TEST BANK For Management, Sixteenth Edition. Stephen P. Robbins Mary A. Coulter Lori K. Long

Test Bank

by Mike Casey

Management Sixteenth Edition

Stephen P. Robbins Mary A. Coulter Lori K. Long

Management, 16e (Robbins) Chapter 1 Managers and You in the Workplace 1) In today's workplace, ________.

A) women are more likely than men to be promoted into management B) many employees perform work that in the past was considered managerial activities C) women tend to be more effective supervisors than men D) most organizations have eliminated the title of manager Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Concept 2) Because this is her first job, Melanie was unclear about what managers actually do.

Fortunately her training materials explained that a manager's job focuses on ________.

A) performing clerical duties B) personal achievement C) helping others accomplish their work goals D) supervising groups rather than individual employees Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Application 3) An individual who works with and through other people by coordinating their work activities in order to accomplish organizational goals is ________.

A) an assembly line worker B) a laborer C) a manager D) a salesperson Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Concept

1 Copyright © 2025 Pearson Education, Inc.

4) An organizational structure that does away with traditional management roles and distributes decision making throughout the organization by empowering teams to manage themselves is called a ________.

A) frontline management system B) holacracy C) management pyramid D) bureaucratic structure Answer: B Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Application 5) Frontline managers are also known as ________.

A) regional managers B) team leaders C) division managers D) store executives Answer: B Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Application 6) First-line managers are typically those who ________.

A) are also considered middle managers B) are involved with producing the organization's products or providing its service C) are at the top of the organizational chart D) are the first persons new hires meet Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Analytical 7) Supervisor is another name for ________.

A) store manager B) middle manager C) first-line manager D) top manager Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Concept

2 Copyright © 2025 Pearson Education, Inc.

8) A ________ is an example of a first line manager.

A) division manager B) store executive C) regional manager D) shift manager Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Concept 9) Kelly, a production supervisor, is responsible for ten employees who assemble components into a finished product. Kelly is a ________.

A) top manager B) nonmanagerial employee C) middle manager D) first-line manager Answer: D Diff: 1 AACSB: Analytical thinking; Application of knowledge Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Application 10) Managers with titles such as regional manager or division manager are ________.

A) first-line managers B) top managers C) production managers D) middle managers Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Concept 11) Ben, a production plant manager, reports to Dan, a regional manager. Ben and Dan are ________.

A) top managers B) middle managers C) supervisors D) first-line managers Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Application

3 Copyright © 2025 Pearson Education, Inc.

12) ________ are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization.

A) Middle managers B) Top managers C) Production managers D) Research managers Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Concept 13) Tom is responsible for project managers who supervise others who perform manual work.

He reports to a vice president on another continent. Tom is a ________.

A) first-line manager B) middle manager C) top manager D) non-managerial employee Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Application 14) ________ have titles such as executive vice president, chief operating officer, and chief executive officer.

A) Supervisors B) Middle managers C) First-line managers D) Top managers Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Concept 15) Kenneth is a vice president of operations. His position would be regarded as a ________.

A) top manager B) supervisor C) middle manager D) first-line manager Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Application 4 Copyright © 2025 Pearson Education, Inc.

16) Blue Fin and ChrisCraft, two boat manufacturers, have merged. Top managers now must decide how the work will be divided and who will do what work in the merged firm. The premerger firms, and the merged firm, are each examples of ________.

A) strategic partnerships B) coalitions C) organizations D) affinity groups Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Application 17) Many traditional nonmanagerial jobs now include managerial activities, and many organizations no longer have formal managers.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Concept 18) A manager must coordinate and oversee the work of other people so that organizational goals can be accomplished.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Concept 19) A manager's job is all about personal achievement.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Concept 20) In traditionally structured organizations, managers can be classified as first-line managers, middle managers, or top managers.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Concept

5 Copyright © 2025 Pearson Education, Inc.

21) Middle managers are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Concept 22) Explain briefly how the definition of a manager has changed over time.

Answer: Managers used to be defined as the organizational members who told others what to do and how to do it. In the past, it was easy to differentiate managers from nonmanagerial employees. Non-managerial employees were organizational members who worked directly on a job or task and had no one reporting to them. Managers were those who supervised other employees.

Today, the changing nature of organizations and work has blurred the distinction between managers and nonmanagerial employees. Many traditional nonmanagerial jobs now include managerial activities. Most employees are multi-skilled and are being cross trained. Within a single shift, an employee can be a team leader, equipment operator, maintenance technician, quality inspector, or improvement planner.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Concept 23) Describe and provide examples of first-line, middle, and top managers.

Answer: a. First-line managers are the lowest level of management and manage the work of nonmanagerial individuals who are directly involved with the production or creation of the organization's products or servicing its customers. First-line managers are often called supervisors or even shift managers, district managers, department managers, or office managers. b. Middle managers are found between the lowest and top levels of the organization. These managers manage the work of first-line managers and may have titles such as department head, project leader, store manager, or division manager. c. Top managers are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. These individuals typically have titles such as executive vice president, president, managing director, chief operating officer, or chief executive officer.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 1.1: Describe who managers are and where they work.

Classification: Concept

6 Copyright © 2025 Pearson Education, Inc.

24) Which of the following is NOT one of the three reasons managers are important?

A) Organizations need their managerial skills and abilities.

B) Managers are critical to getting things done.

C) Managers provide a sense of accomplishment for the firm.

D) Managers make a difference in an organization's performance.

Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.2: Explain why managers are important to organizations.

Classification: Concept 25) The Gallup Organization has determined through polling thousands of managers and employees that the single most important determinant of employee success is ________.

A) compensation B) the employee's gender and overall attitude C) the employee's interaction with their manager D) the employee's ability to compartmentalize their work and family Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.2: Explain why managers are important to organizations.

Classification: Concept 26) A great manager can inspire employees both professionally and personally.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.2: Explain why managers are important to organizations.

Classification: Concept 27) Managers play an important role in dealing with various challenges being faced by organizations today.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.2: Explain why managers are important to organizations.

Classification: Concept 28) The abilities and actions of managers have an indirect and limited impact on an organization's performance.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.2: Explain why managers are important to organizations.

Classification: Concept

7 Copyright © 2025 Pearson Education, Inc.

29) Identify and discuss three reasons managers are still important even in the changing organizational structures in use today.

Answer: a. The first reason why managers are important is because organizations need their managerial skills and abilities more than ever in uncertain, complex, and chaotic times. As organizations deal with today's challenges–changing workforce dynamics, the worldwide economic climate, changing technology, ever-increasing globalization, and so forth–managers play an important role in identifying critical issues and crafting responses. b. Another reason why managers are important to organizations is because they're critical to getting things done. They create and coordinate the workplace environment and work systems so that others can perform those tasks. Or, if work isn't getting done or isn't getting done as it should be, they're the ones who find out why and get things back on track. And these managers are key players in leading the company into the future. c. Finally, managers do matter to organizations. The single most important variable in employee productivity and loyalty isn't pay or benefits or workplace environment–it's the quality of the relationship between employees and their direct supervisors. The way a company manages and engages its people can significantly affect its financial performance. Leadership is the single largest influence on employee engagement. Managerial ability is important in creating organizational value.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 1.2: Explain why managers are important to organizations.

Classification: Concept 30) Ng figured out a way to increase his factory's output while using the same number of workers. This is an example of ________.

A) increased efficiency B) increased effectiveness C) better time management D) planning Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 31) Technology makes it easier to stay focused on activities that help the organization achieve its goals. This is an example of ________.

A) efficiency B) effectiveness C) time management D) planning Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Critical thinking 8 Copyright © 2025 Pearson Education, Inc.

32) Andrew is reviewing next week's orders, scheduling orders to machines, and assigning employees to run those machines. Andrew is engaged in ________.

A) planning B) organizing C) leading D) controlling Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Application 33) Donald's ability to complete activities efficiently and effectively with and through other people is known as ________.

A) management B) leadership C) entrepreneurship D) delegation Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Application 34) ________ involves ensuring that work activities are completed efficiently and effectively by the people responsible for doing them.

A) Leading B) Managing C) Planning D) Organizing Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 35) Which one of the following is an example of an efficient manufacturing technique?

A) Reducing the amount of scrap created in the process of making a product.

B) Increasing the amount of time to manufacture products.

C) Increasing product reject rates.

D) Meeting customers' rigorous demands.

Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Application 9 Copyright © 2025 Pearson Education, Inc.

36) Wasting resources is considered to be an example of ________.

A) reduced effectiveness B) unsustainable activities C) inefficiency D) managerial slack Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 37) An automobile manufacturer increased the total number of cars produced while keeping the production costs the same. The manufacturer increased its ________.

A) equity B) efficiency C) effectiveness D) effort Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Application 38) Ellen's ability to produce the same amount of product with fewer personnel is a reflection of her ________.

A) effectiveness B) organizing skills C) leadership D) efficiency Answer: D Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Application 39) Effectiveness is associated with ________.

A) reducing inventory B) decreasing production time C) doing the right things D) doing things right Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept

10 Copyright © 2025 Pearson Education, Inc.

40) Whereas ________ is concerned with the means of getting things done, ________ is concerned with the ends, or attainment of organizational goals.

A) effectiveness; efficiency B) efficiency; effectiveness C) effort; efficiency D) efficiency; experience Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 41) The fact that Eileen achieves her departmental goals is an indication of her ________ as a manager.

A) leadership B) effectiveness C) efficiency D) attention to detail Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Application 42) If your team quickly painted the wall but discovered afterward it was the wrong wall, your team would be ________.

A) efficient but ineffective B) efficient and effective C) effective but inefficient D) neither effective nor efficient Answer: A Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Application 43) If Fiona accomplishes her projects with high-quality results, but takes more time than other managers in the process, as a manager she is ________.

A) efficient, but ineffective B) a leader, but not a top manager C) project-oriented, but not effective D) effective, but inefficient Answer: D Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Application 11 Copyright © 2025 Pearson Education, Inc.

44) More than a hundred years ago, Henri Fayol proposed that managers performed five functions. They were ________.

A) planning, organizing, directing, evaluating, and controlling B) organizing, directing, coordinating, evaluating, and controlling C) planning, organizing, directing, coordinating, and controlling D) planning, organizing, commanding, coordinating, and controlling Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 45) Today, the basic management functions include ________.

A) planning, organizing, commanding, and coordinating B) planning, organizing, coordinating, and controlling C) planning, organizing, directing, and controlling D) planning, organizing, leading, and controlling Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 46) Establishing strategies for achieving organizational goals is a part of the ________ function.

A) leading B) coordinating C) planning D) organizing Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 47) When Gavin decides the number of units his employees should produce, he is performing which of the following management functions?

A) Controlling B) Leading C) Planning D) Organizing Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Application

12 Copyright © 2025 Pearson Education, Inc.

48) Organizing includes ________.

A) setting organizational goals B) hiring organizational members C) motivating organizational members D) determining who does what tasks Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 49) The human resources manager is meeting with the production manager to write job descriptions and to decide how to group jobs for a new production line. These two are engaged in ________.

A) planning B) organizing C) leading D) controlling Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Application 50) Two of Brent's subordinates have not been getting along, a situation that has now interfered with their productivity. When Brent meets with them to resolve the conflict, he is engaged in ________.

A) planning B) organizing C) leading D) controlling Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Application 51) Motivating subordinates is primarily associated with the management function of ________.

A) planning B) organizing C) leading D) directing Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 13 Copyright © 2025 Pearson Education, Inc.

52) The ________ roles involve collecting, receiving, and disseminating information, according to Mintzberg's managerial roles.

A) interpersonal B) informational C) technical D) decisional Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 53) When Fred tells the employees that he is sure they can fulfill the schedule because they are good and skilled employees, he is performing which of the following management functions?

A) Controlling B) Leading C) Negotiating D) Delegating Answer: B Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Application 54) When Brandi is sharing with her team members the information she received at this morning's production meeting, she is performing the Mintzberg role of ________.

A) liaison B) monitor C) entrepreneur D) disseminator Answer: D Diff: 3 AACSB: Application of knowledge; Analytical thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Application 55) The process of monitoring, comparing, and correcting is called ________.

A) controlling B) planning C) leading D) evaluating Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 14 Copyright © 2025 Pearson Education, Inc.

56) When Joe checks the amount of output that the employees have completed and the number of units that have been rejected, which of the following management functions is being performed?

A) Controlling B) Leading C) Organizing D) Monitoring Answer: A Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Application 57) ________ developed a categorization scheme for defining what managers do, consisting of ten different but highly interrelated roles.

A) Henri Fayol B) Abraham Maslow C) Henry Mintzberg D) Peter Drucker Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 58) According to Mintzberg's managerial roles, the ________ roles are ones that involve people and other duties that are ceremonial and symbolic in nature.

A) informational B) interpersonal C) technical D) decisional Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 59) When the mayor officiates at the ribbon-cutting ceremony for the new bridge, the mayor is performing one of Mintzberg's ________ roles.

A) interpersonal B) informational C) decisional D) organizing Answer: A Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Application 15 Copyright © 2025 Pearson Education, Inc.

60) The ________ role (as Mintzberg defined it) is more important for lower-level managers than it is for either middle- or top-level managers.

A) leader B) figurehead C) negotiator D) disseminator Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 61) Mark is vice president of finance. At his level of management, he is more likely to use the role of ________ than ________.

A) leader; disseminator B) spokesperson; negotiator C) figurehead; liaison D) disseminator; leader Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Critical thinking 62) Connie has an idea for a new product she would like to produce and market. Mintzberg would consider the activities necessary to form and launch her company to be part of the ________ role.

A) figurehead B) resource allocator C) negotiator D) entrepreneur Answer: D Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Application 63) Effectiveness refers to getting the most output from the least amount of input.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept

16 Copyright © 2025 Pearson Education, Inc.

64) Efficiency is described as "doing things right."

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 65) Determining who reports to whom is part of the planning function of management.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 66) Directing and motivating are part of the organizing function of management.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 67) The four contemporary functions of management are planning, organizing, commanding, and controlling.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 68) As part of Dave's controlling function of management, he must monitor and evaluate performance.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 69) According to Mintzberg, the leader role is more important for higher-level managers because they have responsibility for more of the organization.

Answer: FALSE Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept

17 Copyright © 2025 Pearson Education, Inc.

70) Figurehead, leader, and liaison are all informational managerial roles according to Mintzberg.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 71) Disturbance handler is one of Mintzberg's interpersonal roles.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 72) Briefly discuss the difference between efficiency and effectiveness.

Answer: a. Efficiency refers to getting the most output from the least amount of inputs. Because managers deal with scarce inputs-including resources such as people, money, and equipment-they are concerned with the efficient use of resources. It's often referred to as "doing things right"-that is, not wasting resources. For instance, efficient manufacturing techniques can be implemented by doing things such as cutting inventory levels, decreasing the amount of time to manufacture products, and lowering product reject rates. b. Effectiveness is often described as "doing the right things"-that is, doing those work activities that will help the organization reach its goals. For instance, goals can include meeting customers' rigorous demands, executing world-class manufacturing strategies, and making employee jobs easier and safer. Through various work initiatives, these goals can be pursued and achieved.

Whereas efficiency is concerned with the means of getting things done, effectiveness is concerned with the ends, or attainment of organizational goals.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept

18 Copyright © 2025 Pearson Education, Inc.

73) List and explain the four basic functions of management.

Answer: The four basic functions of management are: (a) Planning, (b) Organizing, (c) Leading, and (d) Controlling. a. When managers engage in planning, they set goals, establish strategies for achieving those goals, and develop plans to integrate and coordinate activities. b. When managers organize, they determine what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. c. When managers engage in leading, they motivate subordinates, help resolve work group conflicts, influence individuals or teams as they work, select the most effective communication channel, or deal in any way with employee behavior issues. d. When managers control, they ensure that goals are being met and that work is being done as it should be. They monitor and evaluate performance. They compare actual performance with the set goals. If those goals aren't being achieved, it's the manager's job to get work back on track.

This process of monitoring, comparing, and correcting is the controlling function.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 74) List the ten managerial roles developed by Mintzberg.

Answer: Mintzberg described ten managerial roles grouped around interpersonal relationships, the transfer of information, and decision making.

A. The interpersonal roles are ones that involve people (subordinates and persons outside the organization) and other duties that are ceremonial and symbolic in nature. The three interpersonal roles include: a. figurehead b. leader c. liaison B. The informational roles involve collecting, receiving, and disseminating information. The three informational roles include: a. monitor b. disseminator c. spokesperson C. Finally, the decisional roles entail making decisions or choices. The four decisional roles include: a. entrepreneur b. disturbance handler c. resource allocator d. negotiator Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 1.3: List the functions and roles of managers.

Classification: Concept 19 Copyright © 2025 Pearson Education, Inc.

75) One examples of a new technology or technological driven process that is NOT changing the way managers work is ________.

A) digital transformation B) artificial intelligence C) gig economy D) digital gaming Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 1.4: Describe the factors that are reshaping and redefining the manager's job.

Classification: Concept 76) The process of rethinking how to use technology, people, and processes to accomplish the organization's work is known as ________.

A) artificial intelligence B) machine learning C) the gig economy D) digital transformation Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 1.4: Describe the factors that are reshaping and redefining the manager's job.

Classification: Concept 77) Jaun designs websites for his side hustle. His design business is part of ________.

A) employee well-being B) the gig economy C) artificial intelligence D) the digital transformation Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 1.4: Describe the factors that are reshaping and redefining the manager's job.

Classification: Application 78) Firm XYZ is using a software system to monitor and evaluate employee performance. This is an application of ________.

A) employee well-being B) the gig economy C) artificial intelligence D) the digital transformation Answer: C Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 1.4: Describe the factors that are reshaping and redefining the manager's job.

Classification: Concept 20 Copyright © 2025 Pearson Education, Inc.

79) Today's manager must deal with a host of new challenges that include ________.

A) how to manage remote work B) greater political uncertainty C) staffing and employee issues D) increasing production efficiency Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 1.4: Describe the factors that are reshaping and redefining the manager's job.

Classification: Application 80) One of the most difficult aspects of the increasing use of technology in the workplace has been to make employees feel good about artificial intelligence.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.4: Describe the factors that are reshaping and redefining the manager's job.

Classification: Critical thinking 81) The COVID-19 pandemic increased the speed of transformation to remote work.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.4: Describe the factors that are reshaping and redefining the manager's job.

Classification: Concept 82) Firms that compete in non-technology markets, such as retailers, need not concern themselves with artificial intelligence applications.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.4: Describe the factors that are reshaping and redefining the manager's job.

Classification: Concept 83) Workers of today like remote work and hybrid work since it makes it easier to balance life and work.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.4: Describe the factors that are reshaping and redefining the manager's job.

Classification: Concept

21 Copyright © 2025 Pearson Education, Inc.

84) Many experts believe the gig economy is a passing fad.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.4: Describe the factors that are reshaping and redefining the manager's job.

Classification: Critical thinking 85) Now and into the future, managers will need to focus more on employee well-being.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.4: Describe the factors that are reshaping and redefining the manager's job.

Classification: Concept 86) Briefly explain how the COVID-19 pandemic changed the way we work.

Answer: One of the most significant outcomes of the COVID-19 pandemic has been the growth of remote and hybrid working. Remote work is the practice of accomplishing work tasks away from the company's worksite; hybrid work is the practice of working remotely part of the time and on-site part of the time. Although remote and hybrid working options have existed for a long time, not all organizations embraced them. During the global lockdown at the start of the pandemic, however, many organizations quickly adapted to remote work by necessity. But as the need to work remotely diminished, workers continued to demand remote work options because they found the flexibility improved their overall work-life balance.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 1.4: Describe the factors that are reshaping and redefining the manager's job.

Classification: Concept 87) What is the gig economy?

Answer: Technology has also impacted companies' use of temporary or contract workers.

Contract workers are not company employees; rather, they work for a company on an as-needed basis. The evolution of apps such as Door Dash and Uber have transformed the contract labor market, allowing workers to generate income via a side hustle or create a full-time job by bringing together different gig work arrangements. This evolution is often referred to as the gig economy because it describes a new labor market of workers doing freelance type work.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 1.4: Describe the factors that are reshaping and redefining the manager's job.

Classification: Concept

22 Copyright © 2025 Pearson Education, Inc.

88) Why is it important for managers to focus on employee well-being?

Answer: A Gallup study in 2022 found that 70 percent of workers reported their boss as a source of stress that affected their engagement with work. This makes the manager's role is important in reducing employees' stress since there is strong evidence that employees that are less stressed are more productive.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 1.4: Describe the factors that are reshaping and redefining the manager's job.

Classification: Synthesis 89) Technical skills include ________.

A) experience gained by experiments that are used in performing managerial tasks B) job-specific knowledge needed to proficiently perform work tasks C) the ability to work well with individuals and groups D) skills managers use to think and to conceptualize about abstract and complex situations Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Concept 90) One of Calvin's employees is having problems with a production machine, so Calvin helps him troubleshoot the problem. Calvin is using his ________ skills.

A) negotiator B) technical C) interpersonal D) conceptual Answer: B Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Application 91) ________ skills tend to be more important for first-line managers since they manage employees who produce the organization's product or service the organization's customers.

A) Human B) Technical C) Conceptual D) Empirical Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Concept 23 Copyright © 2025 Pearson Education, Inc.

92) When Paula assists the employees who produce the product she is using her ________.

A) conceptual skills B) disseminator skills C) technical skills D) interpersonal skills Answer: C Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Application 93) Understanding machine operating instructions would be considered a(n) ________ skill for a production manager.

A) interpersonal B) technical C) conceptual D) empirical Answer: B Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Application 94) ________ skills involve the ability to work well with other people, both individually and in a group.

A) Technical B) Assessment C) Planning D) Interpersonal Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Concept

24 Copyright © 2025 Pearson Education, Inc.

95) When Michael meets with the human resources manager to discuss a complaint filed by one of the employees in the production department, he requires which of the following managerial skills?

A) Conceptual skills B) Interpersonal skills C) Negotiator skills D) Disturbance handler skills Answer: B Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Application 96) When Sam Walton visited his Walmart stores, he would often lead the employees in cheers and give inspiring speeches. Sam knew the importance of ________ skills.

A) decisional B) technical C) interpersonal D) conceptual Answer: C Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Application 97) Ralph's search for new technologies that can be used in the production processes of his plant is an example of which type of management skill?

A) Conceptual B) Communication C) Effectiveness D) Monitor Answer: A Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Application

25 Copyright © 2025 Pearson Education, Inc.

98) Which one of the following is true concerning the three managerial skills?

A) Technical skills tend to be most important for middle-level managers.

B) Conceptual skills are most important for lower-level managers.

C) Interpersonal skills remain equally important to all levels of management.

D) Technical skills increase, and conceptual skills decrease in importance, as a manager climbs the organizational chart.

Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Concept 99) Because Sterling is a shift manager, ________.

A) his technical skills are of the utmost priority B) his conceptual skills are of the utmost priority C) his interpersonal skills are not important D) he need not have any empirical skills Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Application 100) Terry has recently been promoted from shift manager to department manager. As a result, ________.

A) her empirical skills are going to be most important B) the importance of her technical skills is reduced C) her conceptual skills are going to take the priority D) the importance of her interpersonal skills is reduced Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Application

26 Copyright © 2025 Pearson Education, Inc.

101) The CEO of MindWerks must understand the industry in which his business competes, the future of that industry, and the competition. This requires strong ________ skills.

A) technical B) interpersonal C) conceptual D) controlling Answer: C Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Application 102) Bethany is the president of her organization. Therefore, ________.

A) she should be very sound in her technical skills B) she can manage with limited financial skills C) conceptual skills are the most important skills that Bethany requires D) her interpersonal skills are not important Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Application 103) Managers with good ________ skills know how to communicate, motivate and lead to get the best out of their people.

A) interpersonal B) conceptual C) technical D) empirical Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Concept

27 Copyright © 2025 Pearson Education, Inc.

104) Conceptual skills involve ________.

A) managing employees who use tools to produce the organization's products B) communicating with customers C) thinking about abstract and complex situations D) inspiring enthusiasm and trust among employees Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Concept 105) Conceptual skills are less important to top managers.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Concept 106) According to Robert L. Katz, managers need to have technical, interpersonal, and conceptual skills.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Concept 107) Technical skills become less important as a manager moves into higher levels of management.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Concept

28 Copyright © 2025 Pearson Education, Inc.

108) Describe the three main types of managerial skills identified by Robert Katz. Which skills are most important to each level of management, and why?

Answer: Robert L. Katz proposed that managers need three critical skills in managing: technical, interpersonal, and conceptual. a. Technical skills are the job-specific knowledge and techniques needed to proficiently perform work tasks. These skills tend to be more important for first-line managers because they typically manage employees who use tools and techniques to produce the organization's products or service the organization's customers. Often, employees with excellent technical skills get promoted to first-line manager. b. Human skills involve the ability to work well with other people, both individually and in a group. Because all managers deal with people, these skills are equally important to all levels of management. Managers with good interpersonal skills get the best out of their people. They know how to communicate, motivate, lead, and inspire enthusiasm and trust. c. Conceptual skills are the skills managers use to think and to conceptualize about abstract and complex situations. Using these skills, managers see the organization as a whole, understand the relationships among various subunits, and visualize how the organization fits into its broader environment. These skills are most important to top managers.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 1.5: Identify career options in management and skills that lead to career success.

Classification: Concept 109) Management is needed in all types and sizes of organizations, at all organizational levels and in all organizational work areas, and in all organizations, no matter where they are located.

This principle is known as the ________.

A) impartiality of management B) neutrality of management C) universality of management D) reality of management Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.6: Explain the value of studying management.

Classification: Concept 110) Which of the following is NOT one of the ways you use to deal with organizational politics?

A) Be visible.

B) Make yourself appear indispensable.

C) Support your boss.

D) Ignore all office politics.

Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 1.6: Explain the value of studying management.

Classification: Concept 29 Copyright © 2025 Pearson Education, Inc.

111) What makes an organization political?

A) Operating with limited resources.

B) Receiving recognition.

C) Motivating workers in chaotic situations.

D) Performing duties that are more clerical than managerial.

Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.6: Explain the value of studying management.

Classification: Concept 112) The universality of management means that ________.

A) all managers in all organizations perform the four management functions B) all managers in all organizations perform the same quantity of managerial functions C) all managers in all organizations perform managerial functions in similar ways D) any manager can work in any organization and perform any management function Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.6: Explain the value of studying management.

Classification: Concept 113) Effectively dealing with organizational politics helps you ________.

A) develop powerful allies B) get promoted despite qualifications C) find ways to work less D) get better performance evaluations Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.6: Explain the value of studying management.

Classification: Concept 114) Management is universally needed in all organizations.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 1.6: Explain the value of studying management.

Classification: Concept 115) Research shows that the quality of management has little impact on the success of the business.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 1.6: Explain the value of studying management.

Classification: Concept 30 Copyright © 2025 Pearson Education, Inc.

116) Why does the reality of work make studying management valuable?

Answer: We will all either manage others or be managed. For those who plan to be managers, an understanding of management forms the foundation upon which to build your management knowledge and skills. For those of you who don't see yourself managing, you're still likely to have to work with managers. Experience suggests that you can gain a great deal of insight into the way your boss (and fellow employees) behave and how organizations function by studying management.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 1.6: Explain the value of studying management.

Classification: Concept 117) What is universality of management? Why is it important?

Answer: Management is needed in all types and sizes of organizations, at all organizational levels and in all organizational work areas, and in all organizations, no matter where they're located. This is known as the universality of management. In all organizations, managers must plan, organize, lead, and control. Management is universally needed in all organizations. So it is necessary to find ways to improve the way organizations are managed. Organizations that are well-managed develop a loyal customer base, grow, and prosper, even during challenging times.

Those that are poorly managed find themselves losing customers and revenues. By studying management and its universality, an individual will be able to recognize poor management and work to get it corrected.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 1.6: Explain the value of studying management.

Classification: Concept

31 Copyright © 2025 Pearson Education, Inc.

Management, 16e (Robbins) Chapter 2 The Evolution of Management 1) Adam's Smith's book The Wealth of Nations argued that production would increase substantially if business would use ________ to produce output.

A) division of labor B) more workers C) modern machinery D) lower cost inputs Answer: A Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 2.1: Describe some examples of early management practices.

Classification: Concept 2) Where were most goods produced prior to the Industrial Revolution?

A) On farms B) In other countries C) In factories D) At home Answer: D Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.1: Describe some examples of early management practices.

Classification: Concept 3) When was human power replaced with machine power in Europe?

A) In the early 17th century B) In the early 20th century C) In the late 18th century D) After the Civil War Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.1: Describe some examples of early management practices.

Classification: Concept 4) What is the term used to describe breaking down jobs into narrow repetitive tasks?

A) Management separation B) Division of labor C) Job tasking D) The classical approach Answer: B Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.1: Describe some examples of early management practices.

Classification: Concept 1 Copyright © 2025 Pearson Education, Inc.

5) Which of the following individuals is credited with introducing the concept of job specialization?

A) Adam Smith B) David Ricardo C) The Pope of the Roman Catholic Church D) Henry Ford Answer: A Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 2.1: Describe some examples of early management practices.

Classification: Concept 6) Which of the following is NOT a future trend mentioned in this chapter that is likely to shape future management practices?

A) Remote work B) Diversity C) Job specialization D) Sustainability Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.1: Describe some examples of early management practices.

Classification: Concept 7) Randy works in a Ford manufacturing plant installing steering columns on cars as the cars are moved past his workstation. His colleague Rashonda installs wiring harnesses on the new cars at her workstation. Which of the following is the innovation that created this system?

A) Management B) Division of labor C) Workflow planning D) Capital intensity Answer: B Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 2.1: Describe some examples of early management practices.

Classification: Concept

2 Copyright © 2025 Pearson Education, Inc.

8) Which of the following reasons is NOT a reason it is possible to produce more output using division of labor?

A) Division of labor saves time since workers do not have to change tasks.

B) Doing the same task increases a worker's skill and dexterity in performing that task.

C) It leads to lower labor costs since the workers are not highly skilled.

D) It leads to labor-saving inventions and machinery.

Answer: C Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 2.1: Describe some examples of early management practices.

Classification: Concept 9) Which of the following statements about the history of management is the most accurate?

A) Management history is about the past and we should live in the future.

B) Current management practices evolved mainly from the mistakes of others.

C) You can better put current practices into perspective when you understand where they came from.

D) Today's business environment is so complex that there is very little we can learn from past management techniques.

Answer: C Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 2.1: Describe some examples of early management practices.

Classification: Concept 10) Possibly the most important pre-twentieth-century influence on management was the Industrial Revolution.

Answer: TRUE Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.1: Describe some examples of early management practices.

Classification: Concept 11) The division of labor is good for companies but has little impact on society overall.

Answer: FALSE Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.1: Describe some examples of early management practices.

Classification: Concept 12) The Industrial Revolution was the period of time in which machine power replaced human power.

Answer: TRUE Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.1: Describe some examples of early management practices.

Classification: Concept 3 Copyright © 2025 Pearson Education, Inc.

13) Formalized management skills and techniques were a necessity for large scale production that occurred in the steel and oil industries.

Answer: TRUE Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 2.1: Describe some examples of early management practices.

Classification: Concept 14) Large scale production operations required managers to forecast product demand and ensure supplies arrived in a timely manner.

Answer: TRUE Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 2.1: Describe some examples of early management practices.

Classification: Concept 15) Prior to the Industrial Revolution most products were produced in small factories.

Answer: FALSE Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 2.1: Describe some examples of early management practices.

Classification: Concept 16) How did the Industrial Revolution transform manufacturing?

Answer: Before the Industrial Revolution, an item, such as a blanket, was made by one person, typically at home. The worker would shear wool from their sheep, twist the wool into yarn, dye the yarn, weave the blanket manually on a home loom, and then sell the finished product to merchants who traveled to farms buying merchandise that then would be sold at regional fairs or markets. The introduction of machine power, combined with division of labor, made it possible to have large, efficient factories using power-driven equipment. Output increased dramatically as a result.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 2.1: Describe some examples of early management practices.

Classification: Concept 17) Why is it important to study past management practices?

Answer: Current management practices evolved from past management practices. Past management practices evolved over time into what we see today. You can better put current practices into perspective when you understand where they came from. In addition, a review of recent history will help us create new management techniques to deal with current issues and/or trends such as remote work, sustainability, and diversity.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 2.1: Describe some examples of early management practices.

Classification: Concept 4 Copyright © 2025 Pearson Education, Inc.

18) The ________ includes early management studies that emphasized rational decision-making and focused on making organizations more efficient.

A) classical approach B) personal approach C) traditional view D) quantitative Answer: A Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 19) Frederick W. Taylor is credited with being the founder of ________.

A) the acceptance of view of authority B) classical management C) scientific management D) general administrative theory Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 20) What did Frederick W. Taylor use as a motivator to persuade an employee at Midvale Steel to adjust his work behaviors to comply with Taylor's requests to change his work habits?

A) Health insurance benefits B) More money per day C) The threat of being fired D) Shorter workdays Answer: B Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 21) Frank and Lillian Gilbreth in their time and motion studies devised a classification scheme to label 17 basic hand motions (such as search, grasp, and hold) that they called ________.

A) Hawthorne movements B) Taylorisms C) therbligs D) intuitives Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 5 Copyright © 2025 Pearson Education, Inc.

22) Frederick W. Taylor's Principles of Scientific Management described his theory of scientific management as the use of scientific methods to define the ________.

A) one best way for a job to be done B) worker's contribution to the production process C) study of how best to motivate employees D) best way to improve production processes Answer: A Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 23) Mikala is a drywall contractor, and work is booming. She currently runs five crews but could easily keep two more crews busy full time, but she cannot find more skilled workers. However, she has one crew that is about 30% faster than the other crews. Mikala decided to go and watch that crew to see if she could see why they were so much faster and hopefully spread those techniques to the other crews. What type of management theory best fits her method?

A) Classical theory B) Scientific management C) Behavioral management D) Traditional view Answer: B Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 24) Which of the following management pioneers is credited with having designated management as a universal set of functions–specifically planning, organizing, commanding, coordinating, and controlling?

A) Frederick Taylor B) Frank Gilbreth C) Henri Fayol D) Max Weber Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept

6 Copyright © 2025 Pearson Education, Inc.

25) Which of the following management duties is NOT one of the functions of management identified by Henri Fayol?

A) Planning B) Controlling C) Organizing D) Budgeting Answer: D Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 26) Max Weber identified what he determined to be the ideal organizational system characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships. He dubbed this system a(n) ________.

A) therblig B) bureaucracy C) esprit de corp D) scalar chain Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 27) Which early management pioneer described 14 principles of management–fundamental or universal truths–that could be applied to all organizational situations and could be taught in schools and universities?

A) Frederick Taylor B) Frank Gilbreth C) Henri Fayol D) Max Weber Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept

7 Copyright © 2025 Pearson Education, Inc.

28) Which management pioneer's work became the prototype model for most of today's large organizations?

A) Frederick Taylor B) Frank Gilbreth C) Henri Fayol D) Max Weber Answer: D Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 29) One of today's criticisms of Max Weber's bureaucratic organizational structure is that ________.

A) it hinders individual creativity B) it takes too many employees to implement C) it is rife with inefficiencies D) decisions are often made too quickly Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 30) ________ were a group of writers who looked at the subject of management by focusing on the entire organization.

A) Classical theorists B) Scientific management researchers C) Behavioral management theorists D) General administrative theorists Answer: D Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 31) Bureaucracy is similar to ________ since it also emphasizes rationality, predictability, impersonality, technical competence, and authoritarianism.

A) classical theory B) scientific management C) behavioral management D) the traditional view Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 8 Copyright © 2025 Pearson Education, Inc.

32) General administrative theorists looked at the subject of management by focusing on the entire organization.

Answer: TRUE Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 33) Two major theories compose the classical approach: scientific management and general administrative theory.

Answer: TRUE Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 34) Frederick Taylor devised a classification scheme to label 17 basic hand motions (such as search, grasp, hold) that he called therbligs.

Answer: FALSE Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 35) These first studies of management, often called the classical approach, emphasized behavioral theory as a reason for organizational inefficiency.

Answer: FALSE Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 36) Frank Gilbreth was a lawyer prior to giving up his career to focus on scientific management.

Answer: FALSE Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 37) Henri Fayol is credited with designating management as a universal set of functions– specifically planning, organizing, commanding, coordinating, and controlling.

Answer: TRUE Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 9 Copyright © 2025 Pearson Education, Inc.

38) How did the Gilbreths' work history contribute to their work on scientific management?

Answer: A construction contractor by trade, Frank Gilbreth gave up that career in 1912 to study scientific management after hearing Taylor speak at a professional meeting. Along with his wife, Lillian, a psychologist, he studied work arrangements to eliminate wasteful hand-and-body motions. The Gilbreths also experimented with the design and use of the proper tools and equipment for optimizing work performance. Their work histories focused their studies on trades that they already knew well.

Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept 39) List and briefly describe Henri Fayol's 14 principles of management.

Answer: 1. Division of work: Specialization increases output by making employees more efficient.

2. Authority: Managers must be able to give orders, and authority gives them this right.

3. Discipline: Employees must obey and respect the rules that govern the organization.

4. Unity of command: Every employee should receive orders from only one superior.

5. Unity of direction: The organization should have a single plan of action to guide managers and workers.

6. Subordination of individual interests to the general interest: The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole.

7. Remuneration: Workers must be paid a fair wage for their services.

8. Centralization: The degree to which subordinates are involved in decision making.

9. Scalar chain: The line of authority from top management to the lowest ranks.

10. Order: People and materials should be in the right place at the right time.

11. Equity: Managers should be kind and fair to their subordinates.

12. Stability of tenure of personnel: Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies.

13. Initiative: Employees allowed to originate and carry out plans will exert high levels of effort.

14. Esprit de corps: Promoting team spirit will build harmony and unity within the organization.

Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 2.2: Explain the various theories of the classical approach to management.

Classification: Concept

10 Copyright © 2025 Pearson Education, Inc.

40) Which of the following individuals is NOT one of the five most prominent advocates of the social-person approach to management?

A) Mary Parker Follet B) Chester Barnard C) Henri Fayol D) Robert Owen Answer: C Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept 41) Which of the following fields of management emerged from the social-person approaches to management?

A) Organizational behavior B) Operations management C) Business strategy D) Supply chain management Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept 42) Which of the following reforms is NOT one that Robert Owen championed?

A) Child labor laws B) Regulated work hours C) Company-furnished childcare D) Public education Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept

11 Copyright © 2025 Pearson Education, Inc.

43) Louis Brandeis was an early advocate of what is known today as ________.

A) the efficient production model B) bounded rationality decision-making C) the shareholder wealth maximization perspective D) a stakeholders' view of business Answer: D Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept 44) Which of the following management pioneers believed that business had a responsibility to advance social goals?

A) Lillian Gilbreth B) Louis Brandeis C) Max Weber D) Henri Fayol Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept 45) Hugo Münsterberg is known as the creator of ________.

A) industrial psychology B) human resource management C) the stakeholders' view of business D) organizational behavior Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept

12 Copyright © 2025 Pearson Education, Inc.

46) Which of the following management pioneers suggested the use of psychological tests to improve employee selection?

A) Frederick Winslow Taylor B) Max Weber C) Hugo Münsterberg D) Mary Parker Follett Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept 47) According to ________ a manager's job was to harmonize and coordinate group efforts.

A) Chester Barnard B) Max Weber C) Hugo Münsterberg D) Mary Parker Follett Answer: D Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept 48) Which of the following management pioneer's ideas bridged the classical and social-person approaches?

A) Chester Barnard B) Max Weber C) Hugo Münsterberg D) Mary Parker Follett Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept

13 Copyright © 2025 Pearson Education, Inc.

49) Chester Barnard offered a contrasting position on authority, arguing that authority comes from below. This position is known as the ________.

A) utopian perspective B) traditional view of authority C) acceptance view of authority D) stakeholders' view of authority Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept 50) LaQuan supervises 25 employees in his current role. Sometimes he is forced to reduce an employee's hours or give them unfavorable shifts if they disobey his directives. Which of the following viewpoints most closely aligns with LaQuan's actions?

A) Scientific management B) Traditional view of authority C) Acceptance view of authority D) Stakeholders' view of authority Answer: B Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept 51) Members of the ________ uniformly believed in the importance of employee satisfaction–a satisfied worker was believed to be a productive worker.

A) scientific management group B) acceptance view of authority movement C) human relations movement D) general administrative theory group Answer: C Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept

14 Copyright © 2025 Pearson Education, Inc.

52) As early as 1825, Robert Owen argued for regulated hours of work for all, child labor laws, public education, company-furnished meals at work, and business involvement in community projects.

Answer: TRUE Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept 53) Mary Parker Follett believed that managers and workers should view themselves as partners– as part of a common group.

Answer: TRUE Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept 54) Abraham Maslow, a humanistic psychologist, proposed a theoretical hierarchy of three needs: physiological, safety, and social, esteem.

Answer: FALSE Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept 55) Chester Barnard believed that authority should come from the top down.

