Test Bank For M Management 7th Edition By Thomas Bateman, Robert Konopaske, Scott Snell Chapter 1-15

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Test Bank For M Management 7th Edition By Thomas Bateman, Robert Konopaske, Scott Snell Chapter 1-15 Answers are at the End of Each Chapter Chapter 1 Student name:__________ 1) The best managers prioritize efficiency over effectiveness. ⊚ true ⊚ false

2) The four fundamental management principles include analyzing current situations,

determining objectives, choosing business strategies, and determining the resources needed to achieve the organization's goals. ⊚ true ⊚ false

3) Maura has weekly meetings with her managers to discuss their work and to share ideas for

improvement. Maura exhibits the leading function of management. ⊚ true ⊚ false

4) Successful managers do not need to utilize all four functions of management, just the ones

relevant to their business. ⊚ true ⊚ false

5) Top-level managers are also called tactical managers because they must translate general

goals into specific objectives and activities. ⊚ true ⊚ false


6) A team leader's job is less challenging than frontline and other types of managers' jobs

because team leaders always have direct control over team members. ⊚ true ⊚ false

7) Lower-level managers who possess technical skills tend to earn less credibility from their

subordinates than comparable managers without technical know-how. ⊚ true ⊚ false

8) One of the five key elements that make the current business environment different from those

of the past involves an increasingly diverse workforce. ⊚ true ⊚ false

9) Social capital is the goodwill you gain from your social relationships. ⊚ true ⊚ false

10) Creativity is defined as the introduction of new goods and services. ⊚ true ⊚ false

11) Management is the A) method of executing, responding, and delivering results in a fast and timely manner. B) process of working with people and resources to accomplish organizational goals. C) technique of keeping costs low enough so the company can realize profits. D) introduction of new goods and services. E) method of creating goodwill through social relationships.


12) Planning involves A) analyzing current situations. B) monitoring performance. C) attracting people to the organization. D) motivating employees. E) implementing necessary changes.

13) __________ is specifying the goals to be achieved and deciding in advance the appropriate

actions needed to achieve those goals. A) Staffing B) Leading C) Organizing D) Planning E) Controlling

14) WorldMart Inc. periodically reviews the goals of the company. During the process, the

managers of the company analyze their current strategies as compared to their competitors' strategies, determine goals that they will pursue, and decide upon specific actions for each area of the company to take in pursuit of these goals. With these actions, the managers are engaged in the management function of A) organizing. B) planning. C) goal coordination. D) controlling. E) leading.

15) A large company recently embarked on an effort to increase coordination and cooperation

within the company. During the process, the managers of the organization reviewed and specified job responsibilities, grouped jobs into work units, and reallocated resources within the company. The managers were exercising the management function of A) planning. B) organizing. C) leading. D) controlling. E) budgeting.


16) __________ is assembling and coordinating the human, financial, physical, informational,

and other resources needed to achieve goals. A) Controlling B) Planning C) Organizing D) Leading E) Quantifying

17) Brian is a general manager for a tool-manufacturing firm. He is considering some changes to

the production floor, which include layout adjustments and the purchase of new equipment to improve efficiency. He also wants to promote one of his employees to team leader. Which function of management is Brian performing? A) planning B) training C) leading D) organizing E) controlling

18) Building a dynamic organization is the goal of which function of management? A) planning B) organizing C) leading D) controlling E) staffing

19) Mike focuses on assembling and coordinating the people, equipment, and supplies that his

company needs to achieve its goals. What management function does Mike emphasize in his work? A) planning B) leading C) controlling D) sustaining E) organizing


20) What will be the result when managers use new forms of organizing? A) They will build organizations that are flexible and adaptive. B) They will create an organization chart by identifying business functions. C) They will specify the goals to be achieved and decide in advance the appropriate

actions needed to achieve those goals. D) They will establish a top-down approach where top executives establish business plans and tell others to implement them. E) They will monitor performance and make necessary changes in a timely manner.

21) Natasha is very good at inspiring the people in her department to learn new skills and to

perform better than expected on the job. As a manager, what is Natasha especially good at doing? A) planning B) staffing C) leading D) controlling E) monitoring

22) As one of the key management functions, leading focuses on a manager's efforts to A) mobilize people to contribute their ideas. B) build organizations that are flexible and adaptive. C) make sure goals are met. D) identify opportunities for sustainable advantage. E) build a dynamic organization.

23) __________ is a manager's ability to stimulate people to be high performers. A) Planning B) Organizing C) Leading D) Controlling E) Monitoring


24) Yolanta manages a team of six professionals in a health care company. Her subordinates

have a wide variety of experiences and skill sets. By effectively __________ her team, Yolanta regularly seeks to inspire her subordinates to draw upon their various backgrounds in new and innovative ways. A) planning B) organizing C) leading D) controlling E) innovating

25) When Kabir, the marketing manager of SideStreet Inc., realized that his plan to increase sales

levels was not producing the results he desired, he took quick action to make necessary adjustments. According to this scenario, Kabir was exercising the management function of A) planning. B) organizing. C) leading. D) controlling. E) communicating.

26) __________ involves monitoring performance and making necessary changes. A) Budgeting B) Planning C) Organizing D) Leading E) Controlling

27) When Martin, manager of his company’s sales department, realized that his plan to increase

his department’s sales levels was not producing the desired results, he instituted a training course to help the salespeople achieve better results. Which management function is illustrated in this scenario? A) planning B) organizing C) leading D) controlling E) budgeting


28) Through careful monitoring of the financial budget of a firm, managers can detect potential

problems in reaching their financial goals and take actions to reverse the problem. This is an example of the management function of A) planning. B) controlling. C) leading. D) organizing. E) budgeting.

29) When PG&E created a wildfire safety plan after devastating fires in California, it was

demonstrating the management function of A) planning. B) controlling. C) leading. D) organizing. E) budgeting.

30) Sanga is a middle-level manager who is known for his efficiency; however, he is not

necessarily effective. But, Rachelle, another middle-level manager, is known for her effectiveness, rather than her efficiency. Therefore, Rachelle is more likely to A) achieve goals with minimal waste. B) make the best possible use of money. C) achieve organizational goals. D) make the best possible use of people. E) have a clear focus on efficiency.

31) Fashion Forward wants to be the sales leader in women's fashion. To achieve this goal, the

CEO has analyzed the current situation and determined objectives and resources. What planning activities still need to be completed? A) anticipate the future, decide on activities, and choose a business strategy B) solicit funders, market the company, and choose a business strategy C) market the company, decide on actions, and anticipate the future D) evaluate the competitors, solicit funders, anticipate the future E) decide on actions, market the company, and solicit funders


32) __________ is coordinating the human, financial, physical, informational, and other

resources in a company. A) Assembling B) Organizing C) Planning D) Grouping E) Controlling

33) Leading involves A) creating an organization chart by identifying business functions. B) establishing reporting relationships. C) having a personnel department that administers plans, programs, and paperwork. D) stimulating people to be high performers. E) dealing directly with customers and clients.

34) Controlling helps a manager to A) monitor performance and implement necessary changes. B) create an organization chart by identifying business functions. C) establish reporting relationships. D) stimulate people to be high performers. E) determine department goals.

35) To become an effective manager, one should choose __________ of the four management

functions and commit one hundred percent. A) only one B) at least two C) between one and three D) all E) none


36) Which statement best describes the management function of controlling? A) Managers assemble and coordinate the human, financial, physical, informational, and

other resources needed to achieve goals. B) Managers analyze current situations, anticipate the future, determine objectives, and decide on what types of activities in which the company will engage. C) Managers make sure the organization's resources are being used as planned and that the organization is meeting its goals for quality and safety. D) Managers motivate workers to come to work and execute top management's plans by doing their jobs. E) Managers create an organization chart by identifying business functions and establishing reporting relationships.

37) Leading involves A) increasing profits above all else. B) attracting people to the organization. C) mobilizing and inspiring people to engage fully in their work and contribute their

ideas. D) motivating workers to come to work and execute top management's plans. E) analyzing day-to-day situations and involving workers in all decisions.

38) The CEO said, "Every six months or so, my senior management team and I meet to discuss

the goals that will be achieved over the next year, three years, and beyond. We then make sure we are clear on who will take responsibility to see that appropriate actions are undertaken to achieve our goals within the time frame we set." The CEO is describing the management function of A) planning. B) organizing. C) leading. D) controlling. E) decision making.


39) "Recently, I spent a great deal of time looking at how to define jobs to most efficiently utilize

the employees in those jobs," said the CEO of Baker Products. "And now I need managers to be responsible for the various job groupings." The CEO is describing the management function of A) planning. B) organizing. C) leading. D) controlling. E) decision making.

40) "As CEO, I maintain a big-picture view of how we are performing as a company,

determining what changes we need to make if we begin deviating from our plans, and ensuring we meet our goals for quality and safety." The CEO is describing the management function of A) planning. B) organizing. C) leading. D) controlling. E) decision making.

41) "As CEO, I must mobilize, inspire, and stimulate my management team, as well as the entire

staff, to continually perform at high levels. I seek to empower my staff through communication and motivation." The CEO is describing the management function of A) planning. B) organizing. C) leading. D) controlling. E) decision making.


42) Labyrinth is a new, very successful, brand of organic clothing recently introduced globally.

The company is unique in the way it has collaborated with its suppliers and potential customers to bring the clothing to market. Labyrinth's founders have always focused on efficiency. What is the best advice you should give them, given the quick success they have had with Labyrinth? A) Efficiency is the only key to their continued success. B) Now it is time for them to consider only effectiveness because they clearly have efficiency under control and this is not likely to change in the future. C) To continue their success, they should maintain a clear focus on both effectiveness and efficiency, especially while their company is experiencing such a high growth in sales. D) They should maintain the status quo without implementing any changes to continue making quick sales. E) As top-level managers, the best action plan for them is to begin to minimize collaboration with customers and suppliers because they have proven themselves.

43) __________ managers are senior executives responsible for the overall management and

effectiveness of an organization. A) Long-term B) Middle C) Strategic D) Tactical E) Short-run

44) A company’s CEO and Director of Human Resources are concerned that their company will

not survive the current recession. As experienced __________ managers, they are working collaboratively to develop new business strategies and work processes to effectively and efficiently support the company so that it can survive the current economic downturn and thrive in the coming years. Their employees are depending upon them to provide overall management of the company. A) frontline B) tactical C) top-level D) matrix E) knowledge


45) The four levels of managers found in large organizations are A) international, national, regional, and local. B) marketing, accounting, human resource, and finance. C) technical, functional, departmental, and organizational. D) planning, coordinating, controlling, and executing. E) top-level, middle-level, frontline, and team leader.

46) Top-level managers focus on A) the long-term survival of an organization. B) translating goals and objectives into specific activities. C) managing frontline managers. D) supervising nonmanagement employees. E) initiating new daily activities.

47) __________ managers are typically concerned with the interaction between an organization

and its external environment. A) Regional B) Top-level C) Middle-level D) Frontline E) Functional

48) Chief executive officer, president, chief operating officer, and vice president are all titles

typical of __________ management. A) top-level B) tactical level C) operational level D) functional level E) regional level 49) __________ managers are responsible for translating the general goals and plans developed for an organization into more specific activities. A) Operational B) Functional C) Activities D) Strategic E) Tactical


50) Middle-level managers are often referred to as __________ managers. A) activities B) tactical C) functional D) operational E) strategic

51) As a manager, Jason spends much of his time coaching his employees and making sure that

any required information from upper management reaches them in an understandable format. Jason would best be described as a(n) A) frontline manager. B) tactical manager. C) operational manager. D) top-level manager. E) institutional controller.

52) __________ managers are lower-level managers who supervise the operational activities of

an organization. A) Frontline B) General C) Team D) Tactical E) Strategic

53) Operational managers play a crucial role in an organization because they A) provide the link between management and nonmanagement personnel. B) are responsible for translating the general goals developed by strategic managers into

more specific objectives and activities. C) are responsible for facilitating successful team performance. D) give feedback on the performance of the top management. E) contribute direction and strategy to the organization.


54) One of Yani's primary activities in his career as a supervisor at Front yard Bird Food is

working with his middle manager, Delilah, to introduce new growth opportunities in the business (such as expanding into exotic bird foods) and to help the people who actually manufacture the food. Yani is most likely a(n) A) frontline manager. B) tactical manager. C) strategic manager. D) top-level manager. E) administrative controller.

55) Titles such as sales manager or supervisor typically belong to __________ managers. A) strategic B) middle-level C) top-level D) operational E) tactical

56) In smaller entrepreneurial firms and even in more adaptive larger firms, managers A) are no longer utilized. B) rely more heavily on technical skills. C) focus primarily on hierarchy. D) have strategic, tactical, and operational responsibilities. E) focus on internal operations only.

57) Being a(n) __________ is one of the roles of a manager that involves searching for new

business opportunities and initiating new projects to create change. A) leader B) figurehead C) entrepreneur D) resource allocator E) monitor


58) In a major announcement at an annual medical conference, Dr. Harold Weinter, Research

Director of Assop Pharmaceuticals, informs the medical community of a breakthrough in the treatment of diabetes. As __________ for his organization, he answers questions posed to him by his medical research colleagues and members of the press. A) disseminator B) spokesperson C) liaison D) figurehead E) disturbance handler

59) Audrey is the lead attorney representing RockWork, Inc. and she is in back-and-forth

discussions with parties, inside as well as outside the firm, to finalize a contract with Murphy Realty. Audrey knows that, in her role as __________, she is making important business decisions for RockWork. A) spokesperson B) liaison C) leader D) negotiator E) monitor

60) Jeffrey’s role as __________ entails creating a presentation to give to his management team

that will communicate the company's new business objectives, and more importantly, how Jeffrey has interpreted them to apply to his business unit. A) negotiator B) figurehead C) disseminator D) resource allocator E) monitor

61) The president of Key Pharma, acting as the corporation's __________, attended the opening

of a customer's new office complex. A) leader B) liaison C) figurehead D) spokesperson E) resource allocator


62) When a customer service manager works to defuse a situation with an irate customer, he or

she is assuming a __________ role. A) liaison B) disturbance handler C) negotiator D) resource allocator E) leader

63) A project manager determines the number of employees to be assigned to a certain project.

The managerial role being implemented by this project manager is A) liaison. B) disturbance handler. C) negotiator. D) resource allocator. E) leader.

64) Maintaining a network of outside contacts and alliances that provide information and favors

defines a __________ managerial role. A) spokesperson B) liaison C) leader D) negotiator E) monitor

65) The need for interpersonal and communication skills A) fades as a manager moves from the lower levels of an organization into the upper

management arena. B) fades as a manager moves from the upper management arena to the lower levels of an organization. C) is important at every level of management. D) fades at the bottom. E) is important at the bottom only.


66) A __________ serves as the spokesperson and champion for a work group dealing with

external stakeholders. A) tactical manager B) team leader C) top-level manager D) resource allocator E) senior executive

67) "I'm sorry to tell you that four employees from our division were laid off today," said Bill

Harrington, division manager, to his assembled staff. "And a total of 25 employees were laid off corporate-wide. No further staff reductions are planned, and we expect the corporation's financial performance to remain on plan." When the manager notifies his employees of these developments and plans, he is performing in the role of A) leader. B) liaison. C) disseminator. D) spokesperson. E) disturbance handler.

68) "Quick, Mr. Delaney, Margaret is in the lobby, shouting at a customer!" said George.

Rushing to intervene, Paul Delaney demanded that Margaret return to her office immediately. "Mr. Crenshaw, I'm very sorry. Please, allow me to escort you to our executive suite, and I will straighten this out," said Mr. Delaney. Mr. Delaney was performing in the role of A) monitor. B) negotiator. C) disturbance handler. D) resource allocator. E) liaison.


69) "I must attend the fundraiser," said Maura O’Brien, Senior Vice President of Marketing.

"One of our key clients is sponsoring the event for a worthy cause, and our firm should be represented by a senior member of our management team." When Maura performs symbolic duties on behalf of her organization, she is performing in the role of A) liaison. B) figurehead. C) monitor. D) entrepreneur. E) resource allocator.

70) Julia mused to herself, "It has taken over 30 years, but I've finally been named CEO of a

major firm. Now, I can concentrate on what I really want to do as a(n) __________ manager, to focus on the survival, growth, and overall effectiveness of our firm." A) tactical B) strategic C) middle D) external E) internal

71) A(n) __________ skill is the ability to perform a specialized task that involves a certain

method or process. A) conceptual B) professional C) interpersonal D) communication E) technical

72) __________ represent the three general categories of skills that are crucial to managers. A) Selling and public relations, conceptual and decision, and professional B) Technical, interpersonal and communication, and conceptual and decision C) Professional, technical, and selling and public relations D) Conceptual and decision, professional, and technical E) Professional, technical, and conceptual and decision


73) Using a particular software program at an expert level, compilation of an accounting

statement, and writing advertising copy are all examples of __________ skills. A) technical B) public relations C) communicative D) interpersonal E) quantitative

74) Rashid started out as a front office worker, and over the years worked his way up to the CEO

position. As such, Rashid likely found that as he moved up in responsibility, he required a higher level of __________ skills. A) conceptual and decision B) informational C) technical D) professional E) negotiation

75) The senior managers at a printing company recognized a lack of employee enthusiasm about

the new website. There was a fair amount of infighting and accusations of who was responsible for the layout, given that the firm is considered to be highly competent in design and production. Marley, a manager, got the team together and engaged them in a lively discussion to determine how to change the website so that it reflected more of the company’s unique design ability. As the meeting wound down, each team member volunteered to take on a part of the project to fix the site. The ability to identify this problem and resolve it is an effective use of __________ skills. A) conceptual and decision B) informational C) technical D) professional E) negotiation


76) Listening to employee suggestions, gaining support for organizational objectives, and

fostering an atmosphere of teamwork are all considered __________ skills. A) technical B) interpersonal and communication C) diagnostic D) professional E) conceptual

77) Which statement exemplifies the importance of managerial skills? A) Obtaining high performance from people in the organization is easy because of the

authority managers will continue to have over knowledge workers. B) Technical skills are most important after becoming a top-level manager. C) The importance of the various types of managerial skills is consistent across all managerial levels. D) Conceptual and decision skills become less important than technical skills as a manager rises higher in the company. E) Interpersonal skills are important throughout a manager's career, at every level of management.

78) __________ is the skills of understanding oneself, managing oneself, and dealing effectively

with others. A) Self-reliance B) Social capital C) Emotional intelligence D) Career management E) Social management


79) Pete has built up a wide network of contacts, clients, and local business neighbors since

moving to Chicago five years ago. Throughout his home-based marketing career, he has regularly and frequently networked with these business associates online, by phone, and in person. As he considers leaving his marketing career to become an owner/manager of a local business, he will rely upon the __________ that he has developed with these individuals to ensure a successful transition to a new career. A) knowledge management B) competitive advantages C) social capital D) emotional intelligence E) figurehead skills

80) One component of emotional intelligence is A) understanding oneself. B) dealing with power plays made by others. C) understanding the shortcomings of people you work with. D) advising others how to stay happy at work. E) helping others understand that you are correct.

81) __________ is among the necessary skills of emotional intelligence. A) Encouraging coercion among employees B) Showing empathy C) Advising others how to stay happy at work D) Maintaining the status quo E) Avoiding constructive criticism

82) Which person illustrates a manager with emotional intelligence? A) Mary can maintain the status quo. B) Eileen can identify her team members' strengths and weaknesses. C) Stephen can exercise self-control. D) Vince has the ability to manage his followers' reactions. E) Patty has the ability to ignore constructive criticism.


83) "A new boss from outside the industry won't be able to train us to perform specialized tasks

involving our particular methods and processes, or to evaluate how well we were performing these tasks. In other words, would she have the necessary __________?" asked Muffy. A) conceptual and decision skills B) selling skills C) language fluency D) technical skills E) negotiating skills

84) __________ is one of the key elements that makes the current business landscape different

from those of the past. A) Centralization B) Technological change C) Quality D) Cost competitiveness E) Speed

85) Which statement about globalization is true? A) It fails to involve smaller firms. B) It encourages the maintenance of the status quo. C) It does not create threats to anybody. D) It does not allow employees to provide services although most economies have

become very efficient at producing physical goods. E) It occurs through cross-border partnerships.

86) Which statement about the Internet is true? A) The Internet always makes things easier. B) The Internet is a virtual marketplace and speeds up globalization. C) The Internet's impact is felt only at the level of businesses as a whole and not by

individual employees. D) The Internet does not create threats as competitors capitalize on new developments. E) The Internet compels people to respond to e-mail messages immediately.


87) __________ is the goodwill stemming from social relationships. A) Social empathy B) Social capital C) Emotional intelligence D) Emotional capital E) Empathetic goodwill

88) __________ is the set of practices aimed at discovering and harnessing an organization's

intellectual resources, fully utilizing the intellects of the organization's people. A) Knowledge management B) Collaboration C) Innovation D) Service management E) Communication management

89) Hannah excels at identifying the talents of employees and finding the jobs where they can

best use those talents to benefit the organization. Hannah excels at __________ management. A) knowledge B) scientific C) project D) service E) quality

90) Which statement about collaboration is true? A) Collaboration occurs only within the boundaries of an organization. B) It is unrealistic to think that a company can collaborate with its customers. C) Disclosing one's plans by collaborating with the potential investors of a firm is not a

good idea. D) Collaboration supports knowledge management and vice versa. E) Collaborating with people outside an organization is impossible because of the risk of disclosing trade secrets.


91) Technology both complicates things and creates new opportunities. The challenges come

from A) B) C) D) E)

the rapid rate at which technology changes. the lack of transportation. inaccurate information. unchanging technologies. the limit on new opportunities.

92) As the success of modern business so often depends on the knowledge used for innovation

and the delivery of services, organizations need to manage that A) knowledge. B) success. C) resource. D) innovation. E) communication.

93) Collaboration can occur A) between two organizations, but not internally. B) within but not outside the organization. C) outside the organization only. D) with customers. E) among managers only.

94) Creating outstanding products and services can start with involving __________ in company

decisions. A) customers B) executives C) managers D) employees E) owners


95) Harry is surprised one day to learn that the parts that he has ordered from a small local

supplier are delayed. He immediately calls his supplier, and the supplier admits that his shop is overbooked with orders, not only from Harry's business but also from new customers in China. As Harry realizes that his small U.S.-based business is competing for shop space with companies in China, he faces the management challenge involved with A) globalization. B) technological change. C) the importance of knowledge and ideas. D) collaboration across organizational boundaries. E) an increasingly diverse labor force.

96) __________ is the introduction of new goods and services. A) Collaboration B) Standardization C) Innovation D) Adaptation E) Saturation

97) Service refers to the A) speed and dependability with which an organization delivers what customers want. B) technique of keeping costs low to achieve profits and to be able to offer prices that are

attractive to consumers. C) practice aimed at discovering and harnessing an organization's intellectual resources. D) technique of establishing goodwill through social relationships. E) skill of understanding oneself, managing oneself, and dealing effectively with others.

98) Which statement about quality is true? A) Quality can be measured in terms of product performance, customer service, and

reliability. B) Quality cannot be improved continuously. C) Quality refers to keeping costs low enough so the company can realize profits and price its products at levels that are attractive to consumers. D) Quality refers to goodwill stemming from one's social relationships. E) Quality is described as rapid execution, response, and delivery of results.


99) Lucy has a sandwich shop in Seattle. One thing that attracts busy people to her shop is that

she has perfected a way to make sandwiches in half the time her competitors take. Which fundamental driver of success has Lucy emphasized? A) knowledge B) quality C) cost competitiveness D) speed E) sustainability

100)

Cost competitiveness means that one A) sacrifices quality to keep costs low. B) carefully monitors costs mainly during the setting up of business. C) prices his or her products or services at a level attractive to consumers. D) manages his or her costs by maintaining the status quo. E) offers a high-quality product at a higher price.

101)

Tyrone, manager at Engineering Systems, Inc. (ESI), is struggling to maintain a competitive advantage in ESI's marketplace. He wants to hire and retain the best staff that he can, but the best staff command high salaries. Tyrone knows that high staff salaries can erode his company's profitability. But passing along these higher costs to his clients means they will start doing less business with higher-priced ESI and more business with Tyrone’s lowerpriced competitors. Tyrone is struggling to A) collaborate. B) be technologically innovative. C) provide quality service. D) be cost competitive. E) achieve zero defects.

102)

Which statement about the sources of competitive advantage is true? A) The best managers and companies deliver all six competitive advantages. B) Managing the sources of competitive advantage is a zero-sum game where one source improves at the expense of the other. C) It is possible to compete without cutting costs and offering attractive prices. D) Outsourcing certain functions is likely to decrease innovation. E) The faster the product is provided the more innovation suffers.


103)

Amazon is not necessarily known for its development of new products. However, Amazon has transformed the way that products are purchased and delivered. Thus, Amazon has leapfrogged its competition through its A) quality. B) innovation. C) social capital. D) dissemination. E) collaboration.

104)

Because products __________, a firm must adapt to new competitors and to consumer demands. A) will sell forever B) do not sell forever C) that are made well last forever D) with name brands are the only ones to sell forever E) that are tried and true are the best sellers

105)

Stacy manages a specialized environmental consulting practice. Client feedback obtained in the past 12 months indicates that her business is on the decline. Stacy decides to implement various changes within her practice to improve service quality. One of the key elements of these changes will be to refocus her staff on A) making it easy and enjoyable for clients to experience a service. B) occasionally meeting the needs of clients. C) establishing short-term relationships. D) giving clients what they want no matter the cost. E) measuring product performance.

106)

Cost competitiveness means pricing a firm's products A) lower than all competitors' products. B) higher than all competitors' products. C) equal to all competitors' products. D) low but enough to make a profit. E) high enough to make the investors happy.


107)

Latosha’s department has been introducing new goods and services on a rapid-fire basis over the past two years. However, business is down, largely because customer feedback on the usefulness, reliability, and durability of the new goods and services is negative. Latosha’s division manager, Viceroy, reviews the situation and concludes that the innovation of Latosha’s department is good; however, __________ is poor. A) responsiveness B) quality C) marketing D) speed E) cost competitiveness

108)

Jonas Wilkins, Vice President of Production, said, "Alice, my employees have been manufacturing the same products for two years without a new product being introduced. Products don't sell forever, especially since globalization and technological advances have accelerated the pace of change. I'm concerned that, without __________, we will wither and die as an organization." A) planning B) innovation C) quality D) reorganizing E) cost competitiveness

109)

Safety Standards is updating its automated contracting/ordering system. Max Truesdale, CEO of Defense Supply Corporation, told his chief information officer, "Travis, you must lead an effort to reengineer our computer infrastructure to remain compatible with that of Safety Standards. This will be a complex effort but, if we can get this done before our competitors can, we will pick up a lot of new business worldwide. That's the nature of __________, it complicates things and creates opportunities." A) planning B) technological change C) emotional intelligence D) social capital E) controlling


110)

The unique ideas and products that Leverage Group has patented provide a significant advantage to its business because none of its competitors are able to offer them. Because Leverage’s CEO recognizes the __________, he has authorized development of practices to discover and harness his organization's intellectual resources. A) impact of globalization B) value of social capital C) importance of knowledge management D) importance of collaborating across organizational boundaries E) value of an increasingly diverse labor force

111)

During an intense six-month contract negotiation, Carlisle developed a strong working relationship with his client, Bart, an outside vendor. Because of their professional bonding, Carlisle and Bart were able to openly explore and constructively hammer out agreements on very tough contract issues. The resulting contract was far superior to what either of them might have hoped for six months earlier and was a good example of A) globalization. B) technological change. C) the importance of knowledge and ideas. D) collaboration across organizational boundaries. E) an increasingly diverse labor force.

112)

Mary Smith, Vice President of Human Resources, is finding that competition for human talent is becoming fiercer. She has implemented creative solutions to leverage diversity of the labor force to the benefit of her organization. For example, Mary has found that __________ allows her to supplement her available staff, particularly during times of work overload. A) turning down new work orders B) hiring illegal immigrants C) slowing down production D) hiring older workers on a part-time basis E) decreasing time off for lunch and other breaks

113)

Explain how managers are efficient and effective.


114)

List and explain the components of leading.

115)

How do managers use controlling?

116)

What does a global marketplace mean to an enterprise, in terms of marketing, distribution, and staffing?

117)

Briefly describe each of the four key management functions.

118)

Differentiate between the various management levels in an organization.


119)

At which level of management will one find conceptual and decision skills most utilized? Why?

120)

List and explain each of the six sources of competitive advantage.

121)

Explain why customers demand increasingly high-quality goods and services.

122)

Explain how one gains customer loyalty.

123)

Describe what the work of quality gurus like W. Edwards Deming and J. M. Juran convinced other managers to do.


124)

Explain, using two examples, how continuing enhancements in technology can result in delivery of products and services both faster and better.

125)

What is the best way to manage one's costs?

126)

List and explain the different advantages of competition.

127)

Explain what is meant by "Trade-offs may occur among the six sources of competitive advantage, but this does not need to be a zero-sum game."


Answer Key Test name: chapter 1 1) FALSE 2) FALSE 3) TRUE 4) FALSE 5) FALSE 6) FALSE 7) FALSE 8) TRUE 9) TRUE 10) FALSE 11) B 12) A 13) D 14) B 15) B 16) C 17) D 18) B 19) E 20) A 21) C 22) A 23) C 24) C 25) D 26) E 27) D 28) B 29) B 30) C 31) A 32) B 33) D 34) A 35) D 36) C 37) C


38) A 39) B 40) D 41) C 42) C 43) C 44) C 45) E 46) A 47) B 48) A 49) E 50) B 51) B 52) A 53) A 54) A 55) D 56) D 57) C 58) B 59) D 60) C 61) C 62) B 63) D 64) B 65) C 66) B 67) D 68) C 69) B 70) B 71) E 72) B 73) A 74) A 75) A 76) B 77) E


78) C 79) C 80) A 81) B 82) C 83) D 84) B 85) E 86) B 87) B 88) A 89) A 90) D 91) A 92) A 93) D 94) A 95) A 96) C 97) A 98) A 99) D 100) 101) 102) 103) 104) 105) 106) 107) 108) 109) 110) 111) 112) 113) 114) 115) 116) 117)

C D A B B A D B B B C D D Essay Essay Essay Essay Essay


118) 119) 120) 121) 122) 123) 124) 125) 126) 127)

Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay


Student name:__________ 128)

The emergence of the Hawthorne effect drove managers to strive for further growth following the Industrial Revolution. ⊚ true ⊚ false

129)

Management struggled to emerge as a formal discipline after the Industrial Revolution. ⊚ true ⊚ false

130)

The systematic management approach achieved operational goals in part by standardizing techniques for performing tasks. ⊚ true ⊚ false

131)

Lillian Gilbreth focused on the human side of management and was interested in how job satisfaction motivated employees. ⊚ true ⊚ false

132)

When Josef went to college in the early 1900s, he was taught that management was a profession with five main functions. Josef was taught the administrative management approach. ⊚ true ⊚ false

133)

The ideas from the scientific management and administrative management approaches overshadowed those of the human relations approach and made it obsolete. ⊚ true ⊚ false


134)

Josey was trying to determine if playing music in the background helped or hurt productivity in the factory by alternating days with and without music, and measuring outputs. She did not let the employees know she was conducting this research because she didn’t want them to behave differently because they were being observed. This represents the Hawthorne effect. ⊚ true ⊚ false

135)

During a pandemic, many people found that they were more concerned about having a place to live and food to eat than with achieving personal fulfillment. This demonstrates Maslow’s theory of needs. ⊚ true ⊚ false

136)

If one does not anticipate change and adapt to it, one's firm will not thrive in a competitive business world. ⊚ true ⊚ false

137)

Change continually creates both new opportunities and new demands for lowering costs and for achieving greater innovation, quality, and speed. ⊚ true ⊚ false

138)

During the Industrial Revolution in the 18th and 19th century, managers who could make minor improvements in management tactics were noteworthy. Why? A) They brought robotics technology to mass production. B) They subscribed to human relations theory. C) They perfected quantitative management. D) They developed the Hawthorne effect. E) They produced impressive increases in production quantity and quality.


139)

__________ refers to reductions in the average cost of a unit of production as the total volume produced increases. A) Smoothing B) Buffering C) Systematic management D) Economies of scale E) Quantitative management

140)

Toward the end of the Industrial Revolution, in the late 19th century, several university programs offering management and business education were founded, including the Wharton School at the University of Pennsylvania. Establishment of these programs A) required federal government funding. B) was an acknowledgment of management as a formal discipline. C) was expected under the administrative management approach. D) occurred despite the inability of quantitative management to accurately model management problems. E) reflected economies of scale.

141)

Around 400 BC, __________ recognized management as a separate art and advocated a scientific approach to work. A) the Romans B) SunTzu C) the Greeks D) Adam Smith E) the Chinese

142)

Throughout history and prior to the Industrial Revolution, most managers operated by a(n) __________ basis. A) trial-and-error B) organizational behavior C) scientific management D) bureaucracy E) contingency


143)

The opportunities for mass production created by the __________ spawned intense and systematic thought about management problems and issues. A) human relations approach B) Industrial Revolution C) Great Depression D) management and business education schools E) recession of 2008

144)

The evolution of management thought is divided into __________ major sections. A) two B) three C) four D) five E) six

145)

Savon was surprised to learn that when his business grew and he needed to order more raw materials, the costs of materials and unit production were less per item. This demonstrates the concept of A) systematic management. B) economies of scale. C) Hawthorne effect. D) supplier relations. E) trial-and-error.

146)

In the development of the assembly line for the manufacture of the Model T, Ford studied and standardized the steps and equipment necessary to assemble automobiles, selecting the "the one best way" to complete tasks. In doing so, Ford used the __________ management approach. A) systematic B) bureaucratic C) scientific D) administrative E) quantitative


147)

__________ is a management approach that attempted to build into operations the specific procedures and processes that would ensure coordination of effort to achieve established goals and plans. A) Scientific management B) Administrative management C) Systematic management D) Human relations E) Bureaucracy

148)

149)

__________ helped organizations achieve goals through systematic management. A) Emphasis on the application of quantitative analysis to managerial decisions and problems B) Careful definition of duties and responsibilities C) Preservation of employees' interpersonal relationships and other human aspects of the work D) Focus on decentralization in decision making E) Encouragement of participation and provision of opportunities for individual challenge

__________ introduced the scientific management approach that advocated the application of scientific methods to analyze work and to determine how to complete production tasks efficiently. A) Frederick Taylor B) Henry L. Gantt C) Lillian M. Gilbreth D) Max Weber E) Henri Fayol


150)

Frederick Taylor's contributions to scientific management as an approach to management were significant because Taylor A) believed that supervisors could be motivated to provide training to underperforming workers. B) created the Gantt chart, which helps managers plan projects by task and time to complete those tasks. C) developed a system to lower costs and increase worker productivity by showing how employees could work smarter, not harder. D) focused less on the technical and more on the human side of management. E) advocated the use of the differential piecerate system.

151)

The critics of scientific management claimed that A) organizations that need rapid decision making and flexibility may suffer with this approach. B) managers may ignore appropriate rules and regulations. C) managers were not trained to apply the principles of the theory. D) it leads to too much authority being vested in too few people. E) it did not help managers deal with broader external issues.

152)

Bureaucracy can be defined as a classical management approach that A) applies scientific methods to analyze and determines the "one best way" to complete production tasks. B) attempts to understand and explain how human psychological and social processes interact with the formal aspects of the work situation to influence performance. C) attempts to build into operations the specific procedures and processes that would ensure coordination of effort to achieve established goals and plans. D) emphasizes the application of quantitative analysis to managerial decisions and problems. E) emphasizes a structured, formal network of relationships among specialized positions in the organization.


153)

Which statement about bureaucracies is true? A) It is rarely efficient or productive. B) It works in every organization. C) It may invest too much authority in too few people. D) Managers appreciate and always follow the rules and regulations. E) Its stability is always an advantage.

154)

One drawback of the bureaucratic approach to management is that A) production tasks are reduced to machine-like movements that lead to boredom. B) this approach may not help managers deal with competitors and government regulations. C) this approach does not generally accommodate rapid decision making and flexibility. D) this approach emphasizes only money as a worker incentive. E) this approach ensures that all employees perform their best with excessive rules and regulations.

155)

In Henri Fayol's 14 principles of management, what does initiative refer to? A) encouraging employees to act on their own in support of the organization's direction B) promoting a unity of interests between employees and management C) determining the relative importance of superior and subordinate roles D) assigning only one supervisor to each employee E) dividing work into specialized tasks and assigning responsibilities to specific individuals

156)

A Gantt chart graphs the relationships between A) speed and time. B) quality and speed. C) quality and time. D) tasks and quality. E) tasks and time.


157)

Which of Henri Fayol's 14 principles of management refers to keeping communications within the chain of command? A) discipline B) authority C) unity of command D) scalar chain E) equity

158)

Henry Fayol identified five functions of management: planning, organizing, commanding, coordinating, and controlling. These are similar to the traditional four functions of management: A) planning, organizing, leading, and controlling. B) planning, organizing, leading, and communicating. C) planning, organizing, listening, and evaluating. D) power, organization, leadership, and control. E) planning, oversight, leading, and evaluating.

159)

The __________ approach is aimed at understanding how psychological and social processes interact with the work situation to influence performance. A) scientific management B) systematic management C) administrative management D) human relations E) bureaucracy

160)

__________ refers to people's reactions to being observed or studied resulting in superficial rather than meaningful changes in behavior. A) Esprit de corps B) The division of labor C) The Hawthorne effect D) Subordination of individual interest to the general interest E) Scientific management


161)

The __________ approach was the first to emphasize informal work relationships and worker satisfaction, and it emerged from a scientific management study that resulted in the discovery of the Hawthorne effect. A) human relations B) Hawthorne studies C) bureaucracy D) administrative management E) scientific management

162)

In the classical approaches to management, proponents of the __________ approach argued that managers should stress primarily employee welfare, motivation, and communication. A) scientific management B) systematic management C) administrative management D) human relations E) bureaucracy

163)

164)

A principle of the human relations approach is that A) scientific methods should be applied to analyze work. B) social needs matter more than economic needs. C) management should cooperate with workers to ensure that jobs match plans. D) wasteful movements can be identified and removed to increase productivity. E) management is a profession and can be taught.

The __________ approach advocates that management must gain the cooperation of the group and promote job satisfaction and group norms consistent with the goals of the organization. A) systematic management B) scientific management C) administrative management D) bureaucracy E) human relations


165)

Abraham Maslow contributed to the field of human relations by A) emphasizing the maintenance of inventories to meet consumer demand. B) being concerned with meeting the explosive growth in demand brought about by the Industrial Revolution. C) suggesting that humans have five levels of needs. D) concluding that management decisions were unsystematic. E) advocating the application of scientific methods to analyze work.

166)

According to Abraham Maslow, the most advanced human need is for A) esteem. B) love or belonging. C) self-actualization. D) safety. E) homeostasis

167)

__________ is the most basic human need, as suggested by Abraham Maslow. A) Physical B) Power C) Self-actualization D) Love and belonging E) Esteem

168)

__________ argued that people try to satisfy their lower-level needs and then progress upward to the higher-level needs. A) Elton Mayo B) William Procter C) Frederick Taylor D) Abraham Maslow E) Fritz Roethlisberger


169)

A criticism of the human relations approach to management is that A) too much authority may be vested in too few people. B) rules need to be followed in a routine and standardized manner. C) the important characteristics of the formal organization are ignored. D) procedures may become the ends rather than the means. E) production tasks are reduced to a set of routine procedures that lead to quality control problems.

170)

The __________ approach to management was criticized for being too simplistic, believing that a happy worker was a productive worker. A) scientific management B) systematic management C) bureaucratic D) human relations E) administrative management

171)

The aim of the human relations approach to management was A) emphasizing economical operations, adequate staffing, maintenance of inventories to meet consumer demand, and organizational control. B) applying scientific methods to analyze work and to determine how to complete production tasks efficiently. C) eliminating the variability that results when managers in the same organization have different skills, experiences, and goals. D) emphasizing the perspective of senior managers within the organization. E) understanding how psychological and social processes interact with the work situation to influence performance.


172)

Taylor introduced the scientific management approach because he A) believed that specific procedures and processes should be built into operations to ensure coordination of effort. B) concluded that management decisions were unsystematic and that no research existed to determine the best means of production. C) emphasized economical operations, adequate staffing, maintenance of inventories to meet consumer demand, and organizational control. D) believed that bureaucratic structures can eliminate the variability that results when managers in the same organization have different skills, experiences, and goals. E) advocated that the jobs themselves be standardized so that personnel changes would not disrupt the organization.

173)

Systematic management advocated A) the application of scientific methods to analyze work and to determine how to complete production tasks efficiently. B) adequate staffing, maintenance of inventories to meet consumer demand, and organizational control. C) the importance of hiring and training a proper worker to do a particular job. D) the idea that workers were motivated by receiving money. E) a pay system in which workers were paid additional wages when they exceeded a standard level of output for each job.

174)

Which approach did not address all the issues faced by 19th-century managers, but tried to raise managers' awareness about the most pressing concerns of their job? A) human relations B) administrative management C) scientific management D) bureaucracy E) systematic management


175)

An important contribution of Frederick Taylor was his A) suggestion that managers who encourage participation and allow opportunities for individual challenge and initiative would achieve superior performance. B) development of a system to lower costs and increase worker productivity by showing how employees could work smarter, not harder. C) conclusion that management decisions were unsystematic and that no research to determine the best means of production existed. D) creation of a notion that managers desire flexibility and gave the differences between motivating groups and individuals. E) suggestion that frontline supervisors should receive a bonus for each of their workers who completed their assigned daily tasks.

176)

Lillian Gilbreth studied how job satisfaction motivated employees, how motion studies could be used to help disabled individuals perform jobs, and how fatigue and stress affected workers' well-being and productivity. Why did she focus her attention in these areas? A) She was more interested in the human side of management. B) She disavowed the usefulness of scientific management principles. C) She did not believe that bureaucratic positions can foster specialized skills. D) She realized how the piece-rate system affected productivity. E) She understood how mass production was encouraged by the Industrial Revolution.

177)

A criticism of the bureaucratic approach to management is that A) once established, it is very difficult to dismantle such an organizational structure. B) the concept that a happy worker is a productive worker is too simplistic. C) the economic aspects of the workplace are overemphasized. D) job-related factors were ignored by emphasizing only money. E) production tasks were reduced to routine procedures which led to boredom.


178)

Joshua, a floor manager in an automotive parts manufacturing plant, noted that production declined by 15 percent during a 6-month period. In an effort to understand why, Joshua moved his office to the manufacturing floor and began periodic floor "walks" over a 3-month observation period. No changes were made to personnel or to production methods during this time. After the observation period, Joshua reexamined production figures and noted that they were at an all-time high. The upturn in production was most likely due to the A) bureaucratic phenomenon. B) Pygmalion phenomenon. C) observer-expectancy theory. D) Hawthorne effect. E) systems theory.

179)

In the context of Henri Fayol's 14 principles of management, __________ refers to making expectations clear and punishing violations. A) order B) authority C) scalar chain D) subordination of individual interest to the general interest E) discipline

180)

__________ management emphasized internal operations because managers were concerned primarily with meeting the explosive growth in demand brought about by the Industrial Revolution. A) Scientific B) Systematic C) Administrative D) Bureaucratic E) Quantitative

181)

__________ introduced the scientific management approach in response to the failure of systematic management to bring about widespread production efficiency. A) Adam Smith B) Frederick Taylor C) Max Weber D) Henri Fayol E) Abraham Maslow


182)

How was Frederick Taylor's principle of the piecerate system beneficial to workers and managers? A) The piecerate system increased the number of motions necessary to accomplish tasks. B) The piecerate system incentivized workers to accomplish more, as well as earn more money for themselves. C) The piecerate system exemplified the Hawthorne effect. D) The piecerate system highlighted the contingency perspective. E) The piecerate system paid workers equally, despite differences in productivity.

183)

According to Max Weber, bureaucratic positions foster specialized skills, eliminating A) the need for skilled workers. B) many subjective judgments by managers. C) authority that resides in positions. D) the need for rules and controls. E) the need for organization.

184)

The __________ approach to management ignored the more rational side of the worker and the important characteristics of the formal organization. A) scientific B) systematic C) human relations D) sociotechnical E) bureaucratic

185)

Why did Henry Gantt suggest that frontline supervisors should receive a bonus for each of their workers who completed their assigned daily tasks? A) Stronger employees would be motivated to do some of the work of the weaker employees. B) More productive employees would prefer a flat daily wage rather than a piecerate system. C) Supervisors would be motivated to provide extra attention and training to weaker employees. D) Top-level managers would be motivated to do the work of the supervisors. E) Supervisors would focus on meeting the human needs of their employees rather than their productivity.


186)

Taylor's theory is criticized because it A) ignored job-related social and psychological factors by emphasizing only money as a worker incentive. B) was vested in too many people. C) was too simplistic to be applicable to the real world. D) treated the principles as universal truths for management. E) promoted a unity of interest between employees and management.

187)

According to Henri Fayol's 14 principles of management, __________ refers to promoting a unity of interest between employees and management. A) remuneration B) discipline C) esprit de corps D) centralization E) scalar chain

188)

Donna gives her employees a monthly bonus when they exceed the company’s goals. According to Henri Fayol's principles of management, which principle of management is Donna using to motivate her employees? A) remuneration B) centralization C) scalar chain D) equity E) esprit de corps

189)

Horace subscribes to the management theory that everyone works better when they have the right tools for the job and know what to do with them, which in turn keeps customers happy. Which theory does Horace embrace? A) scientific management theory B) sociotechnical systems theory C) human relations theory D) bureaucratic theory E) quantitative management theory


190)

__________ is a contemporary approach to management. A) Scientific management B) Human relations C) Administrative management D) Systematic management E) Quantitative management

191)

The __________ approach to management owes much to other major schools of thought, for example, the Gilbreths and Barnard and Follett. A) administrative management B) systematic management C) scientific management D) human relations E) bureaucracy

192)

The classical approaches as a whole were criticized because A) they overemphasized the relationship between an organization and its external environment. B) they assumed employees wanted to work and could direct and control themselves. C) most managers were not trained in using the classical approaches. D) they usually stressed one aspect of an organization or its employees at the expense of other considerations. E) many aspects of a management decision could not be expressed through mathematical symbols and formulas.

193)

The systems theory emphasizes A) that an organization is one system in a series of subsystems. B) a piecerate system in which workers are paid additional wages when they exceed a standard level of output for each job. C) a system that suggests that frontline supervisors should receive a bonus for each of their workers who completed their assigned daily tasks. D) a system to lower costs and increase worker productivity by showing how employees could work smarter, not harder. E) that organizations are effective when they have the social system and the technical system to make products and services that are valued by customers.


194)

__________ are inputs used by organizations. A) Raw materials B) Trademarks C) Esprit de corps D) Contingencies E) Incentives

195)

Research on __________ promoted the use of teamwork and semiautonomous work groups as important factors for creating efficient production systems. A) organizational behavior B) bureaucracy C) sociotechnical systems theory D) human relations E) administrative management

196)

197)

Which statement about the sociotechnical systems theory is true? A) Most organizations did not adopt the sociotechnical systems theory for management problems until the year 2000. B) It was the first major approach to emphasize informal work relationships and worker satisfaction. C) It was developed in the early 1950s by researchers from the London-based Tavistock Institute of Human Relations. D) It emphasized the perspective of senior managers within an organization. E) It emphasized a structured, formal network of relationships among specialized positions in an organization.

Which is the best theory for managers to use to compare alternatives and eliminate weaker options? A) quantitative management B) organizational behavior C) the sociotechnical systems theory D) the contingency perspective E) administrative management


198)

The use of quantitative management is limited because A) it is difficult to discontinue the use of this process once it has been established. B) many of the decisions managers face are nonroutine and unpredictable. C) managers are oriented more toward things than toward people. D) it holds that all aspects of a management decision should be expressed through mathematical symbols and formulas. E) it posits that economic needs have precedence over social needs.

199)

The __________ approach to management has been used in a limited manner because many aspects of a management decision cannot be expressed through mathematical symbols and formulas. A) organizational behavior B) systematic management C) quantitative management D) human relations E) administrative management

200)

__________ is a contemporary management approach that studies and identifies management activities that promote employee effectiveness by examining the complex and dynamic nature of individual, group, and organizational processes. A) Quantitative management B) Organizational behavior C) Systems theory D) Contingency perspective E) Sociotechnical systems theory

201)

A manager who follows __________ assumes workers are lazy and irresponsible and require constant supervision and external motivation to achieve organizational goals. A) Theory X B) sociotechnical systems approach C) bureaucracy approach D) human relations approach E) Theory Y


202)

When a manager treats employees as lazy, unmotivated, and in need of tight supervision, the employees eventually meet the manager's expectations by acting that way. According to Douglas McGregor, this is known as a(n) A) contingency. B) Hawthorne effect. C) physiological need. D) self-fulfilling prophecy. E) bureaucratic approach.

203)

McGregor advocated a __________, suggesting that managers who encourage participation and allow opportunities for individual challenge and initiative would achieve superior performance. A) Theory X perspective B) Theory Y perspective C) bureaucratic approach D) human relations approach E) contingency perspective

204)

A feature of organizational behavior is that A) the more recent contributions made by organizational behavior have a narrower viewpoint. B) unlike other approaches, it has always been appreciated for its broad perspective. C) it does not address factors like employee involvement and self-management. D) through the years, organizational behavior has consistently emphasized development of an organizations' human resources to achieve organizational rather than individual goals. E) in the past few years, many of the primary issues addressed by organizational behavior have experienced a rebirth with a greater interest in leadership.


205)

Organizational behavior A) does not address factors like self-management. B) has always been appreciated for its broad perspective, unlike other approaches. C) relies upon mathematical models to solve management problems. D) emphasizes development of an organization's human resources to achieve individual goals. E) has had its primary focus shift away from leadership and employee involvement in the past few years.

206)

The classical approaches to management as a whole were criticized because A) the relationship between an organization and its external environment was ignored. B) most managers were not trained to use these techniques. C) many aspects of a management decision could not be expressed through mathematical symbols and formulas. D) many of the decisions managers faced were nonroutine and unpredictable. E) there was only "one best way" to manage and organize because circumstances vary.

207)

Organizations are open systems, and they are dependent on __________ from the outside world, such as raw materials, human resources, and capital. A) contingencies B) inputs C) intangibles D) control systems E) outputs

208)

The contingency perspective refutes universal principles of management by stating that a variety of factors, both internal and external to the firm, may affect an organization's performance. Thus, according to this management approach, A) there is no "one best way" to manage and organize because circumstances vary. B) a Gantt chart is not an appropriate tool for planning. C) planning cannot be one of the four functions of management. D) external factors, internal strengths and weaknesses, and skills of managers and workers should not be considered in planning, organizing, leading, or controlling. E) bureaucratic rules and controls are of major importance.


209)

__________, in the context of the systems theory, are situational characteristics. A) Systems B) Additions C) Experiments D) Inventories E) Contingencies

210)

In the systems theory, understanding __________ helps a manager know which sets of circumstances dictate which management actions. A) inputs B) physical needs C) economies D) contingencies E) outputs

211)

The values, goals, skills, and attitudes of managers and workers in an organization are examples of A) inventories. B) outputs. C) esprit de corps. D) tasks. E) contingencies.

212)

Managers will use the methods of quantitative management as __________ in the decision process. A) absolute truth B) a supplement C) definitive D) the only valid approach E) worst case


213)

Managers who subscribe to McGregor's Theory X must watch out for__________, which can have several negative implications for managers, employees, and organizations. A) the contingency perspective B) a self-fulfilling prophecy C) predicted performance D) individual challenges E) the Hawthorne effect

214)

Understanding __________ helps a manager know which sets of situational circumstances dictate which management actions. A) contingencies B) self-fulfilling prophecies C) organizational culture D) management styles E) control systems

215)

One of the major contributions of Peter Drucker was the A) discovery that great companies are managed by "level-5 leaders" who often display humility while simultaneously inspiring those in the organization to apply selfdiscipline. B) focus on organizational change. C) ability of U.S. firms to fight their competition by refocusing their business strategies on several drivers of success like people and customers. D) focus on the strategic and organizational challenges confronting managers in multinational corporations. E) need for organizations to set clear objectives and establish the means of evaluating progress toward those objectives.


216)

Which statement about the contribution made by Jack Welch toward management thought and practices is true? A) He is known for being the first person to discuss "management by objective" (MBO), by which a manager should be self-driven to accomplish key goals that link to organizational success. B) He established the need for organizations to set clear objectives and establish the means of evaluating progress toward those objectives. C) He contends that bureaucratic structures can eliminate the variability that results when managers in the same organization have different skills, experiences, and goals. D) He advocated the application of scientific methods to analyze work and to determine how to complete production tasks efficiently. E) He is widely viewed as having mastered "all of the critical aspects of leadership: people, process, strategy and structure."

217)

218)

With respect to change in the context of managerial approaches, A) the best managers today embrace change by moving from contemporary managerial approaches to classic managerial approaches. B) if managers do not anticipate change and adapt to it, the firm will not thrive in a competitive business environment. C) management knowledge and practices remain constant in the face of change. D) change prevents businesses from achieving greater quality and speed. E) change is happening at a slower rate than at any other time in history.

In her book, Lean In: Women, Work and the Will to Lead, Sheryl Sandberg discusses the challenges women (including mothers) face in a workplace in which A) sexism and pay inequities remain. B) women should be more reactive, and less proactive, in addressing challenges. C) women should take fewer risks. D) women should pursue more traditional occupations. E) women should defer to men during negotiations.


219)

Peter Drucker was the first person to discuss __________, by which a manager should be self-driven to accomplish key goals that link to organizational success. A) level-5 leaders B) competitive strategy C) management by objective D) the management educator E) the Hawthorne effect

220)

Peter Drucker championed several ideas that continue to be influential to this day, including employees as A) tools. B) assets. C) means to an end. D) liabilities. E) expendable.

221)

Peter Senge of MIT Sloan School of Management has made several significant contributions to the areas of organizational A) learning and change. B) stability and predictability. C) profitability and quality. D) philanthropy and ethics. E) bureaucracy and controls.

222)

"Simon, please be sure to clock in before you report to work, and tell your supervisor in advance if you are going to be late. We follow the bureaucracy approach to management because A) decision making in a bureaucracy is always the most rapid." B) I do not need to be involved in solving problems." C) flexibility is always important." D) efficiency and success are realized by following the rules in a routine and unbiased manner." E) a bureaucracy is always the most appropriate model for an organization."


223)

Nancy Williams, Chief Operating Officer of Glenmore Products, told her human resources manager, "Obviously, the individual managers in our organization have different skills. But, following our implementation of a(n) __________ approach, our management has been much more successful, consistent, and efficient in decision making—including for issues that are nonroutine and unpredictable. Much of the variability has been successfully eliminated." A) bureaucratic B) administrative C) human relations D) quantitative management E) flexible

224)

A manager had to complete an important project that had a "near impossible" deadline. Instead of assuming that offering financial incentives would be the best way to get the work done, she found that some of her team members craved recognition, whereas others wanted more influence in the organization. With this information, she was able to offer the right incentive to each person. As a result, her team was able to meet the deadline. Susan was using A) the Hawthorne effect. B) the contingency perspective. C) centralization. D) bureaucracy. E) economies of scale.

