Answer: b Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 137) Which of the following items does not accurately describe satisfier factors in the two-factor theory? a) Satisfiers reflect the things that turn people on. b) Satisfiers refer to the nature of the job itself. c) Satisfiers prevent job dissatisfaction from occurring. d) Satisfiers contribute to job satisfaction. Test Bank

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e) Satisfiers include a sense of achievement, recognition, responsibility, advancement, or personal growth. Answer: c Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 138) In the two-factor theory of motivation, a ___ is found in job context, such as working conditions, interpersonal relations, organizational policies, and salary. a) existence factor b) satisfier factor c) hygiene factor d) affiliation factor e) relatedness factor Answer: c Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 139) All the following statements accurately describe Herzberg’s hygiene factors except a) hygiene reflects the things that turn people off. b) hygiene refers to the work setting. c) hygiene prevents job dissatisfaction from occurring. d) hygiene contributes to job satisfaction. e) hygiene includes working conditions, interpersonal relations, organizational policies, and salary. Answer: d Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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140) In Herzberg’s two-factor theory, hygiene factors involve ___ and affect ___. a) job content;job satisfaction b) job content; job dissatisfaction c) job context; job satisfaction d) job context; job dissatisfaction e) both job context and content; both job satisfaction and dissatisfaction Answer: d Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 141) From a practical perspective, the two-factor theory suggests that managers should ___. a) pay attention to both context and content b) always correct poor job context to eliminate any actual or potential sources of job dissatisfaction c) build satisfier factors into job content to maximize opportunities for job satisfaction d) b and c e) a, b, and c Answer: e Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 142) In Herzberg’s two-factor theory, interpersonal relations are regarded as ___ factors. a) satisfier b) equity c) valence d) hygiene e) compensation Answer: d Test Bank

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Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloomcode: Knowledge Difficulty: Easy AACSB: Analytic 143) Bailey works in an office where it is always cold, often causing employees, including Bailey to leaving the office and completing their work at home, which Bailey does not like to do. Management has just told Bailey that a reward will be given if all project deadlines can be met. Management’s intent with this award is to motivate and make Bailey happy. Bailey however knows that whatever the reward it it won’t eliminate the level of dissatisfaction with the poor working conditions. This is an example of which motivation theory? a) Need for Power b) Equity Theory c) Process Theory d) Two-Factor Theory e) Hygiene Factory Theory Answer: d Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Application Difficulty: Medium AACSB: Analytic 144) According to McClelland’s theory, the need for ___ is the desire to do something better, to solve problems, or to master complex tasks. a) power b) autonomy c) achievement d) affiliation e) participation Answer: e Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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145) According to David McClelland, people with a high need for power a) put their competencies to work. b) seek satisfying interpersonal relationships. c) must be able to master complex tasks. d) take medium risks in competitive situations. e) behave in ways that have a clear impact on other people. Answer: e Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 146) In McClelland’s motivation theory, the need for ___ is the desire to control, influence, or be responsible for other people. a) growth b) self-actualization c) achievement d) affiliation e) power Answer: d Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 147) The acquired needs theory states that people with a high need for achievement a) seek satisfying interpersonal relationships. b) prefer collective responsibility for results. c) tend to like jobs that involve working with people. d) take medium risks in competitive situations. e) behave in ways that have a clear impact on other people. Answer: d Test Bank

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Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 148) According to the acquired needs theory, the need for ___ is the desire to control other people, to influence their behaviour, or to be responsible for them. a) power b) achievement c) participation d) affiliation e) accomplishment Answer: a Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 149) Which of the following descriptions of the need for power is not accurate? a) The need for personal power is exploitative and involves manipulation and power for the pure sake of personal gratification. b) The need for personal power is crucial for success in management. c) The need for social power involves using power in socially responsible ways and is directed toward group or organizational objectives rather than personal objectives. d) The need for social power is essential to managerial leadership. e) People high in the need for power prefer work that involves control over other persons, has an impact on people and events, and brings public recognition and attention. Answer: b Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

Test Bank

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150) Over the past six months Riley has been considered a high achiever in the sales department by consistently having the highest sales in a given month and bringing in the most new clients in a given month. Referring to McClelland's three-needs theory, which of the following measures would best help to motivate Riley? a) recommending a promotion and a raise if he reaches his sales targets b) giving him the personal responsibility of managing an account on his own c) setting goals for himself d) giving him a managerial position that requires him, to help the sales representatives to accomplish their goals e) decreasing his sales quota Answer: b Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Application Difficulty: Medium AACSB: Analytic 151) Pat believes in excelling in all assigned projects and delivering beyond the expectations of the department manager. Because of this Pat has been asked to work independently on future projects. Pat is excited about this because this will provide an opportunity to use the knowledge and skills Pat has learned. Pat has a strong need for ___. a) affiliation b) achievement c) personal power d) social power e) relatedness Answer: b Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Application Difficulty: Medium AACSB: Analytic 152) Benedict asked Beatrice to take over his shifts at work several times in one month. Beatrice willingly agreed despite the fact that she won’t be paid for working Benedict’s shift. She wanted to avoid conflict with Benedict and have him like her as a friend. Beatrice has a high need for ___. Test Bank

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a) achievement b) affiliation c) equity d) power e) satisfaction Answer: b Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Application Difficulty: Medium AACSB: Analytic 153) ___ offer advice and insight on how people actually make choices to work hard or not, based on their individual preferences, the available rewards, and possible work outcomes. a) Content theories of motivation b) Process theories of motivation c) Decision making theories d) Behavioural planning theories e) Leadership theories Answer: b Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 154) Which statement about the equity theory of motivation is incorrect? a) It is a content theory of motivation. b) It is best known through the work of J. Stacy Adams. c) Its essence is that perceived inequity is a motivating state. d) It holds that people try to resolve the inequities they perceive they are experiencing. e) It holds that people who feel underpaid will reduce their work efforts to compensate for missing rewards. Answer: a Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy Test Bank

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motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 155) Alex notices that most of the department employees frequently take extended lunch breaks. Because Alex doesn’t do this Alex feels justified in working a little less hard during the day. This decision to work “less hard” is best explained by the ___ theory of motivation. a) expectancy b) equity c) two-factor d) goal-setting e) acquired needs Answer: b Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Application Difficulty: Medium AACSB: Analytic 156) ___ theory suggests that being treated unfairly makes people uncomfortable and motivates them to eliminate the discomfort. a) Acquired needs b) Two-factor c) Equity d) Hierarchy of needs e) ERG Answer: c Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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157) Which statement about the equity theory of motivation is inaccurate? a) Equity comparisons are likely whenever rewards such as monetary incentives or pay increases are allocated. b) A manager can do little to anticipate negative inequities. c) Rewards perceived as equitably administered can foster positive job performance. d) Feelings of inequity are determined solely by the individual receiving the rewards, not by the manager. e) Managers should carefully communicate an evaluation of the reward being given and the performance on which it is based and should suggest appropriate comparison points. Answer: b Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 158) According to the equity theory of motivation, which of the following is incorrect? a) Perceived inequity occurs whenever a person feels that the rewards received for their work efforts are unfair given the rewards others appear to be getting for their work efforts. b) Whenever a person perceives that their personal rewards/inputs ratio is equivalent to the rewards/inputs ratio of a comparative other person perceived equity occurs. c) People who feel underpaid will increase their work efforts in order to increase their compensation. d) People who feel underpaid experience a sense of anger, while those who feel overpaid experience a sense of guilt. e) Because people of difference preferences for equity each will react differently to an perceptions of inequity. Answer: c Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 159) Rudy is unhappy with the treatment from the department manager who feels that Rudy is not performing as per expectations. As a result, Rudy’s performance based incentives are at the Test Bank

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lowest level, including the company’s stock option plan. This is considerably less than what Rudy was expecting given the amount of dedication and hard work put in. Which of the following best represents Rudy’s understanding of the situation? a) Bandwagon effect b) Under-reward inequity c) Snowball effect d) Instrumentality e) Self-concordance Answer: b Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Application Difficulty: Hard AACSB: Analytic 160) ___ occur(s) whenever people feel that the rewards received for their work contributions are unfair in comparison to the rewards received by someone else. a) Frustration-regression b) Continuous reinforcements c) Extinction d) Perceived inequities e) Negative reinforcement Answer: d Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 161) Over-reward inequity occurs when an individual perceives that a) their outcomes-to-inputs ratio is lower than that of their counterpart. b) the reward received for the work completed is not matching the inputs. c) they are receiving less than they should in comparison to somebody else. d) their outcomes-to-inputs ratio is greater than that of their counterpart. e) the reward received for the effort is fair. Test Bank

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Answer: d Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 162) People who feel overpaid may attempt to restore equity by doing all of the following except a) increase the quantity of work done. b) increase the quality of work done. c) transfer to another job. d) take on more difficult assignments. e) work overtime. Answer: c Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Application Difficulty: Medium AACSB: Analytic 163) During Morgan’s second week on the job, another person, with the same qualifications and experience level was hired for the same position in a different department. Morgan happened to find out that the other person is getting paid more and receiving more fringe benefits than Morgan is which resulted in Morgan putting less effort into the job. Which theory motivated this behaviour? a) Achievement b) Affiliation c) Equity d) Power e) Satisfaction Answer: c Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Test Bank

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Bloom’s: Application Difficulty: Medium AACSB: Analytic 164) The concept of ___ proposes that people have different preferences for equity and thus react differently to perceptions of inequity. a) positive reinforcement b) instrumentality c) equity sensitivity d) perceived inequities e) negative reinforcement Answer: c Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 165) ___ are those who have a strong preference for rewards to be distributed equitably, so they react as the basic equity theory proposes. a) Influencers b) Altruists c) Sensitives d) Benevolents e) Entitleds Answer: c Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 166) ___ are people who try to create situations of positive inequity for themselves and react very negatively to any situations of negative inequity that they experience. Test Bank

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a) Altruists b) Sensitives c) Affiliates d) Benevolents e) Entitleds Answer: e Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 167) Which of the following is true about sensitives and entitleds? a) Both are less concerned about being under-rewarded. b) Both readily accept situations of negative inequity. c) Each have a strong preference for rewards. d) Both create situations of positive inequity for themselves. e) Each have a strong preference for rewards to be distributed equitably. Answer: c Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 168) ___ argues that work motivation is determined by individual beliefs regarding effortperformance relationships and the desirability of possible rewards and other work-related outcomes. a) Equity theory b) Goal-setting theory c) Process theory d) Expectancy theory e) Content theory Answer: d Test Bank

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Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 169) According to Vroom’s theory of motivation, if a person believes that they can achieve the performance level necessary to get promoted, the person is said to have ___. a) high benevolence b) positive expectancy c) positive instrumentality d) high need for affiliation e) positive valence Answer: b Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 170) A person’s belief that successful performance will be followed by rewards and other workrelated outcomes is known as ___. a) resiliency b) competency c) efficacy d) instrumentality e) valence Answer: d Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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171) According to expectancy theory, if a person has high instrumentality, they will a) not value the rewards being offered. b) lack the confidence they will be promoted if performance improves. c) believe they can meet the performance expectations through hard work. d) be able to link high performance and available rewards. e) perceive themselves to be under-rewarded for their efforts compared to other co-workers. Answer: d Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 172) In the expectancy theory of motivation, the value the individual assigns to possible rewards and other work-related outcomes is called ___. a) instrumentality b) valence c) expectancy d) the multiplier effect e) comparable worth Answer: b Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 173) According to Vroom’s expectancy theory, managers can build positive expectancies by a) setting challenging goals and making people work hard to achieve those goals even though they lack the ability and resources to complete the tasks. b) clarifying the rewards for high performance. c) selecting employees with the right abilities for the jobs to be done and providing them with the best training and development. d) increasing the communication with the employees to help identify important employee needs and benefits. Test Bank

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e) allotting rewards fairly on a performance-contingent basis. Answer: c Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 174) Which of the following relationships is correct as a statement of Vroom’s expectancy theory of motivation? a) Motivation = expectancy x instrumentality x valence. b) Motivation = expectancy x equity x rewards. c) Motivation = expectancy + equity + rewards. d) Motivation = expectancy x rewards x valence. e) Motivation = expectancy + rewards + valence. Answer: a Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 175) When a student doesn’t see the point of taking a class or questions its value, the student will more than likely not try very hard in the class. Which part of the equation motivation = expectancy × instrumentality × valence will be low in this case? a) expectancy b) valence c) all the variables d) instrumentality e) performance Answer: d Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Test Bank

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Bloom’s: Application Difficulty: Medium AACSB: Analytic 176) Kelly is a sales representative for a company in Edmonton and has been told that if the sales goals for the month is met, an all-expenses-paid trip to the Calgary Zoo will be Kelly’s reward, and that Kelly’s entire family would be included in the reward. Kelly has visited the zoo many times before and is not interested in going there again. According to expectancy theory, Kelly’s sales performance might be influenced by low ___. a) valence b) expectancy c) instrumentality d) goals e) reinforcement Answer: a Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Application Difficulty: Medium AACSB: Analytic 177) The expectancy theory of motivation predicts that a person will be motivated to work hard when ___. a) expectancy is high, and instrumentality and valence are low b) instrumentality is high, and expectancy and valence are low c) valence is high, and expectancy and instrumentality are low d) expectancy, instrumentality, and valence are all high e) expectancy or instrumentality or valence equals zero Answer: d Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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178) Which of the following measures when employed will help managers to create positive instrumentalities among employees? a) providing employees with the best training and development b) linking the needs and desires of employees with the rewards that can be earned through high performance c) increasing communication with employees to help identify important employee needs and desires d) clarifying the possible rewards for high performance and allocating those rewards fairly on a performance-contingent basis e) selecting workers with the right abilities for the jobs to be done Answer: d Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 179) The basic premise of the goal-setting theory is that ___. a) supervisors do a better job of setting goals than employees do b) tasks should be viewed as goals in and of themselves c) tasks should be separated from goals d) task goals can be highly motivating if they are properly set and are well managed e) task goals can be very intimidating and are the cause of low levels of motivation Answer: d Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 180) Managers can effectively obtain the motivational benefits of goal setting by a) encouraging the employees to do their best instead of mentioning what is expected of them. b) setting goals that are easily attainable so that the employees do not have the fear of failure in performing a task. c) providing feedback on the performance related to the assigned goal and rewarding people on Test Bank

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the accomplishment of those goals. d) letting the employees decide the goals they want to accomplish rather than making them aware of management’s expectations. e) giving challenging goals to the employees and pressurizing them to meet the expectations. Answer: c Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 181) Edwin Locke believes that goal setting can enhance individual work performance for all of the following reasons except a) goals can clarify performance expectations between supervisor and subordinate, among coworkers, and across organizational subunits. b) goals give direction to people in their work. c) goals can clarify performance expectations between competing organizations. d) goals can establish a frame of reference for task feedback. e) goals provide a foundation for behavioural self-management. Answer: c Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 182) ___ is an example of a goal-setting system that promotes participation. a) Expectation formation b) Management by objectives c) Operant conditioning d) Organizational behaviour modification e) The integrated motivation model Answer: b Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy Test Bank

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motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Synthesis Difficulty: Hard AACSB: Analytic 183) Which of the following statements about participation in goal setting is/are accurate? a) Participation allows for increased understanding of specific and difficult goals. b) Participation provides for greater acceptance of and commitment to goals. c) Workers will respond positively to externally imposed goals if the supervisors assigning them are trusted and workers believe they will be adequately supported in their efforts to achieve the goals. d) a and b e) a, b, and c Answer: e Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 184) What is another name for self-efficacy theory? a) Social Learning Theory b) Maslow’s Hierarchy of Needs Theory c) Alderfer’s ERG Theory d) The interactive Social Contract Theory e) Herzberg’s Two-factor Theory Answer: a Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 185) ___ is a person’s belief that they are capable of performing a task. Test Bank

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a) Expectancy b) Self-efficacy c) Instrumentality d) Credibility e) Competency Answer: b Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 186) ___ theory is a verbal method of persuasion often used by doctors to expedite patient recovery or to motivate patients to quit smoking. a) Achievement b) Goal-setting c) Self-efficacy d) Power e) Two-factor Answer: c Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Application Difficulty: Medium AACSB: Analytic 187) The essence of self-efficacy theory is that a) when people don’t believe in themselves, they quit working but try harder to cover it up. b) when people believe themselves to be capable, they will be more motivated to work hard at a task. c) when managers are autocratic, the workforce productivity improves. d) when people believe in themselves, they are motivated to ask for a raise. e) when people believe in themselves, there is nothing they can’t do. Answer: b Test Bank

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Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 188) According to Bandura, self-efficacy is a) an undifferentiated feeling of confidence in one’s ability to perform a task. b) not an undifferentiated feeling of confidence in one’s ability to perform a task. c) not a theory in which he believes. d) only relative to assembly-line situations. e) only relative to administrative tasks. Answer: b Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 189) The more you work at a task, the more your experience builds and the more confident you become at doing it. This is a self-efficacy enhancement method called a) practicality. b) enactive mastery. c) vicarious modelling. d) feedback. e) repetition. Answer: b Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic

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190) According to Albert Bandura, if an individual becomes so enthusiastic about a task or project they cannot wait to begin work on it and successfully complete it, this is referred to as ___. a) emotional arousal b) vicarious modelling c) social persuasion d) verbal persuasion e) enactive mastery Answer: a Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 191) Which of the following sources helps to enhance self-efficacy through learning by observing others succeed at a task? a) social persuasion b) verbal persuasion c) emotional arousal d) vicarious modelling e) enactive mastery Answer: d Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 192) Terms such as confidence, competence, and ability are closely associated with (the) a) Herzberg’s Two-factor Theory. b) Blake-Mouton Managerial Grid. c) Self-efficacy Theory. d) William’s Theory of Self. e) Alderfer’s ERG Theory. Test Bank

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Answer: c Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 193) From a manager’s perspective, which of the following is likely to pay off with increased levels of motivation in employees? a) boosting feelings of self-confidence in employees b) praising an employee’s job competence c) praising an employee’s job abilities d) all of the above e) none of the above Answer: d Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Application Difficulty: Medium AACSB: Analytic 194) Reinforcement theory considers ___ to be the most important factor that influences human behaviour. a) environmental consequences b) the perceived equity of rewards c) the level of need satisfaction that is associated with a reward d) the desire to maximize expectancies e) valence of rewards Answer: a Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 195) A basic premise of reinforcement theory is that behaviour that results in pleasant outcomes is likely to be repeated, and behaviour that results in unpleasant outcomes is not likely to be repeated. This premise is known as the ___. a) outcome likelihood estimator b) law of effect c) reinforcement imperative d) behavioural results rule e) behavioural consequences paradigm Answer: b Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 196) The law of effect states that ___. a) every behaviour is the effect of some environmental motivator b) every reward has some effect c) behaviour that results in pleasant outcomes is likely to be repeated; behaviour that results in unpleasant outcomes is not likely to be repeated d) the effects of an environmental response can be determined by monitoring behaviours e) people can be motivated to perform both pleasant and unpleasant tasks Answer: c Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 197) Blair had put extra hours into a project and made sure that all errors and glitches were effectively taken care of. Blair’s manager acknowledged this effort and recommended that Blair be part of the reconnaissance team visiting China. This made Blair was very happy and assured the manager that putting in extra effort was something the company could continue to expect Test Bank

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from Blair. Which of the following does this situation exemplify? a) Law of effect b) Under-reward inequity c) Deficit principle d) Progression principle e) ERG theory Answer: a Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Application Difficulty: Medium AACSB: Analytic 198) ___ is the control of behaviour by manipulating its consequences. a) Relative benchmarking b) Verbal persuasion c) Vicarious modelling d) Operant conditioning e) Concurrent control Answer: d Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 199) Guidelines for using positive reinforcement include all of the following except a) maintain a narrow inventory of rewards. b) recognize individual differences in allocating rewards. c) inform everyone what must be done to get rewards. d) follow the laws of contingent and immediate reinforcement. e) clearly identify desirable work behaviours. Answer: a Test Bank

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Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 200) ___ strengthens behaviour by making a desirable consequence contingent on its occurrence. a) Vicarious modelling b) Extinction c) Punishment d) Job rotation e) Positive reinforcement Answer: e Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 201) Ray encourages the department employees by recognizing and immediately rewarding a good performance, in the hopes that it motivates the employees to consistently perform well. This type of strategy to increase the frequency of desirable behaviour is known as ___. a) vicarious modelling b) job rotation c) positive reinforcement d) extinction e) punishment Answer: c Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Application Difficulty: Medium AACSB: Analytic

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202) A manager nodding to express approval to an employee who is making a relevant comment during a staff meeting is an example of ___. a) equity exchange b) expectancy development c) positive reinforcement d) progression e) executive conditioning Answer: c Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Application Difficulty: Medium AACSB: Analytic 203) An operant conditioning strategy designed to strengthen or increase the frequency of a behaviour by making the avoidance of an unpleasant consequence contingent on the occurrence of the behaviour is called ___. a) punishment b) negative reinforcement c) extinction d) shaping e) deficit conditioning Answer: b Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 204) Devin manages a production facility that is currently having a hard time keeping up with orders. To get the employees to agree to work on the weekends and delay their vacations so that they can get caught up, Devin offers them days off in exchange. Which reinforcement strategy is Devin using on his employees? a) operant conditioning b) negative reinforcement Test Bank

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c) punishment d) extinction e) shaping Answer: a Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Application Difficulty: Medium AACSB: Analytic 205) Caelan encourages employees who have not been meeting the job expectations by ignoring any minor issues when the employees actually do meet expectations. This type of strategy used to strengthen the desirable behaviour is called ___. a) extinction b) intermittent reinforcement c) positive reinforcement d) punishment e) negative reinforcement Answer: e Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Application Difficulty: Medium AACSB: Analytic 206) A manager who issues a written reprimand to an employee who reports late for work one day is using ___. a) frustration-regression b) negative reinforcement c) extinction d) deficit conditioning e) punishment Answer: e Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and Test Bank

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strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 207) ___ is a strategy of reinforcement that discourages behaviour by making an unpleasant consequence contingent on its occurrence. a) Positive reinforcement b) Extinction c) Punishment d) Negative reinforcement e) Vicarious modelling Answer: c Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 208) A manager who advises someone’s co-workers to ignore that person’s disruptive behaviours during meetings is using ___. a) positive reinforcement b) negative reinforcement c) punishment d) extinction e) shaping Answer: d Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 209) ___ is a reinforcement strategy that discourages behaviour by making the removal of a Test Bank

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desirable consequence contingent on its occurrence. a) Negative reinforcement b) Vicarious modelling c) Positive reinforcement d) Extinction e) Punishment Answer: d Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 210) Ainsley notices that one of the members of the team, Dana, has been coming late to work and that the other team members have been shielding or covering for Dana. Ainsley counsels the team members to stop protecting Dana and to stop reminding Dana to not be late. This type of reinforcement strategy is known as ___. a) negative reinforcement b) extinction c) intermittent reinforcement d) positive reinforcement e) punishment Answer: b Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Application Difficulty: Medium AACSB: Analytic 211) Which of the following is true about punishment and extinction strategies? a) Both of these strategies weaken or eliminate undesirable behaviours. b) Both of these strategies strengthen desirable behaviour by making a desirable consequence contingent on its occurrence. c) Both of these strategies make the removal of a pleasant consequence contingent on its performance. Test Bank

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d) Both of these strategies strengthen desirable behaviour when it occurs. e) Both of these strategies make an unpleasant consequence contingent on its occurrence. Answer: a Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 212) The creation of a new behaviour by the positive reinforcement of successive approximations to the desired behaviour is called ___. a) operant conditioning b) expectancy development c) classical conditioning d) progression e) shaping Answer: e Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 213) A(n) ___ reinforcement schedule administers a reward each time a desired behaviour occurs. a) conditioned b) continuous c) immediate d) intermittent e) annual Answer: b Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 214) Dana is rewarded with gift vouchers, bonuses, and other perks after the successful completion of every assigned project. This is an example of ___. a) continuous reinforcement b) contingent reinforcement c) intermittent reinforcement d) job enlargement e) job enrichment Answer: a Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Application Difficulty: Medium AACSB: Analytic 215) The concept of intermittent reinforcement is when ___. a) rewards are given as soon as possible following the occurrence of a desirable behaviour b) the focus is on verbal praise and recognition as opposed to money when giving rewards c) rewards are given only if the desired behaviour is exhibited d) rewards are given in small doses at first and increase in magnitude when the desirable behaviour is displayed more permanently e) reward are given periodically Answer: e Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 216) Behaviour acquired under ___ schedule will be more permanent than behaviour acquired under a continuous schedule. Test Bank

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a) a generous b) a timely c) an intermittent d) a symmetric e) an asymmetric Answer: c Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 217) The law of contingent reinforcement advises managers to ___. a) give rewards as soon as possible following the occurrence of a desirable behaviour b) focus on verbal praise and recognition as opposed to money when giving rewards c) give rewards only if the desired behaviour is exhibited d) give rewards in small doses at first and then increase their magnitude when the desirable behaviour is displayed more permanently e) use both punishment and positive reinforcement to gain maximum impact on behaviour Answer: d Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 218) The ___ states that the more immediate the delivery of a reward after the occurrence of a desirable behaviour, the greater the reinforcing value of the reward. a) law of contingent reinforcement b) law of effect c) principle of selective reinforcement d) law of immediate reinforcement e) principle of expectancy Answer: d Test Bank