Answer: FALSE Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept 56) Douglas McGregor is best known for his formulation of two sets of assumptions about human nature-Theory X and Theory Y. Answer: TRUE Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept

15 Copyright © 2025 Pearson Education, Inc.

57) Briefly describe Douglas McGregor's Theory X and Theory Y. Answer: McGregor's Theory X presents an essentially negative view of people. It assumes that they have little ambition, dislike work, want to avoid responsibility, and need to be closely directed to work effectively. On the other hand, Theory Y offers a positive view. It assumes that people can exercise self-direction, accept responsibility, and consider work to be as natural as rest or play.

Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept 58) What was the basic theme of Dale Carnegie's book How to Win Friends and Influence People?

Answer: Carnegie said that the way to success resided in (1) making others feel important through a sincere appreciation of their efforts; (2) making a good first impression; (3) winning people to your way of thinking by letting others do the talking, being sympathetic, and "never telling a man he is wrong"; and (4) changing people by praising good traits and giving the offender the opportunity to save face.

Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.3: Discuss the development and uses of the social-person approaches to management.

Classification: Concept 59) The quantitative approach is also known as ________.

A) scientific management B) management science C) operations management D) strategic management Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept 60) The quantitative approach evolved from mathematical and statistical solutions developed for ________.

A) nuclear weapons development in the 1940s B) logistics operations for large firms C) early supercomputers used to solve complex problems D) military problems during World War II Answer: D Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept 16 Copyright © 2025 Pearson Education, Inc.

61) Which of the following quality management experts helped improve Japanese quality management after initially being ignored by U.S. firms?

A) Karen Jehn B) W. Edwards Deming and Joseph M. Juran C) Frank Gilbreth D) Chester Barnard Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept 62) Why did quality experts W. Edward Deming and Joseph M. Juran work with Japanese manufacturers before applying their expertise to U.S. firms?

A) U.S. manufacturers were not initially interested in the techniques.

B) Japanese manufacturers were willing to pay more money.

C) U.S. manufacturers already had high quality and were more efficient.

D) Japan's government gave them citizenship to work with Japanese firms.

Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept 63) ________ is a management philosophy devoted to continual improvement and responding to customer needs and expectations.

A) Customer-focused management B) Quantitative management C) Total quality management D) Scientific management Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept 64) Which of the following is NOT one of the focuses of total quality management (TQM)?

A) Intense focus on the customer B) Empowerment of employees C) Process focus D) Focused on increasing stock price Answer: D Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept 17 Copyright © 2025 Pearson Education, Inc.

65) In TQM, the term ________ includes anyone who interacts with the organization's product or services, internally or externally.

A) shareholder B) customer C) stakeholder D) client Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept 66) For TQM to work effectively companies must be able to ________.

A) accurately measure every critical variable in the organization's operations B) reward employees for continuous improvement contributions C) satisfice when necessary to save costs D) identify the impact on profitability when changes are made Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept 67) TQM is a ________ approach to management.

A) qualitative B) quantitative C) profit maximization D) bureaucratic Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept 68) When did total quality management spread to the United States and other Western nations?

A) Immediately after WWII B) 1950s C) 1980s and 1990s D) 2000s and 2010s Answer: C Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept

18 Copyright © 2025 Pearson Education, Inc.

69) TQM is about continuous improvement and ________.

A) responding to customer needs and expectations B) ensuring that the products have the lowest price C) focusing on maximizing shareholder wealth D) the introduction of innovative new products Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept 70) Why did U.S. firms eventually embrace quality management techniques?

A) The profits of U.S. firms began to be eroded by strong foreign competition.

B) The U.S. government mandated that U.S. firms adopt these techniques to save energy.

C) U.S. consumers demanded firms adopt these techniques to save the environment.

D) The Japanese firms using quality management techniques began beating U.S. firms in quality comparisons.

Answer: D Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept 71) Quality management is a commitment to never being satisfied. "Very good" is not good enough.

Answer: TRUE Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept 72) TQM focuses solely on improving the product quality of manufacturing operations.

Answer: FALSE Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept 73) W. Edward Deming was one of the creators of quality management.

Answer: TRUE Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept

19 Copyright © 2025 Pearson Education, Inc.

74) Total quality management involves applying statistics, optimization models, information models, computer simulations, and other quantitative techniques to management activities.

Answer: TRUE Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept 75) TQM focuses on the use of behavioral techniques designed to motivate consumers to spend more money.

Answer: FALSE Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept 76) Joseph M. Juran was one of the early pioneers of quality management.

Answer: TRUE Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept 77) What does the quantitative approach do?

Answer: The quantitative approach involves applying statistics, optimization models, information models, computer simulations, and other quantitative techniques to management activities. Linear programming, for instance, is a technique that managers use to improve resource allocation decisions; work scheduling can be more efficient as a result of critical-path scheduling analysis; and the economic order quantity model helps managers determine optimal inventory levels. Each of these is an example of quantitative techniques being applied to improve managerial decision making. Another area where quantitative techniques are used frequently is in total quality management.

Diff: 1 AACSB: Written and oral communication Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept

20 Copyright © 2025 Pearson Education, Inc.

78) What are the six components of TQM? Answer: The six components are: 1) Intense focus on the customer 2) Concern for continual improvement 3) Process focused 4) Improvement in the quality of everything the organization does 5) Accurate measurement 6) Empowerment of employees Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 2.4: Describe the quantitative approach to management.

Classification: Concept 79) A(n) ________ is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole.

A) system B) organization C) environment D) bureaucracy Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.5: Explain the systems and contingency approaches to management.

Classification: Concept 80) A(n) ________ recognizes there is a dynamic relationship between them and their environment.

A) open system B) closed system C) bureaucracy D) stakeholder group Answer: A Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.5: Explain the systems and contingency approaches to management.

Classification: Concept 81) Which of the following is NOT one of the four most popular contingency variables?

A) Organization size B) Individual differences C) Level of bureaucracy D) Environmental uncertainty Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.5: Explain the systems and contingency approaches to management.

Classification: Concept 21 Copyright © 2025 Pearson Education, Inc.

82) The ________ is a management approach that recognizes organizations as different, which means they face different situations and require different ways of managing.

A) systems approach B) contingency approach C) scientific management technique D) environmental uncertainty approach Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.5: Explain the systems and contingency approaches to management.

Classification: Concept 83) Early management theorists largely assumed that ________.

A) managers differed in personality and approach B) each organization was unique and managers needed to change based on their current situation C) management principles could be applied universally D) all organizations could be molded into bureaucracies which would make them more efficient Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.5: Explain the systems and contingency approaches to management.

Classification: Concept 84) A(n) ________ is not influenced by its external environment.

A) open system B) closed system C) bureaucracy D) stakeholder group Answer: B Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.5: Explain the systems and contingency approaches to management.

Classification: Concept 85) Jermaine is a manager at a large firm, and he keeps tabs on the competition to ensure that they are not losing market share over a new product or innovation that a competitor has introduced. He views the organization as a(n) ________.

A) open system B) closed system C) bureaucracy D) stakeholder group Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.5: Explain the systems and contingency approaches to management.

Classification: Concept 22 Copyright © 2025 Pearson Education, Inc.

86) The contingency approach is sometimes known as the ________.

A) quantitative method B) systems approach C) situational approach D) scientific approach Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.5: Explain the systems and contingency approaches to management.

Classification: Concept 87) Which of the following activities is NOT part of the transformation process in an open systems approach?

A) Employees' work activities B) Technology and operations methods C) Management activities D) Information gathering activities Answer: D Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.5: Explain the systems and contingency approaches to management.

Classification: Concept 88) In an open system, the production process turns inputs into finished products or services without contact from the other business units.

Answer: FALSE Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.5: Explain the systems and contingency approaches to management.

Classification: Concept 89) The systems approach implies that decisions and actions in one organizational area will affect other areas.

Answer: TRUE Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.5: Explain the systems and contingency approaches to management.

Classification: Concept 90) The degree of uncertainty caused by environmental changes influences the management process.

Answer: TRUE Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.5: Explain the systems and contingency approaches to management.

Classification: Concept 23 Copyright © 2025 Pearson Education, Inc.

91) As an organization's size increases, it becomes more bureaucratic and coordination problems decrease.

Answer: FALSE Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.5: Explain the systems and contingency approaches to management.

Classification: Concept 92) Management research suggests that the division of labor and job specialization works in almost all organizations at every level.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 2.5: Explain the systems and contingency approaches to management.

Classification: Concept 93) Routine technologies require organizational structures, leadership styles, and control systems that differ from those required by customized or nonroutine technologies.

Answer: TRUE Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.5: Explain the systems and contingency approaches to management.

Classification: Concept 94) Explain how the systems approach affects management.

Answer: Organizations are viewed as complex systems composed of many components, including individuals, groups, structure, goals, status, and authority. What this means is that as managers coordinate work activities in the various parts of the organization, they ensure that all these parts are working together so the organization's goals can be achieved. The systems approach recognizes that, no matter how efficient the production department, the marketing group must anticipate changes in customer tastes and work with product development in creating products customers want–or the organization's overall performance will suffer. Decisions in one area will affect other areas of the organization so coordination and communication are critical.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 2.5: Explain the systems and contingency approaches to management.

Classification: Concept

24 Copyright © 2025 Pearson Education, Inc.

95) When did the concept of "sustainability" expand to examine a company's broader impact on society, including the economic and social outcomes of business practices?

A) During the Cold War B) In the 1990s C) In the 2010s D) Immediately following WWII Answer: B Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 2.6: Identify important recent evolutions in the field of management.

Classification: Concept 96) Many companies are using ________, which measure and quantify a company's commitment to environmental sustainability, social responsibility, and good corporate governance.

A) GAAP accounting B) ESG reporting frameworks C) Federal Reserve standards D) AI metrics Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.6: Identify important recent evolutions in the field of management.

Classification: Concept 97) Which of the following is NOT one of the three recent evolutions in the field of management listed in this chapter?

A) The new industrial revolution B) Globalization C) The systems approach D) Sustainability Answer: C Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.6: Identify important recent evolutions in the field of management.

Classification: Concept

25 Copyright © 2025 Pearson Education, Inc.

98) Kera owns a small U.S. manufacturing firm and recently discovered some of her customers were buying products from a firm located in Asia. Which of the following trends is affecting Kera's business?

A) Globalization B) Sustainability C) ESG D) Artificial Intelligence Answer: A Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 2.6: Identify important recent evolutions in the field of management.

Classification: Concept 99) The sustainability movement is a ________ trend.

A) local B) U.S. focused C) worldwide D) statewide Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.6: Identify important recent evolutions in the field of management.

Classification: Concept 100) According to a recent report, what percentage of the U.S. workforce is now considered to be gig workers?

A) 22% B) 29% C) 34% D) 41% Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 2.6: Identify important recent evolutions in the field of management.

Classification: Concept 101) People who work together but are geographically dispersed are known as ________.

A) ESG performers B) new industrial employees C) gig workers D) virtual teams Answer: D Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.6: Identify important recent evolutions in the field of management.

Classification: Concept 26 Copyright © 2025 Pearson Education, Inc.

102) Which of the following management pioneers espoused over 100 years ago that firms should recognize a business's responsibility to the communities where it operates and society in general?

A) Louis Brandeis B) Max Weber C) Frederick Winslow Taylor D) Lillian Gilbreth Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.6: Identify important recent evolutions in the field of management.

Classification: Concept 103) In what decade did companies begin to realize the potential of foreign markets?

A) 1950s B) 1960s C) 1970s D) 1980s Answer: B Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.6: Identify important recent evolutions in the field of management.

Classification: Concept 104) Which of the following is NOT considered to be gig economy employment?

A) Freelance work B) Independent work C) Temporary work D) Contract work Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.6: Identify important recent evolutions in the field of management.

Classification: Concept 105) Sustainability practices initially focused on conserving natural resources by minimizing their use, reducing waste, and acting to protect the environment.

Answer: TRUE Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 2.6: Identify important recent evolutions in the field of management.

Classification: Concept

27 Copyright © 2025 Pearson Education, Inc.

106) The sustainability movement is a worldwide trend, but it has very little impact on the goals of businesses.

Answer: FALSE Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 2.6: Identify important recent evolutions in the field of management.

Classification: Concept 107) Sustainability practices and ESG reporting recognize a business's responsibility to the communities where it operates and society in general.

Answer: TRUE Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.6: Identify important recent evolutions in the field of management.

Classification: Concept 108) Management began to break down national borders and aggressively pursue global strategies in the 1990s.

Answer: FALSE Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.6: Identify important recent evolutions in the field of management.

Classification: Concept 109) Perhaps the most profound impact that technology has had on business firms has been its ability to make established businesses obsolete.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 2.6: Identify important recent evolutions in the field of management.

Classification: Concept 110) How do the jobs of today differ from the jobs of 40 to 60 years ago?

Answer: Forty years ago your counterpart could get a good job in a factory with a high school education or less. The demands of those jobs required little skill. Today's factories are highly computerized and require employees with the skills to operate complex equipment. Technology has made computerized manufacturing a mainstay of today's "factory." Managing today's skilled technicians is different than managing a group of unskilled, minimum-wage workers.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 2.6: Identify important recent evolutions in the field of management.

Classification: Concept

28 Copyright © 2025 Pearson Education, Inc.

111) What is the "triple bottom line"?

Answer: The triple bottom line refers to today's sustainability practices that force firms to focus on planet, people, and profits.

Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 2.6: Identify important recent evolutions in the field of management.

Classification: Concept

29 Copyright © 2025 Pearson Education, Inc.

Management, 16e (Robbins) Chapter 3 Making Decisions 1) A problem can best be described as ________.

A) a change from the past B) something bad that has happened C) a difference between current conditions and some desired state D) a loss of something of value Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Concept 2) Which of the following statements is true concerning problem identification?

A) Problems are generally obvious.

B) A symptom and a problem are one and the same.

C) Generally, what is a problem for one manager is a problem for all other managers.

D) Effectively identifying problems is not easy.

Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Concept 3) Sales of the high-end units have declined. The owners want Arnold, the CEO, to increase revenues to previous levels. His first action should be to ________.

A) identify previous sales levels B) determine why sales are off C) compare costs for three new models under development D) immediately begin production on the lowest cost model Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Application

1 Copyright © 2025 Pearson Education, Inc.

4) Ridership on the city's public transportation buses has fallen for three weeks in a row. This is ________.

A) a problem B) a symptom C) neither a problem nor a symptom D) a condition, but we need more information to determine whether it is a problem or a symptom Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Application 5) After identifying a problem, the next step in the decision-making process is ________.

A) identifying decision criteria B) allocating weights to decision criteria C) analyzing alternatives D) developing alternatives Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Concept 6) To determine the ________, a manager must determine what is relevant or important to resolving a problem.

A) bounded rationality of a decision B) escalation of commitment C) cost of implementation D) decision criteria Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Concept 7) Belinda wants to introduce a new model to the product line. Three models are being developed. Belinda can choose only one. She has decided to focus on target market size, production costs, and net profits. These are Belinda's ________.

A) alternatives B) criterion weights C) decision criteria D) problems Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Application 2 Copyright © 2025 Pearson Education, Inc.

8) Amanda, a single parent, is looking for a new job. Considering that she has two school-aged children, she is particularly keen on finding an employer who can provide her with alternative work arrangements such as flexible work hours and telecommuting. In terms of the decisionmaking process, these represent Amanda's ________.

A) decision criteria B) problems C) alternatives D) heuristics Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Application 9) Max is planning to go away to college next year and is currently trying to figure out to which colleges he should apply. He would like to major in English Literature at an accredited liberal arts college, but is also looking for a university that offers financial aid. In terms of the decisionmaking process, these represent Max's ________.

A) problems B) alternatives C) decision criteria D) heuristics Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Application 10) After identifying the decision criteria that are important or relevant to resolving a problem, the next step in the decision-making process is ________.

A) allocating weights to the criteria B) analyzing the alternatives to solving the problem C) reducing the number of criteria through the process of elimination D) implementing the alternative Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Concept

3 Copyright © 2025 Pearson Education, Inc.

11) Rashad must select a new supplier for lighting fixtures for his company's mobile homes. He has decided quality is more important than price but price is more important than lead times.

Rashad will use these priorities to ________.

A) analyze alternatives B) set his decision criteria C) allocate weights to the criteria D) develop alternatives Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Application 12) Creativity is most essential in which of the following steps of the decision-making process?

A) Analyzing alternatives B) Allocating weights to the decision criteria C) Developing alternatives D) Identifying decision criteria Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Concept 13) Carlotta is searching the Internet for sources of Himalayan salt to make bath salts. Carlotta is at the ________ step in the decision-making process.

A) identify the problem B) identify decision criteria C) allocate weights D) develop alternatives Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Application

4 Copyright © 2025 Pearson Education, Inc.

14) When the overhead cranes crashed into each other for the third time, the supervisor formed a team to look into ways to avoid future crashes. After a brainstorming session, the team settled on three ideas, any of which might work. The team has completed which step in the decisionmaking process?

A) Develop alternatives B) Analyze alternatives C) Select an alternative D) Implement an alternative Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Application 15) Carlotta has identified several possible sources for Himalayan salt to make her bath salts.

Now she is comparing their prices, quality, and delivery times. At what step is she in the decision-making process?

A) Develop alternatives B) Analyze alternatives C) Select an alternative D) Implement the alternative Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Application 16) Carlotta discovered that the supplier with the highest quality also had the longest lead time.

The supplier with the best lead time had the highest price. To help Carlotta make her decision, she should ________.

A) order a small quantity from each supplier for comparison B) rely on customer reviews to guide her decision C) multiply her ratings for each criteria by the weight for the criteria then sum the scores D) check with the Better Business Bureau for customer complaints Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Application

5 Copyright © 2025 Pearson Education, Inc.

17) After Abby listened to the weather report this morning before work, she drove her car and carried an umbrella instead of riding her motorcycle. Whether she realizes it or not, Abby ________.

A) analyzed criteria B) implemented a decision C) assigned weights to criteria D) evaluated a decision Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Application 18) In the decision-making process, while ________, the decision maker puts the decision into action by conveying it to those affected by it and getting their commitment to it.

A) selecting an alternative B) evaluating a decision's effectiveness C) implementing an alternative D) analyzing alternatives Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Concept 19) Which of the following is important in effectively implementing the chosen alternative in the decision-making process?

A) Evaluating each alternative by using the established criteria.

B) Being creative while implementing the alternatives.

C) Allowing those impacted by the outcome to participate in the process.

D) Ignoring criticism concerning your chosen alternative.

Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Concept

6 Copyright © 2025 Pearson Education, Inc.

20) Before actually putting the decision into action, the decision-maker may find it prudent to ________.

A) develop the method of evaluating whether the decision is a good one B) notify upper management that change is coming so they won't be blindsided C) alert external stakeholders that the problem has been solved D) check to make sure the conditions that existed at the time of the decision still exist, and make sure the decision is still the best one Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Concept 21) The final step in the decision-making process is to ________.

A) determine the criteria for the next decision B) analyze the process of allocating weights to the decision criteria C) evaluate the outcome of the decision D) implement the chosen alternative Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Concept 22) The team implemented one of the ideas to avoid crane crashes. It is important for the team to evaluate the results because ________.

A) the team was not sure their idea would work B) the team wants to impress the plant manager C) results may vary from expectations D) another crane crash could cost the team their jobs Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Application 23) The decision-making process begins by identifying decision criteria.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Concept

7 Copyright © 2025 Pearson Education, Inc.

24) A decision criterion defines what is important or relevant to resolving a problem.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Concept 25) In the decision-making process, after allocating weights to the decision criteria, the decision maker lists viable alternatives that could resolve the problem.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Concept 26) Once the alternatives to solving a problem have been identified, the next step in the decisionmaking process is selecting one of these alternatives.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Concept 27) Implementing an alternative refers to the process of choosing the best alternative.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Concept

8 Copyright © 2025 Pearson Education, Inc.

28) List and discuss the eight steps in the decision-making process.

Answer: 1. Identify a problem - The decision-making process begins with the existence of a problem or a discrepancy between an existing and a desired state of affairs. However, a discrepancy without pressure to take action becomes a problem that can be postponed.

2. Identify decision criteria - Once the manager has identified a problem that needs attention, the decision criteria important to resolving the problem must be identified. That is, managers must determine what is relevant in making a decision.

3. Allocate weights to the criteria - The decision maker must weigh the items in order to give them the correct priority in the decision. A simple approach to doing this is to give the most important criterion a weight of 10 and then assign weights to the rest against that standard.

4. Develop alternatives - The fourth step requires the decision maker to list the viable alternatives that could resolve the problem. No attempt is made in this step to evaluate the alternatives, only to list them.

5. Analyze alternatives - Once the alternatives have been identified, the decision maker must critically analyze each one. From this comparison, the strengths and weaknesses of each alternative become evident.

6. Select an alternative - The sixth step involves choosing the best alternative from among those considered.

7. Implement the alternative - Implementation involves conveying the decision to those affected by it and getting their commitment to it. If the people who must carry out a decision participate in the process, they are more likely to enthusiastically support the outcome than if they are just told what to do.

8. Evaluate decision effectiveness - The last step in the decision-making process involves appraising the outcome of the decision to see if the problem has been resolved. If the desired result has not been achieved, the manager may consider returning to a previous step or may even consider starting the whole decision process over.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 3.1: Describe the eight steps in the decision-making process.

Classification: Concept 29) Managers are assumed to use ________ if they make logical and consistent choices to maximize value.

A) rational decision making B) intuitive decision making C) bounded rationality D) evidence-based management Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Concept

9 Copyright © 2025 Pearson Education, Inc.

30) The human resources department must choose among four candidates to fill an open accounting clerk position. If it uses rational decision making, it will ________.

A) disregard the fact the one of the candidates is the owner's nephew B) rely on his initial impressions of the candidates to make this decision C) base his decision on his extensive experience and accumulated judgment D) involve others in the interviewing process Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Concept 31) It is assumed that a rational decision maker ________.

A) faces unclear and ambiguous problems B) is unlimited by his or her ability to process information C) is unaware of all the possible alternatives and consequences D) is fully objective and logical Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Concept 32) When managers make decisions that are rational but limited by their ability to process the information, they are following the concept of ________.

A) cognitive decision making B) bounded rationality C) evidence-based management D) intuitive decision making Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Concept 33) Evelyn's Internet search for information about "vendor for machine screws" yielded more than 100,000 items. Evelyn did not have time or resources to pursue each of these so she limited her search to only vendors in her state. By doing this, Evelyn used ________.

A) perfect rationality B) bounded rationality C) satisficing D) intuition Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Application 10 Copyright © 2025 Pearson Education, Inc.

34) Managers cannot possibly analyze all information on all alternatives; they tend to ________, rather than ________.

A) maximize; satisfice B) neutralize; satisfice C) satisfice; neutralize D) satisfice; maximize Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Concept 35) ________ results in a solution that is considered "good enough."

A) Rationality B) Linear thinking C) Intuition D) Satisficing Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Concept 36) Gilda has an idea that would streamline operations, reduce costs, and increase profits. Her idea requires the cooperation of several departments, some of which have demonstrated a resistance to change. By considering the context in which the changes must happen and the people in her organization, Gilda is using ________.

A) evidence-based management B) bounded rationality C) intuition D) positive employee relations Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Application

11 Copyright © 2025 Pearson Education, Inc.

37) Abigail is shopping for a new copier for her company. She has set her price range between $5,000 and $6,000. The copier must handle a minimum of 10,000 copies per month and have a useful life expectancy of five years. If Abigail selects the first copier she finds that meets these criteria, we would say she is ________.

A) using perfect rationality B) using bounded rationality C) using intuition D) satisficing Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Application 38) Lakeesha is keen on joining Columbia University to pursue a master's degree in economics.

However, three months after applying and waiting for an acceptance letter, she finally decides to attend NYU, which was one of her backup colleges. This is an example of ________.

A) maximizing B) neutralizing C) minimizing D) satisficing Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Application 39) Weici was reviewing job applicants and noticed one was from his hometown in China.

However, he was not the best candidate for the position so he culled the application. Weici is displaying ________.

A) bounded rationality B) irrational behavior C) escalation of commitment D) rational decision making Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Application

12 Copyright © 2025 Pearson Education, Inc.

40) Farrell has a knack for selecting candidates who become very successful workers. When asked how he does it, he answered that he "listened to his gut." Farrell is really ________.

A) using his intuition B) using bounded rationality C) using perfect rationality D) satisficing Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Application 41) Which of the following is an aspect of intuition?

A) Experience-based decisions B) Quality-initiated decisions C) Science-based decisions D) Programmed decisions Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Concept 42) Intuitive decision making ________.

A) is the systematic use of the best available evidence to improve the decision-making practice B) generally results in poor decisions and hence managers should learn to ignore their gut feelings C) is the process of making decisions based on experience, feelings, and accumulated judgment D) complements rational decision making but not bounded rational decision making Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Concept 43) Farrah has called together her management team to review information about customer satisfaction gathered by an external research company. Farrah is engaging in ________.

A) perfect rationality B) bounded rationality C) evidence-based management D) relationship management Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Application 13 Copyright © 2025 Pearson Education, Inc.

44) Zebulon made a decision about hiring a new executive assistant after interviewing only three candidates. The process was just too time consuming given his other responsibilities and the applicant seemed like they could do the job. Zebulon is ________.

A) using evidence-based management B) exhibiting rational decision making C) making a value-based decision D) satisficing Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Application 45) Jaleesa made the decision to go with a particular supplier because her gut told her that the supplier know their business well and would provide good service. This is an example of ________.

A) a routine decision B) a rule of thumb C) a creative solution D) intuitive decision making Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Application 46) Rajesh was a production manager for 10 years. Now, he oversees a larger business unit where he periodically needs to review decisions made by his employees. In which of the following areas would he be most likely to use intuitive decision making?

A) Technical issues in production B) Product development C) Routine decisions D) Decisions where you have hard data Answer: A Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Application

14 Copyright © 2025 Pearson Education, Inc.

47) Which of these is NOT a factor that impacts intuitive decision making?

A) Outsider opinions B) Emotions C) Subconscious mental processing D) Ethical values Answer: A Diff: 2 AACSB: Application of knowledge; Reflective thinking Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Application 48) Managers use decision-making in every function, from planning to controlling.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Concept 49) It is important that decision-makers ignore emotions when making business decisions so their decisions will be perceived as rational.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Concept 50) One assumption of rational decision making is that the decision maker is not aware of all possible alternatives and consequences.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Concept 51) According to the concept of bounded rationality, managers make decisions rationally, but are limited by their ability to process information.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Concept

15 Copyright © 2025 Pearson Education, Inc.

52) Evidence indicates that individuals who experienced intense feelings and emotions when making decisions actually achieved higher decision-making performance, especially when they understood their feelings as they were making decisions.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Concept 53) Intuitive decision making complements rational decision making but not bounded rational decision making.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Concept 54) Briefly, discuss the assumptions of rationality and the validity of those assumptions.

Answer: A decision maker who is perfectly rational is fully objective and logical. The problem faced is clear and unambiguous. The decision maker has a clear and specific goal. He is aware of all possible alternatives and consequences. Making decisions consistently leads to selecting the alternative that maximizes the likelihood of achieving that goal. These assumptions apply to any decision-personal or managerial. For managerial decision making, an additional assumption is that decisions are made in the best interests of the organization. However, most of these assumptions of rationality are not very realistic.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Concept 55) What is meant by bounded rationality and satisficing?

Answer: Despite the unrealistic assumptions of perfect rationality, managers are expected to be rational when making decisions. It is understood that "good" decision makers are supposed to do certain things and exhibit good decision-making behaviors as they identify problems, consider alternatives, gather information, and act decisively but prudently. When they do so, they show others that they are competent and that their decisions are the result of intelligent deliberation.

However, a more realistic approach to describing how managers make decisions is the concept of "bounded rationality." According to this concept, managers make decisions rationally, but are limited by their ability to process information. Because they cannot possibly analyze all information on all alternatives, managers "satisfice," rather than maximize. That is, they accept solutions that are "good enough." Thus, they become rational within the limits of their ability to process information.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Concept 16 Copyright © 2025 Pearson Education, Inc.

56) Give an example of the use of bounded rationality. The example can be fictitious as long as it includes all the elements of bounded rationality.

Answer: Students answers will vary, but must include an expectation of rationality, a limited ability to process information, an inability to know all possible alternatives, and a probable lack of maximization of the results of the decision.

Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Synthesis 57) What is intuitive decision making? How does intuition affect the process of making a decision?

Answer: Intuitive decision making is the process of making decisions on the basis of experience, feelings, and accumulated judgment. Intuitive decision making can complement both rational and bounded rational decision making. A manager who has had experience with a similar type of problem or situation often acts quickly with limited information because of that past experience.

Managers who experienced intense feelings and emotions when making decisions actually achieved higher decision-making performance, especially when they understood their feelings as they were making decisions.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Concept 58) Give an example of evidence-based management. Remember to include all of the essential elements.

Answer: Students answers will vary but must include 1) the decision-maker's expertise and judgment; 2) external evidence that has been evaluated by the decision maker; 3) opinions, preferences, and values of those who have a stake in the decision; and 4) relevant organizational (internal) factors such as context, circumstances, and organizational members.

Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 3.2: Explain the four approaches managers can use when making decisions.

Classification: Synthesis 59) ________ are straightforward, familiar, and easily defined.

A) Programmed problems B) Structured problems C) Non-structured problems D) Nonprogrammed problems Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 17 Copyright © 2025 Pearson Education, Inc.

60) Garrett looked at the list of orders for the coming week and made out the production schedule. He has done this so many times he could do it in his sleep. This situation represents a(n) ________.

A) structured problem B) unstructured problem C) linear problem D) programmed problem Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Application 61) Structured problems align well with which type of decisions?

A) Programmed B) Analogous C) Organic D) Nonlinear Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 62) A(n) ________ decision is a repetitive decision that can be handled by a routine approach.

A) nonprogrammed B) structured C) unstructured D) programmed Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 63) Harriet's machine has stopped working again. She consulted the operator's manual troubleshooting guide to find a solution. Harriet used a ________.

A) programmed decision B) non-programmed decision C) structured decision D) non-structured decision Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Application 18 Copyright © 2025 Pearson Education, Inc.

64) When making a decision for a routine situation, which step in the decision-making process can be skipped?

A) Identify the problem B) Evaluate decision effectiveness C) Develop alternatives D) Implement the alternative Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 65) A procedure is ________.

A) an explicit statement that tells a manager what can or cannot be done B) a series of sequential steps a manager uses to respond to a structured problem C) used mainly for unstructured, rather than structured, problems D) subject to the interpretation of the decision maker Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 66) One of the workers in Akeem's department submitted his two weeks' notice so Akeem needs to hire a replacement. The HR department issued a set of instructions Akeem must follow to initiate the search for candidates. In other words, there is a ________ Akeem must follow.

A) policy B) practice C) procedure D) program Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Application 67) A(n) ________ is an explicit statement that tells a manager what can or cannot be done.

A) agenda B) objective C) rule D) solution Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 19 Copyright © 2025 Pearson Education, Inc.

68) "All employees must be at their work stations and ready to work by the time the buzzer sounds." This is an example of a ________.

A) policy B) procedure C) practice D) rule Answer: D Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Application 69) "Smoking and the consumption of alcohol are strictly prohibited inside the work premises."

This is most likely an example of a(n) ________.

A) rule B) objective C) procedure D) policy Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Application 70) A policy ________.

A) typically serves as a guideline for decision making by setting general parameters B) specifically states what should or should not be done C) is a series of sequential steps a manager uses to respond to a structured problem D) is used when dealing with unstructured problems and non-programmed decisions Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 71) "We expect to maintain the highest standards of quality in our workmanship." This is an example of a ________.

A) procedure B) rule C) policy D) practice Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Application 20 Copyright © 2025 Pearson Education, Inc.

72) A(n) ________ typically contains an ambiguous term that leaves interpretation up to the decision maker.

A) rule B) procedure C) edict D) policy Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 73) Unstructured problems ________.

A) refer to the usual problems faced by organizations B) are generally solved using procedures, rules, and policies C) are accompanied by ambiguous or incomplete information D) do not require the decision maker to go through an involved decision process Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 74) After nearly 30 years of growth, sales at Ida's company have begun to decline. None of the managers have been able to determine the cause. Some say the entire economy is in recession; others blame a change in suppliers; still others say the work ethic among employees just isn't what it used to be. This is an example of a(n) ________ problem.

A) structured B) unstructured C) programmed D) non-programmed Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Application 75) Nonprogrammed decisions ________.

A) involve standardized solutions B) are usually made by lower-level managers C) are associated with clear and specific goals D) are unique and nonrecurring Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 21 Copyright © 2025 Pearson Education, Inc.

76) When problems are ________, managers must rely on ________ in order to develop unique solutions.

A) structured; nonprogrammed decision making B) structured; pure intuition C) unstructured; nonprogrammed decision making D) unstructured; programmed decision making Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 77) Which of these is merely a guideline for making a decision?

A) Rule B) Procedure C) Edict D) Policy Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 78) Lower-level managers typically confront ________.

A) unstructured problems B) new and unusual problems C) programmed decisions D) nonprogrammed decisions Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 79) Raina is a plant manager in a multi-site corporation. She frequently deals with situations involving new customers and new products. These are often ________.

A) non-linear problems and risky decisions B) structured problems and programmed decisions C) uncertain problems and linear decisions D) unstructured problems and nonprogrammed decisions Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Application

22 Copyright © 2025 Pearson Education, Inc.

80) First-line managers tend to deal with problems that are ________ while upper-level managers handle the ________ problems.

A) unstructured; structured B) routine and repetitive; unusual and difficult C) interpersonal; customer D) machine-related; interpersonal Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 81) Individuals with a ________ decision-making style tend to be very broad in their outlook and consider many alternatives.

A) conceptual B) directive C) bureaucratic D) contingency planning Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 82) It is time for Jane to order laminated plywood again. She typically orders from one of three vendors. She knows the price, delivery time, and quality of each vendor. In this situation, Jane is making a(n) ________.

A) programmed decision B) policy decision C) conceptual decision D) unstructured decision Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Application

23 Copyright © 2025 Pearson Education, Inc.

83) ________ decision makers have a much higher tolerance for ambiguity than do directive decision makers.

A) Behavioral B) Analytic C) Conceptual D) Programmed Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Application 84) Which of the following types of decision makers typically work well with others?

A) Behavioral B) Analytic C) Conceptual D) Programmed Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 85) Which of the following types of decision makers has a very broad outlook and tends to have a long range focus?

A) Behavioral B) Analytic C) Conceptual D) Programmed Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Application 86) A programmed decision is a repetitive decision that can be handled by a routine approach.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept

24 Copyright © 2025 Pearson Education, Inc.

87) Rules and procedures are the same.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 88) A policy is an explicit statement that tells a manager what can or cannot be done.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 89) Nonprogrammed decision making relies on procedures, rules, and policies.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 90) People with a conceptual style tend to be very broad in their outlook and consider many alternatives.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept

25 Copyright © 2025 Pearson Education, Inc.

91) Discuss structured problems, programmed decisions, unstructured problems, and nonprogrammed decisions.

Answer: Some problems are straightforward. The decision maker's goal is clear, the problem is familiar, and information about the problem is easily defined and complete. Hence, these are called structured problems. For instance, when a server spills a drink on a customer's coat the customer is upset and the manager needs to do something. Because it is not an unusual occurrence, there is some standardized routine for handling it. For example, the manager offers to have the coat cleaned at the restaurant's expense. This is called a programmed decision, a repetitive decision that can be handled by a routine approach. Because the problem is structured, the manager does not have to go to the trouble and expense of going through an involved decision process.

Not all the problems managers face can be solved using programmed decisions. Many organizational situations involve unstructured problems, which are problems that are new or unusual and for which information is ambiguous or incomplete. Whether to build a new manufacturing facility in China is an example of an unstructured problem. When problems are unstructured, managers rely on nonprogrammed decision making in order to develop unique solutions. Nonprogrammed decisions are unique and nonrecurring and involve custom-made solutions. Lower-level managers mostly rely on programmed decisions because they confront familiar and repetitive problems. As managers move up the organizational hierarchy, the problems they confront become more unstructured. However, few managerial decisions in the real world are either fully programmed or nonprogrammed. Most fall somewhere in between.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 92) Discuss the three types of programmed decisions that a manager depends on to resolve structured problems.

Answer: Usually a manager relies on one of three types of programmed decisions to counter structured problems: procedure, rule, or policy.

A procedure is a series of sequential steps a manager uses to respond to a structured problem.

Identifying the problem is a bit difficult. Once it is clear, so is the procedure. For instance, a purchasing manager receives a request from a warehouse manager for 15 PDA handhelds for the inventory clerks. The purchasing manager knows how to make this decision by following the established purchasing procedure.

A rule is an explicit statement that tells a manager what can or cannot be done. Rules are frequently used because they are simple to follow and ensure consistency. For example, rules about lateness and absenteeism permit supervisors to make disciplinary decisions rapidly and fairly.

The third type of programmed decisions is a policy, which is a guideline for making a decision.

In contrast to a rule, a policy establishes general parameters for the decision maker rather than specifically stating what should or should not be done. Policies typically contain an ambiguous term that leaves interpretation up to the decision maker.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 26 Copyright © 2025 Pearson Education, Inc.

93) Discuss the four individual approaches to making decisions.

Answer: People using the directive style have low tolerance for ambiguity and seek rationality.

They are efficient and logical, but their efficiency concerns result in decisions being made with minimal information and with few alternatives assessed. Directive types make decisions fast and they focus on the short run. The analytic type has a much greater tolerance for ambiguity than do directive decision makers. This means that analytic types are more comfortable than directives when uncertainty is involved in a decision. Analytic managers would be best characterized as careful decision makers with the ability to adapt to or cope with new situations. Individuals with a conceptual style tend to be very broad in their outlook and consider many alternatives. Their focus is long range, and they are very good at finding creative solutions to problems. The final category–the behavioral style–characterizes decision makers who work well with others. They're concerned with the achievement of peers and those working for them and are receptive to suggestions from others, relying heavily on meetings for communicating. This type of manager tries to avoid conflict and seeks acceptance by others.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 3.3: Classify decisions and decision-making styles.

Classification: Concept 94) Rules of thumb that managers use to simplify decision making are known as ________.

A) heuristics B) folksonomies C) algorithms D) sophisms Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Concept 95) "Red sky at night, sailor's delight; red sky at morning, sailor's warning" is an example of a ________.

A) proverb B) heuristic C) rule D) practice Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Application

27 Copyright © 2025 Pearson Education, Inc.

96) Lucas always seems to "know" exactly what to do in any given situation. At least that's what he'll tell you. But his ideas don't always work and his overall performance as scored by his supervisor isn't nearly as great as he thinks it is. Lucas is exhibiting the ________.

A) selective perception bias B) anchoring effect C) self-serving bias D) overconfidence bias Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Application 97) Many new car buyers choose to buy a car with little or no money down and payments for many years because of the ________.

A) overconfidence bias B) immediate gratification bias C) framing bias D) availability bias Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Application 98) The ________ describes how decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information.

A) anchoring effect B) selective perception effect C) confirmation bias D) framing bias Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Concept

28 Copyright © 2025 Pearson Education, Inc.

99) Sophie is in charge of recruitment at her company. During a particular interview, the first thing Sophie noticed about the applicant was that he was improperly attired. Though the candidate possessed the necessary qualifications and effectively answered all her questions, Sophie rejected him. This is an example of the ________.

A) availability bias B) self-serving bias C) anchoring effect D) confirmation bias Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Application 100) "There are no coincidences. If something bad has happened to you, you must have done something to deserve it." This statement might be made by someone with the ________.

A) framing bias B) self-serving bias C) availability bias D) randomness bias Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Application 101) Lila believes the global climate is changing. Every storm, every volcano eruption, every earthquake is, in her mind, evidence of this climate change. Lila has fallen victim to ________ bias.

A) framing B) selective perception C) confirmation D) representation Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Application

29 Copyright © 2025 Pearson Education, Inc.

102) When decision makers seek out information that reaffirms their past choices and discount information that contradicts past judgments, they are exhibiting the ________ bias.

A) hindsight B) availability C) representation D) confirmation Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Concept 103) Beth hired Tom, trained him, coached him, and expected he would be her eventual replacement when she moved up in the company. She noted each of his accomplishments with pride but wrote off as vicious gossip the comments from Tom's co-workers that he was making too many mistakes. Beth is experiencing the ________.

A) selective perception bias B) confirmation bias C) framing bias D) anchoring effect Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Application 104) Mildred was persuaded by a fast-talking salesperson to carry an expensive brand of yarns in her retail needlecraft shop. Seldom does a customer buy this brand, but on those rare occasions Mildred tells herself she made the right decision. The yarns have been sitting on the shelf for several months and she has yet to profit from them. Mildred suffers from the ________.

A) immediate gratification bias B) selective perception bias C) confirmation bias D) hindsight bias Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Application

30 Copyright © 2025 Pearson Education, Inc.

105) The ________ occurs when decision makers select and highlight certain aspects of a situation while excluding others.

A) framing bias B) availability bias C) representation bias D) confirmation bias Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Concept 106) The Prime Minister of Transylvania prefers darkened rooms, flinches in bright light, and has unusually long incisors. Despite his long and successful career, his political opponents claim he is a vampire. This is an example of the ________.