225)

"With the computing power available today, I'm surprised that the quantitative management approach is not widely used to make management decisions and solve management problems," said Pablo. "I believe that there are several explanations for the limited use of quantitative management. For example, __________," replied his manager. A) all managers have been trained to use quantitative management B) many of the decisions managers face are nonroutine and unpredictable C) all management decisions can be expressed with mathematical symbols and formulas D) managers will use results obtained by quantitative management even if the results are not consistent with the managers' experience, intuition, and judgment E) quantitative management is never used in production or quality control


226)

"Stella, I have enjoyed mentoring you. Now, let's summarize what we have discussed about change. First, change is happening more rapidly and dramatically than at any other time in history. Second, if you don't anticipate change and adapt to it, you and your firm __________," explained Stella’s mentor. A) will nonetheless thrive due to decreasing globalization B) will not thrive in a competitive business world C) will not thrive unless you eliminate flexible work arrangements like virtual teamwork D) will nonetheless thrive if you decrease costs E) will not thrive unless employee skills are held static, meaning they are unchanged

227)

"A very powerful tool for showing our project progress is the Gantt chart. We will review and update it in each weekly progress meeting. The Gantt chart helps us plan projects by showing us the relationship between __________," said the project manager. A) quality and time B) tasks and time C) costs and time D) costs and tasks E) quality and tasks

228)

Tonya is an intelligent, enthusiastic, and hardworking employee. Yet her manager constantly corrects her and downplays her accomplishments. Sandra's manager is applying Douglas McGregor's Theory X. Why do you think that he uses this approach? A) He believes that there is no "one best way" to manage. B) He believes that workers are lazy, irresponsible, and require constant supervision. C) He believes that Sandra's needs for self-fulfillment are met by Abraham Maslow's hierarchy of needs. D) He believes that promoting esprit de corps—a unity of interests between employees and management—is important. E) He believes in management by objective (MBO).


229)

"Jack, Clara is your best worker even though she is relatively new, and she has a great attitude," said Daphne, Jack’s manager. "I advise you to stop yelling at her and nitpicking her work." In the context of McGregor's Theory X, what might happen if Jack does not heed Daphne’s advice? A) Clara will begin acting in a lazy and unmotivated fashion, requiring tight supervision (self-fulfilling prophecy). B) Clara will begin seeking outlets for her creative talent (contingency). C) Clara will aspire toward a career in the profession of management (administrative effect). D) Clara will seek alternative approaches to her work (flexible process). E) Clara will seek to accomplish more with less (economy of scale).

230)

Ulrich manages with McGregor's Theory X in mind, and, as a result, his employee, Destiny, is losing interest in her job. If Ulrich could abandon his current beliefs, he might instead acknowledge that there is "no one best way" to manage. He might consider Destiny’s values, goals, skills, and attitudes, along with other factors, both internal and external to the firm, to improve performance. If so, he would be using the A) quantitative management approach. B) scientific management approach. C) contingency perspective. D) bureaucracy approach. E) the Hawthorne effect.

231)

"At Bogue Corporation we align our individual goals with the company's goals. That is, as managers, we use __________ to drive ourselves and our employees to accomplish key goals that are linked with the company's success," said Bogue’s CEO. A) remuneration B) contingency management C) quantitative management D) management by objectives E) time-and-motion studies


232)

Describe the systematic approach to management.

233)

What are the four principles of scientific management as identified by Frederick Taylor?

234)

In the context of Frederick Taylor's theory of scientific management, discuss time-andmotion studies and the differential piece-rate system.

235)

What was Henry L. Gantt's contribution to scientific management?

236)

What are the shortcomings of Max Weber's bureaucratic approach to management?


237)

Who created the broad framework for administrative management, and what did it entail?

238)

What is the Hawthorne effect? How did it lead to changes in management perspective?

239)

Discuss quantitative management as a contemporary approach to management.

240)

Compare and contrast Douglas McGregor's Theory X and Theory Y, including the selffulfilling prophecy.

241)

Describe the contingency perspective of management.


242)

Explain the influence Peter Drucker’s contributions have had on the practice of management.

243)

The theme of change is ever present. Identify ongoing changes in the world that will affect your career.


Answer Key Test name: chapter 2 1) FALSE 2) FALSE 3) TRUE 4) TRUE 5) TRUE 6) FALSE 7) TRUE 8) TRUE 9) TRUE 10) TRUE 11) E 12) D 13) B 14) C 15) A 16) B 17) A 18) B 19) C 20) C 21) B 22) A 23) E 24) E 25) E 26) C 27) C 28) A 29) E 30) D 31) A 32) D 33) C 34) A 35) D 36) B 37) E


38) C 39) C 40) A 41) D 42) C 43) D 44) E 45) B 46) B 47) E 48) C 49) A 50) A 51) D 52) E 53) B 54) B 55) B 56) B 57) C 58) C 59) A 60) C 61) A 62) B 63) E 64) D 65) D 66) A 67) A 68) C 69) C 70) A 71) B 72) C 73) B 74) A 75) D 76) B 77) E


78) D 79) A 80) B 81) A 82) E 83) D 84) E 85) B 86) B 87) A 88) E 89) E 90) B 91) A 92) C 93) B 94) A 95) D 96) A 97) B 98) B 99) B 100) 101) 102) 103) 104) 105) 106) 107) 108) 109) 110) 111) 112) 113) 114) 115) 116)

B B A C D Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay


Student name:__________ 244)

Open systems are all relevant forces outside an organization's boundaries. ⊚ true ⊚ false

245)

The government has very little immediate effect on business opportunities in the U.S. ⊚ true ⊚ false

246)

When an industry matures, profits drop. Weaker companies are eliminated, and the strong companies survive. ⊚ true ⊚ false

247)

Established companies are less threatened by new competitors when there are many barriers to entry. ⊚ true ⊚ false

248)

Environmental uncertainty means that managers need to implement controls to be sure they aren’t harming the physical environment. ⊚ true ⊚ false

249)

Benchmarking is the process comparing an organization's practices and technologies with those of other companies. ⊚ true ⊚ false

250)

Divestiture is entering a new market or industry with existing expertise. ⊚ true ⊚ false


251)

A small company that makes face masks for health care workers has decided to donate hundreds of masks to nursing homes in its area. This demonstrates the independent strategy of influencing stakeholders known as competitive pacification. ⊚ true ⊚ false

252)

When Maria started her telemarketing business, she organized the space with individual cubicles for privacy; provided ergonomic chairs for all employees; and encouraged a casual, comfortable dress code. Maria was focusing on the visible artifacts of the office. ⊚ true ⊚ false

253)

One recommended way to understand a company’s culture is to listen to the stories people tell about the company. ⊚ true ⊚ false

254)

__________ is/are composed of all relevant forces outside a firm's boundaries, such as competitors, customers, the government, and the economy. A) The external environment B) Open systems C) Relative constraints D) The barriers to entry domain selection E) Conditions of certainty

255)

Advances in genetic engineering are expected to produce some food products that will become available all year round even in continental climates. These changes will provide grocers with an opportunity to reduce their shipping costs while offering fresher produce to their customers. These advances are examples of changes in the __________ environment. A) technological B) social C) legal D) demographic E) internal


256)

A clothing importer/exporter in England is worried that the British exit from the EU (Brexit) will result in new tariffs applied to clothing unless a trade agreement with the EU is reached. Which component of the macroenvironment concerns this company? A) technological B) social C) economic D) demographic E) internal

257)

When considering workforce demographics, hiring managers must remember that the fastest-growing age group will be workers who are A) 25 – 35 years old. B) 35 – 50 years old. C) 50 – 60 years old. D) 60 – 65 years old. E) 75 years old and older.

258)

When Johnson & Johnson created reservable lactation rooms for employees so that mothers could work quietly and nurse privately, it was addressing which element of the macroenvironment? A) technological B) social C) economic D) competitive E) internal

259)

__________ is the immediate environment surrounding a firm, including suppliers, customers, rivals, and the like. A) Demographic environment B) Competitive environment C) Microenvironment D) Exosystem E) Open system


260)

Netflix, Amazon, and Disney+ have emerged as serious and successful content providers, attracting viewers away from traditional networks such as ABC, CBS, and NBC. The success of these nontraditional providers demonstrates the power in the competitive environment held by new competitors, or new entrants to the marketplace. To effectively compete with these new entrants, executives at traditional networks will take advantage of barriers to entry, such as A) buffering. B) distribution channels. C) complements. D) smoothing. E) substitutes.

261)

Jocko, a new manager at Super Sandwiches, has been asked to focus on the competitive environment of the organization. Which factor is among those that Jocko should focus on? A) government policies B) brand identification C) suppliers D) technology E) social factors

262)

A popular low-cost airline, Savor Airways, has gone out of business. Although the service and price provided by the airline was what customers wanted, the larger airlines were able to drive the low-cost airline out of business through an aggressive price war. Which component of the competitive environment does this illustrate? A) customers B) competitors C) regulators D) economic factors E) threat of new entrants


263)

__________ occurs when weaker companies are eliminated, and the strong companies survive. A) Cannibalization B) Downsizing C) Scaffolding D) Industry shakeout E) Economic fluctuation

264)

__________ are conditions that prevent new companies from establishing themselves in an industry. A) Demographics B) Industry shakeouts C) Prospectors D) Zero-profit conditions E) Barriers to entry

265)

266)

__________ is/are a common barrier to entry. A) Distribution channels B) Final consumers C) Bargaining power of buyers D) Demographics E) Switching costs

Juan Carlo owns a janitorial service company. Over the past five years, the bulk of his business, about 80 percent, has derived from a long-term service contract with the federal government. He learned today that his company will not be awarded an extension of the contract, and thus his company's work for the government client must cease within 30 days. The very negative impact of this decision on Juan Carlo’s company is a reminder that A) contracting with the federal government is not profitable over the long term. B) a firm that does not achieve affirmative action goals must implement a corrective action plan. C) government clients cannot be relied upon to be good business partners. D) long-term services contracts are not good for business. E) an organization is at a disadvantage if it depends too heavily upon powerful customers.


267)

Hospitals and universities are very expensive to start and keep running because of the capital and equipment required. The personnel requirements, such as specialized medical doctors and researchers, are also high. This demonstrates A) protectionism. B) buffering. C) barriers to entry. D) smoothing. E) downsizing.

268)

Carrell Foods is a major supplier to many grocery store chains. It has most of the valuable shelf space in the cereal aisle. What is true based on this information? A) There are few entry barriers. B) Government regulation of cereals is high. C) The threat of new entrants is low. D) Carrell Foods has no or weak distribution channels. E) Carrell Foods has limited brand identification.

269)

The main difference between final consumers and intermediate consumers is that final consumers A) pay cash. B) use products themselves. C) purchase more than intermediate consumers. D) are not as flexible as intermediate consumers. E) do not have any bargaining power.

270)

Caralee presented to her boss the possibility of building a new manufacturing plant to serve a new, hot market. Her boss replied, "Caralee, I can't support that. Three multinational firms, who are world-class in terms of global reach, influence, stability, and financial depth, will be competing for that market. Not only would we be a new entrant to the playing field, the barriers to entry are just too high for us. We are small and financial resource-limited, so we would be challenged to meet the market's __________ requirements." A) capital B) demographic C) buffering D) domain selection E) public relations


271)

The manager of operations at Beta Industries, has decided to change careers. For years, the company has been a market leader in manufacturing DVD players, but sales—and the manager’s advancement opportunities—have been declining for years. He told his wife, "Recent __________ have allowed smartphones and streaming to emerge as substitutes for DVD players. That's reality, and I need to face it." A) barriers to entry B) smoothing strategies C) benchmarking trends D) buffering strategies E) technological advances

272)

Waldo, a regional sales manager, was asked to analyze whether his company should launch a marketing effort to become Fancy Foods' produce supplier this year. He found that Fresh Green Veggies currently has a supply contract with Fancy Foods that has three more years in its term; Fancy Foods would have to pay Fresh Green a half million dollars to break the contract. Also, Fresh Green has installed automated ordering/billing software in Fancy Food’s home office; Fancy Foods would have to spend $100,000 to replace it and retrain its staff. He concluded that Fancy Foods' __________ costs would be too high to seriously consider a change in supplier, thereby recommending that a marketing effort not be launched this year. A) capital B) operating C) switching D) labor E) cooptation

273)

Jasper Products is the only provider of a patented leakproof valve for industrial applications. Arnold Construction wants to include Jasper Products in a project for Arnold’s customer, thereby increasing the chance that Arnold will be selected to perform the project. However, Jasper Products charges a premium price for its valves, eroding Arnold’s profitability. This situation is indicative of the high bargaining power of A) customers. B) suppliers. C) substitute companies. D) competitors. E) complementary firms.


274)

Associated Bank Corp. utilizes the janitorial services of Clean-It Corp. to keep its buildings clean. Clean-It Corp. provides all the necessary cleaning supplies, training, background security checks, and all other associated expenses. The other available janitorial services do not typically provide security checks, and a client such as a bank would have to hire guards to watch the work of the janitors. If Associated Bank were to consider hiring another cleaning service to replace Clean-It Corp., the bank would most likely incur A) high employment costs. B) unfavorable supplier status. C) high switching costs. D) favorable quality status. E) complementary products.

275)

Josiah is the marketing manager in a firm that sells air pollution control systems to the coal-fired power industry. His business is highly competitive, with existing rivalries and new players. Coal-fired power plants are being shut down in favor of substitute forms of energy, e.g., wind and natural gas. Thus, new project opportunities in coal-fired power plants are rare. His clients (electric utility companies) have many choices of providers and technologies. Josiah's firm has long-term pricing agreements with its equipment suppliers, so Josiah knows what external costs his firm will incur on potential new projects. The competitive force that appears to represent the lowest risk to Josiah's firm is A) competition between existing rivals. B) impact of new competitors. C) power of suppliers. D) power of customers. E) impact of substitute or complement services or products.

276)

Your company has asked you to launch a new product campaign at a trade show. You have found that there are established competitors with many advantages, making it difficult to break into the market. However, you recommend displacing these competitors' business by A) establishing an inefficient supply chain. B) offering promotions and price breaks, intensive selling, and other tactics. C) using competitors' brand identification. D) increasing costs of production. E) introducing the product at a higher price.


277)

"Last month, I opened a résumé-writing business out of my dorm room. And, now, on this floor alone, I find that I have three start-up competitors!" complained Aurora. Her roommate replied, "Well, at least you haven't had to buy any new equipment for your business. But apparently neither have your competitors." This scenario indicates the A) high bargaining power of suppliers when the market is weak. B) high threat of new entrants when capital requirements are low. C) high threat of new entrants when substitute products are few. D) high bargaining power of customers when suppliers are few. E) low bargaining power of customers when suppliers are numerous.

278)

Competition is most intense when there are __________ direct competitors, industry growth is slow, and the product or service cannot be differentiated. A) few B) many C) some D) no E) limited

279)

__________ is/are a major barrier to entry. A) Price reductions B) Brand identification C) Advertising campaigns D) Substitutes E) Environmental uncertainty

280)

A compliment is a potential ________ because customers purchase and use it alongside another item the company sells. A) B) C) D) E)

threat opportunity strength weakness minimization


281)

If buyers change suppliers, they are faced with A) switching costs. B) increased global competition. C) supply chain insufficiency. D) unforeseen logistics. E) observational inadequacy.

282)

A __________ is an intermediate consumer. A) wholesaler B) manufacturer's representative C) distributor D) retailer E) broker

283)

Identify the environmental factor that contributes to an attractive environment for existing firms. A) many barriers to entry B) high threat of entry C) many competitors D) few suppliers E) many substitutes

284)

Identify the environmental factor that is a characteristic of an attractive environment for a business. A) low customer bargaining power B) few entry barriers C) many competitors D) many substitutes E) complementary products


285)

Dennis, a senior manager at VPR Corporation, is considering the acquisition of a revolutionary water treatment technology from a small development firm. The asking price is $5 million. However, the environmental uncertainty of the water treatment marketplace is both complex and dynamic. Dennis wants to acquire the new technology but seeks to manage the risk associated with his decision, or "hedge his bets." Key ways to cope with the uncertainty would be to A) gain competitive intelligence through environmental scanning, develop business scenarios, forecast sales, and benchmark the technology. B) diversify, merge, divest, prospect, or defend the technology. C) establish visible artifacts; develop symbols, rites, and ceremonies; and develop stories about the technology. D) decide upon a clan (collaborate), adhocracy (create), hierarchy (control), or market (compete) culture from which to market the technology. E) buffer, smooth, and empower in order to manage the technology supply chain.

286)

Sanjay, a long-term and successful sales professional for DiscDrives Inc., has gained a vast degree of competitive intelligence in his 25 years with DiscDrives. He walked into his manager's office and said, "Daniel, for family reasons, I need to move out of state. Therefore, I've accepted a position with a competitor. I'm submitting my two weeks' notice. This isn't personal; you've been a great friend." Daniel replied, "Sanjay, I'm sorry to hear this. I will truly miss you and your contributions. However, your two weeks' notice will not be required. I will walk with you to human resources right now to process your resignation, and then we will escort you to the door." Daniel’s rather terse response was intended to quickly remove Sanjay from DiscDrives’ premises. Why? A) Daniel wanted to help Sanjay move quickly and wanted him to become successful in his new position, even though he would be a competitor soon. B) Sanjay was an average performer and Daniel wanted to process the resignation quickly to hire a more qualified person. C) It is evident that Daniel does not like Sanjay. D) Sanjay has lost his competitive intelligence and needs to be removed quickly. E) Daniel wants to ensure that a soon-to-be competitor will not have ongoing access to DiscDrives’ competitive intelligence and staff through Sanjay.


287)

A division manager for Rinte Corporation told his subordinate, "Samantha, because this is your first year of budget planning for your department, I need you to __________, defining a best-case, a worst-case, and a plausible-case business, or middle-ground business, outlook. The plausible-case business outlook will be what you will use for budget planning." A) do some buffering B) develop competitive intelligence C) create an environmental scan D) give me some benchmarks E) produce different scenarios

288)

Because his firm's product market share has declined in the past 12 months, the sales manager for AtoZ Group instructed his marketing professional to perform a benchmarking analysis. What would you instruct the marketing professional do for this analysis? A) identify key staff working for competitors B) forecast sales by competitors C) analyze competitors' customer demographics D) identify competitors' best processes and compare with RLC's processes E) develop scenarios for competitors

289)

__________ refers to searching for information that is not immediately evident and sorting through that information to interpret what is important. A) Competitive skimming B) Data classification C) Environmental scanning D) Knowledge browsing E) Information foraging


290)

In an attempt to improve customer service, Terrific Toys decided to assign a team to investigate the kinds of services offered by competing companies. The team discovered that a smaller company, GV Games Corp., seemed to have outstanding customer service. The team then determined the major differences between the two companies and developed a plan to incorporate the best elements of GV Games into Terrific Toys. What tool is being implemented by Terrific Toys? A) environmental dynamism B) strategic maneuvering C) cooperative action D) benchmarking E) forecasting

291)

__________ is the number of issues to which a manager must attend and the degree to which they are interconnected. A) Complexity B) Dynamism C) Environmental uncertainty D) Continuous change E) Minimization

292)

293)

__________ is the degree of discontinuous change that occurs within the industry. A) Complexity B) Dynamism C) Environmental uncertainty D) Interconnectedness E) Buffering

What method is used to predict exactly how some variable or variables will change in the future? A) environmental scanning B) sorting information C) forecasting D) searching E) competitive intelligence


294)

__________ includes searching for and sorting through information about the environment. A) Environmental scanning B) Forecasting C) Predictions D) Competitive intelligence E) Minimization

295)

Forecasts are most useful when the __________ will look radically different from the __________. A) past; future B) future; past C) present; future D) present; past E) future; present

296)

Antonia Sorez is the CEO of a nationwide computer purchasing and repair chain. Observing that the number of computer technology stores in the Northeast is so great that prices and margins have been driven downward, she has decided not to open any more outlets in that region. In the context of the competitive environment, this fact is an indication of the A) high bargaining power of suppliers. B) high pricing power of suppliers. C) high bargaining power of customers. D) low bargaining power of customers. E) low threat of new entries.

297)

__________ is the information necessary to decide how to best manage the competitive environment. A) Business acumen B) Lift coefficient C) Competitive intelligence D) Hidden agenda E) Environmental scanning


298)

You have been asked to report on the competitive environment in the restaurant industry; therefore, you develop the __________ necessary to decide how to manage in the given environment. A) historical trends B) competitive intelligence C) switching costs D) benchmarking E) barriers to entry

299)

Cho, a financial analyst at a small food-processing company, was asked by the CFO to forecast the costs of the company's required raw materials over the next five years. You would advise her to collect data carefully, A) use simple forecast models, and make multiple forecasts to get an average. B) use complex forecast models, and make multiple forecasts to get an average. C) use a simple forecast model, rely on increased accuracy farther into the future. D) use a simple forecast model, do not allow for any unexpected events. E) use a complex forecast model, do not rely upon it alone.

300)

__________ is the process of sharing authority with employees to enhance their confidence in their ability to perform their jobs and contribute to an organization. A) Empowerment B) Licensing C) Vetoing D) Endorsement E) Concurrence

301)

In __________, supplies of excess resources are created in case of unpredictable needs. A) hoarding B) smoothing C) yielding D) flocking E) buffering


302)

Suri owns a small gift shop in Chicago. She hopes the economy will rebound this fall as she has to order her Christmas merchandise and other holiday gifts in February. She wants to make sure she has enough goods for the surge in sales that the holiday season usually brings to her retail store, so she orders more than the previous year. Here, Suri is using __________ to be sure she has enough gifts for those extra customers that she hopes will bear the economic woes and shop for holiday presents. A) substitutes B) smoothing C) complements D) buffering E) demographics

303)

The use of contingent workers in the U.S. labor force due to unpredictable labor demand is an illustration of A) adapting at the core. B) process flexibility. C) buffering. D) smoothing. E) empowerment.

304)

When America’s Fruit Juice Company acts on its own to promote the fruit juice industry as a whole, the company is practicing A) competitive aggression. B) competitive pacification. C) public relations. D) voluntary cooptation. E) cooperative action.

305)

When Vermont Syrups advertises its syrup products as better and healthier than the syrup products of Maple Goodness, Vermont Syrups is demonstrating A) competitive aggression. B) competitive pacification. C) benchmarking. D) smoothing. E) cooptation.


306)

__________ is leveling normal fluctuations of demand at the boundaries of an environment, such as when clothing stores put their coats on sale in late winter. A) Smoothing B) Buffering C) Sifting D) Flexing E) Skirting

307)

__________ are methods for adapting the technical core of a company’s products to changes in an environment. A) Supply chain actions B) Flexible processes C) Independent strategies D) Cooperative strategies E) Technical acquisitions

308)

__________ are approaches used by an organization that acts on its own to influence stakeholders or change some aspect of its current environment. A) Flexible processes B) Forecasting methods C) Independent strategies D) Benchmarking procedures E) Buffering techniques

309)

A university is struggling financially, and has just formed a board of trustees and invited 25 of its wealthiest alumni to join the board. What process is being adopted by the university? A) smoothing B) cooptation C) competitive intelligence D) divestiture E) scaffolding


310)

Todd Hospital Systems and Gary Medicines Corp. have joined forces to fight for health care reform. The two companies A) have merged. B) are creating a coalition. C) have selected a domain. D) are benchmarking. E) are acting with competitive aggression.

311)

Domain selection, diversification, mergers or acquisitions, and divestitures are all examples of A) cooperative strategies. B) voluntary action. C) strategic maneuvering. D) independent strategies. E) competitive pacification.

312)

Country Farms Corp. announced that it was selling off its dairy division in order to realign itself more competitively in the marketing of its other products. This is an example of managing the task environment through A) diversification. B) acquisition. C) merger. D) divestiture. E) domain selection.


313)

Antonio owns a local men's clothing store. In the face of increasing competition, Antonio has tried several tactics: aggressively promoting price-slashing sales to drive his competitors' customers to his doors; attempting to cut costs by leveling out sales and inventory through seasonal sales; and lining up contracts with wholesalers in advance of seasonal rushes (e.g., summer swimwear) to prevent inventory depletion. None of these tactics has been successful. Now, Antonio is considering a deviation from his current business to one that might be more suitable, perhaps a formal wear/tuxedo rental and retail shop or a boutique Western wear store. Swen is using __________ as his final tactic to save his business. A) independent action B) domain selection C) cooptation D) buffering E) smoothing

314)

__________ is an organization's conscious efforts to change the boundaries of its competitive environment. A) Independent action B) Cooperative strategy C) Strategic maneuvering D) Public relations E) Flexible processing

315)

316)

__________ occurs when a company sells one or more businesses. A) Diversification B) Cooptation C) Acquisition D) Divestiture E) Merger

__________ are companies that stay within a limited, stable product domain as a strategic maneuver. A) Adopters B) Accommodators C) Protectors D) Sponsors E) Defenders


317)

When sales of its personal computers started to level off, Apple Computer added music players and cellular phones to its product line. In terms of strategic maneuvering, what type of company is Apple? A) Adopter B) Accommodator C) Defender D) Sponsor E) Prospector

318)

__________ is independent action to improve relations with competitors. A) Competitive intelligence B) Coalition C) Cooptation D) Competitive aggression E) Competitive pacification

319)

__________ refers to absorbing new elements into an organization's leadership structure to avert threats to its stability or existence. A) Coalition B) Contracting C) Cooptation D) Buffering E) Smoothing

320)

Barley owns and operates a food truck in a large city. Competitors are many, and competition is fierce. Due to her small business's size, she cannot realistically influence her business environment. However, Barley could take steps to adapt to the uncertain environment by buffering, including A) slashing her food prices to force her competitors to do likewise city-wide. B) sponsoring local events to establish and maintain a positive brand image. C) recruiting the mayor to participate on her business advisory board. D) hiring a lobbyist to promote state legislation that is favorable to operation of food trucks. E) hiring part-time help and maintaining extra inventory for peak periods.


321)

A large national restaurant chain was moving into a new community and looking for ways to promote itself. It decided to sponsor a local Little League team, give out free samples during the games, and purchase the team’s uniforms with the company logo on them. Which action is the company using to influence its environment? A) voluntary action B) coalition C) cooptation D) competitive aggression E) public relations

322)

__________ is leveling normal fluctuations at the boundaries of the environment. A) Buffering B) Smoothing C) Flexible processes D) Independent strategies E) Empowerment

323)

During the holiday season, Dora’s Department Store works with a contracted employment agency to bring extra workers on board to handle overflow business, and extra duties such as wrapping presents. Dora’s is using __________ during these rush times. A) smoothing B) buffering C) independent strategies D) flexible strategies E) lift coefficient

324)

A company uses __________ when it acts on its own to change some aspect of its current environment. A) smoothing B) buffering C) independent strategies D) flexible processes E) competitive intelligence


325)

For many years, Mars, Incorporated manufactured M&M's candies in assorted but fixed colors. M&M's were known and branded worldwide as individual candies featuring single solid colors. Then, in response to technological advancements and evolving customer tastes and expectations, Mars adapted its technical core by producing M&M's in an infinite variety of configurations and colors, even offering M&M's with personal photographs imprinted upon them as a product of "mass customization." Mars accomplished this by implementing A) smoothing. B) buffering. C) flexible processes. D) independent strategies. E) concurrence.

326)

A company is experiencing an increase in competition, and at the same time it is building more production facilities in Southeast Asia. In this scenario, the top management team is most likely to A) give lower-level managers the authority to make decisions to benefit the firm. B) pull decision-making responsibility from low-level management, taking it on themselves. C) restructure to reflect a more bureaucratic, stable organization. D) rid themselves of all buffering product. E) increase the cost of their products.

327)

__________ is described as exploiting a distinctive competence or improving efficiency for competitive advantage. A) Competitive intelligence B) Cooptation C) Competitive aggression D) Coalition E) Smoothing


328)

A company uses __________ when it acts on its own to change some aspect of its current environment. A) strategic maneuvering B) domain selection C) buffering D) independent action E) endorsement

329)

__________ are the strongly held and taken-for-granted beliefs that guide behavior in a firm. A) Values B) Organizational divestitures C) Prospectors D) Unconscious assumptions E) Buffers

330)

An organization's __________ refers to all relevant forces inside a firm's boundaries, such as its managers, employees, resources, and organizational culture. A) internal environment B) competitive environment C) macroenvironment D) demographics E) open system

331)

The five-by-eight inch card with one rule on it—Use good judgment in all situations— that employees at Omniplex Corporation receive along with the employee handbook tells the employees a great deal about their company's A) mission statement. B) voluntary actions. C) organization culture. D) competitive aggression. E) macroenvironment.


332)

__________ are the components of an organization that can be seen and heard, such as office layout, dress, orientation, stories, and written material. A) Incendiaries B) Visible artifacts C) Unconscious assumptions D) Organizational divestitures E) Apparitions

333)

__________ are the first level of organizational culture. A) Unconscious assumptions B) Values C) Desirable behaviors D) Visible artifacts E) Intangible beliefs

334)

__________ are the underlying qualities and desirable behaviors that are important to an organization. A) Traits B) Ethics C) Norms D) Benchmarks E) Values

335)

At the third and deepest level of organizational culture are A) unconscious assumptions. B) values. C) desirable behaviors. D) individual talents. E) ancillary activities.


336)

A useful clue about an organization's culture is A) found by seeing who is hired and who is fired. B) information printed in the media. C) the macroenvironment. D) environmental scanning. E) the industrial environment.

337)

The leadership focus on __________ is/are associated with a hierarchical culture. A) control, formality, and stability B) productivity, planning, and efficiency C) risk taking D) innovation and entrepreneurship E) external orientation and flexibility

338)

Goeff and Trad successfully partnered as a small independent oil exploration firm for 30 years. They worked informally together like family, and they were intensely loyal toward each other, their customers, and their suppliers. However, later in their careers, Goeff and Trad sold their firm and were hired by MegaOil, Inc., a top 5 global energy conglomerate.. They quit after 3 months because they could not adapt to MegaOil's culture, which is characterized by production/achievement, results orientation, competitive advantage, and market superiority (market/compete culture). In hindsight, Goeff and Tad probably realized that they missed the A) stability, predictability, and smoothness of a hierarchy/control culture. B) tradition, trust, teamwork, cohesiveness, and sense of family of a clan culture. C) flexibility, risk-taking, innovation, and entrepreneurship of an adhocracy/create culture. D) emphasis on the employees' individual needs of an empowerment culture. E) laid-back work environment of a weak culture.

339)

Which organizational culture is strongly characterized by being internally oriented and flexible, and emphasizing trust, commitment, and tradition? A) adhocracy B) clan C) hierarchy D) market E) rational


340)

Which organizational culture’s objectives are productivity, planning, and efficiency? A) adhocracy B) clan C) hierarchy D) market E) collaboration

341)

A hierarchical organizational structure values __________ and assumes that individuals will comply with the organizational mandates when roles are stated formally and enforced through rules and procedures. A) change B) stability C) flexibility D) external control E) business acumen

342)

343)

The key attributes of a(n) __________ are flexibility, risk taking, and entrepreneurial. A) adhocracy B) clan culture C) hierarchical culture D) market culture E) concurrence

The founders of Rainy Corporate pride themselves on their commitment to a stewardship of the environment, displaying a photo montage in the lobby that displays before-and-after pictures of the site where the headquarters complex is built—from an ugly landfill into a parkland. As a reflection of the company's culture, the photo montage represents a A) mission statement. B) myth. C) legend. D) visible artifact. E) scenario.


344)

The Chief Operating Office at Hank Corporation, effectively sustains and manages the company culture by A) avoiding moves to stay competitive that require deep-rooted cultural changes. B) relying heavily upon written directives. C) deviating from the culture when financial challenges present themselves. D) empowering employees through elimination of work distractions such as visible artifacts. E) crafting a vision, "walking the talk," and celebrating employees who exemplify the culture.

345)

Jean Paul’s French Foods founded in 1963 has grown steadily to 250 employees. Despite its size, Jean Paul’s operates as a family business with a strong clan culture. Jean Paul’s CEO, John Smythe, has just learned that the company’s long-standing and best customer, Saul's Bistro, with 15 locations in the region, is filing for bankruptcy. As a result, Jean Paul’s will immediately experience a 15 percent reduction in sales. Based upon this description, what do you advise John to do? A) Without consulting his team, lay off 15 percent of the workforce. B) Ask members of the entire company to agree to cut their hours by 15 percent until business improves, avoiding any layoffs. C) Without consulting his employees, quickly sell the company. D) Avoid an employee strike by offering bonuses to employees. E) Secretly implement a permanent policy to short-pay invoices from their suppliers by 15 percent and hope no suppliers leave.

346)

Describe how a manager will address demographic trends in the coming decades, in terms of age, gender, and ethnicity, for the firm's employees, customers, and suppliers.


347)

List the five elements of a firm's macroenvironment, and illustrate how each element affects the firm.

348)

Discuss the impact of immigration on the labor force of the United States.

349)

Name Porter's five forces in an organization's competitive environment.

350)

List five actions and attitudes that reflect excellent customer service. Illustrate each from your own experiences as either a customer or a service provider.

351)

Differentiate between unattractive and attractive competitive environments using Porter's model of competitive environment, and give an example for each situation.


352)

As environmental uncertainty increases, managers must develop techniques and methods for collecting, sorting through, and interpreting information about the environment. Discuss four of these methods, explaining when and why each would be used.

353)

To respond to their environment, managers and companies have a number of options, which can be grouped into three categories. Describe each of these categories.

354)

Describe the four different approaches that organizations can take in adapting to environmental uncertainty.

355)

Discuss any three independent strategies that a firm may use as a proactive response to its environment.

356)

Differentiate among the following four strategic maneuvers: domain selection, diversification, merger and acquisition, and divestiture.


357)

358)

Discuss the clues utilized to diagnose a culture.

What are the four types of organizational culture? Describe the culture of an organization in which you have either worked or studied. Which of the four types of organizational culture does your organization illustrate? Justify your answer.


Answer Key Test name: chapter 3 1) FALSE 2) FALSE 3) TRUE 4) TRUE 5) FALSE 6) TRUE 7) FALSE 8) FALSE 9) TRUE 10) TRUE 11) A 12) A 13) C 14) E 15) B 16) B 17) B 18) C 19) B 20) D 21) E 22) A 23) E 24) C 25) C 26) B 27) A 28) E 29) C 30) B 31) C 32) C 33) B 34) B 35) B 36) B 37) B


38) A 39) D 40) A 41) A 42) A 43) E 44) E 45) D 46) C 47) D 48) A 49) B 50) C 51) A 52) B 53) C 54) C 55) B 56) A 57) A 58) E 59) D 60) C 61) B 62) A 63) A 64) B 65) C 66) B 67) B 68) C 69) D 70) B 71) C 72) D 73) E 74) E 75) E 76) C 77) E


78) E 79) B 80) B 81) C 82) C 83) A 84) C 85) D 86) D 87) A 88) C 89) B 90) D 91) E 92) A 93) A 94) A 95) B 96) B 97) D 98) B 99) A 100) 101) 102) 103) 104) 105) 106) 107) 108) 109) 110) 111) 112) 113) 114) 115)

D E B Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay


Student name:__________ 359)

The codified laws of the country in which a business is located are the evaluative tool guiding business ethics. ⊚ true ⊚ false

360)

Unethical managerial behavior helps create a toxic work environment that negatively impacts the entire organization. ⊚ true ⊚ false

361)

An ethical leader is one who is both a moral person and a moral manager who influences others to behave ethically. ⊚ true ⊚ false

362)

In ethical decision making, moral judgment involves understanding that a problem has ethical implications. ⊚ true ⊚ false

363)

The shareholder model of business makes management’s economic responsibility to the firm a priority. ⊚ true ⊚ false

364)

A company can easily avoid environmental issues because the creation and distribution of wealth generates very few by-products. ⊚ true ⊚ false


365)

Life cycle analysis (LCA) quantifies the total use of resources and the releases into the air, water, and land. ⊚ true ⊚ false

366)

__________ refers to the moral principles and standards that guide the behavior of an individual or group. A) Integrity B) Ethics C) Corporate legitimacy D) Benchmarks E) The legal system

367)

A(n) __________ is a situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong. A) ethical standard B) ethical issue C) business norm D) personal right E) moral right

368)

Morgan, a member of the sales team, must choose between going along with his colleagues or informing his manager about inaccuracies on some coworkers’ expense reports. In this context, Morgan is faced with a(n) A) moral rights issue. B) ethical issue. C) diversity issue. D) regulatory issue. E) human rights violation.


369)

What are the moral principles and standards that guide behavior in the world of business? A) social norms B) competitive strategies C) business goals D) business ethics E) politics

370)

__________ refers to the principles, rules, and values people use in deciding what is right or wrong. A) Corporate legislation B) Business responsibility C) Moral philosophy D) The legal system E) Inner guidelines

371)

Delores owns a small tax preparation firm. After receiving the catering bill for a recent staff event, she believes they were significantly undercharged, and notifies the catering firm to correct the error. In taking this action, Delores is relying upon A) moral philosophy. B) moral right. C) business ethics. D) utilitarianism. E) global standards.

372)

__________ is an ethical system which states that all people should uphold certain values that society needs to function. A) Egoism B) Relativism C) Universalism D) Ethnocentrism E) Utilitarianism


373)

Two basic ethical ideals underpin the Caux Principles for Business. They are A) right and wrong. B) shinpai suna and corporate social responsibility. C) profits and pride. D) kyosei and human dignity. E) self-fulfillment and happiness.

374)

Rand confronts his supervisor when he observes new employees being intimidated into performing dangerous work without proper training. He believes all members of the organization must uphold some values for it to function well. Rand was following the __________ ethical system. A) egoism B) ethnocentrism C) communism D) relativism E) universalism

375)

376)

According to the Caux Principles for Business, the ethical ideal of kyosei means A) deciding what is right by using a set of rules and regulations. B) being aware of moral situations and acting accordingly. C) accepting the moral constraints of living in a society. D) living and working together for the common good. E) recognizing the intrinsic worth of every human being.

The notion of __________, an ethical system, is similar to Adam Smith's concept of the invisible hand in business. A) utilitarianism B) universalism C) egoism D) relativism E) humanitarianism


377)

Which statement would a proponent of egoism believe? A) People should engage in the behavior that promotes the greatest good for themselves. B) Everyone should uphold the universal values that society needs to function. C) What is ethical is based on the opinions and behaviors of relevant other people. D) Decision makers should focus on the greatest good for the greatest number of people. E) The welfare of the underprivileged should be the overriding concern of decision makers.

378)

The ethical system of utilitarianism supports the idea that A) some values must always be upheld, regardless of the consequences. B) societal rules or customs should be used to mold values. C) society will be enhanced if we all take care of ourselves and do not harm others. D) individuals might choose between conflicting values by tallying the final results of the various acts. E) seeking the greatest good for the greatest number of people should be the overriding concern of decision makers.

379)

In the workplace, the Chinese concept of guanxi reflects what standard governing ethical behavior? A) Individual self-interest is the actual motive of all conscious action. B) The greatest good for the greatest number should be the overriding concern of decision makers. C) Ethical behavior is defined based on the opinions and behaviors of associated people. D) All people should uphold certain values that society needs to function. E) The welfare of the underprivileged should be the overriding concern of decision makers.

380)

Zari is a police officer, and usually makes decisions based on what her fellow officers would expect her to do. Her actions reflect her use of the __________ ethical system. A) egoism B) utilitarianism C) relativism D) universalism E) humanitarianism


381)

What ethical system acknowledges the existence of different ethical viewpoints? A) relativism B) utilitarianism C) egoism D) universalism E) totalitarianism

382)

Manual’s workplace requires that all employees be fully vaccinated, including annual flu shots, before they are allowed to enter company premises. They must also submit proof of first aid training. This policy is an example of which ethical system? A) totalitarianism B) relativism C) universalism D) utilitarianism E) egoism

383)

The virtue ethics perspective suggests that an individual’s moral judgment and ethical behavior should be based upon A) a strong personal value system. B) the opinions and behaviors of relevant other people. C) a universal value system. D) what is good for the greatest number of people. E) individual self-interest.

384)

According to Kohlberg's model of cognitive moral development, people in the __________ stage make decisions based on concrete rewards and punishments and immediate self-interest. A) conventional B) principled C) preconventional D) utilitarian E) universal


385)

According to Kohlberg's model of cognitive moral development, people in the __________ stage see beyond authority, laws, and norms and follow their self-chosen ethical principles. A) conventional B) principled C) preconventional D) universal E) postconventional

386)

As the owner of a home health aide business, Grant is concerned that his employees exercise the highest levels of judgment and moral reasoning. He evaluates his staff based on both industry regulations and their ability to apply their own personal values system to their work. Grant runs his business based on which ethical value system? A) universalism B) utilitarianism C) egoism D) virtue ethics E) relativism

387)

In the context of universalism, kyosei and human dignity are the two basic ideals underpinning the __________ Principles for Business. A) Sachs B) Freeman C) Smith & Nephew D) Caux E) Madoff

388)

In Kohlberg's model of cognitive moral development, the very highest stage of moral development is the __________ stage. A) compliant B) principled C) preconventional D) utilitarian E) conventional


389)

A company believes ethical lapses within its daily operations will be brought to public attention by workers acting as whistleblowers. Thus, it does not need to establish a formal code of conduct for employees, instead relying on workers’ values to guide ethical decision making. Management of this company displays what ethical perspective? A) hire people who are unlike them, since opposites attract. B) relativism C) utilitarianism D) egoism E) universalism

390)

__________ is the ethical system wherein one seeks the greatest good for the greatest number of people. A) Egoism B) Virtue ethics C) Relativism D) Utilitarianism E) Universalism

391)

A tenet of __________ is that all people should uphold certain values, such as honesty, fairness and respectfulness that society needs to function. A) egoism B) universalism C) utilitarianism D) relativism E) virtue

392)

A tenet of __________ is that ethical behavior is based on the opinions and behaviors of associated people. A) egoism B) utilitarianism C) relativism D) virtue ethics E) morality


393)

According to Kohlberg's model of cognitive moral development, people in the conventional stage conform to A) expectations of ethical behavior held by groups or institutions. B) personal self-interests of groups of people. C) rules of government that lead people. D) self-chosen ethical principles regardless of others. E) decisions based on immediate self.

394)

Taylor conforms to the norms established by her religion and ensures that her behavior always meets the expectations set forth by her parents and the church. According to Kohlberg's model of cognitive moral development, she resides in the __________ stage. A) utilitarian B) principled C) preconventional D) conventional E) postconventional

395)

Lawrence sees a forgotten package lying near the locked mailboxes inside his apartment building. He walks past it only because he’s sure there’s a secret security camera watching the lobby. According to Kohlberg's model of cognitive development, Lawrence resides in the __________ stage. A) conventional B) principled C) preconventional D) postconventional E) universal

396)

Andrew prefers theater to business, and dreams of becoming a performer one day. However, he decides to major in accounting because his parents expect him to join the family business right after college. According to Kohlberg's model of cognitive moral development, Andrew resides in the __________ stage. A) preconventional B) universal C) conventional D) principled E) utilitarian


397)

Janelle, a scientist working in the research department of a personal care products manufacturer, is asked to overlook the ill-effects of using a new product that’s ready for launch. Janelle’s boss offers a bonus and extra vacation time in exchange for skipping a few details in the product report. Janelle refuses to do this and asks the firm to withhold the product from entering the market. According to Kohlberg's model of cognitive moral development, Janelle resides in the __________ stage. A) conventional B) principled C) preconventional D) universal E) postconventional

398)

Which statement describes an ethical dilemma facing modern managers? A) Ethics are shaped by a company’s work environment as well as by laws and personal virtue. B) Nearly three-fourths of Americans say executives’ pay packages are excessive. C) Compliance-based ethics programs are designed by corporate counsel to prevent, detect, and punish legal violations. D) Congress passed the Sarbanes-Oxley (SOX) Act in 2002 to improve and maintain investor confidence. E) Union membership continues to fall across the country.

399)

What was the intended goal of the Sarbanes-Oxley Act? A) to create levelized import tariffs B) to prohibit commercial banks from participating in the investment banking business C) to deter corrupt foreign business practices D) to remove barriers in the market among financial companies E) to establish strict accounting and reporting rules to make senior managers more accountable


400)

The __________ of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong. A) distribution policy B) ethical climate C) strategic objective D) legal responsibility E) span of control

401)

Tiana, a graphic artist at an advertising firm, realizes that the head designer has been copying designs from the Internet and passing them off as his own. Tiana informs the marketing head about this, which leads to the designer getting fired. However, after this event, Tiana is ostracized by her coworkers. This indicates that the organization has a poor A) strategic objective. B) span of control. C) ethical climate. D) accounting procedure. E) training program.

402)

A company regularly conducts classes in moral philosophy for its employees. In addition, it ensures that whistleblowers are protected from ostracism or mistreatment. These measures have been specifically taken to A) develop a compliant workforce in the organization. B) establish a written code of ethics. C) increase punitive actions against wrongdoers in the organization. D) prevent ethical dilemmas in the organization. E) create an ethical climate in the organization.


403)

Carlos reported that the industrial wastewater treatment system operated by his employer was no longer operating properly, allowing toxics-laden water to be discharged to the river. He was pleased to see the plant manager, Darnell, immediately shut down production for an indefinite period, pending repair of the wastewater treatment system. In this situation, Darnell demonstrated A) excessive emphasis on short-term revenues. B) responsiveness to shareholders at the expense of other constituencies. C) a desire for a simple and expedient solution to the problem. D) consideration of ethics solely as a public relations tool. E) willingness to take an ethical stand that may impose financial costs.

404)

For businesses with an international presence, maintaining a positive ethical climate is A) the responsibility of its lower-level employees. B) reliant on compliance to universal business standards. C) determined by the laws and regulatory environment of the home country. D) easier because of the lack of international standards and enforcement. E) particularly complex and challenging.

405)

What is a legal advantage to companies that make an effort to comply with stipulations of the 2002 Sarbanes-Oxley (SOX) Act? A) The companies ensure accurate accounting. B) The companies are more likely to retain experienced personnel. C) The companies gain significant competitive advantage. D) The companies can reduce the consequences if an employee does break the law. E) The companies increase their attractiveness to investors.

406)

Managers need to __________ so that employees will discuss problems in meeting goals, rather than resorting to unethical and possibly illegal behavior. A) incentivize employees to achieve goals at all costs B) penalize employees for failure to achieve goals C) maintain accurate records of employee performance results D) lavishly reward high achievers E) keep the lines of communication open


407)

In the context of business ethics, an ethical leader A) lets ethics be managed by benign neglect. B) influences others to also act ethically. C) focuses solely on being a moral manager. D) is quick to take credit for the accomplishments of his subordinates. E) places personal interest before the common good of the organization.

408)

In the context of business ethics, the Sarbanes-Oxley Act requires A) all private companies to disclose their financial statements. B) that public companies disclose whether they have adopted a code of ethics. C) establishment of ethical codes focusing exclusively on employee conduct. D) a company’s code of ethics to be approved by all stakeholders. E) adherence to a universal code of ethics established by Congress.

409)

In the context of corporate ethics programs, ethics committees A) develop policies, evaluate actions, and investigate violations. B) resort to punitive measures to deal with all ethical issues. C) take disciplinary action against whistleblowers. D) work to cover the unethical acts committed by the organization. E) encourage eavesdropping as a means of gathering information about employees.

410)

__________ ethics programs are designed by corporate counsel to prevent legal violations. A) Integrity-based B) Compliance-based C) Competency-based D) Awareness-based E) Responsibility-based

411)

The primary focus of compliance-based ethics programs is on A) creating awareness about ethical issues. B) giving tools to make ethical decisions. C) detecting and punishing legal violations. D) increasing individual ethical responsibility. E) training employees on ethical decision making.


412)

What strategy is used by compliance-based corporate ethics programs? A) instilling in people a personal responsibility for ethical behavior B) increased surveillance and controls and imposing punishments on wrongdoers C) using any means to distract from the appearance of illegality D) helping companies and people govern themselves through a set of guiding principles E) ignoring the legal repercussions of unethical behavior

413)

An ethics program that is designed to instill in people a personal responsibility for ethical behavior is called a(n) __________ ethics program. A) integrity-based B) compliance-based C) rule-based D) law-based E) conformity-based

414)

A company was required by law to change its physical work environment in such a way so as to enable disabled people to function properly. Because the company followed a(n) __________ ethics program, it did not stop at just making changes that would help it stay out of trouble with the law. It went further and trained its employees to be sensitive toward disabled people. A) competency-based B) conformity-based C) rule-based D) integrity-based E) compliance-based

415)

Integrity-based ethics programs in business organizations are based upon the premise that A) corporate counsel must prevent, detect, and punish legal violations. B) punishments on wrongdoers will prevent ethical violations. C) companies and people govern themselves through a set of guiding principles that they embrace. D) legal standards and procedures are a strong deterrent. E) high-level managers will ensure compliance among employees.


416)

In the context of ethics programs in organizations, programs tend to be better integrated into operations, thinking, and behavior when A) every employee has signed the code of ethics. B) top management has a personal commitment to responsible ethical behavior. C) employees see top managers go unpunished for their wrongdoings. D) managers use punishment to motivate employees to "be good." E) managers use humiliation and bullying to prevent bad behavior.

417)

A(n) __________ ethics program is designed to instill in people a personal responsibility for ethical behavior. A) integrity-based B) competency-based C) legality-based D) efficiency-based E) results-based

418)

In the context of making ethical decisions, knowing what actions are morally defensible is referred to as moral A) awareness. B) judgment. C) character. D) principles. E) responsibility.

419)

Priya is considering having to lay off Larry, because Larry’s skills no longer match the company's needs in the face of a changing marketplace. Larry is a long-time employee who organizes many office social gatherings and company-sponsored charitable events. Priya knows that letting Larry go would have a huge negative impact on the other employees and that there would likely be unintended consequences of this decision. In the context of making an ethical decision, this stage is known as moral A) certainty. B) ability. C) awareness. D) judgment. E) characterization.


420)

In the context of making ethical decisions, moral __________ is the strength and persistence to act in accordance with one's ethics despite the challenges. A) certainty B) awareness C) judgment D) character E) consciousness

421)

The concept of __________ holds that only a person unaware of his or her own identity can make a truly ethical decision. A) the "sunshine" ethical framework B) "moral relativism" C) the "veil of ignorance" D) "strategic philosophy" E) the "light of day" principle

422)

A supervisor of a manufacturing facility is facing an ethical dilemma. She uses the formal process of ethical decision making to resolve the issue. Her first step will be A) defining the complete moral problem. B) determining the legal requirements. C) understanding all the moral standards. D) proposing a convincing moral solution. E) evaluating the success of the solution.

423)

Anna, a senior executive, has a difficult ethical decision to make regarding one of her new clients. In evaluating her ethical duties, in addition to considering all the financial requirements, she must also A) avoid actions that will be burdensome to enact. B) be willing to take action that is illegal. C) be proud of seeing this decision or action reported in the newspaper. D) not negatively affect her business relationship with the client. E) communicate this decision to her employer's other clients.


424)

In the context of the business costs of ethical failures, __________ is incurred at Level 3. A) reputation cost B) administrative and audit cost C) cost of remedial education D) cost of corrective actions E) cost of government penalties

425)

In the context of the business costs of ethical failures, Level 1 costs that are less damaging and get more executive attention are the costs of A) government fines and penalties. B) remedial education. C) corrective actions. D) loss of reputation. E) employee turnover and replacement.

426)

427)

As a manager charged with making an ethical decision, moral awareness begins with A) reviewing your company’s code of ethics. B) considering whether your decision has unfavorable ramifications. C) promoting self-interest. D) focusing on your personal ethical principles. E) knowing what actions are morally defensible.

Sienna has always been praised for her moral awareness, judgment, and character at work. However, turning in her own boss, a division manager, for fraudulent behavior will be very difficult for her to do. Sienna knows that she will need to draw upon every bit of __________ that she can muster. A) self-righteousness B) candor C) legal justification D) courage E) defiance


428)

Some organizations have platforms that allow employees to provide anonymous feedback about the work and behavior of colleagues and seniors. The primary purpose of such methods is A) environmental preservation. B) protection of whistleblowers. C) punitive action against sexual harassers. D) protection of human rights. E) encouragement of corporate social responsibility.

429)

The Write Stuff, Inc., a manufacturer of designer journals and notebooks, switched to using recycled paper to manufacture its products. It also changed the materials and design of its covers and binding material to eliminate non-recyclable plastics. The changes made by the Write Stuff, Inc. are an example of __________ responsibility. A) philanthropic B) legal C) economic D) corporate social E) shareholder

430)

The __________ responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors. A) economic B) legal C) ethical D) political E) philanthropic

431)

Corporate social responsibility refers to A) taking an active role in training employees to be productive. B) fulfilling the obligation toward society assumed by businesses. C) following the laws that govern the industry in which a company operates. D) encouraging cost reductions to increase return to investors. E) maximizing shareholder wealth.


432)

In the context of corporate social responsibility, __________ responsibilities are to obey local, state, federal, and relevant international laws. A) economic B) legal C) moral D) philanthropic E) ethical

433)

In the context of corporate social responsibility, __________ responsibility involves meeting other societal expectations that are not written as law. A) economic B) legal C) shareholder D) ethical E) fiscal

434)

Safe Earth Extermination believes in meeting societal expectations whether or not mandated by law. It uses only organic products that are environmentally friendly. Safe Earth Extermination is operating at the __________ level of the pyramid of corporate social responsibility. A) philanthropic B) legal C) economic D) ethical E) administrative

435)

What corporate responsibility includes activities such as supporting local food pantries that society finds desirable and that the values of the business support? A) economic B) legal C) ethical D) philanthropic E) political


436)

When a construction business regularly gives its employees paid time off to volunteer with Habitat for Humanity, it is an example of its A) economic responsibility. B) legal responsibility. C) ethical responsibility. D) philanthropic responsibility. E) political responsibility.

437)

The __________ model is a theory of corporate social responsibility that holds that managers are agents of stockowners whose primary objective is to maximize profits. A) philanthropic B) ethical C) shareholder D) customer E) stakeholder

438)

A major pharmaceutical company donates supplies of epinephrine auto-injectable pens, used to combat severe allergic reactions, to schools in lower-income areas of the state. The donation generates significant publicity for the firm and sales of the product continue at a profitable rate. This donation is part of the firm’s __________ responsibility. A) economic B) legal C) stakeholder D) philanthropic E) political

439)

A transcendent education teaches students to think beyond self-interest and profitability—in fact, to A) consider sales and revenues over the strategic time frame. B) contribute to philanthropic causes. C) leave a legacy that extends beyond the bottom line. D) train one's successors. E) promote one's industry.