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Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 219) The ___ states that for a reward to have maximum enhancement value, it must be delivered only if the desired behaviour is exhibited. a) law of effect b) deficit principle c) law of immediate reinforcement d) frustration-regression principle e) law of contingent reinforcement Answer: e Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 220) All of the following are guidelines for the effective use of punishment except a) tell the individual what is being done wrong. b) tell the individual what is being done right. c) punish openly and in public. d) follow the laws of contingent and immediate reinforcement. e) make sure the punishment matches the behaviour. Answer: c Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 221) A manager can ___ an employee by denying the person a valued reward, such as verbal Test Bank

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praise or pay. a) encourage b) punish c) reward d) reinforce e) satisfy Answer: b Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 222) A manager can ___ an employee by administering an unpleasant outcome, such as a verbal reprimand, pay reduction, or demotion. a) encourage b) satisfy c) punish d) reward e) reinforce Answer: c Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 223) Which statement provides the correct definition of job design? a) Job design is the process of redesigning jobs to “fit” a person’s individual goals. b) Job design is the process of creating or defining jobs by assigning specific tasks to individuals and groups. c) Job design provides directions to individuals regarding specific work tasks. d) Job design creates a work structure for bureaucratic organizations. e) Job design identifies key individuals for specific tasks. Test Bank

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Answer: e Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 224) Job design uses the insights of ___ to attain high levels of both job satisfaction and job performance. a) motivation theories b) personality theory c) visionary leaders d) information technology e) adaptive organizations Answer: a Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 225) The job design approach that involves standardizing work procedures so that people work in well-defined and highly specialized tasks is known as ___. a) job compression b) job simplification c) job rotation d) job enlargement e) job enrichment Answer: b Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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226) One way to eliminate problems associated with job simplification by total mechanization of a job is ___. a) job sharing b) job enrichment c) automation d) job enlargement e) shaping Answer: c Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 227) The classic assembly-line job is an example of the job design strategy of ___. a) job compression b) job rotation c) task identity d) job focus e) job simplification Answer: e Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 228) All of the following are potential disadvantages of job simplification except a) tardiness and absenteeism. b) difficulty in training and supervising workers. c) boredom with tasks. d) alienation from work. e) poor performance. Test Bank

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Answer: b Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 229) Charlie works at a car assembling plant. The plant uses a lot of machines to complete most of the work. As a result, Charlie’s work is highly standardized. Charlie needs to check the number and mounting of rubber hoses in a vehicle and replace dysfunctional ones. Which of the following does this signify? a) job rotation b) job simplification c) job loading d) job enlargement e) job enrichment Answer: b Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Application Difficulty: Medium AACSB: Analytic 230) ___ helps in eliminating the problems associated with job simplification by increasing the task variety by periodically shifting workers between different jobs. a) Job enrichment b) Vertical loading c) Job enlargement d) Job rotation e) Automation Answer: d Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 231) The job design strategy that increases task variety by periodically shifting workers among jobs involving different task assignments is called ___. a) job sharing b) job simplification c) job enlargement d) job rotation e) job enrichment Answer: d Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 232) Which of the following is not true of job rotation? a) Workers are shifted among jobs with different task assignments. b) There is a significant improvement in job depth. c) Job rotation can be done regularly or periodically. d) Job rotation can broaden people’s understanding of different jobs. e) Workers experience greater task variety. Answer: b Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 233) Bailey has just been informed that management has approved the request to attend the company’s advanced leadership executive training program . It will require Bailey to spend a year rotating from office to office internationally. Bailey’s responsibilities will change at each office, however Bailey will still basically serve as a quality management analyst. This is an Test Bank

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example of ___. a) job enlargement b) task identity c) job enrichment d) job rotation e) job outcomes Answer: d Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Application Difficulty: Medium AACSB: Analytic 234) ___ is taking place when task variety is increased by combining into one job, two or more tasks that were previously assigned to separate workers. a) Automation b) Job simplification c) Job enlargement d) Job rotation e) Job enrichment Answer: c Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 235) Jean, a supervisor in a tea manufacturing company, observes that the employees are not happy with their jobs because they get bored of doing the same thing every day. Jean tries to deal with this problem by combining two or three tasks that were previously done by different employees and allotting a single person to perform the task. The method employed by Jean to increase the task variety is called job ___. a) sharing b) rotation c) simplification Test Bank

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d) enrichment e) enlargement Answer: e Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Application Difficulty: Medium AACSB: Analytic 236) Expanding jobs vertically by adding planning and monitoring responsibilities is an approach called job ___. a) job enlargement b) task identity c) job enrichment d) job rotation e) job outcomes Answer: c Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 237) Nicky is the marketing manager of an electronics manufacturing company and is very impressed with the work of one of the areas employees, Jesse. As a result, Nicky grants additional authority to Jesse to report directly to the company’s chief marketing officer and board of directors with all marketing strategies. Nicky’s decision to increase Jesse’s responsibilities could be viewed as an initiative of ___. a) job rotation b) job enrichment c) job simplification d) job sharing e) job automation Answer: b Test Bank

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Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Application Difficulty: Medium AACSB: Analytic 238) Job enrichment makes jobs a) horizontally wider. b) vertically bigger only. c) both vertically and horizontally bigger. d) diagonally smaller. e) diagonally bigger. Answer: c Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 239) People who respond most favourably to enriched jobs a) will have stronger higher needs. b) will have higher appropriate job knowledge and skills. c) will be otherwise satisfied with job context. d) all of the above e) none of the above Answer: d Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 240) In promoting job enrichment, Frederick Herzberg says: “If you want people to do a good job, ___.” Test Bank

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a) pay them a lot of money b) give them a beautiful environment c) give them a good job to do d) provide them with a good supervisor e) give them a hygienic workplace Answer: c Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 241) ___ is the practice of building more opportunities for satisfaction into a job by expanding its content to include work planning and evaluating duties that are normally performed by the supervisor. a) Job rotation b) Job enlargement c) Job sharing d) Job expansion e) Job enrichment Answer: e Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 242) Job enrichment differs from other job design alternatives in that it ___. a) is concerned with job content as well as job context b) seeks to expand job depth, not just job scope c) works for groups as well as for individuals d) is endorsed by the unions e) expands the psychological contract Answer: b Test Bank

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Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 243) When a supervisor adds planning and evaluating duties to a worker’s responsibilities, the supervisor has enriched the job by increasing ___. a) job scope b) job depth c) the satisfier quotient d) context factors e) security factors Answer: b Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Application Difficulty: Medium AACSB: Analytic 244) Changes in a job that are designed to increase job depth are sometimes called ___. a) horizontal loading b) vertical loading c) task sharing d) skill amplifiers e) automation Answer: b Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

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245) Suppose there is a team-assembly job in which a designated group of workers has some planning and evaluating responsibilities. This illustrates the job design alternative of ___. a) job enlargement b) job rotation c) job sharing d) job inducements e) job enrichment Answer: e Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Application Difficulty: Medium AACSB: Analytic 246) Job ___ increases job depth by adding work planning and evaluating duties normally performed by the supervisor. a) rotation b) simplification c) enrichment d) sharing e) enlargement Answer: c Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 247) All of the following are ways to improve core job characteristics except a) form natural units of work. b) combine tasks. c) establish client relationships. d) open feedback channels. e) practice horizontal loading. Test Bank

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Answer: e Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 248) According to the diagnostic approach of Hackman and Oldham in the Job Characteristics Model, job satisfaction and performance are influenced by a) inexperience of the workforce, application of Equity Theory, and the environment. b) experienced meaningfulness of the work, experienced responsibility for the outcomes of the work and knowledge of actual results of work activities. c) rate of pay, establishment of a union environment and amount of unpaid leave granted. d) the degree to which acknowledgement is given to an employee for a job well done. e) the frequency at which financial incentives are awarded. Answer: b Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Evaluation Difficulty: Hard AACSB: Analytic 249) The three critical psychological states which influence job satisfaction and performance, according to Hackman and Oldham, are in turn influenced by the presence or absence of five core job characteristics. These core job characteristics are a) skill variety, task identity, task significance, autonomy and feedback from the job itself. b) skill variety, task pressures, autonomous significance, significant pay rates, and feedback from management. c) environmental comfort, supervisor attention, task detail, market share, and feedback from management. d) financial incentives, level of responsibility, social activity, feedback from management, and task detail. e) financial incentives, supervisor attention, social activity, market share, and task detail. Answer: a Learning Objective 16.4: Summarize the motivational implications of job designs and work Test Bank

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schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 250) Jobs high in the five core job characteristics are considered enriched. Enriched jobs should, but may not necessarily, result in a job outcome of a) high internal work motivation. b) high growth satisfaction. c) high general job satisfaction. d) high work effectiveness. e) all of the above Answer: e Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 251) A job that requires a variety of activities to be carried out and involves the use of varied expertise and talent of the employee is high on ___. a) task identity b) skill variety c) autonomy d) task significance e) task analysis Answer: b Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 252) The auto industry has enriched some jobs by allowing a group of workers to build entire Test Bank

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sections of a vehicle rather than just a small part, building it from beginning to end and seeing a visible finished product. This is a job core characteristic called a) skill variety. b) task significance. c) autonomy. d) task identity. e) feedback from the job itself. Answer: d Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Application Difficulty: Medium AACSB: Analytic 253) Which of the following trends is/are creating pressure for the development of alternative work arrangements in the modern workplace? a) the changing content of jobs b) the changing context of jobs c) the needs and interests of a diverse workforce d) all of the above e) none of the above Answer: d Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 254) The most common form of ___ is a “4-40” schedule––that is, 40 hours of work accomplished in four 10-hour days. a) the compressed workweek b) job sharing c) flexible working hours d) job simplification e) telecommuting Test Bank

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Answer: a Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 255) ___ describes any work schedule that gives employees some choice in the pattern of their daily work hours. a) Flexible working hours b) The compressed workweek c) The “noble dream” d) Telecommuting e) Job simplification Answer: a Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 256) A company that requires employees to be at work between 9:30 a.m. and 3:30 p.m. while allowing them to schedule their remaining workday to fit personal needs is using ___. a) the compressed workweek b) job sharing c) flexible working hours d) contingency workers e) telecommuting Answer: c Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Application Difficulty: Medium Test Bank

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AACSB: Analytic 257) Flexible working hours usually result in all of the following except a) greater autonomy for individuals in work schedules. b) more absenteeism and tardiness. c) a positive attitude toward the organization. d) higher job performance. e) greater opportunity to take care of personal affairs. Answer: b Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 258) A job that provides a person the complete authority to schedule the work and choose the course of action is high in ___. a) task significance b) task identity c) skill variety d) autonomy e) task analysis Answer: d Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 259) A work schedule that allows a full-time job to be completed in less than the standard five days of 8-hour shifts is referred to as ___. a) seasonal employment b) temp job c) compressed workweek Test Bank

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d) flextime e) weekend work schedule Answer: c Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 260) Which of the following provides flexibility to employees by splitting a full-time job between two or more people? a) flextime b) telecommuting c) office sharing d) compressed workweek e) job sharing Answer: e Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 261) The potential side effects of job sharing include which of the following? a) Employers can retain trained and loyal workers when forced to temporarily economize by reducing labour costs. b) Employees whose seniority would protect them from layoffs have the disadvantage of lost earnings. c) Employees who otherwise would be laid off will have continued work ¾ though with reduced earnings. d) b and c e) a, b, and c Answer: e Learning Objective 16.4: Summarize the motivational implications of job designs and work Test Bank

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schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 262) ___ is an arrangement that allows at least a portion of scheduled work hours to be completed outside the physical office location. a) Compressed workweek b) Automation c) Job sharing d) Telecommuting e) Contingency Answer: d Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 263) Potential advantages of telecommuting include all of the following except a) freedom from the constraints of commuting and fixed hours. b) increased productivity. c) more distractions. d) being one’s own boss. e) having more personal time. Answer: c Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 264) Potential disadvantages of telecommuting include all of the following except Test Bank

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a) working too little. b) less personal time. c) difficulty in separating work and personal life. d) feelings of isolation. e) loss of visibility for promotion. Answer: a Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 265) Individuals who are employed on a part-time and temporary basis to supplement an organizations regular staff are called ___. a) overtime workers b) permatemps c) flextime workers d) virtual workers e) contingency workers Answer: e Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 266) ___ work is done on any schedule that is less than the standard 40-hour workweek, and that does not qualify the individual as a full-time employee. a) Flextime b) Telecommuting c) Part-time d) Compressed e) Shared Answer: c Test Bank

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Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 267) Andie, a final year communications student, has been working for an advertising firm for a few months because the firm needed some more people to work on a project till November. This is an example of ___. a) telecommuting b) job enrichment c) operant conditioning d) intermittent reinforcement e) contingency work Answer: e Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Application Difficulty: Medium AACSB: Analytic Question type: Essay 268) Describe the basic features of Maslow’s hierarchy of needs theory, Alderfer’s ERG theory, Herzberg’s two-factor theory, and McClelland’s acquired needs theory? What guidance does each theory provide to managers? Answer: Maslow’s hierarchy of needs theory specifies five levels of human needs that are arranged in a hierarchy of importance. In the hierarchy, lower-order needs include physiological, safety, and social concerns, whereas higher-order needs include esteem and self-actualization concerns. Additional features of the need hierarchy are the deficit principle and the progression principle. The deficit principle holds that a satisfied need is not a motivator of behaviour; people act to satisfy needs for which a deficit exists. The progression principle holds that a need at one level doesn’t become activated until the next lower-level need is satisfied. People are expected to advance step by step up the hierarchy. Within this framework, self-actualization needs become stronger when they are satisfied. Therefore, a person should continue to be motivated by opportunities for self-fulfillment as long as the other need levels remain satisfied. Alderfer’s ERG theory is an extension of Maslow’s theory. Instead of five need levels, Alderfer Test Bank

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proposed three need levels, the first letters of which are identified by the name of the theory itself –– ERG. Existence needs are desires for physiological and material well-being. Relatedness needs are desires for satisfying interpersonal relationships. Growth needs are desires for continued psychological growth and development. ERG theory does not assume that lower-level needs must be satisfied before higher-level needs become activated. ERG theory includes a unique frustration-regression principle whereby an already satisfied lower-level need becomes reactivated when a higher-level need is frustrated. Mangers should help to remove blocks to need satisfaction. Two-factor theory argues that different factors are sources of job dissatisfaction and job satisfaction. The job dissatisfaction factors are called hygiene factors and the job satisfaction factors are labelled satisfier factors. Hygiene factors are elements of the job context, including the following: working conditions, interpersonal relations, organizational policies and administration, technical quality of supervision, and base compensation. Improvements in hygiene factors can prevent and/or eliminate job dissatisfaction; they will not improve job satisfaction. Satisfier factors are elements of the job content that include the following: sense of achievement, feelings of recognition, sense of responsibility, advancement opportunities, and feelings of personal growth. Improvements in satisfier factors increase job satisfaction; they will not prevent job dissatisfaction. According to two-factor theory, managers should: (a) recognize that all jobs have two important aspects ¾ what people do in terms of job tasks (i.e., job content) and the setting in which they do it (i.e., job context); (b) always correct poor context to eliminate actual or potential sources of job dissatisfaction; and (c) be sure to build satisfier factors into job content to maximize opportunities for job satisfaction. Acquired needs theory proposes that people acquire or develop needs through their life experiences. These needs relate to achievement, power, and affiliation. The need for achievement is the desire to do something better or more efficiently, to solve problems, or to master complex tasks. The need for power is the desire to control other persons, to influence their behaviour, or to be responsible for other people. The need for affiliation is the desire to establish and maintain friendly and warm relations with other persons. Managers should create work environments that are responsive to the varying need strengths of people. Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Synthesis Difficulty: Hard AACSB: Analytic 269) How does the Alderfer’s ERG theory differ from Maslow’s hierarchy of needs theory? Answer: Maslow’s theory classifies human needs as lower-order needs and higher-order needs. It states that a satisfied need is not a motivator of behaviour. It states that five needs exist in a hierarchy and that a need does not become activated until the next-lower-level need is already satisfied. People are expected to advance step by step up the hierarchy in their attempt to satisfy the lowest-level need that is currently unfulfilled. In contrast, Alderfer’s ERG theory groups human needs into three categories. This theory suggests that any or all needs can influence individual behaviour at a given time. ERG theory Test Bank

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does not assume that certain needs must be satisfied before other needs become activated. Alderfer also believes that satisfied needs do not lose their motivational impact and that they can become reactivated and influence behaviour when a higher-level need cannot be satisfied. Learning Objective 16.1: Explain how individual needs motivate behaviour. Section Reference 16.1: Individual Needs and Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Reflective Thinking 270) Discuss equity theory and how it relates to managing for motivation. Answer: Equity theory asserts that when people believe they have been treated unfairly in comparison to others, they try to eliminate the discomfort and restore a perceived sense of equity to the situation. Perceived inequity occurs whenever a person feels that the rewards received for his/her work efforts are unfair given the rewards others appear to be getting for their work efforts. Perceived equity occurs whenever a person perceives that his/her personal rewards/inputs ratio is equivalent to the rewards/inputs ratio of a comparison other. In using equity theory to guide managerial efforts to influence work motivation, managers should recognize that people who feel underpaid may experience a sense of anger and people who feel overpaid may experience a sense of guilt. Managers should also understand that perceptions of rewards in a social context, not the absolute value of the rewards, determine motivational outcomes. Finally, managers should ensure that any negative consequences of the equity comparison are avoided, or at least minimized, when rewards are allocated. Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 271) Describe the key concepts in the expectancy theory of motivation. How do these concepts explain the level of motivation that a person may display at work? Answer: According to expectancy theory, work motivation depends on the relationships among the following three factors: • Expectancy (also called the effort-performance expectancy) is a person’s belief that working hard will result in a desired level of task performance being achieved. • Instrumentality (also called the performance-outcome expectancy) is a person’s belief that successful task performance will be followed by rewards and other potential outcomes. • Valence is the value a person assigns to possible rewards and other work-related outcomes. The relationship between motivation and the three factors –– expectancy, instrumentality, and valence –– can be expressed as an equation: Test Bank

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M=ExIxV where M = motivation, E = expectancy, I = instrumentality, and V = valence. This multiplier effect implies that for motivation to be high, expectancy, instrumentality, and valence must be high, and valence must be positive. Conversely, if expectancy is low (the person feels he or she can’t perform), instrumentality is low (the person is not confident performance will be rewarded), and/or valence is low or negative (the reward is not valued), motivation will be low. Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 272) Discuss goal-setting theory and how it relates to managing for motivation. Answer: The basic premise of goal-setting theory is that properly set and well managed task goals can be highly motivating. Task goals provide direction to people in their work, clarify performance expectations, establish a frame of reference for feedback, and provide a foundation for behavioural self-management. The following list identifies the key issues and principles in the goal-setting process: • Set specific goals: Specific goals lead to higher performance than more generally stated ones, such as “Do your best.” • Set challenging goals: When they are viewed as realistic and attainable, more difficult goals lead to higher performance than do easy goals. • Build goal acceptance and commitment: People work harder for goals that they accept and believe in; they resist goals forced on them. • Clarify goal priorities: Make sure that expectations are clear as to which goals should be accomplished first, and why. • Provide feedback on goal accomplishment: Make sure that people know how well they are doing with respect to goal accomplishment. • Reward goal accomplishment: Don’t let positive accomplishments go unnoticed; reward people for doing what they set out to do. Participation is a major factor in unlocking the motivational potential of goal setting. When goals must be assigned, workers will respond more positively if supervisors are trusted and the workers believe they will be adequately supported in their efforts to achieve the goals. Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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273) Explain the four major ways in which self-efficacy can be enhanced, according to the work of Bandura. Answer: Self-efficacy may be enhanced by encouraging people to (1) practice enactive mastery, the gaining of confidence through positive experience. This is accomplished by working at the task repetitively, practice, thereby becoming more practiced at doing the task and building one’s confidence in doing it; (2) practice vicarious modelling by watching a skilled person doing a task thereby building our confidence that we also can do it; (3) listen to verbal persuasion, the verbal encouragement that one can perform the task. This praise is often highly stimulating and motivating; and (4) get “psyched up” or personally stimulated and energized to do a task well. Learning Objective 16.2: Contrast how expectancy, equity, goal-setting, and self-efficacy motivate behaviour. Section Reference 16.2: Process Theories of Motivation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 274) How can managers effectively use positive reinforcement to increase the frequency of desirable behaviour? Answer: Positive reinforcement can be effective when managers: • clearly identify desired work behaviours. • maintain a diverse inventory of rewards. • inform everyone what must be done to get rewards. • recognize individual differences when allocating rewards. • follow the laws of immediate and contingent reinforcement Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 275) Provide a general overview of the reinforcement theory, and identify and define the four basic operant conditioning strategies. Answer: Rather than relying on cognitive explanations of behaviour, reinforcement theory focuses on the impact of external environmental consequences on behaviour. The impact of the external environment is succinctly captured in Thorndike’s law of effect, which states: “Behaviour that results in a pleasant outcome is likely to be repeated; behaviour that results in an unpleasant outcome is not likely to be repeated.” Operant conditioning is the process of applying Test Bank

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the law of effect to control behaviour by manipulating its consequences. The operant conditioning strategies and their effects are as follows: • Positive reinforcement strengthens or increases the frequency of a behaviour through the contingent presentation of a pleasant consequence. • Negative reinforcement strengthens or increases the frequency of a behaviour through the contingent removal of an unpleasant consequence. • Punishment eliminates or decreases the frequency of a behaviour through the contingent presentation of an unpleasant consequence. • Extinction eliminates or decreases the frequency of a behaviour through the contingent removal of a pleasant consequence. Learning Objective 16.3: Discuss the motivational implications of reinforcement principles and strategies. Section Reference 16.3: Reinforcement Theory Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 276) List the advantages and disadvantages of telecommuting? Answer: Solution: The advantages of telecommuting are: • Increased productivity • Fewer distractions • Less time spent on commuting to and from work • Freedom to schedule work timings The disadvantages of telecommuting are: • Spending more time on work • Difficulty in separating work and personal life • Devoting less time for family Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 277) Describe the core characteristics model of job enrichment. Explain how this model can provide guidance to practicing managers. Answer: According to the core characteristics model of job enrichment described in the textbook, an enriched job will be high on the following core job characteristics: Test Bank

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•

Skill variety¾the degree to which a job requires a variety of different activities to carry out the work and involves the use of a number of different skills and talents of the individual. • Task identity¾the degree to which the job requires the completion of a “whole” and identifiable piece of work; that is, one that involves doing a job from beginning to end with a visible outcome. • Task significance¾the degree to which the job has a substantial impact on the lives or work of other people elsewhere in the organization or in the external environment. • Autonomy¾the degree to which the job gives the individual substantial freedom, independence, and discretion in scheduling the work and in determining the procedures to be used in carrying it out. • Feedback from the job itself¾the degree to which carrying out the work activities required by the job results in the individual obtaining direct and clear information on the results of his or her performance. The core job characteristics directly impact three critical psychological states. Skill variety, task identity, and task significance affect experienced meaningfulness of work; autonomy influences experienced responsibility for the outcomes of the work; and feedback affects knowledge of actual results of work activities. The critical psychological states, in turn, influence the following job outcomes: high internal work motivation, high growth satisfaction, high general job satisfaction, and high work effectiveness. The core job characteristics will not affect everyone in the same way. Employees who have high growth-need strength and the requisite knowledge and skills, and are satisfied with the work context will respond more favourably to enriched jobs. For those employees who will likely respond favourably to job enrichment, managers can improve core job characteristics. Managers can do this in the following ways: • Form natural units of work ¾ make sure that the tasks people perform are logically related to one another and provide a clear and meaningful task identity. • Combine tasks ¾ expand job responsibilities by pulling together into one larger job a number of smaller tasks previously done by others. • Establish client relationships ¾ put people in contact with others who, as clients inside and/or outside the organization, use the results of their work. • Open feedback channels ¾ provide opportunities for people to receive performance feedback as they work and to learn how performance changes over time. • Practice vertical loading ¾ give people more control over their work by increasing their authority for planning and controlling activities previously done by supervisors. Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Synthesis Difficulty: Hard AACSB: Analytic 278) Describe each of the major alternative work arrangements. What are the advantages and/or disadvantages to the individual and/or organization in using these options? Answer: The five major categories of alternative work arrangements are the following: Test Bank

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compressed workweek, flexible working hours, job sharing, telecommuting, and part-time work. Each of these categories, along with their respective advantages and disadvantages, are described below. • A compressed workweek is any work schedule that allows a full-time job to be completed in less than the standard five days of eight-hour shifts. The benefits of the compressed workweek for the individual are more leisure time and lower commuting costs. The benefits for the organization are lower absenteeism and potentially improved performance. The potential disadvantages of the compressed workweek for the individual are increased fatigue and family adjustment problems. The potential disadvantages for the organization include increased scheduling problems, possible customer complaints, and possible union opposition. • Flexible working hours describe any work schedule that gives employees some choice in the pattern of their daily work hours. The potential benefits of flexible working hours include giving people greater autonomy in work scheduling while ensuring that they maintain work responsibilities, thereby enabling organizations to attract and retain employees who have special non-work responsibilities. Flexible working hours also can boost worker morale. • Job sharing involves a work schedule whereby one full-time job is split between two or more persons. Job sharing can benefit organizations by enabling them to employ talented people who would otherwise be unable to work. • Telecommuting is a work arrangement that allows at least a portion of scheduled work hours to be completed outside of the office. The potential individual advantages of telecommuting include being one’s own boss and having more personal time. The potential disadvantages of telecommuting for individuals are working too much, difficulty in separating work and personal life, feelings of isolation, and loss of visibility for promotion. A potential disadvantage for the organization is that managers may experience difficulties in supervising work-at-home employees from a distance. Part-time work is work done on any schedule less than the standard 40-hour workweek and does not qualify the individual as a full-time employee. Increasingly, employers are relying on parttime or contingency workers to supplement the full-time workforce, often on a long-term basis. Because contingency workers can be easily hired, contracted, and terminated in response to changing needs, many employers like the flexibility they offer in controlling labour costs and dealing with cyclical labour demand. Organizational disadvantages in contingency workers pertain to their potential lack of commitment and their potential lower productivity. For the individual, the disadvantages are a lower pay rate and the lack of important benefits such as health care, life insurance, and pension plans. Learning Objective 16.4: Summarize the motivational implications of job designs and work schedules. Section Reference 16.4: Motivation and Job Design Bloom’s: Synthesis Difficulty: Hard AACSB: Reflective Thinking