A) representation bias B) confirmation bias C) selective perception bias D) randomness bias Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Application 107) It hasn't rained in several days; therefore it is unlikely to rain today. This is an example of the ________.

A) self-serving bias B) availability bias C) representation bias D) randomness bias Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Application

31 Copyright © 2025 Pearson Education, Inc.

108) The last time the Whigs took over Congress, stock prices rose dramatically and unemployment fell to record lows. Once again, the Whigs are in power, so Jason expects his stock portfolio to grow significantly. Jason's thinking may be influenced by the ________.

A) representation bias B) selective perception bias C) randomness bias D) anchoring effect Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Application 109) The last time he flew Jet Value Air, Juan's plane developed a fuel leak and had to make an emergency landing. The time before that, his plane was grounded because of an electrical problem. Juan is sure his current trip will be fraught with problems and he will once again be delayed. This is an example of the ________ bias.

A) confirmation B) selective perception C) availability D) randomness Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Application 110) "We can't stop now. We've already invested $100,000 in the project." This speaker is acting on the ________.

A) anchoring effect B) availability bias C) representation bias D) sunk costs error Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Application

32 Copyright © 2025 Pearson Education, Inc.

111) Whenever anyone praises Mark for his good performance, he has the tendency to attribute his success to his personal qualities such as his ability to thrive under pressure and his eye for detail. However, any negative performance feedback is always met with excuses such as unsupportive team members or insufficient time. This is an example of the ________.

A) self-serving bias B) confirmation bias C) representation bias D) hindsight bias Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Application 112) Marty had arranged for a high-profile speaker to deliver the keynote address at her college's annual function. However, due to unforeseen circumstances, the speaker was forced to drop out at the last moment. Marty reacts to this news by saying, "I knew all along that this would happen." This is an example of the ________.

A) anchoring effect B) availability bias C) self-serving bias D) hindsight bias Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Application 113) The anchoring effect describes when decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Concept 114) The availability bias describes the actions of decision makers who try to create meaning out of random events.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Concept

33 Copyright © 2025 Pearson Education, Inc.

115) The sunk costs error occurs when decision makers forget that current choices cannot correct the past.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Concept 116) Explain any five decision biases or errors that managers make.

Answer: Overconfidence bias: When decision makers tend to think they know more than they do or hold unrealistically positive views of themselves and their performance.

Immediate gratification bias: Decision makers tend to want immediate rewards and to avoid immediate costs.

Anchoring effect occurs when decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information. First impressions, ideas, prices, and estimates carry unwarranted weight relative to information received later.

Selective perception bias: When decision makers selectively organize and interpret events based on their biased perceptions.

Confirmation bias: Decision makers seek out information that reaffirms their past choices and discount information that contradicts past judgments. These people tend to accept at face value information that confirms their preconceived views and are critical and skeptical of information that challenges these views.

Framing bias: When decision makers select and highlight certain aspects of a situation while excluding others.

Availability bias: When decisions makers tend to remember events that are the most recent and vivid in their memory.

Representation bias: When decision makers assess the likelihood of an event based on how closely it resembles other events or sets of events.

Randomness bias: Decision makers try to create meaning out of random events.

Sunk costs error: When decision makers forget that current choices cannot correct the past.

Self-serving bias: Decision makers take credit for their successes and blame failure on outside factors.

Hindsight bias: The tendency for decision makers to falsely believe that they would have accurately predicted the outcome of an event once that outcome is actually known.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 3.4: Describe how biases affect decision making.

Classification: Concept

34 Copyright © 2025 Pearson Education, Inc.

117) Which of the following uses algorithms to create a hierarchical level of artificial neural networks that simulate functions of the human brain?

A) Machine learning B) Big data C) Analytics D) Deep learning Answer: D Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 3.5: Explain how technology can improve decision making.

Classification: Concept 118) Cloud-based software company Salesforce stated that AI has changed the company's decision-making process. How has the use of AI affected decision-making process at Salesforce?

A) AI helped eliminate bias by limiting discussions driven by personal agendas.

B) AI completely removed errors from decision making at Salesforce.

C) AI reduced the amount of money the firm spends on training decision makers.

D) AI has yet to make a significant impact on decision but managers expect it to in the future.

Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.5: Explain how technology can improve decision making.

Classification: Application 119) Since AI software can learn through experience managerial decisions made or augmented

by AI will eventually approach ________.

A) rationality B) intuitive decision making C) satisficing D) structured decisions Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.5: Explain how technology can improve decision making.

Classification: Concept 120) Very large complex data sets that are so huge that traditional software is unable to handle them are known as ________.

A) algorithm sets B) machine data C) deep data D) big data Answer: D Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 3.5: Explain how technology can improve decision making.

Classification: Concept 35 Copyright © 2025 Pearson Education, Inc.

121) ________ is a method of data analysis that automates analytical model building.

A) Deep learning B) Artificial intelligence building C) Machine learning D) Big data mining Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 3.5: Explain how technology can improve decision making.

Classification: Concept 122) ________ involves the use of mathematics, statistics and other quantitative modeling methods.

A) Analytics B) Intuitive decision making C) Psychological profiling D) Design thinking Answer: A Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 3.5: Explain how technology can improve decision making.

Classification: Concept 123) AI usage among all businesses is likely to decline in the future.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 3.5: Explain how technology can improve decision making.

Classification: Concept 124) Using AI to augment human decisions could take advantage of the strengths of both approaches while mitigating the risks of relying on either.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 3.5: Explain how technology can improve decision making.

Classification: Concept

36 Copyright © 2025 Pearson Education, Inc.

Management, 16e (Robbins) Chapter 4 Influence of the External Environment and the Organization's Culture 1) The board of Corporation XYZ recently fired the CEO because the firm's sales growth declined during his tenure. Corporation XYZ's board believes in the ________ view of management.

A) prescient B) omnipotent C) symbolic D) systemic Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 2) The downfall of the furniture industry due to the subprime mortgage crisis and subsequent job loss of a number of managers in that industry would lend credence to the ________ view of management.

A) prescient B) omnipotent C) symbolic D) systemic Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 3) If Rashad believes his primary role as a manager is to create meaning out of ambiguity. He believes in the ________ role of management.

A) prescient B) omnipotent C) systemic D) symbolic Answer: D Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept

1 Copyright © 2025 Pearson Education, Inc.

4) Jill received a large executive stock option package when she accepted a new position as the chief executive officer of a struggling retail chain. Jill probably believes in the ________ role of management.

A) omnipotent B) omnipresent C) systemic D) symbolic Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 5) Carlos has several good ideas about how to increase his firm's profits. However, they all involve committing resources that are currently not available. His problem highlights the fact that all managers face ________.

A) environmental decay B) symbolism C) internal constraints D) performance optimism Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 6) Managers can be limited in their ability to influence the firm because of the ________.

A) organizational environment and organizational culture B) organizational environment and symbolism C) stakeholders' views on ethics D) past management mistakes that still affect the firm Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept

2 Copyright © 2025 Pearson Education, Inc.

7) Ruben wants to find a new job where performance metrics determine his raise for the coming year. Ruben believes in the ________ view of management.

A) omnipotent B) omnipresent C) systemic D) symbolic Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 8) Lakeeta knows her performance review will be both good and bad. She made several organizational changes that saved the firm money but the firm still had a down quarter due to the anemic economy. Consumers just quit spending money. Which of these statements is the most accurate?

A) Lakeeta's job suggests that both the omnipotent and the symbolic roles of management exist.

B) Lakeeta's position is largely symbolic since she cannot influence the outcomes.

C) Lakeeta may lose her job due to the lower sales this past quarter if her boss believes in the symbolic view of management.

D) Lakeeta obviously has no ability to influence outcomes so she believes in the omnipotent view of management.

Answer: A Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 9) Which of these perspectives is the dominant view of management in today's society?

A) Managers are mostly ineffective.

B) Managers are symbolic.

C) Managers are omnipotent.

D) Managers are overpaid.

Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept

3 Copyright © 2025 Pearson Education, Inc.

10) When a manager holds someone accountable for their division's performance, it suggests they believe in the ________ view of management.

A) omnipotent B) omnipresent C) systemic D) symbolic Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 11) DeMarcus feels like he will become the scapegoat for the firm's poor performance since he made several changes in the firm's production process. He expects to be fired later today when he meets with his boss. DeMarcus probably believes in the ________ view of management.

A) top down B) systemic C) symbolic D) omnipotent Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 12) After just two years on the job, Disney CEO Bob Chapek was fired due to poor earnings and other challenges at the company. The board of directors of Disney believes in the ________ role of management.

A) omnipotent B) systemic C) symbolic D) organic Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept

4 Copyright © 2025 Pearson Education, Inc.

13) In reality, most managers have some control over performance but also ________.

A) operate within constraints B) consistently make poor decisions C) control their environment D) remain mostly powerless Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 14) If a manager believes her role is to create meaning out of random events and confusing situations she probably believes in the ________ role of management.

A) omnipotent B) systemic C) symbolic D) organic Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 15) Which one of the following represents the two views of managerial impact on the success or failure of the organization?

A) Omnipotent and symbolic B) Omnipotent and reflective C) Symbolic and interactive D) Reflective and interactive Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept

5 Copyright © 2025 Pearson Education, Inc.

16) The dominant view in management theory suggests that ________.

A) an organization's success or failure is due to external forces outside managers' control B) managers' roles are increasingly becoming peripheral and staff manage their own areas of expertise C) managers are directly responsible for an organization's success or failure D) managers cannot significantly affect an organization's performance because they are constrained by the abilities of their employees Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 17) Wendy notices that the company's top executives share a belief that managers are directly responsible for the organization's success or failure. This belief reflects a(n) ________ view of management.

A) traditional B) omnipotent C) omniscient D) symbolic Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Application 18) Wendy interviews many middle-level managers and discovers that these individuals believe that external factors constrain managers' influence over outcomes. The mid-level managers have a(n) ________ view of management.

A) traditional B) omnipotent C) omniscient D) symbolic Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Application

6 Copyright © 2025 Pearson Education, Inc.

19) Calvin's goals for the coming year include specific targets for increasing market share and quantity of units shipped. If he succeeds, he will be handsomely rewarded. If he fails, he is likely to be replaced. Judging from this, it would appear that Calvin's employer subscribes to the ________ view of management.

A) symbolic B) omnipotent C) impotent D) omniscient Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Application 20) The ________ view of management is consistent with the stereotypical picture of the takecharge business executive who can overcome any obstacle in carrying out the organization's objectives.

A) omnipotent B) impotent C) omniscient D) symbolic Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 21) The soccer league in England is notorious for the number of team managers fired over the course of a single season, which stands at no fewer than eight managers on average, owing to poor team form and consequently, poor results. It is evident from this information that the league endorses a(n) ________ view of management.

A) symbolic B) omnipotent C) impotent D) omniscient Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Application

7 Copyright © 2025 Pearson Education, Inc.

22) Which of the following most accurately reflects the symbolic view of management?

A) Managers are directly responsible for an organization's success or failure.

B) Managers have to ensure that every obstacle is overcome on the way to achieving the organization's goals.

C) External forces are responsible for an organization's success or failure.

D) Employees are directly responsible for an organization's success or failure.

Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 23) Elmo Research & Development has been going through a rough patch lately. Turnover has been high and employee morale is at an all-time low. Though employees and competitors hold management responsible for the decline, the CEO does not let the managers go or change the management style. Which of the following could explain this attitude?

A) The CEO holds the omnipotent view of management, which asserts that external factors have a significant effect on performance outcomes.

B) Because the organization has a "take-charge" management style, the employees are responsible for organizational policies.

C) The CEO is unresponsive to the criticisms from stakeholders.

D) The CEO holds the view that managers have only a limited role in organization success or failure.

Answer: D Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Application 24) The symbolic view of management is based upon the belief that managers symbolize ________.

A) control and influence by developing plans and making decisions B) every aspect of an organization's performance, from the top level to the operational level C) the fluctuating fortunes of the organization as they alternate between profits and losses D) the take-charge executive who overcomes any obstacle to see that the organization achieves its goals Answer: A Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept

8 Copyright © 2025 Pearson Education, Inc.

25) According to the symbolic view, managers have a(n) ________ effect on substantive organizational outcomes.

A) limited B) extensive C) influential D) subtle Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 26) Internal constraints that influence managers' decisions and actions come from the ________.

A) attitudes of customers B) culture of the organization C) prevailing political conditions D) fluctuations in the stock market Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 27) According to the symbolic view, most managers have limited ability to influence outcomes.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 28) Performance-based pay systems suggest the firm believes in the symbolic view of management.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept

9 Copyright © 2025 Pearson Education, Inc.

29) A manager that holds his employees accountable for sales growth probably believes in the omnipotent view of management.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 30) In the real world, managers can influence outcomes but they operate within constraints.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 31) Cassy has been tasked with increasing the division's productivity. This suggests that Cassy's boss believes in the omnipotent view of management.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 32) The view of managers as omnipotent is consistent with the stereotypical picture of the takecharge business executive who can overcome any obstacle in carrying out the organization's objectives.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept 33) In the symbolic view of management, managers are seen as directly responsible for an organization's success or failure.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept

10 Copyright © 2025 Pearson Education, Inc.

34) The symbolic view of management impact is useful in explaining the high turnover among sports coaches, who can be considered the "managers" of their teams.

Answer: FALSE Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Analytical 35) In a short essay, differentiate between the symbolic view and the omnipotent view of management. Include specific examples of each view to support your answer.

Answer: a. In the omnipotent view, differences in an organization's performance are assumed to be due to decisions and actions of its managers. Good managers anticipate change, exploit opportunities, correct poor performance, and lead their organizations. When things go well and profits are up, managers take the credit and are rewarded-even if they had little to do with achieving the positive outcomes. When profits are down, top managers are often fired in the belief that "new blood" will bring improved results. Coaches are often released following a poor season as they are considered the "managers" of their teams. b. The symbolic view holds that a manager's ability to affect performance outcomes is influenced and constrained by external factors. According to this view, it's unreasonable to expect managers to significantly affect an organization's performance. Instead, performance is influenced by factors over which managers have little control such as the economy, customers, governmental policies, competitors' actions, industry conditions, and decisions made by previous managers.

This view is labeled "symbolic" because it's based on the belief that managers symbolize control and influence by developing plans, making decisions, and engaging in other managerial activities to make sense out of random, confusing, and ambiguous situations. However, the actual part that managers play in organizational success or failure is limited.

In the 1990s Cisco Systems was the picture of success. Growing rapidly, it was widely praised by analysts for its "brilliant strategy, masterful management of acquisitions and superb customer focus." As Cisco's performance declined during the early part of the 21st century, analysts said that its strategy was flawed, its acquisition approach was haphazard, and its customer service was poor. The symbolic view would suggest that declining performance was due to the external circumstances beyond the control of the managers.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 4.1: Contrast the actions of managers according to the omnipotent and symbolic views.

Classification: Concept; Application

11 Copyright © 2025 Pearson Education, Inc.

36) If mortgage interest rates increase, this would be an example of changing ________ conditions in a firm's external environment.

A) economic B) political C) sociocultural D) financial Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Application 37) Which of the following factors is an economic component of an organization's external environment?

A) The employees of the organization have, on average, 2.3 children.

B) The average customer of a firm has a high school education.

C) The firm's customers' disposable income falls in the range of $25,000-$40,000.

D) Most of the firm's customers live in the Midwest.

Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Application 38) The ________ component of an organization's external environment is concerned with trends in population characteristics such as age, race, gender, education level, geographic location, income, and family composition.

A) economic B) political C) demographic D) sociocultural Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept

12 Copyright © 2025 Pearson Education, Inc.

39) Which of the following factors is a demographic component of an organization's external environment?

A) Lifestyles and behavior B) Political stability C) Geographic location D) Stock market fluctuations Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept 40) Gerber makes and sells baby products. A shift in the birth rate would represent a change in the ________ component of this firm's external environment.

A) psychographic B) demographic C) political D) cultural Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Application 41) Assume the global economy rebounds rapidly from the Great Recession. What constraint is this likely to have on decisions managers make?

A) The number of qualified candidates available for hire will decrease.

B) Managers will be asked to eliminate positions to cut labor costs.

C) The hourly compensation average will have to fall; managers will be asked to offer less to job candidates.

D) Positions will be easier to fill as college graduates settle for lower paying jobs.

Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Analytical

13 Copyright © 2025 Pearson Education, Inc.

42) The Metropolis News has experienced a decline in the number of subscriptions to its printed newspaper over the last five years. It seems people prefer news feeds sent to their smartphones rather than a printed paper delivered to their homes. Which component in the external environment does this change represent?

A) Economic B) Political C) Demographic D) Sociocultural Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Application 43) Thanks to iTunes and similar websites, sales of compact discs have declined severely, forcing entertainers to seek alternative revenue streams. This represents a change in the ________ component of the external environment.

A) psychological B) political/legal C) sociocultural D) economic Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Application 44) Several years ago, protests in Hong Kong limited the number of tourists and also reduced revenue for Disney's theme park. This represents a change in the ________ component of the external environment.

A) global B) political/legal C) sociocultural D) economic Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept

14 Copyright © 2025 Pearson Education, Inc.

45) Which of the following factors is a sociocultural component of an organization's external environment?

A) Most of the firm's customers have at least one year of college.

B) The government of the country holds elections whenever confidence in the current regime falters.

C) Over time, society has become more accepting of alternative lifestyles.

D) The average number of hours worked per year is increasing.

Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Application 46) Suppose the government of Abolonia imposed a national sales tax on its citizens that reduced their disposable income. Which component of the external environment would this affect?

A) Global B) Cultural C) Demographic D) Economic Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Application 47) The citizens of Abolonia believe no top executive should ever earn more than 40 times the average wage of the company's employees. This is an example of ________.

A) how changes in the demographics limit the discretion managers have B) how societal attitudes in the economic context potentially affect the salaries of executives C) how government regulation affects the salaries executives can earn D) a trend in the sociocultural environment that limits disposable income in the economic environment Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Application

15 Copyright © 2025 Pearson Education, Inc.

48) An organization with dozens of competitors and a large number of raw materials suppliers has a high degree of ________.

A) environmental autonomy B) environmental complexity C) forecast certainty D) forecast uncertainty Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept 49) Everything outside of an organization, including such factors as interest rates and stock fluctuations, is defined as the ________.

A) general environment B) stable environment C) dynamic environment D) environment complexity Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept 50) Which of the following, if true, represents a demographic change that will affect decisions future managers make?

A) The unemployment rate is likely to continue to fall.

B) The percentage of Hispanics in the candidate pool will increase.

C) More job candidates are likely to have tattoos and body piercings.

D) More jobs will be performed by robots.

Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Application

16 Copyright © 2025 Pearson Education, Inc.

51) Faced with incomplete information about the future national economic conditions, many employers have eschewed the tradition of hiring full-time, permanent employees in favor of ________.

A) hiring only high school graduates willing to work for lower wages B) a reduced work week of no more than 30 hours per week per employee C) off-shoring as many jobs as possible to reduce costs associated with government-mandated programs D) a flexible work arrangement that includes freelancers and temporary workers Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept 52) If the components of an organization's environment change frequently, the organization is operating in a ________ environment.

A) stable B) simple C) dynamic D) complex Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept 53) Which of the following are the two dimensions of environmental uncertainty?

A) Degree of change and degree of complexity B) Degree of change and degree of volume C) Degree of complexity and degree of impact D) Degree of impact and degree of timing Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept

17 Copyright © 2025 Pearson Education, Inc.

54) D&B Designs has been in the landscape design business in Pleasantville for the past twenty years. As the "first mover" in the market, the company has built a strong market share over the years and is the best-known firm in the area. The company strength increased steadily, and now stands at fifty employees. Which of the following, if true, would make the company's business environment more uncertain?

A) Homeowners in the area take pride in their gardens and are avid do-it-yourself gardeners.

B) Demand for landscaping services dips every autumn and winter.

C) A long-time competitor quit the landscape design business last year.

D) Zoning laws in the area change as each new city council comes into power.

Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Application 55) Which of the following describes a dynamic environment?

A) Sales vary with the seasons.

B) Production methods change about once every 5 years.

C) Competitors move into and out of the industry frequently.

D) Product demand increases every year on a steady upward trend.

Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Application 56) If the components in an organization's environment exhibit minimal change, such an environment is said to be ________.

A) volatile B) dynamic C) stable D) simple Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept

18 Copyright © 2025 Pearson Education, Inc.

57) Home prices in the area in which your real estate office operates have increased only gradually for the past several years. However, you have noticed that demand for housing in the area usually spikes in summer. Which of the following best describes your business environment?

A) Stable and simple B) Dynamic and simple C) Stable and complex D) Dynamic and complex Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Application 58) Moreno's Pub Burgers has enjoyed its status as the number one hamburger restaurant in Pleasantville for the past ten years. Its only competitor is a national fast food chain preferred by children rather than adults. Which of the following, if true, would make Moreno's business environment more uncertain?

A) The fast food chain closes.

B) A new employer moves into the area, bringing hundreds of jobs and more families.

C) Moreno's buys the lot next door to expand its parking.

D) Because of the growth of Pleasantville's population, more hamburger chains build facilities in Pleasantville.

Answer: D Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Application 59) Which one of the following represents the highest level of environmental uncertainty?

A) Mario's restaurant competes against 325 others in the city; the city's ethnic mix is constantly changing.

B) Maria's is still the only restaurant in a small town. She took it over from her mother and still uses the same equipment.

C) Millie's customers expect to see new menu items regularly and want Millie to install Wi-Fi. D) Marty has to deal with the local council, the health department, the franchisor, the zoning commission-the list keeps growing. He is grateful there are no new competitors moving in.

Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Application

19 Copyright © 2025 Pearson Education, Inc.

60) Which one of the following represents the lowest level of environmental uncertainty?

A) Mario's restaurant competes against 325 others in the city; the city's ethnic mix is constantly changing.

B) Maria's is still the only restaurant in a small town. She took it over from her mother and still uses the same equipment.

C) Millie's customers expect to see new menu items regularly and want Millie to install Wi-Fi. D) Marty has to deal with the local council, the health department, the franchisor, the zoning commission-the list keeps growing. He is grateful there are no new competitors moving in.

Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Application 61) In which one of the following environments do managers in an organization have the greatest influence on organizational outcomes?

A) Stable and complex environments B) Dynamic and simple environments C) Stable and simple environments D) Dynamic and complex environments Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept 62) Which of the following environments is characterized by the highest level of environmental uncertainty?

A) A stable and complex environment B) A dynamic and simple environment C) A stable and simple environment D) A dynamic and complex environment Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept

20 Copyright © 2025 Pearson Education, Inc.

63) The term ________ is used to collectively refer to any constituencies in an organization's environment that are affected by its decisions and actions.

A) competitors B) shareholders C) unions D) stakeholders Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept 64) Which one of the following represents an important constituent of a small-town bake shop selling desserts and coffee?

A) Wheat farmers in Kansas B) The state department of revenue C) The bakery's regular customers D) The local campus of the community college Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Application 65) People's beliefs about conditions of economic inequality illustrate how societal attitudes can constrain managers' decisions and actions.

Answer: TRUE Diff: 3 AACSB: Ethical understanding and reasoning Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept 66) A dynamic environment is characterized by the absence of new competitors, few technological breakthroughs by current competitors, and little activity by pressure groups to influence the organization.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept

21 Copyright © 2025 Pearson Education, Inc.

67) Environmental uncertainty refers to the number of components in an organization's environment and the extent of the knowledge that the organization has about those components.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept 68) A dynamic and simple environment is characterized by the greatest level of environmental uncertainty.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept 69) An organization's competitors and employees are considered to be stakeholders who are affected by the organization's decisions and actions.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept 70) Managers have greater influence over organizational performance when relationships with the stakeholders are obvious and secure.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept 71) Managers of high-performing companies tend to consider the interests of the most profitable stakeholder groups as they make decisions.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept

22 Copyright © 2025 Pearson Education, Inc.

72) Assume that medical science is able to extend the life expectancy in the United States by 20 years, on average. Give examples of how this will affect the decisions managers make. Respond in terms of the economic, demographic, political/legal, and sociocultural contexts.

Answer: Students' answers will vary but should include aspects related to an aging population: more demands on firms to provide products and services for older people; a larger burden on government services to the elderly such as income supports; increasing demand for health care, etc. One could also speculate that society's attitude toward early retirement may shift in favor of a longer working career. If the larger 65+ age group has insufficient income to support themselves, we might see parents moving in with their adult children or even grandchildren.

Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Application 73) Define environmental uncertainty. Briefly discuss the dimensions of environmental uncertainty.

Answer: Environmental uncertainty refers to the degree of change and complexity in an organization's environment.

The first dimension of uncertainty is the degree of change. If the components in an organization's environment change frequently and unpredictably, it is a dynamic environment. If change is minimal or predictable, it's a stable one. A stable environment might be one with no new competitors, few technological breakthroughs by current competitors, little activity by pressure groups to influence the organization, and so forth.

The other dimension of uncertainty describes the degree of environmental complexity, which looks at the number of components in an organization's environment and the extent of the knowledge that the organization has about those components. An organization with fewer competitors, customers, suppliers, government agencies, and so forth faces a less complex and uncertain environment. Organizations deal with environmental complexity in various ways.

Complexity is also measured in terms of the knowledge an organization needs about its environment.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 4.2: Describe the constraints and challenges facing managers in today's external environment.

Classification: Concept

23 Copyright © 2025 Pearson Education, Inc.

74) If you were talking to Todd and asked him what the term culture meant, he would likely reply that it is ________.

A) the formal rules of an organization B) the nature of products/services offered by the company C) the shared values and practices of the firm D) a set of operational procedures for the company Answer: C Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 75) ________ has been described as the shared values, principles, traditions, and ways of doing things that influence the way organization members act.

A) Corporate hierarchy B) Business configuration C) Organization culture D) Industrial psychology Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 76) A person desiring to understand the culture of an organization would examine ________.

A) its formal rules B) the nature of products/services offered by the company C) the shared values and practices of the firm D) a set of operational procedures for the company Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept

24 Copyright © 2025 Pearson Education, Inc.

77) Which one of the following statements highlights the shared aspect of culture?

A) Organizational culture is concerned with how members perceive the culture and describe it, not with whether they like it.

B) Organizational culture is not something that can be physically touched or seen, but employees perceive it on the basis of what they experience within the organization.

C) The original source of the culture of an organization reflects the vision of the organization's founders.

D) Even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization's culture in similar terms.

Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 78) Stephen notices that management is very concerned with the effects of outcomes on employees in the organization. This means that management emphasizes the ________ dimension of the organization's culture.

A) stability B) people orientation C) aggressiveness D) innovation and risk taking Answer: B Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application 79) Which one of the following most accurately reflects the difference between strong cultures and weak cultures?

A) Strong cultures tend to encourage employees to try new approaches to changing conditions, while weak cultures do not.

B) In strong cultures, organizational values are held by top management, while in weak cultures, values are diffused throughout the organization.

C) Strong cultures have less influence on employee behavior than do weak cultures.

D) Company values are more deeply held and widely shared in strong cultures than in weak cultures.

Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept

25 Copyright © 2025 Pearson Education, Inc.

80) Which of these dimensions of organizational culture highlights the importance of collaboration?

A) Team orientation B) Attention to detail C) Adaptability D) People orientation Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 81) Google has often been cited as a model for employee satisfaction. Google takes extensive care to ensure employees have the best available conditions to perform, ranging from free snack bars, free massages, innovation rooms, onsite spas, and many more such measures. Which dimension of organizational culture is Google said to emphasize through such measures?

A) Integrity B) Adaptability C) People orientation D) Attention to detail Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application 82) Martha is concerned with the degree to which managers focus on results rather than the techniques and processes used to achieve those results. In other words, Martha is concerned that the company will emphasize ________ over other dimensions of the organizational culture.

A) integrity B) adaptability C) attention to detail D) outcome orientation Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application

26 Copyright © 2025 Pearson Education, Inc.

83) Which one of the following would make Mary perceive that the company where she works has a strong culture?

A) Values are limited to the top management.

B) Upper management sends contradictory messages about what is important.

C) Most employees are aware of company history.

D) Shared values and behaviors are not connected.

Answer: C Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application 84) Employees at Ottobath Corporation are encouraged to submit their ideas for improvements to processes and for new products. Ottobath likely possesses a high degree of ________.

A) people orientation B) team orientation C) adaptability D) aggressiveness Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application 85) Bethany works for an international accounting firm noted for its superior quality of work.

Employees check and double-check their work. The culture of this firm emphasizes ________.

A) attention to detail B) outcomes C) people D) teams Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application 86) Which one of the following is a characteristic of an organization with a strong culture?

A) Management strives to delink shared values from behaviors as much as possible.

B) Culture conveys consistent messages about what is important to the organization.

C) The core set of organizational values is zealously guarded by the management.

D) Emphasis is laid on the future of the organization, rather than acquainting employees with company history or past heroes.

Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 27 Copyright © 2025 Pearson Education, Inc.

87) Which one of the following is a disadvantage of having a strong organizational culture?

A) High employee turnover B) Decreased organizational performance C) Low loyalty towards the organization D) Decreased ability to try new approaches Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 88) If Melody wanted to build a strong culture, which of these actions would help most?

A) She and other managers should often tell stories about the company "heroes" and encourage employees to emulate their behavior.

B) She should allow employees to pursue activities they believe will contribute to future company growth.

C) She should encourage employees to continue their education and establish a tuition assistance program.

D) She should hold an annual retreat at which upper management develops a values statement.

Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application 89) If Nanette is able to strengthen the culture of her organization, which one of the following could she reasonably expect as a result?

A) An increase in absenteeism B) A decrease in employee turnover C) An increase in her stock trading price D) A decrease in health insurance costs Answer: B Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application 90) The original source of an organization's culture usually reflects ________.

A) the present conditions in which the organization functions B) the composition of its productive workforce C) the degree of success that the organization has achieved D) the vision or mission of the organization's founder Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 28 Copyright © 2025 Pearson Education, Inc.

91) ________ is a process that helps new employees learn the organization's way of doing things.

A) Inculcation B) Socialization C) Enculturation D) Transculturation Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 92) An organization's culture can be perpetuated by ________.

A) selecting candidates for employment with similar backgrounds B) displaying artifacts that exemplify the culture C) taking advantage of employees' suggestions for improvement D) expecting managers to produce results Answer: B Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application 93) Organizational ________ typically contain narratives about significant events or people in the organization.

A) stories B) rituals C) language D) material artifacts Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 94) ________ help anchor the present in the past, provide explanations and legitimacy for current practices, exemplify what is important to the organization, and provide compelling pictures of an organization's goals.

A) Rituals B) Symbols C) Stories D) Artifacts Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 29 Copyright © 2025 Pearson Education, Inc.

95) The day before Disney World in Florida was to open, the sod around one of the resort hotels had not been laid. CEO Michael Eisner took off his suit coat and tie, rolled up his sleeves, and began laying sod. He instructed his managers to do likewise but many objected, saying they did not know how to lay sod. "It's not hard, boys," said Eisner. "The green side goes up." This is an example of a(n) ________ that reinforces culture.

A) tradition B) ritual C) artifact D) story Answer: D Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application 96) The term ________ refers to repetitive sequences of activities that express and reinforce the important values and goals of the organization.

A) organizational culture B) corporate rituals C) corporate rites D) employee mentoring Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 97) Which of the following is an example of a corporate ritual?

A) Joe and Ed swap stories about the company's history and past heroes who have made significant contributions to the company.

B) Company executives use company-specific jargon or slogans intended to inspire other employees to perform better.

C) Every customer who buys a new car at Eby Ford and Lincoln rings a gong and is rewarded with applause from the entire sales staff.

D) In the reception lobby is an assortment of material artifacts such as trade magazines, industry awards, photos of the employees-of-the-month, and samples of products.

Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application

30 Copyright © 2025 Pearson Education, Inc.

98) Which one of the following is an example of a material artifact or symbol?

A) The lines on the parking lot are repainted every year.

B) The offices of upper management are carpeted; the offices of administrative personnel have tile floors.

C) The company sponsors a local youth sports team.

D) Incoming calls are answered by a live person.

Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application 99) ________ often act(s) as a common denominator that bonds an organization's members.

A) Rituals B) Symbols C) Artifacts D) Language Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 100) Which one of the following is a cultural constraint that affects the decisions managers in a company make?

A) The extent to which employees are encouraged to participate on problem-solving teams B) The size of the operating budget C) The location of the firm's headquarters D) The size of the employee population Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Analytical 101) Bernard's company knows it must constantly create new products to stay ahead of the competition. Which of the following characteristics are we likely to find in this culture?

A) A serious outlook toward work B) Intolerance toward uncertainty or ambiguity C) Resolution of employee issues based on personal interest D) Freedom for employees to exercise discretion Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application 31 Copyright © 2025 Pearson Education, Inc.

102) If ABC Company wanted to create an innovative culture, which of the following actions should it take?

A) Create detailed job descriptions and step-by-step procedures for every position.

B) Allow employees time for the generation of ideas.

C) Encourage employees to report slacking and other time wasting within their departments.

D) Require employees to document their activities to account for all paid hours.

Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application 103) Marriott hotels are noted for their superior service. Their motto is "Ladies and gentlemen serving ladies and gentlemen." To build and maintain this level of service, which of the following guidelines should managers follow?

A) Precisely defining employees' normal job requirements and ensuring they perform those actions.

B) Giving service-contact employees continual training on product knowledge, listening, and other behavioral skills.

C) Designing jobs with rigid rules and procedure that employees should stick to in order to satisfy customers.

D) Preserving the discretion to make day-to-day decisions on job-related activities at the top level of management.

Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application 104) Which of the following statements about remote work and culture is NOT accurate?

A) Building culture with remote workers requires managers to be more explicit in articulating cultural values and helping employees see when their behaviors align with the culture.

B) Managers must be intentional about connecting remote workers to the organization.

C) Calling out behaviors that align with the culture helps remote workers visualize the culture.

D) It is impossible to build a strong culture with remote workers since they do physically interact.

Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application

32 Copyright © 2025 Pearson Education, Inc.

105) Building culture with remote workers requires managers to be more explicit in articulating cultural values and helping employees see when their behaviors align with the culture.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 106) Strong cultures have more influence on employees than do weak cultures.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 107) The shared aspect of culture implies that all employees in an organization agree with the organization's values and beliefs.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 108) In strong organizational cultures, employees have little knowledge of company history or heroes; what is important is present performance.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 109) Organizations help employees adapt to the culture through socialization.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 110) For the sake of clarity, the constraints imposed on managers by the organization's culture are explicitly stated in the employee handbook.

Answer: FALSE Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application

33 Copyright © 2025 Pearson Education, Inc.

111) Because a company's culture has so much influence on managers' decisions, it is important that each manager have a published code clearly stating the company's cultural guidelines.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 112) Define organizational culture and discuss its three primary implications.

Answer: Organizational culture is the shared values, principles, traditions, and ways of doing things that influence the way organizational members act. In most organizations, these important shared values and practices have evolved over time and determine, in large degree, what employees perceive about their organizational experiences and how they behave in the organization. When doing their work, the organizational culture-the "way we do things around here"-influences what employees can do and how they view, define, analyze, and resolve problems and issues.

Our definition of culture implies three things. First, culture is a perception. Individuals perceive the organizational culture on the basis of what they see, hear, or experience within the organization. Second, even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization's culture in similar terms.

That's the shared aspect of culture. Finally, organizational culture is descriptive. It's concerned with how members perceive the organization, not with whether they like it. It describes rather than evaluates.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept 113) Identify and define the six dimensions that make up an organization's culture.

Answer: Organizational culture has been described as the shared values, principles, traditions, and ways of doing things that influence the way organizational members act. In most organizations, these shared values and practices have evolved over time. a. Adaptability-the degree to which employees are encouraged to be innovative and to take risks. b. Attention to detail-the degree to which employees are expected to exhibit precision, analysis, and attention to detail. c. Outcome orientation-the degree to which managers focus on results or outcomes rather than on how these outcomes are achieved. d. People orientation-the degree to which management decisions take into account the effects on people in the organization. e. Team orientation-the degree to which work is organized around teams rather than individuals. f. Integrity-the degree to which people exhibit honesty and high ethical principles in their work.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Concept

34 Copyright © 2025 Pearson Education, Inc.

114) How do employees of an organization learn its culture? In a short essay, explain the four primary methods and provide an example of each.

Answer: Culture is transmitted to employees in a number of ways. The most significant are stories, rituals, material symbols, and language. a. Stories: Organizational "stories" typically contain a narrative of significant events or people including such things as the organization's founders, reactions to past mistakes, and so forth. For instance, managers at Nike feel that stories told about the company's past help shape the future.

Whenever possible, corporate "storytellers" (senior executives) explain the company's heritage and tell stories that celebrate people getting things done. b. Rituals: Corporate rituals are repetitive sequences of activities that express and reinforce the values of the organization, what goals are most important, and which people are important. Mary Kay Cosmetics' annual awards ceremony is a good example. The company spends more than $50 million annually on rewards and price incentives. c. Material Symbols: Material symbols convey to employees who is important and the kinds of behavior that are expected and appropriate. Examples of material symbols include the layout of an organization's facilities, how employees dress, the types of automobiles provided to top executives, and the availability of corporate aircraft. At WorldNow, a provider of Internet technology to local media companies, an important material symbol is an old dented drill that the founders purchased for $2 at a thrift store. The drill symbolizes the company's culture of "drilling down to solve problems." d. Language: Many organizations and units within organizations use language as a way to identify and unite members of a culture. By learning this language, members attest to their acceptance of the culture and their willingness to help preserve it. For instance, at Walmart, employees soon learn to describe various product aisles with the terms "Action Alley," "Bowling Alley," and "The Cross."

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application 115) Why is it more difficult to build an organizational culture with remote workers and how do managers overcome this challenge?

Answer: Often remote workers have little or no interaction with others, which makes it difficult to build a culture. So managers must be intentional about connecting workers to the company.

They should focus on creating more meaningful interactions and helping workers see the connection between their work and the mission of the organization.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 4.3: Discuss the characteristics and importance of organizational culture.

Classification: Application

35 Copyright © 2025 Pearson Education, Inc.

Management, 16e (Robbins) Chapter 5 Diversity, Equity, and Inclusion 1) The ways in which people in an organization are different from and similar to one another is known as ________.

A) business etiquette B) work culture C) workplace diversity D) organizational democracy Answer: C Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 2) The period of time from the 1960s to 1970s focused on ________.

A) assimilating minorities and women into the corporate setting B) making employees more aware and sensitive to the needs and differences of others C) diversity and inclusion for business success, profitability, and growth D) complying with laws and regulations through affirmative action policies and programs Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 3) Soon after Rashad was hired as a company accountant, his company developed corporate programs to help improve the self-confidence and qualifications of diverse employees so they could "fit in." During which period of time did Rashad start working for his employers?

A) New millennium B) 1960s to 1970s C) Early 1980s D) Late 1980s to late 1990s Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Application

1 Copyright © 2025 Pearson Education, Inc.

4) During which era was the term "workforce diversity" first used?

A) 2000 to 2015 B) Late 1980s C) 1960s to 1970s D) Early 1980s Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 5) Which one of the following was a feature of the period from the late 1980s to the late 1990s in terms of workplace diversity?

A) Shifting from compliance and focusing only on women and minorities to an issue of business survival.

B) Focusing on complying with laws and regulations, such as Title VII of the Civil Rights Act. C) Seeing workplace diversity as a core business issue, important to achieve business success, profitability, and growth.

D) Developing corporate programs to help improve self-confidence and qualifications of diverse individuals so they can "fit in."

Answer: A Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 6) In terms of workplace diversity, since 2020 DEI efforts have focused on ________.

A) complying with laws and regulations laid down by the Equal Employment Opportunity Commission B) assimilating minorities and women employees into the corporate setting C) shifting from compliance to include everyone in diversity, equity, and inclusion efforts D) workplace initiatives driven by social pressure and legal rulings Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept

2 Copyright © 2025 Pearson Education, Inc.

7) People are going to be different. The focus of managers should be to ________.

A) find ways to keep various groups within the workforce from creating conflict B) find ways to develop strong relationships with and engage the entire workforce C) make sure the practices within their departments comply with the letter of the laws governing discrimination in employment D) find commonalities among various groups displaying surface-level diversity Answer: B Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 8) Jack and Jill are discussing the new hire in their department: her hair color, skin tone, manner of dress, and accent. Jack and Jill are focusing on ________.

A) surface level diversity B) deep-level diversity C) stereotypes D) biases Answer: A Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Application 9) Which one of the following demographic characteristics reflects surface-level diversity?

A) Differences in values B) Ethnicity C) Personality D) Values Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept

3 Copyright © 2025 Pearson Education, Inc.

10) Amanda works as a technical support executive at ColorWare Systems. Which of the following factors, if true, could trigger certain stereotypes about Amanda among her co-workers, though not necessarily reflecting the way they feel or think about her?