440)

In accordance with the goals of transcendent education, __________ is described as learning how to give as well as take. A) empathy B) generativity C) mutuality D) civil aspiration E) intolerance of ineffective humanity

441)

In accordance with the goals of transcendent education, __________ is described as thinking not just in terms of "don'ts" (lie, cheat, steal, kill), but also in terms of positive contributions. A) empathy B) generativity C) mutuality D) intolerance of ineffective humanity E) civil aspiration

442)

Although he has not suffered any personal injustices, Lonnie joins a protest at school that seeks to publicize unethical actions taken against nonnative students. Lonnie’s action demonstrates which goal of transcendent education? A) empathy B) generativity C) mutuality D) civil aspiration E) intolerance of ineffective humanity

443)

Which theorist said, "The social responsibility of business is to increase profits."? A) Adam Smith B) Milton Friedman C) Karl Marx D) Thomas Jefferson E) Robert Giacalone


444)

An individual who strives to feel his or her decisions as potential victims might feel them is demonstrating A) empathy. B) generativity. C) mutuality. D) intolerance of ineffective humanity. E) civil aspiration.

445)

The chairman of the board said to the CEO, "We must cease production of those items; they are not healthy for our customers. We must transition to new, safe product lines. I know that other firms are producing those unhealthy items, and I know that no laws prevent us or them from producing them. However, just because something is legal, doesn't mean that it is ethical. The chairman is promoting a(n) __________ ethics program. A) associate-based B) compliance-based C) integrity-based D) systems-based E) consensus-based

446)

"It is perfectly legal for us to accept gifts from our suppliers, as long as we don't get too greedy, and as long as we don't do anything that could get us in trouble with the law," said Charles Jebson, CEO of Starlite Manufacturing. "That's why I have instructed our corporate counsel to design mechanisms to prevent, detect, and punish legal violations." Charles is promoting a(n) __________ ethics program. A) associate-based B) compliance-based C) integrity-based D) systems-based E) consensus-based


447)

The __________ area of responsibility, corresponding to doing what global stakeholders desire, is at the top of the pyramid of global corporate social responsibility and performance. A) moral B) economic C) philanthropic D) ethical E) legal

448)

Which corporate action is likely to be categorized as a philanthropic endeavor? A) encouraging all employees to recycle paper B) improving corporate social responsibility by adopting aggressive eco-friendly policies C) strictly adhering to local, state, federal, and relevant international laws. D) establishing the goals of increasing profitability as top priority E) making a wide variety of charitable contributions to community organizations

449)

A reality of living in a capitalistic society is that A) the creation and distribution of wealth generate by-products that can cause injury, loss, or danger to people and the environment. B) social justice is, in fact, dispensed equally across all citizen groups, irrespective of ethnicity, income level, or other factors. C) laws cannot be enacted to regulate corporations' adherence to accounting rules. D) currency exchange rates are set by the Caux Principles. E) incomes are regulated by government policy to ensure equality across professions and worker class.

450)

The goal of __________ is to create sustainable economic development and improve the quality of life worldwide for all organizational stakeholders. A) ethnocentric management B) stakeholder interaction C) ecocentric management D) corporate social performance E) egoism


451)

__________ is economic growth and development that meet an organization's present needs without harming the ability of future generations to meet their needs. A) Ethnocentric management B) Ergonomic development C) Sustainable growth D) Economic responsibility E) Life cycle analysis

452)

__________ is the process of evaluating all inputs and outputs, through the entire "cradle-to-grave" journey of a product, in order to determine the total environmental impact of its production and use. A) Life cycle analysis B) Cost benefit analysis C) Ethical management D) Compliance building E) Ergonomic development

453)

During a job interview, the recruiting manager from BioCorn Energy told Salvador that ethanol was a more efficient transportation fuel and was, therefore, environmentally superior to petroleum-derived fuel. Afterwards, in doing his own research, Salvador learned that this viewpoint was disputed. Critics of ethanol-from-corn production cited a recent __________ study, contending that ethanol was in fact more environmentally harmful than gasoline, when considering the amount of land required, the amount of chemicals (fertilizer, herbicides, and pesticides) required, the higher transportation costs incurred, and amount of agricultural wastes generated. A) renewability management B) ecocentric management C) sustainability analysis D) environmental analysis E) life cycle analysis


454)

The modern view of business toward incorporating environmental values is to treat it as A) a no-win situation. B) a way to gain a competitive edge. C) an unnecessary cost. D) a time-consuming legal requirement. E) strictly a public relations issue.

455)

Dallas, store manager for Newberry Foods, learns that the store's refrigeration system failed overnight, and, for several hours, the cold meat and produce were exposed to temperatures that were a few degrees higher than required by company standards. She decides to discard the food, at cost of many thousands of dollars, because she believes it is the right thing to do, and the health of consumers is at stake. Dallas uses __________ as an ethical system to make her decision. A) universalism B) egoism C) utilitarianism D) relativism E) conventionalism

456)

Alec has great respect for his long-time manager and mentor, Eli. When Alec is confronted with a challenging ethical issue, he asks himself how Eli would have handled the situation. Alec uses __________ as an ethical system to guide him in his decision making. A) universalism B) egoism C) utilitarianism D) relativism E) conventionalism


457)

Calvin’s bicycle company that specializes in mountain bikes sold a few models with a defective component. If he informs the customers and issues a recall, it will cost him a substantial amount of money. If the bike malfunctions, there is a very small chance that it could cause serious injury to a cyclist who might use it on rough terrain. Calvin decides to use the egoism approach to decision making and remain silent about the defect, likely because he A) is motivated by self-interest. B) is looking to accomplish the greatest good for the greatest number of people. C) wants to first consult with his insurer. D) is motivated to protect the interests of his employees. E) wants to first consult with others whom he respects.

458)

Nathan received a holiday gift from a company supplier. He estimated the value of the gift at $25. As he was not sure he could ethically accept the gift, Nathan reviewed company policy and discussed the matter with his boss before making his decision. In this situation, Nathan used what ethical framework to guide his decision? A) utilitarianism B) universalism C) relativism D) virtue ethics E) egoism

459)

Maya, owner of a small craft shop, inadvertently sold decorative wall hangings that included hazardous lead-based paint. The paint was a very small part of the finished product, and the crafts were intended to hang well above the reach of small children and pets. Nonetheless, when Maya learned that the crafts contained the hazardous paint, she contacted each buyer, took back the crafts she had sold them, and replaced them with products that did not contain the hazardous paint. She acted as a mature businessperson with good moral character by using the __________ approach to ethical decision making. A) egoism B) utilitarianism C) relativism D) virtue ethics E) universalism


460)

"That's a problem that is endangering the public! Our company needs to immediately stop production and solve it!" warned Kevin. His manager said, "Kevin, we're not going to solve any problem that means spending money. Our profits are behind plan this quarter." An unwillingness to take an ethical stand that may impose financial costs is a sign that the company has a(n) __________ that is conducive to unethical behavior. A) distribution channel B) ethical climate C) legal responsibility D) pricing strategy E) corporate code

461)

Think about your own values. How might your personal values conflict with your current or future employer? Explain with examples.

462)

As an entrepreneur, you have just started a small business and now must hire a staff. You struggle with your feelings regarding the privacy of applicants’ social media accounts. Do you have a right to access these accounts to learn more about the individual? Once someone is hired, can you ethically monitor their social media usage? Explain why this is an ethical issue, and what strategies you might use to resolve it.

463)

If you were a frontline manager and an employee confided in you—in a whistleblowing manner—about a very confidential work-related ethics problem, explain how you might respond using the relativism ethical system.


464)

Discuss the housing bubble as it concerns the role mortgage practitioners played in the blame.

465)

Describe Kohlberg's model of cognitive moral development.

466)

Identify an example of an ethical dilemma in the workplace. Describe the two or more values that are in conflict and why they are in conflict, and what steps a manager might take to address the dilemma.

467)

468)

What are topics that a business ethics code might address?

Over the weekend, an employee attended a party where inappropriate photos were taken and posted on Facebook. On Monday, several employees stopped by to show you the photos, and a contractor called to voice concern. Explain your response.


469)

Many factors create a climate conducive to unethical behavior within an organization. One of these is an unwillingness to take an ethical stand that may impose financial costs. First, provide a real or hypothetical specific example of this factor, showing how it contributes to a real or hypothetical specific unethical decision or action. Second, discuss how a manager responded or might respond when confronted with this specific example.

470)

Compare and contrast an integrity-based ethics program and a compliance-based ethics program.

471)

Explain the thought experiment created by John Rawls based on the "veil of ignorance," using an example to show how a decision maker can tactically apply this concept to minimize personal bias.

472)

Describe the four levels of corporate social responsibility.


473)

Use the scenario below to answer the following three questions:

Ali and Noelle are the marketing managers of a clothing brand, Style Corp. They have manufacturing units in India and China. Investors are dissatisfied with the current profits and are pressuring the marketing team to increase profits. Noelle suggests increasing the working hours of the laborers by an hour with no pay increase. Doing so would increase the weekly outputs with minimal increase in the input cost. Ali believes that the increase in work hours should reflect as an increase in wage to the laborers. Noelle states that the employee compensation laws are not as stringent as those in the United States and this could be beneficial to them. 1. Describe the shareholders' concerns. 2. In the context of the four levels of corporate social responsibility, explain how Noelle

believes they can benefit by increasing the work hours without an increase in pay. 3. In the context of the four levels of corporate social responsibility, contrast Ali's concerns with Noelle's.

474)

A developer of a high-end condominium project in an urban area chooses to incorporate the concept of sustainable growth into her project. What will be the underlying goal (definition) of sustainable growth as it applies to her project, and what are examples of design goals/features that she might incorporate?

475)

Many community projects and charities will seek financial support from businesses. Assume you are the owner of a large-sized firm. Design a rubric or scoring sheet to evaluate these requests and help determine which philanthropies you will fund.


Answer Key Test name: chapter 4 1) FALSE 2) TRUE 3) TRUE 4) FALSE 5) TRUE 6) FALSE 7) TRUE 8) B 9) B 10) B 11) D 12) C 13) A 14) C 15) D 16) E 17) D 18) C 19) A 20) E 21) C 22) C 23) A 24) D 25) A 26) C 27) B 28) D 29) D 30) B 31) B 32) D 33) B 34) C 35) A 36) D 37) C


38) C 39) B 40) B 41) E 42) B 43) C 44) E 45) E 46) E 47) D 48) E 49) B 50) B 51) A 52) B 53) C 54) B 55) A 56) D 57) C 58) B 59) A 60) B 61) C 62) D 63) C 64) C 65) C 66) A 67) A 68) B 69) D 70) B 71) D 72) A 73) B 74) B 75) D 76) D 77) D


78) D 79) C 80) A 81) C 82) B 83) E 84) E 85) B 86) A 87) C 88) B 89) C 90) E 91) A 92) C 93) C 94) A 95) E 96) B 97) A 98) D 99) A 100) 101) 102) 103) 104) 105) 106) 107) 108) 109) 110) 111) 112) 113) 114) 115) 116) 117)

C D B Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay


Student name:__________ 476)

In an organization, the process of planning moves in a linear fashion. ⊚ true ⊚ false

477)

Effective planning allows for changing conditions. ⊚ true ⊚ false

478)

Standing plans are designed to achieve a set of short-term goals. ⊚ true ⊚ false

479)

Making decisions about an organization's short-term goals and tactics is known as strategic planning. ⊚ true ⊚ false

480)

A strategic control system must encourage efficient operations while allowing flexibility to adapt to changing conditions. ⊚ true ⊚ false

481)

Individuals usually make higher-quality decisions when compared to groups, provided there is enough time. ⊚ true ⊚ false


482)

The step in the formal planning process known as __________ involves studying past events, examining current conditions, and forecasting future trends. A) analyzing the situation B) generating alternative goals and plans C) evaluating goals and plans D) selecting goals and plans E) monitoring and controlling performance

483)

The outcome of a situational analysis is the A) evaluation of the merits and feasibility of all alternatives. B) prioritization and elimination of goals. C) identification and diagnosis of planning assumptions, issues, and problems. D) selection of the most appropriate and feasible alternative among various goals. E) proper implementation of a plan.

484)

Situational analysis, as part of the formal planning process, focuses on A) the internal forces at work within an organization and examines influences from the external environment. B) the external forces throughout the global economic community. C) the interpersonal and personnel issues within an organization. D) the internal and external forces affecting competitors. E) past conditions, current trends, and future events.

485)

In the context of the planning process, __________ are the targets or ends a manager wants to reach. A) goals B) plans C) scenarios D) strategies E) contingencies


486)

Smooth Coat, a paint manufacturer , developed a strategic plan that assumed continued growth in its industry. Additionally, it generated several __________ for different economic settings. When a recession started, Smooth Coat quickly implemented the plan based on those conditions. As a consequence, it survived more easily than other firms in the industry. A) financial reports B) annual reports C) roadmaps D) projection statements E) scenarios

487)

Year in and year out, Coca-Cola outperforms in the soft drink industry. While this success is due in part to the quality of their products, it is also due to Coca-Cola's consistently strong marketing campaigns. These campaigns represent Coca-Cola's ongoing, or __________, plan to develop and execute a world-class marketing and promotion strategy. A) operational B) single-use C) standing D) contingency E) subject

488)

A plan to integrate employees into a new payroll system, assuming that it is not likely to be repeated in the foreseeable future, is an example of a __________ plan. A) standing B) single-use C) start-up D) contingency E) subject

489)

According to the __________ plan of Castleton Industries, if expansion to new markets in Australia does not materialize, the company will strive for expansion in Asia. A) operations B) internal C) contingency D) standing E) start-up


490)

The managers of Tanika Enterprises are considering how well alternative plans may meet its high-priority goals, as well as identifying the cost of each initiative and its likely investment return. Tanika Enterprises is in the __________ stage of the planning process. A) implementing goals and plans B) selecting goals and plans C) analyzing the situation D) monitoring and controlling performance E) evaluating goals and plans

491)

During the __________ step of the planning process, managers identify the priorities and trade-offs among goals and plans. A) evaluation of goals and plans B) selection of goals and plans C) implementation of goals and plans D) monitoring of goals and plans E) generating alternative goals and plans

492)

After Jenn’s department performed poorly two years, she reviewed her plan and saw it had inadequate funding and unclear priorities. The next year, she acquired sufficient funds and incentivized her top managers with bonuses for goals met. The results made Jenn ecstatic, showing how the implementation of plans is successful when A) the planning process is limited to senior managers. B) limited financial resources are made available to the manager. C) they are linked to other organizational systems like budgets and rewards. D) they are converted into strict rules for employees to follow. E) they are projected as confidential issues concerning top management.

493)

The final step in the formal planning process involves A) identifying priorities and trade-offs among the plans. B) linking goals to the organization’s reward system. C) developing alternative scenarios. D) generating alternative goals. E) monitoring and controlling performance.


494)

In the context of planning, if there is alternative generation, evaluation, and selection steps which reveal several different future scenarios, a different __________ plan is attached to each scenario. A) evaluation B) alternative C) contingency D) selection E) emergency

495)

The planning step known as monitoring and controlling performance A) identifies the priorities and trade-offs among an organization’s goals and plans. B) involves managers continually monitoring the performance of their work units against the unit's goals and plans. C) should be the very first step taken by managers. D) suggests that managers need to restart the planning process each time plans are improperly implemented. E) is the least important step in the planning process.

496)

Which level of manager is known as a tactical manager? A) top-level B) frontline C) middle-level D) team leaders E) operational

497)

Typical strategic goals involve A) updating the equipment used. B) increasing market share. C) estimating advertising expenditures. D) complying with civil rights laws. E) improving delivery schedules.


498)

Strategic goals tend to have a strong __________ orientation. A) frontline employee B) routine production C) external D) functional E) internal

499)

Strategic goals tend to relate to A) the long-term survival of an organization. B) a specific functional area of an organization. C) the human resource requirements of an organization. D) the major actions a production unit must take. E) the procedures and processes to get day-to-day work done.

500)

The level of planning involving the longest time horizon, usually ranging from three to seven years, is __________ planning. A) operational B) contingency C) tactical D) departmental E) strategic

501)

__________ planning involves a process of translating broad strategic goals and plans into specific goals and plans relevant to a particular portion of an organization. A) Strategic B) Operational C) Tactical D) Contingency E) Feasibility


502)

__________ planning is the process of identifying the specific procedures and processes required at lower levels of an organization. A) Strategic B) Operational C) Tactical D) Contingency E) Acquisition

503)

In __________ planning, frontline managers usually focus on routine tasks such as production runs, delivery schedules, and human resource requirements. A) acquisition B) feasibility C) tactical D) operational E) strategic

504)

For organizations, the formal planning model is generally __________, with top-level strategies flowing down through the levels of the organization into more specific goals and plans. A) horizontal B) hierarchical C) random D) concentrated E) disordered

505)

To be effective, an organization's strategic plans should focus on goals that are A) different from those of its tactical plans and operational plans. B) different from those of its tactical plans yet the same as the operational plans. C) aligned with its tactical plans and operational plans. D) aligned with its tactical plans yet different from the operational plans. E) strictly disconnected from operational plans.


506)

Which statement regarding the role of managers in strategic planning is accurate? A) Managers throughout the organization may be involved in developing strategic plan elements. B) Top level managers reserve the role of strategic planning in the most effective organizations. C) Tactical and operational managers are disconnected from the strategic planning process. D) For maximum efficiency, the same group of managers should formulate strategic, operational and tactical planning. E) Lower-level managers are only involved in implementing the plan.

507)

The formal planning model emphasizes a __________ approach. A) bottom-up B) top-down C) linear D) horizontal E) multidirectional

508)

A mission statement describes the organization’s A) basic purpose. B) strategic plan. C) future goals. D) moral code. E) history.

509)

Senior management at Durable Manufacturing knows that a successful implementation of the business plan in the coming year is critical to the company's survival in a competitive industry. Durable cannot afford for different parts of the organization to "stray" from the plan; in fact, each organizational unit must perform in sync with the goals of the unit above it and the units below it. Thus, the individual plans of the corporation, each division, each department, and each section must be A) aligned. B) independent. C) in competition. D) diverse. E) provisional.


510)

The strategic vision of an organization A) provides a perspective on where the organization is headed. B) describes the organization as it currently operates. C) reflects a clear and concise expression of the organization's basic purpose. D) is expressed as strictly a financial statement. E) emphasizes the short-term gains of the organization.

511)

The tangible assets of an organization include A) patents. B) real estate. C) company reputation. D) technical knowledge. E) learning and experience.

512)

Resources provide competitive advantage only under certain circumstances, including when they are A) hidden. B) difficult to imitate. C) equally available. D) sequential. E) expensive.

513)

The sleek appearance of Apple products helps set it apart from its competitors and makes the products top sellers. For example, the curved design and dual-camera system in the newest iPhone are examples of Apple’s A) tangible assets. B) benchmarks. C) internal strengths. D) core capabilities. E) hidden assets.


514)

Homestyle Treats, a chain of cookie shops, periodically compares the quality of its food and service with its competitors in order to continually improve its performance. This corporate strategy is known as A) brainstorming. B) diversification. C) benchmarking. D) vertical integration. E) horizontal integration.

515)

Cameron’s manager and mentor, Oliva, is helping Cameron develop his first business plan. Oliva said, "One of the most powerful tools that you can use in developing a strategic plan for your business is to analyze the external environment and your internal resources. I will help you formulate this strategy by using a technique called A) the BCG matrix." B) SWOT analysis." C) benchmarking." D) diversification." E) vertical integration."

516)

A __________ strategy identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses. A) vertical B) differentiation C) low-cost D) functional E) corporate

517)

In order to reduce production costs, Autoworks an automobile manufacturer, decided to buy out a glass plant and begin manufacturing the glass for the windows of cars on its own. The corporate strategy adopted by the company is known as A) concentration. B) vertical integration. C) related diversification. D) unrelated diversification. E) differentiation.


518)

Southern Spirits had focused only on alcoholic beverages for the last two decades. Now, as part of a(n) __________ strategy, the company is considering entering the soft drink market. A) vertical integration B) related diversification C) unrelated diversification D) concentration E) low-cost

519)

The __________ matrix is not a substitute for management judgment; it helps managers of businesses evaluate their strategy alternatives. A) BCG B) BGC C) GBC D) GCB E) CGB

520)

Deisha viewed her staff as a competitive advantage, as they had the necessary academic degrees and experience. Her division manager said, "Deisha, until you have staff with rare and valuable academic research experience and corresponding degrees, and with talents that are world-class and in extremely high demand by your clients, such that they are willing to pay top dollar for that talent, your staff do not represent a competitive advantage. Your staff are too __________ by your competitors." A) expensive to be recruited B) academic to be desired C) hard to replicate D) easy to imitate E) experienced to be sought

521)

The goal of __________ is to thoroughly understand the best practices of other firms and to undertake actions to achieve better performance and lower costs. A) satisficing B) benchmarking C) organizing D) financial analysis E) SWOT analysis


522)

The corporate strategy of __________ involves expanding the domain of an organization into supply channels and to distributors. A) concentration B) horizontal integration C) vertical integration D) benchmarking E) satisficing

523)

Lodestar Inc. recently decided to expand from its original base in construction to several wide-ranging industries such as trucking, lawn mower manufacturing, and catering. Lodestar is using the __________ corporate strategy. A) vertical integration B) unrelated diversification C) related diversification D) concentration E) low-cost

524)

Harris Industries is evaluating the purchase of a small firm, StrongTech Inc. which manufactures products involving advanced technology. These products are expected to revolutionize the home construction industry. StrongTech has only a minor share of this market, but the market is expected to grow rapidly. Substantial investment will be required. In the BCG matrix, StrongTech Inc. would be placed in the __________ category. A) cash cows B) stars C) spinoffs D) question marks E) dogs

525)

In the context of the strategic planning process, a critical task in environmental analysis is __________ future trends. A) reporting B) forecasting C) avoiding D) justifying E) creating


526)

Groups and individuals who affect and are affected by achievement of the organization’s mission, goals, and strategies are considered A) stakeholders. B) buyers and suppliers. C) employees. D) investors. E) competitors.

527)

If an organization's mission statement describes the organization as it currently operates then its strategic vision points to the A) past. B) production numbers. C) future. D) expectations. E) profits.

528)

In the BCG matrix, a star represents a company A) with high growth and a strong competitive position in the market. B) that requires substantial investments to improve its position in the market. C) with low growth and a strong competitive position in the market. D) that generates excess revenues and funds other businesses. E) that will be divested as soon as possible.

529)

Functional strategies are implemented A) only at the top levels of management. B) by each appropriate area or unit. C) only at the employee level of an organization. D) mostly by frontline managers. E) by the stakeholders.


530)

Businesses using a __________ strategy try to be efficient and offer a standard, no-frills product. A) high return B) low-cost C) high-cost D) low return E) high profit

531)

The most effective strategy that can be adopted by strategy managers is one that A) cannot be described in detail. B) competitors are unable to imitate. C) is based on the principle of rigidity. D) cannot be deconstructed. E) can be purchased at a reasonable cost.

532)

The first step in strategy implementation involves articulating in simple language what a particular business must do to create or sustain a competitive advantage. This step involves A) assessing organizational capabilities. B) developing an implementation agenda. C) defining strategic tasks. D) creating an implementation plan. E) developing a mission statement.

533)

When a problem is frequent, repetitive, and routine, with much certainty regarding causeand-effect relationships, a __________ decision may be taken. A) qualitative B) programmed C) non-economic D) risky E) nonprogrammed


534)

At Toni’s retirement party, she reflected upon her long career in starting up successful companies. She said, "I salute my long-time mentor who counseled me early in my career about risk. He said, “When you are confronted with risk when making management decisions, you should A) avoid it by any means necessary.'" B) eliminate it with a thorough understanding of the consequences of each option.'" C) anticipate it, minimize it, and control it.'" D) understand there is no way to manage it.'" E) not proceed without a liability insurance policy.'"

535)

What is typical of most managerial decisions? A) They lack structure. B) They are free of risks. C) They are made under conditions of perfect certainty. D) They are consistent in addressing novel problems. E) They have the characteristics of programmed decisions.

536)

A small U.S.-based company is trying to decide whether to open its first international branch in Europe or Asia. The managers of the company are operating under a condition of A) goal displacement. B) illusion of control. C) social reality. D) uncertainty. E) maximization.

537)

In managerial decision making, when one can estimate the likelihood of various consequences but still does not know with certainty what will happen, the manager is facing A) irresolution. B) maximization. C) risk. D) optimization. E) framing effects.


538)

In managerial decision making, the state that exists when decision makers have insufficient information is known as A) certainty. B) uncertainty. C) risk. D) probability. E) irresolution.

539)

__________ is one of the six stages of formal decision making. A) Eliminating the risks B) Minimizing the consequences C) Anticipating the outcome D) Evaluating the decision E) Controlling the damage

540)

The first step in an ideal decision-making process is to A) make a choice. B) evaluate alternatives. C) implement the decision. D) generate alternative solutions. E) identify and diagnose the problem.

541)

The manager of a restaurant noticed that the number of customers in the evening was decreasing. She promptly ordered the chef to revise the evening menu. Later, customer feedback indicated that the problem was not the menu but poor service from the waitstaff. The manager's decision to have the menu revised suggests that she failed to A) identify and diagnose the problem. B) evaluate alternatives. C) generate alternative solutions. D) evaluate the decision. E) make a timely choice.


542)

When generating alternative solutions during the decision-making process, __________ solutions must be designed for specific problems. A) ready-made B) approved C) open-ended D) repeatable E) custom-made

543)

Jean is evaluating a new customer relationship management software solution for her business. She knows several business owners and managers who have implemented the software in their organizations. Instead of conducting a trial in her own company, she asks them for their advice. Jean is most likely searching for a(n) __________ solution to her problem. A) experimental B) optimal C) ready-made D) creative E) custom-made

544)

When making a choice, __________ requires searching thoroughly for a complete range of alternatives, carefully assessing each alternative, comparing one to another, and then choosing or creating the very best. A) benchmarking B) maximizing C) forecasting D) satisficing E) optimizing

545)

Patrice has to select paper clips to purchase for her office. She looks at the office supply catalog and picks the first one that is priced reasonably. Patrice is using the __________ method of decision making. A) forecasting B) optimizing C) satisficing D) maximizing E) brainstorming


546)

For the decision-making process in an organization, those who __________ a decision must understand the choice and must be committed to its successful implementation. A) make B) suggest C) implement D) finalize E) create

547)

With managerial decision making, decision evaluation is useful A) only if negative feedback has been received. B) only if positive feedback has been received. C) whether the conclusion is positive or negative. D) whether the manager or the employee is involved. E) only if every employee is involved.

548)

Decision makers who search for __________ solutions use ideas they have tried before or follow the advice of others who have faced similar problems. A) ready-made B) custom-made C) unique D) original E) rare

549)

Managers who use the method of optimizing to make their decisions will attempt to choose A) the first minimally acceptable alternative. B) from those alternatives that have known results. C) the least expensive alternative. D) the alternative that produces the least conflict. E) an alternative that achieves the best possible balance among several goals.


550)

In the context of formal decision making, negative feedback indicates that A) too much time has been dedicated in implementing the decision. B) implementation of the decision may need more resources. C) the decision has been made under undue pressure from top management. D) the problem has been incorrectly diagnosed. E) the decision has been undermined by competitors.

551)

__________ is a psychological bias that applies to students who do not spend sufficient time studying. A) Illusion of control B) Farming effects C) Discounting the future D) Time pressures E) Social realities

552)

The psychological bias known as illusion of control refers to a A) decision bias influenced by the way in which a problem or decision alternative is phrased or presented. B) belief that one can influence events even when one has no influence over what will happen. C) bias weighting short-term costs and benefits more heavily than longer-term costs and benefits. D) condition that occurs when a decision-making group loses sight of its original goal and a new, less important goal emerges. E) phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus.

553)

Illusion of control, discounting the future, and framing effects are examples of A) social realities. B) psychological biases. C) strategic planning steps. D) ready-made solutions. E) time pressures.


554)

__________ refer(s) to a decision bias influenced by the way in which a problem or decision alternative is phrased or presented. A) Framing effects B) Discounting the future C) Illusion of control D) Social realities E) Time pressures

555)

Discounting the future refers to A) focusing on gains in the long run. B) failing to consider inflationary costs. C) underestimating the short-term effects of a decision. D) weighing short-term benefits more heavily than long-term benefits. E) failing to consider the effects of new entrants into the industry.

556)

A company recently made changes to its organizational structure. While deciding upon the changes to be implemented, the company invited many employees to discuss the issue with the senior management. This enabled the employees to hear the relevant arguments both for the chosen alternative and against the rejected alternatives. An advantage of using employees in this group discussion was that A) the employees dominated the discussions and promoted their ideas. B) the phenomenon of groupthink was encouraged. C) the satisficing method of decision making was employed. D) goal displacement was furthered. E) the employees understood why the decision was made.

557)

An advantage in using a group for decision making is that it A) leads to a higher level of commitment to the decision. B) gives authority to one member in heading the discussion. C) results in a phenomenon known as groupthink. D) leads to a process of decision making known as satisficing. E) results in conservation of precious time, money, and resources.


558)

Jason wanted the advantage that comes with the collective wisdom of a management team participating in a decision. Jason’s division had to decide if solar panel, wind turbine blade, or battery power research would be its next major investment. He brought together his managers in a meeting; however, Tarek used his strength of character and oratory skills to push for solar panel research. Unfortunately, the other managers were quiet, and Tarek managed to overpower them with his views. Given the dynamics of the meeting and its outcome, __________ had prevented Jason’s meeting from achieving what he had hoped it would. A) groupthink B) satisficing C) domination D) devil's advocacy E) goal displacement

559)

__________ is the phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus. A) Goal displacement B) Domination C) Intuition D) Groupthink E) Brainstorming

560)

When decision making is done in groups, the job of a devil's advocate is to create A) potentially destructive conflict. B) the likelihood of constructive conflict. C) a satisficed solution. D) a task-related conflict. E) process-related problems.


561)

Five executives attended a meeting that was being held at the company. A decision needed to be made about the following year's marketing campaign. Brant, an outspoken and aggressive person, insisted that his ideas be followed because there could not be a better alternative. No one else contributed to the discussion, and Brant’s views were accepted. This group discussion suffered from A) groupthink. B) domination. C) satisficing. D) brainstorming. E) goal displacement.

562)

In brainstorming, group members generate A) as many ideas about a problem as they can. B) strategies to reach consensus. C) goal displacement. D) criticism of each other's ideas. E) pressure to conform.

563)

When a group accepts an alternative in order to end a meeting, the group has reached a(n) __________ decision. A) maximizing B) innovative C) satisficing D) constructive E) optimizing

564)

__________ is a condition that occurs when a decision-making group loses sight of its original purpose and a new, less important aim emerges. A) Goal displacement B) Illusion of control C) Satisficing D) Brainstorming E) Groupthink


565)

Leaders of decision-making groups who want to encourage constructive conflict should A) discourage constructive conflict among the group members. B) encourage groupthink to speed up decision making. C) reach a decision by employing the satisficing method. D) encourage multiple alternatives from a variety of perspectives. E) discourage exploring new or creative alternatives.

566)

In an effort to combat groupthink and an overall lack of creativity, the group leader assigned Raisa the job of criticizing ideas, for the sake of argument, throughout the meeting. Raisa is playing the role of a A) maximizer. B) devil's advocate. C) satisficer. D) strategic planner. E) dominator.

567)

In an attempt to make a conflict between two employees less personal and emotional, their manager instructs them to approach the same problem from a different viewpoint. They have a structured debate and come to a conclusion that suits both employees. This is an example of using the __________ approach. A) maximizing B) satisficing C) brainstorming D) dialectic E) goal displacement

568)

What is a feature of effective brainstorming? A) A group is encouraged to say anything that comes to mind, except to criticize other people. B) A strict time pressure is added to enhance creativity. C) Total and consistent agreement among group members is expected. D) Innovative ideas are linked to immediate payoffs. E) Task-related conflict is encouraged to enhance performance.


569)

The senior management of Galaxy Industries has conducted a strategic planning meeting. Based upon the discussion, decisions were made regarding A) the number of employees who should be hired for the cafeteria this month. B) how the visibility of their marketing campaign can be increased over the next 6 months. C) how the biggest trucks in the business can be deployed next week. D) whether the company should allow employees to work from home. E) whether the company should expand into a new region in the next 10 years.

570)

The lab manager devised a schedule so that the lab chemists and staff could continually run the experiments over the next two weeks. This decision is part of operational planning because it A) translates broad strategic goals and plans into specific goals and plans relevant to a particular portion of the organization. B) focuses on the major actions a unit must take to fulfill its part of the strategic plan. C) involves a specific procedure that is required at lower levels of the organization. D) involves making decisions about the organization's long-term goals and strategies. E) has a strong external orientation and covers major portions of the organization.

571)

As part of a strategic planning process, Northeast Power's senior executives determined positive findings from their SWOT analysis: (1) New regulations will provide tax credits for renewable ("green") power sources. (2) Their customers will pay higher prices for green power. (3) A competing power utility that owns renewable power sources is struggling and might be a target to be acquired by Northeast Power. (4) As compared to their competitors, Northeast Power's management team is one of the best in the industry. A strength of Northeast Power, per the SWOT analysis, is that A) new regulations will provide tax credits for renewable power sources. B) their customers will pay higher prices for green power. C) a competing power utility is struggling. D) the competing power utility might be a target to be acquired. E) their management team is one of the most skilled in the industry.


572)

The CEO of GoodLife Corporation, said, "I like what I heard from our SWOT analysis. It found: (1) We have an excellent sales staff. (2) Our management team is one of the best in the industry. (3) Demand for our products in the underserved overseas market is projected to soar. (4) Our factories use the latest and most efficient equipment. (5) And our cost control system is world class." An opportunity for Goodlife, per the SWOT analysis, is that A) they have an excellent sales staff. B) their management team is one of the best in the industry. C) demand for their products in the underserved overseas markets is projected to soar. D) their factories use the latest and most efficient equipment. E) their cost control system is world class.

573)

The owner of Frank’s Fine Foods, a family-owned grocery store, said to his management team following their SWOT analysis, "We're in trouble. We have been the leading grocer in this geographical area, but Wholesome Groceries is opening a superstore a mile away. Our refrigeration system is 15 years old and needs replacing. Our store manager and produce manager are retiring this year. And our employee benefits package is not competitive." A threat to Frank’s Fine Foods, per the SWOT analysis, is that A) they have been the leading grocer in their geographical area. B) Wholesome Groceries is opening a superstore nearby. C) their refrigeration system is old and needs replacement. D) key personnel are retiring. E) their employee benefits package is not competitive.

574)

"Our business needs a steady supply of raw milk," said the CEO of Happy Cow Ice Cream, "But Midwest Dairy Farms is unable to deliver with certainty, and they keep raising prices. This year, I want us to expand our business by buying our own dairy farm." The CEO is advocating a(n) __________ strategy. A) operational B) vertical integration C) lateral integration D) unrelated diversification E) horizontal integration


575)

"I am pleased to announce that we have acquired Fancy Fruit Juices, a premier producer of natural beverages," said Louis Garcia, CEO of Granddad's Root Beer. "This will allow us to take advantage of our strengths by applying them in a new business that is similar to our core business." Louis is speaking of a(n) __________ strategy. A) operational B) vertical integration C) related diversification D) lateral diversification E) horizontal integration

576)

"The last three years of severe drought conditions have been brutal to our lawn care business. We survived, but our business is too concentrated," said the owner of Anderson & Sons. "I propose that we expand in new areas—trucking, catering, and dry cleaning—to minimize our risks due to market fluctuations in one industry." This business owner is advocating a(n) __________ strategy. A) lateral integration B) vertical integration C) related diversification D) unrelated diversification E) horizontal integration

577)

The management team of Community Care Medical Center is deciding whether to include more advanced, and substantially more costly, technologies. This is a nonprogrammed decision, because the underlying problem A) is frequent, repetitive, and routine. B) is novel and unstructured. C) is trivial. D) has a predetermined outcome. E) is risk-free.


578)

A finance manager, told his boss, "Jake, just like last month, I have determined appropriate revenue recognition for each of the 55 projects this month, based upon company policy and our standard procedures. Each of the projects has routine revenue accrual. I have prepared financial affidavits for each of these 55 projects, and I recommend that you approve the revenues by signing the affidavits." Jake’s decision to approve the revenues is an example of a programmed decision because the underlying problem A) is frequent, repetitive, and routine. B) is novel and unstructured. C) is trivial. D) has a predetermined outcome. E) is risk-free.

579)

"We have 125 qualified candidates for the quarterly training program but only 25 slots," said the production manager. "In that case, randomly select 25, and we will train the other candidates later this year during the next rounds of training," said the division manager. By selecting the first 25 qualified candidates at random rather than examining each candidate's file to determine if more qualified candidates should be selected first, the managers are engaging in A) ignoring. B) satisficing. C) favoring. D) optimizing. E) maximizing.

580)

During a managers' meeting, there is difficulty reaching a conclusion on which project to fund in the upcoming year. In arguing for funding for her project, Lorene states that she has experience in making all projects succeed. She even states that she is immune to failure. Lorene is displaying what barrier to decision making? A) illusion of control B) framing effects C) discounting the future D) bargaining E) time pressures


581)

"We must jump into this new business area right now, or we will fall behind," argued Dave. "Let's price our product well below our competitors' prices, even if we don't make money at first. We will figure out how to make money later." Dave is displaying which bias in decision making? A) illusion of control B) framing effects C) discounting the future D) bargaining E) benchmarking

582)

When James presented his plan to his boss, he emphasized its huge money-making potential without pointing out its inherent risks and ethical challenges. James was using __________ to sell his position. A) illusion of control B) framing effects C) discounting the future D) groupthink E) devil's advocacy

583)

The new CEO told his executive team, "Every two years, on a rolling basis, we will develop a new plan that will address our high-level mission, objectives, and approaches to conduct business for the next five years. The plan will guide decision making that is consistent with our long-term goals and strategies." The five-year plan is an example of a __________ plan. A) strategic B) single-use C) standing D) contingency E) SWOT


584)

"The operator's manual has a purpose—to allow the equipment to meet its performance goals and last for a long time," said the plant manager to an employee. "You didn't perform scheduled maintenance on the equipment as specified in the manual, and now the equipment is ruined." Following the instructions described in the operator's manual is an example of a __________ plan. A) strategic B) single-use C) standing D) contingency E) SWOT

585)

"The dam is on the verge of failing, and the downstream residents are in danger!" cried the on-scene reporter. The power plant manager, replied, "Stay calm. We implemented the emergency protocol over 24 hours ago, and we have evacuated all potentially affected residents." The emergency protocol is an example of a __________ plan. A) strategic B) single-use C) standing D) contingency E) SWOT

586)

587)

Compare and contrast strategic, tactical, and operational planning.

In the context of a SWOT analysis, describe at least five elements of an environmental analysis.


588)

The two broad categories of resources typically considered during planning and SWOT analysis are tangible assets and intangible assets. List two examples of tangible assets and two examples of intangible assets available to or used by an organization. Describe under what circumstances resources can be a source of competitive advantage.

589)

Describe low-cost and differentiation strategies, and how a business can achieve competitive advantage with either of them.

590)

Differentiate between programmed and nonprogrammed decisions. Which type is more typical for managerial decisions?

591)

List and describe the six steps of a formal decision-making process. Then, provide a brief example of this process as used in a business setting.

592)

Explain the advantages and disadvantages of using a group to make decisions.


593)

Situational analysis is the first step in the formal planning process. Next, a manager should generate alternative goals and plans based upon the findings of the situational analysis. Describe the benefits of generating these alternatives.

594)

You and a small group of investors are purchasing a local storage company near a college campus. The company is going in a new direction: it will only serve the current students or faculty of the university and will offer packing and delivery services as well. The investor group is meeting soon. Discuss an appropriate mission statement for the new firm, as well as its new strategic vision. Next, provide three appropriate strategic goals based on this mission and strategic vision.

595)

In working with her management team to develop a business plan for her 15-person department for the next fiscal year, Naomi notes that the corporate strategies for next year include: (1) expand into international markets; (2) broaden scope of services with key clients; and (3) leverage new technologies to increase sales. The corporation employing Naomi and her team is large, employing over 20,000 people. How do Naomi and her management team use the corporate strategies in developing a business plan for their small department?

596)

Business strategy based upon technology leadership has advantages and disadvantages. List three examples of each.


597)

The four related steps involved in strategy implementation are: (1) define strategic tasks; (2) assess organization capabilities; (3) develop an implementation agenda; and (4) create an implementation plan. Implementing the strategy using these steps requires communication, involvement, training/coaching, and monitoring. What are some difficult situations that may develop in implementing strategy, and how would a manager address them?

598)

599)

List and explain the components of a strategic control system.

Explain how managers can make decisions under time pressure that are timely and of high quality.


Answer Key Test name: chapter 5 1) FALSE 2) TRUE 3) FALSE 4) FALSE 5) TRUE 6) FALSE 7) A 8) C 9) A 10) A 11) E 12) C 13) B 14) C 15) E 16) B 17) C 18) E 19) C 20) B 21) C 22) B 23) C 24) A 25) E 26) C 27) B 28) D 29) B 30) C 31) A 32) B 33) A 34) A 35) A 36) B 37) B


38) D 39) C 40) B 41) E 42) B 43) B 44) A 45) D 46) B 47) C 48) B 49) D 50) B 51) A 52) C 53) A 54) B 55) B 56) B 57) C 58) B 59) C 60) A 61) D 62) C 63) B 64) D 65) E 66) A 67) E 68) C 69) B 70) C 71) C 72) C 73) A 74) E 75) B 76) C 77) B


78) B 79) A 80) D 81) E 82) A 83) C 84) D 85) B 86) B 87) A 88) C 89) A 90) D 91) B 92) D 93) A 94) E 95) C 96) E 97) C 98) B 99) B 100) 101) 102) 103) 104) 105) 106) 107) 108) 109) 110) 111) 112) 113) 114) 115) 116) 117)

C D B A B A C B A C D Essay Essay Essay Essay Essay Essay Essay


118) 119) 120) 121) 122) 123) 124)

Essay Essay Essay Essay Essay Essay Essay

Student name:__________ 600)

An entrepreneur is a manager, but also engages in additional activities than most managers do not. ⊚ true ⊚ false

601)

A small business and an entrepreneurial venture have similar goals. ⊚ true ⊚ false

602)

Opening up a Dunkin’ Donuts franchise represents an entrepreneurial alliance. ⊚ true ⊚ false

603)

In the context of the entrepreneurial strategy matrix, most small business ventures fall in the lower right quadrant where innovation is low and risk is high. ⊚ true ⊚ false

604)

A common entrepreneurial advantage is the ability to micromanage. ⊚ true ⊚ false

605)

Social capital refers to being part of a social network and having a good reputation. ⊚ true ⊚ false


606)

Professional venture capitalists are likely to be passive investors who do not seek more control from entrepreneurs. ⊚ true ⊚ false

607)

Organizations that encourage intrapreneurship face the obvious risk that this effort can fail. ⊚ true ⊚ false

608)

__________ is the pursuit of lucrative opportunities by enterprising individuals under conditions of uncertainty. A) Entrepreneurship B) Leadership C) Bootlegging D) Skunkworks E) Incubation

609)

A(n) __________ is an enterprise having fewer than 500 employees, independently owned and operated, not dominant in its field, and not characterized by many innovative practices. A) nonprofit organization B) small business C) greenfield venture D) entrepreneurial venture E) incubator

610)

A(n) __________ is a new business having growth and high profitability as primary objectives and which produces new goods or services or serves new markets. A) opportunity B) invention C) merger D) entrepreneurial venture E) greenfield venture


611)

When working for a software company, and because Walter is a(n) __________, he created a new venture based solely on his idea while using his company's proprietary technology. A) intrapreneur B) angel investor C) promoter D) venture capitalist E) franchisee

612)

__________ are new venture creators working inside big companies; they are corporate entrepreneurs, using their company's resources to build a profitable line of business based on a fresh new idea. A) Intrapreneurs B) Franchisees C) Sole proprietors D) Management novices E) Licensees

613)

Which statement is accurate regarding entrepreneurship? A) Any entrepreneur with a good idea can raise venture capital. B) Entrepreneurs do not have employees under their direct control. C) Entrepreneurs "get rich quick" and enjoy a lot of leisure time. D) Entrepreneurs take careful, calculated risks and are not afraid to act on those decisions. E) If an entrepreneur is talented, he or she will quickly succeed.

614)

Entrepreneurs seek __________ from their business ventures. A) extended vacation time B) stress and uncertainty C) challenge and profit potential D) power and control E) risk-free opportunities


615)

Caleb was a manager at a company that produced household appliances. He had many innovative ideas to increase profits. However, his ideas were not received well by the company. So, he left the company to pursue his own business, thus creating a(n) A) entrepreneurial venture. B) spin-off. C) franchise. D) merger. E) small business.

616)

Cara recently started her own business by recreating a company she worked for previously but with innovative practices. Cara has great management skills and has been able to run her business efficiently and profitably. Cara is a(n) A) promoter. B) entrepreneur. C) manager. D) intrapreneur. E) inventor.

617)

__________ involves creating new systems, resources, or processes to produce new goods or services and/or serve new markets. A) Franchising B) Management C) Entrepreneurship D) Profiteering E) Leadership

618)

Which individual described below is most likely to become a successful entrepreneur? A) Matt enjoys challenges, has a strong social network, has good knowledge of management techniques, and possesses excellent business skills. B) Evelyn has an MBA and has been a manager in a corporate office for ten years. She likes a job to be well done and works best when she plans ahead. C) Nissa likes to invent new products, enjoys working in the laboratory, and avoids conflict whenever possible. She has little knowledge of business. D) Anna has strong marketing and selling skills and loves challenges in these areas. E) Ian is creative and embraces new ideas and products, but prefers working by himself.


619)

__________ use networks of contacts more than formal authority. A) Managers B) Entrepreneurs C) Large businesses D) Franchisees E) Franchisors

620)

A common myth about entrepreneurship is that "Any entrepreneur with a good idea can __________ to fund his/her business." A) go public B) use a skunkworks C) use a corporation D) raise venture capital E) start a franchise

621)

Because of existing roadblocks to economic success, which group discussed in the text is almost twice as likely to start a business in the United States? A) African American men B) immigrants C) college-educated women D) frontline managers E) urban dwellers

622)

A small business is often defined as having fewer than __________ employees, as well as being independently owned and operated. A) 500 B) 400 C) 300 D) 200 E) 100


623)

Rae independently owns and operates a company with 22 employees. She manages aggressively and expects rapid sales and profit growth. Rae’s company is considered a(n) __________ venture. A) entrepreneurial B) intrapreneurial C) franchise D) small business E) public

624)

__________ create new independent businesses with the benefit of corporate support. A) Corporate managers B) Intrapreneurs C) Managers D) Franchisors E) Franchisees

625)

Which statement represents a myth about entrepreneurs? A) Entrepreneurs work hard to build and sustain successful ventures. B) Entrepreneurs must display creativity, motivation, and analytical ability to be successful. C) Entrepreneurs are gamblers. D) Entrepreneurs are driven by responsibility, achievement, and results. E) Entrepreneurs must answer to many stakeholders.

626)

Entrepreneurs are most motivated in starting their own firms for which reason? A) challenge B) stability C) free time D) opportunity to manage other people E) fame


“Drew, I believe that you will succeed," said Pamela, his mentor. "When an entrepreneur is contemplating a new business, the very first step is to have __________. You are on the right track." A) a great idea B) financial capital C) a good location D) family support E) investors

627)

628)

Considering successful business models for e-commerce, sites that pay commissions to other sites to drive business to their own sites involve the __________ model. A) transaction fee B) advertising support C) intermediary D) affiliate E) subscription

629)

In the context of successful business models for e-commerce, the __________ model involves charging monthly or annual fees for website visits or access to website content. A) transaction fee B) advertising support C) intermediary D) affiliate E) subscription

630)

The online site known as Galaxy Games brings buyers and sellers together and charges a commission for each sale. Galaxy Games uses a(n) __________ e-commerce business model. A) transaction fee B) advertising support C) intermediary D) affiliate E) subscription


631)

The side street effect refers to A) the appearance of unexpected opportunities as one follows a plan. B) a corporate spin-off not sanctioned by the corporation. C) using corporate resources to pursue entrepreneurial activities. D) the entrepreneurial ventures that are marginally successful but never experience significant growth. E) the distraction and lack of focus seen in many entrepreneurs.

632)

__________ is an entrepreneurial alliance between an innovator who has created at least one successful store and wants to grow and a partner who manages a new store of the same type in a new location. A) Franchising B) An initial public offering C) Bootlegging D) Intrapreneurship E) The affiliate model

633)

Lee Ann spotted, created, and exploited a(n) __________ for ride-sharing services for elderly customers that big companies had avoided. She quickly captured the market with her simpler, cheaper, more accessible, and more convenient services. A) business incubator B) opportunity C) invention D) franchise E) intrapreneurship

634)

A new technique for extracting oil and gas—called "fracking"—spurred an economic boom in what had been thought to be a depleted oil field. Workers swarmed into the town, and Maureen started a laundry service to meet their needs. In this case, Maureen had spotted an entrepreneurial opportunity created by a A) technological discovery. B) demographic change. C) government initiative. D) lifestyle change. E) calamity.


635)

__________ refers to the development of new and creative enterprises seeking to stimulate social change or address social problems by leveraging resources. A) Social identification B) Social incubating C) Social orientation D) Social entrepreneurship E) Social planning

636)

Goodwill Industries’ mission is to enhance people’s quality of life by eliminating barriers to opportunity and to elevate individuals to reach their full potential through the power of work. Goodwill’s network of independent organizations can be categorized as A) an in-house entrepreneur. B) a social enterprise. C) a social skunkworks. D) a small business network. E) a franchise opportunity.

637)

638)

Which attribute most helps an entrepreneur succeed? A) preference for working alone B) tolerance of ambiguity and uncertainty C) risk aversion D) preference for the status quo E) avoidance of constructive criticism

Wellson Enterprises, an entrepreneurial venture, does not have any distinctive services when compared with the well-established competitors in the same field, and the business will require a sizable investment. According to the entrepreneurial strategy matrix, how should the venture be categorized? A) high innovation/low risk B) high innovation/high risk C) low innovation/low risk D) low innovation/high risk E) no innovation/low risk


639)

Most small entrepreneurial ventures, such as new restaurants and retail shops, can be categorized regarding innovation and risk as A) high innovation, high risk. B) high innovation, low risk. C) no innovation, high risk. D) low innovation, high risk. E) low innovation, low risk.

640)

In the context of the entrepreneurial strategy matrix, a novel product idea that involves a large financial investment would be described as A) high innovation/low risk. B) high innovation/high risk. C) low innovation/low risk. D) low innovation/high risk. E) low innovation/no risk.

641)

Regarding innovation and risk strategies, a __________ is most likely to have the highest risks and returns. A) clothing retailer B) tax preparation service C) space tourism venture D) new restaurant E) lawn mowing service

642)

Which statement is accurate regarding entrepreneurial ventures? A) Companies offering mundane products cannot hope to gain competitive advantage. B) For start-ups, failure is an exception rather than the rule. C) Successful companies do not always require a cutting-edge technology or an exciting new product. D) Acquiring venture capital is essential to the success of all start-up businesses. E) The odds of survival of an entrepreneurial venture worsen if it grows to at least 10 or 20 people.


643)

The odds of survival for a new venture improve if A) there is an economic downturn. B) there is novelty. C) it remains very small. D) it grows to at least 10 or 20 people. E) it has revenues of $1 million.

644)

__________ is a benefit of business incubators. A) An information silo B) High security C) Provision of venture capital D) A shared cost E) Guaranteed profitability

645)

What is the role of the economic environment in the success of entrepreneurial ventures? A) Increases in the money supply and the supply of bank loans lead to improved prospects and increased sources of capital. B) Entrepreneurial success is not affected by the economic environment; a good idea will prevail in all external conditions. C) Entrepreneurial success is affected only by the talent and behavior of individuals, not by the economic environment. D) Downturns in the economic environment offer no opportunity for entrepreneurial success. E) A robust economy and the resulting increase in credit and demand boost the rate of new business formation, but a troubled economy has little effect on new ventures.

646)

What is the role of business incubators? A) They provide new and small businesses with test market services. B) They protect consumers from fraud. C) They provide enhanced wellness benefits to employees of large businesses. D) They provide a nurturing environment for new and small businesses. E) They provide opportunities for exponential growth without competition.


647)

Experienced entrepreneurs know that __________ is part of starting a new business. A) imitation B) venture capital access C) fast profit D) risk E) a public stock offering

648)

Business incubators, often located in industrial parks or abandoned factories, are A) protected environments for new, small businesses. B) tax-free environments for established, large businesses. C) think tanks for public policy makers. D) subsidized training grounds for business owners of all types. E) low-cost environments for commercial businesses.

649)

Manny decides to open a restaurant serving street tacos and fajitas. This will be one of several such restaurants in his small town. This entrepreneurial venture, like most small businesses, is characterized by __________ risk and __________ innovation. A) moderate; moderate B) moderate; high C) low; high D) high; low E) high; high

650)

In the context of common management challenges, leadership deteriorates into micromanagement when entrepreneurs fail to A) train a successor. B) monitor financial performance. C) delegate work. D) enjoy work. E) adapt to rapid growth.


651)

The success of an entrepreneurial venture is often jeopardized by the death of its founder. __________ is an important measure to minimize this problem. A) Conservative use of funds B) Succession planning C) Record keeping D) Decreased delegation E) Going public

652)

__________ offer a way for a business to raise capital through federally registered and underwritten sales of shares in a company. A) Initial public stock offerings B) Venture capital funding C) Business incubators D) Bootlegging E) Franchises

653)

In order for family-managed businesses to survive and prosper, management guru Peter Drucker advised them to A) avoid having someone outside the family help plan succession. B) discontinue hiring outsiders as they are more objective. C) fill at least one key position with a nonfamily member. D) offer initial public stock offerings as soon as possible. E) tolerate mediocre performance by family members.

654)

According to Peter Drucker, which statement is true regarding managing a family business? A) Mediocre performance by family members employed in the company may be tolerated. B) The business should be aggressively managed. C) The business should not hire outsiders as they contribute expertise the family might not have. D) Someone outside the family and the business should help plan succession. E) The business should "go public" as soon as possible.


655)

Entrepreneurs often fail to use __________, resulting in inadequate margins to support growth. A) formal control systems B) a forward-thinking orientation C) an opportunity analysis D) venture capital E) appropriate delegation

656)

Tom’s new business rocketed upwards in its first year, but its progress stagnated thereafter. His mentor noted that Tom was having a hard time "letting go"—giving his two best employees responsibility to take on assignments that they were obviously ready to handle. In fact, Tom was needlessly and constantly "looking over their shoulder" to check their work. Tom’s entrepreneurial venture was being threatened by his failure to A) delegate. B) plan. C) go public. D) use formal control systems. E) properly use funds.

657)

Rite Time Lighting has made the decision to "go public" through an initial public stock offering (IPO). Rite Time Lighting undertook this process to A) use available money properly. B) improve the balance sheet and dissolve net worth. C) raise capital and reduce debt. D) delegate leadership. E) reduce control.