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CHAPTER 17 TEAMS AND TEAMWORK Question type: True/False 1) A team is a small group of people with complementary skills, who work together to accomplish shared goals while holding themselves mutually accountable for performance results. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 2) Teams are rich in performance potential even though they are complex in the way they work and are expected to perform at higher levels than individuals. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 3) The supervisor, facilitator, participant, and coach are four important team and teamwork roles for managers. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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4) An effective team leader must be prepared to assume four roles within a team, one of which is team coach. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 5) An effective team leader must be prepared to assume four roles within a team, one of which is team negotiator. Answer: False Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 6) The fundamental difference between a group and a team is that group members work interdependently while team members work dependently of each other. Answer: False Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 7) Synergy is the pooling together of individual talents and efforts to create extraordinary results through collective action. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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8) Without synergy a team cannot be fully successful in its efforts. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 9) More resources for problem solving, greater commitments to tasks, better control and work discipline, and more individual need satisfaction are just several benefits of teams. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 10) Being a member of a team rarely influences individual attitudes and behaviours. Answer: False Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 11) Personality conflicts and poor readiness to work, but not differences in work styles or task ambiguity, are commonly encountered problems in teams. Answer: False Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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12) Social loafing refers to the presence of “free riders” who slack off because responsibility is diffused in teams and others are present to do the work. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 13) People arriving late and leaving early or taking things too seriously are some of the key problems typically associated with meetings. Answer: False Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 14) Nothing happening when the meeting is over and no one putting decisions into action are key problems typically associated with meetings. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 15) Some key problems typically associated with meetings include the discussion lacks candour; people are unwilling to tell the truth; and the right information isn’t available, so decisions get postponed. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 16) Meetings can and should be places where information is shared, decisions get made, and people gain understanding of each other. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 17) Formal groups emerge from relationships and shared interests among the members. Answer: False Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 18) Informal groups are always detrimental to the growth of an organization as they are mostly involved in spreading rumors. Answer: False Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 19) Members of informal groups can satisfy needs that are otherwise unmet in their formal work assignments. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Test Bank

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Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 20) If we consider that organizations are interlocking networks of groups, then managers and leaders serve as “linking pins” because each manager acts as a leader in one group and as a team member in the. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 21) Informal groups that emerge for a wide variety of personal reasons (including shared non-work interests) are called friendship groups. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 22) Informal groups that emerge because members basically help one another do their jobs are called support groups. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 23) The globalized business environment, along with new work arrangements such as telecommuting and working from home, teams have become less important. Test Bank

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Answer: False Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 24) The trend toward greater empowerment in organizations is associated with new developments in the use of face-to-face interaction techniques. Answer: True Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 25) Two important management skills are knowing when a team is the best choice for a task and knowing how to work with and manage a team to accomplish a task. Answer: True Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 26) Project teams or tasks forces bring people together on a temporary basis from various parts of an organization to work on common problems. Answer: True Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 27) Committees, project teams, task forces, and cross-functional teams are used relatively Test Bank

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infrequently in the modern workplace, whereas employee involvement teams enjoy extensive, widespread usage in the modern workplace. Answer: False Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 28) Cross-functional teams are indispensable to organizations because they eliminate the barriers that separate departments and people. Answer: True Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 29) Cross-functional teams are expected to focus purely on functional concerns and demands. Answer: False Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 30) The functional chimneys problem is more prominent in the case of cross-functional teams. Answer: False Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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31) An autonomous work group is a temporary group created to solve a specific problem. Answer: False Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 32) Members of a self-managing team are held individually accountable for performance results. Answer: False Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 33) Teams of workers whose jobs have been redesigned to create a high degree of task interdependence and have been given decision-making authority are referred to as selfmanaging work teams. Answer: True Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 34) Self-management responsibilities include planning and scheduling work, training members, distributing tasks, meeting performance goals, ensuring quality, and solving day-to-day problems. Answer: True Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 35) Members of self-managing teams do not evaluate one another’s performance contributions, nor do they hire or fire team members. Answer: False Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 36) Advancements in information technology have resulted in virtual teams that provide a problem-free approach to dealing with issues among team members at geographically dispersed locations. Answer: False Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 37) In the context of virtual teams, selecting team members high in initiative often leads to a lack of coordination among the members. Answer: False Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 38) Difficulty in establishing good working relationships may occur in virtual teams due to the depersonalization that results from the absence of face-to-face interaction. Answer: True Test Bank

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Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 39) Team building is a sequence of planned activities used to gather and analyze data on the functioning of a team and to implement constructive changes to increase the team’s operating effectiveness. Answer: True Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 40) To create an effective team, managers must institute a multi-step process that involves a clear and elevated goal, task-driven structure, competent and committed members, a collaborative climate, high standards of excellence, external support and recognition, and strong principled leadership. Answer: True Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 41) For managers to create effective teams, they must collect data on team functioning by conducting structured or unstructured interviews, administering questionnaires, and having team meetings. Answer: True Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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42) For the diagnostic process to be effective in team building, careful and collaborative assessment of the team’s inputs, processes, and results must be made. Answer: True Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 43) Creating a careful and collaborative assessment of your team’s potential performance is a way to decide who to keep and who to remove from your team. Answer: True Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 44) Taylor was tasked with creating a team-building exercise for the department staff. Taylor decided that a Competitive Furniture-Building Exercise where each team was given the same amount of materials and time to build a small table would help to create the high-performance team needed to make the department the best in the company. Answer: True Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Application Difficulty: Medium AACSB: Analytic 45) An effective team is defined as one that achieves and maintains high levels of task performance, achieves and maintains member satisfaction, and remains viable for the future. Answer: True Test Bank

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Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 46) In considering the results that any team must achieve, performance means that a work group or team is expected to transform resource inputs into product outputs that have some value for the organization. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 47) With respect to member satisfaction, members should take pleasure from the team’s performance accomplishments rather than on their personal contribution. Answer: False Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 48) The available resources and organizational setting can affect how fully team members can use and pool their talents to accomplish team tasks. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 49) Inputs to group process include the organizational setting, the nature of tasks, team size, and membership characteristics. Test Bank

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Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 50) Membership characteristics of teams include members who have the right skills mix and values and personalities that are compatible. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 51) Teams composed of “all-star” members who perform at high levels individually always make the best teams. Answer: False Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 52) Often less-skilled individuals mold into high-performing teams because they apply their skills and motivation to the team effort and want team success more than individual success. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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53) High-performance teams can sometimes be distinguished from other teams by the way members work with and interact with one another to achieve common goals. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 54) Team diversity can present significant group process challenges because of different values, personalities, experiences, demographics, and cultures among the members. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 55) The more heterogeneous the team, the easier it is to manage team member relationships. Answer: False Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 56) The organizational setting is an input factor to group process that is concerned with providing support in the form of information, material resources, technology, spatial arrangements, organization structures, and rewards. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 57) The threshold point at which team size becomes a significant input factor in effective group process is ten team members Answer: False Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 58) “No team should be larger than three pizzas could feed”. Answer: False Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 59) The phases or stages in the life cycle of any team are forming, storming, norming, performing, and adjourning. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 60) In the life cycle of a team, the initial task orientation and interpersonal testing of individual members occurs in the forming stage. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 61) It is in the storming stage that people ideally begin to identify with other members and with the team itself. Answer: False Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 62) The performing stage is part of the “critical zone” of team development, where successes create long-term gains while failures create long-lasting problems. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 63) A team that has achieved total integration at the performing stage of team development, will score high on the criteria of trust among members, feedback mechanisms, open communications, approach to decisions, and leadership sharing. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 64) The storming stage of the team life cycle is characterized by a period of high emotionality, the identification of team boundaries and team roles, and the ability to handle membership disagreements in creative ways. Test Bank

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Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 65) In the adjourning stage of the team life cycle, the team should ideally disband with the sense that important goals have been accomplished. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 66) Persons in a highly cohesive team are less likely to conform to the norms. Answer: False Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 67) By reinforcing the desired behaviours with rewards, leaders can help their teams in building positive norms. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 68) A strong conformity to norms by members has a beneficial effect on team performance. Test Bank

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Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 69) Removing a member from a team is the only way to impose sanctions on a member who has violated the norms of the team. Answer: False Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 70) A performance norm defines the level of work effort and performance that team members are expected to contribute. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 71) In terms of team productivity, the best-case scenario of a work team’s performance norms and cohesiveness occurs with positive performance norms and high team cohesiveness. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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72) From a manager’s perspective, the worst-case scenario of a work team’s performance norms and cohesiveness occurs with indeterminate performance norms and indeterminate team cohesiveness. Answer: False Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 73) Increasing membership homogeneity in a team increases team cohesiveness. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 74) In order to increase cohesion, a manager can create agreement on team goals, increase interactions among members, reward team rather than individual results, or provide physical isolation from other teams. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 75) It is the sole responsibility of a team leader to minimize the occurrence of disruptive activities in a team. Answer: False Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 76) Efforts to support the emotional life of the team as an ongoing social system are leadership activities. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 77) Distributed leadership in teams makes every team member continually responsible for both recognizing when task or maintenance activities are needed and taking actions to provide them. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 78) The responsibility for task and maintenance activities belongs to the manager alone. Answer: False Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 79) The “teamwork effect” may be described in general as a familiarity with working with each other on a team. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Test Bank

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Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 80) A “must have” team skill is being able to encourage and motivate others. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 81) Accepting suggestions, listening, the power of persuasion and conflict resolution are “must have” team skills. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 82) Communicating information and ideas is a “must have” team skill. Answer: True Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 83) It is not necessary to avoid disruptive acts and words as a team skill. Answer: False Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Test Bank

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Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 84) In your own career, it will never be necessary to work in or lead a team. Answer: False Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 85) A centralized communication network allows all members to communicate directly with each other. Answer: False Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 86) In a centralized communication network, communication flows only between individual members and a hub or central point and works best when the group is assigned simple tasks. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 87) A restricted communication network seems to work best on simple tasks that require little creativity, information processing, and problem solving. Answer: False Test Bank

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Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 88) A decentralized communication network seems to work best on complex tasks that require intense interaction, information sharing and high interdependency. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 89) Group process refers to how the members of a team actually work together as they transform inputs into outputs. Answer: True Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 90) Since group process is essential to team effectiveness, it guarantees team success. Answer: False Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 91) Group decision making brings more information, knowledge, and expertise to bear on problems, and expands the number of alternatives that are considered. Answer: True Test Bank

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Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 92) Decision making can be complicated by the different ways in which teams can go about doing making decisions. Answer: True Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 93) When formal voting or polling takes place, with the objective of determining which idea is favoured by more than half the team members, the team is making a decision by majority rule. Answer: True Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 94) The “decision by majority” rule ensures that no coalitions are formed. Answer: False Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 95) Decision by lack of response occurs when one idea after another is suggested without discussing it, and then the team finally accepts an idea without any critical evaluation. Test Bank

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Answer: True Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 96) Decision by minority rule is being used when a leader, manager, or committee head makes a decision for the team. Answer: False Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 97) Decision by authority rule is being used when two or three people can dominate the majority or “railroad” the majority into agreeing to a solution. Answer: False Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 98) Teams will make decisions by consensus when they argue, engage in reasonable discussion and debate, respect one another, and yet make a decision that does not require unanimity and still be supported by all team members. Answer: True Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

Test Bank

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99) An important team leadership skill is the ability to help a team choose the best decision-making method for the task at hand. Answer: True Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 100) To be effective in deciding whether to use an individual, a consultative, or a group decision method for a particular situation, team leaders must know how to solve problems better than any of the team members. Answer: False Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 101) Group decision making improves members’ understanding and acceptance of the final decision and diminishes their commitment to follow through on implementing the decision. Answer: False Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 102) Highly cohesive teams have a tendency to lose their critical evaluative capabilities. Answer: True Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Comprehension Difficulty: Medium Test Bank

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AACSB: Analytic 103) Groupthink is likely to occur when members of a group refuse to look realistically at other groups. Answer: True Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 104) In a situation prone to interpersonal conflicts, brainstorming works best in preventing groupthink. Answer: False Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Comprehension Difficulty: Easy AACSB: Communication 105) Symptoms of groupthink include rationalizing unpleasant and disconfirming data; stereotyping competitors as weak, evil, and/or stupid; protecting members from hearing disturbing ideas or outside viewpoints; and applying direct pressure to deviants to conform to group wishes. Answer: True Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 106) Managers can avoid groupthink if they assign the role of critical evaluator to each team member to allow free discussion. Answer: True Test Bank

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Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 107) Managers can avoid groupthink if they have team members discuss issues with outsiders and report back on their reactions, encourage a sharing of viewpoints, or invite outside experts to observe group activities and react to group process. Answer: True Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 108) The guidelines for brainstorming include ruling out all criticism, welcoming “freewheeling,” getting a large quantity of ideas, and encouraging people to build on one another’s ideas. Answer: True Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 109) The nominal group technique of decision making uses a highly structured meeting agenda to allow everyone to contribute ideas without the interference of others’ evaluative comments. Answer: True Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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110) The basic steps for running a nominal group session are: asking participants to work alone in generating ideas, reading ideas aloud in a round-robin fashion, recording all ideas as presented, and using a written voting procedure to rank order alternatives. Answer: True Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic Question type: Multiple Choice 111) The process of people actively working together to accomplish common goals is referred to as ___. a) teamwork b) team diversification c) free-riding d) team building e) groupthink Answer: a Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 112) Which of the following is not one of the four roles team and teamwork manager roles? a) Supervisor b) Follower c) Facilitator d) Participant e) Coach Answer: b Learning Objective 17.1: Explain the ways teams contribute to organizations. Test Bank

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Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 113) In their role as a coach or team developer, a manager is primarily involved in a) serving as the peer leader and networking hub for a special task force. b) serving as a helpful contributing member of a project team. c) looking out for “free-riding” in groups and preventing its occurrence. d) serving as a team’s advisor on ways to improve processes and performance. e) working together with the team and solving problems through computer-based interactions. Answer: d Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 114) When the whole is greater than the sum of the individual parts, a special benefit of teamwork occurs. This special benefit is known as ___. a) a quality circle b) group dynamics c) team building d) cohesiveness e) synergy Answer: e Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 115) Pat is the marketing head of AdSure, a renowned digital marketing company known for its innovative marketing strategies. When being quizzed on the definition of a “perfect marketer,” Pat responded with reference to the team members and stated that Riley’s out of the box thinking, Sam’s communication abilities, Avery’s innovative designs, and Test Bank

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Charlie’s technical prowess would reflect the qualities of a “perfect marketer.” Which of the following would best describe Pat’s definition of a “perfect marketer”? a) social loafing b) cohesiveness c) synergy d) representativeness bias e) bandwagon effect Answer: c Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Application Difficulty: Medium AACSB: Analytic 116) All of the following are examples of the benefits of teams except a) more resources for problem solving. b) improved creativity. c) higher motivation. d) better control and work discipline. e) complete elimination of personality conflicts. Answer: e Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 117) ___ refers to the presence of “free riders” who slack off because responsibility is diffused in teams and others are present to do the work. a) Social imperfection b) Poor work ethics c) Anti-synergistic d) Synergy e) Social loafing Answer: e Test Bank

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Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 118) Morgan works in a software services company and is currently a member of a large team working on a project for a new client. Morgan generally tries to avoid taking responsibilities and works as little as possible because there are other team members who will complete the work. Which of the following terms best represents Morgan’s behaviour? a) social loafing b) self-concordance c) fundamental attribution error d) representativeness bias e) bandwagon effect Answer: a Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Application Difficulty: Medium AACSB: Analytic 119) Which one of following is not a problem that is commonly encountered in teams? a) personality conflicts b) a strong belief in group work c) differences in work styles d) task ambiguity e) poor readiness to work Answer: b Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 120) Google Canada’s workforce has grown from thirty “Googlers” to over 400. Steve Test Bank

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Woods, the company’s director of engineering in Canada has stated, “We are a very empowering organization, with a very flat hierarchical model where small teams work on products and the teams make their decisions.” Google Canada is enjoying which benefit from working as team? a) fewer resources for problem solving b) less commitment to tasks c) more member motivation d) lots of people to spread the work around e) a little creativity and innovation Answer: c Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Application Difficulty: Medium AACSB: Analytic 121) Which of the following is a drawback closely associated with teamwork? a) functional chimneys problem b) glass ceiling effect c) social loafing d) ecological fallacy e) absence of a sense of security Answer: c Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 122) The problems typically associated with meetings include all of the following except a) people arrive late, leave early, and don’t take things seriously. b) the meeting is too short. c) people don’t stay on topic. d) nothing happens when the meeting is over; no one puts decisions into action. e) things never get better; the same mistakes are made meeting after meeting. Answer: b Test Bank

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Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 123) Two types of groups are especially important to managers in organizations. These groups are ___. a) formal and developmental b) informal and formal c) formal and cohesive d) cohesive and emergent e) psychological and social Answer: b Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 124) The market research department, audit unit, and customer service team of a company are examples of a(n) ___ group. a) formal b) informal c) support d) grassroots e) interest Answer: a Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 125) Interest groups, friendship groups, and support groups are examples of ___. Test Bank

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a) formal teams b) functional teams c) cross-functional groups d) self-managing groups e) informal groups Answer: e Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 126) Which of the following is true of informal groups? a) Managers are the key “linking pins” among these groups. b) They emerge from natural or spontaneous relationships among people. c) They are convened for a specific purpose and disband when their task is completed. d) They are officially recognized and supported by the organization. e) Their members have the tendency to avoid responsibility by “free-riding” in groups. Answer: b Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 127) ___ are part of the formal organizational structure and are created to fulfill a variety of essential operations. a) Formal groups b) Cohesive groups c) Emergent groups d) Psychological groups e) Social groups Answer: a Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 128) ___ are ones that emerge within organizations from “spontaneous” relationships among people rather than being officially created by the organization to serve an essential purpose. a) Informal groups b) Psychological groups c) Aggregate groups d) Emergent groups e) Ad hoc groups Answer: a Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 129) Informal groups that emerge for a wide variety of personal reasons (including shared non-work interests) are called ___. a) interest groups b) friendship groups c) support groups d) enabling groups e) autonomous groups Answer: b Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 130) According to the perspective that organizations are interlocking networks of groups, managers and leaders serve as ___. a) “linking pins” because each manager acts as a leader in one group and as a team member in the next higher-level one. Test Bank

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b) “king pins” because everyone reports to them. c) “nerve centers” because they control the communication channels. d) “gatekeepers” because work flows upward and downward through their offices. e) “group processors” because they make the whole team function properly. Answer: a Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 131) The trend toward ___ in organizations is associated with new developments in the use of teams. a) more use of information technology b) greater empowerment c) downsizing and rightsizing d) greater outsourcing e) more ethical behaviour Answer: b Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 132) Which of the following best describes a committee? a) A committee is convened for a specific purpose and disbands when its task is completed. b) It is unofficial and emerges from relationships and shared interests among members. c) A committee designated to work on a special task on a continuing basis. d) It is a team whose members work and solve problems through computer-based interactions. e) A committee is a team whose members have the tendency to avoid responsibility by “free-riding” in groups. Answer: c Learning Objective 17.2: Describe current trends in the use of teams in organizations. Test Bank

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Section Reference 17.2: Trends in the Use of Teams Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 133) Which of the following is true of committees? a) Committees are led by a designated head or chairperson, who is held accountable for performance results. b) They emerge from natural or spontaneous relationships among people. c) Committees are formed to engage group members in an open, spontaneous discussion of problems. d) They bring people together to work on common problems, but on a temporary basis. e) Committees primarily exist as support groups in which the members basically help one another do their jobs. Answer: a Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 134) ___ or ___ bring together people from various parts of an organization to work on common problems, but on a temporary basis. a) Project teams; cross-functional teams. b) Committees; tasks forces. c) Project teams; tasks forces. d) Cross-functional teams; virtual forces. e) Employee involvement teams; committee. Answer: c Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 135) Management at Orlando Distributors Ltd. is concerned about the recent decline in sales of one of its best-selling products. The company has decided to put together a group Test Bank

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of people in charge of analyzing competitive products and determining new features that should be added to their products. This would be a permanent group with all of the members coming from the marketing department. The group members will perform these new tasks in addition to their current responsibilities. Which of the following terms would best describe the newly formed group? a) project team b) task force c) cross-functional team d) committee e) functional chimney Answer: d Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Application Difficulty: Medium AACSB: Analytic 136) A(n) ______ is a temporary group created to solve a specific problem. a) ask force b) functional group c) quality control circle d) autonomous work group e) command group Answer: a Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 137) A project team or task force is a) unofficial and emerges from relationships and shared interests among members. b) designated to work on a special task on a continuing basis. c) a team in which members solve problems through computer-based interactions. d) a team in which members have the tendency of “free-riding” in groups. e) convened for a specific purpose and disbands when its task is completed. Test Bank

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Answer: e Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 138) At the headquarters of Meltdown Inc., a temporary team consisting of members from its technical and marketing departments is put together to develop a promotional plan for its new robot, “Apex.” This team is given a time limit of fifteen days to complete the task. This team is an example of a(n) ___. a) committee b) project team c) informal group d) interest group e) distributed team Answer: b Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Application Difficulty: Medium AACSB: Analytic 139) A ___ with members from different functional units of the organization is indispensable to organizations that emphasize adaptation and horizontal integration. a) Departmental sharing teams b) Structural teams c) Communication teams d) Cross-functional teams e) Organizational involvement committees Answer: d Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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140) Real Foods Ltd., an organic supermarket chain, utilizes the expertise of its employees from the marketing, design, product outlay, supply management, and inventory management teams to attract customers and drive sales. This is an example of a ___. a) self-managing team b) task force c) cross-functional team d) distributed team e) functional chimney Answer: c Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Application Difficulty: Medium AACSB: Analytic 141) A newspaper company is on the brink of bankruptcy. The publishing manager is asked to come up with a strategy to save the company. To arrive at the best plan the manager brings together key people from Operations, Sales and Marketing, Accounting, Finance, and Information Technology. What type of team did the publishing manager assemble? a) Virtual team b) Distributed team c) Cross-functional team d) Self-managing team e) Team Building Answer: c Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Application Difficulty: Hard AACSB: Analytic 142) A __________ is most likely to reduce the functional chimneys problem. a) Cross-functional team b) Self-managing work team Test Bank

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c) Committee d) Virtual team e) Distributed team Answer: a Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 143) How does a cross-functional team help reduce the functional chimneys problem? a) By giving the team members the right of self-management and thus the right to work in different departments. b) Bringing people together from across functions, thus eliminating the “wall” that may otherwise limit communication through departments and functions. c) By encouraging an unofficial network in which members can build relationships and share interests. d) In making individual contributions more visible and thus controlling social loafing. e) Thru increasing the motivation of the members and thus increasing work efficiency. Answer: b Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 144) The functional chimneys problem a) emerges from relationships and shared interests among members. b) results from an invisible barrier limiting career advancement of women and minorities. c) is the practice of spreading rumors across functional groups. d) is a lack of communication across functions. e) is the indecisiveness seen in a functional work team. Answer: d Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 145) In a growing number of organizations, the functional team––consisting of a firstlevel supervisor and their employees ––is being replaced by ___. a) informal task structures b) electronic networks c) high command structures d) self-managing teams e) manager involvement teams Answer: d Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 146) Which of the following statements does not accurately describe self-managing teams? a) Self-managing teams are authorized to make decisions about how they share and perform the required work. b) Self-managing teams operate with participative decision making, shared tasks, and responsibility for many managerial tasks. c) Self-managing teams never have the authority to hire or fire team members. d) Self-management responsibilities typically include planning and scheduling work as well training members in various tasks. e) Self-managing teams are expected to help enhance performance, decrease costs, and improve morale. Answer: c Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 147) Which of the following is true of a self-managing work team? Test Bank

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a) It refers to a team in which members evaluate one another’s performance contributions. b) It refers to a team of workers that operate with a comparatively lesser degree of task interdependence. c) In these teams, the members usually specialize in and focus on performing only one job. d) Each member of these teams is individually held accountable for performance results. e) Members of such a team work together and solve problems only through computerbased interactions. Answer: a Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 148) The sales team of Zapp Electronics is made up of members who decide collectively if a member should focus on indoor or outdoor sales. The team also decides the strategies to be adopted apart from evaluating each other’s performances. This is an example of ___. a) self-managing team b) task force c) cross-functional team d) committee e) functional chimney Answer: a Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Application Difficulty: Medium AACSB: Analytic 149) A group of people who work together and solve problems through computermediated interactions instead of face-to-face meetings is operating as ___. a) an automated quality circle b) a virtual team c) an electronically stimulated group d) a wide-area network team Test Bank