A) Amanda does not believe in engaging in gossip about her coworkers.

B) Amanda prefers working late every evening to working over the weekend.

C) Amanda has a Swedish mother and an African American father.

D) Amanda tends to dominate discussions among her co-workers.

Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Application 11) How does surface-level diversity differ from deep-level diversity?

A) Surface-level diversity is reflected by differences in personality and values, while deep-level diversity is influenced by age and ethnic differences.

B) Surface-level diversity can affect the way people view organizational rewards and their communication with others, while deep-level diversity does not necessarily reflect the ways people think or feel.

C) Surface-level diversity can affect the way people perceive others, especially in terms of assumptions or stereotyping, while deep-level diversity may affect general behavior of people at work.

D) Surface-level diversity becomes more important as people get to know each other, while deep-level diversity becomes less relevant with increasing familiarity between people.

Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 12) ________ is an approach to addressing unique circumstances to create equal outcomes or opportunities.

A) Diversity B) Inclusion C) Equity D) Workforce diversity Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Application

4 Copyright © 2025 Pearson Education, Inc.

13) ________ is the act of creating a welcoming, affirming, and respectful workplace.

A) Diversity B) Inclusion C) Equity D) Workforce diversity Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 14) Which one of the following people management benefits arises from workplace diversity?

A) Improved system flexibility B) Potential to increase market share C) Increased understanding of the marketplace D) Better use of employee talent Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 15) Ben is selecting members for a problem-solving team. Which of the following team compositions is most likely to result in better team performance?

A) Employees with at least ten years of seniority B) Employees from the quality department C) Employees from a variety of ethnic and gender backgrounds D) An all-male or all-female team Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Application

5 Copyright © 2025 Pearson Education, Inc.

16) Which of the following benefits of workplace diversity contributes to organizational performance?

A) Reduced costs associated with high turnover, absenteeism, and lawsuits.

B) Potential source of competitive advantage from improved innovation efforts.

C) Increased understanding of the marketplace and improved ability to better market to diverse customers.

D) Ability to attract and retain employees of diverse backgrounds.

Answer: A Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 17) In his exit interview, LaQuan, a member of a minority group, mentioned that he had been passed over for promotions in favor of less qualified internal candidates. This situation relates to ________.

A) financial management B) organizational performance C) organizational strategy D) deep-level diversity Answer: B Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Application 18) When the VP of marketing selected the new product development team members, she made sure there was a mix of ages, genders, and ethnicities on the team. This VP was most concerned with achieving a better understanding of the marketplace to ________.

A) manage her people better B) enhance organization performance C) create a strategic advantage D) become legally compliant Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Application

6 Copyright © 2025 Pearson Education, Inc.

19) Which of the following benefits of workplace diversity is categorized as strategic?

A) Better use of talent B) Improved system flexibility C) Potential to improve market share D) Reduced costs associated with high turnover Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 20) Inclusion is one of the most popular and controversial topics in management.

Answer: FALSE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 21) Today the main emphasis of diversity programs is sensitivity training.

Answer: FALSE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 22) The concept of workforce diversity expanded from compliance to an issue of business survival during the early 1980s.

Answer: FALSE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 23) Workplace diversity refers exclusively to the differences between employee characteristics.

Answer: FALSE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept

7 Copyright © 2025 Pearson Education, Inc.

24) Demographic characteristics such as differences in age, gender, race, etc. reflect surfacelevel diversity among employees.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 25) Deep-level diversity refers to easily perceived differences that may trigger certain stereotypes, but that do not necessarily reflect the ways people think or feel.

Answer: FALSE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 26) Teams with diverse backgrounds performing interdependent tasks over a long period of time are more likely to experience conflict and resentment.

Answer: TRUE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 27) A focus on equity means all people are treated fairly.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 28) Employees are less likely to share information and participate in decision-making in a more diverse work environment.

Answer: FALSE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept

8 Copyright © 2025 Pearson Education, Inc.

29) One of the strategic benefits of workplace diversity is that it can be viewed as the "right" thing to do.

Answer: TRUE Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 30) Define "workplace diversity." Provide a brief description of the evolution of workplace diversity over the last five decades.

Answer: Workplace diversity is defined as the ways in which people in an organization are different from and similar to one another. This definition reinforces the belief that managers and organizations should view employees as having qualities in common as well as differences that separate them.

The following table gives a description of the timeline of the evolution of workforce diversity: 1960s to 1970s - Focus on complying with laws and regulations: Title VII of Civil Rights Act; Equal Employment Opportunity Commission; affirmative action policies and programs.

Early 1980s - Focus on assimilating minorities and women into corporate setting: Corporate programs developed to help improve self-confidence and qualifications of diverse individuals so they can "fit in."

Late 1980s - Concept of workforce diversity expanded from compliance to an issue of business survival: Publication of Workforce 2000 opened business leaders' eyes about the future composition of workforce-that is, more diverse; first use of term workforce diversity.

1990s to 2000 - Companies ramp up diversity hiring practices: Consumer brands began realizing the value of a diverse workforce that mirrors customers.

2000 to 2015 - Focus on inclusion: Organizational efforts focused on advancing the diverse workforce, working to eliminate barriers to promotions, and creating more inclusive work environments.

2015 to 2020 - Focus on equity: Spurred by movements for gender-based equal pay, equity is added as a focus for companies.

2020 forward - Increased commitment and complexity: Social pressures lead to a growth in workplace DEI initiatives. The Supreme Court adds legal protections for LGBTQ+ workers, but then rolls back Affirmative Action in higher education, highlighting the explicit tie of DEI efforts to government and increasing the politicization of DEI initiatives.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept

9 Copyright © 2025 Pearson Education, Inc.

31) Briefly explain the demographic characteristics that affect workforce diversity.

Answer: The demographic characteristics that we tend to think of when we think of diversityage, race, gender, ethnicity, etc.-are just the tip of the iceberg. These demographic differences reflect surface-level diversity, which are easily perceived differences that may trigger certain stereotypes, but that do not necessarily reflect the ways people think or feel. Such surface-level differences in characteristics can affect the way people perceive others, especially when it comes to assumptions or stereotyping. However, as people get to know one another, these surface-level differences become less important and deep-level diversity-differences in values, personality, and work preferences-becomes more important. These deep-level differences can affect the way people view organizational work rewards, communicate, react to leaders, negotiate, and generally behave at work.

Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 32) Give a brief description of the people management benefits derived from workplace diversity.

Answer: The people management benefits that organizations realize because of their workforce diversity efforts revolve around attracting and retaining a talented workforce. Organizations want a talented workforce because it's the people-their skills, abilities, and experiences who make an organization successful. Positive and explicit workforce diversity efforts can help organizations attract and keep talented diverse people and make the best of the talents those individuals bring to the workplace. In addition, another important people management benefit is that as companies rely more on employee teams in the workplace, those work teams with diverse backgrounds often bring different and unique perspectives to discussions, which can result in more creative ideas and solutions. However, recent research has indicated that such benefits might be hard to come by in teams performing more interdependent tasks over a long period of time. Such situations also present more opportunities for conflicts and resentments to build. But, as the researchers pointed out, that simply means that those teams may need stronger team training and coaching to facilitate group decision making and conflict resolution.

Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept

10 Copyright © 2025 Pearson Education, Inc.

33) What benefits does workplace diversity afford an organization in terms of its performance?

Answer: The performance benefits that organizations get from workforce diversity include cost savings and improvements in organizational functioning. The cost savings can be significant when organizations that cultivate a diverse workforce reduce employee turnover, absenteeism, and the chance of lawsuits. Organizational performance can be enhanced through workforce diversity because of improved problem-solving abilities and system flexibility. An organization with a diverse workforce can tap into the variety of skills and abilities represented and just the fact that its workforce is diverse requires that processes and procedures be more accommodative and inclusive.

Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 34) How is workplace diversity beneficial to organizations from a strategic perspective?

Answer: Workforce diversity is the key to extracting the best talent, performance, market share, and suppliers from a diverse country and world. With a diverse workforce, organizations can better anticipate and respond to changing consumer needs. Diverse employees bring a variety of points of view and approaches to opportunities, which can improve how the organization markets to diverse consumers. A diverse workforce also can be a powerful source of competitive advantage, primarily because innovation thrives in such an environment. Tapping into differing voices and viewpoints can be powerful factors in steering innovation. "Diversity powers innovation, helping businesses generate new products and services."

Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept 35) How can workplace diversity help generate new ideas?

Answer: A diverse workforce also can be a powerful source of competitive advantage, primarily because innovation thrives in such an environment. A report by Ernst & Young stated that "cultural diversity offers the flexibility and creativity we need to re-create the global economy for the twenty-first century." Tapping into differing voices and viewpoints can be a powerful factor in steering innovation. Companies that seek to lead their industries need to find ways to "stir the pot"–to generate the lively debate that can create those new ideas. And research shows that diverse viewpoints can do that.

Diff: 3 AACSB: Ethical understanding and reasoning; Written and oral communication Learning Obj.: LO 5.1: Define workplace diversity, equity, and inclusion and explain why managing them is so important.

Classification: Concept

11 Copyright © 2025 Pearson Education, Inc.

36) Which one of the following correctly reflects the characteristics of the current U.S. population?

A) Nearly one in five Americans today is an immigrant.

B) The median age of the U.S. population has risen significantly since the 1980s.

C) The Asian population in the United States is presently the largest ethnic group.

D) The Hispanic community represents nearly one-third of the total U.S. population.

Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.2: Describe the changing makeup of workplaces in the United States and around the world.

Classification: Concept 37) As chief of new product development for a U.S. consumer goods firm, Carmen should be very aware that ________ is likely to have the greatest influence on consumer preferences for the next few decades.

A) changes in religion B) the aging of the population C) declining birth rates D) increasing inflation Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.2: Describe the changing makeup of workplaces in the United States and around the world.

Classification: Application 38) The majority of the population increase in the next 35 years will come from ________.

A) higher birth rates among minority ethnic groups B) immigration of religious groups seeking political asylum C) advances in medical science that extend the life expectancy of the elderly D) immigrants and their descendants Answer: D Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.2: Describe the changing makeup of workplaces in the United States and around the world.

Classification: Concept

12 Copyright © 2025 Pearson Education, Inc.

39) By 2050, ________ percent of the population of the United States will be ________.

A) 40; 25 and under B) 25; 55 and over C) 20; 65 and over D) 15; 80 and over Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.2: Describe the changing makeup of workplaces in the United States and around the world.

Classification: Concept 40) Which of the following statements is true of the changing trends in U.S. workplaces?

A) The surge in immigration, especially over the last two decades, has flooded the United States with low-wage foreign labor.

B) Organizations must recognize that they can't expect employees to assimilate into the organization by adopting uniform attitudes and values.

C) In most U.S. metropolitan cities, more immigrants are employed in low-wage jobs like construction, cleaning, or manufacturing, than in white-collar occupations.

D) People now entering the workforce are significantly older, less ethnically diverse and/or native-born.

Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.2: Describe the changing makeup of workplaces in the United States and around the world.

Classification: Concept 41) The total world population is forecast to hit 9.7 billion by 2050, at which point the United Nations predicts the total population will either stabilize or peak after growing for centuries at an ever-accelerating rate. The main reason for this major shift is the ________.

A) unprecedented rate at which the world population is aging B) decline in birthrates as nations advance economically C) high level of mobility of the international workforce across national borders D) alarming rate of depletion of natural resources necessary for sustaining the population Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.2: Describe the changing makeup of workplaces in the United States and around the world.

Classification: Concept

13 Copyright © 2025 Pearson Education, Inc.

42) Which of the following trends has been observed in the world population in terms of aging?

A) Life expectancy is increasing and should reach 77.2 years by 2050.

B) The world's population aged 80 and over is projected to decrease 233% by 2040.

C) The world's population is growing older, but at a slower rate than it did in comparison with the previous two centuries.

D) As nations have advanced economically, birthrates have increased in proportion to the growing world population.

Answer: A Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.2: Describe the changing makeup of workplaces in the United States and around the world.

Classification: Concept 43) Trends observed in the shifting world population indicate that the average age of the world population is increasing. Also, the world's population aged over 80 is expected to more than double by the year 2040. Which of the following is a likely implication of such population trends?

A) Decreasing demands on social entitlement programs B) Increasing global savings rates C) Dwindling labor supply D) Decreasing preference for white-collar occupations Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.2: Describe the changing makeup of workplaces in the United States and around the world.

Classification: Concept 44) According to projections of the U.S. population, the ethnic groups that will exhibit the most change are the Hispanic and African American populations.

Answer: FALSE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.2: Describe the changing makeup of workplaces in the United States and around the world.

Classification: Concept 45) The main reason for the predicted stabilization of world population growth by 2050 is the decline in birthrates as nations advance economically.

Answer: TRUE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.2: Describe the changing makeup of workplaces in the United States and around the world.

Classification: Concept 14 Copyright © 2025 Pearson Education, Inc.

46) People under age 40 make up about 45% of the current workforce.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.2: Describe the changing makeup of workplaces in the United States and around the world.

Classification: Concept 47) Most babies born in the United States recently are whites of European descent.

Answer: FALSE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.2: Describe the changing makeup of workplaces in the United States and around the world.

Classification: Concept 48) By the year 2050, one in every five persons in the United States will be over 40 years old.

Answer: FALSE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.2: Describe the changing makeup of workplaces in the United States and around the world.

Classification: Concept 49) Worldwide population trends indicate that we will witness dwindling labor supply and increasing total global savings rates.

Answer: FALSE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.2: Describe the changing makeup of workplaces in the United States and around the world.

Classification: Concept

15 Copyright © 2025 Pearson Education, Inc.

50) What are two of the significant trends occurring in the composition of the global workforce?

Answer: 1) Total world population growth: The total world population reached over 8 billion people in 2022. Although the population is forecasted to reach 9.7 billion by 2050, it will take 15 years to reach 9 billion in 2037, a sign that population growth is slowing. The main reason for this plateau is the decline in birth rates as nations advance economically. However, in countries that are less developed and have less access to contraception, such as Niger and Somalia, birth rates are likely to remain high. One of the benefits is that many of these countries are likely to experience a rising proportion of young people entering the workforce, which should drive productivity and economic growth.

2) An aging population: The world's older population continues to grow at an unprecedented rate. Life expectancy in 2019 was 72.8 years old, and this is expected to jump to 77.2 years by 2050.

Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.2: Describe the changing makeup of workplaces in the United States and around the world.

Classification: Concept 51) Which of the following perceptions do employers typically have of older employees?

A) Lack of sound judgment B) Resistance to new technology C) Weak work ethic D) Better attendance Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 52) What positive perception do employers typically have of older employees?

A) Enthusiastic towards new technology B) Open to change C) Strong work ethic D) Flexible and adaptable Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept

16 Copyright © 2025 Pearson Education, Inc.

53) Given a choice between Jane, a 50-something internal candidate, and Jenny, a 20-something internal candidate, Joe selected Jane. Joe would probably say it was because ________.

A) he thought Jane would be more flexible in meeting the needs of the new position B) he thought Jenny would be uncomfortable with the technology in the new position C) he expected Jenny would ask for more time off D) he expected the quality of Jane's work would be better than Jenny's Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Application 54) Raul is concerned that when his older workers retire, he will not be able to keep their positions filled because ________.

A) older workers tend to have more longevity in their positions than do younger workers B) only older workers understand the history of their organizations C) young workers lack even minimal communication skills D) younger workers are less likely to dedicate themselves to the job to the degree that older workers do Answer: A Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Application 55) One main stereotype with respect to Gen Z workers is ________.

A) they do not value inclusion and acceptance B) they work too many hours a week C) they only care about work-life boundaries D) opportunity for advancement is all they care about Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept

17 Copyright © 2025 Pearson Education, Inc.

56) Which of the following statements is true of gender diversity in workplaces?

A) In 1950, less than 30% of the workforce was female, and today 47% of the workforce is female.

B) Today, men make up nearly two-thirds of the workforce, while women account for the remaining third.

C) Affirmative action policies have resulted in women, generally, starting their careers at higher levels than men.

D) Despite the disparity in representation in the workforce, women earn nearly as much as men do on a median basis.

Answer: A Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 57) Which one of the following is the best description of the provisions of the Civil Rights Act, Title VII? A) Prohibiting discrimination against individuals with disabilities or chronic illnesses B) Prohibiting discrimination against employees aged 40 or over C) Prohibiting the forced retirement of most employees D) Prohibiting discrimination based on race, color, religion, national origin, or gender Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 58) Jobs that require focus and the ability to tune out ambient noise might be better suited to which of these categories of workers?

A) Hearing impaired workers B) Male workers C) Female workers D) Older workers Answer: A Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Application

18 Copyright © 2025 Pearson Education, Inc.

59) The ________ has focused recent global attention on gender inequalities in the workplace.

A) government B) "#MeToo" movement C) CEO Roundtable D) women's liberation movement Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 60) U.S. federal law did not prohibit discrimination against employees on the basis of ________ until a 2020 Supreme Court ruling extended Title VII protections.

A) race B) religion C) age D) sexual orientation Answer: D Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 61) One executive at Chase bank stated that ________ employees were more productive than traditional employees.

A) Muslim B) female C) autistic D) older Answer: C Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 62) ________ is the biological heritage (including physical characteristics such as one's skin color and associated traits) that people use to identify themselves.

A) Nationality B) Ethnicity C) Culture D) Race Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 19 Copyright © 2025 Pearson Education, Inc.

63) ________ refers to the social traits that are shared by a human population.

A) Race B) Ancestry C) Nationality D) Ethnicity Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 64) Approximately ________ percent of Americans borne between 1997 and 2003 identify as LGBTQ+.

A) 7 B) 16 C) 21 D) 32 Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 65) Which of the following statements is NOT true?

A) Organizations that support LGBTQ+ employees experience greater profitability.

B) Organizations that support LGBTQ+ employees have more employee filed lawsuits.

C) Companies can support their LGBTQ+ employees by creating a supportive work climate and encouraging inclusive behavior by coworkers.

D) In 2023 Target pulled Pride merchandise from its stores after employees faced harassment and other safety concerns following calls to boycott Target for selling the merchandise.

Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Application 66) Approximately ________ of adults in the United States have some form of disability.

A) 5% B) 10% C) 20% D) 25% Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 20 Copyright © 2025 Pearson Education, Inc.

67) Which one of the following statements is true of employing disabled employees?

A) Hiring people with disabilities leads to higher employment costs and lower profit margins.

B) Workers with disabilities lack job skills and experience necessary to perform as well as their abled counterparts.

C) Employees with disabilities are exempt from potential disciplinary action, and there are high costs associated with accommodating disabled employees.

D) A person with a disability for whom workplace accommodations have been provided has the same obligations and rights as far as job performance.

Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 68) Lululemon owns a chain of fashion stores that serve men's, women's, and children's clothing categories. Jay, a motorcycle accident victim with an amputated leg, applies for a position at one of the stores in an upmarket location. Which one of the following assumptions by Lululemon would prevent them from hiring him?

A) Most workers with disabilities require no accommodation but for those who do, more than half of the workplace modifications cost $500 or less.

B) A person with a disability for whom workplace accommodations have been provided has the same obligations and rights as far as job performance is concerned.

C) Those employees with disabilities for whom accommodations have been provided do not have the same obligations and rights as far as job performance.

D) Absentee rates for sick time are virtually equal between employees with and without disabilities.

Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Application 69) One big challenge for managers of diverse workforces is to ________.

A) provide accommodations for disabilities and religious beliefs that other employees don't view as special treatment B) assure that employees do not discuss their religious beliefs with other workers C) provide accommodations for disabled workers that don't carry excessive costs D) treat all employees identically despite individual differences Answer: A Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept

21 Copyright © 2025 Pearson Education, Inc.

70) Most disabled persons need ________.

A) significant job modifications B) additional pay due to high medical costs C) extra time to complete tasks D) no workplace accommodations Answer: D Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 71) Bruce will be making a presentation to the senior management team to encourage them to support efforts to improve the company's diversity policies and practices. One of the more compelling arguments he can use is ________.

A) companies with exclusive practices experienced higher profits B) companies with inclusive practices outperformed their competitors C) federal law does not require companies to make accommodations for LBGTQ+ employees D) the company will likely lose market share if it does not improve its practices Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Application 72) U.S. federal law does not prohibit discrimination against employees on the basis of sexual orientation.

Answer: FALSE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 73) Age discrimination is prohibited by the Fair Labor Standards Act and the Americans with Disabilities Act. Answer: FALSE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 74) Employers generally tend to view older workers as not being flexible or adaptable and being more resistant to new technology.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 22 Copyright © 2025 Pearson Education, Inc.

75) Women and men now each make up almost half of the workforce in the United States.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 76) More than 40 percent of the discrimination complaints filed with the EEOC in 2022 were related to race and ethnicity.

Answer: TRUE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 77) One research study found that 80% of LGBTQ+ employees had experienced some form of bullying on the job.

Answer: FALSE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 78) Women now hold about one third of professional or management jobs.

Answer: FALSE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 79) Research suggests that workers who come from lower-class social origins are 32 percent less likely to make it to the manager level in a company, Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 80) Employers are justified if they do not hire workers with disabilities as they lack job skills and experience necessary to perform as well as their abled counterparts.

Answer: FALSE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept

23 Copyright © 2025 Pearson Education, Inc.

81) One problem with the Americans with Disabilities Act is that "disability" is defined very narrowly.

Answer: FALSE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 82) U.S. federal law does not prohibit discrimination against employees on the basis of sexual orientation.

Answer: FALSE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept 83) What are some of the fears held by employers regarding employment of disabled persons?

Describe the actual realities associated with such fears.

Answer: a. Employers fear that hiring people with disabilities leads to higher employment costs and lower profit margins. In reality, absentee rates for sick time are virtually equal between employees with and without disabilities. Also, workers' disabilities are not a factor in formulas calculating insurance costs for workers' compensation. b. Employers fear that workers with disabilities lack job skills and experience necessary to perform as well as their non-disabled counterparts. However, commonplace technologies such as the Internet and voice-recognition software have eliminated many of the obstacles for workers with disabilities; many individuals with disabilities have great problem-solving skills from finding creative ways to perform tasks that others may take for granted. c. Employers are uncertain over how to take potential disciplinary action with a worker with disabilities, not realizing that a person with a disability for whom workplace accommodations have been provided has the same obligations and rights as far as job performance. d. Employers believe that there are high costs involved with accommodating disabled employees.

In truth, most workers with disabilities require no accommodation but for those who do, more than half of the workplace modifications cost $500 or less.

Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.3: Explain the different types of diversity found in workplaces.

Classification: Concept

24 Copyright © 2025 Pearson Education, Inc.

84) What type of discrimination usually involves jokes or negative stereotypes being perpetrated about fellow employees?

A) Mockery and insults B) Discriminatory policies C) Exclusion D) Intimidation Answer: A Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.4: Discuss the challenges managers face in managing diversity, equity, and inclusion.

Classification: Concept 85) ________ is a term that describes a tendency or preference toward a particular perspective or ideology.

A) Bias B) Prejudice C) Impartiality D) Reasoning Answer: A Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.4: Discuss the challenges managers face in managing diversity, equity, and inclusion.

Classification: Concept 86) ________ refers to a preconceived belief, opinion, or judgment toward a person or a group of people.

A) Prejudice B) Impartiality C) Equanimity D) Bias Answer: A Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.4: Discuss the challenges managers face in managing diversity, equity, and inclusion.

Classification: Concept

25 Copyright © 2025 Pearson Education, Inc.

87) Judging a person on the basis of one's perception of a group to which he or she belongs is known as ________.

A) integration B) assimilation C) stereotyping D) prejudice Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.4: Discuss the challenges managers face in managing diversity, equity, and inclusion.

Classification: Concept 88) Kathleen likes cats. She believes people who own cats are independent and free spirits. She finds out Linda has a cat. Therefore, Linda is independent and free-spirited. In order, what is happening here?

A) Prejudice, stereotyping, bias B) Stereotyping, bias, prejudice C) Bias, stereotyping, discrimination D) Bias, prejudice, stereotyping Answer: D Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 5.4: Discuss the challenges managers face in managing diversity, equity, and inclusion.

Classification: Application 89) Discrimination refers to ________.

A) a preconceived belief, opinion, or judgment toward a person or a group of people B) a tendency or preference toward a particular perspective or ideology C) judging a person based on a perception of a group to which that person belongs D) someone acting out their prejudicial attitudes toward people who are the targets of their prejudice Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.4: Discuss the challenges managers face in managing diversity, equity, and inclusion.

Classification: Concept

26 Copyright © 2025 Pearson Education, Inc.

90) What type of discrimination is said to have occurred when certain actions taken by representatives of an organization deny equal opportunity to perform or unequal rewards for performance?

A) Exclusion B) Discriminatory practices or policies C) Incivility D) Intimidation Answer: B Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.4: Discuss the challenges managers face in managing diversity, equity, and inclusion.

Classification: Concept 91) Older workers in an organization are subjected to ________ if they are laid off for being highly paid and having lucrative benefits.

A) incivility B) intimidation C) discriminatory practices D) exclusion Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.4: Discuss the challenges managers face in managing diversity, equity, and inclusion.

Classification: Concept 92) Mary belongs to a group that requires women to wear long sleeves, long skirts or dresses, hair done up in a bun, and a small hat. Her coworkers often make negative comments about her appearance. In this situation, Mary is subjected to ________.

A) mockery and insults B) discriminatory policies C) exclusion D) intimidation Answer: A Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.4: Discuss the challenges managers face in managing diversity, equity, and inclusion.

Classification: Application

27 Copyright © 2025 Pearson Education, Inc.

93) Which one of the following is an example of workplace discrimination in the form of exclusion?

A) Older workers may be targeted for layoffs because they are highly paid and have lucrative benefits.

B) African American employees at some companies have found racist graffiti in their work areas.

C) Female lawyers note that male attorneys frequently cut them off or do not adequately address their comments.

D) Many women in finance claim they are assigned to marginal job roles or are given light workloads that don't lead to promotion.

Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.4: Discuss the challenges managers face in managing diversity, equity, and inclusion.

Classification: Concept 94) As a form of discrimination, incivility is said to occur when ________.

A) an employee is excluded from job opportunities or social events B) an employee belonging to a specific group is overtly threatened or bullied C) an employee's opinions are consciously ignored D) an employee is denied equal opportunity to perform Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.4: Discuss the challenges managers face in managing diversity, equity, and inclusion.

Classification: Concept 95) Which of the following examples would be considered appropriate stereotyping?

A) Assuming women to be particularly bad drivers B) Bracketing working mothers as not being committed fully to their jobs C) Assuming red-haired people have rather nasty tempers D) Asking someone from accounting to help with a budgeting problem Answer: D Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.4: Discuss the challenges managers face in managing diversity, equity, and inclusion.

Classification: Application

28 Copyright © 2025 Pearson Education, Inc.

96) In workplace jargon, the term "glass ceiling" refers to ________.

A) the perceived difference in cognitive abilities between male and female employees B) the theoretical organizational level beyond which no discrimination exists C) the cumulative difference between opportunities and rewards offered to male and female employees D) the invisible barrier that separates women and minorities from top management positions Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.4: Discuss the challenges managers face in managing diversity, equity, and inclusion.

Classification: Concept 97) Ang Li has found it rather hard to move up in her managerial career at her workplace especially when compared to how fellow Tri-Valley graduate, Adam Watson, has managed to become the regional manager of sales in the company. This suggests the presence of ________ in Li's organization.

A) goldbricking B) a self-serving bias C) a glass ceiling D) stereotyping Answer: C Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.4: Discuss the challenges managers face in managing diversity, equity, and inclusion.

Classification: Application 98) The meaning of "glass" that is used in the term "glass ceiling" signifies ________.

A) the gulf in opportunities and rewards afforded to male and female employees that can be "seen through" easily B) that the perceived barrier to top management positions is brittle and vulnerable to changes at the topmost organizational levels C) that whatever is blocking the way for women to attain top management positions is not immediately apparent D) that organizations maintain a transparent ethos when defining management roles assigned to male and female employees Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.4: Discuss the challenges managers face in managing diversity, equity, and inclusion.

Classification: Concept

29 Copyright © 2025 Pearson Education, Inc.

99) In 2022, women earned about 82% of what their male counterparts earned.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.4: Discuss the challenges managers face in managing diversity, equity, and inclusion.

Classification: Concept 100) Identify and briefly describe each type of discrimination that occurs in the workplace.

Answer: Some of the more common forms of workplace discrimination are: a. discriminatory practices or policies - actions taken by representatives of the organization that deny equal opportunity to perform or unequal rewards for performance b. sexual harassment - unwanted sexual advances and other verbal and physical conduct of a sexual nature that create a hostile or offensive work environment c. intimidation - overt threats or bullying directed at members of specific groups of employees d. mockery or insults - jokes or negative stereotypes; sometimes the result of jokes taken too far e. exclusion - exclusion of certain people from job opportunities, social events, discussions, or informal mentoring; can occur unintentionally f. incivility - disrespectful treatment, including behaving in an aggressive manner, interrupting a person, or ignoring his or her opinions Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.4: Discuss the challenges managers face in managing diversity, equity, and inclusion.

Classification: Concept 101) Explain the concept of the "glass ceiling" in workplaces. What practices have aided in the creation of the "glass ceiling"?

Answer: Research has suggested that women are more likely than men to start out in entry-level positions, even though they have the same educational qualifications as men. In the 1980s, the term glass ceiling was first used in a Wall Street Journal article to refer to the invisible barrier that separates women and minorities from top management positions. The idea of a "ceiling" means that there is something blocking upward movement and the idea of "glass" is that whatever's blocking the way isn't immediately apparent.

Research on the glass ceiling has looked at identifying the organizational practices and interpersonal biases that have blocked women's advancement. Findings from those studies have ranged from lack of mentoring, sex stereotyping, views that associate masculine traits with leader effectiveness, and bosses' perceptions of family-work conflict.

Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.4: Discuss the challenges managers face in managing diversity, equity, and inclusion.

Classification: Concept

30 Copyright © 2025 Pearson Education, Inc.

102) Which of these is NOT one of the five stages of DEI strategy?

A) Awareness B) Action C) Compliance D) Tactical Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.5: Describe various workplace diversity, equity, and inclusion initiatives.

Classification: Concept 103) Which of these social support functions can be provided by a good mentor?

A) Gives advice on organizational culture B) Provides exposure to influential people C) Sponsors the protégé by nominating for promotions D) Acts as a role model Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.5: Describe various workplace diversity, equity, and inclusion initiatives.

Classification: Concept 104) Which of these career development functions can be provided by a good mentor?

A) Lobbies for the protégé to get good assignments B) Counsels the protégé on work and life balance C) Shares personal experiences when relevant D) Acts as a role model Answer: A Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.5: Describe various workplace diversity, equity, and inclusion initiatives.

Classification: Concept 105) Diversity training programs work better when they ________.

A) are combined with punitive actions for noncompliance B) occur every five or six years to reinforce beliefs C) are reinforced by top management commitment to diversity D) are used primarily for new hires and not current employees Answer: C Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.5: Describe various workplace diversity, equity, and inclusion initiatives.

Classification: Application

31 Copyright © 2025 Pearson Education, Inc.

106) Voluntary, employee-led groups that share distinctive qualities, interests or goals are known as ________.

A) minority groups B) affinity groups C) ethnic balance groups D) identity groups Answer: B Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.5: Describe various workplace diversity, equity, and inclusion initiatives.

Classification: Application 107) One criticism of employee referrals for open positions is ________.

A) it can lead to a lack of organizational diversity B) employees hired through referrals are often unproductive C) the job candidate pool can become too diverse D) turnover among referral hires is extremely high Answer: A Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.5: Describe various workplace diversity, equity, and inclusion initiatives.

Classification: Application 108) ________ is a process whereby an experienced organizational member provides advice and guidance to a less-experienced member.

A) Delegating B) Integration C) Mentoring D) Assimilation Answer: C Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.5: Describe various workplace diversity, equity, and inclusion initiatives.

Classification: Concept 109) Mentors help their protégés by providing both social support and career development.

Which of these is an example of social support?

A) Introduce the protégé to influential managers within the firm B) Promote the protégé for assignments outside the protégé's regular duties C) Groom the protégé for higher-level positions with the firm D) Shares personal experiences with the protégé Answer: D Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.5: Describe various workplace diversity, equity, and inclusion initiatives.

Classification: Concept 32 Copyright © 2025 Pearson Education, Inc.

110) Executives at Macromix have initiated a diversity skills training program to educate employees about the importance of diversity at the workplace. Which one of the following should be the first step to be implemented in the program?

A) Making employees aware of the assumptions and biases they may have B) Teaching people specific skills on how to communicate effectively with their fellow employees C) Increasing employees' sensitivity and openness to those who are different from them D) Training employees on how to work effectively in a diverse work environment Answer: A Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.5: Describe various workplace diversity, equity, and inclusion initiatives.

Classification: Application 111) Groups made up of employees connected by some common dimension of diversity are known as employee ________.

A) work councils B) resource groups C) assistance teams D) care programs Answer: B Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.5: Describe various workplace diversity, equity, and inclusion initiatives.

Classification: Concept 112) A mentor can serve as a sounding board for ideas a new employee might be reluctant to share with their supervisor.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.5: Describe various workplace diversity, equity, and inclusion initiatives.

Classification: Concept 113) The integrated stage of DEI strategy occurs when DEI becomes part of everything a company does.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.5: Describe various workplace diversity, equity, and inclusion initiatives.

Classification: Concept

33 Copyright © 2025 Pearson Education, Inc.

114) Minority employees often feel singled out for special treatment because of all the attention lavished on them.

Answer: FALSE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.5: Describe various workplace diversity, equity, and inclusion initiatives.

Classification: Concept 115) Give a brief description of diversity skills training in workplaces.

Answer: Our human nature is to not accept or approach anything that's different from us. But it doesn't make discrimination of any type or form acceptable. We live and work in a multicultural context, so the challenge for organizations is to find ways for employees to be effective in dealing with others who aren't like them. That's where diversity skills training, specialized training to educate employees about the importance of diversity and teach them skills for working in a diverse workplace, comes in.

Most diversity skills training programs start with diversity awareness training. During this type of training, employees are made aware of the assumptions and biases they may have. Once we recognize that, we can look at increasing our sensitivity and openness to those who are different from us. Sounds simple, but it's not. But if people can be taught to recognize that they're prejudging people and to consciously address that behavior, then the diversity awareness training has been successful. Then, the next step is diversity skills training, in which people learn specific skills on how to communicate and work effectively in a diverse work environment.

Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 5.5: Describe various workplace diversity, equity, and inclusion initiatives.

Classification: Concept

34 Copyright © 2025 Pearson Education, Inc.

Management, 16e (Robbins) Chapter 6 Managing in a Global Environment 1) Only speaking one language is one sign that a nation suffers from ________.

A) parochialism B) ethnocentrism C) polycentrism D) geocentrism Answer: A Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Concept 2) Parochialism is a tendency to ________.

A) think highly of the foreign country in which the organization is doing business B) focus on best approaches and people from around the globe C) view the world solely through one's own eyes and perspectives D) let employees in the host country figure out how best to do things Answer: C Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Concept 3) Bill Sanderson, a manager in a manufacturing firm in New York has a tendency to view the world only through his U.S.-based perspective. What can be deduced about his attitude?

A) He has an elitist attitude.

B) He has a polycentric attitude.

C) He has a parochialistic attitude.

D) He has a geocentric attitude.

Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Application

1 Copyright © 2025 Pearson Education, Inc.

4) An ethnocentric attitude ________.

A) prompts managers to have a global view and look for the best approaches and people regardless of origin B) is the belief that the home country has the best work approaches and practices C) is the view that employees in the host country know the best work approaches and practices D) gives a manager a much broader understanding of what it takes to manage in a global environment Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Concept 5) A(n) ________ attitude is characterized by parochialism.

A) geocentric B) acculturated C) multilinguistic D) ethnocentric Answer: D Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Concept 6) While talking with her advisor at the university, Jane deduces that she has a(n) ________ attitude, as she has never traveled abroad and relates well only to people from her home country.

A) regiocentric B) polycentric C) ethnocentric D) geocentric Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Application

2 Copyright © 2025 Pearson Education, Inc.

7) An ethnocentric attitude stems from ________.

A) nationalism B) parochialism C) polycentrism D) geocentrism Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Concept 8) Melanie joined an international student association in order to better understand the views of students from other countries. She is trying to become more ________ in her attitude.

A) parochialistic B) polycentric C) ethnocentric D) geocentric Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Application 9) A manager who wishes to be successful in international business should avoid a(n) ________ attitude.

A) multicultural B) multiracial C) ethnocentric D) geocentric Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Concept

3 Copyright © 2025 Pearson Education, Inc.

10) Managers with a(n) ________ attitude view every foreign operation as different and hard to understand.

A) geocentric B) polycentric C) ethnocentric D) regiocentric Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Concept 11) A(n) ________ attitude is the view that employees in the host country know the best practices for running their operations.

A) ethnocentric B) polycentric C) geocentric D) regiocentric Answer: B Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Concept 12) Samanex Corporation maintains production facilities in 13 different countries on three continents. Each facility is managed by a native of the country where it is located. This practice is indicative of a(n) ________ attitude.

A) ethnocentric B) geocentric C) polycentric D) multicentric Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Application

4 Copyright © 2025 Pearson Education, Inc.

13) In today's global environment, managers must have a(n) ________ attitude to be successful.

A) ethnocentric B) parochial C) polycentric D) geocentric Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Concept 14) People with a parochial attitude do not recognize that others have different ways of living and working.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Concept 15) Managers with an ethnocentric attitude do not trust foreign employees with key decisions or technology.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Concept 16) Managers with a polycentric attitude tend to view every foreign operation as different and hard to understand.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Concept 17) The polycentric attitude is a world-oriented view focusing on using the best approaches and people from around the globe.

Answer: FALSE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Concept 5 Copyright © 2025 Pearson Education, Inc.

18) Define parochialism and discuss why parochialism is a problem for some managers, and discuss reasons why it is important to overcome parochialism in today's business environment.

Answer: Parochialism is typically defined as viewing the world solely through one's own eyes and perspectives. People with a parochial attitude do not recognize that others have different ways of living and working. Parochialism is a significant obstacle for managers working in a global business world. If managers fall into the trap of ignoring others' values and customs and rigidly keep on applying an attitude of "ours is better than theirs" to foreign cultures, they'll find it difficult to compete with other organizations around the world. Therefore, it is important to overcome parochialism in order to succeed in today's global environment.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Critical thinking 19) List and discuss the three attitudes managers might have toward international business.

Answer: a. Ethnocentric attitude - This is the parochialistic belief that the best work approaches and practices are those of the home country. Managers with an ethnocentric attitude believe that people in foreign countries do not have the needed skills, expertise, knowledge, or experience to make the best business decisions as people in the home country do. They don't trust foreign employees with key decisions. b. Polycentric attitude - This is the view that employees in the host country know the best work approaches and practices for running their business. Managers with a polycentric attitude view every foreign operation as different and hard to understand. Thus, these managers are likely to leave their foreign facilities alone and let foreign employees figure out how best to do things. c. Geocentric attitude - This is a world-oriented view that focuses on using the best approaches and people from around the globe. Managers with this type of attitude believe that it's important to have a global view both at the organization's headquarters in the home country and in the various foreign work facilities. Major issues and decisions are viewed globally by looking for the best approaches and people regardless of origin.

Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 6.1: Define globalization, nationalism, and parochialism; and contrast ethnocentric, polycentric, and geocentric attitudes.

Classification: Concept

6 Copyright © 2025 Pearson Education, Inc.

20) The ________ was formed by 28 member countries with the primary motivation of reasserting the region's economic position against the United States and Japan.

A) African Union B) European Union C) Central America Free Trade Agreement D) Association of South-East Asian Nations Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 21) The single European Union currency is called the ________.

A) deutschmark B) krona C) pound D) euro Answer: D Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 22) The World Trade Organization was formed in the year ________.

A) 1995 B) 1967 C) 1971 D) 1983 Answer: A Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 23) Heinrich, a purchaser for an optics company in Germany, must place an order for materials for use in its production process. He is most likely to order from a company ________.

A) within the European Union because there would be no barriers to trade B) in the United States because we have the same quality as any European company C) in Switzerland because the Swiss are known for their fine detail work D) in Asia because labor is cheaper there Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Application

7 Copyright © 2025 Pearson Education, Inc.

24) The World Trade Organization evolved from which of the following?

A) Mercosur B) General Agreement on Tariffs and Trade C) Truman Doctrine D) Marshall Plan Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 25) The North American Free Trade Agreement included ________.

A) Mexico, Canada, and the United States B) Canada, Mexico, the United States, and Costa Rica C) the United States, Canada, Mexico, and Honduras D) Canada, Mexico, Panama, and the United Sates Answer: A Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 26) The World Trade Organization ________.

A) advises developing countries on issues of trade barriers B) promotes long-term economic development and poverty reduction C) exists to help countries conduct trade through a system of rules D) facilitates trade among third-world countries and developed nations Answer: C Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 27) The United States renegotiated trade agreements with Mexico and Canada. The new agreement is known as the ________.