658)

In the context of starting an entrepreneurial venture, the first formal step is to A) secure the finances. B) write a business plan. C) conduct an opportunity analysis. D) get others to support one's ideas. E) hire the right people.


659)

A description of the good or service, an assessment of the opportunity, an assessment of the entrepreneur, and specification of activities and resources needed to translate your idea into a viable business, and your source(s) of capital together make up a(n) A) value chain. B) control system. C) opportunity analysis. D) operating cycle. E) organization chart.

660)

The purpose of an opportunity analysis is to A) obtain financing. B) negotiate agreements with suppliers. C) excite potential customers. D) specify resources needed to translate an idea into a viable business. E) work out the details of marketing, finance, and manufacturing.

661)

A(n) __________ describes all the elements involved in starting a new venture. A) business plan B) control system C) value chain D) initial public stock offering E) risk analysis

662)

A function of a business plan is to A) improve the balance sheet and enhance net worth. B) raise capital through federally registered shares of the company. C) improve credibility with customers and other stakeholders. D) determine the viability of one's enterprise. E) create a long-term relationship with an investment banking firm.


663)

A(n) __________ often devotes too much attention to financial projections while neglecting other important information that is important to investors. A) business audit B) accounting analysis C) business plan D) value chain E) IPO

664)

What is the key factor in a business plan that an entrepreneur should have clearly thought out, which includes a customer-focused competitive advantage that can be defended? A) opportunity B) risk and reward C) people D) competition E) context

665)

What resource comes from people's judgment of a company's acceptance, appropriateness, and desirability? A) social capital B) technical skills C) legitimacy D) competitive advantage E) management expertise

666)

How can an entrepreneur generate legitimacy? A) by avoiding constructive criticism B) by being risk-averse C) by ignoring standards established by credentialing associations D) by visibly endorsing widely held values E) by maintaining the status quo


667)

In the context of key planning elements, what is true of what venture capital firms consider important for an entrepreneurial venture? A) They believe that a strong marketing campaign is the best for an entrepreneurial venture. B) They believe that a good quality product is the best bet for an entrepreneurial venture. C) They believe that the venture with the highest projected profit is the best. D) They believe that the greater the strength of a venture, the better it is. E) They believe that what counts is a person's ability to execute an idea.

668)

__________ is a competitive advantage in the form of relationships with other people and the image other people have of an entrepreneur. A) Social capital B) Community standing C) Legitimacy D) Quality of life E) Business culture

669)

Dwayne has asked Ryan to be a primary investor in his entrepreneurial start-up. Ryan first wants to carefully study Dwayne’s business plan, in particular these key factors: A) the clients, the staff, and the competition. B) the people, the opportunity, the competition, the context, and the risk/reward. C) the clients, the other investors, the suppliers, and the opportunities/threats. D) the other investors, the staff, the suppliers, the financing, and the risk/reward. E) the strengths, the threats, and the opportunities.

670)

Allison has been planning to open a child care center and has been asked by the small business center to create a document that includes the market, strategies, and future directions. This document is a(n) A) initial public offering. B) income statement. C) balance sheet. D) business plan. E) opportunity analysis.


671)

__________ is the first step toward building organizational support for an idea that involves explaining the idea and seeking approval to look for wider support. A) Making cheerleaders B) Bootlegging C) Horse trading D) Clearing the investment E) Getting the blessing

672)

The stage for building support for an idea, or __________, means guaranteeing a project's technical and political feasibility, often with a formal presentation to higher management. A) cheerleading B) bootlegging C) horse trading D) clearing the investment E) getting the blessing

673)

"Taylor, let me give you some advice," said her boss. "Before seeking formal approval for your project from higher levels of management, spend some time getting support from your peers.” This process is often called A) making cheerleaders. B) bootlegging. C) horse trading. D) clearing the investment. E) getting the blessing.

674)

Hajime, a new manager, has a new project idea. Before she begins building support for her idea, she begins by __________, which is explaining the idea to her boss to get his approval to seek wider support. A) making cheerleaders B) bootlegging C) horse trading D) clearing the investment E) getting the blessing


675)

Emilee works as a respected senior engineer for a large manufacturer of pharmaceutical process equipment. Several researchers within the company have discovered an innovative way to repackage pharmaceutical drugs. The company has given Emilee the opportunity to lead a fully funded project team for 12 months to develop this idea. She is excited to lead this __________ team. A) spin-off B) skunkworks C) bootlegging D) social capital E) venture capital

676)

Informal efforts, as opposed to official job assignments, in which employees work to create new products and processes of their own choosing and initiative refer to A) spin-offs. B) skunkworks. C) bootlegging. D) horse trading. E) sponsorship.

677)

Sergey works as a technician for a large manufacturer of biomedical equipment. He has discovered a technique to produce composite materials more efficiently. The company encourages its employees to pursue new ideas on company premises. Syd's company supports A) bootlegging. B) skunkworks. C) spin-offs. D) delegation. E) corporate espionage.

678)

Which statement is accurate regarding organizations with successful intrapreneurial initiatives? A) They over rely on a single project. B) They foster the entrepreneurial spirit throughout the organization. C) They spread efforts over many small-scale projects. D) They resist changing the status quo. E) They wait to complete one large, innovative project before encouraging another.


679)

The most dangerous risk in intrapreneurship is that of A) spreading intrapreneurial efforts over too many projects. B) over relying on a single large project. C) working on too many underfunded projects. D) maintaining the status quo. E) engaging in prospects that are too risky.

680)

In the context of entrepreneurial orientation, __________ occurs when an organization is willing to commit significant resources and perhaps borrow heavily to venture into the unknown. A) independent action B) innovativeness C) risk taking D) competitive aggressiveness E) proactiveness

681)

An organization with a tendency toward __________ grants individuals and teams the freedom to exercise their creativity, champion promising ideas, and carry them through to completion. A) independent action B) innovativeness C) risk taking D) competitive aggressiveness E) proactiveness

682)

Carlos has a new idea to revamp the mail processing at his large company. His boss tells him to go for it and report back on the barriers and efficiencies of his idea, thereby endorsing the __________ approach. A) job sharing B) spinoff C) skunkworks D) job shadowing E) benchmarking


683)

Recently, Global View executives anticipated a future market, recognized their lack of a technology to exploit that market, and acquired exclusive rights to license a technology that would, in two years, put them in a premier competitive position. This company is displaying __________ in anticipating future problems and opportunities. A) competitive aggressiveness B) innovativeness C) proactiveness D) independent action E) dependent action

684)

If a company is striking fast to beat competitors to the punch, tackle them head-on, and analyze and target competitors' weaknesses, then they are practicing A) opportunity analysis. B) competitive aggressiveness. C) proactiveness. D) innovativeness. E) ethical patterns.

685)

Companies should tolerate, and even encourage, informal efforts in which employees work to create new products and processes of their own choosing and initiative. Such efforts are known as A) bootlegging. B) entrepreneurial orientation. C) competitive aggressiveness. D) risk-taking. E) horse trading.

686)

Which step is unlikely to build internal support for a new market opportunity? A) horse trading B) making cheerleaders C) clearing the investment D) ignoring the risks E) getting a blessing


687)

Marcella, Vice President of Development for a large automobile manufacturer, has developed a radically different marketing strategy. Before she presents the idea to the CEO, she first consults with the other vice presidents to get their input and support. This step in building support for an idea is known as A) horse trading. B) making cheerleaders. C) getting the blessing. D) clearing the investment. E) persistence and logic.

688)

In building support for your idea within your firm, you might engage in horse trading. This involves A) ensuring that your immediate boss understands and approves your idea. B) offering promises of payoffs from the project in return for support, time, money, and other resources that peers and others contribute. C) ensuring that your peers back your idea before you commit to it. D) engaging in informal work of your own choosing and initiative. E) making a formal presentation to higher-level managers to ensure that the idea is feasible.

689)

Organizations with an entrepreneurial orientation are more likely to be successful, particularly for A) conducting business internationally. B) low-reward (low-profit) businesses. C) conducting business locally. D) low-risk businesses. E) maintaining the status quo.

690)

Organizations which encourage intrapreneurship know they face risk. They must realize that the risk is A) unacceptable to stakeholders. B) manageable. C) highly dangerous. D) hidden. E) overwhelming.


691)

Your roommate excitedly tells you that she has decide to become an entrepreneur. Her primary reason, she says, is that entrepreneurship is a perfect match for her. You decide this is true because your roommate displays which attribute? A) She jumps into new ventures without much thought. B) She enjoys gambling on long shots. C) She is motivated mostly by money. D) She takes careful and calculated risks. E) She is frequently hesitant and indecisive.

692)

"As a budding entrepreneur 40 years ago, I naively looked forward to being my own boss and independent," said Scott, owner of a small design firm. "I didn't realize that, in fact, I would have to answer to many __________, including partners, customers, suppliers, creditors, employees, and families." A) stakeholders B) promoters C) investors D) social capitalists E) inventors

693)

"There are many good reasons why you might want to go into business for yourself," said Dr. Felton to her PhD candidate. "But these good reasons do not include A) seeking challenge, profit potential, and enormous satisfaction." B) watching the market embrace your ideas and products." C) seeking power and control over others." D) finding one's progress or ideas blocked at big corporations." E) finding conventional paths to economic success closed."

694)

"I am so proud of my former marketing students," said Dr. Marshall. "So many have become successful entrepreneurs because they were able to spot, create, or exploit __________ in a variety of ways." A) adventures B) opportunities C) risks D) gambles E) benchmarking targets


695)

"My niche is designing smartphone apps for senior citizens, a growing market due to the aging of the Baby Boomer generation," said entrepreneur programmer Clayton. "Examples include apps for helping a shopper find his car in a parking lot, for keeping track of medications, and for monitoring blood pressure." Clayton is developing entrepreneurial opportunities based upon events and trends as they unfold—in this case, due to A) lifestyle and taste changes. B) demographic changes. C) economic dislocations. D) calamities. E) government initiatives and rule changes.

696)

The recovery and rebuilding efforts on the Gulf Coast due to recent devastation from hurricanes will require years. Many volunteers and companies have temporarily moved into the area to provide help. To provide housing for these workers, one entrepreneur developed Ready-Home Corporation. This business opportunity was created as a result of A) a technological discovery. B) demographic changes. C) an economic dislocation. D) a calamity. E) government initiatives and rule changes.

697)

Personalized medicine separates people into different groups, with treatments being tailored to the individual patient based on their predicted response or risk of disease. Personalized medicine is enabled by new diagnostic and monitoring approaches that provide understanding of the molecular basis of disease, particularly genomics. Entrepreneurial opportunities for software and hardware that arise in personalized medicine are made possible by A) technological discoveries. B) lifestyle changes. C) demographic changes. D) government rule changes. E) economic dislocations.


698)

Adam uses his father's yard equipment to start up a lawn mowing business during summer break from school, to earn enough money to buy books in the fall. According to the entrepreneurial strategy assessment matrix, Adam’s business can be described as A) low innovation/high risk. B) low innovation/low risk. C) high innovation/low risk. D) high innovation/high risk. E) high innovation/no risk.

699)

Maya is seeking investors for her start-up firm to develop robotic rovers to collect and analyze dust samples from the surface of the planet Mercury. According to the entrepreneurial strategy matrix, Maya’s business can be described as A) low innovation/high risk. B) low innovation/low risk. C) high innovation/low risk. D) high innovation/high risk. E) high innovation/no risk.

700)

Sally is opening up a family diner at a busy intersection along an interstate highway. According to the entrepreneurial strategy matrix, Sally’s business can be described as A) low innovation/high risk. B) low innovation/low risk. C) high innovation/low risk. D) high innovation/high risk. E) high innovation/no risk.

701)

The CEO of the largest fast food franchise in the world has approved an expenditure of $3 million to develop a software app for remote custom "design" and ordering of burgers. According to the entrepreneurial strategy matrix, this software app venture can be described as A) low innovation/high risk. B) low innovation/low risk. C) high innovation/low risk. D) high innovation/high risk. E) high innovation/no risk.


702)

Alana seeks to open a new apparel business. She has completed the first formal stage of the planning process—the opportunity analysis. In so doing, she has A) prepared for an initial public offering (IPO). B) performed a strengths/weaknesses/opportunities/threats (SWOT) analysis. C) developed a means to employ formal control systems. D) described the service, assessed the opportunity, assessed herself, and specified the activities and resources (including funding) needed to move the idea to a viable business. E) created a business plan.

703)

Alijah has conducted an opportunity analysis of her proposed new entrepreneurial venture. Based upon this analysis, she believes that her idea is viable. Alijah will now proceed to the next step of the planning process for entrepreneurial ventures, that is, a(n) A) environmental analysis. B) SWOT analysis. C) promotional plan. D) operational plan. E) business plan.

704)

Bartek has been developing contacts and heightening his profile in his community; that is, he has been creating his __________. He knows that nonfinancial resources will be crucial to the success of his entrepreneurial venture. A) social capital B) side street effect C) skunkworks team D) internal cheerleaders E) business plan


705)

Everett’s boss told him, "This one-year confidential project is a great intrapreneurial opportunity for you. You will be teamed with some of the best minds in the company and you and your team members will earn a significant reward if you develop a new, innovative product. And, on top of that, I'll hold your current job open for you if you decide that you want it after the project is over. Not many professionals have an opportunity to work on a(n) __________ as I've described. Congratulations!" A) IPO B) skunkworks C) business incubator D) advisory board E) business plan

706)

Distinguish between a small business and an entrepreneurial venture.

707)

What are some of the reasons people become entrepreneurs?

708)

Describe the differences between entrepreneurs, inventors, promoters, and managers.


709)

In the context of the opportunity for starting a business, what are some of the possibilities that entrepreneurs can exploit?

710)

What are the five business models that have proven successful for e-commerce?

711)

Describe some of the characteristics that make a person more likely to succeed as an entrepreneur.

712)

In the context of the entrepreneurial strategy matrix, describe the four kinds of new ventures.

713)

Describe the major management challenges associated with entrepreneurship.


714)

Describe the five key planning elements used in developing the best business plans.

715)

Describe the five tendencies that determine entrepreneurial orientation.

716)

Compare and contrast entrepreneurs and intrapreneurs.

717)

How are entrepreneurs and inventors different? Give an example.

718)

Discuss how an entrepreneur decides on an economic opportunity. Provide a specific example.


719)

List and describe the differences between the transaction fee model and the intermediary model in e-commerce. Use examples to demonstrate your response.

720)

Describe the characteristics of a successful entrepreneur.


Answer Key Test name: chapter 6 1) TRUE 2) FALSE 3) TRUE 4) TRUE 5) FALSE 6) TRUE 7) FALSE 8) TRUE 9) A 10) B 11) D 12) A 13) A 14) D 15) C 16) A 17) B 18) C 19) A 20) B 21) D 22) B 23) A 24) A 25) B 26) C 27) A 28) A 29) D 30) E 31) C 32) A 33) A 34) B 35) A 36) D 37) B


38) B 39) D 40) D 41) B 42) C 43) C 44) D 45) D 46) A 47) D 48) D 49) A 50) D 51) C 52) B 53) A 54) C 55) D 56) A 57) A 58) C 59) C 60) C 61) D 62) A 63) D 64) C 65) A 66) C 67) D 68) E 69) A 70) B 71) D 72) D 73) E 74) A 75) D 76) B 77) C


78) A 79) B 80) B 81) C 82) A 83) C 84) C 85) B 86) A 87) D 88) B 89) B 90) A 91) B 92) D 93) A 94) C 95) B 96) B 97) D 98) A 99) B 100) 101) 102) 103) 104) 105) 106) 107) 108) 109) 110) 111) 112) 113) 114) 115) 116) 117)

D A C D E A B Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay


118) 119) 120) 121)

Essay Essay Essay Essay

Student name:__________ 721)

In an organization, when there are many subunits and many specialists who think differently, differentiation is said to be high. ⊚ true ⊚ false

722)

Ten employees work under the supervision of Eddie, the manager of Elegant Day Salon. Eddie reports directly to the owner; therefore, in the context of span of control, Elegant Day Salon is a flat organization. ⊚ true ⊚ false

723)

Although she has an accounting degree, Dallas works as a recruiter in the human resources department of a major accounting firm. Dallas works for a line department. ⊚ true ⊚ false

724)

In general, coordination methods within an organization include standardization, plans, and mutual adjustment. ⊚ true ⊚ false

725)

Coordination by plan deals with establishing common routines and procedures that apply uniformly to everyone. ⊚ true ⊚ false


726)

Sometimes, competitors create strategic alliances. ⊚ true ⊚ false

727)

In a high-involvement organization, top management determines and dictates the direction in which the business is heading. ⊚ true ⊚ false

728)

Information conveyed by a conventional organization chart includes the A) work performed by each unit in the organization. B) products manufactured by the organization. C) manner in which decisions are made in the organization. D) geographical location of the organization. E) method in which the organization will interact with the external environment.

729)

In organizing, coordination refers to A) the expectation that employees will perform a job and take corrective action when necessary. B) a process in which different individuals and units perform different tasks. C) the procedures that link the various parts of an organization to achieve the organization's overall mission. D) the legitimate right to make decisions and to dictate to other people what to do. E) a process that separates units based on products, customers, or geographic regions to reduce integration among the units.

730)

Harvard professors Lawrence and Lorsch found that organizations in complex, dynamic environments A) needed minimal integration among its units. B) are unable to implement any innovation. C) had to develop high differentiation in order to succeed. D) were more likely to introduce new products soon after an acquisition. E) had little job specialization if they were profitable.


731)

__________ is the assignment of different tasks to different people or groups in an organization. A) Locus of control B) Standardization C) Division of labor D) Coordination E) Flexibility

732)

__________ is the process in which different individuals and units perform different tasks. A) Coordination B) Formalization C) Standardization D) Specialization E) Integration

733)

In a(n) __________ organization, managers encourage employees to work more as teammates than as subordinates who take orders from the boss. A) organic B) hierarchical C) bureaucratic D) mechanistic E) formal

734)

What is a characteristic of a mechanistic organization? A) an informal organizational structure B) obedience to authority as an expression of commitment C) broad and evolving job responsibilities D) a high degree of employee interdependence E) decentralized decision making


735)

The organization chart depicts the A) geographical location of the different branches of a business. B) positions in the firm and the way they are arranged. C) office assignments by area of the firm. D) responsibilities of each job specification. E) phone numbers for each employee.

736)

The more highly differentiated a firm is, A) the greater the need for integration among its units. B) the lesser the need for integration among its units. C) the less specialized its work product is. D) the greater its competitive advantage. E) the flatter the organizational structure.

737)

In the vertical structure of a firm, authority is the A) legitimate right of a manager to make decisions and to tell other people what to do. B) ability of managers to avoid accountability for their subordinates' actions. C) unconditional power of managers to speak or act as they wish in the workplace. D) power of subordinates to band together for change. E) influence a manager has over his or her subordinates' personal life.

738)

__________ is a structure authority directly related to the three broad levels of the organizational pyramid. A) Hierarchy B) Commitment C) Locus of control D) Specialization E) Division of labor


739)

In the context of a firm's vertical structure, a powerful trend for U.S. businesses over the past few decades has been to A) reduce the number of hierarchical layers. B) replace flat organizational structures with tall organizational structures. C) increase the number of reporting levels. D) increase formalization. E) limit decision-making authority to top management.

740)

In a vertical structure, narrow spans of control build a(n) __________ organization with many reporting levels. A) flat B) wide C) tall D) decentralized E) informal

741)

In the context of the vertical structure of a firm, a wide span of control builds a __________ organization with few reporting levels. A) flat B) centralized C) tall D) bureaucratic E) formal

742)

The span of control should be wide when A) tasks are not clearly defined and instructions are ambiguous. B) subordinates are poorly trained. C) employees' access to information is restricted. D) jobs are similar, and performance measures are comparable. E) subordinates prefer close supervisory control to autonomy.


743)

In __________, new or additional responsibilities to a subordinate are assigned. A) mutual adjustment B) centralization C) delegation D) integration E) job specialization

744)

An employee who has __________ is supposed to carry out specified tasks. A) responsibility B) authority C) coordination D) unity-of-command E) span of control

745)

__________ is the expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance. A) Delegation B) Accountability C) Job specialization D) Mutual adjustment E) Span of control

746)

Which statement about delegation of responsibility and authority is correct? A) It does not require a subordinate to report back to his or her boss. B) Managers should use delegation to escape their own responsibilities. C) It can occur between any two individuals in any type of structure with regard to any task. D) All managers are comfortable fully delegating assignments to their subordinates. E) People usually have more authority than responsibility.


747)

In order for delegated tasks to be done, a manager must also ensure the individual can draw on the necessary resources and make decisions to complete the work. In other words, the manager also delegates A) authority. B) credit. C) span of control. D) status. E) ultimate responsibility.

748)

Marcus, a human resource intern, was given an assignment by his manager that meant he must obtain information from other departments to complete it, but some departments refused to share information with an intern. Marcus was frustrated because he did not have the power to get the information he needed. In the context of this situation, Marcus’ manager made the mistake of A) delegating inappropriate tasks to an intern. B) assigning responsibility without delegating adequate authority. C) "passing the buck" for the intern’s performance. D) becoming accountable for someone else’s work. E) overestimating the intern’s capabilities.

749)

In the context of delegation, a common problem faced by a subordinate in carrying out a delegated task is A) being forced to learn a new skill. B) being given more responsibility than authority. C) depending on autonomy rather than close supervisory control. D) eliminating any opportunity for creativity. E) having to report to the manager about the status and quality of performance.

750)

An advantage of delegation is that it A) allows managers to exercise closer supervisory control. B) helps managers to escape their own responsibilities. C) conserves managers' most valuable asset—their time. D) increases managers' influence over their subordinates. E) makes subordinates less responsible and accountable.


751)

The first step in the delegation process, defining the goal, requires a manager to A) identify the employee he or she favors the most. B) understand the nature of each employee. C) recognize the most responsible employee. D) clearly understand the outcome he or she wants. E) identify a tedious assignment that can be avoided.

752)

Which statement is accurate about effective delegation? A) Once a task has been delegated, the manager need not be available. B) Tasks such as disciplining subordinates and conducting performance reviews are best delegated. C) A manager can withhold resources for completion of the delegated task. D) The ideas of the subordinate should not be taken into consideration during delegation. E) Throughout the delegation process, the manager and the subordinate must work together.

753)

In a(n) __________ organization, important decisions usually are made at the top. A) informal B) centralized C) flat D) organic E) decentralized

754)

Janelle recently accepted a job with a reputed bank as an internal auditor. Her new company had strictly defined job responsibilities and lines of communication. For every decision she needed to make, approval had to be obtained from upper management. Overall, she found the atmosphere to be quite formal. Janelle’s organization has a A) wide span of control. B) high degree of centralization. C) flat organizational structure. D) matrix organizational design. E) narrow locus of control.


755)

In __________ organizations, more decisions are made at lower levels of management. A) tall B) formal C) mechanistic D) decentralized E) narrow

756)

During tough times, senior managers often take charge within the organization. During times of rapid growth, decisions are often A) pushed higher up the chain of command. B) delayed indefinitely. C) ignored. D) made exclusively by top management. E) pushed to lower levels.

757)

758)

In a centralized organization, __________ make all the important decisions. A) project managers B) top managers C) shareholders D) front line managers E) staff

Jonas does not want a management position. He is highly respected by clients, competitors, and coworkers, due to his expertise, experience, and personal qualities. When a major business decision is required, even the division manager above Jonas in the hierarchy asks his opinion. Even though Jonas has no formal management authority, he has __________ authority. A) divisional B) seniority C) centralized D) decentralized E) informal


759)

The __________, led by the chairperson, makes major decisions, subject to corporate charter and bylaw provisions. A) stockholders B) board of directors C) employees D) customers E) front-line managers

760)

After a different vice president is assigned to head the division for the second time in five years, Maria’s job as a middle manager does not really change. She carries out the same tasks, attends the same meetings, and sends in the same reports to the new vice president as she always does. What can be accurately determined about this organization? A) Management is highly capable and supportive. B) This organization has an optimal span of control. C) Authority resides in the position, not the people. D) This organization has a wide span of control. E) Informal authority is more valued than formal authority.

761)

Howard wanted to delegate an important task to a subordinate, and he had several candidates in mind. He decided to delegate the task to Arjun, who is not only capable but who also offers the advantage of A) taking all accountability and credit onto himself. B) benefiting from developing skills through assuming additional responsibility. C) ignoring a sense of importance and commitment. D) failing to engage in more innovation. E) requiring close and time-consuming supervision.

762)

In decentralized organizations, decision making occurs at the level of the people who are most directly __________ and have the most __________ about the problem. A) harmed; serious misgivings B) affected; intimate knowledge C) affected; ignorance D) benefited; serious fears E) harmed; intimate knowledge


763)

In the context of horizontal structure of a firm, __________ are those that have responsibility for the principal activities of the firm. A) staff departments B) public relation divisions C) geographic divisions D) line departments E) human resource divisions

764)

In a horizontal structure, __________ deal directly with the organization's primary goods or services; they make things, sell things, or provide customer service. A) public relation divisions B) accounting divisions C) staff departments D) organic structures E) line departments

765)

766)

Subdividing an organization into smaller units in a horizontal structure is A) departmentalization. B) positioning. C) decentralization. D) delegating. E) standardization.

In a __________ organization, jobs (and departments) are specialized and grouped as production, marketing, human resources, research and development, finance, accounting, and so forth based on the skills they require. A) divisional B) network C) matrix D) functional E) product-oriented


767)

An advantage of functional departmentalization is that A) managers care more about the company as a whole than just their departments. B) employees are able to focus exclusively on customer satisfaction. C) it encourages managers to become generalists. D) economies of scale can be realized. E) there is increased coordination between different functions.

768)

Exceptional Performance, a worldwide leader in athletic apparel products, operates divisions in North America, South America, Europe, and Asia-Pacific. Each division is managed independently and has its own line and staff departments to better align with A) geographies. B) functions. C) processes. D) legal requirements. E) products.

769)

A __________ organization has departmentalization that groups units around products, customers, or geographic regions. A) divisional B) centralized C) network D) functional E) virtual

770)

To be effective, the __________ approach to departmentalization requires proper management of all the issues surrounding decentralization and delegation. A) functional B) product C) hierarchical D) bureaucratic E) mechanistic


771)

Global Gold, Inc. manufactures and distributes athletic wear, sporting equipment, and protective sports gear worldwide. They are departmentalized based on products sold to professional athletes, products sold to people who pursue sports only for leisure, and products sold to sports teams. Which divisional approach does the company follow? A) geographic B) functional C) matrix D) customer E) product

772)

Which statement is accurate about a matrix organization? A) It creates an environment in which the unity-of-command principle is strictly followed. B) It is a collection of independent, mostly single-function firms that collaborate to produce a good or service. C) It is composed of dual reporting relationships in which some employees report to two superiors. D) It involves holding employees together by contracts that stipulate results expected, rather than by hierarchy and authority. E) It results in a highly centralized decision-making system.

773)

A characteristic feature of matrix organizations is that A) resource utilization is inefficient. B) higher management levels are overloaded with operational decisions. C) the principle of unity-of-command is followed. D) the decision-making process is highly centralized. E) more career options become available.

774)

A disadvantage of a matrix organization is that A) reporting to two superiors can cause confusion. B) people may care more about their own function than about the company as a whole. C) higher management levels are overloaded with operational decisions. D) resource utilization becomes inefficient because resources are not shared. E) employees have frequent meetings and more informal interactions.


775)

A __________ is composed of temporary arrangements among members that can be assembled and reassembled to meet a changing competitive environment. A) modular network B) mechanistic organization C) divisional organization D) functional organization E) hierarchical network

776)

The CEO of Virtual Solutions decides to reorganize her firm into a(n) __________ organization. In this approach, Virtual Solutions will collaborate with other independent, mostly single-function firms to provide a desired service. A) matrix B) network C) divisional D) functional E) organic

777)

Greenfield Farm Equipment operates worldwide and is organized into a(n) __________ structure. Within this structure, each of the four division presidents and their respective employees are committed to the tractor, planter, combine, and silo businesses, respectively. Within these four divisions, task responsibilities are clear, and managers are more independent and accountable. A) organic B) functional C) product D) matrix E) customer

778)

The unity-of-command principle states that a person should have A) multiple managers. B) only one boss. C) no boss. D) at least two bosses. E) several bosses.


779)

In the __________ approach to organization structure, decision making is decentralized to a level where information is processed properly and relevant knowledge is applied. A) matrix B) organic C) functional D) product E) hierarchical

780)

A(n) __________ is a person who assembles and coordinates participants in a network. A) entrepreneur B) broker C) innovator D) chairperson E) intrapreneur

781)

In the horizontal structure of a firm, line departments A) depend on being an expert in a particular function for their growth. B) provide specialized or professional skills that support other departments. C) make things, sell things, or provide customer service. D) depend on the staff departments to make major operating decisions. E) cannot be held accountable for the "bottom-line" results of their decisions.

782)

A disadvantage of the traditional functional approach to departmentalization is that A) employees may care more about the company as a whole than their respective departments. B) the approach makes managers generalists, not specialists. C) people may pay more attention to customer satisfaction than to functional tasks. D) communication between functions may fall off due to conflicts. E) the structure limits functional differentiation.


783)

Which statement is accurate about a network organization? A) A network organization limits the amount of information shared between its members. B) In a network organization, the technical specialization of the functional structure is absent. C) A network organization lacks the market responsiveness of the product structure. D) In a network organization, managers within the organization interact closely with members outside it. E) A network organization is a single firm in which jobs are specialized and grouped according to business functions.

784)

In organizational integration, __________ means establishing common routines and operating procedures that apply uniformly to everyone. A) specialization B) unity-of-command C) mutual adjustment D) authorization E) standardization

785)

__________ refers to a situation when interdependent units create deadlines and objectives that contribute to shared goals. A) Coordination by plan B) Unity-of-command C) Standardization D) Formalization E) Centralization

786)

The approach to __________ involves feedback and discussions to jointly figure out how to approach problems and devise solutions agreeable to everyone. A) coordination by mutual adjustment B) unity-of-command C) coordination by specialization D) standardization E) authoritative decision making


787)

Managers can cope with high uncertainty and heavy information demands by reducing the need for information or A) limiting horizontal relationships. B) increasing information-processing capability. C) creating interdependent tasks. D) cutting spending on information systems. E) reducing all types of resources.

788)

Galaxy Corporation and Adventure Inc. often compete with one another in the marketplace. A new business area is emerging that appeals to both firms. However, organizations that will successfully compete in the new business area will need to have a robust laboratory capability as well as an established construction capability. Galaxy has the former, and Adventure has the latter. Although unusual for two competitors, they negotiate and create a(n) __________. Under the terms of this agreement, the two firms formally and jointly pursue their mutual goals. A) merger B) strategic alliance C) learning organization D) vertical integration E) related diversification

789)

A __________ is an organization skilled at creating, acquiring, and transferring knowledge as well as at modifying its behavior to reflect new knowledge and insights. A) learning organization B) conglomerate C) mechanistic organization D) formal organization E) closed system

790)

In the context of organizational agility, learning organizations are skilled at A) basing their decisions on guesswork and assumptions. B) avoiding change or modifying behaviors. C) focusing on employee needs over customer needs. D) finding quick fixes to current problems. E) experimenting with new approaches.


791)

A __________ organization is one in which top management ensures that there is consensus about the direction in which the business is heading. A) centralized B) high-involvement C) mechanistic D) unity-of-command E) bureaucratic

792)

A characteristic of a high-involvement organization is that A) employee participation in decision making is limited. B) the organization has a flat, decentralized structure built around a customer, good, or service. C) the employees at lower levels of management are not held accountable for delivering a good or service. D) people who try to expand their skills beyond their job profile are discouraged. E) decision making is done independently by experts in the top management.

793)

__________ is a way of managing in which everyone is committed to continuous improvement of his or her part of the operation. A) Mass customization B) Participative management C) Unity-of-command D) Micromanagement E) Total quality management

794)

One of W. Edwards Deming's "14 points" of quality is to A) strive for short-term improvement rather than long-term profit. B) ensure compliance by inducing fear among those who deviate from process. C) allow autonomy and spontaneity. D) use numerical quotas regularly. E) rely on mass inspection to ensure quality.


795)

__________ use(s) statistical tools to analyze the causes of product defects. A) Six sigma quality B) Mass customization C) Mass inspection D) Mutual adjustment E) Just-in-time operations

796)

Morgan owns and manages a custom woodworking business. She and her staff of four craftspeople work informally together, and each worker tends to make decisions in an independent (decentralized) manner. Morgan’s business is a __________ operation. A) small batch B) functional C) continuous process D) mass production E) just-in-time

797)

In the context of technology configurations, which statement is true of large batch technologies? A) Goods or services are provided in low volumes. B) Organizational structure tends to be organic. C) Decision making tends to be decentralized. D) Communication is highly informal. E) Hierarchical authority is more prominent.

798)

What characterizes firms such as International Paper that use continuous process technologies? A) They tend to require more supervision than other technologies. B) People are removed from the work itself. C) They provide a variety of low-volume, customized services. D) Communication tends to be highly formal. E) They are characterized by a large number of rules and formal procedures.


799)

__________ is the production of both high-volume and high-variety products at the same time. A) Lean manufacturing B) Mass customization C) Just-in-time production D) Large batch technology E) Continuous process technology

800)

__________ strives to achieve the highest possible productivity and total quality, costeffectively, by eliminating unnecessary steps in the production process and continually striving for improvement. A) Lean manufacturing B) Continuous processing C) Mass customization D) Large batch technology E) Crowdsourcing

801)

Which statement is true of flexible factories? A) They use centralized scheduling, in which decisions are made on the shop floor. B) They move parts down the line from one location in the production sequence to the next. C) They are organized around products, in work cells or teams. D) They generate high volumes of a standardized product. E) They have long production runs with fewer products.

802)

For the lean manufacturing approach to work well, A) specific-purpose equipment must be used. B) product development should be sequential rather than concurrent. C) supplier relationships should be short term and changeable. D) communication must be formal among line workers. E) people should be broadly trained rather than specialized.


803)

A just-in-time philosophy strives to increase a firm’s competitive advantage based on eliminating waste and increasing A) volume. B) quality. C) production. D) speed. E) distribution.

804)

Neven’s specialty pharmaceuticals packaging firm needs to be more agile in order to be competitive in the marketplace. Foregoing buying a full-service laboratory because of the investment and risk, Neven decides to form a __________ with a chemical firm in China that has a laboratory but lacks a packaging business. Each company brings a complementary capability to the other, allowing them to pursue mutual goals. A) high-involvement organization B) strategic alliance C) matrix organization D) lean production facility E) learning organization

805)

__________ is a system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process as they are needed. A) Mass production B) Offshoring C) Total quality management D) Continuous process E) Just-in-time


806)

With the impending retirements of very talented senior staff, Delia was concerned that Good Home Inc., her employer, was not planning for the future. Spurred on by her concern, Delia convinced management to budget and build a knowledge management system to create, acquire, store, and transfer knowledge in order to modify Good Home’s behavior to reflect new knowledge and insights. Two years later, Delia was proud to reflect on her success in helping the company become a(n) __________ organization. A) network B) matrix C) learning D) functional E) mechanistic

807)

A plant manager directed his top production engineer to sign up for an upcoming statistical quality workshop. The plant manager said, "I've long been a student of total quality management. I've decided to introduce a statistical approach called __________ into our production process to analyze the causes of product defects, so that we can then eliminate those defects." A) six sigma B) mass customization C) JIT delivery D) lean manufacturing E) simultaneous engineering

808)

Trish manages a factory that manufactures automotive wiring harnesses. Her customers require that their suppliers be __________ certified, so that the suppliers' products are compliant with specified voluntary quality standards—standards that are recognized worldwide. A) green B) ISO 9001 C) small batch D) large batch E) JIT


809)

Enrique, a management intern, was tasked with investigating ways for the firm to more effectively compete on a global basis. He was intrigued to learn about __________ as a framework by which to improve quality and to gain certification in accordance with these quality standards. A) ISO 9001 B) TQM 2001 C) JIT D) STP 5000 E) IPO

810)

Jose complained to his fellow division manager, "Our company is bogged down with cumbersome bureaucratic requirements. We must convince our executive leadership that we need to act fast to meet customer needs and to respond to other outside pressures! We need to correct past mistakes quickly and prepare for an uncertain future! We must respond to threats and capitalize on opportunities! We must place a premium on __________!" A) agility B) size C) TQM D) formalization E) delegation

811)

Charlotte manages a large chemical plant that manufactures a few specialty products for the roofing industry. As a __________ operation, the plant manufactures products in large volumes but with little variety. Production is not continuous but is standardized. Charlotte manages the plant in a formal and hierarchical manner, and most major decisions are made by her. A) job shop B) large batch C) six sigma D) just-in-time E) modular


812)

Nate told his boss, "Unless we invest in new technology, such as computer-integrated manufacturing (CIM), we will not be able to deliver more high-variety and high-volume products. With CIM, we will have computer-aided __________, so that the work of our engineers and factory workers will be more in sync." A) purchasing and shipping B) design and manufacturing C) inventory and shipping D) purchasing and packaging E) ordering and manufacturing

813)

Armand told his management team, "Our design and production process occurs in an orderly, yet slow, process, from research to engineering to manufacturing. To be more competitive, we must speed up our research and product development through the use of __________. In this manner, we will incorporate the issues and perspectives of all the functions—including suppliers and customers—from the beginning of the process." A) small batch processing B) simultaneous engineering C) just-in-time production D) large batch processing E) standardization

814)

With the cost of warehouse space and maintaining inventory increasing, Drake has decided to change the operation of his company to a "just-in-time" (JIT) mode, whereby manufacturing is initiated only upon customer order and only in very small lots, minimizing the company's warehouse and inventory costs. However, Drake is nervous about the change because he knows that JIT offers costs savings only when the costs of storing product are greater than the costs of A) rework. B) TQM. C) frequent delivery. D) small batches. E) large batches.


815)

The CEO for Carlson Corporation has announced to the management team that it has been decided to implement lean manufacturing at the Southside plant. The CEO stated, "I want to eliminate unnecessary steps in the production process and continually strive for __________. We must emphasize quality, speed, and flexibility." A) improvement B) mass customization C) just-in-time delivery D) computer-integrated manufacturing E) standardization

816)

The CEO of TruTone Manufacturing tells her executive management team that the company must become more agile to stay competitive. She says, "We have several options to improve our agility, a couple that we have already started to implement. But, most importantly, I believe that we need to organize around our primary strengths and expertise: our __________." A) marketing capabilities B) core capabilities C) research capabilities D) engineering capabilities E) functional capabilities

817)

In terms of organizational agility, technology refers to the methods, processes, systems, and skills used to A) create quality standards. B) improve core capabilities. C) transform resources into products. D) increase flexible manufacturing. E) develop strategic alliances.


818)

Latisha has been promoted to a managerial position in Betty’s Bakery. One of her jobs is to coordinate employee vacation schedules. However, the owner of the company overrides her decisions. Consequently, her subordinates do not respect her position as a manager. Latisha has identified the problem, and it is that the A) company has a wide span of control. B) owner has not delegated enough authority to enable her to do her work. C) employees prefer to be guided by another manager. D) owner wants to follow the unity-of-command principle. E) company follows a decentralized decision-making process.

819)

Karl is a recently promoted manager at Good for You Foods, winning the position over his former peers. His peers do not see Karl as their supervisor; they continue to think of him and treat him as a peer. As a result, Karl must rely more on __________ to get his work done and to manage his staff. A) centralized decision making B) external locus of control C) authority D) informal influence tactics E) standardization

820)

In a five-year time period, Zeke’s organization has grown from a one-man motorcycle repair shop to a custom bike manufacturing/assembly and rebuild business employing 32 mechanics and technicians. Due to Zeke’s difficulty in delegating responsibility, he makes almost all business and design/technical decisions. As a result, he is working 80 hours per week, and the business has stopped expanding Zeke’s business is a(n) __________ organization. A) centralized B) decentralized C) organic D) matrix E) learning


821)

Prior to going on vacation for two weeks, the division manager assembled his management team and said, "In my absence, Sophie will serve as acting division manager. I know that all of you will give Sophie your full support and complete any projects she assigns." In this situation, Sophie will gain A) informal authority. B) span of control. C) permanent formal position authority. D) authority and responsibility. E) ultimate responsibility.

822)

As vice president of human resources at Oswald Industries, Asher enjoys working alongside his peer vice presidents, largely because they all have different skills and all manage different parts of the organization, including research, engineering, production, construction, procurement, and finance. Oswald Industries is a(n) __________ organization. A) functional B) divisional C) matrix D) network E) modular network

823)

After a major international expansion, the CEO of Scofield Corporation announced the new corporate structure by naming vice presidents for the newly established Far East Division, Middle East Division, European Division, and the Americas Division. Scofield Corporation's new structure follows the __________ approach to departmentalization. A) functional B) product C) geographic D) customer E) matrix


824)

Tomas meets with his group leader and says, "I’m not sure what to do. I have conflicting direction from several managers. James wants me in the field next week across town. Anya wants me in the field next week out of state. And I know that you would like me to work next week in the office." His group leader replies, "We will solve this problem through communications and prioritization. We work for a __________ organization and having dual or even more lines of command can be confusing." A) functional B) divisional C) network D) traditional E) matrix

825)

Rachael works in a matrix organization, and although she found it confusing at first, she has seen the inherent opportunities. Instead of being promoted from biology head to research head, Rachael prefers a project career, with opportunities to serve in increasingly responsible and diverse project manager/project director positions. Fortunately, one of the strengths of a matrix organization is A) a clear and singular line of command. B) adherence to the unity-of-command principle. C) centralized decision making. D) more career choices, on both sides of organization. E) focused and limited communications networks.

826)

Compare and contrast differentiation and integration. How are differentiation and integration related in an effective organization?

827)

Briefly describe the structure and functions of the board of directors in a large company.


828)

What are the conditions under which the span of control should be wide? What describes an optimal span of control?

829)

What are the differences in responsibility, authority, and accountability?

830)

Compare and contrast centralized and decentralized organizations.

831)

What are the advantages of the traditional functional approach to departmentalization?

832)

What management behaviors can help avoid the inherent issues caused by a matrix organizational structure?


833)

Differentiate between coordination by plan and coordination by mutual adjustment in organizational integration.

834)

In the context of coordination in an organization, discuss the two strategies that can be used by managers to cope with high uncertainty and heavy information demands. Support your explanation with examples.

835)

In the context of strategies to improve organizational agility, what should be the focus of managers who want to strengthen their firms' competitiveness?

836)

Briefly describe the three basic technologies that characterize how work is done in service as well as manufacturing companies.

837)

Differentiate between traditional factories and flexible factories.


838)

Define and discuss simultaneous engineering.

839)

Compare and contrast the roles of stockholders, board of directors, and brokers.

840)

Define a learning organization and then give at least two examples defending how they meet the definition.

841)

What are the ISO 9001 standards and how do they apply to management systems of publicly traded companies?


Answer Key Test name: chapter 7 1) TRUE 2) TRUE 3) FALSE 4) TRUE 5) FALSE 6) TRUE 7) FALSE 8) A 9) C 10) C 11) C 12) D 13) A 14) B 15) B 16) A 17) A 18) A 19) A 20) C 21) A 22) D 23) C 24) A 25) B 26) C 27) A 28) B 29) B 30) C 31) D 32) E 33) B 34) B 35) D 36) E 37) B


38) E 39) B 40) C 41) B 42) B 43) D 44) E 45) A 46) D 47) D 48) A 49) A 50) B 51) D 52) C 53) E 54) A 55) A 56) B 57) C 58) B 59) A 60) B 61) C 62) D 63) D 64) E 65) A 66) A 67) B 68) B 69) A 70) E 71) B 72) B 73) E 74) C 75) A 76) A 77) E


78) B 79) B 80) A 81) C 82) E 83) D 84) B 85) E 86) C 87) A 88) B 89) A 90) A 91) B 92) B 93) B 94) C 95) A 96) B 97) C 98) B 99) D 100) 101) 102) 103) 104) 105) 106) 107) 108) 109) 110) 111) 112) 113) 114) 115) 116) 117)

A D A C E D Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay


118) 119) 120) 121)

Essay Essay Essay Essay

Student name:__________ 842)

People can add value to an organization by helping to reduce costs and providing something unique to customers. ⊚ true ⊚ false

843)

In the context of strategic human resources management, well-chosen, motivated people are easy to imitate. ⊚ true ⊚ false

844)

Employment agencies are an internal recruitment tool used when a firm is seeking to acquire new skills. ⊚ true ⊚ false

845)

A behavioral description interview explores what a job candidate has done in a previous position. ⊚ true ⊚ false

846)

Coaching—being trained by a superior or a consultant—is usually the most effective and direct way to develop managers. ⊚ true ⊚ false


847)

Management by objectives involves a subordinate and a supervisor agreeing in advance on specific performance goals. ⊚ true ⊚ false

848)

A gainsharing plan is a type of group incentive system which aims to give employees a sense of participation. ⊚ true ⊚ false

849)

In collective bargaining, workers are paid while they are on strike. ⊚ true ⊚ false

850)

One of the criteria for creating a competitive advantage through human resources is that they should be A) expensive. B) easily available. C) inimitable. D) spontaneous. E) commonplace.

851)

In strategic human resources management, people can __________ by helping to lower costs and providing something unique to customers. A) provide buffering B) create value C) inspire motivation D) prevent turnover E) apply benchmarking


852)

On a day-to-day basis, __________ is a concern of human resources managers. A) managing layoffs B) assessing financial transactions C) product development D) funding increased salaries E) analyzing product failure

853)

In strategic HR planning, the planning stage involves A) ensuring the availability of the right number and types of people. B) determining appropriate automation methods. C) training hired individuals. D) determining the pay scales of employees. E) evaluating the results of implemented programs.

854)

In strategic HR planning, the programming stage involves A) hiring and firing employees. B) evaluating employee performance levels. C) determining appropriate automation methods. D) implementing specific activities like recruitment. E) calculating legally justifiable compensation levels.

855)

The final stage in the human resources planning process involves A) evaluating activities to ensure that they are producing the desired results. B) discharging employees ineffective at realizing organizational goals. C) restarting the entire process. D) evaluating the decisions made for legal compliance. E) distributing compensation adjustments.


856)

When a software company developed a new smartphone, it determined how many production and marketing employees would be required for the launch. The company was involved in A) demand forecasting. B) outplacement. C) performance appraisal. D) job analysis. E) training and development.

857)

Everworld Technologies has developed a new smartphone that will be targeted at developing countries. It is estimated that demand for the new product will initially be slow but would accelerate gradually as the product becomes increasingly familiar to worldwide consumers. In order to determine the number of workers necessary to staff the new production facilities, the company needs to conduct a(n) A) market search. B) utilization survey. C) demand forecast. D) inventory calculation. E) recruitment drive.

858)

859)

__________ is conducted during the human resources planning process. A) Demand forecasting B) Internal recruiting C) Environmental scanning D) Training and development E) Outplacement

Jasmine, owner of Nirvana Day Spa, created a(n) __________, which is an estimate of how many and what types of employees are available. A) demand forecast B) job analysis C) environmental scan D) availability analysis E) labor supply forecast


860)

What strategy is often used by companies when there is a labor surplus? A) hiring better employees B) using attrition, if they have planned far enough in advance C) promoting current employees to new positions D) outsourcing work to contractors E) improving their compensation policy to attract talent

861)

What is part of the human resources environmental scanning process? A) employee recruitment B) performance appraisal C) demand forecasting D) job analysis E) legislation review

862)

When faced with a labor deficit, an organization is mostly likely to A) make use of attrition to reduce the surplus. B) outsource work to contractors. C) offer outplacement to its employees. D) begin downsizing. E) lay off people for poor performance.

863)

The function of a job analysis is A) to determine if recruiting should be done internally or externally. B) to determine the applicant's educational level. C) to provide a demographic profile of the "correct" candidate. D) to describe the skills and knowledge needed. E) to provide a basis for compensation to be paid.

864)

Human resource management plays a vital strategic role as companies attempt to compete through A) place. B) people. C) technology. D) price. E) products.


865)

Doug’s boss tells him, "You’re still new to management, especially people management. Always remember that your people can really deliver a competitive advantage when A) they can be organized rapidly to work collaboratively." B) they do not provide something unique to customers." C) they are easy to imitate." D) they can increase costs." E) they cannot be trained."

866)

Sally is evaluating four soon-to-be accounting graduates for an entry-level position in her accounting group. The organization is going through some restructuring, and she is not sure how many or what level of accountants she might need a year from now. Doing these __________ is the most difficult part of human resource planning. A) labor forecasts B) demand forecasts C) job analysis D) employee evaluations E) professional development exercises

867)

Human resource planning involves __________ primary stages. A) two B) three C) four D) five E) six


868)

Candace, the vice president of human resources at Stellar Enterprises, is helping the vice president of marketing develop information for a potentially game-changing business opportunity—a major program for a worldwide manufacturer. To be considered for this opportunity, the firm must demonstrate its ability to staff the program immediately upon award. To estimate Stellar’s __________ labor supply, Candace uses the human resources information system to generate data regarding turnover, terminations, retirements, promotions, and transfers. A) external B) internal C) future D) past E) marketing

869)

Human resource managers must __________ the supply of labor, which refers to how many and what types of employees are available. A) evaluate B) recruit C) forecast D) train E) create

870)

As forecast by experts, the “new workforce” is becoming increasingly A) better educated and trained. B) more diverse. C) white and older. D) male. E) homogenized.


871)

Joaquin is excited that his engineering staff will soon be very busy, in fact overloaded, with new project work. He immediately begins to review options for addressing his labor deficit, including A) hiring new employees, demoting current employees so that more attractive positions will be available to new hires, and eliminating work for contractors. B) hiring new employees, promoting current employees to new positions, and outsourcing work to contractors. C) instituting a hiring freeze, promoting current employees to boost morale, and laying off excess staff. D) hiring new employees, promoting current employees to new positions, and laying off excess staff. E) instituting a hiring freeze, reducing salaries to be cost competitive, and outsourcing work to contractors.

872)

When organizations have more people than they need, they can use __________ to reduce the surplus if they have planned far enough in advance. A) attrition B) promotion C) outsourcing D) job specifications E) job analysis

873)

A floor supervisor at Vista Warehouse and Storage has asked Jean, a specialist in the human resources department, to help him fill an open position for a floor worker. Jean asks him to describe what is needed to perform the job. He replies, "A high-school education, an ability to lift a 50-lb. box to a height of 6 feet, an ability to work on one's feet for an 8-hour shift, and an ability to get to work on time." Jean must include the job requirements in the A) job application. B) demand forecast. C) personality tests. D) job specification. E) labor forecast.


874)

What may help organizations defend themselves in a lawsuit involving employment practices? A) supply forecasts B) demand forecasts C) job analysis D) environmental scanning E) personnel policies

875)

Edward, the human resources manager for Midwestern Beverages, is working with line managers to lay off a significant portion of the workforce, while simultaneously processing generous retention bonuses and sizeable salary increases for top executives, one of whom Edward is also investigating for corrupt management practices. Feeling conflicted, Edward remembers that human resources managers typically face greater __________ challenges than other managers. A) profit and loss B) ethical C) operational D) planning E) fiscal

876)

877)

Recruitment is used by a firm to A) determine what is done on a given job and what should be done on that job. B) develop a pool of applicants for jobs in an organization. C) motivate an effective and qualified workforce. D) choose from among qualified applicants to hire into an organization. E) ask all applicants the same questions and comparing their responses.

Many companies that rely heavily on internal recruiting use a(n) __________ system to advertise open positions, and this includes a list of duties and the minimum skills and experience required. A) labor supply B) demand forecast C) job-posting D) reward E) outplacement


878)

Marian Cookson, the chief operating officer of Greener Grocer Foods, has lost her vice president of operations to a competitor, and she has decided to fill the position with a new hire—partly because her previous vice president had not trained a successor, and partly because she wants to introduce some "new blood" to her management team. Given the importance of the management position she is seeking to fill, Marian should choose to rely upon A) web job boards. B) the company website. C) an employee referral. D) a specialized executive search firm. E) a journal ad.

879)

An advantage of a structured interview is that it A) helps establish rapport. B) is more likely to be free of bias and stereotypes. C) provides a sense of the applicant's personality. D) helps prospective employers follow up on important topics. E) accurately measures a range of intellectual abilities.

880)

__________ builds on recruiting and involves decisions about whom to hire. A) Job analysis B) Selection C) Performance appraisal D) Comparable worth E) Diversity training

881)

Ralph and Nancy both applied for a managerial position with a company. After their interviews, they compared notes and found that they had been asked the same questions. In the context of the given scenario, they had been subjected to a(n) __________ interview. A) telephone B) panel C) invalid D) structured E) nondirective


882)

A(n) __________ interview explores what candidates have actually done in the past. A) situational B) contingency C) behavioral description D) unstructured E) nondirective

883)

The selection technique that involves asking each applicant the same questions and comparing their responses to a standardized set of answers is a(n) __________ interview. A) structured B) nondirective C) termination D) reference E) analytical

884)

885)

In the context of selection methods, personality tests A) are illegal. B) are universally used. C) are hard to defend in court. D) have no relationship with job satisfaction. E) are highly valid.

Brad applied for a summer job as a bookkeeper. As part of his employment screening, he was asked to take an exam, or __________ test, which has numerical aptitude questions. A) integrity B) cognitive ability C) validity D) personality E) certification


886)

A company wants to hire a model to appear in a television ad to promote its products. Prospective candidates have been asked to audition so that the company can choose the most suitable person. The candidates are being subjected to a(n) __________ test. A) discriminatory B) reference C) performance D) integrity E) analytical

887)

In a performance test, the test taker A) performs a sample of the job. B) takes a paper-and-pencil honesty test. C) is measured for general aptitude. D) is evaluated for drug use. E) only solves mathematical problems.

888)

A(n) __________ is a managerial performance test in which candidates participate in a variety of exercises and situations. A) background check B) assessment center C) job analysis D) performance appraisal E) reference check

889)

__________ tests are administered by employers to assess the honesty of a job candidate. A) Behavioral B) Personality C) Performance D) Integrity E) Situational


890)

__________ refers to the degree to which a test actually predicts or correlates with job performance. A) Redundancy B) Criterion-related validity C) Currency D) Consistency E) Content validity

891)

Outplacement is the process of A) recruiting from external sources. B) hiring from external applicants. C) assessing employee performance. D) dismissing people from the company. E) helping dismissed workers find employment elsewhere.

892)

__________ is the legal concept that an employee can be terminated for any reason. A) Plausible termination B) Employment-at-will C) Downsizing D) Outplacement E) Terminal validity

893)

What statement is accurate about a termination interview? A) It is usually easier than a selection interview because both participants know each other. B) It should be conducted by the immediate superior. C) It should encourage employee rebuttal. D) It must not be put in writing in order to avoid a lawsuit. E) It should allow time for a lengthy question and answer period.