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e) a human resource team Answer: b Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 150) Which of the following does not accurately describe virtual teams? a) Team members from geographically dispersed locations can deal with issues in a timeefficient fashion. b) Because of information technology, virtual teams provide a problem-free approach to dealing with issues among team members at geographically dispersed locations. c) Interpersonal difficulties that might occur in face-to-face meetings could be minimized or eliminated. d) Working relationships can become depersonalized. e) Advantages of face-to-face meetings are lost. Answer: b Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 151) Members of a(n) ___ typically work together and solve problems through computerbased interactions. a) informal group b) distributed team c) interest group d) support team e) friendship group Answer: b Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Technology 152) Which of the following is true of a distributed team? a) Team members are less likely to get sidetracked by interpersonal difficulties. b) The team members are more sensitive to nonverbal cues in communication. c) It always ensures that team members do not feel isolated. d) A distributed team consists of members across departments who work at one place. e) It has a limited number of members owing to the hassles of expanding such a team. Answer: a Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 153) Frankie works in the downtown office of a large consulting firm. Joe, Sam, and Morgan work in the northwest branch office, while Jesse and Caelan work in the eastern branch office. When these people collectively work on problems and try to figure out solutions that they all can accept, they sit down at their computer terminals and communicate with each other through a special software program that guides their discussion. These people are operating as ___. a) a free-riding group b) an informal group c) a human network d) a virtual team e) task-focused problem solvers Answer: d Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Application Difficulty: Medium AACSB: Analytic 154) Blocs Inc. is headquartered in Canada and has a number of branches across the world. The head office manager is in charge of a project involving the creation of a new operating system. To work on this project, the head office manager has assembled a team with members who are based in the company’s China, India, Brazil, and USA branches. Test Bank

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Instead of meeting at a common location, the team members hold discussions through Skype. This is an example of a(n) ___. a) informal group b) virtual team c) interest group d) support team e) friendship group Answer: b Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Application Difficulty: Medium AACSB: Analytic 155) ___ is sequence of planned activities used to gather and analyze data on the functioning of a team and to implement constructive changes to increase the team’s operating effectiveness. a) Team cohesiveness b) Team building c) Team planning d) Leadership development e) Virtual team creation Answer: b Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 156) Team building is a multi-step process. Which of the following is not a teambuilding step? a) Become aware of potential problems. b) Develop individual competitive goals. c) Gather and analyze data. d) Develop action plans. e) Evaluate results. Test Bank

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Answer: b Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 157) At the beginning of a season, an NHL hockey coach has to spend time blending a variety of personalities, talents, and attitudes together. As the season progresses, players can lose focus, get frustrated if there’s a lack of performance, or become self-righteous. If ___ is not established early on, the players can lose cohesion and have challenges that may cost them the season. a) virtual team b) distributed team c) cross-functional team d) self-managing team e) team building Answer: e Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Application Difficulty: Medium AACSB: Analytic 158) In considering the results that any team must achieve, ___ means that a work group or team is expected to transform resource inputs into product outputs that have some value for the organization. a) performance b) cohesion c) commitment d) satisfaction e) future viability Answer: a Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Analysis Difficulty: Medium Test Bank

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AACSB: Analytic 159) In considering the results that any team must achieve, ___ means that members should experience satisfaction from performance results and their participation in the process. a) performance b) gratification c) commitment d) satisfaction e) future viability Answer: d Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 160) An effective team is defined as one that ___. a) achieves and maintains high levels of task performance b) achieves and maintains member satisfaction c) remains viable for the future d) all of the above e) none of the above Answer: d Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 161) The differences in values, personalities, experiences, demographics, and cultures among the membership are referred to as ___. a) functional chimneys b) glass walls c) team diversity d) groupthink Test Bank

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e) culture shock Answer: c Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 162) ___ can present significant group process challenges because of different values, personalities, experiences, demographics, and cultures among the members. a) Team effectiveness b) Team diversity c) Team cohesiveness d) Team size e) Team norms Answer: b Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 163) The main difference between homogeneous and heterogeneous teams is that a) the risk of occurrence of groupthink is more in the latter. b) the latter has members who are quite dissimilar to one another. c) members of the latter work together through computer-based interactions. d) the latter achieves high levels of task performance and future viability. e) only the latter has a task-driven, results-oriented structure. Answer: b Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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164) Which input factor to group process concerns providing support in the form of information, material resources, technology, spatial arrangements, organization structures, and rewards? a) organizational setting b) nature of the tasks c) team size d) membership characteristics e) group norms Answer: a Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 165) Which of the following is most likely to increase team effectiveness? a) increase in the complexity of interpersonal relationships b) good information and material resources c) involvement in social loafing d) teams that have more than eight or nine members e) strong cohesiveness that leads to groupthink Answer: b Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 166) In comparison to simple tasks, complex tasks require more information exchange and more intense interactions. This fact reflects which input factor of group process? a) the nature of tasks b) membership characteristics c) the organizational setting d) the type of the group e) the cohesiveness of the group Answer: a Test Bank

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Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 167) As teams increase in size a) the communication becomes less congested. b) it becomes easier to manage them. c) the number of potential interactions increases geometrically. d) the nature of the task ceases to affect team effectiveness. e) team effectiveness reaches its peak. Answer: c Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 168) The number and complexity of interactions can make teams increasingly difficult to manage as they grow in size. The threshold point at which team size becomes a significant input factor in effective group process is ___ team members. a) four or five b) six or eight c) eight or nine d) ten or eleven e) twelve team Answer: b Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 169) Amazon’s founder and CEO Jeff Bezos has a simple philosophy regarding the size of his product development teams. Which of the following represents his philosophy? Test Bank

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a) The size of your team is only limited by your imagination. b) No team should be larger than two pizzas can feed. c) There’s no such thing as “one size fits all”. d) Team size is not a function of success, but of contribution. e) Life’s too short to eat pizza with more than one person. Answer: b Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 170) ___ refer(s) to how the members of a team actually work together as they transform inputs into outputs. a) Working relationships b) Interpersonal relationships c) Team process d) Job specifications e) Team responsibilities Answer: c Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 171) Which of the following statements does not accurately describe team process? a) Team process includes how well team members communicate, make decisions, and handle conflicts. b) When team process fails, team effectiveness can suffer. c) Since team process is essential to team effectiveness, it guarantees team success. d) Teams must have the resource inputs needed to deal best with the task at hand. e) The organizational setting, nature of the task, team size, and membership characteristics are key inputs to team process. Answer: c Test Bank

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Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 172) The phases or stages in the life cycle of a team are ___. a) forming, storming, norming, performing, and adjourning b) introduction, growth, maturity, and decline c) forming, norming, performing, and satisfying d) inputs, throughputs, and outputs e) problem definition, problem analysis, solution generation, solution implementation, and evaluation Answer: a Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 173) In the life cycle of a team, the initial task orientation and interpersonal testing of individual members occurs in the ___ stage. a) forming b) storming c) norming d) performing e) adjourning Answer: a Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 174) The forming stage of team development is the stage a) of initial task orientation and interpersonal testing. Test Bank

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b) when sub-teams are formed around areas of agreement and disagreement. c) when shared rules of conduct emerge and the team feels a sense of leadership. d) of total integration in which members are able to deal in creative ways. e) when team members prepare to achieve closure and disband. Answer: a Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 175) In the life cycle of a team, conflicts over tasks and ways of operating as a team occur in the ___ stage. a) forming b) storming c) norming d) performing e) adjourning Answer: b Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 176) The storming stage of team development is the stage a) of initial task orientation and interpersonal testing. b) when sub-teams are formed around areas of agreement and disagreement. c) when shared rules of conduct emerge and the team feels a sense of leadership. d) of total integration in which members are able to deal in creative ways. e) when team members prepare to achieve closure and disband. Answer: b Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 177) The norming stage of team development is the stage a) of initial task orientation and interpersonal testing. b) when sub-teams are formed around areas of agreement and disagreement. c) when shared rules of conduct emerge and the team feels a sense of leadership. d) of total integration in which members are able to deal in creative ways. e) when team members prepare to achieve closure and disband. Answer: c Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 178) The norming stage of the team life cycle is characterized by ___. a) a period of high emotionality b) the identification of team boundaries and team roles c) efforts to find ways to accomplish group goals while also satisfying individual needs d) the team becoming a coordinated work unit with shared rules of conduct e) the ability to handle membership disagreements in creative ways Answer: d Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 179) During the ___ stage of the team life cycle, total integration of team members occurs, and they creatively deal with complex tasks and interpersonal conflicts. a) forming b) storming c) norming d) performing e) adjourning Test Bank

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Answer: d Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 180) The performing stage of team development is the stage a) of first entry of individual members into a team of initial task orientation and interpersonal testing. b) of high emotionality when sub-teams are formed around areas of agreement and disagreement. c) where members develop initial feelings of closeness, a division of labour, and a sense of shared expectations. d) of total integration in which members are able to deal in creative ways with complex tasks. e) when temporary committees, task forces, and project teams disband with a sense that important goals have been accomplished. Answer: d Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 181) In the life cycle of a team, task accomplishment and eventual disengagement occur in the ___ stage. a) forming b) storming c) norming d) performing e) adjourning Answer: e Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 182) The adjourning stage of team development is the stage a) of first entry of individual members into a team of initial task orientation and interpersonal testing. b) of high emotionality when sub-teams are formed around areas of agreement and disagreement. c) where members develop initial feelings of closeness, a division of labour, and a sense of shared expectations. d) of total integration in which members are able to deal in creative ways with complex tasks. e) when temporary committees, task forces, and project teams disband with a sense that important goals have been accomplished. Answer: e Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 183) Logan’s team is strained. The team members differ in views and opinions that result in frequent conflicts within the team. Irrespective of the conflicts, tasks that need to be achieved are becoming clearer and people are beginning to understand one another’s working styles. Which of the following stages of team development does this situation exemplify? a) forming stage b) norming stage c) storming stage d) adjourning stage e) performing stage Answer: c Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Application Difficulty: Medium AACSB: Analytic

Test Bank

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184) The members of the Research & Development team of Verdantine Labs have developed an understanding among themselves, thereby reducing the possibilities of interpersonal hostilities or disintegration. The team members also occupy key leadership positions thereby evoking a sense of leadership. Which of the following stages of team development does this situation exemplify? a) forming stage b) norming stage c) storming stage d) adjourning stage e) performing stage Answer: b Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Application Difficulty: Medium AACSB: Analytic 185) A special team is put together at D.M.G. to work on a robotics project. The team is in the process of completing its project, and all the members share the view that they have successfully accomplished their goal. This team is most likely to be in the ___ stage of its development. a) storming b) norming c) performing d) forming e) adjourning Answer: e Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Application Difficulty: Medium AACSB: Analytic 186) “Rules” or “standards” that guide the behaviour of team members are called ___. a) cohesion factors b) required behaviours c) task guides Test Bank

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d) maintenance behaviours e) norms Answer: e Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 187) Which of the following best describes a norm? a) A behaviour, rule, or standard expected to be followed by team members. b) It is the degree to which members are attracted to and motivated to remain part of a team. c) The tendency of individual team members to engage in self-serving behaviours. d) It is the way team members of any team actually work together as they transform inputs into output. e) The differences in values, personalities, experiences, demographics, and cultures among the membership. Answer: a Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 188) A ___ defines the level of work effort and performance that team members are expected to contribute. a) team norm b) performance norm c) work norm d) work/effort norm e) productivity norm Answer: b Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 189) ___ is the degree to which members are attracted to and motivated to remain part of a team. a) Effectiveness b) Cohesiveness c) Productivity d) Efficiency e) Diversity Answer: b Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 190) In terms of team productivity, the best-case scenario of a work team’s performance norms and cohesiveness occurs with ___ performance norms and ___ team cohesiveness. a) high; high b) positive; high c) negative; high d) negative; low e) positive; low Answer: b Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Application Difficulty: Medium AACSB: Analytic 191) Which of the following is not something a manager can do to increase team cohesion? a) Increase membership homogeneity. b) Decrease team size. c) Introduce competition with other teams. Test Bank

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d) Reward team rather than individual results. e) Encourage direct physical contact with other teams. Answer: e Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Application Difficulty: Medium AACSB: Analytic 192) Conformity to norms in a team is likely to be the highest when a) diversity is high. b) diversity is low. c) cohesiveness is high. d) cohesiveness is low. e) the size of the team is big. Answer: c Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 193) Which of the following is true of a highly cohesive team? a) The team members are less likely to conform to the norms. b) The members often violate core values. c) The intensity of rivalry among the members is very high. d) The members are not ethical in their dealings. e) The team members strive to maintain positive relationships. Answer: e Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic

Test Bank

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194) Which of the following is an ideal step that leaders can take to ensure that their teams build positive norms? a) Increase the size of the team. b) Increase team diversity. c) Impose strict guidelines and penalties. d) Strengthen team cohesiveness. e) Encourage rivalry among members. Answer: d Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 195) Two types of activities are essential if team members are to work well together over time. These two activities are ___. a) task and maintenance activities b) norm and cohesion building activities c) effectiveness and efficiency training activities d) promoting interactions and sentiments e) developing emergent and required behaviours Answer: a Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 196) A(n) ___ activity is an action taken by a team member that directly contributes to the team’s performance purpose. a) maintenance b) disruptive c) task d) social loafing e) orientation Answer: c Test Bank

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Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 197) Efforts to support the emotional life of the team as an ongoing social system are ___. a) affective behaviours b) affiliation activities c) maintenance activities d) support services e) cohesion activities Answer: c Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 198) Encouraging team members and developing good interpersonal relationships are part of ___ activities. a) maintenance b) direct performance oriented c) task d) social loafing e) information sharing Answer: a Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 199) Which of the following is an example of a maintenance activity? Test Bank

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a) information sharing b) elaborating c) initiating d) gatekeeping e) summarizing Answer: d Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 200) ___ makes every team member responsible continually for both recognizing when task or maintenance activities are needed and taking actions to provide them. a) Team cohesiveness b) Distributed leadership c) Groupthink d) Consensus e) An interacting group pattern Answer: b Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 201) Taylor notices that the team always fails to complete projects on schedule, and has come to realize that this problem can be tackled by prioritizing the projects and setting personal goals. Taylor urges the team members to follow this technique, which the team does and there is a significant improvement in the performance of the team. This action taken by Taylor is an appropriate example of a(n) ___ activity. a) maintenance b) disruptive c) task d) social loafing e) groupthink Answer: c Test Bank

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Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Application Difficulty: Medium AACSB: Analytic 202) ___ activities are self-serving behaviours that interfere with team effectiveness. a) Maintenance b) Disruptive c) Task d) Orientation e) Self-management Answer: b Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 203) Activities such as showing incivility toward other members and withdrawing from the discussion are typical examples of ___ activities. a) maintenance b) disruptive c) task d) orientation e) initializing Answer: b Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 204) All members of a team working on developing a mobile operating system at Lock Inc. contribute helpful task and maintenance behaviours. This team follows the ___ form of leadership. Test Bank

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a) authoritarian b) high power distance c) distributed d) centralized e) transactional Answer: c Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Application Difficulty: Medium AACSB: Analytic 205) Which of the following describes the teamwork effect? a) When team members work together for a long enough time to learn each other’s skill, interactions and ways of performing. b) It is an aberration of academia. c) This is an overrated concept related to new teams only. d) This concept occurs when a team comes together and immediately clicks. e) The teamwork effect is an elusive quality found only in the rarest of teamwork situations. Answer: a Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 206) Which of the following are “must have” team skills? a) encouraging and motivating others b) persuading others to cooperate c) avoiding disruptive acts and words d) all of the above e) none of the above Answer: d Learning Objective 17.1: Explain the ways teams contribute to organizations. Test Bank

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Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 207) Resolving and negotiating conflict is seen as a a) needless endeavour in team building. b) a “must have” team skill. c) too expensive to spend much time doing. d) a task left to the company CEO. e) necessary evil. Answer: b Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 208) With respect to teams and teamwork, the key question for managers and team leaders is: a) how do we make sure that teams and teamwork satisfy team members? b) how do we make sure that teams and teamwork benefit the organization financially? c) how do we make sure that teams and teamwork are utilized throughout the entire organization? d) how do we make sure that teams and teamwork are utilized to everyone’s best advantage? e) how do we make sure that teams and teamwork do not consume excessive amounts of time? Answer: d Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Comprehension Difficulty: Hard AACSB: Analytic 209) Which of the following is an example of a disruptive activity? Test Bank

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a) Gatekeeping b) Controlling c) Aggression d) Following e) Opinion giving Answer: c Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 210) A ___ allows all members to communicate directly with each other. a) centralized communication network b) neutral communication network c) decentralized communication network d) restricted communication network e) standard communication network Answer: c Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 211) A ___ seems to work best on complex tasks that require intense interaction and information sharing. a) decentralized communication network b) centralized communication network c) neutral communication network d) restricted communication network e) standard communication network Answer: a Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 212) A decentralized communication network is one that a) allows all members to communicate directly with one another. b) restricts direct communication between individual members and the hub. c) allows limited communication among subgroups. d) decreases cohesiveness in a team. e) allows communication flows only between individual members and a hub. Answer: a Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 213) When team members must interact intensively and work closely together on tasks, this need is best met by a ___ communication network. a) wheel b) chain c) decentralized d) restricted e) top down Answer: c Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 214) In a(n) ___ communication network, communication flows only between individual members and a hub. a) restricted b) centralized c) all-channel d) star Test Bank

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e) polarized Answer: b Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 215) Which of the following is true of a chain communication structure? a) Its activities are coordinated, and results pooled by a central point of control. b) It allows all members to communicate directly with one another. c) It best suits teams when members must interact intensively and work closely. d) Polarized subgroups contest one another and may even engage in conflict. e) It promotes self-serving behaviours that interfere with team effectiveness. Answer: a Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 216) In a(n) ___ communication network, communication between subgroups is limited and biased, with negative consequences for group process and effectiveness. a) restricted b) centralized c) all-channel d) chain e) wheel Answer: a Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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217) Which of the following best describes decision making? a) An action taken by a team member that supports the emotional life of the group. b) It is an action taken by a team member that directly contributes to the group’s performance purpose. c) A stage of total integration in which team members are able to deal in creative ways. d) It is the process of making choices among alternative possible courses of action. e) It is the way team members work together to accomplish tasks. Answer: d Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 218) In the ___ method of decision making, one idea after another is suggested without any discussion taking place. a) decision by lack of response b) decision by authority rule c) decision by minority rule d) decision by majority rule e) decision by unanimity Answer: a Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 219) When formal voting or polling takes place, with the objective of determining which idea is favoured by more than half the team members, the team is making a decision by ___. a) majority rule b) lack of response c) authority rule d) consensus e) minority rule Test Bank

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Answer: a Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 220) Teams will make decisions by ___ when they argue, engage in reasonable debate and discussion, respect one another, and yet make a decision that does not require unanimity but can be supported by all team members. a) consensus b) unanimity c) majority rule d) minority rule e) lack of response Answer: a Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 221) Ainsley supervises the marketing team at Upscale Inc. and rather than having discussions with the team, Ainsley makes all the decisions related to marketing policies himself. This approach is an example of ___. a) decision by lack of response b) decision by authority rule c) decision by minority rule d) decision by majority rule e) decision by unanimity Answer: b Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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222) In the ___ method of decision making, two or three people are able to dominate or “railroad” the team into making a decision that they prefer. a) decision by lack of response b) decision by authority rule c) decision by minority rule d) decision by consensus e) decision by unanimity Answer: c Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 223) In the ___ way of decision making, full discussion leads to one alternative being favoured by most members, and the other members agree to support it. a) decision by lack of response b) decision by authority rule c) decision by minority rule d) decision by consensus e) decision by unanimity Answer: d Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 224) When all the members of a team agree to a decision, it is referred to as the ___ way of decision making. a) decision by lack of response b) decision by authority rule c) decision by minority rule d) decision by consensus e) decision by unanimity Test Bank

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Answer: e Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 225) In the “Six Thinking Hats” system for problem solving which has represents process control? a) White Hat b) Black Hat c) Green Had d) Blue Hat e) Yellow Hat Answer: d Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 226) In the “Six Thinking Hats” system for problem solving with which hat is the problem looked at by drawing from the group’s intuition? a) White Hat b) Red Hat c) Green Had d) Blue Hat e) Yellow Hat Answer: b Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 227) In the “Six Thinking Hats” system for problem solving which has represents Test Bank

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creativity? a) White Hat b) Red Hat c) Green Had d) Blue Hat e) Yellow Hat Answer: e Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 228) Which of the following is a disadvantage typically associated with the team decision making process? a) minority domination b) social loafing c) team diversity d) downsizing e) liquidation Answer: a Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 229) Which of the following helps one in achieving consensus? a) Every member in the team is kept involved in the decision process. b) Two or three people dominate and lead the team into making a decision. c) The leader, manager, or some other authority figure makes decisions for the team. d) One idea after another is suggested without any discussion taking place. e) A suggestion is provided and then the team is forced into quick agreement. Answer: a Learning Objective 17.4: Discuss the ins and outs of team decision-making. Test Bank

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Section Reference 17.4: Decision Making in Teams Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 230) To be effective in deciding whether to use individual, consultative, or group decision methods for a particular situation, team leaders must ___. a) understand the assets and liabilities of group decision making b) have competent and motivated group members c) know how to solve problems better than any of the team members d) ignore any all input from outside parties e) trust their gut Answer: a Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 231) Which of the following best describes groupthink? a) It is an action taken by a team member that supports the emotional life of the group. b) It is an action taken by a team member that directly contributes to the group’s performance purpose. c) It is a stage of total integration in which team members are able to deal in creative ways. d) It is the process of making choices among alternative possible courses of action. e) It is a tendency for highly cohesive teams to lose their evaluative capabilities. Answer: e Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 232) Pat’s team is highly cohesive, and the members of the team find it difficult to disapprove of the ideas and opinions expressed by their teammates. Which of the following terms would best describe this situation? Test Bank

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a) groupthink b) brainstorming c) halo effect d) synergy e) social loafing Answer: a Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Application Difficulty: Medium AACSB: Analytic 233) Potential advantages of group decision making include all of the following except a) group decision making brings more information, knowledge, and expertise to bear on problems. b) group decision making expands the number of alternatives that are considered. c) group decision making improves members’ understanding and acceptance of the final decision. d) group decision making increases members’ commitment to follow through on implementing the decision. e) group decision making promotes decisions favoured by a small but powerful coalition. Answer: e Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 234) Groupthink can be avoided by doing all of the following except a) assigning the role of critical evaluator to each group member. b) having the leader strongly advocate a particular course of action. c) creating sub-teams to work on the same problem and then sharing their proposed solutions. d) inviting outside experts to observe and react to group process and decisions. e) assigning one member to play a “devil’s advocate” role at each team meeting. Answer: b Test Bank

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Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Comprehension Difficulty: Hard AACSB: Analytic 235) Which of the following is a symptom of groupthink? a) emphasis on centralized communication b) self-serving behaviour c) decrease in team size d) illusions of invulnerability e) high team diversity Answer: d Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 236) Groupthink most likely to occur when members ____________.? a) indulge in criticism of their own work b) thoroughly consider alternatives c) accept consensus prematurely d) are skeptical of inherent group morality e) communicate personal concerns to the whole team Answer: c Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 237) Which of the following is likely to be most effective in checking groupthink? a) assigning the role of critical evaluator to each team member b) building agreement among team members on team goals Test Bank

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c) increasing membership homogeneity d) rewarding team rather than individual results e) providing physical isolation from other teams Answer: a Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 238) Jean walked into a meeting late as usual. Jean wanted to contribute to the discussion because the plan being discussed would not be feasible in the next few months, however Jean said nothing fearing negative feedback from colleagues as a result of being late for the meeting. Choose the best term that describes this symptom of groupthink. a) illusion of invulnerability b) self-censorship c) mind guarding d) illusion of unanimity e) stereotyping competitors as weak, evil and stupid Answer: b Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Application Difficulty: Medium AACSB: Analytic 239) ___ engages group members in an open, spontaneous discussion of problems and ideas. a) Groupthink b) Brainstorming c) Centralized communication d) Restricted communication e) Maintenance activity Answer: b Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 240) The team decision-making technique that rules out criticism and encourages freewheeling and building on one another’s ideas is known as ___. a) quality circles b) nominal team building c) brainstorming d) groupthink e) creativity Answer: c Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 241) The guidelines for brainstorming include all of the following except a) all criticism is ruled out. b) “freewheeling” is welcomed. c) quantity of ideas is important. d) quality of ideas is important. e) building on one another’s ideas is encouraged. Answer: d Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 242) “There’ll be a meeting to discuss issues related to the execution of the new project. Please feel free to point out difficulties in carrying out tasks, suggest solutions, and voice doubts,” said the team leader to the members of the team. Which of the following terms would best describe the meeting to be held? a) groupthink Test Bank

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b) centralized communication network c) wheel communication structure d) distributed leadership e) brainstorming Answer: e Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Application Difficulty: Medium AACSB: Analytic 243) ___ uses a highly structured meeting agenda to allow everyone to contribute ideas without the interference of evaluative comments by others. a) A quality circle b) The nominal group technique c) Brainstorming d) Groupthink e) Conflict management Answer: b Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 244) Charlie, the customer relationship manager of SimplyBuyz.com, an e-commerce retailer, calls for a meeting of the team to discuss strategies to handle customer grievances effectively. Charlie seeks inputs from all team members who come up with solutions to certain grievances without being evaluated or criticized by the other team members. Which of the following approaches does Charlie adopt to invoke creativity in the process of team decision making? a) team virtuousness b) brainstorming c) halo effect d) nominal group technique e) social loafing Answer: d Test Bank