A) Canadian American Free Trade Alliance B) United States-Mexico-Canada Agreement C) U.S. Free Trade Agreement of 2019 D) North America Free Trade Agreement Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept

8 Copyright © 2025 Pearson Education, Inc.

28) The Association of Southeast Asian Nations is a trading alliance of ________.

A) eight Southeast Asian nations and Japan B) eight Southeast Asian nations C) ten Southeast Asian nations D) ten Southeast Asian nations and China Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 29) The purpose of the World Trade Organization is to ________.

A) facilitate trade among member nations through a system of rules B) recommend legislation to lessen the advantages of more advanced nations relative to developing countries C) manage foreign currency exchanges to alleviate the effects of inflation D) enforce quotas and tariffs imposed by member nations Answer: A Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 30) The purpose of the OECD is ________.

A) to settle disputes arising from trade between developed and third-world countries B) to help member countries achieve sustainable economic growth C) to raise the standard of living in South American countries D) to control interest rates and inflation in member countries Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 31) Critics of globalization claim that ________.

A) global trade destroys jobs and the natural environment B) it favors developed countries over third-world countries C) shifting jobs to developing countries harms the economies of member nations D) it has too little power to be effective Answer: A Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept

9 Copyright © 2025 Pearson Education, Inc.

32) The International Monetary Fund is an organization that ________.

A) rules on disputes over tariffs and subsidies B) helps countries conduct trade through a system of rules C) provides technical advice to developing countries D) promotes international monetary cooperation Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 33) The AfCFTA was formed to ________.

A) settle disputes arising from trade between African nations B) boost intra-African trade C) raise the standard of living in South American countries D) control interest rates and inflation in member countries Answer: B Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 34) Cypress Exports would like to establish retail outlets in Mongrovia, a quasi-democratic African country with a growing middle class. But the national and local officials all want "gratuities" to process the applications for permits. Cypress Exports should appeal to the ________.

A) World Trade Organization B) International Monetary Fund C) African Union D) Organization for Economic Cooperation and Development Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Application 35) The worldwide COVID-19 pandemic highlighted several vulnerabilities of globalization when it caused disruption to supply chains and trade.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept

10 Copyright © 2025 Pearson Education, Inc.

36) Brexit refers to the UK's decision to leave the European Union.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 37) Most experts consider President Trump to be a proponent of free trade.

Answer: FALSE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 38) When the original members formed the European Union in 1992, the primary motivation was to reassert the region's economic position against the United States and Japan.

Answer: TRUE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 39) The United States, Canada, Mexico, and Honduras are parties to the North American Free Trade Association.

Answer: FALSE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 40) Explain some of the provisions of the USMCA. Answer: The USMCA's provisions included giving the United States increased access to Canada's dairy markets, establishing new labor requirements for Mexico, increasing environmental regulations, and updating intellectual property and data trade protections.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 41) What is the purpose of the WTO? Answer: The goal of the World Trade Organization is to help countries conduct trade through a system of rules. It plays a role in monitoring, promoting, and protecting global trade.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 11 Copyright © 2025 Pearson Education, Inc.

42) What is the International Monetary Fund? What does it do?

Answer: The IMF is an organization of 190 countries that promotes international monetary cooperation and provides member countries with policy advice, temporary loans, and technical assistance to establish and maintain financial stability and to strengthen economies. The IMF offers advice to countries and governments to get them through difficulties.

Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 43) What is the World Bank and what does it do?

Answer: The World Bank is an international financial institution that provides financial and technical assistance to countries around the world with the goal of promoting sustainable economic growth, reducing poverty, and improving living standards.

Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 44) What is the African Continental Free Trade Area (2021)?

Answer: The African Continental Free Trade Area (AfCFTA) created the largest free trade area in the world which includes 54 countries. The agreement allows tariff-free trade across the continent, boosting intra-African trade and leading to local business growth and job creation as well as more opportunities for foreign investment and international trade.

Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.2: Describe the history of globalization.

Classification: Concept 45) The advantages of operating globally include ________.

A) higher profits B) higher employee satisfaction C) higher stock trading prices D) lower employee turnover Answer: A Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.3: Summarize the case for and against globalization.

Classification: Concept

12 Copyright © 2025 Pearson Education, Inc.

46) The theory that maintains each country should produce the goods or services for which it has the lowest opportunity costs and engage in trade to obtain goods and services produced by other nations is called the ________.

A) Zero Sum Trade Theory B) Opportunity Trade Theory C) Theory of Comparative Advantage D) Theory of Absolute Advantage Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.3: Summarize the case for and against globalization.

Classification: Concept 47) The period of time from the mid-1940s to the early 2000s is considered to be ________.

A) pro-socialist B) the era of trade barriers C) anti-globalization D) pro-globalization Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.3: Summarize the case for and against globalization.

Classification: Concept 48) One major criticism of globalization is that it ________.

A) pushed prices of goods higher B) caused wage stagnation in the United States C) created supply chain problems D) forced the implementation of tariffs Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.3: Summarize the case for and against globalization.

Classification: Concept 49) In many nations most of the benefits of free trade have gone to ________.

A) large global corporations B) the middle class C) people living below the poverty line D) politicians and governments Answer: A Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.3: Summarize the case for and against globalization.

Classification: Concept

13 Copyright © 2025 Pearson Education, Inc.

50) Research shows that most of the jobs lost in the manufacturing sector are due to ________.

A) free trade B) increased regulation C) higher trade barriers D) increased automation Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.3: Summarize the case for and against globalization.

Classification: Concept 51) Globalization is blamed for ________.

A) higher fuel prices B) increased political power C) greater wage inequality D) lower standards of living Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.3: Summarize the case for and against globalization.

Classification: Concept 52) Most Americans only speak English.

Answer: TRUE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.3: Summarize the case for and against globalization.

Classification: Concept 53) Europeans have an advantage over Americans in global organizations since they are usually multilingual.

Answer: TRUE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.3: Summarize the case for and against globalization.

Classification: Concept 54) Free trade is the primary reason for higher unemployment in the U.S. manufacturing sector.

Answer: FALSE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.3: Summarize the case for and against globalization.

Classification: Concept

14 Copyright © 2025 Pearson Education, Inc.

55) The Biden administration has continued the Trump era trade policies, prioritizing protecting the rights of U.S. workers over those of exporters or consumers.

Answer: TRUE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.3: Summarize the case for and against globalization.

Classification: Concept 56) Most experts believe that globalization will eventually die out as countries become more nationalistic.

Answer: FALSE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.3: Summarize the case for and against globalization.

Classification: Concept 57) Despite the recent backlash, explain why globalization will continue to be a powerful force in the world.

Answer: Global firms have spent billions of dollars building the infrastructure and supply chains used to support their current operations. These firms also employ millions of workers worldwide. These two reasons limit the political will to dismantle globalization. In addition, while some industries blame globalization for job loss, the primary culprit is automation.

Globalization also benefits everyone since it keeps consumer prices down. Lastly, it pushes corporate profits higher which makes investors happy. All of these factors guarantee some level of globalization will continue to exist.

Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.3: Summarize the case for and against globalization.

Classification: Concept 58) Explain how globalization affects someone who wants to be a manager in a global firm.

Answer: Managers need to possess the skills in demand by global firms. These include an understanding and sensitivity to cultural differences, flexibility in dealing with people from different backgrounds and an openness to new ideas. Ideally, a manager that speaks more than one language will have an advantage over someone who only speaks one language. Managers that understand global markets and know how a business successfully enters other countries will be in high demand.

Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.3: Summarize the case for and against globalization.

Classification: Concept

15 Copyright © 2025 Pearson Education, Inc.

59) According to the text, which of the following is a typical definition of a multinational corporation?

A) It is a company that maintains operations in multiple countries.

B) It is a company that maintains franchises in multiple countries.

C) It is a company that has multiple home bases and manufacturing plants.

D) It is a company that pays corporate taxes in at least two countries.

Answer: A Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Concept 60) Which one of the following would be considered a multinational corporation?

A) Westernet buys electricity from Canada and provides it to customers in Washington State.

B) Sherri's Shipping transports manufactured goods between the United States and Asia, maintaining offices in both countries.

C) Willy's Websites maintains Internet sites for clients the world over from his offices in New Jersey.

D) Betty's Bonnets makes women's hats in Jamaica and sells them to retailers in seven Caribbean countries.

Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Application 61) The ________ decentralizes its management and other decisions to the local country.

A) multidomestic corporation B) global company C) transnational organization D) borderless organization Answer: A Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Concept 62) Which of the following is a feature of a multidomestic corporation?

A) All decisions are made in the home country.

B) Reflects an ethnocentric attitude.

C) Eliminates artificial geographic borders.

D) Has a decentralized management.

Answer: D Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Concept 16 Copyright © 2025 Pearson Education, Inc.

63) Multidomestic corporations reflect the ________.

A) ethnocentric attitude B) polycentric attitude C) geocentric attitude D) xenophobic attitude Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Concept 64) Which of the following is a multinational corporation that tailors marketing strategies to the host country's unique characteristics?

A) Borderless organization B) Global company C) Multidomestic corporation D) Transnational organization Answer: C Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Concept 65) Multidomestic corporations ________.

A) maintain operations in multiple countries, but do not allow managers in each country to make their own decisions B) reflect ethnocentric attitudes C) decentralize management and other decisions to the local country D) attempt to replicate their domestic successes by managing foreign operations from the home country Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Concept

17 Copyright © 2025 Pearson Education, Inc.

66) Which one of the following represents the basic difference between multidomestic corporations and global companies?

A) Multidomestic corporations typically do business with more countries than global companies.

B) Multidomestic corporations are run by global companies but must be owned by a local, national company.

C) Multidomestic corporations decentralize management to the local country, while global companies centralize management in the home country.

D) Multidomestic corporations reflect an ethnocentric attitude, while global companies reflect a polycentric attitude.

Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Concept 67) As the international operations of their firm continues to grow, Theodore and James have realized that decentralized management using foreign nationals to run operations in the host countries works best. Their firm has developed into a ________ organization.

A) transnational B) multidomestic C) borderless D) global Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Application 68) A corporation that uses an arrangement that eliminates artificial geographical barriers is known as a(n) ________.

A) ethnocentric company B) polycentric organization C) borderless organization D) global company Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Concept

18 Copyright © 2025 Pearson Education, Inc.

69) Marco works for a multinational corporation as a plant manager but must receive approval from the home office for any management changes to production processes. Marco most likely works for a ________.

A) global company B) multidomestic corporation C) polycentric company D) transnational company Answer: A Diff: 2 AACSB: Application of knowledge; Analytical thinking Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Application 70) A global company reflects the ________.

A) pancentric attitude B) ethnocentric attitude C) geocentric attitude D) polycentric attitude Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Concept 71) Granval manages a production facility in Aughmenistan for a multinational company headquartered in Paris. His Paris bosses emphasize the importance of operating his plant efficiently so as to conserve scarce resources. It is likely Granval's employer is a ________.

A) polycentric company B) global company C) transnational company D) multidomestic corporation Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Application

19 Copyright © 2025 Pearson Education, Inc.

72) If Shana's company decides to open another company in France but centralizes its management in the United States, it would be considered a ________.

A) transnational corporation B) global company C) borderless organization D) multidomestic corporation Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Application 73) If Marla's company changed its organizational structure from one based on country to one based on industry groups, it would best be considered a ________.

A) borderless organization B) foreign subsidiary C) global company D) multidomestic corporation Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Application 74) Transnational organizations are also known as ________.

A) ethnocentric organizations B) polycentric organizations C) borderless organizations D) multidomestic organizations Answer: C Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Concept 75) A likely long-term impact of the COVID-19 pandemic is the growth of borderless organizations.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Concept

20 Copyright © 2025 Pearson Education, Inc.

76) A transnational organization reflects an ethnocentric attitude.

Answer: FALSE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Concept 77) Explain the differences between a multidomestic corporation, a global company, and a borderless organization. Include examples of companies for each of the types of organizations discussed.

Answer: a. A multidomestic corporation is a multinational corporation (MNC) that decentralizes management and other decisions to the local country. Local employees are hired to manage the business and marketing strategies are tailored to that country's unique characteristics. This type of globalization reflects the polycentric attitude. Many consumer companies manage their global businesses using this approach because they must adapt their products and services to meet the needs of the local markets. With operations in almost every country on the globe, Switzerlandbased Nestle's managers match the company's products to its consumers. In parts of Europe, Nestle sells products that are not available in the United States or Latin America. b. A global company centralizes its management and other decisions in the home country. These companies treat the world market as an integrated whole and focus on the need for global efficiency. Although these companies may have considerable global holdings, management decisions with company-wide implications are made from headquarters in the home country.

This approach to globalization reflects the ethnocentric attitude. Some examples of companies that can be considered global companies include Sony, Deutsche Bank AG, and Merrill Lynch. c. Other companies are going international by eliminating structural divisions that impose artificial geographical barriers. This type of MNC is called a transnational or borderless organization, and reflects a geocentric attitude. Managers choose this form of international organization to increase efficiency and effectiveness in a competitive global marketplace.

For example, IBM dropped its organizational structure based on country and reorganized into industry groups. Thomson SA, based in France, has eight major locations around the globe.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 6.4: Explain the different types of international organizations.

Classification: Concept

21 Copyright © 2025 Pearson Education, Inc.

78) Melanie would like to become a part of the global retail community. Which of the following options should Melanie consider as her first step?

A) She should engage in global sourcing.

B) She should engage in licensing.

C) She should engage in franchising.

D) She should develop strategic alliances with foreign companies.

Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Application 79) Theodore and James decide to enter into an agreement with a firm in Europe allowing them to use the rights to their software, brand name, and software specifications in return for a lump sum payment. The firm is a service organization that plans to use the software to assist its customers. Their agreement is a(n) ________.

A) export agreement B) licensing agreement C) franchise agreement D) import agreement Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Application 80) Melanie had been buying raw materials locally but she is being underpriced by her competitors. She thinks there might be lower-cost materials elsewhere. What advice would you give Melanie?

A) She should engage in global sourcing.

B) She should engage in licensing.

C) She should engage in franchising.

D) She should develop strategic alliances with foreign companies.

Answer: A Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Application

22 Copyright © 2025 Pearson Education, Inc.

81) Nathan uses ethnic craftsmen to make high quality oak furniture. If he decides to offer his furniture for sale in other countries, he will be engaging in ________.

A) importing B) exporting C) licensing D) franchising Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Application 82) Natalya operates a retail store in Romania. She buys consumer electronics from vendors in China and Japan to sell in her store. Natalya is engaging in ________.

A) global sourcing B) licensing C) importing D) franchising Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Application 83) Harley Davidson makes motorcycles, but in its retail stores it also sells clothing, motorcycle accessories, jewelry, and many related products carrying the Harley trademarks made by other companies. Harley Davidson is engaging in ________.

A) global sourcing B) exporting C) franchising D) licensing Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Application

23 Copyright © 2025 Pearson Education, Inc.

84) Gao and James decide to enter into an agreement with a firm in Europe allowing them to use their software, brand name, and business methods in return for a lump sum payment and a percentage of sales. The European firm is a service organization that plans to use the software to serve its customers. Their agreement is a(n) ________.

A) export agreement B) licensing agreement C) franchise agreement D) import agreement Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Application 85) Adam has been hired by an organization that has a partnership with a foreign company. Both the partners share resources and knowledge while developing new products. Adam's organization has formed a ________.

A) licensing company B) franchising company C) strategic alliance D) foreign subsidiary Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Application 86) In 1984 Toyota and General Motors formed a company called NUMMI to build cars carrying both the General Motors and Toyota brands. NUMMI is an example of a(n) ________.

A) equity strategic alliance B) joint venture C) global venture D) nonequity strategic alliance Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Application

24 Copyright © 2025 Pearson Education, Inc.

87) Joint ventures are a type of ________.

A) license B) franchise C) foreign subsidiary D) strategic alliance Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Concept 88) A domestic firm and a foreign firm sharing the cost of developing new products or building production facilities in a foreign country constitute a ________.

A) franchising agreement B) strategic alliance C) foreign subsidiary D) joint venture Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Concept 89) Melamark LLC has customers on four continents. It would like to increase its global presence as a supplier to its global customers. The most expensive option would be to ________.

A) form a strategic alliance with an existing company in another country B) directly invest in a production facility in another country C) export from a single production plant D) license producers in several countries Answer: B Diff: 2 AACSB: Diverse and multicultural work environments; Application of knowledge Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Application

25 Copyright © 2025 Pearson Education, Inc.

90) Melamark's advisor on global affairs is concerned that ________ carries too much risk.

A) a strategic alliance B) franchising C) setting up a foreign subsidiary D) a joint venture Answer: C Diff: 2 AACSB: Diverse and multicultural work environments; Application of knowledge Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Application 91) Part of Jose's company's business plan involves setting up a foreign subsidiary. This arrangement involves ________.

A) making products domestically and selling them abroad B) Jose's company giving the foreign subsidiary the right to use its brand name C) directly investing in a foreign country D) minimum global investment Answer: C Diff: 2 AACSB: Diverse and multicultural work environments; Application of knowledge Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Application 92) Managers who want to get into a global market with minimal investment start with global sourcing.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Concept 93) The process of exporting involves acquiring products made abroad and selling them domestically.

Answer: FALSE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Concept

26 Copyright © 2025 Pearson Education, Inc.

94) Licensing and franchising are similar approaches involving one organization giving another organization the right to use its brand name, technology, or product specifications in return for a lump sum payment or a fee usually based on sales.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Concept 95) Licensing is primarily used by service organizations and franchising is primarily used by manufacturing organizations.

Answer: FALSE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Concept 96) A strategic alliance is a partnership between an organization and a foreign company partner in which both share resources and knowledge in developing new products or building production facilities.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Concept

27 Copyright © 2025 Pearson Education, Inc.

97) Describe the different approaches that a company may use when it decides to go international.

Answer: Managers who want to get into a global market with minimal investment may start with global sourcing (also called global outsourcing). This involves purchasing materials or labor from around the world wherever it is cheapest. The goal here is to take advantage of lower costs to be more competitive.

The next step may involve exporting the organization's products to other countries-that is, making products domestically and selling them abroad. In addition, an organization might import, which involves acquiring products made abroad and selling them domestically. Both usually entail minimal investment and risk.

Managers also might use licensing or franchising, which are similar approaches involving one organization giving another organization the right to use its brand name, technology, or product specifications in return for a lump sum payment or a fee usually based on sales. The only difference is that licensing is primarily used by manufacturing organizations that make or sell another company's products and franchising is primarily used by service organizations that want to use another company's name and operating methods.

When an organization has been doing business internationally for a while and has gained experience in international markets, managers may decide to make a greater direct foreign investment. One way to increase investment is through a strategic alliance, which is a partnership between an organization and a foreign company partner in which both share resources and knowledge in developing new products or building production facilities.

Finally, managers may choose to directly invest in a foreign country by setting up a foreign subsidiary as a separate and independent facility or office. This subsidiary can be managed as a multidomestic organization (local control) or as a global organization (centralized control). This arrangement involves the greatest commitment of resources and poses the greatest amount of risk.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Concept 98) Who are whistle-blowers? What can managers do to protect them?

Answer: Whistle-blowers are individuals who raise ethical concerns or issues in an organization. These individuals are a key part of a company's ethics program.

It is important for managers to assure employees who raise ethical concerns that they will face no personal or career risks. In order to facilitate this, managers can set up toll-free ethics hotlines.

Managers also need to create a culture in which bad news can be heard and acted on before it is too late. The Sarbanes-Oxley Act offers some legal protection to whistle-blowers. According to one of its provisions, any manager who retaliates against an employee for reporting violations faces a stiff penalty of a 10-year jail sentence.

Diff: 3 AACSB: Ethical understanding and reasoning; Written and oral communication Learning Obj.: LO 6.5: Describe the structures and techniques organizations use as they go international.

Classification: Concept 28 Copyright © 2025 Pearson Education, Inc.

99) Unlike the United States, the change from one regime to another in foreign countries can be less than peaceful. Differences in the ________ environment can lead to uncertainty and risk for global managers.

A) economic B) cultural C) political/legal D) demographic Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Concept 100) The Foreign Corrupt Practices Act forbids U.S. citizens to offer bribes to officials in other countries, but some of those officials depend on bribes to supplement their meager incomes. This particular dilemma is part of the ________ environment.

A) demographic B) political/legal C) economic D) cultural Answer: B Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Application 101) If the rate of inflation in Tomturkistan increased suddenly, what effect would that have on the exchange rate of Tomturkistan currency for U.S. dollars?

A) More U.S. dollars would be needed to purchase the same quantity of Tomturkistan goods as before inflation.

B) One U.S. dollar would purchase more Tomturkistan currency.

C) Tomturkistan currency would purchase more U.S. goods than before.

D) There would be no change; inflation is a domestic problem only.

Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Application

29 Copyright © 2025 Pearson Education, Inc.

102) A ________ economy is one in which resources are primarily owned and controlled by the private sector.

A) free market B) planned C) command D) democratic Answer: A Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Concept 103) In Malbadia, a central committee formed by the political powers decides what products and how many of each will be produced. This situation is typical of a ________ economy.

A) free market B) foreign C) free enterprise D) planned Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Application 104) For American company Leather Exporters, first quarter sales in Italy were higher compared to the preceding year but profits were down. What could account for this difference?

A) A difference in the currency exchange rate.

B) A change in the national leadership in Italy.

C) A cultural change in Italian society.

D) A reduction in trade barriers with Italy.

Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Application

30 Copyright © 2025 Pearson Education, Inc.

105) Coca-Moka, an American beverage company, sells its soft drinks in Thirstania. After earning large profits, Coca-Moka discovered it could not export those profits back to its American banks because of the ________ in Thirstania.

A) tax policies B) exchange rate C) inflation rate D) export policies Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Application 106) Hofstede's Five Dimensions of National Culture would predict which of the following?

A) American employees working in the United States prefer to work in teams and to share team rewards.

B) The French employees believe that rank should have its privileges.

C) An Italian manager will readily and comfortably make decisions with few acts; he is willing to take great risks.

D) A manager in Sweden will be driven to compete, to excel, and to amass wealth.

Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Application 107) Jack moved to China to manage his company's production facility there. Immediately he instituted the company practice of recognizing an employee of the month. The Chinese employees were horrified. Why might this be so?

A) The employees are acting on their national cultural behavior patterns.

B) Each employee took the competition seriously and wanted to win the recognition.

C) None of them wanted to lose face by not being recognized.

D) The company culture was stronger than their national culture.

Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Application

31 Copyright © 2025 Pearson Education, Inc.

108) Alfredo believes that the CEO is no better than the janitor of the organization and neither should receive preferential treatment. Using the GLOBE model, what can we infer about Alfredo's culture?

A) Alfredo's culture is high in power distance.

B) Alfredo's culture is high in assertiveness.

C) Alfredo's culture is low in low in humane orientation.

D) Alfredo's culture is low in power distance.

Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Application 109) Bettina likes to know the end from the beginning. She gathers as much information as possible before making a decision. Bettina likely lives in a culture with high ________.

A) power distance B) uncertainty avoidance C) future orientation D) performance orientation Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Application 110) Caron admits she's a tough cookie. She thrives in an environment in which employees compete against each other for big rewards. It is likely that Caron's culture is high in ________.

A) performance orientation B) in-group collectivism C) future orientation D) assertiveness Answer: D Diff: 2 AACSB: Application of knowledge; Analytical thinking Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Application

32 Copyright © 2025 Pearson Education, Inc.

111) In South America, the Sawi tribe values deceit and treachery. Taking advantage of other tribes is cause for celebration. This culture is ________.

A) high in assertiveness B) low in humane orientation C) high in future orientation D) low in gender differentiation Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Application 112) "Let's forget about tomorrow for tomorrow never comes." "Live for today." These expressions would be typical of a culture that is ________.

A) high in assertiveness B) low in humane orientation C) high in performance orientation D) low in future orientation Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Application 113) Outsiders would call them clannish. Ianos and his family are very close. At work, he gives his all to the team. His neighbors support each other but exclude people they do not know. This describes a culture that is ________.

A) high in institutional collectivism B) high in in-group collectivism C) low in humane orientation D) high in performance orientation Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Application

33 Copyright © 2025 Pearson Education, Inc.

114) The hero is always a loner, riding off into the sunset. Employers expect key employees to make critical decisions alone; rewards are given to individuals, not to teams. This describes a culture that is ________.

A) low in institutional collectivism B) high in institutional collectivism C) high in assertiveness D) low in in-group collectivism Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Application 115) Helga has noticed an increasing number of female CEOs of large corporations and also that more fathers are staying home to raise children while the mothers assume positions of leadership in business. This is a culture with ________.

A) high gender differentiation B) low gender differentiation C) high humane orientation D) low humane orientation Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Application 116) "In this company, what you do matters a whole lot more than your last name." Bill's father, the company founder, expected Bill's supervisor to mentor the young man, to help him set goals, to train him and to develop his managerial skills with an emphasis on continuous improvement.

Bill likely lives in a country with a ________.

A) high in-group collectivism culture B) high institutional collectivism culture C) high performance orientation culture D) high assertiveness culture Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Application

34 Copyright © 2025 Pearson Education, Inc.

117) Employers in the global marketplace look for which one of the following?

A) A college degree in multicultural awareness B) Critical thinking skills C) Multi-lingual skills D) Respect for differences Answer: D Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Concept 118) American business students may be at a disadvantage because ________.

A) competition from foreign-born students makes it more difficult to be accepted at the better universities B) scholarships are being awarded to undocumented students C) many colleges and universities no longer require courses in foreign language D) tuition costs have risen beyond the reach of most high school graduates Answer: C Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Concept 119) Only when a country's political/legal environment is unstable or revolutionary is it of concern to managers.

Answer: FALSE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Concept 120) When an American company earns profits in a foreign country, those profits are taxed according to the tax laws of the United States.

Answer: FALSE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Concept

35 Copyright © 2025 Pearson Education, Inc.

121) The GLOBE framework for assessing cultures is similar to Hofstede's framework, but measures fewer dimensions.

Answer: FALSE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Concept 122) Mexico is an example of a collectivistic nation.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Concept 123) The United States is an example of a country with low power distance.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Concept 124) A high uncertainty avoidance society is threatened by ambiguity and experiences high levels of anxiety.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Concept 125) A global mind-set refers to attributes that allow a leader to be effective in cross-cultural environments.

Answer: TRUE Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Concept

36 Copyright © 2025 Pearson Education, Inc.

126) What are "Right to Disconnect" laws and how do they affect global business?

Answer: A growing number of countries are passing "Right to Disconnect" laws that protect workers' right to turn off electronics to help support work/life balance, which has implications for global companies seeking remote workers.

Diff: 3 AACSB: Written and oral communication; Application of knowledge Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Concept; Application 127) List and explain Hofstede's five dimensions of national culture.

Answer: Geert Hofstede developed one of the most widely referenced approaches to helping managers better understand differences between national cultures. His research found that countries vary based on five dimensions of national culture. a. Individualism versus collectivism - Individualism refers to a social framework where people look after their own interests and those of their immediate family. The opposite of this is collectivism, that is characterized by a social framework where people expect others in the group that they are a part of to look after them and to protect them when they are in trouble. b. Power distance - A high power distance society accepts wide differences in power in organizations. Employees show a great deal of respect for those in authority. On the other hand, a low power distance society plays down inequalities. Employees in a low power distance organization are not afraid to approach their boss. c. Uncertainty avoidance - A society that is high in uncertainty avoidance is threatened with ambiguity and characterized by a high level of anxiety among its people. A society that is low in uncertainty avoidance is comfortable with taking risks and is also tolerant of different behavior and opinions. d. Achievement and nurturing - Achievement is the degree to which values such as assertiveness, the acquisition of money and material goods, and competition prevail. Nurturing is an attribute that emphasizes relationships and concern for others. e. Long-term and short-term orientation - People in a long-term orientation society look to the future and value thrift and persistence. People in short-term orientation societies value the past and emphasize respect for tradition.

Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Concept

37 Copyright © 2025 Pearson Education, Inc.

128) Discuss the dimensions of the Global Leadership and Organizational Behavior Effectiveness (GLOBE) framework. Describe how each dimension compares to Hofstede's five dimensions of national culture.

Answer: The GLOBE model uses nine dimensions on which national cultures differ: a. Power distance: The degree to which members of a society expect power to be unequally shared. Identical to Hofstede. b. Uncertainty avoidance: Similar to Hofstede's description, the GLOBE team defined this dimension as a society's reliance on social norms and procedures to alleviate the unpredictability of future events. c. Assertiveness: The extent to which a society encourages people to be tough, confrontational, assertive, and competitive versus modest and tender. This is equivalent to Hofstede's achievement-nurturing dimension. d. Humane orientation: This is defined as the degree to which a society encourages and rewards individuals for being fair, altruistic, generous, caring, and kind to others. This is similar to Hofstede's nurturing dimension. e. Future orientation: The extent to which a society encourages and rewards future-oriented behaviors such as planning, investing in the future, and delaying gratification. This is equivalent to Hofstede's long-term and short-term orientation. f. Institutional collectivism: This term was defined, as Hofstede did, as the degree to which individuals are encouraged by societal institutions to be integrated into groups within organizations and society. g. Gender differentiation: The extent to which a society maximizes gender role differences as measured by how much status and decision-making responsibilities women have. This dimension is an addition to Hofstede's framework. h. In-group collectivism: The extent to which members of a society take pride in membership in small groups, such as their family and circle of close friends, and the organizations in which they're employed. This dimension has no equivalent in Hofstede's framework. i. Performance orientation: The degree to which a society encourages and rewards group members for performance improvement and excellence. This dimension is similar to Hofstede's achievement orientation.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 6.6: Explain the relevance of the political/legal, economic, and cultural environments to global business.

Classification: Concept

38 Copyright © 2025 Pearson Education, Inc.

Management, 16e (Robbins) Chapter 7 Managing Social Responsibility and Ethics 1) Social obligation is the obligation of a business to meet its ________.

A) social and legal responsibilities B) economic and social responsibilities C) social and economic responsibilities D) economic and legal responsibilities Answer: D Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept 2) If your university was paying minimum wage when necessary and applying the minimum legal standards to its employees' work environment, it would be said to have fulfilled its ________.

A) social obligation B) social responsibility C) social responsiveness D) social expectation Answer: A Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Application 3) In the United States a company that meets, but does not exceed, federal pollution control standards and does not discriminate in hiring, promotion, and pay is generally meeting its ________.

A) social screening requirements B) green management requirements C) social obligation D) social responsibility Answer: C Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Application

1 Copyright © 2025 Pearson Education, Inc.

4) Under the concept of ________, the organization does what is required by the ________.

A) social responsibility; competitive market B) social responsiveness; government C) socioeconomics; environment D) social obligation; law Answer: D Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept 5) The ________ view of social responsibility holds that management's only social responsibility is to maximize profits.

A) socioeconomic B) classical C) sociocultural D) neoclassical Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept 6) The most outspoken advocate of the classical view of social responsibility is economist and Nobel laureate ________.

A) George Stigler B) Thomas Mulligan C) Howard Bowman D) Milton Friedman Answer: D Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept

2 Copyright © 2025 Pearson Education, Inc.

7) According to the classical view, aiding the few through philanthropy ________.

A) benefits the whole by uplifting the downtrodden B) grows wealth for stockholders by increasing the stock trading price C) increases costs for consumers D) manipulates society through social engineering Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept 8) The ________ view is that management's social responsibility goes beyond making profits to include protecting and improving society's welfare.

A) sociotechnical B) socioeconomic C) sociocultural D) sociopolitical Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept 9) If your university provides job-share programs, builds a day-care facility, and only uses recycled paper, it could be said to be ________.

A) fulfilling its social obligation B) socially aware C) socially responsive D) socially image conscious Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Application

3 Copyright © 2025 Pearson Education, Inc.

10) When PETA supporters picketed Avon products because of its use of animals in the testing of its cosmetics, Avon changed its practices and stopped testing on animals. In this situation, Avon exercised ________.

A) social obligation B) classical responsibility C) social responsiveness D) social engineering Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Application 11) A U.S. business that provides on-site childcare facilities for employees as part of a negotiation with its union is ________.

A) being socially responsive B) fulfilling its social obligations C) adopting social screening D) practicing green management Answer: A Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Application 12) When a firm advertises that it only uses recycled paper products, it is ________.

A) meeting its social obligation B) meeting its social screening requirements C) being socially responsive D) following ISO 9000 standards Answer: C Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Application

4 Copyright © 2025 Pearson Education, Inc.

13) McDonald's stopped using plastic straws in New York after a statewide ban was enacted. In this situation, McDonald's was ________.

A) fulfilling its social obligation B) socially aware C) socially responsive D) socially image conscious Answer: A Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Application 14) ________ is defined as a business firm's intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society.

A) Social obligation B) Social responsibility C) Social screening D) Values-based management Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept 15) The aspect that differentiates social responsibility from other similar concepts is that it adds a(n) ________.

A) ethical imperative B) legal imperative C) environmental imperative D) social imperative Answer: A Diff: 3 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept

5 Copyright © 2025 Pearson Education, Inc.

16) Which one of the following examples reflects a socially responsible action by an organization?

A) Ford Motor Company became the first automaker to endorse a federal ban on sending text messages while driving.

B) Apple has eliminated lead-based soldering from its product line after the practice was banned by the EPA. C) Chick-fil-A stopped selling products containing meat from poultry raised with antibiotics.

D) Walmart stopped using plastic bags in states where the bags are banned.

Answer: C Diff: 3 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Application 17) According to the ________ argument on social responsibility, businesses should be socially responsible because responsible actions are the right thing to do.

A) better environment B) ethical obligation C) public image D) greater good Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept 18) Following Hurricane Katrina in 2005, Walmart sent semis loaded with items such as bottled water, diapers, and other daily necessities to the New Orleans area. We can say that Walmart exercised ________.

A) social obligation B) social responsiveness C) social responsibility D) social awareness Answer: C Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Application

6 Copyright © 2025 Pearson Education, Inc.

19) The belief that business involvement can help solve difficult social problems is the ________ argument of social responsibility.

A) public expectation B) public image C) better environment D) possession of resources Answer: C Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept 20) Which one of the following arguments on social responsibility states that businesses should address social problems before they become serious and costly to correct?

A) Superiority of prevention over cures B) Possession of resources C) Balance of responsibility and power D) Better environment Answer: A Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept 21) Which one of the following arguments on social responsibility states that a business is socially responsible only when it pursues its economic interests?

A) Public expectations B) Violation of profit maximization C) Superiority of prevention over cures D) Possession of resources Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept

7 Copyright © 2025 Pearson Education, Inc.

22) Which one of the following arguments on social responsibility states that pursuing social goals hurts a business's economic productivity?

A) Long-run profits B) Dilution of purpose C) Stakeholder interests D) Public image Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept 23) Which one of the following arguments on social responsibility states that there is no direct line of responsibility for social actions?

A) Dilution of purpose B) Ethical obligation C) Balance of responsibility and power D) Lack of accountability Answer: D Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept 24) Milton Friedman argued that a firm's managers are employees and therefore only responsible to ________.

A) society B) stakeholders C) shareholders D) activists Answer: C Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept

8 Copyright © 2025 Pearson Education, Inc.

25) Appleton would like to build a coal-burning electric generating facility located in a remote area because the cost involved is moderate. Appleton is following which of the social responsibility views?

A) Legal view B) Stakeholder view C) Classical view D) Socioeconomic view Answer: C Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Application 26) Baskins wants to build a nuclear plant because this will not add to his city's already serious pollution problem while taking care of its electricity requirements. Baskins is following which of the social responsibility views?

A) Market view B) Activist view C) Classical view D) Socioeconomic view Answer: D Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Application 27) Carson wants to build an electricity generating plant that uses combustible fuels collected from the city's garbage and is located near the downtown government area so that the steam could be used for heating the government buildings after it has passed through the generating turbines. Carson is being mostly ________.

A) socially guarded B) socially focused C) socially obligated D) socially responsive Answer: D Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Application

9 Copyright © 2025 Pearson Education, Inc.

28) According to the classical view of social responsibility, management's only social responsibility is to maximize profits.

Answer: TRUE Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept 29) The most outspoken advocate of the classical view of organizational social responsibility is Howard Bowen.

Answer: FALSE Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept 30) According to the socioeconomic view, managers' social responsibilities go beyond making profits to include protecting and improving society's welfare.

Answer: TRUE Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept 31) When a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities, it is said to be socially responsive.

Answer: FALSE Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept 32) One argument against businesses championing social responsibility issues is that businesses already have too much power.

Answer: TRUE Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept

10 Copyright © 2025 Pearson Education, Inc.

33) Possession of resources is an argument in favor of social responsibility.

Answer: TRUE Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept 34) Studies have confirmed that businesses that engage in social involvement enjoy higher profits than those which do not.

Answer: FALSE Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept 35) Compare and contrast the ideas of social obligation, social responsiveness, and social responsibility.

Answer: Social obligation occurs when a firm engages in social actions because of its obligation to meet its economic and legal responsibilities. The organization does only what it is obligated to do and nothing more. This idea reflects the classical view of social responsibility that says that management's only social responsibility is to maximize profits.

In contrast to social obligation, however, both social responsiveness and social responsibility reflect the socioeconomic view. According to this view, a manager's social responsibilities go beyond making profits to include protecting and improving society's welfare. This view is based on the belief that corporations are not independent entities responsible only to stockholders, but have an obligation to the larger society.

Social responsiveness occurs when a company engages in social actions in response to some popular social need. Managers are guided by social norms and values and make practical, market-oriented decisions about their actions.

A socially responsible organization views things differently. It goes beyond what it is obligated to do or chooses to do because of some popular social need and does what it can to help improve society because it is the right thing to do. Social responsibility is defined as a business's intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society. A socially responsible organization does what is right because it feels it has an ethical responsibility to do so.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept

11 Copyright © 2025 Pearson Education, Inc.

36) List and discuss three arguments in favor of business social responsibility and five arguments against it.

Answer: Arguments in favor of business social responsibility include: a. Public expectations - Public opinion now supports businesses pursuing economic and social goals. b. Long-run profits - Socially responsible companies tend to have more secure long-run profits. c. Ethical obligation - Businesses should be socially responsible because responsible actions are the right thing to do. d. Public image - Businesses can create a favorable public image by pursuing social goals. e. Better environment - Business involvement can help solve difficult social problems. f. Discouragement of further governmental regulation - By becoming socially responsible, businesses can expect less government regulation. g. Balance of responsibility and power - Businesses have a lot of power and an equally large amount of responsibility is needed to balance against that power. h. Stockholder interests - Social responsibility will improve a business's stock price in the long run. i. Possession of resources - Businesses have the resources to support public and charitable projects that need assistance. j. Superiority of prevention over cures - Businesses should address social problems before they become serious and costly to correct.

Arguments against business social responsibility include: a. Violation of profit maximization — A business is being socially responsible only when it pursues its economic interests. b. Dilution of purpose - Pursuing social goals dilutes business's primary purpose of achieving economic productivity. c. Costs - Many social responsibility actions do not cover their costs and someone must pay those costs. d. Too much power - Businesses have a lot of power already and if they pursue social goals they will have even more power. e. Lack of skills - Business leaders lack the necessary skills to address social issues. f. Lack of accountability - There are no direct lines of accountability for social actions.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 7.1: Discuss what it means to be socially responsible and what factors influence that decision.

Classification: Concept

12 Copyright © 2025 Pearson Education, Inc.

37) Managers who consider the impact of their organization on the natural environment are said to be practicing ________.

A) value-based management B) ethics-based management C) socially responsible management D) green management Answer: D Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.2: Explain green management and how organizations can go green.

Classification: Concept 38) In which of the following approaches of going green does the organization exhibit the least environmental sensitivity?

A) Legal (light green) approach B) Dark green approach C) Market approach D) Stakeholder approach Answer: A Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.2: Explain green management and how organizations can go green.

Classification: Concept 39) Under which approach do organizations exhibit little environmental sensitivity and simply obey laws, rules and regulations?

A) Stakeholder approach B) Market approach C) Legal approach D) Activist approach Answer: C Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.2: Explain green management and how organizations can go green.

Classification: Concept 40) In the ________ approach of going green, organizations respond to the environmental preferences of customers.

A) legal B) market C) stakeholder D) activist Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.2: Explain green management and how organizations can go green.

Classification: Concept 13 Copyright © 2025 Pearson Education, Inc.

41) In the ________ approach of going green, an organization works to meet the environmental demands of its employees, suppliers, or community.

A) dark green B) light green C) market D) stakeholder Answer: D Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.2: Explain green management and how organizations can go green.

Classification: Concept 42) EPA regulations permit the release of 150 micrograms of particulate matter per cubic meter of air every 24 hours from paint shops. Utilimotors, a utility truck maker, monitors its emissions so it releases between 140 and 150 micrograms. Which approach of green management does Utilimotors use?

A) Legal approach B) Market approach C) Stakeholder approach D) Activist approach Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 7.2: Explain green management and how organizations can go green.

Classification: Application 43) Which approach deals with an organization changing its interaction with the environment because of the preferences of its customers?