894)

When conducting a termination interview, a manager should A) hint through coworkers that the employee has been fired. B) rush the fired employee offsite as it becomes a security issue. C) allow time for debate during a termination session. D) fire people when they have just returned from a vacation. E) provide written explanations of severance benefits.

895)

A provision of the 1938 Fair Labor Standards Act is that A) two categories of employees, exempt and nonexempt, are designated. B) discrimination in employment based on race, sex, color, national origin, and religion is prohibited. C) employment discrimination against people with disabilities is prohibited. D) equal opportunity clauses are required in federal contracts. E) unpaid leave is required for medical or family needs.

896)

The __________ prohibits discrimination in employment based on race, sex, color, national origin, and religion. A) Fair Labor Standards Act of 1938 B) Immigration Act of 1924 C) Family and Medical Leave Act (1993) D) Americans with Disabilities Act (1990) E) Civil Rights Act of 1964

897)

"Boy, that was a stressful interview," said Morgan. "The hiring manager's toughest question was, ‘What conflict have you encountered in the workplace, and how did you resolve it?" Morgan just experienced a __________ interview. A) behavioral description B) background C) situational D) strategic E) personality


898)

Brianna received an offer of employment from Major Clarkson, her potential supervisor at the Department of Defense, contingent upon Brianna’s successful passing of a __________. When she called to ask about this requirement, she was told that is a frequently used as part of the employee selection process and that many federal agencies and private U.S. employers use it. A) drug test B) background check C) reference check D) personality test E) integrity test

899)

Friday was heart-breaking for Nathan and his organization. He had to lay off several employees due to a business slowdown. Now, on Monday morning, he detects an atmosphere of __________ among the 12 "survivors" in the office. One of the first steps in Nathan’s dismissal process is to talk to the survivors in a thoughtful and fair manner, easing tensions and helping them adjust to the new situation. A) optimism, relief, and lethargy B) renewed commitment, hope, and energy C) disenchantment, distrust, and lethargy D) calm, trust, and energy E) renewed commitment, relief, and energy

900)

__________ refers to laying off large numbers of managerial and other employees. A) Downsizing B) Outplacement C) Employment-at-will D) Termination E) Recruitment


901)

Erik laid off two of his employees this morning, and he is scheduled to lay off another employee within an hour. In reflecting on what went well or did not go well during the earlier termination interviews, Erik thinks he did everything correctly, other than A) completing the termination interviews within 15 minutes. B) allowing time for debate. C) expressing appreciation for what the employees had contributed. D) providing written explanations of severance benefits. E) having a human resources representative present as a witness.

902)

What legislation requires covered employers to give employees 60 written days' notice of plant closings or mass layoffs? A) Fair Labor Standards Act B) Civil Rights Act C) Worker Adjustment and Retraining Notification Act D) Americans with Disabilities Act E) Vocational Rehabilitation Act

903)

904)

Identify the correct statement regarding unstructured interviews. A) They explore what candidates have actually done in the past. B) They are more likely to be free of bias and stereotypes than structured interviews. C) They focus on hypothetical situations. D) They provide basic information that helps prospective employers make a first cut through candidates. E) They ask different interviewees different questions.

Trey was a bit surprised to learn that, to be considered for a supervisory position at Shoreline Fine Dining Inc., he would need to take a(n) __________ test to measure his intellectual abilities, including verbal comprehension and numerical aptitude. A) cognitive ability B) performance C) personality D) integrity E) managerial


905)

__________ refers to when a seemingly neutral employment practice has a disproportionately negative effect on a group protected by the Civil Rights Act. A) Outplacement B) Equal opportunity C) Hostile environment D) Employment-at-will E) Adverse impact

906)

__________ is an analysis identifying the jobs, people, and departments for which training is necessary. A) Development B) Performance appraisal C) Outplacement D) Needs assessment E) Programming

907)

In the context of training methods, __________ refers to assigning employees to different roles in the organization to broaden their experience and improve their skills. A) role-playing B) lecturing C) needs assessment D) adverse impact E) job rotation

908)

__________ training is designed to introduce new employees to their jobs and the company, and to familiarize them with policies, procedures, culture, and the like. A) Diversity B) Team C) Orientation D) Performance E) Management


909)

__________ training provides employees with the skills and perspectives they need to collaborate with others. A) Orientation B) Team C) Performance D) Diversity E) Needs

910)

__________ training focuses on identifying and reducing hidden biases against people with differences and developing the skills needed to manage. A) Ethnicity B) Team C) Group D) Diversity E) Needs

911)

912)

The four steps in a training program include, in order, A) needs assessment, benchmarking, management assessment, and evaluation of effectiveness. B) benchmarking, program design, methods/locations decision-making, and evaluation of effectiveness. C) needs assessment, program design, methods/locations decision-making, and evaluation of effectiveness. D) needs assessment, environmental scanning, program design, and evaluation of effectiveness. E) orientation, job rotation, program design, and evaluation of effectiveness.

Which type of training familiarizes new employees with their jobs, work units, and the organization in general? A) orientation B) team C) diversity D) performance E) customer service


913)

__________ is the most effective and direct management development tool. A) Team training B) Coaching C) Diversity training D) Management by objectives E) Mentoring

914)

Weston invested a large portion of his department's budget on the staff training program in the past year. He first assessed his staff's needs. Then, he designed a training program. Next, he determined training methods and locations and implemented the program. Now, a year later, it is time to A) determine job rotation assignments. B) establish training objectives and content. C) develop role-play opportunities. D) evaluate the program's effectiveness. E) determine which staff need which type of training.

915)

Françoise, a frontline business manager, was thrilled to be accepted into the company’s __________ program, part of the company's management development program. She knew that this would significantly broaden her experience and improve her skills, because she would spend six months in each of the following departments: procurement, invoicing, treasury, and audit. A) job rotation B) role-playing C) vestibule training D) behavior modeling E) diversity training

916)

__________ appraisals involve judgments about employee behavior. A) Behavioral B) Results C) Administrative D) Developmental E) Trait


917)

__________ appraisals, although subjective, focus on observable aspects of performance. A) Behavioral B) Results C) Administrative D) Trait E) Developmental

918)

In the context of performance appraisals, in a(n) __________ technique, the manager keeps a regular log by recording each significant employee behavior that reflects the quality of his or her performance. A) critical incident B) 360-degree C) arbitration D) trait appraisal E) results appraisal

919)

A 360-degree appraisal is the process of using __________ to gain a comprehensive perspective on one's performance. A) competitors B) self-reflection C) every company manager D) all the firm’s customers E) every level involved with the employee

920)

A(n) __________ is the most common type of incentive plan. It compares a worker's performance against an objective standard with pay determined by his or her own performance. A) profit-sharing plan B) stock plan C) gainsharing plan D) individual plan E) merit pay system


921)

In the context of incentive systems, __________ reward employees for increasing productivity or saving money in areas under their direct control. A) gainsharing plans B) individual incentive plans C) stock plans D) profit-sharing plans E) merit pay systems

922)

In the context of incentive systems, profit-sharing plans A) reward individual performance. B) are used to reward employees for increasing productivity in areas under their control. C) are usually implemented in the division or the organization as a whole. D) are given on the basis of how a worker's performance measures against an objective standard. E) do not give all employees a stake in the company's success.

923)

When objective performance measures are unavailable but the company still wants to base pay on performance, it uses a(n) A) gainsharing plan. B) profit-sharing plan. C) individual incentive plan. D) merit pay system. E) stock option plan.

924)

In the context of employee benefits, __________ provides financial support to employees suffering a work-related injury or illness. A) Social Security B) workers' compensation C) unemployment insurance D) gainsharing E) profit-sharing


925)

In the context of employee benefits, __________ provides financial support to employees laid off for reasons they cannot control. A) Social Security B) workers' compensation C) unemployment insurance D) profit-sharing E) stock options

926)

In the United States, __________ is an employee benefit required by law. A) medical insurance B) hospital insurance C) cafeteria vouchers D) Social Security E) pension plans

927)

The Equal Pay Act (EPA) of 1963 A) allows differences in pay in the case of a seniority system or merit system. B) requires employees to pursue workplace safety. C) states that pregnancy is a disability. D) protects private pension programs from mismanagement. E) requires employers to provide health insurance to their employees.

928)

The __________ doctrine implies that women who perform different jobs of equal value as those performed by men should be paid the same wage. A) employment-at-will B) right-to-work C) arbitration D) comparable worth E) union shop


929)

The Employee Retirement Income Security Act (ERISA) of 1974 A) requires employees to pursue workplace safety. B) states that pregnancy qualifies a woman to receive full benefits. C) protects private pension programs from mismanagement. D) requires employers to provide pension income to all employees. E) states that men and women should be paid equally for equal work.

930)

The Occupational Safety and Health Act (OSHA) of 1970 A) states that pregnancy qualifies a woman to receive the same benefits that she would with any other disability. B) holds that retirement benefits are required to be paid to those who vest or earn a right to draw benefits. C) states that unequal pay for men and women performing equal work is prohibited. D) states that employers must maintain records of injuries and deaths caused by workplace accidents and submit to onsite inspections. E) holds that women who perform different jobs of equal worth as those performed by men should be paid the same wage.

931)

The three basic employee benefits required by law are A) pension plans, health care, and flexible benefit programs. B) worker's compensation, health care, and pension plans. C) worker's compensation, Social Security, and unemployment insurance. D) flexible benefits programs, Social Security, and unemployment insurance. E) worker's compensation, pension plans, and health care.

932)

What is true about provisions of the National Labor Relations Act passed in 1935? A) It allowed employers to fire workers who favor labor unions. B) It assisted the growth of unions. C) It created the Federal Labor Commission. D) It declared labor organizations illegal. E) It extended the length of the average work week.


933)

The Landrum-Griffin Act (1959) was designed to A) curb abuses by labor union leaders. B) allow employers to fire workers who favored labor unions. C) provide funds for troops to put down labor strikes. D) define unfair labor practices by unions. E) permit workers to reject a union as their representative.

934)

A(n) __________ refers to a situation wherein workers go on strike to compel employers to agree to their terms. A) wildcat strike B) economic strike C) arbitration D) right-to-work rally E) grievance procedure

935)

In the context of labor relations, __________ refers to a situation wherein workers walk off the job in violation of their contract. A) grievance procedure B) unionization C) employment-at-will D) wildcat strike E) arbitration

936)

In a ____________, the contract requires workers to join the labor organization after a set period of time. A) labor supply forecast B) right-to-work clause C) arbitration D) union shop E) needs assessment system


937)

In a collective bargaining agreement, a(n) __________ gives workers a voice in what goes on during contract negotiations and administration. A) grievance procedure B) individual right C) benefit plan D) security clause E) arbitration

938)

In a collective bargaining agreement, the __________ clause includes the use of seniority to determine pay increases, job bidding, and the order of layoffs. A) grievance procedure B) wage component C) security D) arbitration E) individual rights

939)

Joe, a floor supervisor at Oakwood Kitchen and Bath Suppliers, talks to his workers about what the union organizer has said in recent meetings with the workers. The workers have shared their belief that the union has the power, in future negotiations with management, to obtain employee benefits that are much desired by the workers. Therefore, Joe has advised his division manager that the upcoming vote will likely be A) in favor of the union. B) anti-government. C) in favor of an economic strike. D) to seek arbitration. E) to seek mediation.

940)

A machinist at Western Manufacturing, exclaimed to his coworker, " Great news! The union won the election! That means that management and the union, representing us, are legally required to __________." A) bargain in good faith B) stay out of each other's business C) continue business as usual D) ask all employees reapply for their jobs E) operate under the existing contract


941)

Eve, engineering manager at Takashi Incorporated, was delighted to hear that her firm had won a big project requiring a lot of engineering—more engineering than her current staff could perform. Before she called the human resources department to enlist their help in identifying candidates to fill new positions, she first engaged in some human resources planning. Therefore, she met with her group leaders to determine A) recruiting, training, and pay requirements. B) performance appraisal needs. C) the right number and types of people needed. D) if the new hires are producing the needed results. E) employee selection approaches.

942)

Yuri needs to fill 20 new positions in his North American division over the next few months. The positions ranged from entry-level through senior management. He was advised by his human resources department to remember that most job positions get filled by A) competitor referrals. B) newspaper advertising. C) web job boards. D) campus recruiting. E) word-of-mouth recommendations.

943)

Two years ago, Lynn hired 15 new people into her department. Since their hire, they have undergone training, development, performance appraisals, and compensation review/reward. Now it is time to __________, in terms of productivity, quality, innovation, satisfaction, turnover, absenteeism, health, and other factors. A) evaluate results B) compare methods C) define needs D) institute controls E) conduct planning


944)

Wade, a supervisor at a large manufacturing plant, burst into his manager's office. Wade said, "I just got a call from the human resources department. They told me we were being sued by that woman who interviewed for my open position last month!" When asked what happened, Wade replied, "She's probably just mad. You see, I had second thoughts about having sent her an offer letter, so I sent a follow-up letter revoking the offer. Then I called her to tell her that I really thought she would be happier somewhere else because women should not work in a manufacturing environment. She's just upset that I didn't hire her." His boss replied, "And with good cause. What you said is not only entirely inappropriate and untrue, you have violated A) the Age Discrimination in Employment Act." B) the Worker Adjustment and Retraining Notification Act." C) the Fair Labor Standards Act." D) the Vocational Rehabilitation Act." E) Title VII of the 1964 Civil Rights Act."

945)

Jordie was unhappy to hear that one of his managers had been cited for an alleged violation of Title VII of the Civil Rights Act—specifically, a complaint that the manager had engaged in discriminatory behavior towards a prospective employee. He will now have to appear before the A) Equal Employment Opportunity Commission. B) Office of Federal Contract Compliance Programs. C) Department of Labor. D) National Labor Relations Board. E) Federal Trade Commission.

946)

Howie, a department head, contacted his human resources manager regarding his need to lay off ten workers due to a slowdown in business. After she reviewed Howie’s information, she met with him and said, "This is a problem. You manage a department of 120 staff, and all 10 of the workers that you plan to lay off are female hourly employees over the age of 60 years. This may be viewed as discriminatory because of the A) workers' protection under affirmative action requirements." B) workers' exempt status under the Fair Labor Standards Act." C) adverse impact." D) employment-at-will concept." E) violation of the Worker Adjustment and Retraining Notification Act."


947)

Ron, a division manager, worked with his human resources representative, Kate, to audit his division for equity, in terms of diversity, compensation, title, promotion records, etc. After studying Ron’s 300-person division for two weeks, Kate reported, "Your division does not have any notable equity issues, except for one. On average, your female employees earn 15 percent less than their male counterparts at similar levels performing similar jobs. I do not want us to be cited for being in violation of the __________, so I will work with you to put in place a corrective action plan." A) Americans with Disabilities Act B) Pregnancy Discrimination Act C) Family and Medical Leave Act D) Fair Labor Standards Act E) Equal Pay Act

Jane, a middle manager, says to her boss, “Lucy just announced that she is expecting. Frankly, she is a lower quartile performer anyway, so I'll keep her through the birth of her baby, but I'll immediately terminate her employment afterward so that we don't have to pay for the weeks of time off that will follow." Her boss says, “Slow down. Stop! Obviously, I have failed to adequately train you for your job as it relates to these kinds of issues. She is entitled to time off from work following the birth of her child. What you are proposing would be a gross violation of the __________ Act.” A) Americans with Disabilities B) Pregnancy Discrimination C) Family and Medical Leave D) Fair Labor Standards E) Equal Pay

948)

949)

What are the criteria that apply to the strategic impact of human resources?


950)

Describe the three stages of the human resources planning process.

951)

What are the two functions of job analysis?

952)

What are the advantages and disadvantages of internal recruiting?

953)

What are the advantages of structured interviews?

954)

In the context of selection techniques, what is validity? Describe the different types of validity.


955)

Explain the importance of training and development.

956)

How can managers evaluate a training program’s effectiveness? When should this take place?

957)

What are the two purposes of performance appraisal?

958)

What are the disadvantages of management by objectives (MBO)?

959)

Compare the three types of decisions that are crucial for designing an effective pay plan.


960)

In the United States, what are the clauses that are common in a collective bargaining agreement?

961)

Discuss the factors which influence why workers vote for or against a union.

962)

Compare the different types of training options.

963)

You are a manager at an accounting firm. How would you develop an effective coaching program?

964)

Explain the factors that influence the wage mix.


965)

Describe the process used by employees to form unions.


Answer Key Test name: chapter 8 1) TRUE 2) FALSE 3) FALSE 4) TRUE 5) TRUE 6) TRUE 7) TRUE 8) FALSE 9) C 10) B 11) A 12) A 13) D 14) A 15) A 16) C 17) A 18) E 19) B 20) E 21) B 22) D 23) B 24) A 25) B 26) B 27) B 28) C 29) B 30) B 31) A 32) D 33) C 34) B 35) B 36) C 37) D


38) B 39) B 40) D 41) C 42) A 43) C 44) B 45) C 46) A 47) B 48) D 49) B 50) E 51) B 52) B 53) E 54) A 55) E 56) A 57) A 58) C 59) A 60) B 61) C 62) E 63) A 64) E 65) D 66) E 67) C 68) B 69) D 70) C 71) A 72) B 73) D 74) A 75) E 76) A 77) A


78) E 79) D 80) A 81) C 82) D 83) B 84) C 85) D 86) A 87) D 88) C 89) D 90) C 91) B 92) A 93) B 94) D 95) D 96) A 97) E 98) A 99) A 100) 101) 102) 103) 104) 105) 106) 107) 108) 109) 110) 111) 112) 113) 114) 115) 116) 117)

C E A E A C E C Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay


118) 119) 120) 121) 122) 123) 124)

Essay Essay Essay Essay Essay Essay Essay

Student name:__________ 966)

The first affirmative action programs were initiated to correct the past exclusion of women and minorities from the business world. ⊚ true ⊚ false

967)

Companies with a reputation for providing opportunities for diverse employees will have an advantage in the labor market. ⊚ true ⊚ false

968)

A diverse workforce inhibits organizational flexibility because the organization's culture cannot tolerate different styles and approaches. ⊚ true ⊚ false

969)

Cohesiveness is very high in the case of a diversified workforce. ⊚ true ⊚ false

970)

In multicultural organizations, workforce diversity not only exists but is valued. ⊚ true ⊚ false


971)

Managing cultural diversity within an organization is the responsibility of top management. ⊚ true ⊚ false

972)

Within the global workforce, service sector jobs are growing faster than those in the industrial sector. ⊚ true ⊚ false

973)

Managing diversity at the workplace typically involves such basic activities as A) hiring less qualified individuals over those who are more qualified. B) ensuring that there are no cultural differences between those employed. C) separating minority employees from the majority. D) recruiting individuals with different backgrounds. E) excluding minorities from the workforce.

974)

__________ is the entire process of understanding and appreciating employee differences to build a more effective and profitable company. A) Crowdsourcing B) Managing diversity C) Affirmative action D) Assimilation E) Standardization

975)

To correct the past exclusion of women and minorities, companies introduced __________, which meant they would use special efforts to recruit and hire qualified members of groups that have been discriminated against in the past. A) ethnocentrism B) affirmative action C) individualism D) social audits E) class action suits


976)

In Charleston, South Carolina, about one-fifth of the city's population consisted of various ethnic minorities, but only 12 percent of the employees hired in the public sector were members of minority groups. The city government responded to this issue by increasing minority group members' participation in public contracts. This special program taken up by the government authorities is an example of A) affirmative action. B) the glass ceiling. C) nepotism. D) ethnocentrism. E) crowdsourcing.

977)

The traditional view of American diversity emphasized the concept of assimilation, which for many groups meant A) equal opportunities in housing and employment. B) deemphasizing any ethnic or cultural distinctions. C) increased nepotism and ethnocentrism. D) eliminating religious, racial, and sex discrimination. E) embracing a cultural ideal.

978)

The term __________ is used to refer to all kinds of differences including religious affiliation, age, disability status, economic class, and lifestyle in addition to gender, race, ethnicity, and nationality. A) diversity B) specialization C) ethnocentrism D) relativism E) assimilation


979)

Andrea has recently been denied a promotion. This is the third time she was turned down despite excellent performance reviews. Her manager assures her that she was qualified for the promotion but "that's just the way things go." After this latest disappointment, Andrea did an in-depth research on the history of her company. She found that only two women candidates had been promoted to upper management positions in the company's entire history. __________ is the factor that is most likely obstructing Andrea’s career growth. A) A diversity-oriented employer B) A wide span of control C) The glass-ceiling effect D) Competitive advantage E) Affirmative action

980)

The __________ is an invisible barrier that makes it difficult for certain groups, such as minorities and women, to move beyond a certain level in the organizational hierarchy. A) span of control B) glass ceiling C) pay gap D) value chain E) Gini index

981)

Deanna was refused a job, even though she had all the required qualifications. The reason for this rejection was that she reacted negatively to a suggestive comment made by her interviewer. Based on the given information, it would be most accurate to say that Deanna is a victim of A) sexual harassment. B) nepotism. C) social loafing. D) whistleblowing. E) stereotyping.


982)

__________ refers to the submission to or rejection of sexual conduct that is used as a basis for employment decisions. A) Discrimination B) Assimilation C) Quid pro quo harassment D) Whistleblowing E) Gender harassment

983)

__________ occurs when unwelcome sexual conduct has the purpose or effect of unreasonably interfering with job performance. A) Homogeneity B) Class action C) Hostile environment D) Parochialism E) Affirmative action

984)

Roland was offered a promotion in exchange for a date with his supervisor. He was upset as he had no interest in dating her, yet he agreed because he really wanted the promotion. This is an example of A) gender bias. B) performance reciprocity. C) quid pro quo harassment. D) whistleblowing. E) equifinality.

985)

Behaviors that cause hostile environment in an organization typically include A) displays of pornography. B) emphasizing diversity issues. C) participating in social loafing. D) minimizing the glass-ceiling effect. E) taking affirmative action against discrimination.


986)

Under sexual harassment laws in the United States, A) cases of quid pro quo harassment violate Title VII of the Civil Rights Act of 1964, but instances of hostile environment do not. B) women are protected under Title VII of the Civil Rights Act of 1964 but not men. C) non-gender-related cases, such as a pattern of racial or ethnic slurs, are not covered under the hostile work environment standard. D) the hostile work environment standard can be applied to same-sex harassment cases. E) quid pro quo harassment cases are now more typical than harassment by creating a hostile work environment.

987)

A study using fictious résumés with white-sounding names which generated more interview callbacks than those with African American names indicated that A) successful companies are seeking to expand their ability to capture minority markets. B) earnings for minority workers continue to trail those of white workers. C) discrimination accounts for some employment disparities among various ethnic groups. D) the term minority, as used now, may soon become outdated. E) minority groups have fewer professional role models.

988)

According to the Americans with Disabilities Act (ADA), a disability is strictly defined

as A) a physical impairment that precludes someone from working. B) a disabling condition that makes a person highly dependent on others. C) a physical or mental impairment that substantially limits one or more major life

activities. D) a condition in which a person is immobilized. E) the contraction of a disease that is contagious or epidemic.

989)

How do businesses benefit by hiring physically disabled people? A) Their costs will decrease as the government pays for their salary and benefits. B) They can avail the company of tax credits. C) They are exempted from paying interest on the loans borrowed. D) They can avoid any discrimination lawsuits. E) They will never experience a financial loss.


990)

Under the Americans with Disabilities Act (ADA), __________ is considered a disability. A) chronic unemployment B) conjunctivitis C) alcoholism D) SARS E) influenza

991)

Future trends in the U.S. labor force include a(n) __________ labor force. A) smaller B) inexperienced C) more homogenous D) younger E) less diverse

992)

Researchers indicate that employers wishing to attract and maintain today’s young workers should consider A) focusing more on high pay incentives than work environment. B) eliminating middle-aged and older workers. C) designing stimulating work, emphasizing teamwork, and keeping reasonable work hours. D) restructuring for longer workdays and higher productivity. E) micromanaging and increasing the levels of training available to workers.

993)

What is a primary reason behind the projected slowdown in the pace of growth of the labor force in the United States and other developed countries? A) lower birthrate B) lower mortality rate C) falling immigration rates D) increased workforce diversity E) introduction of affirmative action


994)

At Adventura Inc., the authorities are taking special efforts to recruit qualified members from minority groups that have been discriminated against in the past. This is referred to as A) standardization. B) affirmative action. C) mutual adjustment. D) egocentrism. E) assimilation.

995)

As a new frontline supervisor, Yoshi does not have much experience with managing diversity. But his boss advises that, for the organization’s advantage, the best way to proceed is to A) focus on the differences between people, and highlight their strengths. B) work to meld everyone together so that they share the same norms and values. C) emphasize unique differences in personality, education, and life experiences. D) know characteristics common to the group, while also managing people as individuals. E) tolerate any differences you find among people or groups.

996)

Renee, a department manager, met with her division manager and told him, "As is common with many working women, I carry the bulk of family responsibilities. And that puts me at a disadvantage when my employer expects employees, especially managers like me, to put in long hours and sacrifice our personal lives. I would like to propose that our firm offer flexible work schedules to help us meet all our obligations.” What issue is Renee concerned about? A) achieving diversity in the workplace B) attracting younger workers C) balancing work life and family D) navigating a hostile work environment E) breaking the glass ceiling


997)

At the annual sales meeting, Linda told Zoe, "In our firm, women still earn less, on average, than men. But the __________ is __________, especially for younger women.” A) service gap; widening B) pay gap; closing C) service gap; closing D) pay gap; widening E) pension gap; stable

998)

__________ occurs in a work environment when submission to or rejection of sexual conduct is used as a basis for employment decisions. A) Stereotyping B) Nepotism C) Quid pro quo D) Whistleblowing E) Racism

999)

Both categories of harassment, quid pro quo and hostile environment, violate __________, regardless of the sex of the harasser and the victim. A) the Americans with Disabilities Act B) the Fair Labor Standards Act C) Title VII of the Civil Rights Act of 1964 D) the Labor-Management Reporting and Disclosure Act E) the Equal Employment Opportunity Act

1000) Even when managers do not themselves engage in __________, if they fail to prevent it

or to take appropriate action after receiving legitimate complaints about it, they may still be held liable, along with their companies, if a lawsuit is filed. A) harassment B) affirmative action C) discipline practices D) complaining E) whistleblowing


1001) The __________ standard applies to same-sex harassment, as well as to non-gender-

related cases, such as a pattern of racial or ethnic slurs. A) pay gap B) glass ceiling C) affirmative action D) hostile work environment E) equal employment

1002) In the weekly managers' meeting, Marina confided that one of her employees was

struggling with alcoholism and that his condition was affecting his work performance. She said, "His work performance needs to improve, and we are working with human resources to develop a program to accomplish that. At the same time, I am mindful of the requirements of the __________, including the need to not discriminate against him and recognize that he has the same rights and opportunities as everyone else." A) Fair Labor Standards Act B) Americans with Disabilities Act C) Civil Rights Act D) Labor-Management Relations Act E) Individuals with Disabilities Education Act

1003) The Operations Manager at Oakwood Manufacturing confidentially told his peers, "Billy

may not be as physically able as my other employees, but he can be counted upon to do his work, he rarely misses a day, and he is a loyal and committed employee." Billy is likely a(n) __________ employee. A) disabled B) part-time C) male D) young E) older

1004) In today's service and technology economy, more positions require A) physical strength and stamina. B) skill in a trade. C) a college education or more advanced degree. D) a technical certificate and a bonding license. E) soft skills.


1005) Rupert was discussing recent diversity recruiting initiatives with other managers. He

remarked that as an international company, he found that increasing the diversity among his staff also resulted in A) a better understanding of diverse markets. B) increased staff cohesiveness. C) a decrease in colleague misunderstandings. D) a drop in productivity. E) fewer communication issues.

1006) Companies with a reputation for providing opportunities for diverse employees are most

likely to A) have a disadvantage in the labor market. B) have a homogenous workforce. C) take greater time in responding to environmental changes. D) attract and retain motivated employees. E) facilitate groupthink among its employees.

1007) When employees believe that their differences are not merely tolerated but valued, they

are likely to A) succumb to groupthink. B) practice free riding. C) become more loyal. D) become more rigid. E) become less productive.

1008) __________ is an advantage of managing a diverse workforce. A) Development of standardized operating methods B) Greater opportunity for groupthink C) Ability to leverage creativity and innovation in problem solving D) Ability to benefits from the glass ceiling effect E) Enhanced cohesiveness


1009) Work team diversity promotes creativity and innovation because people with different

backgrounds A) value the benefits of stereotyping. B) are less tolerant toward diverse styles and approaches. C) hold different perspectives on issues. D) are bound to adopt standardized operating methods. E) facilitate the occurrence of groupthink.

1010) Less restrictive policies and procedures and less standardized operating methods A) allow organizations to be more flexible. B) make it difficult for organizations to respond quickly. C) widen the span of control in an organization. D) make an organization more centralized and mechanistic. E) increase groupthink within organizations.

1011) For managers, the most common challenge in managing a diverse workforce is A) decreased employee retention. B) increased communication problems. C) the need for increased training. D) lack of innovation. E) declining productivity.

1012) A diverse workforce is __________ to succumb to groupthink. A) less likely B) more likely C) guaranteed D) extremely likely E) unable

1013) When miscommunication and stress reduce cohesiveness, it is most likely that A) instances of groupthink increase. B) performance may decline. C) ethnocentrism decreases. D) creativity within teams increases. E) instances of stereotyping decrease.


1014) __________ is a disadvantage commonly associated with a diversified workforce. A) Organizational flexibility B) Glass ceiling effect C) Stereotyping D) Enhanced cohesiveness E) Broad innovation

1015) Bob assigned a newly hired employee, Nalin, to the accounting department because the

department needs to work more quickly and accurately. Bob assumed that the new employee could provide the needed energy. Unfortunately, the other workers seemed to resent Nalin’s presence because of his cultural and ethnic background, as well as his language barrier. They have further excluded him from the work group. This has made Nalin’s work more difficult because he is not really given the "inside" information needed to perform his work efficiently. __________, one of the challenges of a diversified workforce, appears to be operating most prominently in this scenario. A) Gender discrimination B) Groupthink C) Lower cohesiveness D) Greater flexibility E) Decentralized decision making

1016) Janet was recently denied a promotion at her job. She was told that management was

looking for someone who was more aggressive to fill the position. Janet’s coworkers were surprised by the management's decision because she had a reputation for "getting things done." Janet later overheard a manager saying that he did not believe she was committed to her career because "she is a typical woman." This instance appears to demonstrate the problem of __________ associated with a diverse workforce. A) stereotyping B) groupthink C) affirmative action D) free riding E) social loafing


1017) A monolithic organization is __________ in terms of its employee population. A) homogeneous B) multinational C) highly flexible D) culturally integrated E) racially diverse

1018) An organization that has the least structural integration of diverse workers is A) a monolithic organization. B) a multicultural organization. C) most likely to fully integrate minority group members both formally and informally. D) a pluralistic organization. E) most likely to use affirmative action approach to prevent any discrimination.

1019) What status is most likely to occur in a monolithic organization? A) Group members from other than the norm primarily hold low-status jobs. B) Minority members identify strongly with the company. C) Minority members need not adopt the norms of the majority to survive. D) Cultural integration among groups is very high. E) Discrimination and prejudice are almost nonexistent.

1020) In monolithic organizations, conflicts among groups tend to be low. The most likely

reason behind this low rate of conflict is that in monolithic organizations, A) minorities are employed at all job levels. B) minority group members adopt the norms of the majority to survive. C) diversity not only exists but is valued. D) the level of cultural integration is very high. E) the minority group members identify strongly with the company.

1021) A pluralistic organization is best defined as an organization that A) has a diverse employee population. B) has the most synergistic environment. C) fully integrates minority group members both formally and informally. D) has no cultural integration. E) explicitly supports discrimination and prejudice.


1022) What is a defining characteristic of pluralistic organizations? A) absence of affirmative action to prevent discrimination B) high levels of discrimination and prejudice C) a highly homogeneous workforce D) high levels of intergroup conflicts E) minorities at all levels or functions

1023) Pluralistic organizations use an affirmative action approach in order to A) hire and train a diverse workforce. B) keep the employee population homogenous. C) reduce the level of integration. D) fill low-status jobs. E) prevent conflict among groups.

1024) The difference between monolithic organizations and pluralistic organizations is that A) monolithic organizations are much more culturally integrated. B) pluralistic organizations do not use an affirmative action approach to eliminate

discrimination. C) pluralistic organizations are marked by a complete absence of discrimination and prejudice. D) pluralistic organizations have a more diverse employee population. E) monolithic organizations tend to have higher levels of intergroup conflicts.

1025) A multicultural organization is best defined as an organization A) in which diversity not only exists but is valued. B) with a homogeneous employee population. C) that is marked by a presence of prejudice and discrimination. D) that lacks cultural integration. E) that fosters high levels of intergroup conflicts.


1026) __________ organizations place the greatest value on cultural diversity and address the

cultural aspects of integration. A) Monolithic B) Multicultural C) Homogenous D) Pluralistic E) Ethnocentric

1027) A defining characteristic of multicultural organizations is that A) they do not employ people from minority groups. B) they are marked by an absence of prejudice and discrimination. C) minority group members tend to be clustered only at certain levels in such

organizations. D) managers in such organizations focus primarily on employees' visible differences. E) they generate high levels of intergroup conflicts.

1028) The difference between monolithic organizations and multicultural organizations is that A) monolithic organizations have a higher degree of structural integration. B) monolithic organizations use an affirmative action approach to eliminate

discrimination. C) monolithic organizations are marked by an absence of discrimination and prejudice. D) multicultural organizations place greater value on diversity. E) multicultural organizations focus solely on employees' visible differences.

1029) "We are certainly in a better position in terms of diversity management than we were five

years ago," said the CEO of Home Health Solutions. "We certainly have a more diverse employee population, and we have taken steps to involve people from different backgrounds in our business operations. However, I expect us to do more. We must be an organization where diversity not only exists, but is valued. We must __________." A) encourage minority group members to adopt the norms of the majority B) fully integrate minority group members, both formally and informally C) strive to build a more homogeneous employee population D) focus primarily upon employees' visible differences, like race or sex E) encourage more intergroup productive conflict


1030) The similarity between monolithic organizations and pluralistic organizations is that A) they do not employ people from minority groups. B) they fully integrate minority group members both formally and informally. C) minority group members tend to be clustered at certain levels in the organization. D) discrimination and prejudices are nonexistent. E) conflict among groups is very low.

1031) Multicultural organizations are distinguished from other types in that they A) do not employ people from minority groups. B) fully integrate minority group members both formally and informally. C) fail to support a synergistic environment. D) employ managers who focus primarily on employees' visible differences. E) are marked by high levels of intergroup conflict.

1032) The difference between pluralistic organizations and multicultural organizations is that

pluralistic organizations A) have much more structural integration. B) do not use an affirmative action approach. C) are marked by an absence of discrimination and prejudice. D) fail to address cultural integration. E) are marked by lower levels of intergroup conflict.

1033) Integrating diversity into a corporate mission statement, providing adequate funding

toward diversity efforts, and establishing corporate positions responsible for the management of diversity programs are all efforts that demonstrate top management's A) commitment toward managing diversity. B) attempt to build a monolithic organization. C) commitment toward reducing corporate governance. D) failure to address the cultural aspects of integration. E) determination toward promoting ethnocentrism.


1034) __________ is the first step to be taken in the process of cultivating a diverse workforce. A) Gaining the support of top management regarding diversity B) Supplying diversity data to government agencies C) Conducting an organizational assessment D) Accommodating employees' work and family needs E) Providing awareness training to the human resources department

1035) __________ is one of the goals of diversity training. A) Maintaining a homogenous team B) Identifying and reducing hidden biases toward minority groups C) Increasing instances of groupthink D) Decreasing cultural integration E) Encouraging minority group members to adopt the norms of the majority

1036) Typically, diversity training has two components: A) skill building and technical training. B) personal values assessment and skills training. C) reverse mentoring and technical training. D) awareness building and skill building. E) reverse mentoring and gap analysis.

1037) Awareness building in diversity training is designed to A) heighten awareness about problems involved in promoting workplace diversity. B) impart specific skills to managers. C) increase recognition of the meaning and importance of valuing diversity. D) educate employees on ways to improve their interpersonal skills. E) punish managers who give members of minority groups low-status jobs.


1038) As part of his recent promotion, Ari attended a training program that focused on issues

like active listening, mentoring, and giving feedback. The training program required Ari to participate in exercises that focused on these areas and highlighted the different approaches preferred by people from different backgrounds. This type of instruction is common in diversity training and is known as A) reverse mentoring. B) skill building. C) gap analysis. D) awareness building. E) homogeneity training.

1039) Retaining good workers, irrespective of their diverse backgrounds, is becoming

increasingly important because A) the younger workforce has lower educational qualifications. B) replacing experienced workers has become more costly. C) the number of monolithic organizations is increasing. D) the market demand for labor force is reducing. E) converting pluralistic organizations into monolithic organizations has become necessary.

1040) As a new recruit, Lela was encouraged to join the Hispanic Help Group (HHP) to discuss

the challenges and opportunities faced by Hispanics at work. The group helped individuals like Lela, who came from a diverse background, understand the norms, culture, and other employees within the organization. With the help of this group, Lela was able to adjust to the organization more quickly and effectively. Thus, Hispanic Help Group is an example of a(n) A) awareness program. B) employee support group. C) focus group. D) quality circle. E) cross-functional group.


1041) __________ are high-level managers who help people meet top management and learn

the norms and values of the organization. A) Mentors B) Nepotists C) Ethnocentrists D) Whistleblowers E) Expatriates

1042) __________ is an effective practice in cultivating a diverse workforce within an

organization. A) Facilitating groupthink within the organization B) Limiting the work of managing diversity to top management alone C) Expecting minority group members to adopt the norms of the majority D) Offering flexible work schedules and arrangements E) Keeping minority group members away from the informal network

1043) Recognizing religious holidays, differing modes of dress, and dietary restrictions, as well

as accommodating the needs of individuals with disabilities are all efforts toward A) creating a homogeneous employee population. B) limiting structural integration. C) facilitating groupthink within the organization. D) cultivating a monolithic organization. E) making systems accommodation to cultivate a diverse workforce.

1044) Tying employee skills training to specific, measurable business goals __________ its

usefulness and makes it easier to assess. A) compresses B) increases C) reduces D) eradicates E) diminishes


1045) __________ are parent-company nationals who are sent to work at a foreign subsidiary. A) Third-country nationals B) Host-country nationals C) Category captains D) Expatriates E) Inpatriates

1046) Horace Innovations is opening a branch office in Taiwan. The responsibility for staffing

this office falls to Paul Johansen, Vice President of International Operations, based in Chicago. Paul has decided to enlist the help of a Taiwan-based agent help him fill several open positions in the new office. The agent advises Paul to fill the positions with __________, in other words, native Taiwanese because they will better understand how to conduct business with clients in Taiwan. A) third-country nationals B) host-country nationals C) second-country nationals D) inpatriates E) expatriates

1047) __________ is the disorientation and stress associated with being in a foreign

environment. A) Ethical lapse B) Polycentrism C) Culture shock D) Cultural relativism E) Stereotyping

1048) According to Geert Hofstede's model, managers should be aware of a culture’s level of

individualism or collectivism; or the extent to which A) people act as individuals or part of a group. B) power within the society is distributed equally. C) quantity of life is valued over quality of life. D) people are able to easily assimilate. E) people feel threatened by ambiguous situations.


1049) __________ are individuals from a country other than the home country or the host

country of an overseas subsidiary. A) Category captains B) Third-country nationals C) Parent-country nationals D) Inpatriates E) Expatriates

1050) __________ are described as foreign nationals transferred to work at the parent company. A) Host-country nationals B) Home-country nationals C) Freelancers D) Inpatriates E) Parent-country nationals

1051) __________ is a tendency to judge foreign people or groups by the standards of one's

own culture or group, and to see one's own standards as superior. A) Relativism B) Ethnocentrism C) Nepotism D) Collectivism E) Individualism

1052) When his firm opened a branch office in Taiwan a year ago, Paul Johansen, Vice

President of International Operations in Chicago, selected Corey McLain, his top subordinate in Chicago, to head up the new office. Paul is now disappointed that the Taiwan operation was not thriving yet; Corey had just not been successful in developing relationships with potential clients. Paul wondered if, instead of sending a(n) __________ from the United States to lead the office, he should have heeded the advice of his Taiwanese agent, who had recommended hiring a native Taiwanese to lead the office. A) third-country national B) host-country national C) second-country national D) inpatriate E) expatriate


1053) After 18 months as office manager in Taiwan, Corey called her boss, headquartered in

Chicago. Corey said, "I hate to tell you this, but things aren't well on the home front. My husband and I just haven't been able to make the adjustment to living in a foreign country. I'd like to request a transfer back to the States." After the phone conversation was concluded, her boss sadly reflected that, as is often the case, an expatriate had failed in a foreign assignment due to A) extensive travel. B) cultural differences. C) family issues. D) language barriers. E) religious beliefs.

1054) Maya Garcia, Vice President of International Operations for Genesis Technologies, was

working with her subordinate to plan for his upcoming 18-month overseas assignment to the firm's new office in Singapore. Based upon her experience with previous failed overseas assignments, she was taking steps to avoid another failure. Therefore, one of the key features of Maya’s plan was to A) structure the assignment and its responsibilities clearly. B) limit communication to every-other-month status phone calls to avoid micromanaging. C) develop performance measures after he had completed his first year. D) save costs by avoiding a "look-see" trip for the employee and his family. E) develop the assignment "on the fly" given the uncertainties involved.

1055) Luke is a management trainee in the Far East Division of SolarTime Energy. Although he

notices that everything starts on time, Luke is surprised that everyone seems upset when he is late to a few meetings. As a new manager, Luke does some research and learns that the best strategy in this situation is to A) follow his gut instincts and do things the “American way.” B) explain the next time he is late that it does not indicate disrespect. C) ignore the comments, and try to do his best. D) follow local customs, and make it a point to be on time. E) conduct cultural sensitivity training for his new staff.


1056) An expatriate manager sees the executive women in her new overseas office wearing

clothing that seems too frilly and colorful to convey the right image. She hints to them that the female staff back home dress much more appropriately in dark suits, which mimic men’s business attire. This manager seems to be demonstrating A) ethnocentrism. B) culture shock. C) systems accommodation. D) accountability. E) discrimination.

1057) Kam Patel, Vice President of International Operations, told her staff, "I have lived and

worked in 11 countries on four continents. Although I have encountered many, many cultural differences, I have found that most people embrace the same core values: compassion, fairness, honesty, responsibility, and A) religion.” B) individualism.” C) respect for others.” D) equality.” E) education.”

1058) Fiona Hughes, the international manager of marketing, is traveling on business in a

foreign country. She is negotiating a large contract with the ministry of agriculture, and the minister's deputy is asking for a "facilitation fee" of $250 USD to relax certain contractual requirements. At this point, Fiona should A) pay the deputy because the value of the contract is significant. B) accuse the deputy of unethical behavior and immediately return home. C) counter with a smaller amount, for example, $225 USD. D) comply with her company’s ethics program, telephoning the ethics officer or legal counsel as needed. E) contact law enforcement authorities in the foreign country.


1059) The strict guidelines for U.S. companies when acquiring and using “conflict minerals”

from the Democratic Republic of Congo emphasize what essential lesson for managers? A) Culture plays little part in ethical behavior around the globe. B) Almost every country follows the same guidelines in conducting business. C) Companies should avoid doing business in any country prone to ethical lapses. D) Business ethics should be a local concern, not an international one. E) Companies must identify, establish, and enforce ethical standards everywhere they do business.

1060) In what situations are corporate gifts to foreign officials acceptable under U.S. law? A) when dealing with the highest level of government officials B) when it’s a small gift to lower-level officials with no outcome on business

negotiations C) when allowed by law in other countries D) when it is necessary in order to maintain competitive advantage E) when doing business in countries where bribery is culturally acceptable

1061) Pam works in a department where there are only a few women. Pictures of provocative

and scantily clad women are posted in the employee breakroom. This makes Pam uncomfortable, so she eats lunch at her desk every day and avoids getting coffee when anyone is in the breakroom. Pam is experiencing A) overreaction. B) discrimination. C) sexual harassment. D) the glass ceiling. E) affirmative action.


1062) Terrell tells his human resources manager that his boss has been flirting with him for a

few weeks, but he’s been politely laughing off her comments. He adds that today she indicated she would look upon me favorably for promotion if I'd go on a business trip with her this weekend. The most appropriate reply for the human resources manager is A) "She is known for her flirting. Just ignore it." B) "You should be flattered! Let's see how this develops, and we will proceed accordingly." C) "Thank you for coming forward. I will follow up immediately." D) "As an adult, you will need to decide how much you value a promotion." E) "If this happens again, please document the event, and let me know."

1063) Kevin looked up to see one of his best staff members walk into his office. He says,

"Kevin, you really need to do something about those knuckleheads on the first shift. Every time I come into work, they're in the locker room, swapping ethnic jokes. I'm getting tired of it." Kevin recognizes that this worker is filing a complaint about A) culture shock. B) a glass ceiling. C) ethnocentrism. D) a hostile work environment. E) quid pro quo conditions.

1064) Dave, a frontline supervisor, met with his human resources manager. He said, "One of

my male employees told me this morning that he wants some action taken against one of his coworkers, a female. He said that she pats his behind when he walks by and flirts with him verbally. He said that this has been going on a while, and he is embarrassed and tired of it. Because in this case a female is bothering a male, is this a problem that I have to worry about?" How should the human resources manager reply? A) "No. Sexual harassment did not occur given the workers' genders." B) "Yes. Sexual harassment is applicable as the standard applies regardless of the sex of the victim." C) "Yes. The female coworker has violated the glass-ceiling principle." D) "No. No actual physical assault occurred." E) "Yes. It would be a case of quid pro quo harassment."


1065) Jaxon confided in you, as his management peer, "Three of my best employees are

extremely faithful to their religions. One is Muslim; one is Jewish; and one is Catholic. Each wants to take different days off for their religious holidays." You advise him to provide systems accommodation by __________. You know it will create extra work for Jaxon in scheduling, but that it will be worth it not to lose these three employees. A) allowing flexibility B) providing support groups C) providing diversity training D) allowing mentoring E) promoting skill building

1066) Abbie and several of the young female engineers in her division go out to lunch together

on the first Tuesday of each month. During lunch, they discuss their victories and struggles as female engineers in a majority male work environment. The younger employees are particularly interested in hearing "war stories" from Abbie, who has obviously been successful in her career. They use her experiences to guide their own behaviors. Abbie is leading a(n) A) systems accommodation. B) support group. C) quality circle. D) affirmative action. E) diversity workshop.

1067) Starting her career as a junior engineer in a power plant was overwhelming for Rajani.

She found herself as one of the very few females and minority members working at the plant. Her supervisor, Frank, reached out to her and discovered she needed help entering the informal company networks. She also needed to understand the norms and values of the organization. Frank realizes that Rajani can benefit from A) having a flexible work schedule. B) attending an awareness building seminar. C) sitting in on skill building training. D) conducting an organizational assessment. E) being paired with a management mentor.


1068) Two of Mike’s top employees, one male and one female, just became parents for the first

time. Upon reporting back to work after their time off in accordance with the Family and Medical Leave Act, both independently requested changes to their usual 8-to-5, MondayFriday work schedules. The changes to their schedules allowed them to handle day care and other needs associated with their newborns. Mike discovers that the best course of action to retain his talented employees is to A) emphasize current company policy. B) form a support group. C) create diversity training. D) establish flexible work arrangements. E) share childcare tips.

1069) Fernando Lopez, CEO of MNO Corporation, envisions a significant global expansion for

the firm in the next five years. Thus, he asked his division presidents to each compile a list of in-house candidates who are likely to succeed in a global environment as expatriates. Fernando said, "We are looking for candidates with a number of traits, including A) sensitivity to cultural differences, business knowledge, risk aversion, cultural acceptance, and inflexibility." B) aggressive, business knowledge, risk taking, cultural adventurousness, and integrity." C) sensitivity to cultural differences, travel knowledge, risk aversion, cultural adventurousness, and flexibility." D) aggressive, travel knowledge, risk taking, flexibility, and integrity." E) sensitivity to cultural differences, business knowledge, risk taking, cultural adventurousness, and flexibility."


1070) A large multinational firm, headquartered in New York, was enjoying unparalleled

success in its Hamburg, Germany, branch office. At the annual corporate management meeting in New York, the German branch manager, modestly cited several reasons for his success. He said, "Our decision to hire Charlotta Hitzelberger into our Hamburg office turned out to be a wise one. Anna is a native of Bern, Switzerland. As a result of her knowledge of business in her home country, she has opened doors to many new clients in Switzerland. This has resulted in a business volume beyond what we had envisioned." In this instance, Charlotta is a(n) A) expatriate. B) host-country national. C) third-country national. D) inpatriate. E) parent-country national.

1071) Define the term diversity in today's context.

1072) Explain why managing diversity may seem to be a contradiction.

1073) Discuss the problem of sexual harassment at the workplace. What can organizations do to

manage this problem?


1074) Do you think organizations should hire disabled employees? Give reasons to support your

answer.

1075) Discuss the challenges of working in or managing a diverse workforce.

1076) Explain the different types of organizations that result from prevailing assumptions about

people and cultures. Compare and contrast how minorities are treated in each case.

1077) List some of the tools that organizations can use to make the most of its diverse

workforce.

1078) Discuss some of the work-related differences that foreign nationals will encounter when

working in the United States.


1079) List the traits that are typically associated with candidates who are likely to succeed in a

global environment.

1080) Discuss how culture plays out in terms of ethical behavior. What can organizations do to

manage these issues more effectively?

1081) Define sexual harassment and describe the two categories with specific examples.

1082) List the five core values that most people embrace.

1083) Briefly discuss Geert Hofstede's model. What is the current thinking regarding this data?

How should managers use this information?


1084) Review strategies to prevent failed global assignments.

1085) What are the advantages that managing a diverse workforce present?


Answer Key Test name: chapter 9 1) TRUE 2) TRUE 3) FALSE 4) FALSE 5) TRUE 6) FALSE 7) TRUE 8) D 9) B 10) B 11) A 12) B 13) A 14) C 15) B 16) A 17) C 18) C 19) C 20) A 21) D 22) C 23) C 24) B 25) C 26) A 27) C 28) A 29) B 30) D 31) C 32) B 33) C 34) C 35) A 36) D 37) B


38) A 39) C 40) A 41) D 42) C 43) C 44) C 45) A 46) B 47) A 48) B 49) C 50) C 51) A 52) A 53) A 54) A 55) B 56) A 57) D 58) A 59) D 60) A 61) B 62) B 63) D 64) B 65) C 66) B 67) D 68) A 69) A 70) B 71) D 72) C 73) B 74) B 75) B 76) A 77) D


78) E 79) B 80) D 81) B 82) C 83) A 84) B 85) D 86) B 87) E 88) C 89) A 90) D 91) A 92) C 93) D 94) E 95) B 96) C 97) C 98) D 99) B 100) 101) 102) 103) 104) 105) 106) 107) 108) 109) 110) 111) 112) 113) 114) 115) 116) 117)

A B E D E C Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay


118) 119) 120)

Essay Essay Essay

Student name:__________ 1086) True leaders are those who are living examples of the ideals they support. ⊚ true ⊚ false

1087) Effective managers are necessarily true leaders. ⊚ true ⊚ false

1088) If company policy dictates that everyone is to receive the same salary increase, a leader’s

reward power increases. ⊚ true ⊚ false

1089) Research indicates that a laissez-faire leadership approach has a negative influence on

attitudes and performance. ⊚ true ⊚ false

1090) Advanced degrees are more important for leaders than acquired expertise in matters

relevant to an organization. ⊚ true ⊚ false

1091) Charisma can contribute to transformational leadership. ⊚ true ⊚ false


1092) For the person who wants to both lead and serve others, servant-leadership is a way to

serve their needs and enhance their personal growth while strengthening the organization. ⊚ true ⊚ false

1093) According to the findings of Kouzes and Posner, which action is taken by the best

leaders? A) They challenge conventional beliefs and practices. B) They strive to maintain the status quo. C) They withhold important information from people. D) They only tell people what to do. E) They hesitate to share power with people.

1094) __________ is best described as a mental image of a possible and desirable future state of

an organization. A) Power B) Vision C) Leadership D) Management E) Foresight

1095) In leadership, vision expresses A) the ability to influence others. B) a leader's personal needs. C) a leader's ambitions for an organization. D) the organization’s competitive advantage. E) a focus on performing or surviving day by day.

1096) Which statement is accurate regarding leadership vision? A) A strong leader succeeds without developing a clear vision. B) A vision focuses only on performance and day-to-day survival. C) A person or team can develop a vision for any organization. D) A vision helps an organization maintain the status quo. E) A vision exists only at the higher levels of an organization.


1097) Academic research shows that __________ lead(s) to higher organizational performance. A) a good product and marketing of that product B) a clear vision and communication of that vision C) strong employees and good customer service D) a matrix organization and career ladder E) a consumer focus and a hierarchy

1098) The CEO of Box Well Packaging worked diligently with her board to develop a vision

for the firm. She tells her chairman, "I know where I want us to go. And I must continue to __________ this vision for others within the organization.” A) articulate B) manipulate C) disguise D) ignore E) hide

1099) Supervisory leadership is behavior that provides A) guidance, support, and corrective feedback for day-to-day activities. B) purpose and meaning to an organization. C) a means to anticipate changes in the future. D) projections for the viable future of an organization. E) a way to collaborate with others to initiate changes.

1100) __________ leadership gives purpose and meaning to organizations by anticipating and

envisioning a viable future for the organization and working with others to initiate changes that create such a future. A) Shared B) Strategic C) Lateral D) Bridge E) Supervisory


1101) What skill distinguishes excellent managers from other managers? A) staffing and supervising B) the ability to lead C) staying within budget D) the ability to reward performance E) dealing with day-to-day issues

1102) Managing requires __________, while leading includes setting the direction. A) creating a vision B) inspiring people C) orchestrating change D) planning and budgeting routines E) creating followers

1103) Everett told his coworker, "I really admire Hilda’s leadership, and I'm glad that she is our

boss. She has articulated her vision and motivated us to A) overcome our obstacles.” B) accomplish her personal pet projects.” C) compete for her personal praise and rewards.” D) develop our budgets.” E) write personal mission statements.”

1104) The most effective followers are distinguished by the ability to A) desire and acquire leadership roles. B) think independently but remain committed to organizational goals. C) orchestrate significant organizational change. D) focus on their own interests. E) obey management’s orders exactly.