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Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Application Difficulty: Medium AACSB: Analytic 245) Which of the following best describes the nominal group technique? a) It is the technique of making choices among alternative possible courses of action. b) It is the technique of structuring interaction among team members discussing ideas. c) It is the technique of building agreement on team goals and thus increasing cohesiveness. d) It is the technique of measuring the degree to which members are motivated to remain as a part of a team. e) It is the technique of measuring the effectiveness and efficiency of individual members of a team. Answer: b Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Question type: Essay 246) Describe how teams contribute to an organization’s success and sustainability? Answer: Teams can be a source of synergy for organizations. Team members working together can accomplish more on behalf of the organization than the individual members can working separately. Teams also benefit organizations by: increasing resources for problem solving; fostering creativity and innovation; improving the quality of decision making; enhancing members’ commitments to tasks; raising motivation through collective action; helping with control and work discipline; and satisfying individual needs as organizations grow in size. Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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247) Define team contribution and how it may be useful in the workplace. Answer: Contribution is defined as the things people do to help teams succeed or fail and help or hinder their members enjoy the team experience. Positive team contributions enhance team performance, negative team contributions detract from team performance. In today’s fast paced and project-based workplace, teams and their contributions are even more important than before. Teams are needed to research, create, test, evaluate, implement and review products, processes and opportunities. Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 248) List and briefly describe the advantages and disadvantages associated with teamwork? Answer: Some of the advantages of team work are: • Performance gains through synergy • More resources for problem solving • Improved creativity and innovation • Improved quality of decision making • Greater member commitment to tasks • Increased motivation of members • Increased need satisfaction of members Some of the disadvantages of team work are: • Personality conflicts and work style differences • Ambiguous agendas or ill-defined problems • Social loafing • Groupthink Learning Objective 17.1: Explain the ways teams contribute to organizations. Section Reference 17.1: Teams in Organizations Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 249) Briefly explain the following terms and how they either add or detract from teams in a business setting: Social loafing Test Bank

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Cohesiveness Distributed leadership Groupthink Answer: Social loafing is the tendency of some people to avoid responsibility by “freeriding” in groups. Social loafing and other problems can easily turn the great potential of teams into frustration and failure, and can cost the team much in time, effort, morale and output. Cohesiveness is the degree to which members are attracted to and motivated to remain part of a team. Persons in a highly cohesive team value their membership and strive to maintain positive relationships with other team members. Because they experience satisfaction from team identification, they tend to conform to the norms. This leads to more effective and efficient teams. Distributed leadership is when all members of a team contribute helpful task and maintenance behaviours. This is useful in a business setting as it spreads out the maintenance responsibilities and promotes cohesion among team members. This facilitates a more effective team environment Groupthink is a tendency for highly cohesive teams to lose their evaluative capabilities. Groupthink can occur anywhere. In fact, Janis ties a variety of well-known historical blunders to the phenomenon, including the lack of preparedness of U.S. naval forces for the Japanese attack on Pearl Harbour and the U.S. Bay of Pigs invasion under President John F. Kennedy. Learning Objective 17.1: Explain the ways teams contribute to organizations. Learning Objective 17.2: Describe current trends in the use of teams in organizations. Learning Objective 17.3: Summarize the key processes through which teams work. Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.1: Teams in Organizations Section Reference 17.2: Trends in the Use of Teams Section Reference 17.3: How Teams Work Section Reference 17.4: Decision Making in Teams Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 250) Identify and describe the basic types of teams that exist within organizations. Answer: The basic types of teams that are used in organizations include committees, project teams and task forces, cross-functional teams, employee involvement teams, virtual teams, and self-managing work teams. Each of these teams is described below: • A committee brings people together outside of their daily job assignments to work in a small team for a specific purpose. The task agenda is typically narrow, focused, and ongoing A committee’s membership may change over time even as the committee remains in existence. • Project teams or task forces bring together people from various parts of an Test Bank

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•

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organization to work on common problems, but on a temporary rather than permanent basis. Official tasks are very specific and time defined. A task force or project team disbands once the stated purpose has been accomplished. A cross-functional team has members who come from different functional units to work on a specific problem or task, and to do so with the needs of the whole organization in mind. These teams share information, explore new ideas, seek creative solutions, meet project deadlines, and are not limited by purely functional concerns and demands. Employee involvement teams are groups of workers who meet on a regular basis outside of their formal assignments, with the goal of applying their expertise and attention to continuous improvement. Virtual teams are teams of people who work together and solve problems through largely computer-mediated rather than face-to-face interactions. Self-managing work teams are teams of workers whose jobs have been redesigned to create a high degree of task interdependence, and who have been given authority to make many decisions about how they do the required work. The selfmanagement responsibilities include planning and scheduling work, training members in various tasks, sharing tasks, meeting performance goals, ensuring high quality, solving day-to-day operating problems and, in some cases, “hiring” and “firing” team members.

Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 251) What is a virtual team? What are the potential advantages of a virtual team? Answer: A virtual team is one whose members work together and solve problems through computer-based interactions. In terms of potential advantages, virtual teams can save time and travel expense when members work in different locations. They can also be easily expanded to include more members as needed and the discussions and shared information can be archived for later access. Virtual teams are usually quite efficient because members are less likely to stray off task and get sidetracked by interpersonal difficulties. Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 252) What is an effective team? How can team-building increase team effectiveness? Test Bank

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How can leadership help increase team effectiveness? Answer: An effective team is one that achieves and maintains high levels of both task performance and member satisfaction and retains its viability for the future. Team building is a sequence of planned activities to gather and analyze data on the functioning of a team and to implement constructive changes to increase its operating effectiveness. Team building fosters the development of high-performing teams with the following characteristics: a clear and elevating goal; a task-driven and results-oriented structure; competent and committed members who work hard; a collaborative climate; high standards of excellence; external support and recognition; and strong and principled leadership. In addition to strong and principled leadership, effective leaders of highperforming teams act to establish a clear vision of the future, create change, and unleash talent. Learning Objective 17.2: Describe current trends in the use of teams in organizations. Section Reference 17.2: Trends in the Use of Teams Bloom’s: Analysis Difficulty: Medium AACSB: Reflective Thinking Solution: 253) Define the term “team process”. What are the different stages of team development? Answer: Team process is the way team members work together to accomplish tasks. Teams pass through the following stages of team development—forming, storming, norming, performing, and adjourning. The forming stage involves the first entry of individual members into a team. This is a stage of initial task orientation and interpersonal testing. In the storming stage, task agendas become clarified and members begin to understand one another’s styles. It is in the norming stage that members develop initial feelings of closeness, a division of labour, and a sense of shared expectations. This helps protect the team from disintegration. In fact, holding the team together may seem more important than accomplishing important tasks. Performing is a stage of total integration in which team members are able to deal in creative ways with complex tasks and any interpersonal conflicts. The final stage of team development is adjourning, when team members prepare to achieve closure and disband. Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Knowledge Difficulty: Easy AACSB: Reflective Thinking 254) Briefly describe the stages of group/team development. Think of a group or team in which you have held or currently hold membership. Explain how the stages of Test Bank

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group/team development can be applied to this example group or team. •

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Answer: The stages of team development are forming, storming, norming, performing, and adjourning. Each of these stages is described briefly below: The forming stage is a stage of initial orientation and interpersonal testing. Members begin to identify with other members and the team itself. Members are concerned about getting acquainted, establishing interpersonal relationships, identifying acceptable behaviour, and learning how others perceive the team’s task. The storming stage is a stage of conflict over tasks, interpersonal concerns, and ways of operating as a team. Members may become highly emotional and tensions may emerge over task and interpersonal concerns. Task agendas become clarified and members begin to understand one another’s interpersonal styles. Efforts are made to find ways to meet team goals while also satisfying individual needs. The norming stage is a stage of consolidation around task and operating agendas. Members of the team begin to become coordinated as a working unit and tend to operate with shared rules of conduct. The team feels a sense of leadership and each member starts to play useful roles. Harmony and cooperation are emphasized, but minority viewpoints may be discouraged. Members are likely to develop initial feelings of closeness, a division of labour, and a sense of shared expectations. The performing stage is a stage of true teamwork and focused task performance. The team becomes mature, organized, and well-functioning. Members perform complex tasks and deal with conflict in creative ways. The team operates with a clear and stable structure, and members are motivated by team goals. The adjourning stage is a stage of preparation for eventual disengagement. Members prepare to achieve closure and disband. Adjourning is especially common for temporary teams that operate in the form of task forces and projects teams. Ideally, the team disbands with a desire to work together again in the future should the opportunity arise.

The students should compare their group/team experiences to the information contained in the preceding framework. Learning Objective 17.3: Summarize the key processes through which teams work. Section Reference 17.3: How Teams Work Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 255) Discuss the advantages and disadvantages of team decisions. Answer: When teams take time to make decisions by consensus or unanimity, they gain special advantages over those relying more on individual or minority decision methods. The process of making a true team decision makes more information, knowledge, and Test Bank

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expertise available. It expands the number of action alternatives that are examined and helps to avoid getting trapped by tunnel vision and considering only one or a few options. Team decisions also increase understanding and acceptance by members. This helps build commitments of members to work hard to implement the decisions they have made together. The potential disadvantages of team decision making trace largely to the difficulties with group process. When many people are trying to make a team decision, it can be hard to reach agreement and there may be social pressure to conform. There may be minority domination, where some members feel forced or “railroaded” to accept a decision advocated by one vocal individual or small coalition. And, the time required to make team decisions can sometimes be a disadvantage. As more people are involved in the dialogue and discussion, decision making takes longer. This added time may be costly, even prohibitively so, in certain circumstances. Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 256) Teams are responsible for collecting, generating, evaluating, deliberating, fusing, choosing, and acting on information in order to resolve issues. From a decisionmanagement viewpoint, all of these activities are decision-making activities. List and describe the different methods that teams might use to make decisions. Answer: Teams make decisions by at least six different methods: lack of response, authority rule, minority rule, majority rule, consensus, and unanimity. In decision by lack of response, one idea after another is suggested without any discussion taking place. In decision by authority rule, the leader, manager, committee head, or some other authority figure makes a decision for the team. In decision by minority rule, two or three people are able to dominate or “railroad” the team into making a mutually agreeable decision. In decision by majority rule, formal voting may take place, or members may be polled to find the majority viewpoint. In decision by consensus, discussion leads to one alternative being favoured by most members and the other members agreeing to support it. In decision by unanimity, all team members agree on the course of action to be taken. Learning Objective 17.4: Discuss the ins and outs of team decision-making. Section Reference 17.4: Decision Making in Teams Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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CHAPTER 18 COMMUNICATION AND COLLABORATION Question type: True/False 1) While social capital is basically what you know, intellectual capital comes from the people you know and how well you relate to them. Answer: False Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 2) In the communication process, the messenger is responsible for encoding an intended message into meaningful verbal and non-verbal symbols. Answer: False Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 3) Planning is accomplished, and plans are shared through the communication of information. Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 4) Controlling relies on organizing to process information to measure performance results. Test Bank

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Answer: False Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 5) When present, feedback reverses the communication process and conveys the receiver’s response to the sender. Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 6) Effective communication occurs when the sender’s intended message and the receiver’s interpreted meaning of that message are identical. Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 7) Effective communication occurs when the sender’s message is fully understood by the receiver and efficient communication occurs at minimum cost. Answer: False Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 8) If communication is effective it will always be efficient, however if communication is Test Bank

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efficient it is not always effective. Answer: False Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 9) Persuasive communication presents a message in a manner that causes the other person to support it. Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 10) To build credibility through expertise, one must be knowledgeable about the issue in question or have a successful track record in dealing with similar issues in the past. Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 11) Credibility refers to trust, respect, and integrity in the eyes of others. Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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12) Anything that interferes with the effectiveness of the communication process is noise. Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 13) Efficient communication means that all noise has been eliminated from the communication process. Answer: False Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 14) Filtering is the intentional distortion of information to make it appear favourable to the recipient. Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 15) Information filtering results in biased and inaccurate information being received by the receiver ultimately leading to poor decision-making. Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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16) The medium through which a message is conveyed from sender to receiver is called a communication channel. Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 17) Spoken channels work best for messages that are complex and difficult to convey. Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 18) Channel richness is the capacity of a communication channel to carry information in an effective manner. Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 19) In a communication channel, high channel richness is impersonal, one-way, and fast. Answer: False Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic Test Bank

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20) Managers need to understand the limits of a channel and choose wisely in communicating various types of messages. Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 21) Becoming effective in written and oral communications requires skill, takes practice and hard work, and is essential for all employees and managers. Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 22) Non-verbal communication takes place through such things as hand movements, body posture, eye contact, and the use of interpersonal space. Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 23) Non-verbal communication can be transmitted without the sender knowing or desiring it, or it can be used intentionally to enhance oral communication. Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 24) A mixed message occurs when a person’s words communicate one message while their actions, body language, appearance, or situational use of interpersonal space communicate something to someone else. Answer: False Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 25) Physical distractions create information overload; however, their impact can be minimized by setting priorities and planning. Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 26) A visitor dropping in during the middle of a meeting is an example of a distraction that can interfere with the effectiveness of communication. Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 27) Today’s technology eliminates the problem of workplace distractions in the workplace as it is designed to maximize employees’ ability to multi-task. Answer: False Learning Objective 18.1: Identify the elements in the communication process. Test Bank

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Section Reference 18.1: The Communication Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 28) Ethnocentrism refers to favouritism shown to relatives or close friends by those in power (as by giving them jobs). Answer: False Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 29) Technology makes generational differences in communication methods irrelevant in today’s workplace. Answer: False Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 30) Non-verbal communication seldom interferes with the effectiveness of verbal communication in a cross-cultural sense, as it’s easy to hire good language interpreters. Answer: False Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 31) Communication barriers can be overcome, perceptual distortions can be minimized, and the communication process can be improved by engaging in active listening, providing constructive feedback, opening communication channels, and using space and technology. Test Bank

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Answer: True Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Synthesis Difficulty: Hard AACSB: Analytic 32) In order to prevent confusion and misinterpretation of all forms of communication, the predominant corporate culture in the location of the head office must be the one that prevails everywhere the corporation is located and conducts its business. Answer: False Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 33) A lack of communication transparency is evident when managers try to hide information and restrict access to it by organizational members. Answer: True Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 34) To promote communication transparency, all information should be accurate and complete. Answer: True Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 35) The term open book management describes a form of communication transparency where Test Bank

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employees are provided with essential financial information about their companies. Answer: True Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 36) Communication in contemporary organizations relies on the use of information technology such as email, voice mail, instant messaging, teleconferencing, online discussions, videoconferencing, computer-mediated meetings, intranets, and Web portals. Answer: True Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 37) The electronic grapevine can be functional when the information is accurate and useful and dysfunctional when the information is false, distorted, or simply based on rumour. Answer: True Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 38) The best advice regarding email privacy at work is to find out the employer’s policy on personal email and follow it, and to not assume that you have email privacy at work. Answer: True Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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39) Passive listening involves being sincere and trying to find out the full meaning of what is being said. Answer: False Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 40) An active listener must never paraphrase and restate to the source what he thinks he is hearing. Answer: False Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 41) Active listening entails listening for message content, listening for feelings, responding to feelings, noting all cues, and paraphrasing and restating. Answer: True Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 42) An active listener is sensitive to non-verbal and verbal messages and is alert for mixed messages. Answer: True Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 43) Feedback is useful and constructive as long as it satisfies some personal need of the sender. Answer: False Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 44) When poorly done, feedback can be threatening to the recipient and cause resentment. Answer: True Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 45) Constructive feedback should be based on trust, specific rather than general, given at an appropriate time, something the receiver can act on, and given in small doses. Answer: True Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 46) Constructive feedback should only be given directly and with real feeling, based on trust between you and the receiver. Answer: True Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 47) Sensemaking involves engaging in discussions supporting certain interpretations of an event in order to reach a shared understanding. Answer: True Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 48) The three stages of the sensemaking process are sensebreaking, sensegiving and sensetaking. Answer: False Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 49) The distance between people conveys varying intentions in terms of intimacy, openness, and status in interpersonal communications. Answer: True Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 50) The physical layout of an office or room is a form of non-verbal communication. Answer: True Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 51) Proxemics refers to the use of space to communicate varying intentions in terms of intimacy, openness, and status. Answer: True Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 52) The amount of interpersonal distance between people suggests varying intentions in terms of intimacy, but not openness or status. Answer: False Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 53) Office cubicles are the best way to facilitate employee empowerment as each employee “owns” their own space. Answer: False Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 54) Conflict is a disagreement between two or more people on substantive or emotional issues. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 55) Conflict that occurs because of disagreements over things such as goals, the allocation of resources, the distribution of rewards, policies and procedures, or job assignments is referred to as emotional conflict. Answer: False Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 56) Substantive conflicts result from feelings of anger, distrust, dislike, fear, and resentment, as well as from personality clashes and relationship problems. Answer: False Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 57) When employees have feelings of anger, distrust, dislike, fear, and resentment toward others, emotional conflict is the likely cause. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 58) Too little conflict can promote complacency. Answer: True Test Bank

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Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 59) Refusing to deal with, or denying the existence of a conflict will ultimately lead to management's loss of credibility and ineffective leadership. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 60) The type of conflict that stimulates employees to work toward greater effort, cooperation, and creativity is functional conflict. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 61) Dysfunctional conflict can bring new ideas into the workplace and improve task performance. Answer: False Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 62) Pre-existing conditions that give rise to conflict include role ambiguities, resource scarcities, task interdependencies, competing objectives, structural differentiation, and unresolved prior conflicts. Test Bank

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Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 63) As a cause of conflict, role ambiguities involve unclear job expectations and other task uncertainties that increase the likelihood of people working at cross-purposes. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 64) As a cause of conflict, competing objectives involve individuals or groups being dependent on what others do in order to perform well themselves. Answer: False Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 65) As a cause of conflict, structural differentiation involves poorly set objectives or poorly designed reward systems. Answer: False Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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66) Conflict may remain latent in a given situation if it is not resolved and will resurface in the future. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 67) Effective conflict resolution can be achieved by eliminating the underlying substantive or emotional causes of conflict, thus reducing the potential for similar conflicts in the future. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 68) It is possible to effectively resolve conflicts by rearranging facilities, workspaces, and workflows to reduce opportunities for conflict. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Application Difficulty: Medium AACSB: Analytic 69) It is extremely difficult, if not impossible, to effectively resolve conflicts by changing reward systems to reduce competition among individuals and groups for rewards. Answer: False Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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70) The compromise style of conflict management pretends that conflict doesn’t really exist. Answer: False Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 71) Not all conflict can be resolved at the interpersonal level. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 72) The conflict management style of avoidance involves being uncooperative and unassertive. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 73) The conflict management style of accommodation is characterized by downplaying disagreement, withdrawing from the situation, and/or staying neutral at all costs. Answer: False Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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74) The conflict management style of accommodation involves being cooperative and unassertive. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 75) The conflict management style of competition involves being uncooperative and assertive. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 76) The conflict management style of collaboration involves being moderately cooperative and assertive. Answer: False Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 77) The conflict management style of compromise is characterized by bargaining for “acceptable” solutions where each party wins a bit and loses a bit. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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78) The avoidance and accommodation conflict management styles create lose–lose conflicts. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 79) Lose–lose conflict occurs when no one achieves their true desire and the underlying reasons for conflict remain unchanged. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 80) When conflict management results in one party achieving its desires and the other party not achieving its desires, a win–lose conflict will occur. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 81) The collaboration conflict management style creates a win–win conflict and is the most preferred conflict management conclusion. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Analysis Difficulty: Medium Test Bank

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AACSB: Analytic 82) Changing reward systems is a way of reinforcing teamwork and reducing the tendencies of team members to compete with one another. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 83) Two students are arguing about the content of their PowerPoint presentation. Their instructor reminds them the goal is to receive a high grade for their presentation, and perhaps they should focus on achieving that result. The instructor is appealing to their need to have more resources made available for them. Answer: False Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Application Difficulty: Medium AACSB: Analytic 84) A team leader had to create a “time-out” area for two battling team members. Rearranging the physical environment in their meeting room helped to manage the team conflict more effectively. Answer: True Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Application Difficulty: Medium AACSB: Analytic 85) Negotiation is the process of making joint decisions when the parties involved have similar preferences. Answer: False Test Bank

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Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 86) Substance goals are tied to the ways people work together while negotiating and how they will be able to work together again in the future. Answer: False Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 87) Substance goals concerned with negotiation processes while relationship goals are concerned with negotiation outcomes. Answer: False Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 88) Effective negotiation occurs when issues of substance are resolved and working relationships among the negotiating parties are maintained or improved. Answer: True Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 89) Quality, cost, and harmony are criteria for evaluating the effectiveness of negotiations. Test Bank

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Answer: True Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 90) The distributive negotiation approach focuses on “win–lose” claims made by each party for certain preferred results. Answer: True Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 91) The principled or integrative negotiation approach focuses on trying to achieve a “win–win” solution that considers the interests of all the negotiating parties. Answer: True Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 92) In conducting a principled negotiation, a person should separate the people from the problem; focus on interests rather than positions; generate alternatives before deciding what to do; and insist that results are based on an objective standard. Answer: True Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

Test Bank

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93) There should be no ‘losers’ in a principled negotiation, and positive relationships should be maintained in the process. Answer: True Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 94) Until the other party’s reservation point is known, and each party realizes that a positive bargaining zone exists, it is difficult to negotiate effectively. Answer: True Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 95) In a two-party negotiation, the minimum reservation point refers to the smallest outcome that one party is willing to accept, and the maximum reservation point refers to the largest outcome that the other party is prepared to eventually offer. Answer: True Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 96) The bargaining zone in a classic two-party negotiation is defined as the zone between one party’s minimum reservation point and the other party’s minimum reservation point. Answer: False Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 97) Non-rational escalation of conflict occurs when the negotiator becomes committed to previously stated demands and allows the need for “ego” and “face saving” to increase the perceived importance of satisfying those demands. Answer: True Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Application Difficulty: Medium AACSB: Analytic 98) Too much “telling” and too little “hearing” occurs when all parties involved in the negotiation fail to make themselves fully understood. Answer: True Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 99) A negotiator from a low-context culture is used to getting information through direct questions and answers. Answer: True Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 100) Arbitration involves a neutral third party who tries to improve communication between negotiating parties and keep them focused on relevant issues, while mediation involves a neutral third party who acts as a “judge” and issues a binding decision to resolve a dispute. Answer: False Test Bank

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Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 101) Arbitration usually includes a formal hearing in which the mediator listens to both sides and reviews all facets of the case before issuing a ruling. Answer: True Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 102) The process of alternative dispute resolution utilizes mediation or arbitration and does so only after direct attempts to negotiate agreements between the conflicting parties have failed. Answer: True Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Question type: Multiple Choice 103) ___ is an interpersonal process of sending and receiving symbols with messages attached to them. a) Conflict resolution b) Communication c) Teamwork d) Organization design e) Decision making Answer: b Learning Objective 18.1: Identify the elements in the communication process. Test Bank

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Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 104) Communication is the glue that binds together the four functions of planning, organizing, leading, and ___. a) administering b) controlling c) coordinating d) processing e) ordering Answer: b Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 105) Effective communication occurs when ___. a) the sender’s message is fully understood by the receiver b) minimum costs are expended in terms of resources c) the manager is connected with others d) everyone is aware of their immediate environment e) a message is supported by everyone Answer: a Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 106) Which of the following is not one of the key elements in the communication process? a) Sender b) Feedback c) Receiver Test Bank

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d) Channel e) Gatekeeper Answer: e Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 107) ___ is the capacity to attract support and help from others in order to get things done. a) Intellectual capital b) Operating capital c) Social capital d) Risk capital e) Venture capital Answer: c Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 108) Which of the following statements accurately describes communication effectiveness? a) Effective communication occurs when the sender’s intended message and the receiver’s interpreted meaning of that message are identical. b) Effective communication occurs when the receiver does exactly what the sender wants. c) Effective communication means there are no wasted words or gestures. d) Effective communication is the same as efficient communication. e) Effective communication occurs when minimal time is spent in the communication process. Answer: a Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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109) Which of the following statements accurately describes communication efficiency? a) Efficient communication occurs when the intended message of the sender and the perceived meaning of the receiver are one and the same. b) Efficient communication occurs at minimum cost in terms of resources expended. c) Efficient communication occurs in one-way, rather than two-way, communication. d) Efficient communication means that all noise has been eliminated from the communication process. e) Efficient communication is the same as effective communication. Answer: b Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 110) A manager describes how to perform a new task to an employee who then repeats the instructions accurately and completes the task flawlessly. The manager then follows the same procedure with several other employees, one at a time. This communication process is characterized as ___. a) effective and not efficient communication b) efficient and not effective communication c) neither effective nor efficient communication d) both effective and efficient communication e) a typical failure of leadership Answer: a Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 111) ___presents a message in a manner that causes the other person to support it. a) Information filtering b) Scientific management c) Ethnocentrism d) Active listening Test Bank

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e) Persuasive communication Answer: e Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 112) Kylie, a young college student, wanted a motorcycle and after much discussion Kylie’s parents were convinced the motorcycle would be good for Kylie. Next day, Kylie’s father purchased a motorcycle. Which of the following terms would best describe Kylie’s communication? a) Persuasive b) Credible c) Polycentric d) Noisy e) Efficient Answer: a Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 113) Building credibility through ___ requires knowledge about the issue in question and/or a successful prior track record at dealing with similar issues. a) task performance b) expertise c) relationships d) authority e) familiarity Answer: b Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 114) Building credibility through ___ requires having a good working relationship with the person to be persuaded. a) task performance b) expertise c) relationships d) authority e) familiarity Answer: c Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 115) ___ is that which is based on trust, respect, and integrity in the eyes of others. a) Active listening b) Scientific management c) Ethnocentrism d) Credible communication e) Information filtering Answer: d Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 116) Taylor, a new manager at APZI Inc., would like to be consistently persuasive when communicating with colleagues and team members. To build credibility, Mark must a) make sure that the rewards for compliance are clear. b) hire similar minded people. c) communicate his decision-making authority to his team. d) be knowledgeable about the issue in question. e) have team members with strong technical skills. Test Bank