A) Stakeholder approach B) Market approach C) Legal approach D) Activist approach Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.2: Explain green management and how organizations can go green.

Classification: Concept

14 Copyright © 2025 Pearson Education, Inc.

44) Under which approach does the organization work to meet the environmental demands of multiple groups of people including employees, suppliers, or the community?

A) Stakeholder approach B) Market approach C) Legal approach D) Activist approach Answer: A Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.2: Explain green management and how organizations can go green.

Classification: Concept 45) Which of the following approaches of going green reflects the lowest degree of environmental sensitivity?

A) Legal approach B) Market approach C) Stakeholder approach D) Activist approach Answer: A Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.2: Explain green management and how organizations can go green.

Classification: Concept 46) Under which approach is the organization driven to look for ways to respect and preserve the earth and its natural resources?

A) Stakeholder approach B) Market approach C) Legal approach D) Activist approach Answer: D Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.2: Explain green management and how organizations can go green.

Classification: Concept

15 Copyright © 2025 Pearson Education, Inc.

47) Miller's Multivitamins uses only organically grown fruits and vegetables in its vitamins. It purifies any water used in its processes before releasing it back into the environment and exceeds the EPA requirements for cleaning particulates from the air it uses. Which approach to green management does Miller's Multivitamins use?

A) Legal B) Market C) Stakeholder D) Activist Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 7.2: Explain green management and how organizations can go green.

Classification: Application 48) IKEA has committed to becoming climate positive by 2030 by reducing greenhouse gas emissions in producing their products by 15 percent. Which approach to green management is IKEA using?

A) Stakeholder approach B) Market approach C) Legal approach D) Activist approach Answer: D Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.2: Explain green management and how organizations can go green.

Classification: Application 49) Employees and customers exerted pressure on Amazon until it issued a public statement indicating the firm would use its clout to push for tougher environmental standards. This is an example of a ________ approach to sustainability.

A) light green B) stakeholder C) market D) medium green Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.2: Explain green management and how organizations can go green.

Classification: Concept 50) The legal approach to going green is also known as the dark green approach.

Answer: FALSE Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.2: Explain green management and how organizations can go green.

Classification: Concept 16 Copyright © 2025 Pearson Education, Inc.

51) An organization is said to adopt the market approach to going green when it responds to the environmental demands made by its stakeholders.

Answer: FALSE Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.2: Explain green management and how organizations can go green.

Classification: Concept 52) In the activist approach to going green, an organization looks for ways to protect its sources of supply.

Answer: FALSE Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.2: Explain green management and how organizations can go green.

Classification: Concept 53) Explain the four approaches that organizations can take with respect to environmental issues and going green.

Answer: a. Legal approach - This approach is also known as the light green approach. Under this approach, organizations simply do what is required legally. They exhibit little environmental sensitivity. They obey laws, rules, and regulations without legal challenge. This approach illustrates social obligation. b. Market approach - As an organization becomes more sensitive to environmental issues, it may adopt this approach. Here, organizations respond to the environmental preferences of their customers. Whatever customers demand in terms of environmentally-friendly products is what the organization provides. This approach illustrates social responsiveness. c. Stakeholder approach - Here, the organization works to meet the environmental demands of multiple stakeholders such as employees, suppliers, or community. This approach also illustrates social responsiveness. d. Activist approach - If an organization pursues this approach, it looks for ways to protect the earth's natural resources. It is also known as the dark green approach. This approach reflects the highest degree of environmental sensitivity and illustrates social responsibility.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 7.2: Explain green management and how organizations can go green.

Classification: Concept

17 Copyright © 2025 Pearson Education, Inc.

54) Which of the following ISO standards is related to quality management?

A) ISO 9000 B) ISO 14000 C) ISO 8000 D) ISO 15000 Answer: A Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.3: Describe approaches companies can take to evaluate and report on social responsibility and sustainability efforts.

Classification: Concept 55) Which of the following ISO standards is related to environmental management?

A) ISO 9000 B) ISO 14000 C) ISO 16000 D) ISO 8000 Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.3: Describe approaches companies can take to evaluate and report on social responsibility and sustainability efforts.

Classification: Concept 56) A report by the Global Reporting Initiative indicates that approximately ________ companies now voluntarily report their efforts in promoting environmental sustainability using the GRI guidelines.

A) 2,500 B) 5,000 C) 10,000 D) 20,000 Answer: C Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.3: Describe approaches companies can take to evaluate and report on social responsibility and sustainability efforts.

Classification: Concept

18 Copyright © 2025 Pearson Education, Inc.

57) One way to evaluate a company's green actions is to use the ________ list of the most sustainable corporations in the world.

A) Global 100 B) Global 200 C) Global 400 D) Global 500 Answer: A Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.3: Describe approaches companies can take to evaluate and report on social responsibility and sustainability efforts.

Classification: Concept 58) To be named on the Global 100 list, which is announced each year at the World Economic Forum, a company has to ________.

A) have earned ISO certification B) display a superior ability to effectively manage environmental and social factors C) be free from EPA violations D) submit an application with supporting documentation Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.3: Describe approaches companies can take to evaluate and report on social responsibility and sustainability efforts.

Classification: Concept 59) Many companies around the globe voluntarily report their efforts in promoting environmental sustainability using the guidelines developed by the ________.

A) Global Compact B) Environmental Protection Agency C) Global Reporting Initiative D) Organization for Economic Co-operation and Development Answer: C Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.3: Describe approaches companies can take to evaluate and report on social responsibility and sustainability efforts.

Classification: Concept

19 Copyright © 2025 Pearson Education, Inc.

60) The United Nations (UN) adopted 17 sustainable development goals (SDGs) in 2015 that set forth a plan of action for countries around the world to address societal and environmental concerns by 2030.

Answer: TRUE Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.3: Describe approaches companies can take to evaluate and report on social responsibility and sustainability efforts.

Classification: Concept 61) In 2023, U.S. companies led the Global 100 list with 44 companies representing a variety of industries making the list.

Answer: FALSE Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.3: Describe approaches companies can take to evaluate and report on social responsibility and sustainability efforts.

Classification: Concept 62) ESG reporting helps firms measure or quantify social responsibility and sustainability efforts, communicates those efforts externally, and also provides measures to evaluate work internally.

Answer: TRUE Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.3: Describe approaches companies can take to evaluate and report on social responsibility and sustainability efforts.

Classification: Concept 63) What are the four pillars of ESG reporting proposed by the World Economic Forum in 2020?

Answer: The World Economic Forum proposed universal ESG reporting focusing on four pillars. The pillar of "people" reflects the treatment of employees, the "planet" pillar focuses on environmental impacts, "prosperity" addresses the impact on the financial wellbeing of the community, and "principles of governance" reflects purpose, strategy, and accountability.

Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.3: Describe approaches companies can take to evaluate and report on social responsibility and sustainability efforts.

Classification: Concept

20 Copyright © 2025 Pearson Education, Inc.

64) ________ defined as the basic convictions about right and wrong decisions and behavior.

A) Beliefs are B) Principles are C) Ethics is D) Values are Answer: D Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 65) At the ________ level of moral development, a person's choice between right or wrong is based on personal consequences from outside sources, such as physical punishment, reward, or exchange of favors.

A) preconventional B) conventional C) principled D) post-conventional Answer: A Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 66) In which one of the stages of moral development do individuals fulfill obligations to which they have agreed to fulfill?

A) Preconventional stage B) Conventional stage C) Principled stage D) Post-conventional stage Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 67) Norman is a stickler for following the rules because he is sure he will be caught and punished if he doesn't. What is Norman's level of moral development?

A) Preconventional B) Conventional C) Principled D) Post-conventional Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Application 21 Copyright © 2025 Pearson Education, Inc.

68) At the ________ level of moral development, ethical decisions rely on maintaining expected standards and living up to the expectations of others.

A) preconventional B) conventional C) principled D) post-conventional Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 69) In which one of the following stages of moral development do individuals live up to what is expected by people close to them and maintain order by fulfilling obligations to which they have agreed?

A) Conscientious stage B) Conventional stage C) Principled stage D) Preconventional stage Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 70) ________ represent basic convictions about what is right and wrong.

A) Dogmas B) Values C) Principles D) Beliefs Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 71) The phrase "My word is my bond" is likely to be spoken by someone at the ________ stage of moral development.

A) preconventional B) conventional C) post-conventional D) principled Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Application 22 Copyright © 2025 Pearson Education, Inc.

72) At the ________ level of moral development, individuals define moral values apart from the authority of the groups to which they belong or society in general.

A) preconventional B) conventional C) principled D) unconventional Answer: C Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 73) Pharmacists who decline to dispense drugs that cause abortions are functioning at the ________ stage of moral development.

A) preconventional B) conventional C) principled D) unconventional Answer: C Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Application 74) In which of the following stages of moral development do individuals value rights of others and uphold absolute values and rights regardless of the majority's opinion?

A) Preconventional stage B) Conventional stage C) Principled stage D) Unconventional stage Answer: C Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept

23 Copyright © 2025 Pearson Education, Inc.

75) John is offered an attractive incentive to steal sensitive information about his company's wealthy investment customers. Which one of the following statements best reflects John's thoughts if he is at the preconventional level of moral development?

A) If I do go through with the act, I will be letting down my manager and coworkers badly.

B) My job is to protect the information that this company deals in and I should not violate my duties.

C) I am liable to be criminally prosecuted for my involvement in stealing the information.

D) Going through with this act would be highly unfair not just to the client, but also to my employers.

Answer: C Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Application 76) John is offered an attractive incentive to steal sensitive information about his company's wealthy investment customers. Which of the following statements best reflects John's thoughts if he is at the principled level of moral development?

A) My job is to protect the information that this company deals in and I should not be violating my duties.

B) By stealing from another person, I will be in violation of the moral standards I've come to expect of myself.

C) If my involvement is detected, my friends and family would be humiliated by my actions.

D) If I am convicted for this crime, I will surely be imprisoned and will probably never be employed anywhere else.

Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Application 77) ________ measures the strength of a person's convictions.

A) Moral development B) Locus of control C) Ego strength D) Social desirability Answer: C Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept

24 Copyright © 2025 Pearson Education, Inc.

78) Upper management is pushing hard to increase earnings per share. If Moe yields to this pressure despite misgivings about the use of a non-certified material in the production of climbing equipment, he will be demonstrating ________.

A) high ego strength B) weak ego strength C) internal locus of control D) external locus of control Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Application 79) Despite reassurances from R&D's internal testing lab, Stephen believes the new material for climbing ropes should not be used in their manufacture until it has been certified by an independent lab. It would appear that Stephen has ________.

A) high ego strength B) weak ego strength C) internal locus of control D) external locus of control Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Application 80) ________ is the degree to which people believe they control their own fate.

A) Ego strength B) Locus of control C) Social responsibility D) Social obligation Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept

25 Copyright © 2025 Pearson Education, Inc.

81) What can be said about a manager who believes that she can work hard and will meet the productivity goals of her organization despite unfavorable conditions?

A) She has an external locus of control.

B) She has a high ego strength.

C) She has a weak ego strength.

D) She has an internal locus of control.

Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Application 82) "It's not my fault!" is a cry often heard from someone with ________ locus of control.

A) an external B) an internal C) no D) a weak Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Application 83) Which one of the following organizations is best suited to promote ethical behavior in its employees?

A) An organization that has a reward and punishment system that depends on specific goal outcomes.

B) An organization that has formal rules and regulations in place.

C) An organization that punishes employees who do not meet goals.

D) An organization that rewards success without asking how it was achieved.

Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 84) Which one of the following is true concerning the impact of organizational culture on ethical behavior?

A) An organization with low conflict tolerance encourages ethical behavior.

B) An organization with strong culture can encourage either ethical or unethical behavior.

C) An organizational culture that is high in conflict tolerance encourages unethical behavior.

D) An organizational culture that is high in control encourages unethical behavior.

Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 26 Copyright © 2025 Pearson Education, Inc.

85) Rashad took a break from working on his fraud report and spent some time surfing the Internet looking for a component he needed to fix his blender. What does this example illustrate?

A) This example illustrates the concept of issue intensity.

B) The student involved has an internal locus of control.

C) The student involved has a strong ego strength.

D) This example illustrates the concept of value-based management.

Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Application 86) A cartoon showing black smoke from a smokestack and the caption "We're okay as long as the wind keeps blowing" illustrates which factor of issue intensity?

A) Consensus of wrong B) Greatness of harm C) Concentration of effort D) Proximity to victims Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Application 87) The Foreign Corrupt Practices Act makes it illegal for U.S. firms to ________.

A) make any cash payment for deferential treatment in a foreign transaction B) make any payment over 5 percent of total cost toward administrative overhead in foreign transactions C) knowingly corrupt a foreign official D) knowingly pay a foreign clerical or administrative employee in exchange for service Answer: C Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 88) The Global ________ is a document created by the United Nations outlining principles for doing business globally in the areas of human rights, labor, the environment, and anticorruption.

A) Reporting Initiative B) Compact C) Convention D) Ethics Answer: B Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 27 Copyright © 2025 Pearson Education, Inc.

89) Freedom of association and the effective recognition of the right to collective bargaining are the Global Compact principles in the area of ________.

A) anticorruption B) human rights C) labor standards D) union representation Answer: C Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 90) The idea that businesses should eliminate discrimination with respect to employment and occupation is a Global Compact principle in the area of ________.

A) anticorruption B) human rights C) environment D) labor standards Answer: D Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 91) The centerpiece of the ________ efforts is the Anti-Bribery Convention that was the first global instrument to combat corruption in cross-border business deals.

A) Organization for Economic Co-operation and Development's B) Institute of Global Ethics' C) Ethics and Compliance Officer Association's D) United Nations' Answer: A Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 92) In the preconventional stage of moral development, individuals make a clear effort to define moral principles apart from the authority of the groups to which they belong or of society in general.

Answer: FALSE Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept

28 Copyright © 2025 Pearson Education, Inc.

93) As companies identify more applications for artificial intelligence (AI), it is important to keep ethics at top of mind.

Answer: TRUE Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 94) At the principled level of moral development, an individual values the rights of others and upholds absolute values and rights regardless of the majority's opinion.

Answer: TRUE Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 95) The term "values" refers to basic convictions about what is right and wrong behavior.

Answer: TRUE Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 96) People with an internal locus of control believe that what happens to them is due to luck or chance.

Answer: FALSE Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 97) An organization's structural design, its goals, performance appraisal systems, and reward allocation procedures influence the ethical choices of employees.

Answer: TRUE Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 98) When employees are evaluated only on outcomes, they may be pressured to do whatever is necessary to look good on the outcomes, and not be concerned with how they got those results.

Answer: TRUE Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 29 Copyright © 2025 Pearson Education, Inc.

99) The greater the probability that some action will cause harm, the greater the intensity of the issue.

Answer: TRUE Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 100) The Global Contract is a document created by the United Nations outlining principles for doing business globally in the areas of human rights, labor, the environment, and anticorruption.

Answer: FALSE Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 101) The Organization for Economic Co-Operation and Development developed a global trade agreement.

Answer: FALSE Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 102) Identify and describe the three levels and six stages of moral development.

Answer: An individual's moral development can be divided into three levels, each having two stages. At each successive stage, an individual's moral judgment becomes less dependent on outside influences and more internalized.

The three levels of moral development are preconventional, conventional, and principled.

At the preconventional level, an individual's choice between right or wrong is based on personal consequences from outside sources, such as physical punishment, reward, or exchange of favors.

This level includes stage 1 where an individual sticks to the rules to avoid punishment and stage 2 where the individual follows the rules only when doing so is in his or her immediate interest.

At the conventional level, ethical decisions rely on maintaining expected standards and living up to the expectations of others.

The third and fourth stages are in the conventional level. In stage 3, an individual tries to live up to what is expected by people close to him or her. In stage 4, an individual tries maintaining conventional order by fulfilling obligations to which he has agreed.

At the principled level, an individual defines moral values apart from the authority of the groups to which he or she belongs. The 5th and 6th stages are a part of this level.

At stage 5, an individual values the rights of others and upholds absolute values and rights regardless of the majority's opinion. Finally, at stage 6, an individual follows his or her selfchosen ethical principles even if they violate the law.

Diff: 3 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 30 Copyright © 2025 Pearson Education, Inc.

103) Outline the two individual characteristics that play a role in determining whether a person behaves ethically.

Answer: Values and personality are the two individual characteristics that play a role in determining whether a person behaves ethically. Each person comes to an organization with a relatively entrenched set of personal values, which represent basic convictions about what is right and wrong. An individual's values develop from a young age based on what he or she sees and hears from parents, teachers, friends, and others. Thus, employees in the same organization often possess very different values. Values are broad and cover a wide range of issues.

Two personality variables that influence an individual's actions according to his or her beliefs about what is right or wrong are ego strength and locus of control.

Ego strength measures the strength of a person's convictions. People with high ego strength are likely to resist impulses to act unethically and instead follow their convictions. Individuals high in ego strength are more likely to do what they think is right and be more consistent in their moral judgments and actions than those with low ego strength.

Locus of control is the degree to which people believe they control their own fate. People with an internal locus of control believe they control their own destinies. They are more likely to take responsibility for consequences and rely on their own internal standards of right and wrong to guide their behavior.

Diff: 3 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 104) Write a short essay on the structural variables that can influence employees' ethical behavior.

Answer: An organization's structural design can influence whether employees behave ethically.

Those structures that minimize ambiguity and uncertainty with formal rules and regulations and those that continuously remind employees of what is ethical are more likely to encourage ethical behavior. Other structural variables that influence ethical choices include goals, performance appraisal systems, and reward allocation procedures.

Although many organizations use goals to guide and motivate employees, those goals can create some unexpected problems. One study found that people who do not reach set goals are more likely to engage in unethical behavior, even if they do or do not have economic incentives to do so.

An organization's performance appraisal system also can influence ethical behavior. Some systems focus exclusively on outcomes, while others evaluate means as well as ends. When employees are evaluated only on outcomes, they may be pressured to do whatever is necessary to look good on the outcomes, and not be concerned with how they got those results.

Closely related to the organization's appraisal system is how rewards are allocated. The more that rewards or punishment depend on specific goal outcomes, the more employees are pressured to do whatever they must to reach those goals, perhaps to the point of compromising their ethical standards.

Diff: 3 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 31 Copyright © 2025 Pearson Education, Inc.

105) Discuss the importance of an organization's culture as a factor that determines an employee's ethical behavior.

Answer: An organization's culture consists of shared organizational values. These values reflect what the organization stands for and what it believes in as well as create an environment that influences employee behavior ethically or unethically. When it comes to ethical behavior, a culture most likely to encourage high ethical standards is one that is high in risk tolerance, control, and conflict tolerance. Employees in such a culture are encouraged to be aggressive and innovative, are aware that unethical practices will be discovered, and feel free to openly challenge expectations they consider to be unrealistic or personally undesirable.

Because shared values can be powerful influences, many organizations are using values-based management, in which the organization's values guide employees in the way they do their jobs.

An organization's managers play an important role here. They are responsible for creating an environment that encourages employees to embrace the culture and the desired values as they do their jobs. People look to see what those in authority are doing and use that as a benchmark for acceptable practices and expectations.

A strong culture exerts more influence on employees than a weak one. If a culture is strong and supports high ethical standards, it has a powerful and positive influence on the decision to act ethically or unethically.

Diff: 3 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept

32 Copyright © 2025 Pearson Education, Inc.

106) What is the UN Global Compact? What are the 10 principles outlined in it?

Answer: The UN Global Compact is a document created by the United Nations outlining principles for doing business globally in the areas of human rights, labor, the environment, and anticorruption. It serves as a guide to being ethical in international business.

The 10 principles outlined in it are: Human Rights: Principle 1: Support and respect the protection of international human rights within their sphere of influence.

Principle 2: Make sure business corporations are not complicit in human rights abuses.

Labor Standards: Principle 3: Freedom of association and the effective recognition of the right to collective bargaining.

Principle 4: The elimination of all forms of forced and compulsory labor.

Principle 5: The effective abolition of child labor.

Principle 6: The elimination of discrimination in respect to employment and occupation.

Environment: Principle 7: Support a precautionary approach to environmental challenges.

Principle 8: Undertake initiatives to promote greater environmental responsibility.

Principle 9: Encourage the development and diffusion of environmentally-friendly technologies.

Anticorruption: Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

Diff: 3 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.4: Discuss the factors that lead to ethical and unethical behavior.

Classification: Concept 107) Which of the following options is most likely to have the greatest impact in encouraging employees to behave ethically?

A) Select only ethical employees.

B) Provide a written code of ethics and decision rules.

C) Model ethical behavior beginning with the organization's top leaders.

D) Implement a comprehensive ethics program.

Answer: D Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.5: Describe management's role in encouraging ethical behavior.

Classification: Concept; Analytical

33 Copyright © 2025 Pearson Education, Inc.

108) How can managers identify the ethically questionable applicants even before they become part of the workforce?

A) By performing background checks B) By requiring letters of recommendation C) By favoring candidates who come with a reference from existing employees D) By including integrity testing in the selection process Answer: D Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.5: Describe management's role in encouraging ethical behavior.

Classification: Application 109) The most common core values listed in a typical code of ethics include ________.

A) integrity, teamwork, respect, innovation, and client focus B) integrity, diversity, legality, and sustainability C) diversity, sustainability, and legality D) integrity, market focused, diversity, and respect Answer: A Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.5: Describe management's role in encouraging ethical behavior.

Classification: Application 110) A ________ is a formal statement of an organization's primary values and the ethical rules it expects its employees to follow.

A) mission statement B) values statement C) code of ethics D) vision statement Answer: C Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.5: Describe management's role in encouraging ethical behavior.

Classification: Concept 111) The primary debate about ethics training programs is whether ________.

A) ethics can be taught B) ethics training is sufficient C) the programs cause a regression in a person's moral development D) the programs decrease awareness of ethical issues in business Answer: A Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.5: Describe management's role in encouraging ethical behavior.

Classification: Concept

34 Copyright © 2025 Pearson Education, Inc.

112) Marveline Company brought in help from outside to evaluate decisions and management practices in relation to the organization's code of ethics. These evaluations are called ________ audits.

A) social responsibility B) social protective C) independent social D) independent ethics Answer: D Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.5: Describe management's role in encouraging ethical behavior.

Classification: Concept 113) The choice of which activities to reward and punish sends a strong signal to the employees regarding their ethical decisions.

Answer: TRUE Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.5: Describe management's role in encouraging ethical behavior.

Classification: Concept 114) When a firm has a code of ethics in place, the role of managers in enforcing ethical behavior is minimized.

Answer: FALSE Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.5: Describe management's role in encouraging ethical behavior.

Classification: Concept 115) Pressure to perform and meet goals has little impact on an employee's decision to behave ethically.

Answer: FALSE Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.5: Describe management's role in encouraging ethical behavior.

Classification: Concept 116) It is important that firms be concerned with both the ends and the means used to achieve goals.

Answer: TRUE Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.5: Describe management's role in encouraging ethical behavior.

Classification: Concept

35 Copyright © 2025 Pearson Education, Inc.

117) Most large firms have some form of employee ethics training.

Answer: TRUE Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.5: Describe management's role in encouraging ethical behavior.

Classification: Concept 118) To encourage employees to report ethical concerns, managers must make sure the reporting employee knows the outcome of any investigation, including the punishment meted out to the perpetrator.

Answer: FALSE Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.5: Describe management's role in encouraging ethical behavior.

Classification: Concept 119) Employees who raise ethical concerns or issues to others inside or outside the organization are called social activists.

Answer: FALSE Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.5: Describe management's role in encouraging ethical behavior.

Classification: Concept 120) Whistle-blowing is defined as an act of an individual within an organization who discloses information in order to report and correct corruption.

Answer: TRUE Diff: 1 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.5: Describe management's role in encouraging ethical behavior.

Classification: Concept

36 Copyright © 2025 Pearson Education, Inc.

121) In a short essay, discuss some of the ways in which managers can encourage ethical behavior and create a comprehensive ethics program.

Answer: Employee selection - The selection process (interviews, tests, and background checks) can be viewed as an opportunity to learn about an individual's level of moral development, personal values, ego strength, and locus of control. However, a carefully designed selection process is not foolproof and, even under the best circumstances, individuals with questionable standards of right and wrong may be hired. Such an issue can be overcome if other ethics controls are in place.

Code of ethics and decision rules - A code of ethics is a formal statement of an organization's values and the ethical rules it expects employees to follow. It is a popular choice for reducing ambiguity about what is and is not ethical.

Leadership - Doing business ethically requires a commitment from top managers. They are the ones who uphold the shared values and set the cultural tone. They are role models in terms of both words and actions. Top managers also set the tone by their reward and punishment practices. The choices of whom and what are rewarded with pay increases and promotions send a strong signal to employees.

Job goals and performance appraisal - Under the stress of unrealistic goals, otherwise ethical employees may feel they have no choice but to do whatever is necessary to meet those goals.

Also, goal achievement is usually a key issue in performance appraisal. If performance appraisals focus only on economic goals, ends will begin to justify means. To encourage ethical behavior, both ends and means should be evaluated.

Independent social audits - These evaluate decisions and management practices in terms of the organization's code of ethics. To maintain integrity, auditors should be responsible to the company's board of directors and present their findings directly to the board. This arrangement gives the auditors clout and lessens the opportunity for retaliation from those being audited.

Diff: 3 AACSB: Ethical understanding and reasoning Learning Obj.: LO 7.5: Describe management's role in encouraging ethical behavior.

Classification: Concept

37 Copyright © 2025 Pearson Education, Inc.

Management, 16e (Robbins) Chapter 8 Foundations of Planning 1) ________ involves defining the organization's objectives, establishing strategies for achieving those objectives, and developing plans to integrate and coordinate work activities.

A) Execution B) Logistics C) Planning D) Operations Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.1: Define the nature and purposes of planning.

Classification: Concept 2) The effect of planning on managers is that it forces them to ________.

A) generate higher profits B) anticipate and respond to change C) eliminate uncertainty D) work at cross-purposes Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.1: Define the nature and purposes of planning.

Classification: Concept 3) Which one of the following is among the reasons why managers should plan?

A) When work activities are coordinated around plans, inefficiencies become obvious.

B) Uncertainty can be eliminated and the organization can be insulated from change with planning.

C) Planning eliminates the need to set objectives.

D) Planning eliminates the need to measure work effort.

Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.1: Define the nature and purposes of planning.

Classification: Concept

1 Copyright © 2025 Pearson Education, Inc.

4) Which one of the following is true of the impact of formal planning on organizational performance?

A) Formal planning is associated with positive financial results.

B) Organizations that formally plan invariably outperform those that don't plan.

C) The amount of planning done is more important to high performance than the quality of planning and implementation.

D) Companies can start seeing the impact of formal planning on performance about a year after starting the planning process.

Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.1: Define the nature and purposes of planning.

Classification: Concept 5) When formal planning fails to lead to higher performance, which one of the following is most likely to be the reason for the failure?

A) A participative style of planning was used.

B) Managers were allowed too much autonomy.

C) The company emphasized the control function over other functions.

D) External forces constrain managers' options.

Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.1: Define the nature and purposes of planning.

Classification: Concept 6) Planning is concerned with how objectives are to be accomplished, not what is to be accomplished.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.1: Define the nature and purposes of planning.

Classification: Concept 7) Planning provides direction to managers and non-managers alike.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 8.1: Define the nature and purposes of planning.

Classification: Concept 8) The presence of planning inhibits the ability of departments and individuals to work together.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 8.1: Define the nature and purposes of planning.

Classification: Concept 2 Copyright © 2025 Pearson Education, Inc.

9) Planning helps managers eliminate uncertainty and insulates organizations from change.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.1: Define the nature and purposes of planning.

Classification: Concept 10) Several research studies have conclusively proven that organizations that plan always outperform organizations that do not plan.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.1: Define the nature and purposes of planning.

Classification: Concept 11) Studies indicate that doing a good job of planning and implementing those plans plays a bigger role in high performance than does how much planning is done.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.1: Define the nature and purposes of planning.

Classification: Concept 12) In a short essay, define planning and discuss the characteristics of formal planning as it is used in various organizations.

Answer: Planning involves defining the organization's objectives, establishing an overall strategy for achieving those objectives, and developing a comprehensive set of plans to integrate and coordinate organizational work. It is concerned with both the ends and means. In formal planning, specific objectives covering a period of years are defined. These objectives are written and known to organizational members.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 8.1: Define the nature and purposes of planning.

Classification: Concept

3 Copyright © 2025 Pearson Education, Inc.

13) White Forest Financials is a small investment firm, operating in an extremely volatile environment. One of the company's two owners, David White, is of the opinion that it would be futile for the company to engage in formal planning as the business environment is constantly shifting. However, the co-owner, Marsha Forest, believes that planning is essential for the company's success. Whom would you support? Why? Answer: Marsha Forest is correct in her observation that planning is essential to a company's success. Generally speaking, formal planning is associated with positive financial results.

Planning offers several advantages to companies. It establishes coordinated effort and gives direction to managers and non-managers alike. It reduces overlapping and wasteful activities.

Planning also establishes goals or standards that are used in controlling. Planning reduces uncertainty by forcing companies to look ahead, anticipate change, consider the impact of change, and develop appropriate responses. It also clarifies the consequences of actions companies might take in response to change. Even though planning can't eliminate change, companies plan in order to anticipate changes and develop the most effective response to them.

Even when the environment is highly uncertain, it's important to continue formal planning in order to see any effect on organizational performance. It's the persistence in planning that contributes to significant performance improvement. In an uncertain environment, managers should develop plans that are specific, but flexible. Managers need to recognize that planning is an ongoing process. The plans serve as a road map although the destination may change due to dynamic market conditions. They should be ready to change directions if environmental conditions warrant.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 8.1: Define the nature and purposes of planning.

Classification: Application 14) Discuss the impact of planning on organizational performance.

Answer: Numerous studies have looked at the relationship between planning and performance.

Although most showed generally positive relationships, we can't say that organizations that formally plan always outperform those that don't plan.

Generally speaking, formal planning is associated with positive financial results-higher profits, higher return on assets, and so forth. Additionally, it seems that doing a good job planning and implementing those plans play a bigger part in high performance than does how much planning is done. Next, in those studies where formal planning didn't lead to higher performance, the external environment often was the culprit. When external forces such as government regulations or powerful labor unions constrain managers' options, it reduces the impact planning has on an organization's performance. Finally, the planning-performance relationship seems to be influenced by the planning time frame. It seems that at least four years of formal planning is required before it begins to affect performance.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 8.1: Define the nature and purposes of planning.

Classification: Concept

4 Copyright © 2025 Pearson Education, Inc.

15) Which aspect of planning refers to documents that outline how results are to be achieved?

A) Goals B) Plans C) Objectives D) Performance guidelines Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 16) Goals are different from plans because ________.

A) goals identify specific steps that the organization needs to achieve, and plans identify the overall mission of the organization B) goals describe financial objectives, and plans describe objectives related to social responsibility C) goals are important only for small companies, and plans are important only for large companies D) goals are desired outcomes, and plans describe how those outcomes will be accomplished Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 17) Which one of the following statements is true regarding an organization's plans?

A) Plans can differ based on time frames.

B) Almost all plans are strategic plans.

C) Strategic plans may result in unethical behaviors by employees.

D) Long-term success is ensured if managers emphasize operational plans.

Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 18) Most companies' plans can be classified as either ________ or ________.

A) strategic; financial B) operational; tactical C) social; economic D) strategic; operational Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 5 Copyright © 2025 Pearson Education, Inc.

19) Organizational plans can be classified on the basis of their ________.

A) usefulness B) frequency of use C) suitability D) attainability Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 20) Strategic plans are usually ________.

A) short term, directional, and standing B) short term, specific, and standing C) long term, directional, and single use D) long term, specific, and standing Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 21) ________ plans apply to the entire organization and establish the organization's overall goals.

A) Departmental B) Strategic C) Operational D) Directional Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 22) Operational plans are usually ________.

A) short term and single use B) short term and specific C) long term and single use D) long term and standing Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept

6 Copyright © 2025 Pearson Education, Inc.

23) Plans that encompass only the production or the sales goals of a company are termed ________ plans.

A) operational B) strategic C) informal D) financial Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 24) Mr. Slabaugh wants to formulate a plan that lays out general guidelines for his employees and leaves room for interpretation. Which one of the following types of plans would best suit his requirement?

A) Informal B) Specific C) Directional D) Standing Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Application 25) Williamson is the owner of a small company that sells corporate gifts through an online store. Business has slowed down in recent months and he realizes that the organization must move in a different direction if it is to survive. He has reset some of the company's overall objectives and wants to develop a plan to achieve those objectives. He is anticipating the business environment to be volatile for the next few years. Considering the above information, it can be determined that his plan must be ________, ________, and ________.

A) operational; directional; rigid B) informal; unwritten; flexible C) strategic; general; rigid D) strategic; directional; flexible Answer: D Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Application

7 Copyright © 2025 Pearson Education, Inc.

26) Long-term plans are defined as those with a time frame beyond ________.

A) seven years B) one year C) five years D) three years Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 27) Short-term plans are those covering ________ or less.

A) three years B) one year C) six months D) five years Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 28) ________ plans are made under the assumption that the business environment and internal conditions will remain unchanged.

A) Directional B) Static C) Long-term D) Specific Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 29) Todd Miller, CEO of Miller's Grocery, has determined that all stores should be well maintained both inside and out. This is an example of a ________.

A) directional plan B) specific plan C) financial goal D) social goal Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Application

8 Copyright © 2025 Pearson Education, Inc.

30) Which plans involve making assumptions about the future and determining how the company will respond?

A) Standing plans B) Scenario plans C) Operational plans D) Long-term plans Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 31) Which of the following is an example of a single-use plan?

A) Affirmative action hiring policies of a company.

B) A plan developed to install a new computer network.

C) The procedure to be followed for firing low-performing employees.

D) A plan developed to ensure worker safety at the company's facilities.

Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Application 32) A standing plan is ________.

A) an ongoing plan that provides guidance for activities performed repeatedly B) a plan that stands in place of a preferred plan in case of the failure of the latter C) a one-time plan specifically designed to meet the needs of a unique situation D) a flexible plan that sets out general guidelines for company strategy Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 33) Which one of the following is an example of a standing plan?

A) A retail chain's plan to counter the entry of a new competitor.

B) A plan developed to address a sudden, unanticipated surge in demand.

C) A fire escape policy establishing practices to be followed in an emergency.

D) A plan to cope with radical changes in the political environment.

Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Application

9 Copyright © 2025 Pearson Education, Inc.

34) The number of years used to define short-term and long-term plans has increased considerably because of the greater environmental certainty businesses face today.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 35) Long-term plans are those with a time frame beyond five years.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 36) Short-term plans are those covering one year or less.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 37) While static plans can provide leaders with stable direction, they are not responsive to the increasingly dynamic environment in which most businesses operate.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 38) Directional plans are clearly defined and leave no room for interpretation.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 39) The standard procedure to be followed by the human resources department of a company when initiating disciplinary action against an employee is an example of a standing plan.

Answer: TRUE Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Application

10 Copyright © 2025 Pearson Education, Inc.

40) In a short essay, describe the different classifications of plans.

Answer: Strategic plans are plans that apply to the entire organization, establish the organization's overall objectives, and seek to position the organization in terms of its environment. Plans that specify the details of how the overall objectives are to be achieved are called operational plans. Strategic plans tend to cover a longer time frame and a broader view of the organization. Strategic plans also include the formulation of objectives whereas operational plans define ways to achieve the objectives. Operational plans tend to cover shorter time periods.

We define long-term plans as those with a time frame beyond three years. Short-term plans are those covering one year or less. Specific plans are plans that are clearly defined and that leave no room for interpretation. They have clearly defined objectives. There's no ambiguity and no problem with misunderstanding. The drawbacks of specific plans are that they require clarity and a sense of predictability that often do not exist. When uncertainty is high and managers must be flexible in order to respond to unexpected changes, directional plans are preferable. Directional plans are flexible plans that set out general guidelines. They provide focus but don't lock managers into specific objectives or courses of action. However, the flexibility inherent in directional plans must be weighed against the loss of clarity provided by specific plans. A singleuse plan is a one-time plan specifically designed to meet the needs of a unique situation. In contrast, standing plans are ongoing plans that provide guidance for activities performed repeatedly. Standing plans include policies, rules, and procedures. Static plans are made under the assumption that the business environment and the internal conditions will not change.

Scenario plans involve making assumptions about the future and then determining the appropriate response if those assumptions prove to be true.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 8.2: Classify the types of plans organizations might use.

Classification: Concept 41) When uncertainty is high, plans should be ________ and ________.

A) specific; flexible B) directional; standing C) short-term; directional D) general; informal Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.3: Identify the key contingency factors in planning.

Classification: Concept

11 Copyright © 2025 Pearson Education, Inc.

42) The commitment concept says that plans should ________.

A) extend far enough to meet those commitments made when the plans were developed B) be done for as long a time period as possible C) be done for as short a time period as possible D) not commit to specifically meeting the objectives made when the plans were developed Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.3: Identify the key contingency factors in planning.

Classification: Concept 43) Top executives are mainly involved in ________ planning.

A) functional B) operational C) strategic D) departmental Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.3: Identify the key contingency factors in planning.

Classification: Concept 44) ________ planning dominates managers' planning efforts at lower levels of the organization.

A) Strategic B) Organization-wide C) Operational D) Directional Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.3: Identify the key contingency factors in planning.

Classification: Concept 45) The commitment concept states that the more the current plans affect future commitments, the ________.

A) shorter the time horizon to implement the plans B) faster management needs to finalize and adopt the plans C) longer the time frame for which management should plan D) less control management has over timing Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.3: Identify the key contingency factors in planning.

Classification: Concept

12 Copyright © 2025 Pearson Education, Inc.

46) The rapid pace of technological change suggests that managers ________.

A) can do little now given the future uncertainty B) should not worry about long range plans C) should not commit large sums of money to long-term projects D) need to be very flexible Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.3: Identify the key contingency factors in planning.

Classification: Concept 47) The commitment concept says that plans should extend far enough to meet those commitments made when the plans were developed.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.3: Identify the key contingency factors in planning.

Classification: Concept 48) In an uncertain environment, managers should develop plans that are specific but flexible.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.3: Identify the key contingency factors in planning.

Classification: Concept 49) Environmental scanning involves monitoring the firm's pollution emissions.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 8.3: Identify the key contingency factors in planning.

Classification: Concept

13 Copyright © 2025 Pearson Education, Inc.

50) In a short essay, discuss the three planning contingency factors that influence the choice of plans and illustrate how these factors influence planning.

Answer: Three contingency factors affect planning: level in the organization, degree of environmental uncertainty, and length of future commitments. The planner's level in the organization is likely to determine whether the plan is more strategic versus more operational.

For the most part, operational planning dominates managers' planning at lower levels of the organization, while at upper levels, planning is more strategy-oriented. Environmental uncertainty is the second contingency factor. When uncertainty is high, plans should be specific, but more flexible. Under these conditions, managers may sometimes need to abandon an existing plan in favor of a new one. Under low uncertainty, management is more likely to adhere to existing plans. Lastly, the time frame of existing plans is likely to influence new and emerging plans. The more current plans affect future commitments, the longer the time frame is for which managers must plan.

Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 8.3: Identify the key contingency factors in planning.

Classification: Concept 51) In a short essay, describe how managers can effectively plan when the external environment is continually changing.

Answer: In an uncertain environment, managers want to develop plans that are specific, but flexible. Although this may seem contradictory, it's not. To be useful, plans need some specificity, but the plans should not be cast in stone. Managers must recognize that planning is an ongoing process. The plans serve as a roadmap although the destination may be changing constantly due to dynamic market conditions. They should be willing to change directions if environmental conditions warrant. This flexibility is particularly important as plans are implemented. Managers must stay alert to environmental changes that could impact the effective implementation of plans and make changes as needed. Keep in mind, also, that it's important to continue formal planning efforts, even when the environment is highly uncertain, in order to see any effect on organizational performance. It's the persistence in planning efforts that contributes to significant performance improvement. It seems that, as with most activities, managers "learn to plan" and the quality of their planning improves when they continue to do it. Finally, effective planning in dynamic environments means flattening the organizational hierarchy as the responsibility for establishing goals and developing plans is shoved to lower organizational levels because there's little time for objectives and plans to flow down from the top. Managers must train their employees in setting goals and establishing plans and then trust that they will do so.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 8.3: Identify the key contingency factors in planning.

Classification: Concept

14 Copyright © 2025 Pearson Education, Inc.

52) In ________, goals set by top managers flow down through the organization and become subgoals for each organizational area.

A) management by objectives B) management by observation C) traditional objective setting D) traditional planning Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept 53) Which one of the following is an assumption associated with traditional objective setting?

A) Employees will be more motivated to try to attain objectives set by their managers.

B) Clarity and specificity are preserved as the objectives filter down through organizational levels.

C) Top managers know what is best because they see the "big picture."

D) Managers and employees together develop objectives.

Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept 54) Which one of the following is a problem associated with traditional objective setting?

A) Top level managers tend to define the organization's objectives in very narrow terms.