1105) A leadership scholar asserts that “Executives are given subordinates; they have to

__________ followers.” A) shape B) ignore C) desire D) earn E) control

1106) In organizations, __________ often means the ability to get things done or accomplish

one's goals despite resistance from others. A) cohesion B) laissez-faire C) democracy D) neutrality E) power

1107) A leader with __________ power has the right, or the authority, to tell others what to do. A) legitimate B) coercive C) reward D) expert E) referent

1108) A leader who has __________ power influences others because he or she controls valued

benefits; people comply with the leader's wishes so as to receive those benefits. A) legitimate B) reward C) referent D) expert E) coercive


1109) A leader with __________ power has control over punishments; people comply to avoid

those punishments. A) expert B) reward C) referent D) coercive E) legitimate

1110) A leader with __________ power has personal characteristics that appeal to others. A) referent B) coercive C) legitimate D) expert E) reward

1111) The top management of a company determined that their end-of-year bonuses would not

be given due to low sales. Emily, a department manager, informed her staff that even highperforming employees should not expect a bonus. Emily’s __________ power was limited by the decision of the top management. A) legitimate B) reward C) expert D) referent E) coercive

1112) At a restaurant, employees who perform poorly during a particular shift are scheduled for

the unpopular weekend shifts by the manager. In this case, the manager exercises his __________ power. A) legitimate B) negative C) expert D) coercive E) referent


1113) A leader who has __________ power has certain knowledge; people comply because they

believe in, can learn from, or can otherwise gain from that knowledge. A) expert B) coercive C) reward D) referent E) legitimate

1114) Darla, a young manager at an organization, has a lot of influence over her employees. She

is an admired manager: her subordinates like working with her and want to emulate her enthusiasm and personal style. In this scenario, Darla has __________ power. A) legitimate B) reward C) coercive D) referent E) expert

1115) The __________ is a leadership perspective that focuses on individual leaders and

attempts to determine the personal characteristics that great leaders share. A) situational model B) Vroom model C) behavioral approach D) leader-member exchange theory E) trait approach

1116) In the trait approach to leadership, __________ refers to a set of characteristics that

reflect a high level of effort, including high need for achievement, constant striving for improvement, ambition, energy, tenacity, and initiative. A) drive B) integrity C) self-confidence D) leadership motivation E) knowledge of the business


1117) In the trait approach to leadership, __________ distinguishes effective leaders from other

people. A) B) C) D) E)

material possessions education self-confidence command-and-control attitude high emotional quotient

1118) __________, in the trait approach to leadership, is the correspondence between actions

and words. A) Positive reinforcement B) Initiative C) Punishment D) Extraversion E) Integrity

1119) Which statement describes a characteristic of effective leaders? A) They prefer to follow other great leaders. B) They are rarely extraverted. C) They make decisions only in times of certainty. D) They are self-confident to the point of arrogance. E) They have a high need for power.

1120) Ryder, an employee at a company, is extremely eager to take up higher positions in the

organization. He is an extravert and tries to influence the decisions made by his boss. He prefers to lead his colleagues rather than follow them. According to the trait approach to leadership, Ryder displays A) charisma. B) motivation. C) expert leadership. D) knowledge of the business. E) integrity.


1121) According to the trait approach to leadership, a(n) __________ leader overcomes

obstacles, makes decisions despite uncertainty, and instills assurance in others. A) self-confident B) legitimate C) autocratic D) coercive E) referent

1122) The dark triad of negative leadership traits include A) extraversion. B) ambition. C) self-confidence. D) narcissism. E) motivation.

1123) Cultural expectations differ for leadership approaches. For example, the Chinese embrace

the concept of guanxi, an expectation of A) short-term financial gain. B) continuously exchanged favors. C) manipulation and control. D) group achievement over personal achievement. E) honesty and credibility.

1124) __________ is a leadership perspective that attempts to identify what good leaders do—

that is, what behaviors they exhibit. A) Behavioral approach B) Trait approach C) Transformational leadership D) Strategic approach E) Situational approach


1125) The __________ approach downplays personal characteristics in favor of the actual

conduct that leaders exhibit. A) trait B) behavioral C) strategic D) situational E) shared

1126) __________ are actions taken to ensure that a work group or organization reaches its

goals. A) B) C) D) E)

Task performance behaviors Organizational structures Group maintenance behaviors Situational approaches Groupthink behaviors

1127) In the behavioral approach to leadership, __________ behavior is variously referred to as

concern for production, directive leadership, initiating structure, or closeness of supervision. A) group maintenance B) shared C) task performance D) bridge E) lateral

1128) Which question can be used to identify a manager's level of task performance leadership? A) Can you talk freely with your superior about your work? B) Do you think your superior trusts you? C) Does your superior treat you fairly? D) To what extent does your superior give you detailed instructions and updates? E) Is your superior concerned about your future benefits, such as promotions and pay

raises?


1129) __________ behavior is sometimes referred to as concern for people, supportive

leadership, or consideration. A) Task performance B) Servant-leader C) Autocratic D) Leader-member exchange E) Group maintenance

1130) __________ behavior includes a focus on people's feelings and comfort, appreciation of

them, and stress reduction. A) Participative B) Directive C) Trait D) Group maintenance E) Task performance

1131) Which question can be used to identify a manager's level of group maintenance

leadership? A) Does your superior urge you to complete your work by a specified time? B) When you do an adequate job, does your superior focus on the inadequate way the job is done? C) Does your supervisor generally support you? D) To what extent does your superior give you instructions and orders? E) Does your superior try to make you work to your maximum capacity?

1132) The __________ highlights the importance of leader behaviors not just toward the group

as a whole but toward individuals on a personal basis. A) behavioral approach B) Vroom model of decision-making C) LMX (leader-member exchange) theory D) trait approach to leadership E) Blake and Mouton Leadership Grid


1133) According to the __________, maintenance behaviors such as trust, open

communication, mutual respect, mutual obligation, and mutual loyalty form the cornerstone of relationships that are satisfying and perhaps more productive. A) Vroom model B) situational approach C) task-motivated leadership D) leader-member exchange theory E) contingency model of leadership effectiveness

1134) __________ leadership seeks information, opinions, and preferences, sometimes to the

point of meeting with the group, leading discussions, and using consensus or majority vote to make the final choice. A) Democratic B) Directive C) Lateral D) Charismatic E) Autocratic

1135) Chan’s boss makes no managerial decisions but asks his employees to take the necessary

steps in all aspects of work. Chan’s boss follows a(n) __________ decision-making style. A) democratic B) autocratic C) directive D) participative E) laissez-faire

1136) Which statement is accurate regarding various decision styles? A) A laissez-faire style results in employees' positive attitudes. B) A democratic style results in employees' positive attitudes. C) An autocratic style results in employees' lower performances. D) A laissez-faire style results in employees' higher performances. E) A democratic style is the fastest way to make decisions.


1137) In a research program that was conducted at the University of Michigan, planning,

scheduling, coordinating, providing resources, and setting performance goals were all elements of what they called __________ behavior. A) supervisory B) task-oriented C) directive D) participative E) relationship-oriented

1138) In a research program that was conducted at the University of Michigan, it was found that

relationship-oriented behavior also made for effective managers. This behavior is characterized by A) demonstrating trust and confidence in employees. B) providing appropriate resources for work outcomes. C) setting a good example to staff. D) determining the organization’s strategic direction. E) setting performance goals.

1139) A __________ approach is a leadership perspective that proposes universally important

traits and behaviors do not exist and that effective leadership behavior varies. A) situational B) behavioral C) trait D) directive E) charismatic

1140) The __________ model of leadership uses the basic situational approach of assessing the

situation before determining the best leadership style. A) laissez-faire B) traits C) contingency D) task-motivated E) Vroom


1141) According to __________, leadership effectiveness depends on two factors: the personal

style of the leader and the degree to which a situation gives the leader power, control, and influence over the situation. A) the Vroom model B) the path-goal theory C) Fiedler's contingency model D) the laissez-faire leadership style E) Hersey and Blanchard's theory

1142) In Fiedler's contingency model of leadership effectiveness, leadership styles were

measured with an instrument assessing the leader's A) drive. B) psychological maturity. C) self-confidence. D) task orientation. E) least preferred coworker.

1143) In Fiedler's contingency model, __________ leadership is more likely exhibited by

leaders with low least preferred coworker (LPC) scores. A) relationship-motivated B) participatory C) directive D) charismatic E) task-motivated

1144) In Fiedler's contingency model, __________ leadership is more likely from high least

preferred coworker (LPC) leaders. A) task-motivated B) autocratic C) relationship-motivated D) coercive E) laissez-faire


1145) In __________, the key situational factor is the maturity of the followers. A) the Vroom model B) Hersey and Blanchard's situational theory C) Tannenbaum and Schmidt's theory D) Fiedler's contingency model E) the path-goal theory

1146) According to Hersey and Blanchard's situational theory, __________ is the level of the

followers' skills and technical knowledge relative to the task being performed. A) job maturity B) charisma C) referent ability D) locus of control E) psychological maturity

1147) In Hersey and Blanchard's situational theory, __________ refer(s) to an employee's self-

confidence and self-respect. A) task motivation B) psychological maturity C) charisma D) servant-leadership E) job maturity

1148) __________ is concerned with how leaders influence followers' perceptions of their work

aims and the courses they follow toward attaining that end. A) The Vroom model B) Fiedler's contingency model C) Path-goal theory D) The task performance behaviors approach E) The group maintenance behaviors approach


1149) In the path-goal theory, __________ leadership refers to behaviors geared toward

motivating people, such as setting challenging goals and rewarding good performance. A) directive B) supportive C) participative D) charismatic E) achievement-oriented

1150) In the path-goal theory, __________ is the degree to which individuals respect, admire,

and defer to power. A) drive B) ability C) authoritarianism D) locus of control E) self-confidence

1151) In the path-goal theory, __________ is the extent to which individuals see events as

being under their influence. A) drive B) ability C) participation D) task orientation E) locus of control

1152) In the __________, after answering a series of questions, several leader decisions styles

may be appropriate, but the model recommends using the one that takes the least amount of time. A) Fiedler contingency model B) Vroom model C) Hersey-Blanchard theory D) path-goal theory E) situational approach


1153) According to the trait approach to studying leadership, __________ relates to leadership

emergence and leadership effectiveness. A) extraversion B) coercion C) arrogance D) closeness of supervision E) confrontation

1154) According to the behavioral approach to studying leadership, __________ behavior

includes a focus on work speed, quality and accuracy, quantity of output, and following the rules. A) group maintenance B) laissez-faire C) supportive D) task performance E) harmonious

1155) __________ is a form of leadership in which the leader makes decisions on his or her

own and then announces those decisions to the group. A) Laissez-faire B) Democratic leadership C) The situational approach D) Participative leadership E) Autocratic leadership

1156) __________ is a situational approach to leadership that emphasizes the participative

dimension of leadership: how leaders go about making decisions. A) The Vroom model B) The leadership substitution theory C) Fiedler's contingency model of leadership effectiveness D) Hersey and Blanchard's model E) The path-goal theory


1157) Which question can be used to identify a manager's level of group maintenance

leadership? A) Does your superior ask you for reports about the progress of your work? B) How precisely does your superior work out plans for goal achievement each month? C) When you do an adequate job, does your superior focus on the inadequate way the job is done? D) To what extent does your superior give you instructions and orders? E) Does your superior give credit to team members for helping with projects and problem solving?

1158) Which workplace factor can be an effective substitute for leadership? A) a closely knit group with a professional orientation B) workers with less experience and ability C) jobs that are inherently repetitive and unsatisfying D) loosely defined rules and procedures E) a close physical distance between a leader and follower

1159) Kenn told his subordinate, Greg, "Let me give you some advice. I know that you take

pride in your delegating leadership style, and indeed you're good at it. But, always remember that effective leaders rely on __________ style(s) of leadership, depending on the situation." A) a single B) different C) democratic D) autocratic E) a consistent


1160) Farouk, manager of a 50-person engineering department, exhibits group maintenance

behaviors; he ensures employee satisfaction, harmonious work relationships, and the department's social stability. However, his division manager notes that Farouk’s department rarely achieves its yearly goals, in terms of work speed, quality and accuracy, output, and compliance with company policies and requirements. How should the division manager coach Farouk to perform his job at a higher level and to increase the organization’s performance? A) Focus more on group maintenance behaviors. B) Focus more on participative leadership. C) Focus more on task performance behaviors. D) Focus more on democratic leadership. E) Focus more on social factors.

1161) __________ has a strong positive impact on follower satisfaction and motivation and also

on leader effectiveness. A) Group maintenance behavior B) Task performance behavior C) Autocratic leadership D) Laissez-faire leadership E) Authoritarian leadership

1162) Raegan told her protégé, Tyler, "You are particularly effective in exhibiting __________

behaviors, an important part of the LMX theory. It's obvious that you are respected for your trust, open communication, and mutual respect towards your staff. But remember that, in your relocation to our new office in Tokyo, these behaviors will need to change due to crosscultural differences." A) task performance B) directive C) results-driven D) group maintenance E) autocratic leadership


1163) "James, you have a strong management team supporting you, and I applaud your efforts

to solicit information, opinions, and preferences from your team, and in seeking consensus in reaching decisions," said his boss. "But sometimes decisions need to be made more quickly, and sometimes your team simply wants you to step up and make certain tough decisions. In other words, a(n) __________ style of leadership might be appropriate." A) autocratic B) democratic C) laissez-faire D) lateral E) participative

1164) Research indicates that the performance and maintenance dimensions of leadership are A) unrelated to employee satisfaction. B) independent of each other. C) neither dependent nor independent on each other. D) strongly interdependent. E) unrelated to task efficacy.

1165) "Dr. Redstone, welcome to Doctors Without Borders," said the program administrator. "I

will serve as your organizational manager 'in name only,' as we both know that I will not be providing much management, much less leadership, to your team in a foreign country. I'm confident, however, that you will not lack for leadership. After all, you will be working closely with several highly experienced professional colleagues in an environment that demands the close cooperation of a tight-knit group. Furthermore, the rules and procedures that govern your work are rigid, so your operating flexibility will be limited." In this case, the program administrator is counting upon __________ to provide a positive influence on Dr. Redstone. A) directive leadership B) substitutes for leadership C) task-oriented behavior D) day-to-day supervision E) autocratic leadership


1166) According to the proponents of the __________ approach to leadership, universally

important traits and behaviors do not exist. A) task performance B) group maintenance C) situational D) leader-member exchange E) dark trait

1167) The __________ asks a leader to use a decision tree to assess the problem and determine

the appropriate decision style to employ. A) Vroom model B) Fiedler contingency model C) path-goal approach D) Hersey-Blanchard situational model E) leader-member exchange theory

1168) Lacie, a supervisor new to her job, knows that, in leading a team that is new to her, she

must adapt her leadership style to suit the circumstances. She knows that she should first analyze each situation and then decide what to do. Lacie is adopting the __________ leadership approach. A) transactional B) lateral C) situational D) trait E) behavioral

1169) "I'm not sure that I'm going to like our new boss," said Lawrence to his coworkers. "I've

noticed that when a decision needs to be made, boom!—she makes it, announces it, and moves on without consulting any of us." Lawrence’s new boss is using a(n) __________ leadership approach to decision making. A) laissez-faire B) democratic C) situational D) participative E) autocratic


1170) Ian oversees two very different workers. Horatio wants to be told exactly what to do

because he is hesitant to make decisions, and Nina wants to be told exactly what to do because she wants to get on with it. So, even though they are very different people, they both respect decisiveness. According to the path-goal theory of leadership, Ian should use the __________ leadership style with these workers. A) directive B) supportive C) participative D) achievement-oriented E) relationship

1171) Carter has decided to start using the situational leadership approach he learned about last

month. He likes the idea of a leader adapting his or her leadership style depending upon the __________ and __________ of the follower in a specific situation. The former refers to the follower's skills and technical knowledge relative to the task being performed. The latter refers to the follower's self-confidence and self-respect. A) ethical maturity; participative maturity B) leadership maturity; mental maturity C) job maturity; psychological maturity D) emotional maturity; self-maturity E) psychological maturity; technical maturity

1172) A __________ leader has a special ability to generate excitement and revitalize

organizations. A) transactional B) situational C) transformational D) lateral E) bridge


1173) A __________ leader is a person who gets others to transcend their personal interests for

the good of the group. A) transactional B) lateral C) situational D) transformational E) pseudotransformational

1174) A __________ leader manages through activities, using his or her legitimate, reward, and

coercive powers to give commands and exchange rewards for services rendered. A) transformational B) situational C) transactional D) charismatic E) servant

1175) __________ leadership is a combination of determination and personal humility that

builds enduring greatness. A) Lateral B) Level 5 C) Shared D) Bridge E) Authentic

1176) __________ leadership refers to a style in which the leader is true to himself or herself

while leading. A) Transactional B) Lateral C) Shared D) Autocratic E) Authentic


1177) A(n) __________ leader seems to care about organizational interests, but tends to ignore

followers’ real needs in order to put their own self-interests at the forefront. A) transformational B) transactional C) authentic D) pseudotransformational E) charismatic

1178) Transformational leaders generate excitement and A) employ charisma to manipulate others. B) avoid giving workers individual attention. C) revitalize organizations. D) put their own interests first. E) delegate challenging work.

1179) At the annual shareholders' meeting of Galaxy Industries, one shareholder turned to the

other and whispered, "Our CEO, Levi Nilsson, has done an outstanding job of leading his division presidents to set aside their personal interests for the betterment of Galaxy. And Levi is just such an exciting and passionate man. He has done wonders in turning around this organization." The other shareholder replied, "Indeed, Levi truly stands out as a(n) __________. I'm so glad that I've invested heavily in Galaxy!" A) transactional leader B) transformational leader C) pseudotransformational leader D) bridge leader E) autocratic leader

1180) __________ serve others' needs while strengthening the organization. A) Lateral leaders B) Authentic leaders C) Shared leaders D) Bridge leaders E) Servant-leaders


1181) Tam, Leslie, and Sawyer are three qualified engineers working in a team at a firm.

Though Tam has the most experience, he does not always lead the group. Some projects require specialized knowledge that the other two members have, so the leadership role is passed around the group as appropriate. They are using the __________ style of leadership. A) lateral B) authentic C) shared D) bridge E) servant-leader

1182) "Did you hear that Braden is returning back to the States, to work in corporate

headquarters as vice president of environmental services in the international division?" asked Zach. His coworker, replied, "Yes. Obviously those four years that Braden has spent abroad, in our Rio and Tokyo offices, have served him well." In leaving his culture and working in other cultures for a significant period of time, Braden will bring __________ leadership to his organization. A) bridge B) authentic C) lateral D) servant E) Level 5

1183) The CEO noted to one of his managers, "Judith, you and the other senior managers have

done an outstanding job of developing leadership in your divisions, especially at the very top. But we need more than just one or two superstars at the top. You need to spread out the responsibilities so that A) leadership permeates the organization." B) your staff are no longer responsible for their own performance." C) your superstars perform the majority of the work." D) senior managers can take credit." E) senior managers can tell subordinates what needs to be done."


1184) A __________ leader lives, goes to school, travels, or works in other cultures, then

returns home to lead. A) servant B) bridge C) shared D) lateral E) transactional

1185) Lisa’s friend asked her, "What is the key to your success? After all, you have been

promoted twice in the past three years." Lisa replied, "It's simple. When I tell my employees to do something, they do it. I'm the boss; they know it; and they behave accordingly." From this dialogue, it is clear that Lisa has __________ power. A) referent B) expert C) legitimate D) reward E) coercive

1186) Marlene, a shift manager at Bargain Interiors, told her roommate, "Work isn't much fun

right now. I acknowledge that I have very little experience in the retail industry, but I just can't get my floor staff to perform their duties unless I use discipline. Over and over, I'm threatening to cut a nonperformer's hours unless he or she improves performance. That seems to be the only way that I can exert influence over them to make them perform their duties, but even then they don't respect my position as their manager." Based upon this discussion, why are Marlene’s floor staff willing to comply with her direction? A) They respect her position and responsibility as their supervisor. B) They want to emulate her leadership characteristics. C) They learn from her judgment. D) They admire her experience and technical abilities. E) They want to avoid punishment.


1187) George said, "I've never had a client leader like Aimee before. She has what is called

referent power. As a result, the work that I do for Aimee is my very best because A) I hope to win additional project work from her." B) I respect her contractual authority over me." C) I fear that she will cancel our contract if I don't." D) I admire her and desire her approval." E) I really respect her expertise."

1188) Ellie asked her coworker, "Why do you always consult with Harry before making any

major business decisions? Harry is 65 years old. He's very quiet and unassuming. He's been working here since the firm was founded 40 years ago and isn't even in a management position." Her coworker explained that Harry A) has referent power, with personal characteristics that appeal to others. B) has legitimate authority. C) is a charismatic leader, having a dominant personality. D) has expertise and knowledge that others believe in, can learn from, and can gain from. E) has supervisory leadership abilities that he exercises on a regular basis.

1189) Albert candidly thinks to himself, "I just don't know if I have the skills to progress in my

career. I've made it to the second level of management, but I want to contribute at a greater level. I want to create a vision for the firm and institute important change.” Albert is striving to A) become a leader. B) maintain his management style. C) advance his personal agenda. D) acquire legitimate power. E) become more transactional and less transformational.

1190) Bob, a division manager, talks about positive change for his staff and business, but he

allows self-interest to take precedence over the needs of the division. Bob is a __________ leader. A) bridge B) Level 5 C) laissez-faire D) pseudotransformational E) servant


1191) "Depending upon your political persuasion, Colleen is either the second coming of

Ronald Reagan, or the second coming of Barack Obama!" said Savannah. "She is such a __________ leader. She is dominant, self-confident, convinced of the moral righteousness of her beliefs, and able to rally her followers with excitement." A) trait B) behavioral C) situational D) charismatic E) transactional

1192) Joyce uses task performance behaviors to ensure that the work of her business unit gets

done. Therefore, she A) makes every decision herself. B) uses a consensus decision-making approach. C) shares leadership responsibilities with her peers and subordinates. D) focuses on maintaining good relationships with each employee, praising them and reducing their stress. E) focuses on work speed, quality and accuracy, quantity of output, and compliance with the rules.

1193) Blake uses group maintenance behaviors as a major part of his leadership activities.

Therefore, he A) makes every decision himself. B) focuses on the results, with little regard for harmonious work relationships. C) leads aggressively, thereby increasing stress and increasing productivity. D) ensures the satisfaction of all employees, focusing on their feelings and comfort. E) focuses on work speed, quality and accuracy, quantity of output, and compliance with the rules.


1194) Three employees were discussing their managers' decision-making styles. The first said,

"My boss is very autocratic. She makes all the decisions, and I'm a bit scared of her. Our financial performance is fine but could be better." The second stated, "My boss is the opposite; she is always democratic. She always involves all of us in discussion and decision making, and morale is good. But I think our financial performance should be better." The third concluded, "My boss takes a very laissez-faire approach. He makes no decisions. In our business unit, A) morale and attitudes are good, but financial performance is poor." B) behaviors are not appropriate, but financial performance is good." C) morale and attitudes are poor, but financial performance is good." D) morale and attitudes are poor, and financial performance is poor." E) behaviors are appropriate, and financial performance is good."

1195) According to Kouzes and Posner, what are the five things that the best leaders do?

1196) What are some of the reasons for the failure of a vision? Provide a real or fictitious

example and briefly describe the reason for its failure.

1197) What are the characteristics of effective followers?


1198) Describe the five potential sources of power as suggested by French and Raven.

1199) Based on the trait approach to leadership, briefly describe the traits that distinguish

effective leaders from others. What are the “dark traits” of leadership?

1200) Contrast the autocratic, democratic, and laissez-faire styles of decision making.

1201) Describe the situational factors used to analyze problems in the Vroom model of

leadership.

1202) For the path-goal theory, describe the three important environmental factors that

determine appropriate leadership style.


1203) What are the ways in which transformational leaders generate excitement? Provide a

specific example of a transformational leader.

1204) Describe the skills and strategies that contribute to transformational leadership.

1205) Write a vision for your future company. Then evaluate that vision against what you have

learned about a good vision statement.

1206) Charismatic leaders inspire their followers. How can you recognize a charismatic leader?

Describe a well-known charismatic leader and the impact he or she has had on followers.

1207) Compare and contrast the different types of contemporary leaders.


1208) Why do good leaders need courage?

1209) Describe how you know you can lead. Include the type of leader you want to be and how

you will lead those in your unit.


Answer Key Test name: chapter 10 1) TRUE 2) FALSE 3) FALSE 4) TRUE 5) FALSE 6) TRUE 7) TRUE 8) A 9) B 10) C 11) C 12) B 13) A 14) A 15) B 16) B 17) D 18) A 19) B 20) D 21) E 22) A 23) B 24) D 25) A 26) B 27) D 28) A 29) D 30) E 31) A 32) C 33) E 34) E 35) B 36) A 37) D


38) B 39) A 40) B 41) A 42) C 43) D 44) E 45) D 46) C 47) C 48) D 49) A 50) E 51) B 52) B 53) A 54) A 55) E 56) C 57) E 58) E 59) C 60) B 61) A 62) B 63) C 64) E 65) C 66) E 67) B 68) A 69) D 70) E 71) A 72) E 73) A 74) B 75) C 76) A 77) D


78) A 79) B 80) B 81) C 82) A 83) C 84) E 85) A 86) C 87) C 88) D 89) C 90) B 91) E 92) D 93) C 94) B 95) E 96) C 97) A 98) A 99) B 100) 101) 102) 103) 104) 105) 106) 107) 108) 109) 110) 111) 112) 113) 114) 115) 116) 117)

C E D D A D D E D D Essay Essay Essay Essay Essay Essay Essay Essay


118) 119) 120) 121) 122) 123) 124)

Essay Essay Essay Essay Essay Essay Essay

Student name:__________ 1210) The most powerful goals are those which appeal to people’s higher values. ⊚ true ⊚ false

1211) Organizational behavior modification focuses on influencing behavior. ⊚ true ⊚ false

1212) Negative reinforcement involves administering an aversive consequence, such as

reducing work hours or docking pay. ⊚ true ⊚ false

1213) An expectancy can be high as well as low. ⊚ true ⊚ false

1214) Effective managers can create positive outcomes by realizing that everyone passes

through the five needs in Maslow’s hierarchy in order. ⊚ true ⊚ false

1215) Intrinsic rewards have a close relationship to inspiring creativity. ⊚ true ⊚ false


1216) Options for restoring workplace equity including increasing your own outcomes or

decreasing others’ outcomes. ⊚ true ⊚ false

1217) Quality of work life (QWL) programs are designed to increase profits and productivity. ⊚ true ⊚ false

1218) Motivation refers to forces that A) energize, direct, and sustain a person's efforts. B) are acquired through education. C) are basically involuntary. D) promote groupthink. E) reduce group cohesiveness.

1219) For a workplace goal to be motivating, it A) has to be provisional. B) has to be subjective. C) has to be easy to achieve. D) should not be quantifiable. E) has to be acceptable to employees.

1220) Goals should be __________ to be motivating. A) unattainable B) subjective C) easy to achieve D) quantifiable E) open-ended


1221) Which goal is most likely to stimulate performance, according to the guidelines of goal-

setting theory? A) Increase quality levels. B) Obtain sales levels that are 15 percent higher than last year. C) Sell defective items overseas. D) Develop a cure for AIDS. E) Employees should attend prayer sessions every day.

1222) Stretch goals are the A) targets that are exceptionally demanding and novel. B) set of goals whose primary focus is to protect organizations from being sustainable. C) targets that guide employees in general terms to improve performance and start doing

their best. D) goals that conflict with people's personal values and interests. E) goals that inspire better performance but at the same time are always unattainable.

1223) Vertical stretch goals are A) subjective and not objective. B) the targets that exhort employees in general terms to improve performance. C) the goals that conflict with people's personal values and interests. D) the set of goals whose primary focus is to protect organizations from being

sustainable. E) aligned with current activities, including productivity and financial results.

1224) Horizontal stretch goals involve what area of an organization? A) corporate culture B) productivity and profit C) worker safety D) environment E) people's professional development


1225) In his second year of managing the accounting department, Scott set a goal for his team

to slightly improve its "days billing" from last year's 36 days to 35 days. Midway through the year, Scott is disappointed that the "days billing" has actually worsened to 37 days. Scott’s manager advised that to motivate his staff to perform at a higher level, Scott should set a goal that is A) unattainable. B) subjective. C) provisional. D) not quantifiable. E) more challenging.

1226) What premise specifically states that people have conscious goals that energize them and

direct their thoughts and behaviors toward a particular end? A) goal-setting theory B) reinforcement theory C) expectancy theory D) equity theory E) behavior modification theory

1227) In Declan’s annual performance review, he submitted his draft goals for the upcoming

year. One of his goals was to "Improve my punctuality." His boss responded, "No, that goal is not acceptable, based on your poor attendance record. Your goal needs to be __________ so that you and I can monitor and measure whether or not you are attaining it." A) subjective B) emotional C) specific and quantifiable D) general E) values-based


1228) Every year, Tandy’s previous manager developed and given her a list of performance

goals for the upcoming year, and then proceeded to criticize her for not fully achieving her previous year's goals—goals that he had developed and given to her. And, in fact, Tandy was not always motivated to achieve the goals prescribed for her. But Tandy’s new manager is a breath of fresh air. Tandy tells her roommate, "My new manager lets me participate in goalsetting for my work and, as a result, A) I can find ingenious ways to set easy goals and convince my manager that they are difficult." B) I find ways to meet goals simply to receive a reward." C) we develop goals that do not necessarily contribute to the company's success." D) we tend to generate goals that I accept and pursue willingly." E) we set goals that are so challenging as to be unattainable."

1229) Stretch goals can shift people away from A) meaning. B) mediocrity. C) challenge. D) learning. E) achievement.

1230) In a group setting, individualized performance goals can create __________ and reduce

__________. A) competition; cooperation B) cooperation; competition C) achievement; performance D) collaboration; profit E) achievement; manipulation


1231) Andi reflected on last year's one goal that she established for her department—to achieve

$1 million in profit. And she required all staff members to establish this same personal goal—and only this goal—for themselves. Looking back a year later, Andi realized that her dogged pursuit of a "number" caused her department to fall a year behind in training and new business development. Andi knows that this focus on one dimension of her business cannot be repeated. For the coming year, she must avoid A) establishing a single productivity goal. B) working toward creativity. C) encouraging new projects and business. D) emphasizing knowledge acquisition. E) setting personal goals.

1232) __________ are positive consequences that motivate behavior. A) Biases B) Behavioral antecedents C) Reinforcers D) Extinctions E) Sanctions

1233) __________ formulated the law of effect. A) Edward Thorndike B) Abraham Maslow C) Peter Drucker D) Russell Lincoln Ackoff E) Michael Porter

1234) The law of __________ states that behavior that is followed by positive consequences

will likely be repeated. A) consequences B) repetition C) large numbers D) effect E) demand


1235) Organizational behavior modification primarily attempts to A) promote groupthink. B) eliminate managerial bias. C) improve performance. D) reinforce the benefits of free riding. E) promote egocentrism.

1236) Hector, a manager at Roseland Corp., recently illustrated __________ by promoting two

employees because their performance had greatly improved. A) positive reinforcement B) aversive consequence C) extinction D) withholding punishment E) empowerment

1237) __________ is the act of applying a consequence that increases the likelihood that the

person will repeat the behavior that led to that result. A) Positive reinforcement B) Aversive consequence C) Goal setting D) Withholding E) Halo effect

1238) __________ is the practice of removing or withholding an undesirable consequence. A) Negative reinforcement B) Punishment C) Extinction D) Instrumentality E) Empowerment


1239) Arun, the manager at Advanced Solutions, took an employee off probation because of her

improved performance, illustrating A) negative reinforcement. B) punishment. C) extinction. D) goal setting. E) intrinsic reward.

1240) __________ is an example of positive reinforcement. A) Giving letters of commendation B) Taking an employee off probation C) Assigning an unappealing task D) Giving a threat of punishment E) Forgetting to say thanks for a favor

1241) __________ is an example of extinction. A) Shouting at employees B) Allowing employees to get work done from home C) Forgetting to say thanks for a favor D) Giving letters of commendation E) Providing employees with a threat of punishment

1242) __________ is the act of administering an aversive consequence. A) Overlooking B) Punishment C) Positive reinforcement D) Negative reinforcement E) Free riding


1243) __________ involves the instances of withdrawing or failing to provide a reinforcing

consequence. A) Negative reinforcement B) Positive reinforcement C) Extinction D) Expectancy E) Egocentrism

1244) What is most likely to occur when positive reinforcement is employed? A) The same behavior is likely to be repeated. B) A desired behavior is less likely to be repeated. C) An undesirable behavior is most likely to occur. D) A negative behavior is likely to be repeated. E) Employee retention is adversely affected.

1245) As an employee receiving feedback, one should ideally A) act defensive. B) avoid negative emotions. C) openly show if they are hurt. D) ignore it. E) vent out negative emotions.

1246) Viktor’s work performance has greatly improved over the course of the past two months,

so his boss decided to upgrade his status from that of a temporary employee to that of a permanent employee. This is an example of A) negative reinforcement. B) punishment. C) extinction. D) glass ceiling. E) intrinsic reward.


1247) For optimum effectiveness, managers should provide employees with feedback A) as a last resort. B) very sparingly to prevent overload. C) only when performance is negative. D) on a regular and ongoing basis. E) strictly during the performance review

1248) __________ is an example of punishment. A) Giving letters of commendation B) Taking an employee off probation C) Assigning an unappealing task D) Withholding an undesirable consequence E) Forgetting to say thanks for a favor

1249) Jeanette was pleased to reward her top sales professional with a hefty bonus for the third

year in a row because of his increasingly large sales figures. He said, "Jeanette, you keep providing __________ as a consequence of my efforts, and I will keep posting excellent sales!" A) high need for affiliation B) positive reinforcement C) an intrinsic reward D) low need for affiliation E) hygiene factors

1250) Jed, an operations manager, struggles with staffing the unpopular night shift, where all

new employees are initially assigned. The turnover is high, morale is poor, and performance is dismal. Jed has tried positive reinforcement, offering rewards for punctuality and good work habits; this approach failed. He has also tried the extinction approach, also with little success. Finally, he punished wrongdoers, and that also failed to bring about any desired change. If Jed now tries negative reinforcement, what might be a proper approach? A) Offer reassignment to the day shift for the best night-shift performers. B) Fire the worst night-shift performers. C) Offer additional night-shift work and overtime pay for the best night-shift performers. D) Reduce the pay of the worst night-shift performers. E) Reassign the best day-shift performers to the night shift.


1251) Mildred knows that she will not have bonus dollars to reward her high-performing

management team this year due to a shortfall in company profits. Furthermore, a companywide hiring and promotion freeze will prohibit her from hiring entry-level workers to allow existing staff to be promoted to higher levels. In response, she has arranged for her management team to attend the annual corporate planning meeting, affording them a unique opportunity to interact with and gain recognition by company executives. Mildred instituted this nonmonetary reward because A) according to Herzberg, motivated workers do not need extrinsic rewards. B) she wanted her staff to perceive that good performance will eventually be rewarded. C) according to McClelland, managers need no motivation. D) nonmonetary rewards can motivate when pay and promotions are scarce. E) according to Herzberg, motivated workers do not need motivators.

1252) In contrast to reinforcement theory, expectancy theory A) describes the processes by which factors in the work environment affect people's

behavior. B) considers some of the cognitive processes that go on in people's heads. C) focuses on tools such as punishments and extinctions. D) does not look at individual performance of employees. E) has a positive effect on employee retention.

1253) __________ theory proposes that people will behave based on their perceived likelihood

that their effort will lead to a certain outcome and on how highly they value that outcome. A) Expectancy B) Reinforcement C) Path-goal D) Equity E) Law of effect

1254) Expectancy theory includes the following events, in order: A) outcome valence, performance, and effort. B) performance, effort, and outcome valence. C) effort, outcome valence, and performance. D) performance, outcome valence, and effort. E) effort, performance, and outcome valence.


1255) According to expectancy theory, instrumentality is A) the perceived likelihood that performance will be followed by a particular outcome. B) the value that expected outcomes hold for the person contemplating them. C) any consequence resulting from performance. D) the likelihood that a person would repeat an action after receiving negative

reinforcement. E) the likelihood that a person would repeat an action after receiving positive reinforcement.

1256) __________ is the link between performance and outcomes in expectancy theory. A) Valence B) Instrumentality C) Expectancy D) Equity E) Actualization

1257) According to expectancy theory, valence A) is the perceived likelihood that performance will be followed by a particular outcome. B) can be positive or negative. C) results in a person's level of performance. D) is the perceived likelihood that employees' efforts enable them to attain performance

goals. E) can link effort to performance.

1258) __________ is the perceived likelihood that performance will be followed by a particular

outcome. A) Valence B) Instrumentality C) Expectancy D) Enlargement E) Enrichment


1259) According to expectancy theory, what must occur for motivation to be high? A) Expectancy must be high. B) Instrumentalities must be low. C) Total valence of all outcomes must be low. D) Goals should be unattainable. E) Goals should conflict with people's personal values.

1260) __________ is a consequence a person receives for his or her performance. A) Valence B) Instrumentality C) Expectancy D) Outcome E) Equity

1261) For motivation to be high, total valence of all outcomes must be A) low. B) high. C) unknown. D) absent. E) mediocre.

1262) Dale, a marketing professional who reports to you, believes that he can meet his $1

million sales goal this year (expectancy). And he would truly value the $10,000 bonus (valence) that he might earn as a result. In the past, your company has failed to pay out promised rewards. Therefore, in accordance with the expectancy theory, he is understandably concerned—and hence demotivated—that A) his sales goal will be increased next year as a result of this year's success (instrumentality). B) he will run into problems later in the year, resulting in a sales shortfall (instrumentality). C) he will significantly exceed his sales goal (instrumentality). D) the company will not follow through on its commitment to provide a bonus (instrumentality). E) his bonus will not be sufficient to meet his financial commitments (instrumentality).


1263) In the context of Maslow's need hierarchy, the need found at the bottom of the pyramid is

the __________ need. A) social B) physiological C) psychological D) safety E) self-actualization

1264) __________ is the highest-level need in Maslow's hierarchy. A) Social B) Physiological C) Psychological D) Safety E) Self-actualization

1265) In Maslow's need hierarchy, __________ need refers to a need for friendship, affection,

belonging, and love. A) self-actualization B) esteem C) physiological D) social E) security

1266) In Maslow's need hierarchy, __________ includes the need for recognition and self-

esteem. A) physiological B) self-actualization C) safety D) esteem E) social


1267) Which statement is accurate according to Maslow's need hierarchy? A) One can never be fully satisfied. B) Higher-level needs are more important than lower-level needs. C) People are motivated to satisfy lower-level needs before higher-level needs. D) Once a need is satisfied, it becomes a powerful motivator. E) Unsatisfied needs will not motivate performance.

1268) Which statement is accurate regarding the importance of Maslow's need hierarchy for

managers? A) It is a complex and altogether accurate theory of employee motivation. B) It sensitizes managers to the importance of personal growth. C) It states that employees are motivated to satisfy the higher needs before they try to satisfy the lower needs. D) It states that once a need is satisfied, it acts as a powerful motivator. E) It postulates that employees have three basic sets of needs that can operate simultaneously.

1269) Alderfer's ERG theory primarily focuses on A) existence needs, relatedness needs, and growth needs. B) existentialism, relativity, and governance. C) employment, recruitment, and gain sharing. D) job rotation, job enlargement, and job enrichment. E) expectancy, risk, and growth.

1270) The Maslow's need hierarchy is different from Alderfer's ERG theory in that A) ERG theory asserts that various needs operate simultaneously. B) Maslow's hierarchy has more scientific validity. C) Maslow's hierarchy states that once a need is satisfied, it acts as a powerful motivator. D) ERG theory focuses on five levels of need. E) ERG theory reminds managers of the types of reinforcers that can be used to motivate

people.


1271) According to McClelland, the most important needs for managers are the needs for A) achievement, affiliation, and power. B) existence, relatedness, and growth. C) motivation and hygiene. D) equity and fair treatment. E) self-actualization and ego.

1272) According to McClelland's research, the need for achievement is A) equivalent to Maslow's safety needs. B) often perceived negatively in the workplace. C) important to most U.S. managers. D) equivalent to Maslow's social needs. E) a desire to control others.

1273) According to McClelland, __________ power is used as a negative force. A) aggressive B) abusive C) antisocial D) referent E) personalized

1274) Garrett’s company was hemorrhaging money and losing many valuable employees

through layoffs and resignations. He tried, but failed, to motivate Allison, his best employee, by discussing her next year's goals, appealing to her full potential as a professional. She told him she could not think about next year—she was worried about keeping her job this year. In accordance with Maslow's need hierarchy, why is Garrett failing to motivate Allison? A) Allison seeks power more than affiliation or achievement. B) Garrett is speaking to higher-level needs that Allison is not in a position to currently appreciate. C) Garrett is using extinction as an approach to motivation. D) Garrett is speaking to lower-level needs that Allison is not in a position to currently appreciate. E) Allison wants immediate satisfaction of goals related to realizing her full potential.


1275) A low need for affiliation and a moderate to high need for power are associated with A) nonmanagerial success. B) self-satisfaction. C) job satisfaction. D) managerial success. E) employee camaraderie.

1276) Generally speaking, managers in the United States are motivated most by A) growth and social needs. B) affiliation and relatedness. C) achievement, esteem, and self-actualization. D) physiological and safety needs. E) security.

1277) In the context of Alderfer's ERG theory, existence needs typically A) involve relationships with other people. B) are satisfied through mutually sharing thoughts and feelings. C) motivate people to productively change themselves. D) inspire people to creatively change their environment. E) are physiological desires.

1278) Brady loves his job. It offers him the opportunity to meet lots of people, to work

outdoors, and to do things his own way. Brady often jokes that he would be glad to do his job even if he is not given any pay. This sense of fulfillment is an example of A) job enrichment. B) creative challenge. C) egocentrism. D) intrinsic reward. E) personalized power.


1279) __________ are the rewards given to a person by the boss, the company, or some other

person. A) B) C) D) E)

Growth need strength Employee engagement Extrinsic rewards Hygiene factors Inputs

1280) __________ is intended to alleviate boredom by giving people different things to do at

different times. A) Job rotation B) Job enlargement C) Job empowerment D) Job feedback E) Job simplification

1281) __________ is the act of giving people additional tasks at the same time to alleviate

boredom. A) Job enrichment B) Task significance C) Job enlargement D) Task identity E) Social loafing

1282) __________ is the act of changing a task to make it inherently more rewarding,

motivating, and satisfying for the people concerned. A) Task significance B) Job enrichment C) Task identity D) Job enlargement E) Halo effect


1283) Jones is the marketing manager at a small firm. In addition to his marketing-related

duties, he has recently been put in charge of recruitment, at his request. This is an example of A) outcome valence. B) job enlargement. C) job rotation. D) low instrumentality. E) positive reinforcement.

1284) __________ means that jobs are restructured or redesigned by adding higher levels of

responsibility. A) Job enrichment B) Task identity C) Task significance D) Negative reinforcement E) Extinction

1285) Tanner’s job responsibilities have recently been changed as part of a decentralization

effort taking place at his office. He has been given the authority to decide when a file's status is to be altered, rather than only altering files at his supervisor's discretion. This is an example of A) job enrichment. B) task identity. C) task significance. D) relatedness. E) existence.

1286) Herzberg's __________ theory describes hygiene and motivators as factors affecting

people's work motivation and satisfaction. A) equity B) expectancy C) path-goal D) two-factor E) hierarchy of needs


1287) In Herzberg's two-factor theory, __________ are characteristics of the workplace, such as

company policies, working conditions, pay, and supervision, that can make people dissatisfied. A) hygiene factors B) motivators C) outcomes D) expectancies E) positive reinforcers

1288) According to Herzberg, the key to true job satisfaction and motivation to perform lies in A) hygiene factors. B) characteristics of the workplace. C) motivators. D) equity. E) personalized power.

1289) In the Hackman and Oldham model, __________ is the independence and discretion in

making decisions. A) skill variety B) task identity C) feedback D) autonomy E) expectancy

1290) Growth need strength is best defined as the A) desire people have to influence or control other people. B) degree to which people desire experiences that positively impact society. C) degree to which people desire personal and psychological development. D) intensity of peoples' desire to retire from their jobs. E) desire that people have for extrinsic rewards.


1291) __________ is the process of sharing power with employees, thereby enhancing their

confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization. A) Empowerment B) Job enlargement C) Growth need strength D) Task significance E) Task identity

1292) In job __________, workers are given additional tasks at a higher level of responsibility. A) enrichment B) shadowing C) enlargement D) rotation E) satisfaction

1293) According to __________, characteristics of the workplace termed hygiene factors will

not necessarily motivate workers. A) Maslow B) McClelland C) Herzberg D) Hackman and Oldham E) Dewey

1294) Jameson said to his employee, "Stephan, I will be out next week on client business. In my

absence, I'd like you to serve as acting manager. On Monday, I'd like you to lead our weekly sales meeting. Also, please assign client contacts to the sales staff for the upcoming trade show. Lastly, decide upon final terms for our contract with People’s Power, and negotiate that contract to closure. I'm glad that I can count on you." In empowering his employee, Jameson has A) demonstrated affiliation. B) shared power. C) monopolized power. D) personalized power. E) avoided autonomy.


1295) Clinton said to his employee, "Ryan, I don't know what else I can do for you. You have a

job, a good paycheck, competitive benefits, a suitable office space, and reasonable people with whom to work." Ryan replied, "I'm sorry but those things don't motivate me." According to Herzberg's two-factor theory, what might Ryan be looking for? A) extrinsic rewards B) improved working conditions C) a higher salary D) different company policies E) opportunities for personal growth and recognition

1296) Which statement is true of growth need strength? A) It is the degree to which people desire to contribute toward the development of the

society. B) Job enrichment would be more successful for people with low growth need strength. C) A person's growth need strength will help determine just how effective a job enrichment program might be. D) High employee growth need strength results in absenteeism and turnover. E) It is the intensity of peoples' desire to retire from their jobs.

1297) Which statement is supported by equity theory? A) Inequity causes dissatisfaction. B) Equity will result in an effort to restore balance. C) Inequity and the positive feelings it creates may appear anywhere. D) Equity causes people to doubt their capabilities. E) Assessments of equity are made objectively.

1298) __________ is the practice of using a fair process in decision making and making sure

others know that the process is as fair as possible. A) Procedural justice B) Task identity C) Job equity D) Job enlargement E) Equity assessment


1299) As the on-site project manager, Brandon reprimanded the construction superintendent,

"Gabe, I'm going to have to write you up for not properly securing yourself on that elevated work site. I've written up others, and the crew will be watching to see what I will do." Gabe replied, "I've been up there dozens of times, and we're on a tight schedule. There's no time to fool with every safety procedure." In writing up Gabe as he did other employees, Brandon was implementing A) extinction. B) procedural justice. C) negative reinforcement. D) empowerment. E) expectancy.

1300) "I haven't missed a day of work in the past five years, and I'm committed to this

company, so I determined that a 20 percent salary increase is warranted for reasons of fairness," said Tony to his supervisor. In reply, she asked, "How did you determine that this increase is fair?" If Tony is using equity theory as a basis for his request, he would reply, A) “I made comparisons with others' salaries." B) “I demonstrated the positive attitude as expected of me." C) “I evaluated how much I am respected." D) “I sought intrinsic rewards for myself." E) “I sought job enlargement in my position."

1301) After a rough week and against her better judgment, Leesa tells Tarik she is tired of

arguing with him over trip reports. She makes an exception for him and, against policy, says he no longer needs to fill them out. A week later, another sales rep comes to her and asks to stop preparing reports, just like Tarik. Why do you think Leesa now has a managerial problem? A) She misused expectancy theory with Tarik. B) She failed to consider two-factor theory. C) She failed to provide procedural justice. D) She administered job enrichment unfairly. E) She provided an intrinsic reward to Tarik.


1302) The general goal of quality of work life (QWL) programs is to A) encourage free riding. B) lay off employees skillfully. C) satisfy the full range of employee needs. D) support the psychological contract. E) promote procedural justice.

1303) Constitutionalism in the workplace refers to A) the rights of personal privacy, dissent, and due process. B) a work role that minimizes infringement on personal leisure and family needs. C) a social environment that fosters personal identity. D) socially responsible organizational actions. E) the desire for experiences that contribute to personal and psychological development.

1304) A(n) __________ refers to a set of perceptions of what employees think their employers

owe them and vice versa. A) safe and healthy environment B) psychological contract C) equity assessment D) work role E) job description

1305) "Charles, I have some disturbing data," said the vice president of human resources. "Our

company has suffered increases in turnover, absenteeism, lawsuits by employees and former employees, injury and illness claims, and customer complaints. About the only thing that hasn't increased is our productivity." Charles replied, "I have unfortunately come to recognize these workforce characteristics. They are a sign of A) self-determination." B) restoring equity." C) job dissatisfaction." D) constitutionalism." E) procedural justice."


1306) Merrick tells his sales manager, "Our staff are dissatisfied, and they have lacked good

citizenship since we lost the big account." What does Merrick mean regarding lacking good citizenship? A) His employees are not exercising their constitutional rights. B) His employees are not performing the mundane work. C) His employees are not going the "extra mile" and helping others at work. D) His employees are not obeying the law. E) His employees are not involved in office gossip and "drama."

1307) Advocates of quality of work life (QWL) programs assert that it benefits the organization

by A) B) C) D) E)

increasing the profit margin. reducing time to market. decreasing unity of command. improving productivity. eliminating employee turnover.

1308) The manager of operations, who is a critic of quality of work life programs, told the

firm's manager of human resources, "I'm not convinced that a QWL program will necessarily inspire employees to work harder. Rather, I want us to tie rewards directly to A) individual performance." B) hygiene factors." C) psychological contracts." D) procedural justice." E) constitutionalism."

1309) A survey by Mental Health America found that a top contributor to employee

dissatisfaction is A) work that is too challenging. B) frequent overtime. C) not being rewarded for daily contributions. D) inadequate training. E) laissez-faire management.


1310) __________ is a set of perceptions of what employees owe their employers and what

their employers owe employees. A) Personal growth B) Constitutionalism C) A psychological contract D) Procedural justice E) A union contract

1311) __________ create a workplace that enhances employee well-being and satisfaction. A) Implicit contracts B) Psychological contracts C) Quality of work life (QWL) programs D) Motivation programs E) Union contracts

1312) The ideal psychological contract for both employers and employees can be summarized

as, A) “We’ll take care of you if you are loyal.” B) “Do your own job and someone else’s, and we’ll try to maintain your employment.” C) “Employment is a permanent alliance.” D) “If you help me grow, I’ll help the company grow.” E) “Every man (or women) for themselves.”

1313) Donte was given a surprise $500 bonus, and his supervisor told him that if he continued

to post numbers as he did that month, he would receive a bonus each month. Donte was motivated to go all out and do his best every month. This shows the power of A) positive reinforcement. B) task identity. C) self-actualization. D) intrinsic rewards. E) task significance.


1314) Cody racked up three safety violations in one month and was taken off the construction

crew and put in the office, meaning he was no longer eligible for overtime. He pled with his boss, saying he needed the money for rent. Stating that Cody’s financial situation was not a company concern, he was put in the office until he could demonstrate that safety was a priority. This scenario illustrates A) growth need strength. B) punishment. C) negative reinforcement. D) extinction. E) equity theory.

1315) Malik is demoralized and unmotivated. He tells his coworker, "I'm at a dead end in this

job. Believe me, I would love to get a raise or a promotion. But no matter how well I do, I'll never get that kind of recognition." In the context of the expectancy theory, this illustrates A) low valence. B) low instrumentality. C) negative reinforcement. D) low equity. E) negative affiliation.

1316) Andrew told his fellow roofer, "I'm telling the boss at the end of the day that I'm quitting.

This work is too physically demanding and dangerous for what they're paying me." In the context of the expectancy theory, Andrew’s experience illustrates A) high expectancy. B) high instrumentality. C) negative valence. D) low equity. E) low affiliation.

1317) Describe the characteristics of goals that most effectively motivate people.


1318) What are stretch goals? Describe the different types of stretch goals.

1319) Briefly describe Edward Thorndike's law of effect. Provide a real or fictious

organizational example of this law.

1320) Distinguish between positive reinforcement and negative reinforcement. Provide

examples of each.

1321) Discuss the basic concept of the expectancy theory.

1322) Compare and contrast Maslow's need hierarchy and Alderfer's ERG theory.


1323) Compare and contrast job enlargement, job enrichment, and job rotation. Give an

example of each.

1324) Discuss how employees assess and, if necessary, restore equity.

1325) Describe the important components of quality of work life (QWL) programs with

examples.

1326) Discuss the three needs most relevant to managers according to McClelland.

1327) What are the differences between intrinsic and extrinsic rewards? Describe scenarios

when you would see each of them used.


1328) Explain Herzberg's two factor theory.

1329) Why is it important to use procedural justice, particularly in business?

1330) As you begin to manage employees, what will you look for in your employees as positive

and negative signs of job satisfaction?


Answer Key Test name: chapter 11 1) TRUE 2) TRUE 3) FALSE 4) TRUE 5) FALSE 6) TRUE 7) TRUE 8) FALSE 9) A 10) E 11) D 12) B 13) A 14) E 15) E 16) E 17) A 18) C 19) D 20) B 21) A 22) A 23) C 24) A 25) D 26) C 27) A 28) A 29) A 30) A 31) A 32) C 33) B 34) C 35) A 36) B 37) A


38) D 39) C 40) B 41) A 42) D 43) B 44) A 45) E 46) A 47) B 48) B 49) B 50) A 51) D 52) B 53) D 54) B 55) E 56) D 57) D 58) C 59) B 60) A 61) A 62) A 63) C 64) E 65) B 66) D 67) C 68) E 69) D 70) C 71) A 72) C 73) B 74) B 75) A 76) A 77) D


78) A 79) C 80) D 81) C 82) A 83) A 84) C 85) B 86) E 87) C 88) A 89) A 90) B 91) A 92) C 93) C 94) A 95) B 96) C 97) C 98) D 99) A 100) 101) 102) 103) 104) 105) 106) 107) 108) 109) 110) 111) 112) 113) 114) 115) 116) 117)

C C C D A B B C Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay


118) 119) 120) 121)

Essay Essay Essay Essay

Student name:__________ 1331) Teams can satisfy important personal needs for their members, such as affiliation and

esteem. ⊚ true ⊚ false

1332) Job skills learned by working in a team are not transferable to new positions. ⊚ true ⊚ false

1333) Self-managed teams are seldom found in manufacturing. ⊚ true ⊚ false

1334) Groups always keep progressing from one stage of team leadership to the other; they

never remain at any level for a long time. ⊚ true ⊚ false

1335) When trust is low, team members may spend more time trying to influence team

dynamics to protect their own interests than performing their actual jobs. ⊚ true ⊚ false

1336) For a cohesive group to make good decisions, it should establish a norm of constructive

disagreement. ⊚ true ⊚ false


1337) A person displaying the gatekeeper role within the team focuses on keeping confidential

information secure from outsiders. ⊚ true ⊚ false

1338) Conflict can foster creativity within the team. ⊚ true ⊚ false

1339) An organization has decided to restructure its traditional work environment by adopting

team-based approaches to work. The organization is hoping to benefit from A) an individualistic approach to work. B) groupthink, C) free riding and social loafing. D) increased productivity. E) lengthier decision-making processes.