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Answer: d Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 117) ___ refers to anything that interferes with the effectiveness of communication. a) Deviation b) Fluctuation c) Noise d) Obscurity e) Haphazardness Answer: c Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 118) Common sources of noise in the communication process include all of the following except a) poor choice of channels. b) feedback. c) failure to recognize non-verbal signals. d) physical distractions. e) status effects. Answer: b Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 119) Caelan has to tell all of the employees that the office will not be closing for the Christmas week this year even though this is contrary to what has been done in previous years. Caelan Test Bank

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holds a meeting to explain the change, however the employees challenge everything that is presented to them and ask multiple questions at once. At the end of the meeting it is clear that most people do not have a clear understanding about the change. Which of the following explains why the message was not understood? a) The channel was not appropriate. b) The recipients did not encode the message. c) The noise in the process interfered with the communication of the message. d) The channel was not appropriate for the delivery of this message. e) The sender did not decode the message. Answer: c Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 120) ___ is the intentional distortion of information to make it appear most favourable to the recipient. a) Communication breakdown b) Information filtering c) Persuasive communication d) Exaggerated communication e) Noise Answer: b Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 121) A(n) ___ is the pathway or medium through which a message is conveyed from sender to receiver. a) communication channel b) information filter c) communication censor d) information decoder e) information bank Test Bank

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Answer: a Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 122) In the communication process, ___ is sent through a communication channel to a ___, who then decodes or interprets its meaning. a) noise; person b) feedback; receiver c) the message; receiver d) a decision; work team e) an attribution; a leader Answer: c Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 123) Pat is a department manager for a firm that develops computer-networking packages. This morning Pat held a staff meeting with all of the department employees to inform them about some design changes. Several of the employees felt that the changes might not work however they were reluctant to bring their concerns forward during the meeting. Two of the employees however did attempt to discuss their concerns during in the meeting. They did though dilute the impact of their objections and concerns. Pat listened for a moment or two and quickly closed the meeting by saying, “I’ve been around here a long time. The changes will work. I don’t have time to discuss it. Just make the changes and get on with things.” This is an example of how ___ can become a barrier to effective communication. a) non-verbal signals b) semantic problems c) proxemics d) filtering and status effects e) physical distractions Answer: d Test Bank

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Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 124) ___ are most suitable for simple messages that are easy to convey and for those that require extensive dissemination quickly. a) Written channels b) Spoken channels c) Information filters d) Non-verbal communications e) Mixed messages Answer: a Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 125) Becoming effective in written and oral communications ___. a) requires skill b) takes practice and hard work c) is essential for managers d) all of the above e) none of the above Answer: d Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 126) Which of the following statements is true of communication channels? a) Face-to-face meetings are most acceptable for simple messages that are easy to convey. b) A simple email works best for messages that are complex and difficult to convey. Test Bank

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c) Where immediate feedback to the sender is valuable, written channels should be used. d) Spoken channels are less personal and less likely to be perceived as supportive. e) Written channels are useful when it is important to document information or directives. Answer: e Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 127) When the manager at Kwiksorb Corp., sets up a virtual meeting to send a complex message that is better delivered face-to-face, the communication process suffers from ___. a) poor proxemics b) a poor choice of communication channels c) substantive conflict d) information overload e) failure to recognize non-verbal signals Answer: b Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 128) Jean is the manager of a 250-employee division of a company. One of Jean’s responsibilities is to make sure that everyone in the division is informed about policy changes that will affect their insurance coverage and premiums as well as their pension contributions. The best way for Jean to communicate the new policy would be through a(n) ___ communication channel. a) oral b) written c) non-verbal d) oral then written e) non-verbal then oral Answer: b Learning Objective 18.1: Identify the elements in the communication process. Test Bank

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Section Reference 18.1: The Communication Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 129) Avery, a manager at a local manufacturing company, received a directive from corporate headquarters to examine possible ways for redesigning work processes to improve plant productivity. Knowing this would be a “hot button” issue with the plant employees, Avery needs to communicate this news to them as effectively as possible. Which communication approach should Avery use? a) Oral communication b) Written communication c) Non-verbal communication d) Delegate the task to a lower-level manager e) Non-verbal then written communication Answer: a Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 130) When words communicate one message while actions, body language, or appearance communicate something else it results in a(n) ___. a) information filtering b) mixed message c) persuasive communication d) prevarication e) substantive conflict Answer: b Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 131) A mixed message occurs when ___. Test Bank

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a) a person’s words communicate one message while actions, body language, or appearance communicate something else b) a person uses both written and oral communication channels at the same time c) a person gives the original message in written form and receives the feedback orally d) the person sending the message is from a different culture than the person receiving the message e) the person sending the message uses two languages Answer: e Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 132) The manager at your firm while verbally expressing a statement of probable truth simultaneously fidgets and avoids eye contact with you. This conveys a(n) ___. a) transparent communication b) mixed message c) poor oral expression d) poor choice of communication channel e) exaggerated communication Answer: b Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 133) While Lee said the terms of the agreement were understood and no further explanation was needed, at the same time Lee’s face had a quizzical look. Which of the following barriers to communication does this exemplify? a) Physical distraction b) Mixed message c) External locus of control d) Poor choice of channel e) Information filtering Test Bank

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Answer: b Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 134) Which of the following is an example of physical distractions in communication? a) Mixed messages b) Lack of privacy c) Loss of meaning through translation d) Language barrier e) Information filtering Answer: b Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 135) Telephone interruptions, drop-in visitors, and lack of privacy are examples of ___ that can interfere with the effectiveness of a communication attempt. a) status effects b) physical distractions c) filtering effects d) mixed messages e) channels Answer: b Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 136) Difficulties in communication between people from different cultures may result from the tendency to consider one’s own culture as superior to all others. This tendency is known as ___. Test Bank

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a) impression management b) the halo effect c) ethnocentrism d) culture shock e) the status effect Answer: c Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Comprehension Difficulty: Hard AACSB: Analytic 137) Cross-cultural communication skills are important and useful ___. a) only in some parts of asia b) only in cultures with languages different from one’s own c) only in cultures with religions different from one’s own d) only in eastern european nations e) at home as well as abroad Answer: e Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 138) Morgan knew the company very much wanted the merger between the company and the Europeans’ company to go forward. Morgan decided to use his “tried-and-true” tactic of being pushy to get the deal accomplished. Failure to successfully negotiate a merger would mean a demotion for Morgan. After two weeks of meetings and no progress made, Morgan couldn’t understand why the Europeans were not on board with the proposal. Why wasn’t Morgan successful in negotiating the deal? a) Morgan may have dressed inappropriately. b) The time zone differences were against Morgan. c) Morgan didn’t socialize well. d) The Europeans just didn’t want the merger. e) The approach used did not consider the differences in culture. Test Bank

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Answer: e Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 139) Charlie, a citizen of Country A, joins a firm in Country B and soon learns that a particular hand gesture commonly used at home is offensive to the natives of Country B. Despite this knowledge Charlie continues to use this gesture. This can be regarded as an example of ___. a) passive listening b) ethnocentrism c) persuasive speaking d) active listening e) polycentrism Answer: b Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Application Difficulty: Medium AACSB: Analytic 140) ___ involves being honest in sharing accurate and complete information about the organization and workplace affairs. a) Communication transparency b) Information filtering c) Ethnocentrism d) Proxemics e) Distributive negotiation Answer: a Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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141) Which of the following is an example of high communication transparency? a) When a manager who intentionally distorts information to make it appear more favourable to the employees. b) Using words to communicate one message while at the same time using gestures that communicate something else. c) Setting aside adequate time and privacy to eliminate any interruptions during a meeting. d) When a manager who openly distributes the company financial information throughout the organization e) Using electronic channels to convey complex messages. Answer: d Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Application Difficulty: Medium AACSB: Analytic 142) The term ___ describes a form of communication transparency where employees are provided with essential financial information about their companies. a) heralded management b) publicized management c) open book management d) cautious management e) provident management Answer: c Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 143) ZebraTech is an IT company that provides information to its employees about the vision and strategies of the company, its revenues and expenses, and it operational objectives and plan. on a regular basis. In this scenario, the company can be said to follow which of the following styles of management? a) Heralded management b) Publicized management c) Open book management Test Bank

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d) Cautious management e) Provident management Answer: c Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Application Difficulty: Medium AACSB: Analytic 144) Communication in contemporary organizations relies on the use of ___ such as email, voice mail, instant messaging, teleconferencing, online discussions, videoconferencing, computermediated meetings, intranets, and Web portals. a) media guides b) office tools c) information technology d) postal operations e) film industry techniques Answer: c Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 145) Which of the following statements about the electronic grapevine is/are correct? a) The electronic grapevine speeds messages and information from person to person. b) The electronic grapevine can be functional when the information is accurate and useful and dysfunctional when the information is false, distorted, or simply based on rumour. c) The electronic grapevine is now a permanent fixtures in any business setting. d) all of the above e) none of the above Answer: d Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Analysis Difficulty: Medium Test Bank

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AACSB: Analytic 146) The best advice regarding email privacy at work is to ___. a) find out the employer’s policy on personal email and follow it b) not assume that you have email privacy at work c) trust that your employer will notify you if and when your email is being monitored d) a and b e) a and c Answer: d Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 147) Ash is an executive at a consulting firm and during office hours likes to browse the Web and using social networking sites. Which of the following statements is most likely to be true in this scenario? a) Ash can continue browsing the sites because by default Ash has electronic privacy. b) There is no issue with browsing since the company cannot monitor an employee’s Internet usage. c) Continue to browse so long as the sites are not illegal. d) Continue browsing the sites if everyone else in the office is doing the same. e) Ash should find out the company’s Internet usage policy and follow it. Answer: e Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Application Difficulty: Medium AACSB: Analytic 148) ___is the process of helping the sender of a message say what they really mean. a) Communication transparency b) Information filtering c) Active listening d) Proxemics Test Bank

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e) Open book management Answer: c Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 149) Which of the following is not a guideline for the active listener? a) Try to hear exactly what is being said in the message. b) Try to identify how the speaker feels about the message content. c) Let the sender know that their feelings are being recognized. d) Ignore non-verbal cues. e) Restate what you think you are hearing. Answer: d Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 150) Akira is a very efficient manager and is very popular with team members. During any conversation with team members Akira tries to properly understand the content of the message, tries to identify their feelings, and looks for signs that can help to interpret their message. In this scenario, Akira is involved in the process of a) communication transparency. b) information filtering. c) active listening. d) proxemics. e) open book management. Answer: c Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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151) You were recently asked by one your colleagues the question, “Don’t you think politicians should be elected solely based on merits?” You respond by saying, “It seems to you that they should, I take it?” This is an example of ___. a) communication transparency b) active listening c) a mixed message d) information filtering e) communication noise Answer: b Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Application Difficulty: Medium AACSB: Analytic 152) Which of the following would most likely be the response of an active listener? a) “I don’t think you are right.” b) “You are not allowed to make such accusations.” c) “You are displeased with the management’s decision, aren’t you?” d) “May the best candidate be promoted!” e) “I’m not very sure you would be the suitable candidate.” Answer: c Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Application Difficulty: Medium AACSB: Analytic 153) Professor Wylie’s students are frustrated because they do not understand the instructions given for a large assignment the professor has assigned. Professor Wylie listens keenly to what is being expressed and is cautious not to make hasty judgments or conclusions. Professor Wylie uses ___ to improve communication between the students and him. a) interpretive feedback b) cues c) inactive listening Test Bank

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d) constructive feedback e) active listening Answer: d Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Application Difficulty: Medium AACSB: Analytic 154) The process of telling other people how you feel about something they did or said, or about the situation in general, is called ___. a) mixed messaging b) feedback c) compromising d) collaboration e) active speaking Answer: b Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 155) When ___, feedback can be listened to, accepted, and used to good advantage by the receiver. a) poorly done b) properly done c) done by team leaders d) done by functional managers e) done by top managers Answer: b Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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156) Which of the following statements correctly identifies elements of constructive feedback? a) Constructive feedback is based on trust, is general rather than specific, and is limited to what a receiver can handle. b) Constructive feedback avoids feeling, is given when a receiver is ready to accept it and is checked with others. c) Constructive feedback is given with real feeling, is general rather than specific, and is concerned with things a receiver can actually remedy. d) Constructive feedback is based on trust, is specific rather than general, and is checked with others. e) Constructive feedback avoids feeling, is specific rather than general, and is concerned with things a receiver can actually remedy. Answer: d Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 157) Which of the following is an example of an evaluative feedback? a) “You never complete your projects on time and always come to office late.” b) “You were 40 minutes late for today’s meeting and missed a lot of the context of our discussion.” c) “You missed the deadline for the first time; you need to let me know if you need help.” d) “You are working on too many projects; you should delegate some work to others.” e) “You’re coming late to meetings; you might be spreading yourself too thin and have trouble meeting your obligations.” Answer: a Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Application Difficulty: Medium AACSB: Analytic 158) Which of the following is an example of a descriptive feedback? a) “You are unreliable and always late for everything.” Test Bank

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b) “You were 20 minutes late for the training session and missed a lot of important points we discussed.” c) “You missed another deadline today.” d) “You are working on too many projects; you should delegate some work to others.” e) “You’re coming late to meetings; you might be spreading yourself too thin and have trouble meeting your obligations.” Answer: b Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Application Difficulty: Medium AACSB: Analytic 159) Which of the following guidelines should be followed while giving constructive feedback? a) Feedback should be given indirectly with the help of a middleman. b) It should be general and not specific. c) Feedback should be elaborate and long. d) Any feedback should be given on all things the receiver can or cannot be expected to do. e) Feedback should be given at a time when the receiver seems most willing to accept it. Answer: e Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 160) Which of the following is the correct sequence for the sensemaking process? a) Sensemaking, sensegiving and sensebreaking b) Sensebreaking, sensegiving and sensetaking c) Sensemaking, sensetaking and sensegiving d) Sensebreaking, sensegiving and sensemaking e) Sensemaking, sensegiving and sensetaking Answer: d Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 161) Which of the following correctly describes sensegiving. a) The process of finding plausible interpretations, communicating them effectively so that they make sense to others. b) The process of convincing others that the present situation has changed. c) The process of creating situational awareness and understanding. d) Taking action to help someone say exactly what they really mean or want to communicate. e) Being honest in sharing accurate and complete information. Answer: a Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 162) As part of the communication process, ___ refers to the use of space to convey varying intentions in terms of intimacy, openness, and status. a) attributions b) mixed messages c) non-verbal behaviours d) proxemics e) perceptual distortions Answer: d Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 163) Taylor indicates a preference for the use of interpersonal space by placing a chair in front of the desk for clients to sit in when discussing their orders. Taylor’s action is a reflection of ___. a) projection Test Bank

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b) proxemics c) sales management d) manipulative behaviour e) negotiating skill Answer: d Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Application Difficulty: Medium AACSB: Analytic 164) A company decided to improve communication among its employees by removing walls and doors and using an open floor plan. This use of space in communication is called a) communication. b) proxemics. c) capacity building. d) high richness. e) low Richness. Answer: b Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Application Difficulty: Medium AACSB: Analytic 165) ___ is a disagreement over issues of substance and/or an emotional antagonism. a) Noise b) Encounter c) Negotiation d) Eustress e) Conflict Answer: e Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy Test Bank

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AACSB: Analytic 166) Conflict that occurs because of disagreements over things such as goals, the allocation of resources, the distribution of rewards, policies and procedures, or job assignments is referred to as ___ conflict. a) substantive b) administrative c) organizational d) emotional e) confrontational Answer: a Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 167) When employees have feelings of anger, distrust, dislike, fear, and resentment toward others, ___ conflict is the likely cause. a) substantive b) administrative c) emotional d) organizational e) confrontational Answer: c Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 168) Taylor, the operations manager, and Ainsley, the human resource manager, argue over the allocation of targets, objectives, and resources among the leaders of different teams in their firm. Taylor and Ainsley are likely to be involved in a(n) ___. a) emotional conflict b) functional conflict Test Bank

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c) dysfunctional conflict d) lose–lose conflict e) substantive conflict Answer: e Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Application Difficulty: Medium AACSB: Analytic 169) The type of conflict that stimulates employees to work toward greater work efforts, cooperation, and creativity is ___ conflict. a) functional b) concentrated c) dysfunctional d) destructive e) cooperative Answer: a Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 170) Which of the following statements is true of managing conflicts? a) When managed well, conflicts can stimulate creativity. b) Conflicts always result in low performance. c) Substantive conflicts can be addressed by handling personality issues. d) Emotional conflicts do not cause difficulties in organizations. e) Too much conflict leads to groupthink. Answer: a Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic Test Bank

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171) Which of the following statements is true of conflict? a) Positive performance results from very little conflict. b) Conflicts with a medium intensity level are constructive. c) Functional conflict leads to negative performance. d) Absent of conflict leads to higher creativity. e) Dysfunctional conflict leads to positive performance. Answer: b Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 172) ___conflict harms performance, relationships, and even individual well-being. a) Dysfunctional b) Functional c) Medium d) Cooperative e) Constructive Answer: a Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 173) Dysfunctional or destructive conflict occurs when the conflict intensity level is ___. a) very low b) medium c) very high d) both a and c e) both b and c Answer: d Test Bank

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Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 174) ___ in the form of unclear job expectations and other task uncertainties increase the likelihood for people to work at cross-purposes. a) Task interdependencies b) Role ambiguities c) Competing objectives d) Structural differentiations e) Resource scarcities Answer: b Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 175) Which of the following is typically not a cause of conflict? a) Role ambiguities b) Structural differentiation c) Technological advances d) Task interdependencies e) Unresolved prior conflicts Answer: c Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 176) As a cause of conflict, ___ involve individuals or groups being dependent on what others do in order to perform well themselves. a) role ambiguities Test Bank

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b) task interdependencies c) competing objectives d) structural differentiation e) unresolved prior conflicts Answer: b Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 177) ___ result when goals are poorly set or reward systems are poorly designed, and individuals and groups come into conflict by working to one another’s disadvantage. a) Task interdependencies b) Role ambiguities c) Competing objectives d) Structural differentiations e) Resource scarcities Answer: c Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 178) ___ result in conflict when people depend on others to perform well in order to perform well themselves. a) Task interdependencies b) Role ambiguities c) Competing objectives d) Structural differentiations e) Resource scarcities Answer: a Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 179) Effective ___ eliminates the underlying substantive or emotional causes of conflict and reduces the potential for similar conflicts in the future. a) stress management b) constructive feedback c) conflict resolution d) negotiation e) decision making Answer: c Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 180) Which of the following statements is not true regarding conflict and conflict resolution? a) Conflict may remain latent in the situation if it is not resolved. b) Effective conflict resolution should eliminate the underlying cause for conflict. c) True conflict resolution removes any existing conditions that might rekindle the original conflict. d) Managers are usually unable to redirect resolution toward constructive rather than destructive ends. e) Effective conflict resolution reduces the potential for similar conflicts in the future. Answer: d Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 181) When considering styles of conflict management, ___ means being cooperative but unassertive, letting the wishes of others rule, smoothing over or overlooking differences to maintain harmony. a) accommodation Test Bank

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b) avoidance c) competition d) compromise e) collaboration Answer: a Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 182) In assessing conflict management styles, ___ refers to the desire to satisfy another party’s needs and concerns. a) assertiveness b) the best alternative to a negotiated agreement c) cooperativeness d) alternative dispute resolution e) intensity of conflict Answer: c Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 183) In assessing conflict management styles, ___ refers to the desire to satisfy one’s own needs and concerns. a) assertiveness b) the best alternative to a negotiated agreement c) cooperativeness d) alternative dispute resolution e) intensity of conflict Answer: a Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 184) The conflict management style of ___ involves being uncooperative and unassertive. This style is characterized by downplaying disagreement, withdrawing from the situation, and/or staying neutral at all costs. a) avoidance b) accommodation c) competition d) compromise e) collaboration Answer: a Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 185) Which of the following statements is true of the accommodating style of conflict management? a) It pretends that conflict doesn’t really exist. b) Everyone withdraws from the conflict and hopes it will simply go away. c) It leads to a win–win situation. d) It plays down differences and highlights areas of agreement. e) One party wins because superior skill allows his or her desires to be forced on the other. Answer: d Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 186) In the authoritative command approach of conflict management, managers ___. a) pretend that a conflict doesn’t really exist b) play down differences and highlight similarities to reduce conflict c) make each party give up something of value to the other Test Bank

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d) make the parties work through conflict differences and solving problems so everyone wins e) use force, superior skill, or domination to “win” a conflict Answer: e Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 187) Reese, a manager at Cyberdawn Inc., always looks for solutions where each party in a conflict wins equally and loses an equal amount. Reese follows the ___ approach to conflict management. a) collaboration b) avoidance c) competition d) compromise e) accommodation Answer: d Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Application Difficulty: Medium AACSB: Analytic 188) A manager who is cooperative and assertive and is trying to fully satisfy everyone’s concerns by working through their differences, is applying the ___ approach to conflict management. a) competition b) compromise c) collaboration d) avoidance e) accommodation Answer: c Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Application Test Bank

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Difficulty: Medium AACSB: Analytic 189) Suppose that a manager responds to a disagreement between subordinates by saying: “I don’t want to get in the middle of your personal disputes.” This manager is using which conflict management style? a) avoidance b) authoritative command c) accommodation d) collaboration e) unassertive Answer: a Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Application Difficulty: Medium AACSB: Analytic 190) Kenzie is being cooperative yet unassertive with the employees during a conflict situation and tries to smooth over their differences. This produces a false sense of harmony among the employees. Kenzie is using which conflict management style? a) avoidance b) competition c) accommodation d) compromise e) collaboration Answer: c Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Application Difficulty: Medium AACSB: Analytic 191) The conflict management style of ___ involves being uncooperative and assertive. This style is characterized by working against the wishes of the other party, engaging in win–lose competition, and/or forcing through the exercise of authority. Test Bank

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a) avoidance b) accommodation c) competition d) compromise e) collaboration Answer: c Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 192) Whenever being involved in a disagreement, a team leader tries to partially satisfy the concerns of both sides by and appropriate trade-offs. Which conflict management style is being used? a) avoidance b) competition c) accommodation d) compromise e) collaboration Answer: d Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Application Difficulty: Medium AACSB: Analytic 193) Oblio emphasizes cooperation and assertiveness in dealing with conflict situations in the department. Differences are worked through together so that everybody’s concerns are addressed and everyone gains something in the end. Oblio uses which conflict management style? a) competition b) avoidance c) collaboration d) accommodation e) compromise Answer: c Test Bank

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Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Application Difficulty: Medium AACSB: Analytic 194) ___ conflict occurs when no one achieves their true desire and the underlying reasons for conflict remain unaffected. a) Lose–lose b) Win–lose c) Win–win d) Satisficing e) Optimizing Answer: a Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 195) When conflict management results in one party achieving its desires and the other party not achieving its desires, a ___ conflict will occur. a) win–win b) win–lose c) satisficing d) lose–lose e) neutral Answer: b Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 196) Which of the following conflict management approaches often create lose–lose conflict? a) competing and compromising Test Bank

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b) avoiding and accommodating c) competing and collaborating d) authoritative command and compromising e) collaborating and compromising Answer: b Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 197) ___ and ___styles tend to create win–lose conflict where each party strives to gain at the other’s expense. a) Withdrawing; collaborating b) Avoiding; accommodating c) Smoothing; collaborating d) Competing; compromising e) Collaborating; accommodating Answer: d Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 198) When personalities and emotions prove irreconcilable, the ___ approach to conflict management is often helpful. a) avoidance b) structural c) collaboration d) accommodation e) smoothing Answer: b Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Comprehension Test Bank

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Difficulty: Easy AACSB: Analytic 199) What is the structural solution to managing conflict when people just can’t seem to appreciate one another’s points of view? a) Appeal to higher-level goals b) Make more resources available to everyone c) Alter the physical environment d) Change the reward systems e) Use integrating devices Answer: a Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 200) Two members of a team were driving the team leader to distraction, to the point where each of the two problem team members were placed in separate offices to complete their project tasks separately. The team leader stayed with the rest of the team to work on the rest of the project tasks. Which approach to conflict management did the team leader employ with the two problem team members? a) Made more resources available. b) Changed the people on the team. c) Rearranged the workspace. d) Set up a cross-functional team. e) Changed the pay bonuses for the team. Answer: c Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Application Difficulty: Medium AACSB: Analytic 201) Tee and Jay were doing all of the work on their group project while the other two group members hadn’t contributed anything to the project. Their professor required all group project members to fill out project time logs to show how much time they had put into the group project. Test Bank

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The professor would use the time logs to determine how the final project grade would be distributed to each group member. Consequently, the absent two members of Tee and Jay’s project group received a mark of zero on their group project. The professor used which approach to manage the conflict? a) Gave additional resources to the team. b) Ignored the problem entirely. c) Adjusted the reward system with the use of the time logs. d) Placed the absent team members on a different team. e) Appealed to the absent students to get to work on the project. Answer: c Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Application Difficulty: Medium AACSB: Analytic 202) ___ is the process of making joint decisions when the parties involved have different preferences. a) Recommendation b) Negotiation c) Conferencing d) Proposition e) Integration Answer: b Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 203) Substance goals are ___. a) not concerned with negotiation outcomes b) tied to content issues c) concerned with negotiation processes d) tied to the way people work together while negotiating e) tied to employees performance issues in the future Test Bank