B) Transition of strategic objectives into departmental, team, and individual objectives is difficult.

C) It can result in the formation of a means-ends chain.

D) Objectives set are invariably easily accomplished.

Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept

15 Copyright © 2025 Pearson Education, Inc.

55) A problem associated with traditional objective setting is that ________.

A) the narrowly defined objectives inhibit a manager's ability to interpret them B) the high degree of reliance on employees for developing objectives is not suited to many situations C) clarity is lost as the objectives make their way down from the top of the organization to lower levels D) it promotes the growth of a flatter organizational structure and threatens organizational efficiency Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept 56) Which one of the following statements is true of traditional objective setting?

A) Traditional objective setting assumes that employees know best and employs a bottom-up approach of setting organizational objectives.

B) Evaluation of performance is carried out concurrently with the flow of objectives through the organization.

C) Objectives defined narrowly by top managers need to be made more directional as they flow down through the organization.

D) Managers at each level define objectives and apply their own interpretations and biases as they make them more specific.

Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept 57) ________ is a process of setting mutually-agreed upon goals and using those goals to evaluate employee performance.

A) Management by objectives B) Management by walking around C) Management by observation D) Management by exception Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept

16 Copyright © 2025 Pearson Education, Inc.

58) Which one of the following is the first step in MBO? A) The organization's overall objectives and strategies are formulated by top management.

B) Unit managers collaboratively set specific objectives for their units with their managers.

C) Action plans are specified and agreed upon by managers and employees.

D) Major objectives are allocated among divisional and departmental units.

Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept 59) Which one of the following is the last step in MBO? A) Progress toward objectives is periodically reviewed, and feedback is provided.

B) The organization's overall objectives and strategies are formulated.

C) Successful achievement of objectives is reinforced by performance-based rewards.

D) Action plans are implemented.

Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept 60) Bonnie is discussing with her subordinate, Julie, the types of projects Julie would like to work on in the coming year. They are setting goals and determining what success would look like. Bonnie and Julie are engaged in ________.

A) performance planning B) strategic planning C) management by observation D) management by objectives Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Application 61) Maya has been working her plan for about three months. She is now discussing her progress with Reshma, her supervisor. If Maya and Reshma are using the MBO planning process, this discussion is called ________.

A) performance feedback B) redirection of goals C) advise and adjust D) the milestone checkpoint Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Application 17 Copyright © 2025 Pearson Education, Inc.

62) Which one of the following reflects the way goals are used in an MBO program?

A) Goals are used to prepare financial budgets for each unit.

B) Goals are used to broadly set the direction subject to encourage interpretation by individual managers.

C) Apart from being used to ensure that employees are doing what they are supposed to be doing, goals are used as a motivating tool for employees.

D) Goals are used to compare organizational performance year over year.

Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept 63) Which one of the following is true of the traditional approach to planning?

A) Plans are developed by organizational members at the various levels.

B) This approach makes managerial planning thorough, systematic, and coordinated.

C) Plans created through this method are seldom written down.

D) Formal planning departments are rarely used in this approach.

Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept 64) When is the traditional top-down approach to planning most likely to be effective?

A) When lower level employees develop plans.

B) When the plans focus on developing a large number of plans and carefully documenting them.

C) When the management avoids the use of a formal planning department.

D) When plans are developed that can actually be used by organizational members.

Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept 65) When lower-level managers and employees are involved in the planning process, ________.

A) the documents they create are rarely reviewed B) the plans take on a life of their own C) their job satisfaction increases but productivity suffers D) they see the plans as more than just something written down on paper Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept

18 Copyright © 2025 Pearson Education, Inc.

66) If top management set an objective that each store in the company should have sales equal to or greater than $100 per square foot per day, this would be an example of ________.

A) a strategic plan B) a directional plan C) a financial objective D) a strategic objective Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Application 67) Nike, Inc. is a sportswear and equipment manufacturer that serves a multitude of sports disciplines. Which one of the following statements from Nike would be the best example of a strategic objective?

A) A ten percent increase in average annual sales.

B) A seven percent increase in average annual income.

C) Achieving a return on investment of 17 percent.

D) Accelerating growth through focused execution.

Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Application 68) Robert Downs, owner of a new community newspaper in his home town of Corning, New York, has set the following objective for his company: "To be a champion for free speech and for the development of the community." This objective constitutes the ________ objective of the company.

A) informal B) operational C) financial D) stated Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Application

19 Copyright © 2025 Pearson Education, Inc.

69) An organization's ________ objectives are official statements of what an organization says, and what it wants its stakeholders to believe its objectives are.

A) stated B) real C) authentic D) implicit Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept 70) When making editorial decisions for his newspaper, the owner/editor mostly picks issues that are in line with his political beliefs and those that his advertisers approve of despite his publicly stated goal "to be a champion for free speech and for the development of the community." This indicates that ________.

A) the company's strategic objectives do not leave any room for interpretation B) the company's stated objectives are not its real objectives C) the company's objectives are directional in nature D) the company's financial objectives derive from its strategic objectives Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Application 71) Which one of the following is the best indicator of an organization's real objectives?

A) Organizational members' actions B) Mission statement C) Annual reports D) Stock valuation Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept

20 Copyright © 2025 Pearson Education, Inc.

72) An organization's mission states that it "is committed to reducing its environmental footprint"; but its facilities do not comply with statutory environmental regulations. This is an instance of how ________.

A) strategic objectives help shape financial objectives B) long-term objectives differ from short-term objectives C) an organization's stated objectives need not be its real objectives D) a company's real objectives are derived from its mission statement Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Application 73) In traditional objectives setting, objectives set by top managers flow down through the organization and become subgoals for each organizational area.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept 74) In the management by objectives (MBO) process of objective setting, objectives are ambiguous, giving managers and employees more flexibility to respond to changing conditions.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept 75) When organizational members are more actively involved in planning, the probability that the plan will be used increases.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept 76) As managers plan, they develop both objectives and plans.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept

21 Copyright © 2025 Pearson Education, Inc.

77) Most businesses have only the single objective of making profits.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept 78) Strategic objectives focus exclusively on the financial performance of the organization.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept 79) The SMART framework can help managers write more effective objectives.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept 80) In a short essay, define management by objectives (MBO) and list four elements of this type of goal setting.

Answer: Management by objectives (MBO) is a management system in which specific performance objectives are jointly determined by employees and their managers, progress toward accomplishing these goals is periodically reviewed, and rewards are allocated on the basis of this progress. Rather than using objectives only as controls, MBO uses them to motivate employees as well. Management by objectives consists of four elements: objective specificity, participative decision making, an explicit time period, and performance feedback. Its appeal lies in its focus on employees working to accomplish objectives they have had a hand in determining.

Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept

22 Copyright © 2025 Pearson Education, Inc.

81) Distinguish between the stated and the real objectives of an organization. Illustrate the difference with an example.

Answer: An organization's stated objectives are official statements of what an organization says, and what it wants its stakeholders to believe, its objectives are. However, stated objectiveswhich can be found in an organization's charter, annual report, public relations announcements, or in public statements made by managers-are often conflicting and influenced by what various stakeholders think organizations should do. Such statements are vague and probably better represent management's public relations skills than being meaningful guides to what the organization is actually trying to accomplish. It shouldn't be surprising then to find that an organization's stated objectives are often irrelevant to what actually goes on. If you want to know an organization's real objectives-those objectives an organization actually pursues-observe what organizational members are doing. Actions define priorities. For example, a company may publicly commit to increasing worker participation in management, while actually practicing a hierarchical, top-down approach. Knowing that real and stated objectives may differ is important for recognizing what you might otherwise think are inconsistencies.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 8.4: Compare and contrast approaches to objective setting.

Classification: Concept 82) Environmental scanning refers to an organization's ________.

A) social consciousness with regard to sustainability B) adoption of tools to measure its carbon footprint C) screening of vast amounts of information to detect trends D) ability to focus solely on potential political change.

Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept 83) Competitive intelligence refers to ________.

A) the collective intelligence of a firm's primary competitors B) gathering information about competitors to help you anticipate their actions C) reacting to competitor strategies as they unfold in the market D) gathering information about your competitors by any possible means Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept

23 Copyright © 2025 Pearson Education, Inc.

84) Which of these sources can managers ethically use to gather information about their competitors?

A) Press releases, annual reports, Internet searches B) Press releases, private detectives, industry studies C) Fired employees, posing as a potential customer D) Searching through a firm's trash, annual reports Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept 85) One example of competitive intelligence occurs in professional sports where ________.

A) coaches hire people to watch the practices of opponents B) team managers hire experts to help read lips to determine the play C) reporters ask questions to determine next week's game strategy D) most teams combine scouting reports and other analytics Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept 86) Technology makes it ________.

A) easier to conduct environmental scanning B) more challenging to conduct environmental scanning due to the amount of information C) harder to keep up with any changes a competitor makes D) easier to engage in unethical data collection Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept 87) A recent survey of 1,500 CEOs found that ________ believe if they don't figure out how to integrate AI into their management practices, they risk going out of business.

A) 25% B) 50% C) 75% D) 95% Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept

24 Copyright © 2025 Pearson Education, Inc.

88) How can managers effectively plan when the external environment is continually changing?

A) They should discontinue formal planning.

B) They should set general, but rigid plans.

C) They should be ready to change directions if environmental conditions warrant.

D) They should continue to follow the set organizational plans as persistence will eventually pay.

Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept 89) A manager's analysis of the external environment can be improved by ________, which involves screening information to detect emerging trends.

A) environmental scanning B) environmental activism C) critical path analysis D) social screening Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept 90) ________ refers to gathering information about competitors that allows managers to anticipate competitors' actions rather than merely react to them.

A) Due diligence B) Competitive intelligence C) Data aggregation D) Value analysis Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept

25 Copyright © 2025 Pearson Education, Inc.

91) Which one of the following statements is true of competitive intelligence as a means of environmental scanning?

A) The Competitive Espionage Act makes it a crime in the United States to engage in competitive intelligence.

B) It is unethical to use competitive intelligence to make strategic business decisions.

C) Competitive intelligence is ethical if competitor-related information is collected from sources accessible and available to the public.

D) Buying competitors' products and asking their own employees to evaluate them to learn about new technical innovations is an example of the unethical practices followed in competitive intelligence.

Answer: C Diff: 2 AACSB: Ethical understanding and reasoning Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept 92) ________ involves the theft of proprietary materials or trade secrets by any means.

A) Corporate espionage B) Business intelligence C) Data mining D) Data aggregation Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept 93) Which one of the following would be a legal and ethical source of business intelligence?

A) Competitors' financial data B) Information provided by a former employee C) Memos found in a business's trash D) Posts on a firm's intranet Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Application 94) Firms can monitor, and potentially influence, proposed legislative and political changes through the use of lobbyists.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept

26 Copyright © 2025 Pearson Education, Inc.

95) Environmental scanning refers to screening large amounts of information to detect emerging trends and create a set of scenarios.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept 96) General economic news has almost no value to managers since the firm cannot influence economic activity.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept 97) Debriefing your own sales staff is a good way to glean information about competitors.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept 98) Competitive intelligence is the same thing as corporate espionage.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept 99) One good way to gain competitive advantage is to spread inaccurate information about your firm.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept 100) It makes sense to put AI at the central point of planning–it consumes and learns from data, creating opportunities for managers to support planning.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept

27 Copyright © 2025 Pearson Education, Inc.

101) One planning tool that emerged from the video game industry is virtual reality.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept 102) A lot of competitive intelligence is available from public sources, but it is illegal to use it to gain a competitive advantage.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept 103) Business intelligence is the same thing as competitive intelligence.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept 104) There is a fine line between what is legal and ethical and what is legal but unethical.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept

28 Copyright © 2025 Pearson Education, Inc.

105) What is competitive intelligence? Identify some of the sources of competitor intelligence.

Discuss the legal and ethical issues related to this concept.

Answer: Competitive intelligence involves gathering information about competitors that allows managers to anticipate competitors' actions rather than merely react to them. It is one of the fastest-growing forms of environmental scanning. It seeks basic information about competitors: Who are they? What are they doing? How will what they're doing affect us?

Advertisements, promotional materials, press releases, reports filed with government agencies, annual reports, want ads, newspaper reports, information on the Internet, and industry studies are readily accessible sources of information. Specific information on an industry and associated organizations is increasingly available through electronic databases.

Managers can literally tap into this wealth of competitor information by purchasing access to databases. Attending trade shows and debriefing your own sales staff can also be good sources of information on competitors. In addition, many organizations even regularly buy competitors' products and ask their own employees to evaluate them to learn about new technical innovations.

Managers do need to be careful about the way information, especially competitor intelligence, is gathered to prevent any concerns about whether it's legal or ethical. Difficult decisions about competitor intelligence arise because often there's a fine line between what's considered legal and ethical and what's considered legal but unethical. Some people or companies will go to any lengths -some unethical-to get information about competitors. Many who study competitor intelligence suggest that much of the competitor-related information managers need to make crucial strategic decisions that are available and accessible to the public. In other words, competitor intelligence isn't corporate espionage.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept 106) Discuss ways that AI might affect an organization in the near future.

Answer: Generally speaking, it is difficult for humans to analyze large amounts of data. AI and machine learning can identify trends in the data, predict future results, and also create or recommend future actions or plans, helping to support quicker planning. From a customer perspective, AI can study trends in consumer behaviors or in customer engagement. From an operations or supply chain perspective, AI can be useful to help analyze and forecast supply and demand of materials or products. From an employee management perspective, AI can also support workforce planning.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 8.5: Discuss contemporary issues in planning.

Classification: Concept

29 Copyright © 2025 Pearson Education, Inc.

Management, 16e (Robbins) Chapter 9 Managing Strategy 1) The CEO is meeting with his top managers to determine how best to compete successfully in the company's market. This group is developing the company's ________.

A) strategy B) competitive advantage C) strengths and weaknesses D) opportunities and threats Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.1: Define strategic management and explain why it's important.

Classification: Application 2) The top managers of the corporation are meeting to discuss how they will compete in their chosen markets and how they will attract and satisfy customers. These managers are discussing ________.

A) the business model B) strategy C) their competitive advantage D) core competencies Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.1: Define strategic management and explain why it's important.

Classification: Application 3) A ________ describes the rationale of how a company is going to make money.

A) mission statement B) business model C) SWOT analysis D) core competency Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.1: Define strategic management and explain why it's important.

Classification: Concept

1 Copyright © 2025 Pearson Education, Inc.

4) The CEO and his top managers have asked themselves two important questions: (a) do customers value what the company is providing?; and (b) can the company make money doing that? This group is developing a ________.

A) strategy B) competitive advantage C) business model D) BCG matrix Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.1: Define strategic management and explain why it's important.

Classification: Application 5) The main reason strategic management is important is ________.

A) it allows an organization to anticipate economic recessions B) it can make a difference in how well an organization performs C) it reduces uncertainty D) it simplifies the environment Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.1: Define strategic management and explain why it's important.

Classification: Concept 6) Which of the following is NOT one of the reasons that all employees should be involved in the strategic management process?

A) Employees from all levels can bring perspectives not held by top managers.

B) Involving all employees can enhance employee engagement.

C) Soliciting input from all employees is more difficult than hiring an outside consultant.

D) Asking employees for input can also gain early buy-in for the new strategic plan.

Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.1: Define strategic management and explain why it's important.

Classification: Concept 7) A strategy defines how a company is going to make money.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.1: Define strategic management and explain why it's important.

Classification: Concept

2 Copyright © 2025 Pearson Education, Inc.

8) A business model describes how a company is going to make money and what it is going to do with it.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.1: Define strategic management and explain why it's important.

Classification: Concept 9) Business managers are generally more resistant to allowing AI to generate strategy than other applications of AI. Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.1: Define strategic management and explain why it's important.

Classification: Concept 10) Strategic management is not important for non-profit organizations because their focus is on providing a needed service, not on making a profit.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.1: Define strategic management and explain why it's important.

Classification: Concept 11) In a short essay, explain strategic management and why it is important.

Answer: Strategic management is what managers do to develop the organization's strategies. It is an important task involving all the basic management functions-planning, organizing, leading, and controlling.

There are three reasons as to why strategic management is important.

(1) The most significant one is that it can make a difference in how well an organization performs. Generally, there is a positive relationship between strategic planning and performance.

Generally, organizations that use strategic management have higher levels of performance.

(2) Another reason it is important has to do with the fact that managers in organizations of all types and sizes face continually changing situations. They cope with this uncertainty by using the strategic management process to examine relevant factors and decide what actions to take.

(3) Finally, strategic management is important because organizations are complex and diverse.

Each part needs to work together toward achieving the organization's goals; strategic management helps do this.

Today, strategic management has become so important that both business organizations and notfor-profit organizations use it.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 9.1: Define strategic management and explain why it's important.

Classification: Concept

3 Copyright © 2025 Pearson Education, Inc.

12) Defining the organizational mission forces managers to identify what ________.

A) its competitive advantage is B) the organization is in business to do C) its capabilities are D) pending legislation will affect the organization Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Concept 13) Managers perform an external analysis so that they know about ________.

A) the firm's basic beliefs and ethical priorities B) what the competition is doing C) what vendors want D) their organization's core competencies Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Concept 14) Patrick expects each person he hires for his online business to be involved in studying trends involving new technology, competitors, and customers. These employees are involved in ________.

A) external analysis B) internal analysis C) economic analysis D) industry analysis Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Application

4 Copyright © 2025 Pearson Education, Inc.

15) When an organization is analyzing its labor supply, it is studying its ________.

A) regulatory environment B) internal environment C) external environment D) economic environment Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Application 16) ________ are positive trends in the external environment.

A) Strengths B) Threats C) Weaknesses D) Opportunities Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Concept 17) Computer peripherals provider Ascent plans to enter a new market in another country. Which one of the following represents a threat for Ascent?

A) Ascent's profit margin in the previous year was its lowest on record and it will require longterm planning to improve margins.

B) Ascent lacks the resources to enter the market on its own and has to find a partner in the new market.

C) Ascent will have to plan its entry carefully as the laws in the country do not favor foreign businesses.

D) Ascent needs to improve its service capabilities in the new country as this is an important source of revenue.

Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Application

5 Copyright © 2025 Pearson Education, Inc.

18) A study of the external environment allows a manager to understand the ________ and ________ for the organization.

A) threats; weaknesses B) strengths; weaknesses C) strengths; opportunities D) opportunities; threats Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Concept 19) Brutus' Fried Chicken patented the recipe for the spices used in the coating of the chicken.

The patent protection lasts for 20 years. Brutus' Fried Chicken will view this patent protection as a ________.

A) threat until the patent expires B) strength during the time of the patent protection C) weakness because the patent cannot be renewed D) cost of doing business Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Application 20) Casey majored in marketing and really enjoyed studying market research as a subject.

Through research on the Internet and in the university library, she discovers that the sporting goods industry appears to have significant positive trends in employment. She interprets this as a(n) ________.

A) weakness B) threat C) strength D) opportunity Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Application

6 Copyright © 2025 Pearson Education, Inc.

21) Casey realizes that she has a personal characteristic that suggests she is not comfortable interacting with strangers. She interprets this as a(n) ________ if she intends to get a job as a salesperson.

A) threat B) strength C) weakness D) opportunity Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Application 22) Helen, the owner of Crazy Cupcakes, is conducting a SWOT analysis of her company.

Which one of the following represents an opportunity for expansion?

A) There has been a trend toward personalized cupcakes for a variety of occasions.

B) The production process was found to be highly efficient and wastage was kept to a minimum.

C) In a taste test, Crazy Cupcakes products ranked higher than competitors in the taste and texture segments.

D) One of Crazy Cupcakes competitors has added cookies to its product line.

Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Application 23) Newmark RV is performing an internal analysis. Which of the following would be considered a resource?

A) A patent for a special design feature B) A method of production not used by competitors C) Strongly positive reviews from existing customers D) Membership in RVIA, the industry association Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Application

7 Copyright © 2025 Pearson Education, Inc.

24) Bella Vista Clothing targets teenage girls with a range of affordable ready-to-wear clothing.

The company is opening two new outlets, as sales have been excellent. Which one of the following represents a strength for the company?

A) The company's in-house designers have a knack for identifying and popularizing fashion trends.

B) Disposable income is rising and consumers will have more money to spend on clothes.

C) Bella Vista has excess production capacity.

D) A long-time competitor recently went out of business and Bella Vista can cut down on its advertising budget.

Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Application 25) A bank estimates the capabilities of its customer service employees prior to implementing a new training program designed to change their method of providing customer service. The bank is ________.

A) conducting an external analysis B) formulating its competitive strategies C) performing an internal analysis D) performing an employee audit Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Application 26) An organization's financial, physical, human, and intangible assets are known as its ________.

A) resources B) capabilities C) strengths D) core competencies Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Concept

8 Copyright © 2025 Pearson Education, Inc.

27) Harness International, a global wiring harness company, allows each customer to access its engineering drawings on the company's extranet, speeding up the design process for every project. Harness would consider this to be a(n) ________.

A) resource B) capability C) competitive advantage D) opportunity Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Application 28) The major value-creating capabilities of the organization are known as its ________.

A) strengths B) competitive advantages C) core competencies D) resources Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Concept 29) The combined external and internal analyses are called ________.

A) competitor analysis B) industry analysis C) market analysis D) SWOT analysis Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Concept

9 Copyright © 2025 Pearson Education, Inc.

30) After the SWOT analysis is complete, managers are ready to ________.

A) begin production B) identify competitors C) formulate strategies D) build prototypes Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Concept 31) The final step in the strategic management process allows an organization to understand the ________.

A) effectiveness of the strategies used B) implementation of the strategies C) external environment D) resources and capabilities it possesses Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Concept 32) The first step in the strategic management process is analyzing the external environment.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Concept 33) A firm's reputation in the marketplace would be considered a resource.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Concept

10 Copyright © 2025 Pearson Education, Inc.

34) Evaluating an organization's intangible assets is part of conducting an internal analysis in the strategic management process.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Concept 35) Activities that an organization does well or resources that it has available are called capabilities.

Answer: FALSE Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Concept 36) Exceptional or unique organizational resources are known as core capabilities.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Concept 37) When conducting a SWOT analysis, threats are activities the organization doesn't do well or resources it needs but doesn't possess.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Concept 38) A SWOT analysis includes an analysis of an organization's environmental opportunities and threats.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Concept

11 Copyright © 2025 Pearson Education, Inc.

39) The final step in the strategic management process is implementing the objectives.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Concept 40) Identify the five steps in the strategic management process and briefly explain what happens in each step.

Answer: Step 1: Start with Purpose: Identifying the Organization's Current Mission - Every organization needs a mission-a statement of its purpose. Defining the mission forces managers to identify what it's in business to do. These statements provide clues to what these organizations see as its purpose.

Step 2: SWOT Analysis - Managers conduct a SWOT analysis, which is an analysis of the organization's strengths, weaknesses, opportunities, and threats. Conducting an external analysis informs managers about what the competition is doing, what pending legislation might affect the organization, or what the labor supply is like in locations where it operates. In an external analysis, managers should examine the economic, demographic, political/legal, sociocultural, technological, and global components to see the trends and changes. An internal analysis provides important information about an organization's specific resources and capabilities. After completing an internal analysis, managers should be able to identify organizational strengths and weaknesses.

Step 3: Formulating Strategies - The three main types of strategies managers will formulate include corporate, competitive, and functional.

Step 4: Implementing Strategies - Once strategies are formulated, they must be implemented. No matter how effectively an organization has planned its strategies, performance will suffer if the strategies are not implemented properly.

Step 5: Evaluating Results - The final step in the strategic management process is evaluating results.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 9.2: Explain what managers do during the five steps of the strategic management process.

Classification: Concept 41) Top-level managers are responsible for ________ strategies.

A) tactical B) corporate C) competitive D) functional Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 12 Copyright © 2025 Pearson Education, Inc.

42) Lower-level managers are responsible for ________ strategies.

A) functional B) stability C) corporate D) tactical Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 43) A(n) ________ strategy determines what businesses a company is in or wants to be in, and what it wants to do with those businesses.

A) competitive B) functional C) operating D) corporate Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 44) What are the three main types of corporate strategies?

A) Stability, focus, and turnaround B) Growth, stability, and renewal C) Growth, cost leadership, and differentiation D) Stability, differentiation, and focus Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 45) A ________ strategy is when an organization expands the number of markets served or the products offered.

A) growth B) renewal C) stability D) retrenchment Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept

13 Copyright © 2025 Pearson Education, Inc.

46) Organizations grow by using strategies of ________.

A) concentration, integration, or diversification B) concentration, integration, or stabilization C) integration, diversification, or differentiation D) integration, diversification, or functionalization Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 47) An organization that grows using ________ focuses on its primary line of business and increases the number of products offered or markets served in this primary business.

A) diversification B) horizontal integration C) vertical integration D) concentration Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 48) Emily's Bakery's customers have asked her to open a second location in a neighboring town offering the same menu as the original location. If Emily decides to do this, she will be following a ________ strategy.

A) focus B) differentiation C) concentration D) diversification Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Application 49) In ________ integration, the organization becomes its own supplier so it can control its inputs.

A) concentrated B) backward vertical C) forward vertical D) horizontal Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 14 Copyright © 2025 Pearson Education, Inc.

50) Hendricks Ceramics sells items it buys from ceramic factories. If it were to purchase one of these factories, it would be engaging in ________ integration.

A) forward vertical B) backward vertical C) horizontal D) concentrated Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Application 51) In ________ integration, the organization gains control of its outputs by becoming its own distributor.

A) diversified B) concentrated C) backward vertical D) forward vertical Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 52) The French fries at Ronald's fast food business have been its most popular product. During the past year, its profits have suffered because the farm that supplies it with potatoes has increased its prices drastically. What should Ronald's do to control its production costs?

A) Ronald's should expand its menu to include sweet potato fries.

B) Ronald's should buy out the farm and become its own supplier.

C) Ronald's should invest in more efficient fryers.

D) Ronald's should broaden its product range by introducing potato nuggets on its menu.

Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Application 53) In ________, a company grows by combining with competitors.

A) concentrated integration B) horizontal integration C) vertical integration D) lateral integration Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 15 Copyright © 2025 Pearson Education, Inc.

54) Joe's Hardware bought Moe's hardware on the other side of town. This is an example of ________.

A) backward integration B) forward integration C) lateral integration D) horizontal integration Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Application 55) An organization that is diversifying its product line is exhibiting what type of corporate strategy?

A) Turnaround strategy B) Retrenchment strategy C) Growth strategy D) Diversification strategy Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 56) ________ takes place when a company combines with other companies in different, but associated, industries.

A) Stabilized diversification B) Horizontal integration C) Vertical integration D) Related diversification Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 57) When a company combines with firms in different and dissimilar industries, it is engaging in ________.

A) unrelated diversification B) horizontal integration C) vertical integration D) focused diversification Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 16 Copyright © 2025 Pearson Education, Inc.

58) Florance is a chain of flower shops in the Chicago area. The company recently acquired Knick-knacks, which owns three gift shops. Which of the following is most similar to this acquisition?

A) A construction firm acquired a textile manufacturer as it seemed like a good investment.

B) Faced with mounting raw material costs, a consumer goods producer took over its supplier.

C) One shoe store chain buys out another shoe store chain and expands its distribution channels through the acquired chain's outlets.

D) A toy retailer acquired a children's bookstore chain and now retails both toys and books from co-branded outlets.

Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Application 59) When an organization continues serving the same clients by offering the same product or service, maintaining market share, and sustaining the organization's current business operations, it is following a ________ strategy.

A) renewal B) stability C) retrenchment D) growth Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 60) Tom's Welding has been supplying frames to the mobile home industry for many years. His business has remained steady despite the entry of other firms into the industry. Tom's is likely pursuing a ________ strategy.

A) retrenchment B) renewal C) stability D) differentiation Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Application

17 Copyright © 2025 Pearson Education, Inc.

61) ________ strategies address declining performance through retrenchment and turnaround strategies.

A) Renewal B) Stability C) Growth D) Functional Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 62) A ________ strategy is used to deal with minor performance problems. It helps an organization stabilize operations, revitalize organizational resources and capabilities, and prepare to compete once again.

A) turnaround B) stability C) renewal D) retrenchment Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 63) During the Great Recession, Malcolm's Racing Bikes lost a considerable amount of its business because customers could no longer afford the expensive models in his shop. He was very near bankruptcy. Malcolm began carrying a line of less expensive bikes to appeal to recreational bicyclists and families and also opened a repair service. Malcolm used a ________ strategy.

A) retrenchment B) diversification C) turnaround D) reorganization Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Application

18 Copyright © 2025 Pearson Education, Inc.

64) Which one of the following provides a framework for understanding diverse businesses and helps managers establish priorities for allocating resources?

A) A differentiation matrix B) A competitive strategy C) A corporate portfolio matrix D) A business unit matrix Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 65) In the BCG matrix, a ________ enjoys a high anticipated growth rate and a high market share.

A) question mark B) star C) cash cow D) dog Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 66) In the Boston Consulting Group (BCG) matrix, a business unit that has a low anticipated growth rate but a high market share is known as a ________.

A) cash cow B) star C) dog D) question mark Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 67) The tobacco market in the United States has stagnated but Altria has a 50% share of it.

According to the BCG Matrix, Altria is a ________.

A) star B) cash cow C) question mark D) dog Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Application 19 Copyright © 2025 Pearson Education, Inc.

68) In the BCG matrix, a business unit that has a high anticipated growth rate but a low market share is known as a ________.

A) star B) dog C) cash cow D) question mark Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 69) AI Rubber is one of four suppliers of molded rubber products and has a 45% market share.

The market for its products is shrinking. AI Rubber is part of a larger corporation that includes a total of seven different companies. In the BCG matrix, AI Rubber would be considered a ________.

A) star B) cash cow C) question mark D) dog Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Application 70) When a totally new product such as laser discs years ago is introduced, it would be considered a ________ according to the BCG matrix.

A) star B) cash cow C) question mark D) dog Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Application

20 Copyright © 2025 Pearson Education, Inc.

71) When Stratasys began making 3D printers in 1988, the future of this new invention was unknown but expected to grow. Stratasys was one of a handful of producers of these printers.

According to the BCG matrix, Stratasys was a ________.

A) cash cow B) question mark C) dog D) star Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Application 72) In the BCG matrix, a ________ has a low anticipated growth rate and a low market share.

A) question mark B) cash cow C) dog D) star Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 73) As smartphone cameras improved, consumers turned away from traditional cameras.

Polaroid lost market share and finally realized their product was no longer desired. At that point, Polaroid would be considered a ________ in the BCG matrix.

A) question mark B) dog C) cash cow D) star Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Application

21 Copyright © 2025 Pearson Education, Inc.

74) ________ should be sold off or liquidated as they have low market share and low growth potential.

A) Cash cows B) Stars C) Question marks D) Dogs Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 75) Managers should "milk" cash cows for as much as they can, limit any new investment in them, and use the large amounts of cash generated to invest in ________ and ________.

A) dogs; stars B) cash cows; dogs C) stars; question marks D) question marks; dogs Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 76) Heavy investment in ________ will help take advantage of the market's growth and help maintain high market share.

A) cash cows B) stars C) question marks D) dogs Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 77) Corporate strategies determine what business a company is in or wants to be in, and what it wants to do with those businesses.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept

22 Copyright © 2025 Pearson Education, Inc.

78) Diversification is an example of a corporate retrenchment strategy.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 79) If Burger King were to buy out Mom and Pop's Burgers, Burger King would be growing by vertical integration.

Answer: FALSE Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Application 80) When a firm integrates backward, it becomes its own distributor.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 81) A trucking company that grows by purchasing a chain of gasoline stations is engaged in horizontal integration.

Answer: FALSE Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Application 82) A stability strategy is an organizational strategy in which an organization maintains the status quo.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 83) A retrenchment strategy is a short-run renewal strategy that helps an organization stabilize operations, revitalize organizational resources and capabilities, and prepare to compete once again.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 23 Copyright © 2025 Pearson Education, Inc.

84) A turnaround strategy is a type of renewal strategy used when an organization is in serious trouble.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 85) The BCG matrix evaluates an organization's various businesses to identify which ones offer high potential and which ones drain organizational resources.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 86) Stars, one of the four business groups in the BCG matrix, are characterized by low growth and high market share.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 87) List and discuss the different types of corporate strategies.

Answer: The three main types of corporate strategies are growth, stability, and renewal. a. Growth - A growth strategy is when an organization expands the number of markets served or products offered, either through its current businesses or through new businesses. Because of its growth strategy, an organization may increase revenues, number of employees, or market share.

Organizations grow by using concentration, vertical integration, horizontal integration, or diversification. b. Stability - A stability strategy is a corporate strategy in which an organization continues to do what it is currently doing. Examples of this strategy include continuing to serve the same clients by offering the same product or service, maintaining market share, and sustaining the organization's current business operations. The organization does not grow, but does not fall behind, either. c. Renewal - When an organization is in trouble, something needs to be done. Managers need to develop strategies, called renewal strategies, that address declining performance. The two main types of renewal strategies are retrenchment and turnaround strategies.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept

24 Copyright © 2025 Pearson Education, Inc.

88) Discuss the methods by which an organization grows.

Answer: Organizations grow by using concentration, vertical integration, horizontal integration, or diversification. An organization that grows using concentration focuses on its primary line of business and increases the number of products offered or markets served in this primary business. A company also might choose to grow by vertical integration, either backward, forward, or both. In backward vertical integration, the organization becomes its own supplier so it can control its inputs In forward vertical integration, the organization becomes its own distributor and is able to control its outputs. Finally, an organization can grow through diversification, either related or unrelated. Related diversification happens when a company combines with other companies in different, but related, industries. Unrelated diversification is when a company combines with firms in different and unrelated industries.

Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Application 89) Discuss the corporate portfolio matrix and the Boston Consulting Group (BCG) matrix.

Answer: When an organization's corporate strategy encompasses a number of businesses, managers can manage this collection, or portfolio, of businesses using a tool called a corporate portfolio matrix. This matrix provides a framework for understanding diverse businesses and helps managers establish priorities for allocating resources.

The first portfolio matrix-the BCG matrix-was developed by the Boston Consulting Group and introduced the idea that an organization's various businesses could be evaluated and plotted using a 2 × 2 matrix to identify which ones offered high potential and which were a drain on organizational resources. The horizontal axis represents market share (low or high) and the vertical axis indicates anticipated market growth (low or high). A business unit is evaluated using a SWOT analysis and placed in one of the four categories: dogs, cash cows, stars, and question marks. a. Dogs - They should be sold off or liquidated as they have low market share in markets with low growth potential. b. Cash Cows - These have low anticipated growth rate but high market share. Managers should "milk" them for as much as they can, limit any new investment in them, and use the large amounts of cash generated to invest in stars and question marks with strong potential to improve market share. c. Stars - These have high anticipated growth rate and high market share. Heavy investment in stars will help take advantage of the market's growth and help maintain high market share. The stars eventually develop into cash cows as their markets mature and sales growth slows. d. Question Marks - These have high anticipated growth rate but low market share. The hardest decision for managers relates to the question marks. After careful analysis, some will be sold off and others strategically nurtured into stars.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept

25 Copyright © 2025 Pearson Education, Inc.

90) List and discuss the three levels of strategy that a large organization must develop.

Answer: a. Corporate Strategy - This strategy determines what businesses a company is in or wants to be in, and what it wants to do with those businesses. It is based on the mission and goals of the organization and the roles each business unit of the organization will play. It also helps top managers decide what to do with the businesses: grow them, keep them the same, or renew them. b. Competitive Strategy - This is a strategy for how an organization will compete in its businesses. For a small organization in only one line of business or the large organization that has not diversified into different products or markets, its competitive strategy describes how it will compete in its primary or main market. For organizations in multiple businesses, however, each business will have its own competitive strategy that defines its competitive advantage, the products or services it will offer, and the customers it wants to reach. c. Functional Strategy - This is the strategy used by an organization's various functional departments to support the competitive strategy.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 9.3: Describe the three types of corporate strategies.

Classification: Concept 91) A ________ describes how a business will compete in its primary market.

A) mission statement B) corporate strategy C) competitive advantage D) competitive strategy Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept 92) In an organization, the single independent businesses which formulate their own competitive strategies are known as ________.

A) strategic growth units B) strategic business units C) strategic profit units D) service units Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept

26 Copyright © 2025 Pearson Education, Inc.

93) Bixler Corporation boasts that it has the fewest warranty claims in its industry. We can infer from this that ________.

A) Bixler's quality is a competitive advantage B) Bixler has an ineffective TQM program C) Bixler has employed design thinking in the development of its products D) Bixler is using social media to promote its products Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Application 94) A firm's ________ strategy is an organizational strategy for how it will compete in its primary or main market.

A) primary B) competitive C) market D) concentration Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Application 95) When used to connect with customers or to connect employees with co-workers in other locations, social media ________.

A) provide a means for customers to order products online B) create distractions that can keep employees from being productive C) provide information for competitors that give them a competitive advantage D) can create a competitive advantage Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Application

27 Copyright © 2025 Pearson Education, Inc.

96) Which of the following is a competitive force under the five forces model?

A) Past rivalry with competitors B) Bargaining power of distributors C) Vertical integration D) Threat of new entrants Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept 97) When the price of beef skyrockets, consumers switch to pork and chicken. This demonstrates ________.

A) the threat of new entrants B) the threat of substitutes C) the bargaining power of buyers D) the bargaining power of suppliers Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Application 98) When one gas station lowers its price a penny, the station on the other corner of the intersection lowers its price, followed by the gas stations on the next block, and so on, until nearly every gas station in town has lowered its prices. This situation illustrates ________.

A) intense rivalry among competitors B) a differentiation strategy C) the threat of substitutes D) a cost leadership strategy Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Application

28 Copyright © 2025 Pearson Education, Inc.

99) A cost leadership strategy requires a firm to ________.

A) maintain the lowest cost structure B) maintain the lowest prices to its customers C) aim at a cost advantage in a niche market D) match its competition's prices Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept 100) People's Airlines offers what it calls "no frills" flights: no reserved seating, no snacks or meals on flights, small planes that fly to smaller airports away from the city centers. People's Airlines is likely following a ________ strategy.

A) differentiation B) focus C) quality D) cost leadership Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Application 101) Every fast food hamburger restaurant chain wants you to believe their product is the best because it is stored or prepared uniquely. Each of these is pursuing a ________.

A) low cost leadership strategy B) differentiation strategy C) focus strategy D) quality strategy Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept

29 Copyright © 2025 Pearson Education, Inc.

102) A company that competes by offering unique products that are widely valued by customers is following a ________.

A) leadership strategy B) differentiation strategy C) focus strategy D) functional strategy Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept 103) Apple is an example of a company that was ________.

A) pursuing a cost leadership strategy B) stuck in the middle C) distinguishing itself from its competitors D) unable to develop a successful competitive strategy Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Application 104) Which of the following strategies involves a cost advantage or a differentiation advantage in a narrow segment?

A) Retrenchment strategy B) Focus strategy C) Functional strategy D) Leadership strategy Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept

30 Copyright © 2025 Pearson Education, Inc.

105) Ferrari sells very expensive, stylish, high-quality cars to very wealthy people. Ferrari follows a ________ strategy.

A) functional B) focus C) leadership D) quality Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Application 106) A firm that is '"stuck in the middle'" cannot develop ________.

A) a cost or differentiation advantage B) a functional strategy C) a leadership strategy D) a competitive advantage Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept 107) Functional-level strategy directly supports the ________.

A) corporate strategy B) competitive strategy C) operating strategy D) concentration strategy Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept

31 Copyright © 2025 Pearson Education, Inc.

108) How can a cost leader use e-business to reduce costs?

A) It could automate purchasing and payment systems so that customers have detailed status reports.

B) It could provide rapid online responses to service requests.

C) It could use Internet-based knowledge systems to shorten customer response times.

D) It could use Web-based inventory control systems that reduce storage costs.

Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept 109) An Internet-based knowledge management system that shortens customer response times would be an e-business technique that contributes to the competitive advantage of a ________.

A) cost leader B) differentiator C) focuser D) brick Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept 110) An important customer focus strategy is ________.

A) maintaining a friendly attitude B) giving customers what they want C) offering a toll-free number with representatives available 24/7 D) keeping costs low by offshoring the customer service call center Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept

32 Copyright © 2025 Pearson Education, Inc.

111) An organization that initially brings a product innovation to the market is known as the ________.

A) first mover B) free rider C) cash cow D) question mark Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept 112) Which one of the following is an advantage of being a first mover?

A) Certainty over the direction of technology and market B) Low development costs C) No financial or strategic risks D) Opportunity to begin building customer relationships Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept 113) What is a strategic disadvantage of being a first mover?