1340) What organizational benefit is unlikely to result from the establishment of teams? A) an increase in productivity B) an improvement in quality C) a reduction in costs D) an analysis of staffing E) an increase in speed

1341) Team-based approaches to work have generated excitement. Used appropriately, teams

can be powerfully effective as a(n) A) start-up to a large corporation. B) building block for organization structure. C) force for maintaining the status quo. D) marketing strategy. E) alternative to evaluation.


1342) How does a group differ from a team? A) Teams hold their members individually accountable for achieving performance goals. B) Groups do not require their members to interact. C) Groups do not necessarily perform as a unit. D) Teams usually do not require their members to agree on a common goal. E) Teams are usually formed of a large number of people.

1343) A(n) __________ is a collection of people who interact to undertake a task but do not

necessarily perform as a unit or achieve significant performance improvements. A) group B) environment C) team D) system E) project team

1344) A __________ is a small number of people with complementary skills who are

committed to a common purpose, set of performance goals, and approach for which they hold themselves mutually accountable. A) team B) population C) system D) sample E) group

1345) Identify a defining characteristic of a traditional work environment. A) Jobs require broad skills and knowledge. B) Rewards are based on individual and team performance. C) Measured risk taking is encouraged and supported. D) Managers primarily determine "best methods" related to work processes. E) Most information is freely shared at all levels of the organization.


1346) In a traditional work environment, __________ is discouraged and punished. A) improving processes B) individual performance C) narrowly defining tasks D) information sharing E) risk taking

1347) What is the role of management in a traditional work environment? A) determining “best methods” for the work process B) planning with the help of team members C) freely sharing information D) encouraging risk taking E) urging everyone to continuously improve methods and processes

1348) What is a characteristic of organizations with the new team environment? A) Everyone works to continuously improve methods and processes. B) Managers alone determine and plan the work. C) Information flow is restricted. D) Cross-training is viewed as inefficient. E) Tasks and duties are narrowly defined.

1349) In a new team work environment, rewards are based on A) avoiding risk taking behaviors. B) individual performance and contributions to team performance. C) management success. D) individual performance. E) promoting groupthink among members.

1350) In a new team work environment, measured risk taking is A) avoided. B) restricted to management. C) encouraged and supported. D) punished. E) seen as counterproductive.


1351) __________ make or do things like manufacture, assemble, sell, or provide service. A) Work teams B) Focus groups C) Staff departments D) Quality circles E) Interest groups

1352) Work teams typically are well defined and A) operate separately from the regular work structure of the firm. B) a clear part of the formal organizational structure. C) are the least common types of teams found in organizations. D) only exist in a traditional work environment. E) are not directly involved in manufacturing or providing services.

1353) __________ have specific assignments, such as research, and members usually must

contribute expert knowledge and judgment. A) Work groups B) Staff departments C) Work teams D) Project and development teams E) Quality circles

1354) As an interior design specialist at a major auto manufacturer, Geoff works on the

prototype for a driverless car designed for seniors with mobility issues. A select group of individuals from all over the firm are his current coworkers. They expect to complete their task sometime later this year when the car will move into Phase 1 testing. This is an example of a A) staff department. B) management team. C) parallel team. D) focus group. E) project and development team.


1355) __________ operate separately from the regular work structure of the firm on a

temporary basis. A) Management teams B) Parallel teams C) Work teams D) Focus groups E) Staff departments

1356) In __________, members often come from different units or jobs and are asked to do

work that is not normally done by the standard structure. A) functional departments B) work teams C) focus groups D) parallel teams E) management teams

1357) __________ coordinate and provide directions to the subunits under their jurisdiction and

integrate work among subunits. A) Management teams B) Development teams C) Interest groups D) Parallel teams E) Project teams

1358) A(n) __________ is based on authority stemming from hierarchical rank and is

responsible for the overall performance of the business unit. A) focus group B) parallel team C) interest group D) quality circle E) management team


1359) __________ are work groups composed of multinational members whose activities span

multiple countries. A) Parallel teams B) Transnational teams C) Management teams D) Focus groups E) Interest groups

1360) __________ differ from other work teams not only by being multicultural but also often

by being geographically dispersed and psychologically distant. A) Parallel teams B) Management teams C) Transnational teams D) Focus groups E) Interest groups

1361) __________ are physically dispersed and communicate electronically more than they do

face-to-face. A) Parallel teams B) Project teams C) Self-designing teams D) Management teams E) Virtual teams

1362) In the context of teams, __________ have no managerial responsibilities. A) self-designing teams B) semiautonomous work groups C) traditional work groups D) autonomous work groups E) self-managed teams


1363) In __________, the first-line manager plans, organizes staffs, directs, and controls them,

and other groups provide support activities, including quality control and maintenance. A) autonomous work groups B) self-designing teams C) self-managed teams D) traditional work groups E) semiautonomous work groups

1364) __________ are voluntary groups of people drawn from various production teams who

make suggestions about quality but have no authority to make decisions or execute. A) Interest groups B) Quality circles C) Focus groups D) Management teams E) Quality control commissions

1365) __________ make decisions about managing and carrying out major production activities

but still get outside support for quality control and maintenance. A) Self-designing teams B) Interest groups C) Focus groups D) Semiautonomous work groups E) Traditional work groups

1366) In __________, members control decisions about and execution of a complete range of

tasks—acquiring raw materials and performing operations, quality control, maintenance, and shipping. A) focus groups B) autonomous work groups C) traditional work groups D) quality circles E) semiautonomous work groups


1367) __________ have control over whom to hire, whom to fire, and what tasks the team will

perform. A) Traditional work teams B) Autonomous work teams C) Self-designing teams D) Interest groups E) Focus groups

1368) In __________, workers are trained to do all or most of the jobs in the unit, they have no

immediate supervisor, and they make decisions previously made by first-line supervisors. A) traditional work teams B) quality circles C) interest groups D) self-managed teams E) focus groups

1369) The long-time CEO of Biersmith Financials said in his retirement speech, "I am delighted

that we have so many young managers in our organization. Teams are prevalent and used to far greater effect than in the past. People are more involved, and they are better trained. Cooperation is higher, and the culture is one of __________, as well as producing." A) strong oversight B) learning C) individual rewards D) risk avoidance E) narrow tasks

1370) When most people think of teams in organizations, they are thinking of __________

teams, which are a clear part of formal organizational structure, with a full-time and stable membership. A) project and development B) parallel C) work D) management E) autonomous


1371) Tom's manager told him, "This project management role will be a real stretch for you.

One of the challenges will be communicating effectively with your project team because many of them live in different countries and different time zones around the globe. Indeed, you certainly have a __________ team." A) transactional B) autonomous C) transparent D) transnational E) parallel

1372) "Chase, I'm going to put you in charge of the production team for our third shift, and your

team will be fully responsible for our entire production process and the products made during that shift. Your team will make decisions and be responsible for a complete range of tasks, including purchasing of materials, oversight of quality control, maintenance, and shipping." Chase will be leading a work team called A) a traditional work group. B) a quality circle. C) an autonomous work group. D) a semiautonomous work group. E) a parallel team.

1373) "Belle, I don't think that your team is quite ready to have independent decision-making

authority from ‘top to bottom.' I will give you and your team authority to carry out major production activities, but I want you to still rely upon outside support for certain tasks, for example, quality control and maintenance." Belle’s team will be a(n) A) quality circle. B) semiautonomous group. C) autonomous group. D) self-designing team. E) parallel team.


1374) The role of a management team is to A) manufacture, assemble, or sell things. B) coordinate and provide direction to subunits. C) develop new products and services. D) complete work not normally done by the standard structure. E) follow instructions provided by first-line supervisors.

1375) Ashley works for a novelty candy company that specializes in seasonal products. She is

part of a unit in which everyone is trained to do every job and empowered to make front-line decisions. As Ashley doesn’t enjoy taking part in the required peer reviews, she is glad that management oversees hiring and firing decisions. Ashley and her coworkers comprise a A) self-designed team. B) management team. C) project team. D) self-managed team. E) traditional work group.

1376) In the __________ stage of team development, rules and roles are established that set

long-lasting precedents. A) forming B) storming C) norming D) performing E) reforming

1377) In the __________ stage of team development, hostilities and conflict arise, and people

jockey for positions of power and status. A) performing B) reforming C) storming D) norming E) forming


1378) In the __________ stage of team development, group members agree on their shared

goals and standards, leading to the development of close relationships. A) storming B) norming C) reforming D) performing E) forming

1379) In the __________ stage of team development, the group channels its energies into

executing its tasks. A) reforming B) norming C) adjourning D) storming E) performing

1380) At the __________ leadership level, the team leader handles most (if not all) of the

leadership duties, including assigning tasks, making and explaining decisions, training team members, and managing members one-on-one. A) team B) supervisory C) participative D) laissez-faire E) democratic

1381) In a(n) __________ leadership approach, the team leader seeks input from group

members for decisions, provides assignments and experiences to develop members' skills and abilities, and coordinates group effort. A) autocratic B) participative C) supervisory D) dictatorial E) team


1382) At the team leadership level, the team leader focuses on A) broadening team capabilities through projects and assignments. B) handling most of the leadership duties. C) developing individual performance. D) reacting to change rather than anticipating change. E) opposing differences within the team.

1383) Jaime told his boss, "I don't understand it. Our first team meeting went so well. But, in

the second meeting, things got pretty stormy. We were all blaming each other for our lack of progress, and hostility and conflict took over. Egos rose to the surface, and people began __________. Finally, we agreed to cool off and meet again next week to agree on our shared goals." A) jockeying for position B) developing closer relationships C) developing norms D) demonstrating discipline needed to meet our deadline E) channeling their energies into performing tasks

1384) To ensure that a team is successful, it is important for the team leader to A) seek the inputs of all members. B) allow groupthink to develop. C) reduce trust between its members. D) practice supervisory leadership. E) restrict innovation and creativity.

1385) __________ enhances team performance, even among virtual teams. A) Overcommunication B) Conflict C) Groupthink D) Close supervision E) Empowerment


1386) Social loafing can be avoided if A) group members do not know each other. B) the communication between group members is limited. C) group members believe that others will take advantage of them. D) clear performance goals exist. E) the culture supports and rewards individual performance.

1387) A social facilitation effect is likeliest to be maintained if A) performance goals are ambiguous. B) group members do not know each other. C) group members believe that their lack of effort will go undetected. D) the task is meaningful to the people working on it. E) the culture supports individualism.

1388) __________ are described as different sets of expectations for how different individuals

should behave. A) Roles B) Skills C) Capabilities D) Abilities E) Attributes

1389) __________ are described as shared beliefs about how people should think and behave. A) Goals B) Benchmarks C) Roles D) Taboos E) Norms


1390) An effective practice for building teams that are cohesive and have high-performance

norms is to A) keep the team as large as possible. B) publicize the team's success among superiors. C) be an autocratic leader. D) maintain low entrance standards. E) tie rewards to individual performance.

1391) In the context of roles of a superior team leader, relating refers to A) seeking information from managers, peers, and specialists, and investigating

problems systematically. B) exhibiting social and political awareness, caring for team members, and building trust. C) influencing team members, as well as obtaining external support for teams. D) delegating authority, being flexible regarding team decisions, and coaching. E) setting a benchmark for the team and dictating terms that will help achieve the benchmark.

1392) Among the roles that superior team leaders perform, __________ involves seeking

information from managers, peers, and specialists, and investigating problems systematically. A) relating B) empowering C) scouting D) probing E) parading

1393) Persuading, as one of the roles that superior team leaders perform, refers to A) seeking information from managers, peers, and specialists, and investigating

problems systematically. B) delegating authority, being flexible regarding team decisions, and coaching. C) exhibiting social and political awareness, caring for team members, and building trust. D) influencing team members, as well as obtaining external support for teams. E) micromanaging team members to ensure that they strictly follow team norms.


1394) In the context of roles of a superior team leader, empowering refers to A) setting a benchmark for the team and dictating terms that will help achieve the

benchmark. B) influencing team members, as well as obtaining external support for teams. C) exhibiting social and political awareness, caring for team members, and building trust. D) seeking information from managers, peers, and specialists, and investigating problems systematically. E) delegating authority, being flexible regarding team decisions, and coaching.

1395) Peyton admitted, "My project team never did gel. It seemed as if we were all, as

individuals, working for different reasons. Some of us were focused on winning the next award from the client. Some of us were focused on bringing in the current project under budget. Some of us were focused on delivering a quality product regardless of the cost. Some of us wanted to finish on time. Some of us wanted to take as long as necessary to finish with excellence. Some of us wanted to go way beyond the client's contractual requirements." If you were Peyton’s manager, what would you counsel her to do so that her future teams do not have a similar experience? A) Commit to a common purpose. B) Place less emphasis on quality than quantity. C) Limit team empowerment. D) Encourage groupthink. E) Avoid the social facilitation effect.

1396) __________ refers to how attractive the team is to its members, how motivated members

are to remain in the team, and the degree to which team members influence one another. A) Assertiveness B) Cohesiveness C) Empowerment D) Collectivism E) Performance


1397) __________ occurs when a tightly knit team is so cooperative that agreeing with one

another's opinions and refraining from criticizing others' ideas become norms. A) Social loafing B) Performance C) Groupthink D) Cognitive dissonance E) Brainstorming

1398) Teams with both difficult goals and specific incentives to attain them achieve the

__________ performance levels. A) lowest B) highest C) mid-point D) fair E) minimum

1399) Dominic told his team, "I'm happy to report that we have been approved to earn team

rewards that are tied to our team performance.” Dominic knows this will A) increase team motivation. B) reduce social facilitation effect. C) inspire job enrichment. D) increase groupthink. E) increase group autonomy.

1400) Randi thought to herself, "If we meet our team objective to solve the client's problem, we

will earn a team award from our company. Now, each team member has contributed at a different level, so the team members should be rewarded differentially as well. The decisions on differential awards should be made by __________. That will result in the most valid reward allocations." A) the manager only B) the client C) the company D) the team members E) a peer review panel


1401) Superior team leadership behaviors include scouting, persuading, empowering, and A) overseeing. B) relating. C) critiquing. D) narrowing. E) negating.

1402) From management’s view, teams with __________ will have the lowest task

performance. A) low-performance norms and high cohesiveness B) high-performance norms and low cohesiveness C) high cohesiveness and high-performance norms D) low cohesiveness and low conflict E) high conflict and high-performance norms

1403) "We're finally there!" thought Tessa, division manager for Webster Incorporated. "It's

taken over a year, but my marketing team has finally gelled. The team members not only work very effectively together, they enjoy working together. And, just as importantly, they __________. Based on our numbers, their performance is better than any other team in the company." A) are accountable only to me B) establish high-performance norms for the team C) seek many new members for the team D) set high levels of groupthink for the team E) never disagree

1404) Managers wishing to build cohesive teams with high performance norms should A) focus more on performance than cohesion. B) keep the team as small as possible. C) tie rewards to individual performance. D) take credit for team successes. E) recruit members with dissimilar attitudes and values.


1405) __________ typically provide the most honest, and most crucial and useful, feedback

about the performance of a team. A) External customers B) Team leaders C) Category captains D) Task specialists E) Team maintenance specialists

1406) When individuals are motivated to work hard when others are present, are concerned with

what others think of them, and want to maintain a positive self-image, the phenomenon is known as A) cognitive dissonance. B) groupthink. C) cohesiveness. D) empowerment effect. E) social facilitation effect.

1407) The function of a task specialist is to A) reduce trust between team members. B) facilitate cohesion among team members. C) prevent team members from interacting with the external environment. D) micromanage team members. E) move the team toward accomplishment of objectives.

1408) __________ are people who boost morale, give support, provide humor, or soothe hurt

feelings within a group. A) Gatekeepers B) Energizers C) Self-managers D) Team maintenance specialists E) Devil’s advocates


1409) __________ would be an ineffective practice in building cohesive teams with high-

performance norms. A) Keeping the team small B) Being a participative leader C) Applying a high degree of autocratic decision making D) Publicizing teams' successes and achievements E) Presenting a challenge from outside the team

1410) Yoshi Naoko, vice president for operations, told his CEO, "It wasn't easy, but my

management team devised an approach for __________ based upon performance and cooperation. This was only made possible because the team members are truly interdependent and therefore must cooperate to attain our division's goals." A) individual rewards B) discouragement of risk taking C) team-based awards D) extensive management oversight E) management property information

1411) In the context of managing lateral relationships, a gatekeeper refers to A) a team member who perceives that his or her interests are being opposed or

negatively affected by another member in the same team. B) a leader who empowers team members to share information and participate in decision making. C) a team member who believes that his or her individual contributions are not important for the team. D) a coach who practices supervisory leadership to lead his or her team. E) a team member who keeps abreast of current developments and provides the team with relevant information.

1412) __________ is a team strategy that entails making decisions with the team and then

letting outsiders know of its intentions. A) Informing B) Parading C) Probing D) Stabilizing E) Divesting


1413) __________ refers to a team strategy that entails simultaneously emphasizing internal

team building and achieving external visibility. A) Informing B) Probing C) Stabilizing D) Parading E) Crowdsourcing

1414) __________ refers to a team strategy that requires team members to interact frequently

with outsiders, diagnose their needs, and experiment with solutions. A) Gatekeeping B) Probing C) Divesting D) Informing E) Parading

1415) In the context of working relationships between teams, __________ exist when top

management centralizes an activity to which a large number of other units must gain access. A) service relationships B) work flow relationships C) liaison relationships D) audit relationships E) stabilization relationships

1416) Among the different working relationships of teams, __________ relationships are

created when teams with problems call on centralized sources of expert knowledge. A) audit B) work-flow C) advisory D) stabilization E) service


1417) A(n) __________ relationship develops when people not directly in the chain of

command evaluate the methods and performances of other teams. A) service B) work-flow C) liaison D) audit E) advisory

1418) When teams must obtain clearance from others before they act, a __________

relationship is created. A) service B) work-flow C) liaison D) stabilization E) procedural

1419) A(n) __________ relationship is created when managers are called on to mediate conflict

between two organizational units. A) service B) work-flow C) stabilization D) audit E) liaison

1420) __________ is defined as a process in which one party perceives that its interests are

being opposed or negatively affected by another party. A) Conflict B) Constructive disagreement C) Ethical lapse D) Cognitive dissonance E) Avoidance


1421) __________ is a style of dealing with conflict involving cooperation on behalf of the

other party but not being assertive about one's own interests. A) Compromise B) Competing C) Avoidance D) Collaboration E) Accommodation

1422) __________ goals refer to higher-level organizational goals taking over specific

individual or group goals. A) Operational B) Superordinate C) Tactical D) Elementary E) Functional

1423) Which statement is accurate about conflict within organizations? A) Conflict can only be managed by compromise. B) Conflict is a normal part of organizational culture. C) Conflict should be encouraged within a team setting. D) Conflict fosters creativity when it is about personalities. E) Conflict is avoided by forming homogenous groups.

1424) __________ is a strong conflict response in which people focus strictly on their own

wishes and are unwilling to recognize the other person's concerns. A) Accommodation B) Compromise C) Competing D) Collaboration E) Cooperation


1425) What conflict management strategy results in satisficing but not optimizing solutions? A) accommodation B) compromise C) collaboration D) competing E) avoidance

1426) Research involving human resource managers indicates that successfully settling internal

conflicts begins by A) deciding how to resolve the dispute and communicating a decision. B) advising the disputants to avoid future incidents. C) investigating and gathering more information. D) determining who is the more valuable employee. E) avoiding the conflict as long as possible.

1427) The vice president of marketing said, "I wish that all of our contract negotiations ended

up like this one, even though it took months and involved resolving many conflicts. In working together for so long, we and the client built a relationship. As a result, we learned to work together cooperatively but without losing our assertiveness for our respective positions. It was a textbook case of using __________ to resolve conflicts." A) accommodation B) mediation C) collaboration D) compromise E) satisficing

1428) An experienced manager would share what advice with a new manager about effectively

managing conflict within work teams? A) Never allow compromise. B) Do not avoid conflict. C) Practice accommodation to attain your best personal outcome. D) Emphasize competing for stronger teamwork. E) Focus on collaborating for a satisficing outcome.


1429) Debra advised her subordinate, "All organizations and teams experience conflict. Your

aim should be to make the conflict __________, that is, to make those involved believe they have benefited rather than lost from the conflict. Benefits can be in the form of new solutions or strengthened work relationships." A) competitive B) repetitive C) productive D) mediating E) accommodating

1430) Sateesh told his subordinate, "Blake, you're level-headed and experienced. That's why

I've nominated you to represent our division on a cross-divisional task force team that will study our firm's compensation policy and make recommendations to executive management. This temporary, part-time team is expected to deliver its findings within six months. It is in addition to your regular 'day job.'" Blake will be working in a(n) A) work team. B) management team. C) parallel team. D) focus group. E) interest group.

1431) "My direct reports will be Carolyn as marketing manager, Beatrice as R&D manager,

Dave as engineering manager, Yuki as projects manager, Byron as procurement manager, and Armando as construction manager. We've worked together for two years, and no one is better than these professionals. They will lead their respective subunit departments, work together in an integrated fashion, and support me very effectively," said Roberto, Executive Vice President for Summit Technologies. These people represent Roberto’s A) parallel team. B) focus group. C) traditional work group. D) management team. E) interest group.


1432) "Gary will soon have a new project to manage, and everyone would like to be assigned to

it," said Nelson. "He is instituting a critical interview and selection process, ensuring that he gets team members who are top-notch and proud to be selected." By this action, Gary demonstrates that, to build a cohesive and high-performing project team, he intends to A) build a team as large as possible. B) serve as an autocratic leader. C) maintain high entrance and socialization standards. D) take credit for the team's success. E) encourage groupthink among his team.

1433) An important part of building a cohesive and high-performing team is to A) help build a team that is as large as possible. B) help the team succeed and publicize its successes. C) welcome anyone interested to join the team. D) tolerate social loafing among the team members. E) autocratically lead that team.

1434) "Drew, a year ago I didn't believe that your setting up a performance competition among

your division managers was going to be productive. I was wrong. All five divisions, including mine, turned in record profits. Now my staff are working incredibly well with staff from other divisions." Drew knows than an important part of building a cohesive and highperforming team is to A) build large teams. B) deemphasize social facilitation. C) use an autocratic style in leading the team. D) encourage animosity among the division managers. E) present a challenge from outside the team.

1435) Chung was facing the most difficult project management challenge in his career. He

would be heading up a team to design a complicated new software application. His team would be a "virtual" team. Thus, his team would A) be transparent in terms of performance. B) coordinate and give direction to the subunits under their jurisdiction. C) operate separately from the regular work structure. D) be physically dispersed and typically communicate electronically. E) not need resources.


1436) "So, do you want me to go ahead or just wait?" asked Kristen. "I've had it with you!" said

Bill. "Waiting is not an action or effort. If so, it would be your first effort all day. I'm tired of carrying you, and I'm tired of covering for you. Help me with this!" In this situation, Kristen is displaying A) psychological safety. B) groupthink. C) social loafing. D) cognitive dissonance. E) social facilitation.

1437) "Getting this new business launched was absolutely a team effort, and clearly a situation

of together we are stronger. Like all of you, I worked a lot harder on this team than I would have alone," said Callie. Callie’s team members exemplified the social facilitation effect, in which A) a team member keeps abreast of current developments and informs the team of relevant information. B) team members are so cooperative that they agree with one another's opinions and refrain from criticizing others. C) ideas become norms. D) teams give direction to the subunits under their jurisdiction. E) individuals work harder when they are members of a group than when they are working alone.

1438) "We have all the experts that we need to meet the team's objectives—an electrical

engineer, a mechanical engineer, a chemist, a chemical engineer, an accountant, and a financial analyst," thought Chantelle. "But our meetings and interactions have been stiff, forced, and occasionally tinged with conflict. We need to add a __________ to our team, to bring some humor, to boost morale, to soothe hurt feelings, and to show concern." A) team maintenance specialist B) gatekeeper C) mediator D) task specialist E) groupthinker


1439) What are the benefits that teams provide for their members?

1440) What are the characteristics of a traditional work environment?

1441) What are the characteristics of a new team environment?

1442) Discuss the stages of team development.

1443) Differentiate between participative leadership and supervisory leadership approaches.


1444) Elaborate on the responsibilities of team leaders using the team leadership approach.

1445) Discuss at least three reasons why groups fail.

1446) Discuss the three criteria that define team effectiveness.

1447) Describe the roles at which superior team leaders are effective.

1448) What are the two primary reasons that make cohesiveness important in teams?


1449) Describe any three working relationships that can develop as teams carry out their roles.

1450) Describe the four-stage strategy typically followed by human resources managers to

settle disputes.

1451) What are some responses to conflict, and how do these responses affect the success or

failure of a team?

1452) Compare the terms: accommodation, compromise, competing, and collaboration. What

strategy is best for managing conflict within a team?

1453) What is the manager's role in mediating conflict?


Answer Key Test name: chapter 12 1) TRUE 2) FALSE 3) FALSE 4) FALSE 5) TRUE 6) TRUE 7) FALSE 8) TRUE 9) D 10) D 11) B 12) C 13) A 14) A 15) D 16) E 17) A 18) A 19) B 20) C 21) A 22) B 23) D 24) E 25) B 26) D 27) A 28) E 29) B 30) C 31) E 32) C 33) D 34) B 35) D 36) B 37) C


38) D 39) B 40) C 41) D 42) C 43) B 44) B 45) D 46) A 47) C 48) B 49) E 50) B 51) B 52) A 53) A 54) A 55) E 56) D 57) D 58) A 59) E 60) B 61) B 62) C 63) D 64) E 65) A 66) B 67) C 68) B 69) A 70) D 71) B 72) A 73) B 74) B 75) A 76) E 77) E


78) D 79) C 80) C 81) E 82) A 83) D 84) B 85) A 86) C 87) D 88) D 89) E 90) A 91) E 92) B 93) B 94) C 95) B 96) C 97) C 98) B 99) C 100) 101) 102) 103) 104) 105) 106) 107) 108) 109) 110) 111) 112) 113) 114) 115) 116) 117)

C D C B E D C E A Essay Essay Essay Essay Essay Essay Essay Essay Essay


118) 119) 120) 121) 122) 123)

Essay Essay Essay Essay Essay Essay

Student name:__________ 1454) Teams can satisfy important personal needs for their members, such as affiliation and

esteem. ⊚ true ⊚ false

1455) Job skills learned by working in a team are not transferable to new positions. ⊚ true ⊚ false

1456) Self-managed teams are seldom found in manufacturing. ⊚ true ⊚ false

1457) Groups always keep progressing from one stage of team leadership to the other; they

never remain at any level for a long time. ⊚ true ⊚ false

1458) When trust is low, team members may spend more time trying to influence team

dynamics to protect their own interests than performing their actual jobs. ⊚ true ⊚ false


1459) For a cohesive group to make good decisions, it should establish a norm of constructive

disagreement. ⊚ true ⊚ false

1460) A person displaying the gatekeeper role within the team focuses on keeping confidential

information secure from outsiders. ⊚ true ⊚ false

1461) Conflict can foster creativity within the team. ⊚ true ⊚ false

1462) An organization has decided to restructure its traditional work environment by adopting

team-based approaches to work. The organization is hoping to benefit from A) an individualistic approach to work. B) groupthink, C) free riding and social loafing. D) increased productivity. E) lengthier decision-making processes.

1463) What organizational benefit is unlikely to result from the establishment of teams? A) an increase in productivity B) an improvement in quality C) a reduction in costs D) an analysis of staffing E) an increase in speed


1464) Team-based approaches to work have generated excitement. Used appropriately, teams

can be powerfully effective as a(n) A) start-up to a large corporation. B) building block for organization structure. C) force for maintaining the status quo. D) marketing strategy. E) alternative to evaluation.

1465) How does a group differ from a team? A) Teams hold their members individually accountable for achieving performance goals. B) Groups do not require their members to interact. C) Groups do not necessarily perform as a unit. D) Teams usually do not require their members to agree on a common goal. E) Teams are usually formed of a large number of people.

1466) A(n) __________ is a collection of people who interact to undertake a task but do not

necessarily perform as a unit or achieve significant performance improvements. A) group B) environment C) team D) system E) project team

1467) A __________ is a small number of people with complementary skills who are

committed to a common purpose, set of performance goals, and approach for which they hold themselves mutually accountable. A) team B) population C) system D) sample E) group


1468) Identify a defining characteristic of a traditional work environment. A) Jobs require broad skills and knowledge. B) Rewards are based on individual and team performance. C) Measured risk taking is encouraged and supported. D) Managers primarily determine "best methods" related to work processes. E) Most information is freely shared at all levels of the organization.

1469) In a traditional work environment, __________ is discouraged and punished. A) improving processes B) individual performance C) narrowly defining tasks D) information sharing E) risk taking

1470) What is the role of management in a traditional work environment? A) determining “best methods” for the work process B) planning with the help of team members C) freely sharing information D) encouraging risk taking E) urging everyone to continuously improve methods and processes

1471) What is a characteristic of organizations with the new team environment? A) Everyone works to continuously improve methods and processes. B) Managers alone determine and plan the work. C) Information flow is restricted. D) Cross-training is viewed as inefficient. E) Tasks and duties are narrowly defined.

1472) In a new team work environment, rewards are based on A) avoiding risk taking behaviors. B) individual performance and contributions to team performance. C) management success. D) individual performance. E) promoting groupthink among members.


1473) In a new team work environment, measured risk taking is A) avoided. B) restricted to management. C) encouraged and supported. D) punished. E) seen as counterproductive.

1474) __________ make or do things like manufacture, assemble, sell, or provide service. A) Work teams B) Focus groups C) Staff departments D) Quality circles E) Interest groups

1475) Work teams typically are well defined and A) operate separately from the regular work structure of the firm. B) a clear part of the formal organizational structure. C) are the least common types of teams found in organizations. D) only exist in a traditional work environment. E) are not directly involved in manufacturing or providing services.

1476) __________ have specific assignments, such as research, and members usually must

contribute expert knowledge and judgment. A) Work groups B) Staff departments C) Work teams D) Project and development teams E) Quality circles


1477) As an interior design specialist at a major auto manufacturer, Geoff works on the

prototype for a driverless car designed for seniors with mobility issues. A select group of individuals from all over the firm are his current coworkers. They expect to complete their task sometime later this year when the car will move into Phase 1 testing. This is an example of a A) staff department. B) management team. C) parallel team. D) focus group. E) project and development team.

1478) __________ operate separately from the regular work structure of the firm on a

temporary basis. A) Management teams B) Parallel teams C) Work teams D) Focus groups E) Staff departments

1479) In __________, members often come from different units or jobs and are asked to do

work that is not normally done by the standard structure. A) functional departments B) work teams C) focus groups D) parallel teams E) management teams

1480) __________ coordinate and provide directions to the subunits under their jurisdiction and

integrate work among subunits. A) Management teams B) Development teams C) Interest groups D) Parallel teams E) Project teams


1481) A(n) __________ is based on authority stemming from hierarchical rank and is

responsible for the overall performance of the business unit. A) focus group B) parallel team C) interest group D) quality circle E) management team

1482) __________ are work groups composed of multinational members whose activities span

multiple countries. A) Parallel teams B) Transnational teams C) Management teams D) Focus groups E) Interest groups

1483) __________ differ from other work teams not only by being multicultural but also often

by being geographically dispersed and psychologically distant. A) Parallel teams B) Management teams C) Transnational teams D) Focus groups E) Interest groups

1484) __________ are physically dispersed and communicate electronically more than they do

face-to-face. A) Parallel teams B) Project teams C) Self-designing teams D) Management teams E) Virtual teams


1485) In the context of teams, __________ have no managerial responsibilities. A) self-designing teams B) semiautonomous work groups C) traditional work groups D) autonomous work groups E) self-managed teams

1486) In __________, the first-line manager plans, organizes staffs, directs, and controls them,

and other groups provide support activities, including quality control and maintenance. A) autonomous work groups B) self-designing teams C) self-managed teams D) traditional work groups E) semiautonomous work groups

1487) __________ are voluntary groups of people drawn from various production teams who

make suggestions about quality but have no authority to make decisions or execute. A) Interest groups B) Quality circles C) Focus groups D) Management teams E) Quality control commissions

1488) __________ make decisions about managing and carrying out major production activities

but still get outside support for quality control and maintenance. A) Self-designing teams B) Interest groups C) Focus groups D) Semiautonomous work groups E) Traditional work groups


1489) In __________, members control decisions about and execution of a complete range of

tasks—acquiring raw materials and performing operations, quality control, maintenance, and shipping. A) focus groups B) autonomous work groups C) traditional work groups D) quality circles E) semiautonomous work groups

1490) __________ have control over whom to hire, whom to fire, and what tasks the team will

perform. A) Traditional work teams B) Autonomous work teams C) Self-designing teams D) Interest groups E) Focus groups

1491) In __________, workers are trained to do all or most of the jobs in the unit, they have no

immediate supervisor, and they make decisions previously made by first-line supervisors. A) traditional work teams B) quality circles C) interest groups D) self-managed teams E) focus groups

1492) The long-time CEO of Biersmith Financials said in his retirement speech, "I am delighted

that we have so many young managers in our organization. Teams are prevalent and used to far greater effect than in the past. People are more involved, and they are better trained. Cooperation is higher, and the culture is one of __________, as well as producing." A) strong oversight B) learning C) individual rewards D) risk avoidance E) narrow tasks


1493) When most people think of teams in organizations, they are thinking of __________

teams, which are a clear part of formal organizational structure, with a full-time and stable membership. A) project and development B) parallel C) work D) management E) autonomous

1494) Tom's manager told him, "This project management role will be a real stretch for you.

One of the challenges will be communicating effectively with your project team because many of them live in different countries and different time zones around the globe. Indeed, you certainly have a __________ team." A) transactional B) autonomous C) transparent D) transnational E) parallel

1495) "Chase, I'm going to put you in charge of the production team for our third shift, and your

team will be fully responsible for our entire production process and the products made during that shift. Your team will make decisions and be responsible for a complete range of tasks, including purchasing of materials, oversight of quality control, maintenance, and shipping." Chase will be leading a work team called A) a traditional work group. B) a quality circle. C) an autonomous work group. D) a semiautonomous work group. E) a parallel team.


1496) "Belle, I don't think that your team is quite ready to have independent decision-making

authority from ‘top to bottom.' I will give you and your team authority to carry out major production activities, but I want you to still rely upon outside support for certain tasks, for example, quality control and maintenance." Belle’s team will be a(n) A) quality circle. B) semiautonomous group. C) autonomous group. D) self-designing team. E) parallel team.

1497) The role of a management team is to A) manufacture, assemble, or sell things. B) coordinate and provide direction to subunits. C) develop new products and services. D) complete work not normally done by the standard structure. E) follow instructions provided by first-line supervisors.

1498) Ashley works for a novelty candy company that specializes in seasonal products. She is

part of a unit in which everyone is trained to do every job and empowered to make front-line decisions. As Ashley doesn’t enjoy taking part in the required peer reviews, she is glad that management oversees hiring and firing decisions. Ashley and her coworkers comprise a A) self-designed team. B) management team. C) project team. D) self-managed team. E) traditional work group.

1499) In the __________ stage of team development, rules and roles are established that set

long-lasting precedents. A) forming B) storming C) norming D) performing E) reforming


1500) In the __________ stage of team development, hostilities and conflict arise, and people

jockey for positions of power and status. A) performing B) reforming C) storming D) norming E) forming

1501) In the __________ stage of team development, group members agree on their shared

goals and standards, leading to the development of close relationships. A) storming B) norming C) reforming D) performing E) forming

1502) In the __________ stage of team development, the group channels its energies into

executing its tasks. A) reforming B) norming C) adjourning D) storming E) performing

1503) At the __________ leadership level, the team leader handles most (if not all) of the

leadership duties, including assigning tasks, making and explaining decisions, training team members, and managing members one-on-one. A) team B) supervisory C) participative D) laissez-faire E) democratic


1504) In a(n) __________ leadership approach, the team leader seeks input from group

members for decisions, provides assignments and experiences to develop members' skills and abilities, and coordinates group effort. A) autocratic B) participative C) supervisory D) dictatorial E) team

1505) At the team leadership level, the team leader focuses on A) broadening team capabilities through projects and assignments. B) handling most of the leadership duties. C) developing individual performance. D) reacting to change rather than anticipating change. E) opposing differences within the team.

1506) Jaime told his boss, "I don't understand it. Our first team meeting went so well. But, in

the second meeting, things got pretty stormy. We were all blaming each other for our lack of progress, and hostility and conflict took over. Egos rose to the surface, and people began __________. Finally, we agreed to cool off and meet again next week to agree on our shared goals." A) jockeying for position B) developing closer relationships C) developing norms D) demonstrating discipline needed to meet our deadline E) channeling their energies into performing tasks

1507) To ensure that a team is successful, it is important for the team leader to A) seek the inputs of all members. B) allow groupthink to develop. C) reduce trust between its members. D) practice supervisory leadership. E) restrict innovation and creativity.


1508) __________ enhances team performance, even among virtual teams. A) Overcommunication B) Conflict C) Groupthink D) Close supervision E) Empowerment

1509) Social loafing can be avoided if A) group members do not know each other. B) the communication between group members is limited. C) group members believe that others will take advantage of them. D) clear performance goals exist. E) the culture supports and rewards individual performance.

1510) A social facilitation effect is likeliest to be maintained if A) performance goals are ambiguous. B) group members do not know each other. C) group members believe that their lack of effort will go undetected. D) the task is meaningful to the people working on it. E) the culture supports individualism.

1511) __________ are described as different sets of expectations for how different individuals

should behave. A) Roles B) Skills C) Capabilities D) Abilities E) Attributes

1512) __________ are described as shared beliefs about how people should think and behave. A) Goals B) Benchmarks C) Roles D) Taboos E) Norms


1513) An effective practice for building teams that are cohesive and have high-performance

norms is to A) keep the team as large as possible. B) publicize the team's success among superiors. C) be an autocratic leader. D) maintain low entrance standards. E) tie rewards to individual performance.

1514) In the context of roles of a superior team leader, relating refers to A) seeking information from managers, peers, and specialists, and investigating

problems systematically. B) exhibiting social and political awareness, caring for team members, and building trust. C) influencing team members, as well as obtaining external support for teams. D) delegating authority, being flexible regarding team decisions, and coaching. E) setting a benchmark for the team and dictating terms that will help achieve the benchmark.

1515) Among the roles that superior team leaders perform, __________ involves seeking

information from managers, peers, and specialists, and investigating problems systematically. A) relating B) empowering C) scouting D) probing E) parading

1516) Persuading, as one of the roles that superior team leaders perform, refers to A) seeking information from managers, peers, and specialists, and investigating

problems systematically. B) delegating authority, being flexible regarding team decisions, and coaching. C) exhibiting social and political awareness, caring for team members, and building trust. D) influencing team members, as well as obtaining external support for teams. E) micromanaging team members to ensure that they strictly follow team norms.


1517) In the context of roles of a superior team leader, empowering refers to A) setting a benchmark for the team and dictating terms that will help achieve the

benchmark. B) influencing team members, as well as obtaining external support for teams. C) exhibiting social and political awareness, caring for team members, and building trust. D) seeking information from managers, peers, and specialists, and investigating problems systematically. E) delegating authority, being flexible regarding team decisions, and coaching.

1518) Peyton admitted, "My project team never did gel. It seemed as if we were all, as

individuals, working for different reasons. Some of us were focused on winning the next award from the client. Some of us were focused on bringing in the current project under budget. Some of us were focused on delivering a quality product regardless of the cost. Some of us wanted to finish on time. Some of us wanted to take as long as necessary to finish with excellence. Some of us wanted to go way beyond the client's contractual requirements." If you were Peyton’s manager, what would you counsel her to do so that her future teams do not have a similar experience? A) Commit to a common purpose. B) Place less emphasis on quality than quantity. C) Limit team empowerment. D) Encourage groupthink. E) Avoid the social facilitation effect.

1519) __________ refers to how attractive the team is to its members, how motivated members

are to remain in the team, and the degree to which team members influence one another. A) Assertiveness B) Cohesiveness C) Empowerment D) Collectivism E) Performance


1520) __________ occurs when a tightly knit team is so cooperative that agreeing with one

another's opinions and refraining from criticizing others' ideas become norms. A) Social loafing B) Performance C) Groupthink D) Cognitive dissonance E) Brainstorming

1521) Teams with both difficult goals and specific incentives to attain them achieve the

__________ performance levels. A) lowest B) highest C) mid-point D) fair E) minimum

1522) Dominic told his team, "I'm happy to report that we have been approved to earn team

rewards that are tied to our team performance.” Dominic knows this will A) increase team motivation. B) reduce social facilitation effect. C) inspire job enrichment. D) increase groupthink. E) increase group autonomy.

1523) Randi thought to herself, "If we meet our team objective to solve the client's problem, we

will earn a team award from our company. Now, each team member has contributed at a different level, so the team members should be rewarded differentially as well. The decisions on differential awards should be made by __________. That will result in the most valid reward allocations." A) the manager only B) the client C) the company D) the team members E) a peer review panel


1524) Superior team leadership behaviors include scouting, persuading, empowering, and A) overseeing. B) relating. C) critiquing. D) narrowing. E) negating.

1525) From management’s view, teams with __________ will have the lowest task

performance. A) low-performance norms and high cohesiveness B) high-performance norms and low cohesiveness C) high cohesiveness and high-performance norms D) low cohesiveness and low conflict E) high conflict and high-performance norms

1526) "We're finally there!" thought Tessa, division manager for Webster Incorporated. "It's

taken over a year, but my marketing team has finally gelled. The team members not only work very effectively together, they enjoy working together. And, just as importantly, they __________. Based on our numbers, their performance is better than any other team in the company." A) are accountable only to me B) establish high-performance norms for the team C) seek many new members for the team D) set high levels of groupthink for the team E) never disagree

1527) Managers wishing to build cohesive teams with high performance norms should A) focus more on performance than cohesion. B) keep the team as small as possible. C) tie rewards to individual performance. D) take credit for team successes. E) recruit members with dissimilar attitudes and values.


1528) __________ typically provide the most honest, and most crucial and useful, feedback

about the performance of a team. A) External customers B) Team leaders C) Category captains D) Task specialists E) Team maintenance specialists

1529) When individuals are motivated to work hard when others are present, are concerned with

what others think of them, and want to maintain a positive self-image, the phenomenon is known as A) cognitive dissonance. B) groupthink. C) cohesiveness. D) empowerment effect. E) social facilitation effect.

1530) The function of a task specialist is to A) reduce trust between team members. B) facilitate cohesion among team members. C) prevent team members from interacting with the external environment. D) micromanage team members. E) move the team toward accomplishment of objectives.

1531) __________ are people who boost morale, give support, provide humor, or soothe hurt

feelings within a group. A) Gatekeepers B) Energizers C) Self-managers D) Team maintenance specialists E) Devil’s advocates


1532) __________ would be an ineffective practice in building cohesive teams with high-

performance norms. A) Keeping the team small B) Being a participative leader C) Applying a high degree of autocratic decision making D) Publicizing teams' successes and achievements E) Presenting a challenge from outside the team

1533) Yoshi Naoko, vice president for operations, told his CEO, "It wasn't easy, but my

management team devised an approach for __________ based upon performance and cooperation. This was only made possible because the team members are truly interdependent and therefore must cooperate to attain our division's goals." A) individual rewards B) discouragement of risk taking C) team-based awards D) extensive management oversight E) management property information

1534) In the context of managing lateral relationships, a gatekeeper refers to A) a team member who perceives that his or her interests are being opposed or

negatively affected by another member in the same team. B) a leader who empowers team members to share information and participate in decision making. C) a team member who believes that his or her individual contributions are not important for the team. D) a coach who practices supervisory leadership to lead his or her team. E) a team member who keeps abreast of current developments and provides the team with relevant information.

1535) __________ is a team strategy that entails making decisions with the team and then

letting outsiders know of its intentions. A) Informing B) Parading C) Probing D) Stabilizing E) Divesting


1536) __________ refers to a team strategy that entails simultaneously emphasizing internal

team building and achieving external visibility. A) Informing B) Probing C) Stabilizing D) Parading E) Crowdsourcing

1537) __________ refers to a team strategy that requires team members to interact frequently

with outsiders, diagnose their needs, and experiment with solutions. A) Gatekeeping B) Probing C) Divesting D) Informing E) Parading

1538) In the context of working relationships between teams, __________ exist when top

management centralizes an activity to which a large number of other units must gain access. A) service relationships B) work flow relationships C) liaison relationships D) audit relationships E) stabilization relationships

1539) Among the different working relationships of teams, __________ relationships are

created when teams with problems call on centralized sources of expert knowledge. A) audit B) work-flow C) advisory D) stabilization E) service


1540) A(n) __________ relationship develops when people not directly in the chain of

command evaluate the methods and performances of other teams. A) service B) work-flow C) liaison D) audit E) advisory

1541) When teams must obtain clearance from others before they act, a __________

relationship is created. A) service B) work-flow C) liaison D) stabilization E) procedural

1542) A(n) __________ relationship is created when managers are called on to mediate conflict

between two organizational units. A) service B) work-flow C) stabilization D) audit E) liaison

1543) __________ is defined as a process in which one party perceives that its interests are

being opposed or negatively affected by another party. A) Conflict B) Constructive disagreement C) Ethical lapse D) Cognitive dissonance E) Avoidance


1544) __________ is a style of dealing with conflict involving cooperation on behalf of the

other party but not being assertive about one's own interests. A) Compromise B) Competing C) Avoidance D) Collaboration E) Accommodation

1545) __________ goals refer to higher-level organizational goals taking over specific

individual or group goals. A) Operational B) Superordinate C) Tactical D) Elementary E) Functional

1546) Which statement is accurate about conflict within organizations? A) Conflict can only be managed by compromise. B) Conflict is a normal part of organizational culture. C) Conflict should be encouraged within a team setting. D) Conflict fosters creativity when it is about personalities. E) Conflict is avoided by forming homogenous groups.

1547) __________ is a strong conflict response in which people focus strictly on their own

wishes and are unwilling to recognize the other person's concerns. A) Accommodation B) Compromise C) Competing D) Collaboration E) Cooperation


1548) What conflict management strategy results in satisficing but not optimizing solutions? A) accommodation B) compromise C) collaboration D) competing E) avoidance

1549) Research involving human resource managers indicates that successfully settling internal

conflicts begins by A) deciding how to resolve the dispute and communicating a decision. B) advising the disputants to avoid future incidents. C) investigating and gathering more information. D) determining who is the more valuable employee. E) avoiding the conflict as long as possible.

1550) The vice president of marketing said, "I wish that all of our contract negotiations ended

up like this one, even though it took months and involved resolving many conflicts. In working together for so long, we and the client built a relationship. As a result, we learned to work together cooperatively but without losing our assertiveness for our respective positions. It was a textbook case of using __________ to resolve conflicts." A) accommodation B) mediation C) collaboration D) compromise E) satisficing

1551) An experienced manager would share what advice with a new manager about effectively

managing conflict within work teams? A) Never allow compromise. B) Do not avoid conflict. C) Practice accommodation to attain your best personal outcome. D) Emphasize competing for stronger teamwork. E) Focus on collaborating for a satisficing outcome.


1552) Debra advised her subordinate, "All organizations and teams experience conflict. Your

aim should be to make the conflict __________, that is, to make those involved believe they have benefited rather than lost from the conflict. Benefits can be in the form of new solutions or strengthened work relationships." A) competitive B) repetitive C) productive D) mediating E) accommodating

1553) Sateesh told his subordinate, "Blake, you're level-headed and experienced. That's why

I've nominated you to represent our division on a cross-divisional task force team that will study our firm's compensation policy and make recommendations to executive management. This temporary, part-time team is expected to deliver its findings within six months. It is in addition to your regular 'day job.'" Blake will be working in a(n) A) work team. B) management team. C) parallel team. D) focus group. E) interest group.

1554) "My direct reports will be Carolyn as marketing manager, Beatrice as R&D manager,

Dave as engineering manager, Yuki as projects manager, Byron as procurement manager, and Armando as construction manager. We've worked together for two years, and no one is better than these professionals. They will lead their respective subunit departments, work together in an integrated fashion, and support me very effectively," said Roberto, Executive Vice President for Summit Technologies. These people represent Roberto’s A) parallel team. B) focus group. C) traditional work group. D) management team. E) interest group.


1555) "Gary will soon have a new project to manage, and everyone would like to be assigned to

it," said Nelson. "He is instituting a critical interview and selection process, ensuring that he gets team members who are top-notch and proud to be selected." By this action, Gary demonstrates that, to build a cohesive and high-performing project team, he intends to A) build a team as large as possible. B) serve as an autocratic leader. C) maintain high entrance and socialization standards. D) take credit for the team's success. E) encourage groupthink among his team.

1556) An important part of building a cohesive and high-performing team is to A) help build a team that is as large as possible. B) help the team succeed and publicize its successes. C) welcome anyone interested to join the team. D) tolerate social loafing among the team members. E) autocratically lead that team.

1557) "Drew, a year ago I didn't believe that your setting up a performance competition among

your division managers was going to be productive. I was wrong. All five divisions, including mine, turned in record profits. Now my staff are working incredibly well with staff from other divisions." Drew knows than an important part of building a cohesive and highperforming team is to A) build large teams. B) deemphasize social facilitation. C) use an autocratic style in leading the team. D) encourage animosity among the division managers. E) present a challenge from outside the team.

1558) Chung was facing the most difficult project management challenge in his career. He

would be heading up a team to design a complicated new software application. His team would be a "virtual" team. Thus, his team would A) be transparent in terms of performance. B) coordinate and give direction to the subunits under their jurisdiction. C) operate separately from the regular work structure. D) be physically dispersed and typically communicate electronically. E) not need resources.


1559) "So, do you want me to go ahead or just wait?" asked Kristen. "I've had it with you!" said

Bill. "Waiting is not an action or effort. If so, it would be your first effort all day. I'm tired of carrying you, and I'm tired of covering for you. Help me with this!" In this situation, Kristen is displaying A) psychological safety. B) groupthink. C) social loafing. D) cognitive dissonance. E) social facilitation.

1560) "Getting this new business launched was absolutely a team effort, and clearly a situation

of together we are stronger. Like all of you, I worked a lot harder on this team than I would have alone," said Callie. Callie’s team members exemplified the social facilitation effect, in which A) a team member keeps abreast of current developments and informs the team of relevant information. B) team members are so cooperative that they agree with one another's opinions and refrain from criticizing others. C) ideas become norms. D) teams give direction to the subunits under their jurisdiction. E) individuals work harder when they are members of a group than when they are working alone.

1561) "We have all the experts that we need to meet the team's objectives—an electrical

engineer, a mechanical engineer, a chemist, a chemical engineer, an accountant, and a financial analyst," thought Chantelle. "But our meetings and interactions have been stiff, forced, and occasionally tinged with conflict. We need to add a __________ to our team, to bring some humor, to boost morale, to soothe hurt feelings, and to show concern." A) team maintenance specialist B) gatekeeper C) mediator D) task specialist E) groupthinker


1562) What are the benefits that teams provide for their members?

1563) What are the characteristics of a traditional work environment?

1564) What are the characteristics of a new team environment?

1565) Discuss the stages of team development.

1566) Differentiate between participative leadership and supervisory leadership approaches.


1567) Elaborate on the responsibilities of team leaders using the team leadership approach.

1568) Discuss at least three reasons why groups fail.

1569) Discuss the three criteria that define team effectiveness.

1570) Describe the roles at which superior team leaders are effective.

1571) What are the two primary reasons that make cohesiveness important in teams?


1572) Describe any three working relationships that can develop as teams carry out their roles.

1573) Describe the four-stage strategy typically followed by human resources managers to

settle disputes.

1574) What are some responses to conflict, and how do these responses affect the success or

failure of a team?

1575) Compare the terms: accommodation, compromise, competing, and collaboration. What

strategy is best for managing conflict within a team?

1576) What is the manager's role in mediating conflict?


Answer Key Test name: chapter 13 1) TRUE 2) FALSE 3) FALSE 4) FALSE 5) TRUE 6) TRUE 7) FALSE 8) TRUE 9) D 10) D 11) B 12) C 13) A 14) A 15) D 16) E 17) A 18) A 19) B 20) C 21) A 22) B 23) D 24) E 25) B 26) D 27) A 28) E 29) B 30) C 31) E 32) C 33) D 34) B 35) D 36) B 37) C


38) D 39) B 40) C 41) D 42) C 43) B 44) B 45) D 46) A 47) C 48) B 49) E 50) B 51) B 52) A 53) A 54) A 55) E 56) D 57) D 58) A 59) E 60) B 61) B 62) C 63) D 64) E 65) A 66) B 67) C 68) B 69) A 70) D 71) B 72) A 73) B 74) B 75) A 76) E 77) E


78) D 79) C 80) C 81) E 82) A 83) D 84) B 85) A 86) C 87) D 88) D 89) E 90) A 91) E 92) B 93) B 94) C 95) B 96) C 97) C 98) B 99) C 100) 101) 102) 103) 104) 105) 106) 107) 108) 109) 110) 111) 112) 113) 114) 115) 116) 117)

C D C B E D C E A Essay Essay Essay Essay Essay Essay Essay Essay Essay


118) 119) 120) 121) 122) 123)

Essay Essay Essay Essay Essay Essay

Student name:__________ 1577) Effective managers make sure that activities are going as planned with the help of

control. ⊚ true ⊚ false

1578) Customer service standards and performance standards fall into the general categories of

quantity, quality, cost, and time used. ⊚ true ⊚ false

1579) Within U.S. organizations, the standard unit of measure for the budgeting process is

dollars. ⊚ true ⊚ false

1580) Controlling by profit and loss is most commonly used for the entire enterprise and, in the

case of a diversified corporation, its divisions. ⊚ true ⊚ false

1581) Allowing people to initiate their own corrective action encourages self-control and

reduces the need for outside supervision. ⊚ true ⊚ false


1582) Empowering employees to make decisions implies giving up control. ⊚ true ⊚ false

1583) What is the best definition of control? A) Control refers to the expected performance for a given goal. B) Control is any process that directs the activities of individuals toward the achievement

of organizational goals. C) Control is people's perceived likelihood that their efforts will enable them to attain their performance goals. D) Control is the process of giving people additional tasks to do at the same time to alleviate boredom. E) Control is the process of applying a consequence that increases the likelihood of a person repeating the behavior that led to it.

1584) Cheryl, an employee, received an e-mail from an angry client about a certain product.

Although it was not Cheryl’s fault, she hesitated to report it to her manager because she knew that she would be blamed and could even be fired. In this case, what seems to be true of Cheryl’s company? A) The firm's expectations are not established in writing. B) Employees are unclear about what needs to be achieved. C) "Shoot the messenger" management exists, implying a lack of control. D) Reviews are not held periodically. E) Key data are not measured and reported in a timely manner.