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Answer: b Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 204) ___ are concerned with processes and the way people work together during negotiation and how they (and any constituencies they represent) will be able to work together again in the future. a) Process goals b) Relationship goals c) Future goals d) Human resource goals e) Harmony goals Answer: b Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 205) Which of the following is one of the criteria of an effective negotiation? a) Harmony b) Timeliness c) Authority d) Validity e) Credibility Answer: a Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 206) The effectiveness of negotiations can be evaluated with ___. Test Bank

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a) quality b) cost c) harmony d) a and b e) a, b, and c Answer: e Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 207) The ___ negotiation approach focuses on “win–lose” claims made by each party for certain preferred results. a) substantive b) integrative c) principled d) distributive e) desirable Answer: d Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 208) The ___ negotiation approach focuses on trying to achieve a “win–win” solution that considers the interests of all the negotiating parties. a) principled or integrative b) unilateral c) collaborative d) distributive e) desirable Answer: a Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Test Bank

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Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 209) The goal of ___ is to achieve a final agreement based on the merits of each party’s claims. a) accommodating negotiation b) distributive negotiation c) principled negotiation d) authoritative command negotiation e) compromise negotiation Answer: c Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 210) Which of the following is not one of the rules of principled negotiation? a) Focus on interests, not positions. b) Generate only a few alternatives before a decision is made. c) Insist that results are based on an objective standard. d) Separate the people from the problem. e) Generate many alternatives before deciding what to do. Answer: b Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 211) The employees of a garment factory and its top managers are involved in a negotiation about employee wages. Each side thoroughly examines the other’s claims and come to a mutually beneficial arrangement. As per this arrangement, the employees are given a salary increase of 30%, while they increase their productivity by 10% thus benefiting the factory. Which type of negotiation does this scenario demonstrate. Test Bank

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a) Accommodating negotiation b) Distributive negotiation c) Principled negotiation d) Authoritative command negotiation e) Compromise negotiation Answer: c Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Application Difficulty: Medium AACSB: Analytic 212) Which of the following is one of the pathways or rules for gaining integrated agreements as set forth by Roger Fisher and William Ury in their book Getting to Yes? a) A win–lose orientation for certain preferred outcomes should be used. b) The problem and the people should not be separated. c) Relationships should get sacrificed to facilitate negotiations. d) Results should be based on some objective standard to gain integrated agreements. e) Focus should be on positions, not on interests to gain integrated agreements. Answer: d Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 213) The ___ in a classic two-party negotiation is defined as the zone between one party’s minimum reservation point and the other party’s maximum reservation point. a) mediation gap b) bargaining zone c) arbitration area d) negotiating screen e) indifference zone Answer: b Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 214) ___ in a negotiation is defined as the space between one party’s minimum reservation point and the other party’s maximum reservation point. a) Proxemics b) The arena of indifference c) Glass ceiling d) Mixed message space e) The bargaining zone Answer: e Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 215) In a two-party negotiation, the ___ refers to the smallest outcome that one party is willing to accept and the ___ refers to the largest outcome that the other party is prepared to eventually offer. a) minimum reservation point; maximum reservation point b) maximum reservation point; minimum reservation point c) adequate reservation point; maximum reservation point d) minimum reservation point; adequate reservation point e) minimum reservation point; reservation break point Answer: d Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 216) Which of the following is not one of the common negotiation pitfalls? a) Too much mediation b) Falling prey to the myth of the “fixed pie” Test Bank

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c) Non-rational escalation of conflict d) Overconfidence and ignoring others’ needs e) Too much “telling” and too little “hearing” Answer: a Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 217) ___ occurs when the negotiator becomes committed to previously stated demands and allows needs for “ego” and “face saving” to increase the perceived importance of satisfying those demands. a) Too much mediation b) Falling prey to the myth of the “fixed pie” c) Non-rational escalation of conflict d) Overconfidence and ignoring others’ needs e) Too much “telling” and too little “hearing” Answer: c Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 218) ___ involves acting on the distributive assumption that in order for one party to gain, the other party must lose. a) Too much mediation b) Falling prey to the myth of the “fixed pie” c) Non-rational escalation of conflict d) Overconfidence and ignoring others’ needs e) Too much “telling” and too little “hearing” Answer: b Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Test Bank

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Difficulty: Easy AACSB: Analytic 219) The myth of the “fixed pie” in negotiations refers to the ___. a) overconfidence of a party by ignoring the other party’s needs b) assumption that in order for you to gain, the other person must give something up c) error that occurs when parties don’t really make themselves understood to each other d) error that occurs when parties fail to listen well enough to understand what each other is saying e) error that occurs when a negotiator is too quick to assume that he or she understands well the negotiator from a different culture Answer: b Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 220) During a negotiation session Reese thought, “This doesn’t seem right. If Avery is getting so much out of it, then surely I must be losing something.” Which of the following common negotiation pitfalls is illustrated in this statement? a) non-rational escalation of conflict b) overconfidence c) premature cultural comfort d) the myth of the “fixed pie” e) trap of ethical misconduct Answer: d Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Application Difficulty: Medium AACSB: Analytic 221) The Perfect Pie Co. was negotiating salary and benefits with a new employee, who wanted three weeks annual vacation and a salary significantly higher than what was earned from the previous employer. The owner of The Perfect Pie Co. was unwilling to give on the salary point as he had to stay within budget. The owner did however, propose that in lieu of the salary Test Bank

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demand, extended medical benefits and free pies could be offered. The employee agreed to these terms. Which negotiation pitfall did Herbert avoid? a) Considering the employee’s needs b) The trap of ethical misconduct c) The myth of the “fixed pie” d) The owner is a low-context employer in a high-context world e) The myth of the “perfect pie” Answer: c Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Application Difficulty: Medium AACSB: Analytic 222) Which of the following statements is true of the role of culture in negotiations? a) Negotiators from a high-context culture are used to getting information through direct questions and answers. b) Negotiators from a low-context culture tend to communicate indirectly. c) Negotiators from a low-context culture tend to use non-declarative language. d) Negotiators from a low-context culture tend to use non-verbal signals. e) Negotiators from a high-context culture avoid hard-and-fast position statements. Answer: e Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 223) ___ involves a neutral third party who tries to improve communication between negotiating parties and keep them focused on relevant issues. a) Collective bargaining b) Mediation c) Avoidance d) Bargaining e) Structural negotiation Answer: b Test Bank

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Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 224) A(n) ___ is a neutral third party who issues a binding decision to resolve a dispute. a) mediator b) bargainer c) arbitrator d) avoider e) accommodator Answer: c Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 225) The process of ___ utilizes mediation or arbitration and does so only after direct attempts to negotiate agreements between the conflicting parties have failed. a) bargaining b) integrative negotiation c) structural negotiation d) collective bargaining e) alternative dispute resolution Answer: e Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 226) When negotiations between two parties have failed, the process of ___ may use a (n) ___, to try to come to an agreement between the two parties. Test Bank

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a) bargaining; ombudsperson b) integrative negotiation; arbitrator c) arbitration; arbitrator d) disputing; negotiator e) alternative dispute resolution; ombudsperson Answer: e Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 227) A designated ___ listens to complaints and disputes, and often plays a key role in the alternative dispute resolution process. a) compromiser b) bargainer c) ombudsperson d) advocate e) accommodator Answer: c Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 228) Managers may choose different integrative devices for resolving conflicts between individuals or groups. Which of the following is not one of these integrative devices? a) Using liaison personnel, special task forces, cross-functional teams, or a matrix organization to change interaction patterns and assist in conflict management. b) Changing reward systems to reduce competition among individuals and groups for rewards. c) Changing the people by replacing or transferring one or more of the conflicting parties. d) Policies and procedures may be used to direct behaviour in appropriate ways. e) Training in interpersonal skills can help prepare people to work more effectively in conflict situations. Answer: c Test Bank

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Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Syntheses Difficulty: Hard AACSB: Analytic Question type: Essay 229) Describe persuasive and credible communication. Illustrate how you can build credibility in communication through expertise and relationships. Answer: Persuasive communication results in a recipient agreeing with or supporting the message being presented. Managers, for example, get things done through relationships with peers, teammates, co-workers, and bosses. Their success is often due to more convincing than to giving orders. Credible communication is that which is based on trust, respect, and integrity in the eyes of others. Managers must build credibility for persuasive communication through expertise and relationships. To build credibility through expertise, you must be knowledgeable about the issue in question or have a successful track record in dealing with similar issues in the past. In a hiring situation where you are trying to persuade team members to select candidate A rather than B, for example, you must be able to defend your reasons. And it will always be better if your past recommendations turned out to be good ones. To build credibility through relationships, you must have a good working relationship with the person to be persuaded. And it is always easier to get someone to do what you want if that person likes you. In a hiring situation where you want to persuade your boss to provide a special bonus package to attract top job candidates, for example, having a good relationship with your boss can add credibility to your request. Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Analysis Difficulty: Medium AACSB: Reflective Thinking 230) Explain why understanding the communication process and having communication skills are important for career success. Answer: Understanding the communication process and having communication skills are important for managerial success because a significant portion of managers experience at least some difficulty in dealing with communications and interpersonal relations. The ability to communicate well, both orally and in writing is a critical leadership skill. Communication is Test Bank

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essential for establishing and maintaining interpersonal relationships, listening to others, gaining information, handling conflict, negotiating successfully, and leading successfully Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 231) List and describe the major barriers to effective communication? Answer: The major barriers to effective communication include: a poor choice of channels, poor written or oral expression; failure to recognize non-verbal signals; physical distractions; and status effects. Written channels are acceptable for simple and easy-to-convey messages, for those that require extensive dissemination quickly, and for conveying formal policy or authoritative directives. Oral channels work best for complex and difficult-to-convey messages. Oral channels also work well where immediate feedback to the sender is valuable. Finally, oral channels can create a supportive¾even inspirational¾emotional climate. Communication¾either written or oral¾will be effective only to the extent that the sender expresses a message in a way that can be clearly understood by the receiver. In non-verbal communication, a mixed message occurs when a person’s words communicate one message while his/her actions, body language, appearance, or situational use of interpersonal space communicate something else. Physical distractions such as interruptions from telephone calls, drop-in visitors, a lack of privacy, etc. can interfere with the effectiveness of a communication attempt. Status effects involve noise that occurs when an organization’s hierarchy of authority creates a barrier to effective communications. Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 232) Describe the different sources of noise that interfere with the effectiveness of the communication process. What actions can be taken to mitigate the effects of each of the sources of noise? Answer: Common sources of noise include information filtering, poor choice of channels, poor written or oral expression, failures to recognize non-verbal signals, and physical distractions. 1. Information filtering: It is the intentional distortion of information to make it appear most favourable to the recipient. The problem with information filtering is someone telling the boss what they think he or she wants to hear. Whether the reason is a fear of retribution for bringing bad news, unwillingness to identify personal mistakes, or just a general desire to please, the end result is the same. The higher-level gets biased and inaccurate Test Bank

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information from below and ends up making bad decisions. To mitigate: ask for clarification and if appropriate evidentiary support. Poor choice of channels: A communication channel is the pathway or medium through which a message is conveyed from sender to receiver. Good communicators choose the right channel, or combination of channels, to accomplish their intended purpose. Written channels—paper or electronic—are most acceptable for simple messages that are easy to convey and for those that require extensive dissemination quickly. They are also important as documentation when formal policies or directives are being conveyed. Spoken channels such as face-to-face or virtual meetings work best for messages that are complex and difficult to convey and where immediate feedback to the sender is valuable. They are more personal and more likely to be perceived as supportive or even inspirational. To mitigate: ask the receiver what form of communication they are comfortable with. Poor written or oral expression: Communication will only be effective when the sender expresses the message in a way that is clearly understood by the receiver. Words must be well chosen and properly used, something we all too often fail at. To mitigate: Ask the reader to perhaps describe in their own words what the message is saying to them. Failure to recognize non-verbal signals: Non-verbal communication takes place through gestures, facial expressions, body posture, eye contact, and the use of interpersonal space. Mixed message results when words communicate one message while actions, body language, or appearance communicate something else. To mitigate: address the nonverbal communication and ask if there are any misunderstandings or questions. Physical distractions: Any number of physical distractions can interfere with communication effectiveness. Some of these distractions include telephone interruptions, drop-in visitors, and lack of privacy. To mitigate: keep your office door closed and turn the telephone to “do not disturb” and turn off the computer.

Note that student examples of mitigate with vary. Learning Objective 18.1: Identify the elements in the communication process. Section Reference 18.1: The Communication Process Bloom’s: Synthesis Difficulty: Hard AACSB: Reflective Thinking 233) Explain how active listening and constructive feedback skills can help people to become more effective members of teams. Answer: To be effective team members, people must be able to interact with other individuals in a constructive fashion. Team members must be able to address problems and deficiencies within the team as well as be able to capitalize on the willingness and abilities of the team members to collectively pursue their tasks. The potential for dealing effectively with both the “positive” and the “negative” aspects of interpersonal relations is enhanced through team members’ development of their skills at listening actively and providing constructive feedback. Test Bank

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Learning Objective 18.2: Describe ways to improve the effectiveness of communication. Section Reference 18.2: Improving Collaboration through Communication Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 234) List and describe the different causes of conflict. Answer: A number of things can cause or set the stage for conflict. Role ambiguities in the form of unclear job expectations and other task uncertainties increase the likelihood for people to work at cross-purposes. Resource scarcities cause conflict when people have to share or compete for them. Task interdependencies breed conflict when people depend on others to perform well in order to perform well themselves. Competing objectives are also opportunities for conflict. When goals are poorly set or reward systems are poorly designed, individuals and groups may come into conflict by working to one another’s disadvantage. Structural differentiation breeds conflict. Differences in organization structures and in the characteristics of the people staffing them may foster conflict because of incompatible approaches toward work. And, unresolved prior conflicts tend to erupt in later conflicts. Unless a conflict is fully resolved, it may remain latent only to emerge again in the future. Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 235) Conflicts are often inevitable in the business world. Explain the five different conflict management styles and their potential implications for actually resolving conflict situations. Answer: People’s conflict management styles reflect different combinations of cooperative and assertive behaviour. The five styles of conflict management that result from different combinations of cooperativeness and assertiveness are the following: • Avoidance –– being uncooperative and unassertive; downplaying disagreement, withdrawing from the situation, and/or staying neutral at all costs. • Accommodation –– being cooperative but unassertive; letting the other party’s wishes rule; smoothing over or overlooking differences to maintain harmony. • Competition –– being uncooperative but assertive; working against the wishes of the other party, engaging in win–lose competition, and/or forcing through the exercise of authority. • Compromise –– being moderately cooperative and assertive; bargaining for “acceptable” solutions where each party wins a bit and loses a bit. • Collaboration –– being both cooperative and assertive; trying to satisfy everyone’s concerns fully by working through differences, finding and solving problems so everyone gains. Test Bank

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The implications for actually resolving conflicts may be viewed in the context of lose–lose conflict, win–lose conflict, and win–win conflict. Lose–lose conflict occurs when no one achieves his or her true desire and the underlying reasons for conflict remain unaffected. This is common when conflict is managed by avoidance or accommodation. Win–lose conflict occurs when each party strives to gain at the other’s expense. This occurs with competition and compromise. Win–win conflict occurs when issues are resolved to the mutual benefit of all conflicting parties. Win–win conflict occurs with collaboration. Learning Objective 18.3: Discuss how conflict can be functional and managed successfully. Section Reference 18.3: Managing Conflict Bloom’s: Synthesis Difficulty: Hard AACSB: Analytic 236) Differentiate between distributive and principled negotiation. List four rules of principled negotiation. Answer: In distributive negotiation each party makes claims for certain preferred outcomes. This emphasis on substance can become self-centred and competitive, with each party thinking the only way for them to gain is for the other to lose. Relationships often get sacrificed as process breaks down in these win–lose conditions. In principled negotiation, sometimes called integrative negotiation, the orientation is win–win. The goal is to achieve a final agreement based on the merits of each party’s claims. No one should lose in a principled negotiation, and positive relationships should be maintained in the process. Four pathways or rules for gaining such integrated agreements are: 1. Separate the people from the problem. 2. Focus on interests, not on positions. 3. Generate many alternatives before deciding what to do. 4. Insist that results be based on some objective standard. Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 237) Why are negotiating skills useful for managers? What might a manager do to become an effective negotiator? Answer: Managers will inevitably be in positions where there are disagreements about courses of action to pursue or differences of opinion about what results are desired. In these types of situations, negotiation comes into play. In order to be effective in dealing with such situations, managers need to be effective negotiators. Successful negotiation occurs when issues of Test Bank

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substance (i.e., the “content” issues) are resolved and working relationships among the negotiating parties are maintained or even improved in the process. A manager can become a skilled or effective negotiator by learning to follow the rules of principled negotiation, which include the following: separate the people from the problem; focus on interests, not on positions; generate many alternatives before deciding what to do; and insist that results are based on some objective standard. A skilled negotiator also recognizes and avoids the following common negotiation pitfalls: falling prey to the myth of the “fixed pie”; nonrational escalation of conflict; overconfidence and ignoring others’ needs; and too much telling and too little hearing. Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Section Reference 18.4: Managing Negotiation Bloom’s: Application Difficulty: Medium AACSB: Reflective Thinking 238) List and describe the various pitfalls in negotiation. Answer: The negotiation process is admittedly complex, and negotiators must guard against common pitfalls. The first is the myth of the “fixed pie.” This involves acting on the distributive win–lose assumption that in order for you to gain the other person must give something up. This fails to recognize the integrative assumption that the “pie” can sometimes be expanded or utilized to everyone’s advantage. A second negotiation error is non-rational escalation of conflict. The negotiator gets locked into previously stated “demands” and allows personal needs for “ego” and “saving face” to inflate the perceived importance of satisfying them. A third negotiating error is overconfidence and ignoring the other’s needs. The negotiator becomes overconfident, believes his or her position is the only correct one, and fails to consider the needs of the other party. The fourth error is too much “telling” and too little “hearing.” The “telling” error occurs when parties to a negotiation don’t really make themselves understood to each other. The “hearing” error occurs when they fail to listen well enough to understand what each other is saying. Another potential negotiation pitfall in our age of globalization is premature cultural comfort. This occurs when a negotiator is too quick to assume that he or she understands the intentions, positions, and meanings of a negotiator from a different culture. A negotiator from a low-context culture, for example, is used to getting information through direct questions and answers. But this style might have difficulties when dealing with a negotiator from a highcontext culture where the tendency is to communicate indirectly, use non-declarative language and non-verbal signals, and avoid hard-and-fast position statements. It is also important to avoid the trap of ethical misconduct. The motivation to negotiate unethically sometimes arises from pure greed and undue emphasis on the profit motive. This may be experienced as a desire to “get just a bit more” or to “get as much as you can” from a negotiation. The motivation to behave unethically may also result from a sense of competition. This is a desire to “win” a negotiation just for the sake of winning it, or because of the misguided belief that someone else must “lose” in order for you to gain. Learning Objective 18.4: Explain ways to negotiate successfully and avoid negotiation pitfalls. Test Bank

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Section Reference 18.4: Managing Negotiation Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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APPENDIX A OPERATIONS AND SERVICES MANAGEMENT Question type: True/False 1) Today’s managers are learning to operate in a world that places a premium on productivity, technology utilization, quality, customer services, and speed. Answer: True Learning Objective: Introduction Section Reference: Quick Start Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 2) Managing productive systems that transform resources into finished products, goods, and services for customers is called operations management. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 3) Only product manufacturers need to concern themselves with the essentials of operations management. Answer: False Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

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4) Typical operations management decisions include resource acquisition, inventories, facilities, and product quality. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 5) Productivity is the quantitative measure of the efficiency with which inputs are transformed into outputs. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 6) “Productivity” and “competitive advantage” are core issues in operations and services management. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 7) The productivity equation is Productivity = Output x Input. Answer: False Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 8) Productivity obstacles include unclear objectives and priorities, as well as procrastination and poor communication. Test Bank

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Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 9) Competitive advantage is the ability to outperform one’s competitors. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 10) Competitive advantage drivers include customer service, speed to market and quality. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 11) Operating efficiencies that increase productivity are a way to increase competitive advantage. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 12) Competitive advantage is the ability to consistently do something of equal value to your competitor that cannot be changed quickly. Test Bank

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Answer: False Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 13) Technology is the combination of knowledge, skills, equipment, and work methods used to transform resource inputs into organizational outputs and is at the core of any transformation process. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 14) A key element of productivity is the availability of appropriate technology. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 15) In small-batch production, a high level of worker skill is unnecessary. Answer: False Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic

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16) Couture fashion, designer jeans and artisanal bake shops are examples of small-batch production. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Application Difficulty: Medium AACSB: Analytic 17) Workers are highly dependent upon one another in a mass production environment as the product passes from stage to stage until completion. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 18) The manufacture of canned foods is an example of mass production. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Application Difficulty: Medium AACSB: Analytic 19) In continuous-process production, automation is a requirement as raw materials are continuously transformed by an automated system. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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20) Oil refineries use the continuous-process production method to create petroleum products. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Application Difficulty: Medium AACSB: Analytic 21) Continuous-process production environments are equipment intensive, and can be operated by a relatively small labour force. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 22) Robotics is one trend in manufacturing technology where computer-controlled machines perform physically repetitive work with consistency and efficiency. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 23) The growing trend of flexible manufacturing systems, with the goals of combining flexibility with efficiency allows automated operations to shift from one task or product type to another quickly. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Analysis Difficulty: Medium Test Bank

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AACSB: Analytic 24) Mass customization, as a result of flexible manufacturing systems, provides efficient mass production of products meeting specific customer requirements. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 25) Cellular layouts place machines that do different work together so that movement of materials from one to another is as efficient as possible. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 26) Cellular layouts require a high level of coordination and management to operate at high efficiency. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 27) Computer-integrated manufacturing drives product designs, process plans, and manufacturing from a common computer platform. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Test Bank

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Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 28) Lean production is the process of continuously innovating and employing best practices to increase production efficiencies, however lean production is not possible in small-batch manufacturing settings. Answer: False Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 29) The goal of design for disassembly is to design and manufacture products in ways that consider how their component parts will be recycled at the end of their lives. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 30) Remanufacturing, as a trend in manufacturing technology, takes things apart and rebuilds them as products to be used again. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 31) Intensive technology focuses on the efforts and talents of many people to serve clients. Answer: True Test Bank

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Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 32) Mediating technology links together people in a beneficial exchange of values. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 33) The real estate industry is an example of an industry which is based primarily on mediating technology. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Application Difficulty: Medium AACSB: Analytic 34) In long-linked technology, where technology processes must have interdependent tasks in order to be effective, a client moves from point to point during service delivery. Answer: True Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 35) The automobile industry is an example of the use of long-linked technology. Answer: True Test Bank

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Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Application Difficulty: Hard AACSB: Analytic 36) Resources and materials flow in → materials received and organized for use → people and technology create products → finished products distributed → customers served is an illustration of a value chain. Answer: True Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 37) Value chain management attempts to manage each step of the input-through-output process for maximum efficiency and effectiveness. Answer: True Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 38) Primary activities in the value chain include procurement, technology development and infrastructure maintenance. Answer: False Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 39) Value creation is the end result of a task or activity that is worth more in terms of eventually delivering a product or service with higher customer appeal than was the case in the beginning. Test Bank

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Answer: True Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 40) Restaurant owners use value chain analysis when checking the logistics involved with having all the required ingredients for their chefs. Answer: True Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Application Difficulty: Medium AACSB: Analytic 41) The goals of supply chain management are to achieve efficiency in all aspects of the supply chain while ensuring on-time availability of quality resources and products. Answer: True Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 42) Some of the areas linked in supply chain management include purchasing, manufacturing, transportation, and distribution. Answer: True Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

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43) The coordination and centralization of purchasing within a company is done to achieve supply chain management efficiencies. Answer: True Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 44) The purpose of inventory management is to reduce all inventory related costs while also improving productivity. Answer: True Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 45) The economic order quantity (EOQ) inventory model orders inventory whenever the inventory level falls to a predetermined point. Answer: True Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 46) The just-in-time (JIT) inventory model minimizes inventory by dispensing materials to workstations “just in time” to be used. Answer: True Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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47) The break-even point is where revenues equal total costs. Answer: True Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 48) Break-even analysis calculates the point at which revenues cover costs under different “what-if” conditions. Answer: True Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 49) The equation to find the break-even point is Fixed Costs ÷ (Price – Variable Costs). Answer: True Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 50) Venture Ltd. has total fixed costs of $22,000. Each unit of their product sells for $410, with variable costs of $125. The break-even point for Venture Ltd. is 192 units. Answer: True Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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51) According to the Harvard Business review, American business leaders rank customer service and product quality as the first and second most important goals for organizational success. Answer: True Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 52) According to Bill Gates, you really can’t learn much from unhappy customers. Answer: False Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 53) Customer Relationship Management (CRM) strategically tries to build lasting relationships with customers by establishing and maintaining high standards of customer service. Answer: True Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 54) Customer Relationship Management (CRM) goes back to old technologies to enhance customer service since most customers have had enough of new technologies and the problems associated with them. Answer: False Test Bank

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Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 55) Buying groceries for dinner is an example of an external customer purchase process. Answer: True Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Application Difficulty: Medium AACSB: Analytic 56) Internal customers are those individuals or groups found within the organization who use or depend on one another’s work in order to do their own job well. Answer: True Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 57) Getting the Facilities Department to fix the malfunctioning sink in the washroom is an example of an external customer process. Answer: False Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Application Difficulty: Medium AACSB: Analytic