1585) At a companywide meeting, the CEO spoke energetically about adopting cost-cutting

measures due to the recent economic slump. However, a few days later, the employees found out that the CEO had just left for an exotic vacation paid for by the company. Based on this scenario, what might be assumed about this company? A) Key data are not measured and reported in a timely manner. B) Reviews are not held periodically. C) Employees are unclear about what needs to be achieved. D) Senior managers set a bad example, implying a lack of control. E) The firm's expectations are not established in writing.


1586) A company is said to lack control when there is a(n) __________, that is the firm's

expectations are not established in writing. A) poor ethical culture B) "shoot the messenger" management C) lax top management D) absence of policies E) lack of periodic reviews

1587) Control and __________ have been called the Siamese twins of management. A) planning B) organizing C) leading D) directing E) empowerment

1588) Bureaucratic control refers to A) the divergent interests of the organization and individuals who work there. B) the employees who share the values, expectations, and goals of the organization and

act in accordance with them. C) the use of pricing mechanisms and exchange relationships to regulate activities within the organization. D) the interpersonal processes of organization culture, leadership, and groups and teams. E) the use of rules, standards, regulations, hierarchy, and legitimate authority to guide performance.

1589) __________ control is the use of rules, regulations, and authority to guide performance. A) Clan B) Bureaucratic C) Market D) Concurrent E) Ethical


1590) __________ control includes items such as budgets, statistical reports, and performance

appraisals to regulate behavior and results. A) Clan B) Market C) Bureaucratic D) Concurrent E) Feedforward

1591) What is an accurate statement about market control? A) It assumes that the interests of the organization and individuals naturally diverge. B) It is based on the idea that employees may share the values, expectations, and goals of

the organization and act in accordance with them. C) It includes such items as budgets, statistical reports, and performance appraisals. D) It uses prices, competition, and exchange relationships to regulate activities. E) It refers to the use of rules, standards, regulations, hierarchy and legitimate authority to guide performance.

1592) __________ control is based on the norms, values, shared goals, and trust among group

members. A) Clan B) Feedback C) Concurrent D) Benchmark E) Market

1593) During challenging times when resources are limited and budgets need to be stretched,

__________ control becomes crucial for organizational survival. A) individual B) managerial C) consumer D) customer E) stakeholder


1594) "Are you telling me that we have to write off over $2 million in revenue because our

eastern division manager did not accrue it properly?" asked the CEO. His CFO replied, "Yes. I know that we are a start-up, still working on developing policies, rules, and procedures, but, in this case, the division manager had no processes in place to monitor the project's progress." The CEO concluded, "The __________ has caused irreparable damage to our firm." A) firm's expectations B) lack of controls C) agreed-upon standards D) market control approach E) bureaucratic control approach

1595) Jensen thought, "I'm not surprised that the corporate office canceled our funding. Costs

had spiraled upward, and unanticipated technical problems had cropped up. We just didn't keep our eye on the ball, even though we had a great plan and sound strategies. Fundamentally, we lacked an effective means of control to ensure that A) our marketing strategies were reflective of the old product." B) employees took steps to solve problems." C) the plans were carried out." D) management was creative." E) communication was clear."

1596) __________ lay(s) out a framework for the future and provide(s) a blueprint for control. A) Planning B) Control systems C) Creativity D) Values E) Empowerment

1597) After first setting performance standards, the next step in a typical control system is A) benchmarking performance standards. B) comparing performance against the standards. C) taking action to correct problems. D) revising standards. E) measuring performance.


1598) The last step in a typical control system is A) taking action to correct problems. B) setting performance standards. C) measuring performance. D) comparing performance against the standards. E) revising standards.

1599) A(n) __________ is the level of expected performance for a given goal: a target that

establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed. A) strategy B) objective C) standard D) asset E) audit

1600) "In implementing the control process for our new operation, I first established

performance standards," said Muriel. "Next, I measured performance. But I'm not sure that my measurement of performance is accurate." Her boss replied, "In measuring performance, you can gather performance data from three sources: __________. Furthermore, the data need to be timely." A) written reports, oral reports, and personal observation B) client satisfaction surveys, oral reports, and customer observations C) written reports, the grapevine, and media reports D) competitors' performance data, market analysis, and personal observation E) written reports, oral reports, and analysts' statements


1601) A division manager whispered to his peer as they left the monthly executive meeting,

"Our new CEO is going to play hardball. Any of us whose division is performing with significant negative deviation from the established budget is going to get a lot of her concentrated attention." "What do you expect?" countered his coworker. "She told us in our meeting that she would be using __________ as part of her control system." A) the balance sheet B) management myopia C) peer review D) the principle of exception E) organizational culture

1602) The __________ control process is used while plans are being carried out, including

directing, monitoring, and fine-tuning activities as they are performed. A) feedback B) concurrent C) accounting D) budget E) feedforward

1603) While plans are being carried out, __________ control is taking place. A) feedback B) specialist C) preliminary D) feedforward E) concurrent


1604) "Listen up," said Ian, the dive team leader, as his team finished suiting up. "This is a

hazardous dive. We've been properly trained and properly equipped with the necessary gear and tools to rescue the trapped cavers. Stay in physical contact with the divers in front of and behind you. After we complete the rescue, meet me to debrief what we did well and what we can improve." In this case, the proper training and equipment is an example of __________ control. A) feedback B) specialist C) feedforward D) operator E) concurrent

1605) __________ control is future oriented and aims to prevent problems before they arise. A) Feedback B) Specialist C) Feedforward D) Operator E) Concurrent

1606) Which statement is accurate regarding six sigma? A) The system was developed by General Electric. B) It is designed to choose the correct organizational process for a job. C) The lower the sigma number, the lower is the level of defects. D) It indicates how often defects in a process are likely to occur. E) It always improves the bottom line.

1607) The six sigma approach is based on a(n) __________ that contribute(s) to customer

satisfaction. A) statistical analysis B) budgetary control C) strategic vision D) management audits E) increased customer base


1608) A(n) __________ is an evaluation of the effectiveness and efficiency of various systems

within an organization. A) standard B) management audit C) innovation catalyst D) budget E) profit and loss statement

1609) External audits are used for A) evaluating financial stability. B) evaluating production efficiency. C) evaluating sales effectiveness. D) identifying possible mergers or acquisitions. E) identifying earnings potential.

1610) External audits are useful for preliminary control because they A) can assess what a company has done for itself. B) review a company's past, present, and future. C) can evaluate how a company has served its customers. D) can prevent problems from occurring. E) have an immediate effect on profit.

1611) Assessing the planning, organizing, leading, and controlling efforts of one's own

organization is the essential function of A) strategic audit. B) feedforward control. C) feedback control. D) external audit. E) internal audit.


1612) A(n) __________ is an evaluation conducted by one organization of another

organization. A) external audit B) market control C) clan control D) budget E) six sigma process

1613) __________ detect and correct significant variations, or discrepancies, in the results of

plans and activities. A) Quality standards B) Quantity standards C) Control systems D) Performance systems E) Communication strategies

1614) "After a long and costly two weeks, I have lots of data, that I don't know how to analyze.

I don't know what constitutes good performance as opposed to bad performance," said Joseph to his boss. His boss replied, "It sounds as if you failed to first establish a(n) __________ by which to assess your data." A) control B) plan C) rule D) standard E) index

1615) In __________ control, instead of waiting for results and comparing them with goals, a

manager or employees can exert control by limiting activities in advance. A) feedforward B) concurrent C) feedback D) market E) internal


1616) Darby, shift supervisor at Hoosier Meatpacking, has the highest performing team. One

reason for this is how she controls her team's activities. First, she ensures that her subordinates are properly trained and properly equipped. Then, during the shift, she carefully monitors her workers' actions, taking notes and even measurements as needed. Finally, at the end of each work week, she analyzes her notes and measurement data, and she uses the results of her analysis to make needed production changes the following week. When Darby is monitoring her workers' actions, she is exercising __________ control. A) feedforward B) concurrent C) forward D) feedback E) external

1617) What provides essential feedback control when they identify legal and ethical lapses that

could harm the organization and its reputation? A) six sigma process B) budgeting C) external audits D) financial questions E) activity-based costing

1618) __________ are targets that establish desired performance levels, motivate performance,

and serve as benchmarks against which to assess actual performance. A) Feedback controls B) Liabilities C) Management audits D) Gatekeepers E) Standards

1619) Policies restricting workplace romantic involvement, tattoos and body art, and public

disclosure of corporate information are examples of __________ control. A) social B) feedback C) concurrent D) feedforward E) market


1620) __________ control focuses on the use of information about results to correct deviations

from the acceptable standard after they arise. A) Reactionary B) Concurrent C) Corrective D) Outback E) Feedback

1621) __________ is the second stage of budgetary control. A) Responding appropriately B) Performing budgetary operations C) Comparing six sigma data D) Establishing expectations E) Taking action

1622) A __________ budget is used for areas of the organization that incur expenses but

produce no revenue. A) sales B) production C) cost D) cash E) master

1623) Kristina is the financial manager at a candy manufacturer. One of her duties is to make a

budget that shows the forecasted receipts and expenditures of the company, the amount of working capital available, and the degree to which it should obtain funds from outside of the firm. Kristina makes this budget after all other budget estimates have been completed. Kristina is working on a __________ budget. A) master B) cash C) cost D) production E) sales


1624) In his new employee orientation training, Preston heard his new accounting supervisor,

explain, "At Fitzgerald Industries, we do not use traditional cost accounting. Rather, we use activity-based costing, or ABC. According to ABC, we __________ costs according to what our employees do, rather than what the company spends." A) audit B) expend C) trade D) allocate E) benchmark

1625) Required information for preparing a __________ budget includes types and capabilities

of machines and availability of materials. A) production B) capital C) cash D) sales E) cost

1626) Budgeting information is A) confined to managerial decisions. B) not confined to finances. C) restricted to dollars. D) inclusive of forecasting. E) found strictly in accounting ledgers.

1627) The __________ budget is essential to every business. A) cash B) sales C) cost D) production E) operational


1628) Traditional cost accounting may be inappropriate today because A) the time needed to produce goods is shrinking. B) it is based on rigid hierarchical organization structures. C) it is based on updated methods. D) the service sector is being replaced by the manufacturing sector. E) modern organizations perform many unrelated activities.

1629) "I have to help my operations manager reduce expenses," said Tyrone, "but my expense

categories—salaries, fringes, supplies, and fixed costs—are too general to give me guidance." Mavis, his accounting supervisor, said, "Let me show you a different approach, so that you can develop data that will identify areas for expense reduction. I suggest that you use __________. It will identify streams of activity to which you can then allocate costs across particular business processes according to the time employees devote to those activities." A) sales forecasting B) production costing C) activity-based costing D) capital costing E) operational costing

1630) A(n) __________ is a report that shows the financial picture of a company at a given time

and itemizes assets, liabilities, and stockholders' equity. A) profit and loss statement B) balance sheet C) expense report D) income statement E) budget report

1631) __________ are the values of the various items the corporation owns. A) Liabilities B) Assets C) Profits D) Audits E) Equities


1632) __________ are the amounts the corporation owes to various creditors. A) Liabilities B) Equities C) Dividends D) Profits E) Assets

1633) __________ is the amount accruing to the corporation's owners. A) Stockholders' equity B) Liability C) Dividend D) Surplus E) Asset

1634) Select the relationship represented by the balance sheet. A) assets + liabilities + stockholders' equity = 0 B) assets + liabilities = stockholders' equity C) assets = liabilities + stockholders' equity D) assets + stockholders' equity = liabilities E) assets = liabilities – stockholders' equity

1635) A(n) __________ is an itemized financial document of the income and the expenses of a

company's operations. A) balanced scorecard B) appropriation account C) surplus D) debt-equity ratio E) profit and loss statement

1636) __________ indicate a company's ability to pay short-term debts. A) Liabilities B) Stockholders' equities C) Assets D) Liquidity ratios E) Capital budgets


1637) Nan has recently reviewed a number of indicators of financial control. The one that

troubled her, the __________, indicated that the company could have trouble meeting its short-term financial obligations. A) profit and loss statement B) profitability ratio C) leverage ratio D) current ratio E) return on investment

1638) __________ ratio is the name of the most common liquidity ratio, current assets to

current liabilities. A) Debt-equity B) Current C) Profit and loss D) Return on investment E) Stockholders' equity

1639) A __________ is a liquidity ratio that indicates the extent to which short-term assets can

decline and still be adequate to pay short-term liabilities. A) current ratio B) return on investment C) debt-equity ratio D) leverage ratio E) profitability ratio

1640) __________ ratios show the funds supplied by creditors and shareholders. A) Liquidity B) Current C) Net working capital D) Leverage E) Profitability


1641) The __________ ratio indicates the company's ability to meet its long-term financial

obligations. A) profitability B) liquidity C) debt-equity D) current E) net working capital

1642) __________ ratios indicate management's ability to generate a financial return on sales or

investment. A) Liquidity B) Leverage C) Net working capital D) Profitability E) Current

1643) __________ refers to the situation when managers focus on short-term earnings and

profits at the expense of their longer-term strategic obligations. A) Return on investment B) Narcissism C) Balanced scorecard D) Management myopia E) Provincialism

1644) A company enforced a rule that employees were required to submit their cell phones for

safekeeping before entering their work bay. Employees followed the rule in order to avoid getting into trouble with the management. As a result, many of them missed important phone calls from their clients and customers. This scenario is an example of A) market control. B) management myopia. C) dysfunctional behavior. D) rigid bureaucratic behavior. E) resistance to control.


1645) When a control system prompts employees to do only tasks strictly required in their

formal job descriptions, it reflects A) excessive subordination. B) tactical behaviors. C) rigid bureaucratic behaviors. D) resistance to supervision. E) management myopia.

1646) __________ behavior occurs when employees feel forced to attempt to "beat the system." A) Rigidly bureaucratic B) Tactical C) Inflexible D) Autonomous E) Myopic

1647) Uri noticed a pattern at the annual budgeting session of his company. Mid-level managers

were asking for unrealistically high budgets while top management was attempting to limit budgets under last year's actual expenditures. Management used __________ strategies. A) budget breakdowns B) bureaucratic budgeting C) budget resistance D) tactical behaviors E) rigid behaviors

1648) What is the most plausible reason why employees resist control systems? A) Control systems can change the power structure of the organization. B) Control systems make employees less accountable for their performance. C) Control systems decrease the accuracy of performance data. D) Control systems ensure the security of employees. E) Control systems require cooperation between employees.


1649) __________ budget sheet items over time uncovers important trends. A) Expanding B) Summarizing C) Ignoring D) Eliminating E) Merging

1650) "Many of you management trainees do not have formal educations or degrees in

accounting or finance. And that is OK," said the corporate trainer. "That's why this training module will cover control by __________, which is most commonly used for the entire enterprise and, in the case of a diversified corporation such as ours, its divisions." A) profit and loss B) assets C) liabilities D) financial ratios E) expenses

1651) "The amount of information in the accounting reports is so overwhelming that I cannot

understand it," said Woody to his division manager, Sam. "Yes," said Sam, "The sheer volume of the numbers in the reports is daunting. That's why we have decided that an effective approach for checking our firm's overall performance is to use __________, which indicate strengths and weaknesses." A) profit and loss statements B) key financial ratios C) assets D) liabilities E) balance sheets


1652) "With the rollout of this new __________, we will be able to get a much more accurate

picture of how each division—and, in fact, each operations manager, each sales manager, and each sales professional—is performing. And we will be able to hold each manager and employee more accountable. As a result, do not be surprised when we receive a lot of resistance from across the organization," said the CFO of Magnetic International. A) profitability ratio B) external audit C) tactical behavior D) comprehensive control system E) expense report

1653) "My business relationship with the Midwest sales rep has really deteriorated. We used to

cooperate; now we __________," said the manager of the Southwest region. "And I blame our new control system. Every month, managers across the entire enterprise get profit and loss statements for all divisions and business units. We look at one another's performance and are less likely to help one another when we know that our business unit or division may suffer a loss in profitability as a result. After all, promotions, salary increases, and bonus pools are tied to our profitability." A) compete B) promote change C) feel unrelated D) sabotage E) ignore one another

1654) The __________ is an itemized financial statement of the income and expenses of a

company's operations. A) balanced scorecard B) current ratio C) return on investment D) balance sheet E) profit and loss statement


1655) To be effective, control systems must A) be based on subjective standards. B) focus on upward communication. C) be acceptable to top stockholders. D) use multiple approaches. E) centralize decision making.

1656) __________ motivates people and provides information that enables them to correct their

own deviations from performance standards. A) Blaming B) Groupthink C) Management myopia D) Feedback E) Provincialism

1657) A __________ refers to a control system combining four sets of performance measures:

financial, customer, business process, and learning and growth. A) balanced scorecard B) concurrent control C) management audit D) feedforward control E) six sigma

1658) The most effective standards are expressed in __________ terms; they are objective more

than subjective. A) quantitative B) qualitative C) nonfinancial D) adequate E) technical


1659) "Well, no wonder our customers are leaving us!" said the CEO of Performance Sports.

"For the past year, our control system has measured and reported the days between order receipt and order shipped, rather than the days between order receipt and date requested by our customers. What we are measuring may make us look and feel good, but we are measuring the wrong thing!" Performance Sports is committing the "deadly sin" of performance measurement known as A) vanity. B) pettiness. C) provincialism. D) inanity. E) narcissism.

1660) Cole, an outside salesman for Rainforest Products, angrily told his supervisor, "I received

a memo from our accounting department that, effective immediately, all employees and their managers will receive a monthly report measuring each employee's days-in-office statistics. And over the next 12 months, the days-in-office metric is expected to increase by 50 percent to reduce our firm's travel costs. How can I do outside sales, when I am expected to spend more days inside the office?" Cole is expressing a view that his firm is committing the "deadly sin" of __________ by measuring days-in-office for outside sales people. A) narcissism B) frivolity C) pettiness D) inanity E) vanity

1661) Market controls use __________ to regulate performance. A) rules and regulations B) economic forces C) inherent authority D) sales and variable costs levels E) norms and values


1662) Using market control mechanisms is criticized for A) relying too heavily on rules and procedures. B) not adequately reflecting organizations' total value. C) being too dependent on the organizational culture. D) enhancing environmental sustainability. E) overly centralizing decision making and power.

1663) A(n) __________ price is internally charged by one organizational unit for a good or

service that it supplies to another unit. A) substitute B) transfer C) department D) organizational E) budget

1664) Traditionally, boards try to control CEO performance mainly through A) retention rates. B) bonuses tied to customer reviews. C) balanced scorecards. D) incentive pay. E) employee satisfaction.

1665) Empowerment is important in organizations today because A) management has changed. B) employees' jobs have become less challenging. C) employees are more concerned about pay. D) labor unions are growing. E) the role of technology has increased.


1666) __________ involves creating relationships built on mutual respect and encouraging each

individual to take responsibility for his or her actions. A) Market control B) Authority control C) Bureaucratic control D) Cultural control E) Clan control

1667) A practical guideline for managing in an empowered world is to A) put control where the best people are. B) maintain the status quo. C) use after-the-fact controls. D) base control on company norms. E) reinforce responsiveness and teamwork.

1668) Which statement is accurate regarding managing in an empowered world? A) "High-flex" organizations are based on obedience. B) Team performance and adding value to the customer should be emphasized. C) Information must police decision making. D) Close supervision, checks, and balances are recommended. E) Emphasis should be put on managing by numbers.

1669) "This is the third time that our business unit has been sold in the past five years," said

Mahima. "Each time, our managers lose their jobs, and workers like us have to learn to work under new managers and new systems. Our business unit has been just a minor piece of several large diversified companies, and our performance has been compared to other business units' performance in these companies. As a result, we have been repeatedly bought and sold based on market controls, and employees often __________ as a result." A) suffer B) benefit C) surrender D) achieve E) thrive


1670) Nigel said to his manager, "Tomas, I’ve received an unsolicited offer from a competitor.

I've enjoyed my eight years here, and I'd like to stay. But the offered salary is 20 percent higher than my current salary. The other firm cited what I have learned this past year on the public works job as a particularly valuable skill." Nigel is a highly valued employee, and Tomas has been grooming him as his successor. If Tomas were to consider market rates as an important indicator of worth in responding to Nigel, Tomas would most likely A) transfer Nigel to a division in another city where the competitor does not have an office. B) explain to Nigel that internal resource considerations establish Nigel's salary. C) seek to retain Nigel by increasing his salary by 25 percent. D) contact the competitor and inform them that Nigel is "off limits." E) terminate Nigel's employment for insubordination and lack of loyalty.

1671) __________ keep CEOs focused on the company's longer-term health. A) Clan controls B) Balanced scorecards C) Market-based wages D) Transfer prices E) Transfer controls

1672) A(n) __________ is the internal charge by one organizational unit for a good or service

that it supplies to another unit. A) market price B) transfer price C) outsource item D) bureaucratic control E) balanced scorecard

1673) __________ has become a necessary part of a manager's control repertoire. A) Denial B) Consent C) Empowerment D) Veto E) Vanity


1674) Triton Gypsum is a corporation that produces material for wallboard and other

applications. They are a hierarchical organization, with a strict chain of command culture and a strict set of rules and regulations. They track a large amount of data using statistical techniques, and they use this data to regulate behavior and results. Triton follows a __________ control system. A) bureaucratic B) market C) clan D) high-flex E) concurrent

1675) Northeastern Health is a regional medical center. They tie pricing of services and profits

to specific services in the medical center. Northeastern Health uses a __________ control system. A) bureaucratic B) market C) clan D) feedforward E) concurrent

1676) "Once per year, our CEO stations himself for an entire day on the production floor,

handing out safety gear and demonstrating its proper use if workers are failing to do so," said Norm. "Boy, that really makes an impression. He ‘walks the talk' regarding our corporate value of safety." The bureaucratic control that the CEO is using is known as __________ control. A) feedback B) feedforward C) concurrent D) market E) clan


1677) "The new phones are really high-tech, but they are also very complicated to use," said

Nadia, administrative manager for Baker Enterprises. "I will schedule several training workshops that the staff can attend, and I will teach them how to use the phones." The bureaucratic control that Nadia will use is __________ control. A) feedback B) feedforward C) concurrent D) market E) clan

1678) "Over the past five years, some of our new entry-level employees have been stars, some

have been solid, and some have not met our expectations," said Claudia, manager of operations. "We will be gathering data on entry-level employees' performances and correlating those performances with college GPAs and college leadership positions. We will use our results to fine-tune our campus recruiting program so that we hire more star employees." The bureaucratic control that Claudia is describing is __________ control. A) feedback B) feedforward C) concurrent D) market E) clan

1679) "I think that we can manufacture 12,000 units next year," said Maritza, the factory

manager. "But I will need to buy significantly more tons of raw material and more replacement parts." The operations division manager replied, "Maritza, I'm glad to hear that. You will need to include all of these physical units in your __________ budget for next year." A) sales B) production C) cost D) cash E) profit-loss


1680) "If top management wants us to produce a new line of lawn tractors over the next ten

years, we will need to invest in another factory assembly line. And that's going to cost big bucks," said the factory manager for Home Oasis Inc. "Please start greasing the skids internally. I don't want the home-office executives to be surprised when they see high-dollar fixed assets in my __________ budget." A) sales B) production C) capital D) master E) operational

1681) "Why is the __________ budget for next year 30 percent higher than this year's actual

expenses?" asked Pilar, CEO of Lyonnais Group. The CFO replied, "We need to hire two additional human resources professionals to oversee the new benefits program and an additional attorney to handle claims. Also, our new lease for Building A will go into effect, and that includes a 10 percent increase in the first year." Pilar replied, "Ouch. It's tough to absorb those kinds of increases from parts of our organization that generate no revenue." A) cash B) cost C) production D) master E) maintenance

1682) "All right, we have budget inputs from all six divisions. I have consolidated all of these

inputs into a draft spreadsheet, and I have added other corporate budgets into the spreadsheet," said the CFO of Fresh Grove Products, to her fellow executives. "We need to review this ‘budget of budgets' and get back to the division manager with our comments. After they incorporate our comments and submit their revised budget inputs, I will consolidate the division budgets and all other budgets into a __________ budget." A) master B) sales C) capital D) cost E) maintenance


1683) What are some of the signs that a company lacks controls?

1684) Describe the three broad strategies for achieving organizational control.

1685) What are the four major steps of the control process?

1686) Describe the three sources from which performance data are commonly obtained.

1687) Briefly explain the two basic types of controls that are feasible in a computer-controlled

production technology.


1688) Describe feedback control, feedforward control, and concurrent control. Include

examples as part of your response.

1689) Describe at least four of the different types of budgets that are frequently used.

1690) What are common reasons people strongly resist control systems?

1691) Briefly describe the criteria that effective control systems should meet.

1692) According to Michael Hammer, there are seven "deadly sins" of performance measure to

avoid. Describe at least four of these.


1693) Briefly describe market controls at the corporate level.

1694) Why are control systems based solely on bureaucratic and market mechanisms

insufficient for directing today's workforce?

1695) Explain what is meant by budgetary controls.

1696) Create a comparative balance sheet with the data supplied by your instructor.


Answer Key Test name: chapter 14 1) TRUE 2) TRUE 3) FALSE 4) TRUE 5) TRUE 6) FALSE 7) B 8) C 9) D 10) D 11) A 12) E 13) B 14) C 15) D 16) A 17) B 18) B 19) C 20) A 21) E 22) A 23) C 24) A 25) D 26) B 27) E 28) C 29) C 30) D 31) A 32) B 33) D 34) D 35) E 36) A 37) C


38) D 39) A 40) B 41) C 42) E 43) D 44) E 45) B 46) C 47) B 48) D 49) A 50) B 51) A 52) B 53) C 54) B 55) B 56) A 57) A 58) C 59) E 60) D 61) D 62) B 63) A 64) D 65) C 66) D 67) D 68) D 69) C 70) B 71) D 72) A 73) B 74) A 75) B 76) D 77) A


78) E 79) D 80) D 81) A 82) A 83) A 84) D 85) B 86) B 87) B 88) D 89) A 90) E 91) E 92) B 93) A 94) C 95) B 96) B 97) C 98) A 99) B 100) 101) 102) 103) 104) 105) 106) 107) 108) 109) 110) 111) 112) 113) 114) 115) 116) 117)

C B A B C B A Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay


118) 119) 120)

Essay Essay Essay

Student name:__________ 1697) Without a demand for technology, there is no reason for technological innovation to

occur. ⊚ true ⊚ false

1698) Organizations must consider the feasibility of technological innovations because

technical obstacles represent barriers to progress. ⊚ true ⊚ false

1699) Acquiring new technology at an organizational level is a make-or-buy decision. ⊚ true ⊚ false

1700) Organizational innovation seeks to develop new products and processes, not improve

existing ones. ⊚ true ⊚ false

1701) Becoming world-class means merely striving to improve. ⊚ true ⊚ false

1702) Total organization change involves introducing and sustaining multiple policies,

practices, and procedures across multiple units and levels. ⊚ true ⊚ false


1703) Proactive organizations are those striving to create new opportunities to satisfy

unarticulated needs. ⊚ true ⊚ false

1704) Flexible manufacturing practices such as mass customization, just-in-time, and

concurrent engineering are examples of A) product differentiation. B) process innovations. C) technology audit. D) large batch technologies. E) product innovations.

1705) __________ technologies are still under development, and managers might not want to

invest in them until they have been developed more fully. A) Base B) Emerging C) Key D) Large-batch E) Pacing

1706) The antilock braking system is a desired feature that can provide automobiles a

significant competitive edge. However, it is not used uniformly by every automobile company. Thus, this technology is best grouped under __________ technologies. A) base B) key C) emerging D) large batch E) active


1707) __________ technology is commonplace in the industry and provides little competitive

advantage. A) Base B) Emerging C) Key D) Large batch E) Pacing

1708) Even though __________ technologies have yet to prove their full value, they have the

potential to alter the rules of competition. A) base B) emerging C) key D) large-batch E) pacing

1709) __________ technologies, such as mobile Internet, have proved effective but offer a

strategic advantage because not everyone knows or uses them. A) Base B) Emerging C) Key D) Elevated E) Pacing

1710) __________ is a process by which a product, service, or business model takes root

initially in simple applications and then moves "up market," eventually displacing established competitors. A) Reverse mentoring B) Concentric diversification C) Strategic liquidation D) Disruptive innovation E) Late adopting


1711) __________ is the tendency of managers to miss the significance of disruptive changes

because they are focused on investing in and making incremental improvements to their core profitable businesses. A) The black swan effect B) Perceptual bias C) Survivor's syndrome D) The glass ceiling effect E) Innovator's dilemma

1712) To assist managers in understanding their current technology base, a(n) __________

helps clarify which technologies the organization most depends upon. A) process innovation B) technology audit C) make-or-buy decision D) agile design E) disruptive innovation

1713) An advantage to companies using a technology followership strategy is A) avoiding the costs of leadership. B) gaining first-mover prestige. C) capturing the best market niches. D) immediate advantage and high profits. E) having little or no competition.

1714) __________ is best described as the advantage that comes from offering a unique good or

service for which customers are willing to pay a premium price. A) Equilibrium B) Standardization C) Differentiation D) Liquidity E) Capitalization


1715) The first group to adopt a new technology are __________, who demonstrate a

willingness to take risks. A) the early majority B) laggards C) early adopters D) innovators E) the late majority

1716) Adoption of a new technology by __________ indicates usage now expanding into the

mainstream. A) the early majority B) laggards C) early adopters D) innovators E) the late majority

1717) Laggards are the last to adopt a new technology, as this group is A) enthusiastic and adventurous. B) highly suspicious of innovation and change. C) filled with well-respected opinion leaders. D) thoughtful and deliberate. E) the one that others look to for technological leadership.

1718) __________ is the first consideration in developing a strategy around technological

innovation. A) Organizational suitability B) Market potential C) Social practicality D) Technological feasibility E) Political support


1719) In assessing market receptiveness, executives should typically determine whether the new

technology A) is capable of drawing political support. B) has an immediate and valuable application in the short run. C) can alter the rules of competition in the industry. D) can be patented. E) will violate the company's vision.

1720) An entrepreneur wanted to sell combination washing and drying machines in a tropical

country. To his disappointment, he found that nobody wanted to buy these machines. He realized that the dry climate of the country contributed to his failure. People usually hung their washed clothes out in the sun to dry. The lack of __________ was responsible for the failure of his product. A) market receptiveness B) technological feasibility C) organizational suitability D) economic viability E) capability development

1721) A scientist invented a method of using solar energy to power home appliances. However,

the cost of installing and using the method on a large scale was prohibitive. Hence, his invention was not adopted by his target customers. The lack of __________ was the reason for the failure of his invention. A) organizational suitability B) technological feasibility C) economic viability D) social adaptability E) political suitability


1722) Bashar, an entrepreneur and inventor, developed new software to help retail stores

manage their supply chain effectively. He was able to successfully sell his software to the retail industry. However, certain unscrupulous organizations began producing cheaper versions of the software. This lowered the popularity of the original version. In this case, __________ is affected by the knock-offs. A) organizational suitability B) technological feasibility C) economic viability D) capability development E) social adaptability

1723) Executives in __________ firms give priority to developing and exploiting technological

expertise, and decision makers have bold, intuitive visions of the future. A) defender B) prospector C) analyzer D) follower E) reactor

1724) __________ firms typically have technology champions who articulate competitively

aggressive, first-mover technological strategies. A) Prospector B) Follower C) Defender D) Reactor E) Analyzer


1725) What is a defining characteristic of prospector firms? A) Such firms adopt strategies that focus on deepening their capabilities through

technologies that extend rather than replace their current ones. B) They tend to adopt an early-follower strategy to grab a dominant position more from their strengths in marketing and manufacturing than from technological innovation. C) Executives in such firms tend to be more concerned about the opportunity costs of not taking action than they are about the potential to fail. D) Such firms are risk averse and tend to operate in environments that are stable and predictable. E) They are less innovative than defender firms because they tend to let others demonstrate solid demand in new arenas before responding.

1726) Executives in defender firms are most likely to A) be concerned about the opportunity costs of not taking an action. B) support an outward-looking and opportunistic culture. C) base strategic decisions on careful analysis and experience in the industry setting. D) adopt a first-mover strategy to grab a dominant position in the industry. E) be more innovative than their counterparts in prospector firms.

1727) __________ firms adopt an early-follower strategy to grab a dominant position more

from their strengths in marketing and manufacturing than from technological innovation. A) Entrepreneurial B) First-mover C) Prospector D) Analyzer E) Defender

1728) In considering economic viability, managers must analyze new technologies’ costs versus A) organizational fit. B) technological feasibility. C) benefits. D) external demand. E) staff time.


1729) "Thanks to the patents that we have filed over the past decade, we have been able to

exclusively market our new technologies at premium pricing. And premium pricing has been critical to our success because our technologies have been quite expensive to develop," said Gloria. What is Gloria message about patents and copyrights? A) Piracy and fakery of her company's technologies render patent protection worthless. B) Her company's technology development costs cannot be justified. C) Patents have allowed her company to recoup the costs of their investments in technologies. D) Exclusive marketing requires patent protection. E) Her company has not gained value from new technologies.

1730) In organizations without the skills needed to implement an innovation, even A) certain technologies may have tremendous market applicability. B) promising technological advances may not be feasible. C) internal capabilities to execute their technology strategies must be developed. D) base strategies on core capabilities applies to technology. E) efficiency becomes effective.

1731) When Amazon.com changed the face of e-retailing in the 1990s, traditional brick-and-

mortar bookstores had to adapt quickly. To regain competitiveness, they had to bolster their information technology capabilities, which involved examining A) their technological feasibility. B) market potential. C) their organizational culture. D) stakeholder expectations. E) economic viability.

1732) "I'm in favor of developing technology internally if there is business value to keeping it

proprietary," said Malcolm, CFO of Perez Products, to his product development manager. "However, in this case, I don't see the value. After all, developing the technology internally will probably __________," Malcolm concluded. A) make us dependent on other firms B) not provide a competitive advantage C) make it available to our competitors D) result in high coordination costs E) require additional staff and funding for long periods


1733) An independent research laboratory entered into an agreement with a multinational

agricultural company to develop a new variety of hybrid seeds for cold climates. In return, the agricultural company would fund the research. This method of acquiring new technology is known as A) state funding. B) internal development. C) technology trading. D) licensing. E) contracted development.

1734) Marta has developed and patented a new process for recycling plastic. A number of

companies have expressed an interest in buying her company in order to gain access to the technology. If she sells her company, the buyer will be obtaining the new technology through A) acquisition of the technology owner. B) research partnerships and joint ventures. C) technology trading. D) contracted development. E) internal development.

1735) "Microtech Industries does not want to sell the technology, but Microtech is willing to

allow us to legally use the technology for a fee," said Nadia, a sales professional, "and I would like to use their technology in our proposed project for Aero International." The division manager replied, "OK. I'm fine with that. I will approve expenditure for a(n) __________ fee." A) transfer B) license C) customs D) patent E) development

1736) __________ is an arrangement for jointly developing a particular new technology. A) Offshoring B) Research partnership C) Acquisition of a technology owner D) Internal development E) Corporate espionage


1737) A start-up and an established company have entered into a business agreement. In this

arrangement, the established company will provide capital and other resources and the startup will contribute its technological expertise. This method of acquiring new technology is known as A) offshoring. B) research partnership. C) benchmarking. D) technology trading. E) internal development.

1738) An advantage of technology trading is that it A) helps a firm speed up its learning curve. B) enables a firm to gain control and ownership over desired technology. C) enables a firm to adopt the trial-and-error approach to using technologies. D) helps a firm gain easy access to new technology as all industries willingly share

information. E) is simple to implement.

1739) A disadvantage of acquiring a new technology by purchasing the technology owner is

that A) developing technology becomes time consuming. B) the process requires more staff than internal development. C) it makes the purchasing firm highly dependent on its internal development

capabilities. D) the purchasing company will not own or control the unique technology. E) acquiring the company can be expensive.

1740) __________ is when an organization asks itself about whether to acquire new technology

from an outside source or develop it internally. A) Technology trading B) A make-or-buy decision C) Benchmarking D) Positioning E) Differentiation


1741) A disadvantage of purchasing technology that already is available in products or

processes is that A) it is the most time-consuming way to acquire new technology. B) it is the least cost-effective way to acquire new technology. C) the purchase requires more staff than internal development. D) the coordination and monitoring costs will be high. E) the technology itself will not offer a competitive advantage.

1742) A disadvantage of licensing as a means of acquiring new technology is that A) it involves high monitoring costs. B) the firm does not control or own the unique technology. C) it is less economical than internal development. D) it is the most time-consuming way to develop new technology. E) the firm will need to acquire internal development capabilities.

1743) A disadvantage of joint ventures as a means to acquire new technology is that A) it is the most expensive and time-consuming way to develop new technology. B) it makes a firm solely dependent on its internal development capabilities. C) coordination costs can be high and organizational cultures can clash, limiting the

outcomes. D) purchase of a company can be expensive. E) it fails to establish a new company.

1744) An advantage of purchasing technology already available in products or processes is that A) it is simple to implement and cost-effective. B) the technology is proprietary and provides competitive advantage. C) it speeds up the purchasing firm's learning curve. D) it helps improve the purchasing firm's internal development capabilities. E) the purchasing firm gains control and ownership over the desired technology.


1745) An advantage of internal development as a means of acquiring new technology is that A) it is simple to implement and cost-effective. B) the costs associated with new technology development can be shared by two or more

firms. C) it permits firms to access unique technology for a minimal fee. D) the technology is proprietary, and it provides a competitive edge. E) it does not require firms to maintain a large staff.

1746) Keeping the technology proprietary is accomplished through A) joint venture. B) contracted development. C) technology trading. D) internal development. E) licensing.

1747) Kenn’s business has environmental databases that are readily available and cost-effective,

but his vice president of operations thinks they need to develop a database for a new project. What would you advise them to do to make it the simplest, easiest, and most effective way to have that needed database? A) Patent it. B) Purchase it. C) License it from others. D) Form a joint venture. E) Acquire the owner of the technology.

1748) __________ are companies that excel at solving problems, seeking and finding new

approaches, and sharing new knowledge. A) Clan cultures B) Learning organizations C) Analyzer firms D) Closed-book organizations E) Bureaucratic firms


1749) A responsibility of the chief information officer is A) gaining unauthorized access to proprietary information of competitors. B) finding new ways to produce old products. C) ensuring that employees cannot access information from outside the organization. D) identifying ways that technology can support the company's strategy. E) limiting information exchanged through the company grapevine.

1750) A function of a technical innovator is to A) support an innovation by sponsoring financial and managerial resources. B) promote a new technology throughout the organization. C) develop a new technology. D) secure acceptance for a new idea within the organization. E) impart training for specific interpersonal skills.

1751) A function of a product champion is to A) acquire the status, authority, and resources to sponsor an innovation. B) promote a new technology throughout the organization. C) develop a new technology. D) coordinate the technological efforts of various business units. E) develop the technical skills needed to install and operate the technology.

1752) In an effort to decrease the amount of industrial waste generated during production,

Serena wants her company to use a new machine designed by an employee. She believes the new machine will also bring down the company's costs. She tries to convince her supervisor and higher authorities to provide the resources needed to build and install the machine on a large scale. Serena’s role is that of a(n) A) agile designer. B) technical innovator. C) executive champion. D) product champion. E) gatekeeper.


1753) An executive champion is a person who A) possesses the status, authority, and resources to support an innovation or change. B) has the technical skills needed to install and operate the technology. C) develops a new technology from scratch. D) coordinates the technological efforts of various business units. E) is primarily responsible for securing employee acceptance and support for new ideas.

1754) __________ refer to special temporary project structures established by a company that

are isolated from the rest of the organization and allowed to operate under different rules. A) Skunkworks B) Quality circles C) Development projects D) Research partnerships E) Joint ventures

1755) A __________ is a focused organizational effort to create a new product or process via

technological advances. A) development project B) sociotechnical system C) quality circle D) turnkey project E) contracted development

1756) Which statement is accurate regarding development projects? A) The teams involved in development projects are isolated from suppliers and

customers. B) They are given extensive time and other resources to develop a product. C) They work against the philosophy of continuous improvement. D) The members of a development project pursue different and conflicting goals. E) They feature a cross-functional team that works together on an overall concept.


1757) A logical extension of the sociotechnical philosophy is a(n) A) organizational bureaucracy. B) lean and flat organization. C) mechanistic structure. D) micromanagement approach. E) closed-book management approach.

1758) What quality helps define a world-class organization? A) It merely strives for improvement. B) It applies the best and latest knowledge and ideas. C) It focuses on producing goods at the lowest cost possible. D) It concentrates on competition instead of profits. E) It exemplifies a bureaucratic organizational structure.

1759) An essential characteristic of enduringly great companies is that they A) are solely driven by incremental improvements. B) focus on beating the competition. C) oppose experimentation. D) undergo continuous change. E) are risk averse.

1760) The __________ refers to the belief that things must be either A or B and cannot be both. A) agile design process B) performance gap C) business as usual strategy D) "genius of the and" E) "tyranny of the or"

1761) The __________ refers to the ability to achieve multiple objectives at the same time. A) "tyranny of the or" B) "genius of the and" C) moderating effect D) first mover effect E) agile design concept


1762) __________ is best described as a systemwide application of behavioral science

knowledge to develop, improve, and reinforce the strategies, structures, and processes that lead to organization effectiveness. A) Organization development B) Management myopia C) Development project D) Product innovation E) Micromanagement

1763) Increasing __________ involves improving an organization's ability to respond to

customers, stockholders, governments, employees, and other stakeholders, which results in better-quality products, higher financial returns, and high quality of work life. A) micromanagement B) management myopia C) groupthink D) organizational effectiveness E) organizational bureaucracy

1764) __________ will lead to sustained, superior performance in organizations. A) Limiting the exchange of information within the organization B) Fine-tuning strategies continually based on marketplace changes C) Pursuing strategies that focus on competitors D) Limiting decision-making authority to top management E) Believing that only one goal can be attained at a time

1765) __________ intervention relates to enhancing organization structure and design,

employee involvement, and work design. A) Technostructural B) Strategic C) Tactical D) Human process E) Human resource management


1766) __________ intervention involves attracting good people, setting goals, and appraising

and rewarding performance. A) Strategic B) Technostructural C) Marketing D) Tactical E) Human resource management

1767) __________ intervention involves improving conflict resolution, team building,

communication, and leadership. A) Marketing B) Strategic C) Sociotechnical D) Human process E) Technostructural

1768) "Our new start-up has an innovative product, a new website, and a new name. I'm eager

to talk to potential customers. Why do we have to spend so much time in planning and strategy?" asked Adrian. "Because I want to build a company that is enduringly great," replied the CEO, "and that requires that we have __________, know what they are and what they mean, and live by them, year after year." A) core values B) efficiencies C) bureaucratic structures D) management tactics E) performance gaps


1769) "We've had to dramatically cut our overhead expenses and lay off several support staff,"

said A.J., Managing Partner of Graden and Reed LLC. "However, I am counting upon each of us to creatively deliver even better legal services to our clients, although we've picked up extra work that was previously done by our support staff." A.J. is counting upon his team to subscribe to the belief known as the __________, the ability to achieve multiple objectives at the same time. A) "tyranny of the or" B) "genius of the and" C) "purpose of the because" D) "desire of the want" E) "reason for the why"

1770) Managers who must implement organizational change should keep in mind that staff are

more likely to resist if A) it benefits the organization. B) it is unexpected and takes them by surprise. C) they receive the same notice and information as management. D) the timing of the change is neutral. E) they are invited to help implement it.

1771) The factory manager at Raleigh Manufacturing told his shift supervisor, "Gustavo, our

target reject rate is 1.5 percent or less. Your shift usually does a lot better than that, but your reject rate has been averaging 3 percent for the past month. That's unacceptable." The factory manager has identified a(n) A) loophole. B) performance gap. C) innovative culture. D) force field analysis. E) disruptive innovation.


1772) Motivating people to change often requires three basic stages. One of these is

__________, or strengthening the new behaviors that support the change. A) moving B) unfreezing C) freezing D) refreezing E) enforcing

1773) In return for cooperating with the management in the implementation of a major

organizational change, Pinegrove Industries provided an annual bonus to all its employees. This method for managing resistance to change exemplified A) education and communication. B) facilitation and support. C) incentives and rewards. D) manipulation and cooptation. E) explicit and implicit coercion.

1774) __________ is a method to manage resistance that managers sometimes resort to when

they must lay down the law. A) Negotiation and rewards B) Punishment and threats C) Manipulation and cooptation D) Education and communication E) Facilitation and support

1775) When people are resistant to a change because of adjustment problems, the most effective

way to manage the resistance is through A) manipulation and cooptation. B) training and other resources. C) explicit and implicit coercion. D) centralization and micromanagement. E) negotiation and rewards.


1776) The CEO of the Branson Group is implementing changes to the company that will be

difficult for most employees. The best approach to managing resistance to change would be to __________ the staff about the upcoming changes, before they occur, and to __________ the nature of the change and its logic. A) learn from; deny B) deny information to; downplay C) educate; communicate D) avoid communicating to; not mention E) freeze; refreeze

1777) "Levi, your group members are going to resist that change, regardless of the content of

the change. That's human nature. The old ways of doing things are comfortable and easy, so your staff will not want to try something new. That's called __________," said Levi’s manager and mentor. A) performance gap B) inertia C) freezing D) peer pressure E) refreezing

1778) During the __________ stage, management realizes that its current practices are no

longer appropriate and the company must break out of its present mold by doing things differently. A) unfreezing B) moving C) refreezing D) molding E) force-field analysis

1779) A __________ occurs when performance is good but someone realizes that it could be

better. A) B) C) D) E)

force-field analysis refreezing performance gap freezing co-optation


1780) The managers that lead change most effectively establish a sense of A) empathy. B) urgency. C) complacency. D) competition. E) cooperation.

1781) Leading change requires organizations to A) tolerate some complacency. B) focus on top-down communication. C) instill punishments for resistance. D) create a guiding coalition. E) work around key stakeholders.

1782) During the unfreezing stage of the three-stage model to manage resistance against

change, management A) strengthens the new behaviors that support the change. B) creates new behaviors that are as rigid as the old ones. C) establishes a vision of where the company is heading. D) realizes that the past ways of thinking, feeling, and doing things are obsolete. E) implements control systems that support the change.

1783) __________ is best described as anticipating and preparing for an uncertain future. A) Reverse brainstorming B) Reverse mentoring C) Proactive change D) Disruptive innovation E) Reactive change


1784) In the context of companies trying different strategic postures to compete in an uncertain

future, __________ are those who take the current industry structure and its future evolution as givens and choose where to compete. A) shapers B) category captains C) adapters D) gatekeepers E) analyzers

1785) "Selatan, you're in a rut. You must expand your horizons and your knowledge," said his

mentor and former manager. He is advising Selatan to continuously __________ in order to explore, discover, and take action, repeating this cycle as he progresses in his career, making opportunity and advantage renewable. A) learn B) stand firm C) shape D) switch course E) freeze

1786) "That's beautiful, Katelyn! Your technological breakthrough will radically change the

structure of our industry, and the future competitive landscape will be of our own design. What a great position we will be in! Thanks to your accomplishments, our company will truly be one of the __________," exclaimed the CEO. A) adapters B) motivators C) shapers D) defenders E) gatekeepers

1787) Needs that customers have not yet experienced are A) satisfied. B) unimportant. C) unarticulated. D) distinct. E) expected.


1788) Responding to pressure after a problem has arisen is known as A) reactive change. B) proactive change. C) leading. D) refreezing. E) adapting.

1789) Companies trying to change the structure of an industry are A) adapting. B) resisting. C) shaping. D) refreezing. E) preserving.

1790) Needs that customers acknowledge and try to satisfy are A) unarticulated. B) articulated. C) unknown. D) new markets. E) required.

1791) For a company, the ultimate form of proactive change is creating new markets or A) serving articulated needs. B) serving as a benchmarker. C) doing what seems doable. D) transforming an industry. E) working to catch up.


1792) "We have rapidly grown into a top-tier provider of environmental services worldwide,

and our clients expect us to employ top-tier talent and use top-tier technology tools," said Avery, Chief Technology Officer. "Therefore, over the next two years, our company is going to invest in top-tier technology tools. But we first have to understand what we currently use in our worldwide offices—that is, determine which technologies the company most depends upon." The first step that Avery is describing is a(n) A) benchmarking study. B) gap analysis. C) SWOT analysis. D) technology audit. E) environmental scanning effort.

1793) Actively leading organizational change begins with __________ and ends with

__________. A) involving key stakeholders; forcing the change B) communicating a vision; empowering broad-based action C) forcing the change; consolidating gains D) identifying crisis and opportunities; developing a vision E) establishing a sense of urgency; anchoring new approaches in company culture

1794) Oliver told his boss, "My top programmer, Neela, has developed an app that's going to

make her career around here. But it's going to take some serious money to promote it and sell it to one of the big players. I'm convinced that Neela has the skills needed to polish the software but not the managerial skills needed to secure funding." In the development of new technology, Neela’s role is as A) product champion. B) executive champion. C) category captain. D) technical innovator. E) chief information officer.


1795) Marley thought, "Shane has a great idea, and I know that he has the skills needed to

develop the underlying technology. I'll be going out on a limb promoting his idea—risking my position and reputation—but not only is that my job as his manager, it's also something that I believe in." In the development of new technology, Marley’s role is A) product champion. B) executive champion. C) venture capitalist. D) technical innovator. E) category captain.

1796) "Mr. Harrison, thank you for your time. One of my staff has done some promising lab

work on a new application with significant commercial value. I'd like to schedule a presentation and demo for you later this week. If you like the work, I'd like to present to you the financial resources needed to further develop the application, and ask for your help in getting this before your executive peers or the board for consideration." In the development of new technology, Mr. Harrison’s role is as A) product champion. B) executive champion. C) category captain. D) technical innovator. E) technical advisor.

1797) The CEO of Midwestern Farm Machinery told her vice presidents, "We're a huge

company, and we are talking about a massive change in the way we do business. A lot of long-time employees will resist these changes, so we must help them recognize that their old ways are obsolete." How would you advise them to effectively accomplish unfreezing among the staff? A) Tell employees that they will be punished severely if they do not switch to the new ways from the obsolete old ways. B) Discuss the negative consequences of the old ways by comparing the organization's performance to that of its competitors. C) Pin the blame for the organization's poor performance directly and entirely on frontline workers. D) Show employees the new way to perform their job without consulting them. E) Induce fear among employees by bombarding them with facts related to the organization's performance.


1798) Winston manages a large business unit in a global corporation. Recently, the business

unit has experienced recruiting failures. Winston needs to change the long-standing recruiting process, although many staff will resist any changes, including Blaise, a tremendous talent but a "loose cannon" who often challenges new ideas. What covert tactic might Winston successfully employ to change his recruiting program and gain the staff's acceptance of the changes? A) Design the new program over a weekend, and announce it on Monday, to be effective immediately. B) Use "new blood" to design and implement the change, not the key stakeholders who are affected by the change. C) Withhold communication about the nature of the change or its logic. D) Use co-optation by asking Blaise to serve a significant role in the change process. E) Announce that incentives (promotions and bonuses) will be withheld until all resistance to change ceases.

1799) Esme, Western Division manager, knows that the upcoming year's budget and planning

process will be a challenge. For the first time in ten years, the company is changing its budgeting, salary administration, and marketing approach, and a major reorganization will be involved. She expects the managers and staff to resist the planned changes. How might Esme positively influence her managers to accept and publicly support the changes? A) Involve her managers in design and implementation of the budget and planning process. B) Centralize authority and limit empowerment during the changes. C) Lay down the law, reminding her managers of who is boss. D) Remind managers that she will not have patience or understanding with staff affected by the changes. E) Withhold information from managers regarding the nature and logic associated with the changes.


1800) "I agree with your recommendation to purchase the new instrument, even though we

could develop and manufacture it internally. A purchase will be most __________, as long as you recognize that others will have it as well; in other words, it will not offer a __________," said Mosely, operations manager. A) cost-effective; time advantage B) time-consuming; price advantage C) time-consuming; time advantage D) cost-effective; competitive advantage E) time-consuming; competitive advantage

1801) "We have the lab facilities, the know-how, and the time to implement this new

technology through __________. We can then patent it and keep it proprietary, even though it will take additional staff and funding," said the lab manager to the general manager. A) internal development B) licensing C) contracted development D) franchising E) research partnership

1802) "We have the organization, the manpower, and the marketing to deliver the technology to

our customers; however, we don't own the patent upon which the technology will be based," argued Calvin. "Newton, the patent owner, is too small to commercialize any technologies. Significant effort will be required to convert the patent into a viable technology. Buying the patent or Newton would be too expensive. I recommend that, instead, we form a __________ to jointly develop the technology." A) coalition B) co-optation C) franchise D) purchase agreement E) research partnership


1803) Describe the four types of technologies categorized according to their competitive value.

Include an example of each type.

1804) Discuss the three broad types of organizations with regard to technology adoption.

1805) Why must economic viability be considered when making technology decisions?

1806) Explain at least three technology acquisition alternatives.

1807) Explain the three key roles that people may play within an organization to acquire or

develop technology.


1808) What are the benefits of a development project?

1809) In the context of the book Built to Last, explain the "tyranny of the or" and the "genius of

the and."

1810) Discuss any three reasons for resistance to change.

1811) Describe any two effective approaches to managing resistance and enlisting cooperation.

1812) Describe the different strategies used by companies to compete in an uncertain future.


1813) Describe the essential characteristics of learning leaders. Name a famous individual or

someone you know who exemplifies this description and explain why.

1814) Compare and contrast the strategies of low cost and differentiation. How do these

strategies apply to technology innovations?

1815) What questions should managers ask when choosing how to acquire technology?

1816) Describe what is meant by becoming world-class.

1817) Discuss the four basic types of organizational development.


1818) Assume are a manager and you want to obtain a technology to supplement your

company’s existing technologies. However, the desired technology is now owned by a small, privately held company.


Answer Key Test name: chapter 15 1) TRUE 2) TRUE 3) TRUE 4) FALSE 5) FALSE 6) TRUE 7) TRUE 8) B 9) B 10) B 11) A 12) E 13) C 14) D 15) E 16) B 17) A 18) C 19) D 20) A 21) B 22) B 23) B 24) A 25) C 26) C 27) B 28) A 29) C 30) C 31) D 32) C 33) C 34) B 35) A 36) E 37) E


38) A 39) B 40) B 41) B 42) A 43) E 44) B 45) E 46) B 47) C 48) A 49) D 50) D 51) B 52) B 53) D 54) C 55) B 56) D 57) A 58) A 59) A 60) E 61) B 62) B 63) D 64) E 65) B 66) A 67) D 68) B 69) A 70) E 71) D 72) A 73) B 74) B 75) B 76) D 77) C


78) B 79) B 80) C 81) B 82) A 83) C 84) B 85) D 86) D 87) C 88) C 89) A 90) C 91) C 92) A 93) C 94) B 95) D 96) D 97) E 98) D 99) A 100) 101) 102) 103) 104) 105) 106) 107) 108) 109) 110) 111) 112) 113) 114) 115) 116) 117)

B B D A D A E Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay Essay


118) 119) 120) 121) 122)

Essay Essay Essay Essay Essay


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