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58) Total quality management is managing with an organization-wide commitment to continuous improvement, product quality, and customer needs. Answer: True Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 59) Continuous improvement is always looking for new ways to improve on current performance, applies throughout the value chain and is a crucial component to maintaining a competitive advantage. Answer: True Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 60) ISO certification requires conformance with a rigorous set of international quality standards and is more concerned with how consistently a process is performed, rather than how well the task is performed. Answer: True Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 61) Quality control checks processes, materials, products, and services to ensure that they meet the standards the company wishes to achieve. Answer: True Test Bank

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Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 62) Statistical quality control uses rigorous statistical analysis for checking processes, materials, products, and services to ensure they meet high standards. Answer: True Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 63) A control chart is a graphical quality control representation that allows an organization to detect any trends or exceptions to quality standards. Answer: True Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 64) Six Sigma is a quality standard of 3.4 defects less per million products or services delivered. Answer: True Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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65) Social media has initiated significant changes to how companies approach service and product quality. Answer: True Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 66) Process reengineering analyzes work processes systematically to design new and better ones. Answer: True Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 67) A work process is a related group of tasks that together create value for the customer. Answer: True Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 68) Workflow is the movement of work from one point to another in a system that do not all need to be completed, nor do they need to be completed in any given order to achieve desired results. Answer: False Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Analysis Difficulty: Medium AACSB: Analytic Test Bank

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69) The four key terms in Hammer’s definition of “work process” are “group,” “together,” “result,” and “customer.” Answer: True Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 70) Process value analysis identifies and evaluates core processes for their performance contributions. Answer: True Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 71) In a process value analysis, only those steps in the workflow found within the core processes are considered. Answer: False Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Comprehension Difficulty: Easy AACSB: Analytic 72) The essence of process reengineering is to locate control for processes with an identifiable group of people, and to focus each person and the entire system on meeting customer needs. Answer: True Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Analysis Test Bank

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Difficulty: Medium AACSB: Analytic 73) Process reengineering tries to eliminate duplication of work and systems bottlenecks to reduce costs, increase efficiency, and build capacity for change. Answer: True Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 74) Process driven organizations focus too much on process and not enough on the customer. Answer: False Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic Question type: Multiple Choice 75) Typical operations management decisions address all of the following except a) resource acquisition. b) inventories. c) facilities. d) workflows. e) executive compensation. Answer: e Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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76) ___ refers to the quantity and quality of work performance, with resource utilization considered. a) Effectiveness b) Efficiency c) Profitability d) Productivity e) Asset management Answer: d Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 77) Which of the following is the correct equation for Productivity measurement? a) Productivity = Output - Input b) Productivity = Output x Input c) Productivity = Output + Input d) Productivity = Output ÷ Input e) Productivity - Output = Input Answer: d Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 78) Acme Manufacturing produces 1,250 units in an 8-hour shift. Each shift is made up of 4 employees. What is the productivity for an 8-hour shift? a) 39.06 b) 156.25 c) 1,250 d) 1,282 e) 10,000 Answer: a Test Bank

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Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Application Difficulty: Medium AACSB: Analytic 79) An organization establishes a ___ when it has a core competency that sets it apart from its competitors and gives it an advantage over them in the marketplace. a) core advantage b) market advantage c) competitive advantage d) competency advantage e) management advantage Answer: c Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 80) Organizations can create a ___ by utilizing a ___ that clearly sets it apart from its competitors and gives it an advantage over them in the marketplace. a) competitive advantage; core competency b) core competency; competitive advantage c) competitive advantage; specific environment d) general environment; specific environment e) core advantage; competitive competency Answer: a Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 81) ___ is especially important in the demanding global economy because nowhere in the world can managers rest on past successes and ignore what others are doing, either at home or abroad. Test Bank

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a) Core advantage b) Market advantage c) Strategic advantage d) Competitive advantage e) Management advantage Answer: d Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 82) The cornerstone of achieving competitive advantage is the ability to _______. a) sidestep government regulations b) consistently do something of high value which one’s competitors cannot replicate quickly or do as well c) drive the competition out of business and to make extraordinarily high profits d) establish a monopolistic market position e) dictate consumer needs and preferences Answer: b Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 83) Artisanal Breads is a local operation that has succeeded over the years because it is consistent, reasonably priced, fast, and the product tastes great, which has allowed the company to consistently outshine its competitors. This is an example of _____________. a) high production b) major operation technologies c) excellent service technology d) competitive advantage e) excellent customer service Answer: d Test Bank

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Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Application Difficulty: Medium AACSB: Analytic 84) Technology is the combination of ___ used to transform resource inputs into organizational outputs. a) strategy and environment b) tools and human resources c) knowledge, skills, equipment, computers, and work methods d) communication and decision-making methods e) people, strategy, and culture Answer: c Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 85) Sequel Lifestyle Hotels doesn’t use a customer call centre, resulting in an annual savings of $150,000. Instead the company encourages guests to make their own bookings online or to directly email employees. Sequel Lifestyle Hotels accomplishes the above activity by embracing ___. a) work processes b) workflow c) technology d) production e) customer satisfaction Answer: c Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Application Difficulty: Medium AACSB: Analytic

Test Bank

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86) An organization that manufactures a variety of products crafted to fit customer specifications is using ___ technology. a) continuous-process production b) mediating c) intensive d) craft shop e) small-batch Answer: e Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 87) Martha’s Custom Muffins would which type of technology in their bakery? a) continuous-process production b) mediating c) intensive d) craft shop e) small batch Answer: e Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Application Difficulty: Medium AACSB: Analytic 88) Schleese Saddlery Service makes customized saddles designed to fit a particular rider and horse. What type of manufacturing technology does Schleese Saddler Service adapt? a) mass production b) small-batch production c) cellular layouts d) robotics e) flexible manufacturing Answer: b Test Bank

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Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Application Difficulty: Medium AACSB: Analytic 89) An organization that produces large numbers of uniform products with an assembly-line system is using ___ technology. a) continuous-process production b) mass production c) intensive d) industrial linkage e) long-linked Answer: b Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 90) An organization that produces a few products by continuously feeding raw materials through a highly-automated production system with largely computerized controls is using ___ technology. a) continuous-process production b) mass production c) intensive d) supplier-linked e) long-linked Answer: a Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 91) A cement production plant, operating 24/7, with three shifts is an example of which technology? Test Bank

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a) continuous-process production b) mass production c) intensive d) supplier-linked e) long-linked Answer: a Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Application Difficulty: Medium AACSB: Analytic 92) Chemical plants and oil refineries are both examples of ___. There are no starting and stopping points. Automated machines control the process and outcomes are predictable. a) small-batch production b) robotics c) cellular layouts d) continuous-process production e) mass production Answer: d Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Application Difficulty: Medium AACSB: Analytic 93) Which of the following provides a correct match of a work activity and the underlying technology? a) Automobile assembly at General Motors – small-batch production b) Automated chemical plants – continuous-process production c) Custom furniture restoration – mass production d) Oil refineries – mass production e) Steel mills – small-batch production Answer: b Learning Objective A.1: Identify the essentials of operations and services management. Test Bank

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Section Reference A.1: Operations Management Essentials Bloom’s: Application Difficulty: Medium AACSB: Analytic 94) Which of the following is not a current trend in manufacturing technology? a) Robotics b) Cellular layouts c) Computer-integrated manufacturing d) Design for assembly e) Remanufacturing Answer: d Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 95) Which one of the following trends does not play a role in the quality aspects of operations? a) lean production b) flexible manufacturing c) robotics manufacturing d) boutique engineering e) mass customization Answer: d Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 96) ___ continuously innovates and employs best practices to keep increasing production efficiencies. a) Flexible manufacturing b) Mass customization c) Lean production Test Bank

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d) Computer-integrated manufacturing e) Customized design Answer: c Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 97) ___ allows automated operations to quickly shift from one task or product type to another. a) Flexible manufacturing b) Mass customization c) Lean production d) Agile manufacturing e) Customized design Answer: a Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 98) Technology that focuses the efforts of many people with special expertise on the needs of clients is defined as ___ technology. a) mediating b) long-linked c) intensive d) continuous-process e) service Answer: c Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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99) The tire-changing team in the pits at a car racing event is exhibiting ___ technology. a) mediating b) long-linked c) intensive d) continuous-process e) service Answer: c Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Application Difficulty: Medium AACSB: Analytic 100) Technology that links together parties seeking a mutually beneficial exchange of values is defined as ___ technology. a) mediating b) long-linked c) intensive d) continuous-process e) service Answer: a Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 101) eBay is an example of which type of technology? a) mediating b) long-linked c) intensive d) continuous-process e) service Answer: a Test Bank

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Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Application Difficulty: Medium AACSB: Analytic 102) Technology that can function like mass production where a client is passed from point to point for various aspects of service delivery is defined as ___ technology. a) mediating b) long-linked c) intensive d) continuous-process e) service Answer: b Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 103) A passenger travelling via airplane to a holiday destination is using which type of technology? a) mediating b) long-linked c) intensive d) continuous-process e) service Answer: b Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Application Difficulty: Medium AACSB: Analytic 104) A(n) ___ is a specific sequence of activities that transforms raw materials into a finished good or service. Test Bank

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a) service chain b) value chain c) activities system d) procurement plan e) distribution plan Answer: b Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 105) Primary activities of a value chain include a) marketing and sales. b) procurement. c) human resource management. d) infrastructure management. e) market research. Answer: a Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 106) Improving the paint quality on your product to make it last longer for your customer is an example of a) value chain management. b) value creation. c) supply chain management. d) PERT. e) problem solving. Answer: b Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Application Test Bank

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Difficulty: Medium AACSB: Analytic 107) A well-functioning value chain should involve a) a series of consecutive steps that add value to inputs right up to the point that finished goods or services are delivered to the customer. b) a series of steps done all at once and delivered as cheaply as possible. c) a production manager to keep watch over the human resources people. d) many levels of management. e) many levels of performance measurement. Answer: a Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 108) ___ involves strategic management of all operations involving the suppliers of an organization’s resources. a) Value chain management b) Internal customer management c) Customer relationship management d) Total quality management e) Supply chain management Answer: e Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 109) Achieving efficiency in all aspects of the ___ while ensuring on-time availability of quality resources for customer-driven organizations is the fundamental goal of ___. a) value chain; value chain management b) quality chain; quality chain management c) supply chain; supply chain management Test Bank

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d) customer chain; customer chain management e) production chain; production chain management Answer: c Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 110) Ordering a fixed quantity of items each time an order is placed, whenever inventory on hand reaches a predetermined minimum point is the ___ model of inventory management. a) inventory control number b) quality control paradox c) economic order quantity d) break-even quantity e) fixed quantity inventory Answer: c Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 111) Scheduling materials to arrive on a timely basis at a workstation or facility in order to reduce costs and improve workflow is known as ___. a) management by objectives (MBO) b) just-in-time (JIT) scheduling c) economic order Quantity (EOQ) d) efficient production planning (EPP) e) jump-on-board (JOB) Answer: b Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic Test Bank

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112) The ___ is calculated by dividing total fixed costs by price minus variable costs. a) current ratio b) break-even point c) economic order quantity d) net margin e) inventory turnover ratio Answer: b Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 113) Break-even analysis can be used to ___. a) improve control b) examine the impact of cost control measures c) experiment with different “what-if” scenarios d) a and c e) a, b, and c Answer: e Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 114) Researching the impact on profits that a 10% shift in the exchange rate would have on your raw materials imports is an example of a) current ratio analysis. b) break-even analysis. c) just-in-time scheduling. d) value chain management. e) management by objectives. Answer: b Test Bank

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Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Application Difficulty: Medium AACSB: Analytic 115) A company has total fixed costs of $150,000, a selling price of $400 per unit and variable costs equal to 35% of the selling price. The break-even point is (answers have been rounded up) ______ units. a) 273 b) 375 c) 577 d) 1,072 e) none of the above Answer: c Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Application Difficulty: Medium AACSB: Analytic 116) A Harvard Business Review survey ranked which of the following as first and second among the most important goals in the success of organizations? a) technological advancements and recruiting quality employees b) financial returns to stockholders and market share c) productivity and profitability d) satisfying internal and external customers e) customer service and product quality Answer: e Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic

Test Bank

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117) ___ uses the latest information technology that allows organizations to maintain intense communication with customers as well as to gather and utilize data regarding the customers’ needs and preferences. a) Customer relationship management b) Internal customer management c) Value chain management d) Total quality management e) Supply chain management Answer: a Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 118) Marriott International uses special customer software to track information on customer preferences. Requests for things like a king-size bed, a non-smoking room, etc. are kept on file. Marriott’s ___ management strategically tries to build a long-lasting relationship and add value for the customers. a) critical response b) customer relationship c) external d) internal e) product Answer: b Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 119) To establish a customer relationship management (CRM) program it is important to know that all customers want a) a deal b) a rebate if the delivery is late Test Bank

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c) high quality, low price and on-time delivery d) anything they can get cheap e) the very best regardless of the price Answer: c Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 120) You purchase a variety of food, toys and supplies at your local pet store. You are a(n) ___. a) merchants b) internal customers c) external customers d) satisfied customers e) producers Answer: c Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Application Difficulty: Medium AACSB: Analytic 121) You call the campus print shop to order more copy paper for the office copier at the Business School. You are a(n). ___. a) jobbers b) internal customers c) external customers d) quality experts e) dependent employees Answer: b Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Test Bank

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Bloom’s: Application Difficulty: Medium AACSB: Analytic 122) Charlie assembles circuit boards in a computer manufacturing plant, who gets the chips for the boards from Taylor, assembles the boards, and then forward them to Morgan, who puts them into the finished components. This example illustrates the concept of ___. a) integrated manufacturing processes b) efficient task assignments c) internal customers, who use the results of others’ work to do their job d) total quality management and shared responsibility e) Deming’s path to quality Answer: c Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Application Difficulty: Medium AACSB: Analytic 123) The term total quality management is used to describe the process of ___. a) training managers to monitor quality and then making them responsible for overall quality in their areas of responsibility b) managing with an organization-wide commitment to continuous improvement, product quality, and customer needs c) reducing the need for quality inspections by training employees to be quality conscious d) producing holistic work environments e) designing and manufacturing quality products Answer: b Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

Test Bank

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124) Which of the following characteristics does not accurately describe the process of total quality management? a) making quality principles a part of the organization’s strategic objectives b) applying quality principles to all aspects of operations c) committing the organization to continuous quality improvement d) striving to meet customers’ needs by doing things right the first time e) committing the organization to the use of self-managing work teams Answer: e Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 125) Companies that have a(n) ___ mindset use customer feedback to fix or address any problems there might be with the product/service. a) statistical quality b) ISO certification c) Six Sigma d) total quality management e) outgrowth Answer: d Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Application Difficulty: Medium AACSB: Analytic 126) Total quality management is a result of the work originally done by a) Harry Truman. b) Peter Drucker. c) Herman Franks. d) W. Edwards Deming. e) Stephen Covey. Test Bank

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Answer: d Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 127) The basic philosophy of ___ is that organization members should never be satisfied with current performance. a) performance management b) continuous improvement c) performance appraisal d) supply chain analysis e) human resources management Answer: b Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 128) An important aspect of ___ is the belief that that any and all processes within the organization, including customer service can and should be improved upon. a) performance management b) performance appraisal c) supply chain analysis d) human resources management e) continuous improvement Answer: e Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Application Difficulty: Medium AACSB: Analytic Test Bank

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129) In the context of control systems, ___ involves checking processes, materials, products, and services to ensure that they meet high standards. a) purchasing control b) quality control c) inventory control d) management process control e) progressive control Answer: b Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 130) Organizations that want to compete in the world marketplace as “world-class companies” can gain a competitive advantage by having their operations achieve ___. a) consumer protection certification b) international Q certification c) ISO certification d) AAA certification e) manufacturing supply certification Answer: c Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Application Difficulty: Medium AACSB: Analytic 131) To receive ISO certification, companies must ___ and ___. a) undergo extensive managerial training; be approved by the Management Development Institute b) receive governmental approval to apply for the certification exam; have at least 90% of the employees pass the certification exam Test Bank

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c) refine and upgrade quality in all operations; undergo a rigorous assessment by outside auditors to determine if quality standards are met d) apply for membership in the International Society for Operations (ISO); receive approval from the ISO membership committee e) increase sales for three years in a row; decrease customer complaints in each year Answer: c Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 132) ___ involves taking samples of work, measuring quality in the samples, and determining the acceptability of results. a) Just-in-time scheduling b) Work variation management c) Work sampling acceptability analysis d) Statistical quality control e) Break-even analysis Answer: d Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 133) According to Michael Hammer, ___ is the systematic and complete analysis of work processes and the design of new and better ones. a) process redesigning b) process reengineering c) process resurfacing d) process restructuring e) systems process analysis and design Answer: b Test Bank

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Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 134) The goal of process reengineering is to focus attention on all of the following except a) improving customer satisfaction. b) improving work performance. c) breaking people and mindsets away from habits. d) eliminating preoccupation with past accomplishments. e) continuing the existing ways of doing things. Answer: e Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Comprehension Difficulty: Medium AACSB: Analytic 135) ___ refer(s) to a group of related tasks that together create value for the customer. a) A job description b) Job responsibilities c) A work process d) Job relationships e) A task group Answer: c Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 136) According to Michael Hammer, which of the following is not a key characteristic of a work process? a) Tasks are viewed as a group rather than in isolation. b) Everyone must share a common goal. Test Bank

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c) The focus is on accomplishments, not activities. d) Everyone is rewarded equally. e) Customers are the ones who really count. Answer: d Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Knowledge Difficulty: Medium AACSB: Analytic 137) ___ refers to the way work moves from one point to another in the manufacturing or service delivery processes. a) Work process. b) Workflow. c) Technical flow. d) Operations management. e) Work delivery plan. Answer: b Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 138) Which of the following is not a correct description of a workflow feature? a) Workflow refers to the movement of work from one point to another in a system. b) The various steps of a work process must be completed to achieve desired results, and they typically must be completed in a given order. c) An important starting point for reengineering is to diagram workflows. d) Each step in the workflow should be analyzed to determine whether or not it is adding value. e) Special attention should be given to eliminating the role of technology in the work process. Answer: e Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Analysis Difficulty: Medium Test Bank

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AACSB: Analytic 139) In ___, each step in the workflow is examined to determine if it is important, useful, and contributing to the value added. a) value chain analysis b) process value systems c) alternative analysis control d) process value analysis e) systems design Answer: d Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 140) In reengineering core processes, managers should do all of the following except a) identify the core processes. b) map the core processes with respect to workflows. c) evaluate all tasks for the core processes. d) identify the organization’s key strategic objectives. e) search for ways to eliminate unnecessary tasks or work. Answer: d Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 141) An important goal of ___ is redesigning core processes to establish control for them with an identifiable group of people. a) process reengineering b) cultural management c) corporate social responsibility d) mechanistic organization design e) bureaucracy Test Bank

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Answer: a Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 142) A machine has been operating at 70% efficiency. In order to improve the machine’s efficiency, which of the following should be considered? a) Cultural management seminars b) Corporate social responsibility planning c) Process reengineering d) Mechanistic organization design e) Statistical quality control Answer: c Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Application Difficulty: Medium AACSB: Analytic 143) Reducing costs and increasing efficiency while creating the ever-present capacity for change is a key objective of ___. a) cultural management b) corporate social responsibility c) process reengineering d) mechanistic organization design e) bureaucracy Answer: c Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

Test Bank

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Question type: Essay 144) Why are value chain analysis and management and supply chain management important in operations management? Answer: The value chain is the specific sequence of activities that creates goods and services with value for customers. As an organization, it is important to be able to identify and diagram the components of the value chain so as to focus attention on two major questions 1) What value is being created for customers in each step? 2) How efficient is each step as a contributor to overall organizational productivity? Supplier relationships on the input side must be well managed. SCM involves strategic management of all operations linking an organization and its suppliers, including such areas as purchasing, manufacturing, transportation, and distribution. The goals of supply chain management are to achieve efficiency in all aspects of the supply chain while ensuring on-time availability of quality resources and products Learning Objective A.1: Identify the essentials of operations and services management. Section Reference A.1: Operations Management Essentials Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 145) Briefly define and explain the following terms: Productivity Value Chain Customer Relationship Management Economic Order Quantity Total Quality Management Process Reengineering Answer: Productivity is a quantitative measure of the efficiency with which inputs are transformed into outputs. Productivity = Output/Input Value Chain is the specific sequence of activities that results in the creation of products or services with value for customers. The value chain includes all primary activities—such as inbound logistics, operations, outbound logistics, marketing, sales, and after-sales service, as well as support activities—such as procurement, human resource management, technology development and support. Customer Relationship Management is the use of technology, primarily databases, email, texts and social media, to maintain strong communication with customers and gather data on their preferences, needs and desires. Its aim is to provide a competitive advantage by zeroing in on what the customer wants, even before the customer voices their needs, wants or desires. The economic order quantity method of inventory control involves ordering a fixed number of items every time an inventory level falls to a predetermined point. When this point is reached, a decision is automatically made (typically by computer) to place a standard order to replenish the Test Bank

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stock. The order sizes are mathematically calculated to minimize costs of inventory. Total Quality Management is a process that makes quality principles part of the organization’s strategic objectives, applying them to all aspects of operations and striving to meet customers’ needs by doing things right the first time. Total quality management is managing with an organization-wide commitment to continuous improvement, product quality, and customer needs. Process Reengineering uses process value analysis to examine all the steps of the core processes, evaluate them for efficiency, effectiveness etc., and discard those steps which do not add value to the end result. Its purpose it to make the company’s processes more lean, less wasteful, more productive and efficient to gain a competitive advantage for the end products created via those processes. Learning Objective A.1: Identify the essentials of operations and services management. Learning Objective 2: Explain what value chain management encompasses. Learning Objective 3: Describe how organizations manage customer service and product quality. Section Reference A.1: Operations Management Essentials Section Reference 2: A.2 Value Chain Management Section Reference 3: A.3 Service and Product Quality Bloom’s: Knowledge Difficulty: Easy AACSB: Analytic 146) Imagine you sell handcrafted decorations at the local flea market. The cost to rent a booth at the market is $150. The variable cost to makes these decorations is $20 each and you sell them for $50. How many of these must you sell to break even? Answer: Break-Even Point = Fixed costs / (Price per unit) – (variable cost per unit) Fixed cost = 150 Selling price per unit = 50 Variable cost per unit = 20 Break Even point = 150 / (50-20) = 150/30 Break Even point = 5 units must be sold for a break-even point. Learning Objective A.2: Explain what value chain management encompasses. Section Reference A.2: Value Chain Management Bloom’s: Application Difficulty: Medium AACSB: Analytic 147) Today, billions of dollars are wasted through the lack of focus on quality. This waste can stem from something as insignificant as an improperly scheduled meeting that results in a loss of productive time to a defective product or undelivered service that results in the loss of a customer. This absence of focus on quality results in product and processing systems which lack Test Bank

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flexibility, innovativeness, and timeliness to market. How can the total quality management approach help to eliminate this unnecessary waste? Answer: Quality is not something for the quality department. If a corporate culture focuses on the customer, quality control will spring from each employee. Total Quality Management is a process that makes quality principles part of the organization’s strategic objectives, applying them to all aspects of operations and striving to meet customers’ needs by doing things right the first time. Total quality management is basically a customer-oriented paradigm that occurs through processes. The emphasis on customer focus requires a company to be process based. A process organization is simply one that is conceived as a flow of interdependent processes, which must be understood and improved. When people are able to perceive commonality in goals, then it becomes easier to communicate over departmental or functional walls. Teams, by working towards a common collaborative goal, help in breaking down barriers and act as agents for change. The continuous cycle of establishing customer requirements, meeting the requirements, measuring success and continuing to improve can be used internally to fuel the engine of external and continuous improvement. By continually checking customers’ requirements, a company can find areas in which improvements can be made. There are many success stories of how TQM has helped transform companies. One of them is Ericsson Inc. of Lynchburg, Virginia, that implemented a successful TQM program. The TQM program, named Winshare, saved the company approximately US $60 million over 10 years. Employees were divided into 63 teams, and each team elected a co-worker as a leader. Teams were used to develop improvement ideas and received US $6000 to implement them. Learning Objective A.3: Describe how organizations manage customer service and product quality. Section Reference A.3: Service and Product Quality Bloom’s: Synthesis Difficulty: Hard AACSB: Reflective Thinking 148) Why would an organization want to engage in process reengineering? How can business processes be reengineered? Answer: Organizations engage in process engineering in order to: centre control for the core processes with an identifiable group of people; focus the entire system on meeting customer needs and expectations; eliminate duplication of work and systems bottlenecks; reduce costs; and streamline operations efficiency. The reengineering of core business processes follows a six-step procedure. This procedure is: • Identify the core processes. • Map the core processes with respect to workflows. • Evaluate all tasks for the core processes. • Search for ways to eliminate unnecessary tasks or work. • Search for ways to eliminate delays, errors, and misunderstandings. Test Bank

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Search for efficiencies in how work is shared and transferred among people and departments.

Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Analysis Difficulty: Medium AACSB: Analytic 149) Define work process according to Michael Hammer and explain what value process reengineering adds to both the organization as a whole and to the customer. Answer: Work process, according to Hammer, is “a related group of tasks that together create a result of value for the customer.” Hammer highlights four key words as implications of this definition: 1) group – tasks are viewed as part of a group rather than in isolation, 2) together – everyone must share a common goal, 3) result – focus is on accomplishments, not activities, 4) customer – processes serve customers whose perspectives really count. Since customer service processes often include many unnecessary or redundant tasks, process reengineering reduces those tasks through elimination or combination in order to shorten the response time and therefore meeting customer needs and expectations more efficiently. Learning Objective A.4: Explain how work processes can be designed for productivity. Section Reference A.4: Work Processes Bloom’s: Analysis Difficulty: Medium AACSB: Analytic

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