A) Least opportunity to build customer loyalty B) Risk of competitors imitating innovations C) No cost and learning benefit D) No control over resources Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept 114) Within an organization, the single independent businesses that formulate their own competitive strategies are known as strategic business units.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept

33 Copyright © 2025 Pearson Education, Inc.

115) Establishing a competitive advantage is important but insufficient. To be successful in the long term, firms must maintain that advantage.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept 116) A company that competes by offering unique products that are widely valued by customers is following a differentiation strategy.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept 117) Although it is difficult to do, a "stuck in the middle" company can keep costs low and distinguish itself from its competitors.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept 118) Managers using the strategic management process always achieve positive outcomes.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept 119) Basic scientific research requires the least resource commitment because there are no production costs involved.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept

34 Copyright © 2025 Pearson Education, Inc.

120) Innovation can help firms achieve a differentiation competitive strategy.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept 121) Focusing on process development can lead to a successful cost leadership competitive strategy.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept 122) Discuss the concept of competitive advantage and explain how quality is a competitive advantage.

Answer: In order to develop an effective competitive strategy, managers should understand their competitive advantage, which is what sets their organization apart-that is, the organization's distinctive edge. The distinctive edge can come from the organization's core competencies by doing something that others cannot do or by doing it better than others. For example, Southwest Airlines has a competitive advantage because of its skills at giving passengers what they wantconvenient and inexpensive air passenger service. Competitive advantage can also come from the company's resources because the organization has something that its competitors do not have.

For instance, Walmart's state-of-the-art information system allows it to monitor and control inventories and supplier relations more efficiently than its competitors, which Walmart has turned into a cost advantage.

Quality as a competitive advantage: If implemented properly, quality can be a way for an organization to create a sustainable competitive advantage. That is why many organizations apply quality management concepts in an attempt to set themselves apart from competitors. If a business is able to continuously improve the quality and reliability of its products, it may have a competitive advantage that cannot be taken away.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept

35 Copyright © 2025 Pearson Education, Inc.

123) Discuss the five forces model and the various competitive strategies that an organization may use.

Answer: In any industry, five competitive forces dictate the rules of competition. Together, these five forces determine industry attractiveness and profitability, which managers assess using these five factors: 1. Threat of new entrants. How likely is it that new competitors will come into the industry?

2. Threat of substitutes. How likely is it that other industries' products can be substituted for our industry's products?

3. Bargaining power of buyers. How much bargaining power do buyers (customers) have?

4. Bargaining power of suppliers. How much bargaining power do suppliers have?

5. Current rivalry. How intense is the rivalry among current industry competitors?

Once managers have assessed the five forces and done a SWOT analysis, they are ready to select an appropriate competitive strategy-that is, one that fits the competitive strengths (resources and capabilities) of the organization and the industry it's in. According to Porter, no firm can be successful by trying to be all things to all people. He proposed that managers select a strategy that will give the organization a competitive advantage, either from having lower costs than all other industry competitors or by being significantly different from competitors. a. Cost Leadership Strategy - When an organization competes on the basis of having the lowest costs (costs or expenses, not prices) in its industry, it's following a cost leadership strategy. A low-cost leader is highly efficient. Overhead is kept to a minimum, and the firm does everything it can to cut costs. b. Differentiation Strategy - A company that competes by offering unique products that are widely valued by customers is following a differentiation strategy. Product differences might come from exceptionally high quality, extraordinary service, innovative design, technological capability, or an unusually positive brand image. c. Focus Strategy - This involves a cost advantage (cost focus) or a differentiation advantage (differentiation focus) in a narrow segment or niche. Segments can be based on product variety, customer type, distribution channel, or geographical location.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept 124) Discuss how social media can create a competitive advantage.

Answer: Successful social media strategies should help people inside and outside the organization connect and reduce costs or increase revenue possibilities, or both. Firms can gather information from and about their customers. Employees can monitor trends to anticipate changes in customer preferences. Social media tools can be used to boost productivity through the sharing of data and ideas.

Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept

36 Copyright © 2025 Pearson Education, Inc.

125) Explain the term "first mover" and then list the advantages and disadvantages of being a first mover in the market.

Answer: An organization that is first to bring a product innovation to the market or to use a new process innovation is called a first mover.

The advantages of being a first mover are: a. Reputation for being innovative and industry leader b. Cost and learning benefits c. Control over scarce resources and keeping competitors from having access to them d. Opportunity to begin building customer relationships and customer loyalty The disadvantages of being a first mover are: a. Uncertainty over exact direction technology and market will go b. Risk of competitors imitating innovations c. Financial and strategic risks d. High development costs Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 9.4: Describe competitive advantage and the competitive strategies organizations use to get it.

Classification: Concept

37 Copyright © 2025 Pearson Education, Inc.

Management, 16e (Robbins) Chapter 10 Designing Organizational Structure 1) ________ is the formal arrangement of jobs within an organization.

A) Departmentalization B) Organizational design C) Organizational structure D) Work specialization Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 2) Organizational design is a process that involves decisions about ________.

A) work specialization and cost-leadership B) chain of command and span of control C) centralization and differentiation D) departmentalization and diversification Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 3) Michelle is very concerned about the formal framework by which job tasks are divided, grouped, and coordinated within her unit. This implies that she is concerned about ________.

A) the chain of command B) the organizational structure C) the organizational design D) decentralization Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Application 4) The process of dividing work activities into separate job tasks is known as ________.

A) work specialization B) organizational design C) differentiation D) span of control Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 1 Copyright © 2025 Pearson Education, Inc.

5) Which of the following statements accurately defines work specialization?

A) It is the basis of grouping jobs together.

B) Individual employees specialize in doing part of an activity rather than the entire activity.

C) It is the line of authority extending from upper organizational levels to the lower levels.

D) It clarifies who reports to whom.

Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 6) In the early 20th century, automobiles were made one at a time by craftsmen who could perform every operation necessary to build the car. Henry Ford decided to limit the number of tasks each worker performed so each person could become expert in his position. With this practice, Ford introduced ________.

A) departmentalization B) work specialization C) centralization D) formalization Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Application 7) The process of grouping jobs together is known as ________.

A) departmentalization B) centralization C) formalization D) organizational design Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 8) Which of these reasons is NOT a purpose for organizing?

A) Organizing divides the work to be done into specific jobs and departments.

B) Organizing helps establish pay scales.

C) Organizing helps coordinate diverse organizational tasks.

D) Organizing establishes formal lines of authority.

Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Application 2 Copyright © 2025 Pearson Education, Inc.

9) At Chemetron, all the accounting employees share one large work area; all the quality control employees are housed in a large office next to the production floor; and maintenance has its own space at the back of the building. Chemetron is using ________.

A) departmental specialization B) functional departmentalization C) process departmentalization D) product specialization Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Application 10) In the case of functional departmentalization, jobs are grouped according to ________.

A) tasks B) territories C) product lines D) customer flow Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 11) Departmentalization based on ________ groups jobs on the basis of territory or physical location.

A) customer B) product C) geography D) process Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 12) ________ departmentalization is based on the product or customer flow through the organization.

A) Product B) Functional C) Process D) Customer Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 3 Copyright © 2025 Pearson Education, Inc.

13) What kind of departmentalization would be in place in a government organization where different public service responsibilities are divided into activities for employees, children, and the disabled?

A) Product departmentalization B) Geographic departmentalization C) Process departmentalization D) Customer departmentalization Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Application 14) A disadvantage of ________ departmentalization is poor communication across the different groups.

A) geographic B) functional C) process D) customer Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 15) Melanie has noticed that everyone is very concerned about the line of authority within the hospital. This implies that the employees at the hospital are worried about the ________.

A) unity of command B) chain of command C) span of control D) departmentalization Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Application

4 Copyright © 2025 Pearson Education, Inc.

16) The line of authority that extends from upper organizational levels to lower levels, clarifying who reports to whom, is known as the ________.

A) employee power distance B) unity of command C) span of control D) chain of command Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 17) Bill manages the quality department. His employees check parts made by the production departments to assure all specifications are met. What type of authority does Bill possess?

A) Unity of command authority B) Chain of command authority C) Line authority D) Staff authority Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Application 18) ________ refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it.

A) Responsibility B) Liability C) Bureaucracy D) Authority Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 19) Wilson is offered a chance to help direct the efforts of some employees assigned to his work group. This is a chance for Wilson to experience ________.

A) responsibility B) leadership C) command D) authority Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Application 5 Copyright © 2025 Pearson Education, Inc.

20) ________ is the obligation or expectation to perform a duty.

A) Responsibility B) Authority C) Commitment D) Duty Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 21) When Bryan is offered a chance to help direct the efforts of some employees assigned to his work group, he sees this new assignment as a(n) ________.

A) decrease in authority B) increase in departmentalization C) increase in his responsibility D) decrease in work specialization Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Application 22) Which one of Fayol's 14 principles of management states that a person should report to only one manager?

A) Unity of direction B) Unity of command C) Division of work D) Division of authority Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 23) Paul, the HR manager, works in the Townsville plant and reports to the plant manager there, but he also reports to the corporate HR director in Cityburg. This reporting structure violates the principle of ________.

A) division of authority B) unity of purpose C) chain of command D) unity of command Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Application 6 Copyright © 2025 Pearson Education, Inc.

24) Willard has been assigned to a project development team in addition to his regular duties as a quality engineer. During this assignment he will report to both the project manager and his quality department manager. This situation ________.

A) violates span of control B) violates unity of command C) violates chain of command D) violates the acceptance theory of authority Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Application 25) According to the traditional view, managers could not-and should not-directly supervise more than ________ subordinates.

A) four or five B) five or six C) ten or eleven D) fifteen or sixteen Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 26) The ________ determines the number of levels and managers in an organization.

A) delegation of authority B) unity of command C) chain of command D) span of control Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 27) All other things being equal, the wider or larger the span of control, the more ________ an organization is.

A) ambitious B) rigid C) mechanistic D) efficient Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 7 Copyright © 2025 Pearson Education, Inc.

28) ________ is the degree to which decision making takes place at upper levels of the organization.

A) Centralization B) Decentralization C) Formalization D) Departmentalization Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 29) If top managers make key decisions with little input from below, then the organization is ________.

A) less mechanistic B) more decentralized C) less formalized D) more centralized Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 30) The fact that Monica's signature is required on all documents and her word is the last word on all decisions relating to her department suggests that her employer has a(n) ________.

A) centralized structure B) decentralized structure C) simple structure D) organic structure Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Application 31) Which of the following factors calls for a more centralized organizational structure?

A) When the decisions to be taken are significant B) When the company is geographically dispersed C) When the organization is facing a crisis D) When the environment is complex Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 8 Copyright © 2025 Pearson Education, Inc.

32) After extensive job cuts to reduce costs, upper level managers are spending significant amounts of time solving problems in the production units. Lower level managers are resentful that they cannot make decisions for their own units. What recommendation would you make for this firm?

A) Reorganize; departmentalize around customers instead of products.

B) Formalize; write explicit job descriptions, rules, and procedures so the upper managers won't have to decide each case individually.

C) Centralize; create a department that does nothing but make decisions.

D) Decentralize; give authority to the lower level managers regarding events in their own units.

Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Application 33) Bob works in a mid-sized organization with other skilled workers who all pitch in to do what needs to be done to satisfy the customer. It is likely Bob works in a ________ organization.

A) formalized B) decentralized C) departmentalized D) cross-functional Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Application 34) Which of the following factors would require a more decentralized organizational structure?

A) When the lower-level managers want a voice in decisions B) When the lower-level managers are not capable of making decisions C) When the decisions to be made are not significant D) When the company is large Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept

9 Copyright © 2025 Pearson Education, Inc.

35) As organizations become more flexible and responsive to environmental trends, there is a distinct shift toward ________ decision making.

A) centralized B) decentralized C) concentrated D) departmentalized Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 36) ________ refers to how standardized an organization's jobs are and the extent to which employee behavior is guided by rules and procedures.

A) Specialization B) Centralization C) Decentralization D) Formalization Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 37) In highly ________ organizations, there are explicit job descriptions, numerous organizational rules, and clearly defined procedures covering work processes.

A) formalized B) decentralized C) departmentalized D) specialized Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 38) Work specialization is also known as division of labor.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept

10 Copyright © 2025 Pearson Education, Inc.

39) Organizational structure is the formal chain of command of jobs within an organization.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 40) Organizational design is the degree to which standardized procedures are in place in an organization.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 41) Division of labor refers to the practice of identifying some workers as potential members of a bargaining unit and other workers as members of management.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 42) Managers today continue to see work specialization as important because it helps employees be more efficient.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 43) To counteract the diseconomies of division of labor, a company can increase the range of tasks the employee performs.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 44) Customer departmentalization works well because it emphasizes interdepartmental communication regarding customer's needs.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 11 Copyright © 2025 Pearson Education, Inc.

45) The chain of command is a principle that states that a person should report to only one boss.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 46) All other things unchanged, the narrower the span of control, the more efficient the organization is.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 47) Given other things unchanged, managers with well-trained and experienced employees can function well with a wider span of control than those with a less talented workforce.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 48) Employees in lower-level positions who have decision-making power likely work for a decentralized organization.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 49) At one end of the spectrum, organizations can be absolutely centralized, while at the other end, they can be completely decentralized.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 50) Employee empowerment gives employees more authority to make decisions.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept

12 Copyright © 2025 Pearson Education, Inc.

51) In highly formalized organizations, employees have more discretion in how they do their work.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 52) Today's organizations mostly rely on strict rules and standardization to guide and regulate employee behavior.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 53) Define the process of organizing and explain how it helps an organization.

Answer: Organizing is defined as arranging and structuring work to accomplish organizational goals. It is an important process during which managers design an organization's structure. Some of the purposes of organizing are the following. a. It helps in dividing the work to be done into specific jobs and departments. b. It helps in assigning tasks and responsibilities associated with individual jobs. c. It helps in coordinating diverse organizational tasks. d. It helps in clustering jobs into units. e. It helps in establishing relationships among individuals, groups, and departments. f. It helps in establishing formal lines of authority. g. It helps in allocating and deploying organizational resources.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept

13 Copyright © 2025 Pearson Education, Inc.

54) Write a short essay on work specialization. How does specialization affect productivity?

How does it affect a firm's cost structure?

Answer: Work specialization, also known as division of labor, is the process of dividing work activities into separate job tasks. Individual employees "specialize" in doing part of an activity rather than the entire activity in order to increase work output. It makes efficient use of the diverse skills that workers have.

In most organizations, some tasks require highly developed skills; others can be performed by employees with lower skill levels. If all workers were engaged in all the tasks, all would need the skills necessary to perform both the most and the least demanding jobs. Thus, except when performing the most highly skilled or highly sophisticated tasks, employees would be working below their skill levels. In addition, skilled workers are paid more than unskilled workers, and, because wages tend to reflect the highest level of skill, all workers would be paid at highly skilled rates to do easy tasks-an inefficient use of resources.

Early proponents of work specialization believed that it could lead to great increases in productivity. At the beginning of the twentieth century, that generalization was reasonable.

Because specialization was not widely practiced, its introduction almost always generated higher productivity. But, at some point, the human diseconomies from division of labor-boredom, fatigue, stress, low productivity, poor quality, increased absenteeism, and high turnover-exceed the economic advantages.

Today, most managers continue to see work specialization as important because it helps employees be more efficient. However, managers should remember that, at some point, work specialization no longer leads to productivity. Thus, they should plan and organize accordingly.

Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept

14 Copyright © 2025 Pearson Education, Inc.

55) What is meant by departmentalization? In a short essay, list and discuss the five common forms of departmentalization, their advantages and disadvantages.

Answer: Departmentalization is the basis by which jobs are grouped together. There are five common forms: a. Functional - Jobs are grouped by the functions (i.e., marketing, finance, human resources) performed, leading to increased efficiency because people with similar specialties, common skills, knowledge, and orientations are put together. It also leads to an increased coordination within functional areas. On the flip side, it gives a limited view of the organizational goals. b. Product - Jobs are grouped by product line. This allows the managers to specialize in particular products and services and helps managers to become experts in their industry. On the other hand, it leads to duplication of functions and gives a limited view of organizational goals. c. Geographical - Jobs are grouped on the basis of a geographic region. This helps in more effective and efficient handling of specific regional issues that arise and in serving the needs of unique geographic markets. On the flip side, it leads to duplication of functions. d. Process - Jobs are grouped on the basis of product or customer flow. This approach efficiently manages the flow of work activities. Unfortunately, it can only be used with certain types of products. e. Customer - Jobs are grouped on the basis of specific and unique customers who have common needs, allowing specialists to handle customers' needs and problems. But this also leads to duplication of functions and causes departments to have a limited view of organizational goals.

Most large organizations continue to use combinations of most or all of these types of departmentalization.

Currently, a popular departmentalization trend is the increasing use of customer departmentalization. Because getting and keeping customers is essential for success, this approach works well because it emphasizes monitoring and responding to changes in customers' needs.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept

15 Copyright © 2025 Pearson Education, Inc.

56) In a short essay, explain authority and responsibility.

Answer: Authority was a major concept discussed by the early management writers; they viewed it as the glue that held an organization together. Authority refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it. Managers in the chain of command had authority to do their job of coordinating and overseeing the work of others.

Authority could be delegated downward to lower-level managers, giving them certain rights while also prescribing certain limits within which to operate. These writers emphasized that authority was related to one's position within an organization and had nothing to do with the personal characteristics of an individual manager.

As organizations get larger and more complex, line managers find that they do not have the time, expertise, or resources to get their jobs done effectively. In response, they create staff authority functions to support, assist, advise, and generally reduce some of their informational burdens.

Responsibility - When managers use their authority to assign work to employees, those employees take on an obligation to perform those assigned duties. This obligation or expectation to perform is known as responsibility. Assigning work authority without responsibility and accountability can create opportunities for abuse. Likewise, no one should be held responsible or accountable for work tasks over which (s)he has no authority to complete those tasks.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 57) Discuss the differences between line and staff authority.

Answer: The early management writers also distinguished between two forms of authority: line authority and staff authority. Line authority entitles a manager to direct the work of employees. It is the employer-employee authority relationship that extends from the top of the organization to the lowest echelon, according to the chain of command. As a link in the chain of command, a manager with line authority has the right to direct the work of employees and to make certain decisions without consulting anyone. In the chain of command, every manager is also subject to the authority or direction of his or her superior.

As organizations become larger and more complex, they create staff authority functions to support, assist, advise, and generally reduce some of the burden of line managers.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept

16 Copyright © 2025 Pearson Education, Inc.

58) Explain why unity of command is less important today than during the time when the principle was developed.

Answer: Information technology has made the concept of unity of command less relevant because employees can access in a few seconds information that used to be available only to managers. Employees can communicate with anyone else in the organization without going through the chain of command. Many employees, especially in organizations where work revolves around projects, find themselves reporting to more than one boss.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 59) Explain the traditional view of span of control.

Answer: How many employees can a manager efficiently and effectively manage? That is what span of control is all about.

The traditional view was that managers could not-and should not-directly supervise more than five or six subordinates. Determining the span of control is important because to a large degree, it determines the number of levels and managers in an organization-an important consideration in how efficient an organization will be. All other things being equal, the wider or larger the span, the more efficient an organization is.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 60) Explain the contemporary view of span of control.

Answer: The contemporary view of span of control recognizes that there is no magic number of people for a manager to supervise. Many factors influence the number of employees that a manager can efficiently and effectively manage. These factors include the skills and abilities of the manager and the employees and the characteristics of the work being done. For instance, managers with well-trained and experienced employees can function well with a wider span.

Other contingency variables that determine the appropriate span include similarity and complexity of employee tasks, the physical proximity of subordinates, the degree to which standardized procedures are in place, the sophistication of the organization's information system, the strength of the organization's culture, and the preferred style of the manager. The trend in recent years has been toward wider spans of control, which is consistent with managers' efforts to speed up decision making, increase flexibility, get closer to customers, empower employees, and reduce costs. Managers are beginning to recognize that they can handle a wider span when employees know their jobs well and when those employees understand organizational processes.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept

17 Copyright © 2025 Pearson Education, Inc.

61) List a few factors that influence the amount of centralization or decentralization in an organization.

Answer: An organization requires more centralization if the: a. Environment is stable. b. Lower-level managers are not as capable or experienced at making decisions as upper-level managers. c. Lower-level managers do not want to have a say in decisions. d. Decisions to be taken are relatively minor. e. Organization is facing a crisis or the risk of company failure. f. Company is large. g. Effective implementation of company strategies depends on managers' retaining a say over what happens.

An organization requires more decentralization if the: a. Environment is complex and uncertain. b. Lower-level managers are capable and experienced at making decisions. c. Lower-level managers want a voice in decisions. d. Decisions to be made are relatively significant. e. Corporate culture is open to allowing managers to have a say in what happens. f. Company is geographically dispersed. g. Effective implementation of company strategies depends on managers being involved and having the flexibility to make decisions.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept 62) Explain centralization and decentralization. How do these relate to employee empowerment?

Answer: Centralization is the degree to which decision making takes place at upper levels of the organization. If top managers make key decisions with little input from below, then the organization is more centralized. On the other hand, the more that lower-level employees provide input or actually make decisions, the more decentralization there is. Centralizationdecentralization is not an either-or concept. The decision is relative, not absolute-that is, an organization is never completely centralized or decentralized. The goal is the optimum and efficient use of employees. Traditional organizations were structured in a pyramid, with power and authority concentrated near the top of the organization. But organizations today have become more complex and responsive to dynamic changes in their environments. As such, many managers believe that decisions need to be made by those individuals closest to the problems, regardless of their organizational level. In fact, the trend over the past several decades-at least in U.S. and Canadian organizations-has been a movement toward more decentralization in organizations.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 10.1: Describe six key elements in organizational design.

Classification: Concept

18 Copyright © 2025 Pearson Education, Inc.

63) A(n) ________ organization is highly specialized and rigidly departmentalized.

A) organic B) complex C) learning D) mechanistic Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.2: Contrast mechanistic and organic structures.

Classification: Concept 64) A(n) ________ organization is highly formalized and centralized.

A) organic B) mechanistic C) complex D) learning Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.2: Contrast mechanistic and organic structures.

Classification: Concept 65) Which of the following is a characteristic of a mechanistic organization?

A) Cross-functional teams.

B) Free flow of information.

C) Wide spans of control.

D) Clear chain of command.

Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.2: Contrast mechanistic and organic structures.

Classification: Concept 66) A(n) ________ organization is highly adaptive, loose, and flexible.

A) organic B) centralized C) customer-oriented D) mechanistic Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.2: Contrast mechanistic and organic structures.

Classification: Concept

19 Copyright © 2025 Pearson Education, Inc.

67) GlaxoSmithKline would become more ________ if it starts allowing its lab scientists to set the priorities and allocate the resources.

A) profitable B) mechanistic C) diversified D) organic Answer: D Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 10.2: Contrast mechanistic and organic structures.

Classification: Application 68) Which of the following is a characteristic of an organic organization?

A) High specialization.

B) Cross-functional teams.

C) Rigid departmentalization.

D) Narrow span of controls Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.2: Contrast mechanistic and organic structures.

Classification: Concept 69) Paul Abdul Oil Corporation (PAOC) began as a relatively small oil company. As PAOC has grown, the company has gained a highly trained group of managers and analysts at the corporate headquarters. This group is highly adaptive in its structure. Members of this group do not have standardized jobs, but are empowered to handle diverse job activities and problems. PAOC appears to have a(n) ________ structure.

A) mechanistic B) divisional C) functional D) organic Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.2: Contrast mechanistic and organic structures.

Classification: Application

20 Copyright © 2025 Pearson Education, Inc.

70) If a firm wants to become more adaptive and flexible, which of the following organizational structures is it likely to prefer?

A) Formalized B) Mechanistic C) Organic D) Centralized Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.2: Contrast mechanistic and organic structures.

Classification: Concept 71) Many of Custom Leather's employees are experienced artisans. The jobs most of them perform are not highly standardized. They take great pride in their craft and require few formal rules and little direct supervision. These traits are most typical of a(n) ________ organization.

A) departmentalized B) mechanistic C) organic D) formalized Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 10.2: Contrast mechanistic and organic structures.

Classification: Application 72) An organic organization strictly adheres to the chain-of-command principle and has a wide span of control.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.2: Contrast mechanistic and organic structures.

Classification: Concept 73) An organic organization is low in centralization.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.2: Contrast mechanistic and organic structures.

Classification: Concept

21 Copyright © 2025 Pearson Education, Inc.

74) Explain the concepts of mechanistic and organic structures.

Answer: The mechanistic organization (or bureaucracy) was the natural result of combining work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization. Adhering to the chain-of-command principle ensured the existence of a formal hierarchy of authority, with each person controlled and supervised by one superior. Keeping the span of control small at increasingly higher levels in the organization created tall, impersonal structures.

The organic organization is a highly adaptive form that is as loose and flexible as the mechanistic organization is rigid and stable. The organic organization's loose structure allows it to change rapidly as required. It has division of labor, but the jobs people do are not standardized.

Employees tend to be professionals who are technically proficient and trained to handle diverse problems. They need few formal rules and little direct supervision because their training has instilled in them standards of professional conduct. Thus, an organic organization has crossfunctional teams, cross-hierarchical teams, free flow of information, wide spans of control, decentralization, and low formalization.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 10.2: Contrast mechanistic and organic structures.

Classification: Concept 75) Which of the following production technologies is characterized by high horizontal differentiation?

A) Process production B) Cross production C) Unit production D) Mass production Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Concept 76) Which of the following production technologies is characterized by low vertical differentiation?

A) Process production B) Cross production C) Unit production D) Mass production Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Application

22 Copyright © 2025 Pearson Education, Inc.

77) Which of the following production technologies is characterized by high vertical differentiation?

A) Process production B) Cross production C) Unit production D) Mass production Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Application 78) What are the four contingency variables that an organization's structure depends on?

A) Strategy, size, technology, and equity B) Management, technology, equity, and degree of environmental uncertainty C) Management, funding, technology, and degree of environmental uncertainty D) Strategy, size, technology, and environmental uncertainty Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Concept 79) Large organizations tend to have more ________ than smaller organizations.

A) specialization B) span of control C) decentralization D) autonomy Answer: A Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Concept

23 Copyright © 2025 Pearson Education, Inc.

80) Large organizations are typically more ________.

A) mechanistic B) organic C) disorganized D) decentralized Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Concept 81) Joan Woodward divided firms into three distinct technologies that had increasing levels of complexity and sophistication: unit production, mass production, and ________ production.

A) continuous B) repetitive flow C) product D) process Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Concept 82) ________ is a type of technology that centers on small-batch production.

A) Unit production B) Mass production C) Process production D) Flow production Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Concept

24 Copyright © 2025 Pearson Education, Inc.

83) The building of a bridge would be a type of ________.

A) unit production B) mass production C) process production D) flow production Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Application 84) ________ is a type of technology that centers on large-batch production and requires moderate levels of complexity and sophistication.

A) Unit production B) Mass production C) Process production D) Service production Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Concept 85) The type of assembly line typically found in automobile manufacturing is an example of ________.

A) unit production B) mass production C) process production D) continuous production Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Application

25 Copyright © 2025 Pearson Education, Inc.

86) In Joan Woodward's study of the relationship between technology and structure, the structure that was the most technically complex was ________.

A) unit production B) mass production C) process production D) continuous production Answer: C Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Concept 87) Lacey believes that Joan Woodward's work will be particularly pertinent in considering Custom Leather's organizational structure, since Woodward believed that the effectiveness of the organization was related to the fit between the firm's structure and ________.

A) culture B) technology C) accounting D) operations Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Application 88) A refinery that transforms crude oil into gasoline, kerosene, and diesel fuel would be an example of ________.

A) mass production B) segment production C) process production D) unit production Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Application

26 Copyright © 2025 Pearson Education, Inc.

89) According to Woodward's studies, what type of production technology is best suited for a mechanistic structure?

A) Unit B) Process C) Product D) Mass Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Concept 90) In stable and simple environments, ________.

A) organic designs are most effective B) mechanistic designs are most effective C) low formalization is necessary D) decentralization is necessary Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Concept 91) Ben operates a farmer's market. Every year he offers the same vegetables to the same customers and faces the same rivalry from other truck farmers. A(n) ________ would best fit Ben's situation.

A) formalized design B) mechanistic design C) centralized design D) organic design Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Application

27 Copyright © 2025 Pearson Education, Inc.

92) Custom Leather CEO Standish is considering doubling the size of his workforce in conjunction with expanding the number of retail outlets that carry Custom Leather products. He should expect the organization to become ________ as a result of this change.

A) more mechanistic B) more decentralized C) more organic D) less formalized Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Application 93) The greater the environmental uncertainty, the more an organization needs to become ________.

A) organic B) mechanistic C) specialized D) departmentalized Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Concept 94) Worldwide economic downturn, global competition, accelerated product innovation by competitors, and increased demands from customers for high quality and faster deliveries encourage organizations to become more ________.

A) organic B) mechanistic C) centralized D) formalized Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Concept

28 Copyright © 2025 Pearson Education, Inc.

95) Innovators need the efficiency, stability, and tight controls of the mechanistic structure.

Answer: FALSE Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Concept 96) Once an organization grows past a certain size, the impact of size on organization structure strengthens.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Concept

29 Copyright © 2025 Pearson Education, Inc.

97) List and discuss the four contingency variables that should be considered while designing an appropriate organizational structure.

Answer: a. Strategy and structure - An organization's structure should facilitate the achievement of goals.

Since goals are influenced by the organization's strategies, it is logical that strategy and structure should be closely linked. The flexibility and free-flowing information of the organic structure works well when an organization is pursuing meaningful and unique innovations. The mechanistic organization with its efficiency, stability, and tight controls works best for companies wanting to tightly control costs. b. Size and structure - There is considerable evidence that an organization's size significantly affects its structure. Large organizations-typically considered to be those with 2,000 employeestend to have more specialization, departmentalization, centralization, and rules and regulations than do small organizations. However, once an organization grows past a certain size, size has less influence on structure. c. Technology and structure - Every organization uses some form of technology to convert its inputs into outputs. The processes or methods that transform an organization's inputs into outputs differ by their degree of routineness. In general, organizations adapt their structures to their technology depending on how routine their technology is for transforming inputs into outputs. In general, the more routine the technology, the more mechanistic the structure can be, and organizations with more non-routine technology are more likely to have organic structures. d. Environmental uncertainty and structure - Some organizations face stable and simple environments with little uncertainty; others face dynamic and complex environments with a lot of uncertainty. Managers try to minimize environmental uncertainty by adjusting the organization's structure. In stable and simple environments, mechanistic designs can be more effective. On the other hand, the greater the uncertainty, the more an organization needs the flexibility of an organic design.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 10.3: Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.

Classification: Concept 98) What are the different structures that traditional organizations can have?

A) Simple, functional, and corporate structures B) Simple, functional, and business unit structures C) Functional, strategic, and business unit structures D) Simple, functional, and divisional structures Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.4: Describe traditional organizational design options.

Classification: Concept

30 Copyright © 2025 Pearson Education, Inc.

99) A company with low departmentalization, wide spans of control, centralized authority, and little formalization possesses a ________ structure.

A) simple B) functional C) divisional D) matrix Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.4: Describe traditional organizational design options.

Classification: Concept 100) In the beginning, all employees at Tom's Welding performed whatever task was needed.

Now the employees have gravitated to specific sets of tasks. Some use only stick welders; some weld only on aluminum. We can infer that as his business has grown, it has become more ________.

A) specialized B) formal C) centralized D) organic Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 10.4: Describe traditional organizational design options.

Classification: Application 101) Tom's Welding is in its third year of operation. Tom now has a salesperson and several production employees. It is most likely Tom has a ________ structure.

A) simple B) functional C) divisional D) matrix Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 10.4: Describe traditional organizational design options.

Classification: Application

31 Copyright © 2025 Pearson Education, Inc.

102) As the number of employees in an organization grows, structure tends to become more ________.

A) specialized B) informal C) centralized D) relaxed Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.4: Describe traditional organizational design options.

Classification: Concept 103) Which of the following is a strength of simple structures?

A) Employees are grouped with others who have similar tasks.

B) It focuses on results.

C) It is inexpensive to maintain.

D) It remains appropriate even as the organization changes as it grows.

Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.4: Describe traditional organizational design options.

Classification: Concept 104) Which of the following is a weakness of the simple structure?

A) Duplication of activities and resources increases costs and reduces efficiency.

B) Specialists become insulated and have little understanding of what other units are doing.

C) Pursuit of functional goals causes managers to lose sight of what is best for the overall organization.

D) It relies too much on one person, which is very risky.

Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.4: Describe traditional organizational design options.

Classification: Concept 105) A ________ is an organizational design that groups similar or related occupational specialties together.

A) matrix structure B) functional structure C) divisional structure D) simple structure Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.4: Describe traditional organizational design options.

Classification: Concept 32 Copyright © 2025 Pearson Education, Inc.

106) Which of the following traditional organizational designs focuses on results by holding division managers responsible for what happens to their products and services?

A) Simple structure B) Functional structure C) Divisional structure D) Matrix structure Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.4: Describe traditional organizational design options.

Classification: Concept 107) In which of the following traditional organizational designs does duplication of activities and resources lead to an increase in costs and reduced efficiency?

A) Divisional structure B) Team structure C) Matrix structure D) Project structure Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.4: Describe traditional organizational design options.

Classification: Concept 108) The ________ is an organizational structure made up of separate business units with each unit having limited autonomy.

A) bureaucratic structure B) simple structure C) functional structure D) divisional structure Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.4: Describe traditional organizational design options.

Classification: Concept

33 Copyright © 2025 Pearson Education, Inc.

109) In a ________ structure, the parent corporation typically acts as an external overseer to coordinate and control the various divisions and provide financial, legal, or other such support services.

A) divisional B) simple C) functional D) matrix Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.4: Describe traditional organizational design options.

Classification: Concept 110) A simple structure is characterized by narrow spans of controls and high formalization.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.4: Describe traditional organizational design options.

Classification: Concept 111) The strength of the functional structure is that it focuses on results, because managers are responsible for what happens to their products and services.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.4: Describe traditional organizational design options.

Classification: Concept 112) In divisional structures, the parent corporation typically acts as an external overseer to coordinate and control the various divisions of the organization.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 10.4: Describe traditional organizational design options.

Classification: Concept

34 Copyright © 2025 Pearson Education, Inc.

113) Discuss the three traditional organizational designs and highlight the strengths and weaknesses of each.

Answer: The three traditional organizational designs are: the simple structure, functional structure, and divisional structure. These structures tend to be more mechanistic in nature. a. Simple structure displays low departmentalization, wide spans of control, authority centralized in a single person, and little formalization. These structures are fast, flexible, and inexpensive to maintain. However, these structures are not appropriate when the organization starts growing and the reliance on one person is risky.

As employees are added, the structure tends to become more specialized and formalized. Rules and regulations are introduced, work becomes specialized, departments are created, levels of management are added, and the organization becomes increasingly bureaucratic. At this point managers might choose a functional or divisional structure. b. A functional structure groups similar or related occupational specialties together. This structure enjoys cost-saving advantages from specialization. However, the constant pursuit of functional goals can cause managers to lose sight of what is best for the overall organization.

Moreover, the functional specialists become insulated and have little understanding of what other units are doing. c. The divisional structure is made up of separate business units or divisions with limited autonomy, with a division manager who has authority over his or her unit and is responsible for performance. In divisional structures the parent corporation typically acts as an external overseer to coordinate and control the various divisions, and often provides support services such as financial and legal. The major strength of this structure is that it focuses on results by holding division managers responsible for what happens to their products and services. But the duplication of activities and resources encountered in such structures increases the cost and reduces the efficiency of the organization.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 10.4: Describe traditional organizational design options.

Classification: Concept 114) A ________ structure is one in which the entire organization is made up of work teams that do the organization's work.

A) matrix B) team C) project D) virtual Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.5: Discuss organizing for flexibility in the 21st century.

Classification: Concept

35 Copyright © 2025 Pearson Education, Inc.

115) At the Saturn plant in Smyrna, Tennessee, groups of employees used decided how their work would be done, by whom, and with what resources. These groups were given authority to decide who became members and to release any member who did not meet performance standards. Saturn had instituted a ________ structure.

A) boundaryless B) virtual C) team D) project Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.5: Discuss organizing for flexibility in the 21st century.

Classification: Application 116) One characteristic of the matrix structure is that it ________.

A) violates the principle of unity of command B) eliminates the chain of command C) does away with work specialization D) is well suited for a mechanistic structure Answer: A Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 10.5: Discuss organizing for flexibility in the 21st century.

Classification: Concept 117) In a university setting, it is common for a professor to report to an academic supervisor in his/her area of educational expertise and to a supervisor overseeing a particular degree such as baccalaureate or master's. This illustrates the ________ structure.

A) project B) matrix C) team D) boundaryless Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.5: Discuss organizing for flexibility in the 21st century.

Classification: Application

36 Copyright © 2025 Pearson Education, Inc.

118) Developing a new automobile requires the services of many types of experts such as design and electronics engineers, procurers, metallurgists–the list is extensive. Rather than employ these individuals directly, the automaker will outsource the work. The specialists then work at facilities owned by the automaker rather than at their own employers' places. This demonstrates a type of ________.

A) virtual organization B) team structure C) project structure D) boundaryless organization Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 10.5: Discuss organizing for flexibility in the 21st century.

Classification: Application 119) Robert owns a small engineering firm serving customers on three continents. He has only three employees and contracts with freelancers as needed to fulfill his customers' needs. At any given time, he could have 50 or more engineers under contract. Robert operates a ________.

A) boundaryless organization B) virtual organization C) network organization D) freelance agency Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.5: Discuss organizing for flexibility in the 21st century.

Classification: Application 120) Virtual organizations are also known as modular organizations.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.5: Discuss organizing for flexibility in the 21st century.

Classification: Concept 121) A virtual organization can exist without a physical office space.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.5: Discuss organizing for flexibility in the 21st century.

Classification: Concept

37 Copyright © 2025 Pearson Education, Inc.

122) One significant difference between matrix and project structures is that in a project structure the employees have no formal department to which they return when the project is over.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 10.5: Discuss organizing for flexibility in the 21st century.

Classification: Concept 123) Compare and contrast the team and project structures.

Answer: A team structure is one in which the entire organization is made up of work teams that do the organization's work. Employee empowerment is crucial because no line of managerial authority flows from top to bottom. Employee teams design and do work in the way they think best, but teams are held responsible for all work performance results in their respective areas. In large organizations, the team structure complements what is typically a functional or divisional structure and allows the organization to have the efficiency of a bureaucracy and the flexibility that teams provide. The type of work performed by teams remains fairly constant for the life of the team, as in a mass production setting.

In a project structure, employees continually work on projects. When the current project is finished, project members move on to other teams and other projects because there are no formal departments for them to return to. Employees join project teams because they bring needed skills and abilities to that project. Project structures tend to be more flexible organizational designs, without departmentalization or rigid organizational hierarchy that can slow down making decisions or taking action. In this structure, managers serve as facilitators, mentors, and coaches.

They eliminate or minimize organizational obstacles and ensure that teams have the resources they need to complete their work effectively and efficiently.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 10.5: Discuss organizing for flexibility in the 21st century.

Classification: Concept 124) ________ is a work arrangement where employees work from home and are linked to work through a computer.

A) A compressed workweek B) Telecommuting C) Internet linking D) Computer sharing Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.6: Explain flexible work approaches for workers.

Classification: Application

38 Copyright © 2025 Pearson Education, Inc.

125) ________ occurs when two or more people split the responsibilities and duties of one position or job.

A) Position splitting B) Job sharing C) Fractional jobbing D) Job lotting Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.6: Explain flexible work approaches for workers.

Classification: Application 126) A good example of ________ is Uber's reliance on freelance drivers.

A) contingent workers B) hybrid workers C) job sharing D) flextime workers Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.6: Explain flexible work approaches for workers.

Classification: Application 127) Jill works 40 hours a week but gets to vary her work hours based on other commitments.

Jill's job is an example of ________.

A) contingent workforce B) job sharing C) flextime scheduling D) part-time work Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.6: Explain flexible work approaches for workers.

Classification: Application 128) DeMarcus surveyed his employees and discovered about 80% of them would prefer to have a longer weekend. Which of these work options might be the most appealing to DeMarcus and his employees?

A) Contingent workforce B) Compressed workweek C) Flextime D) Job sharing Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.6: Explain flexible work approaches for workers.

Classification: Application 39 Copyright © 2025 Pearson Education, Inc.

129) Which of the following reasons makes employers like remote work?

A) Health insurance costs are lower for remote workers.

B) Employers can save almost $10,000 per employee on office related expenses C) Remote workers cost much less since employers don't have to provide benefits.

D) Technology costs are much lower for remote workers.

Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 10.6: Explain flexible work approaches for workers.

Classification: Application 130) In 2023 about ________ of workers reported working entirely from home.

A) 7% B) 22% C) 35% D) 45% Answer: C Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 10.6: Explain flexible work approaches for workers.

Classification: Application 131) About ________ of workers who can work remotely report they are working in a hybrid arrangement.

A) 11% B) 22% C) 35% D) 41% Answer: D Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 10.6: Explain flexible work approaches for workers.

Classification: Application 132) ________ workers work part of their workweek from home and report to the office part of the time.

A) Hybrid B) Remote C) Telecommuting D) Traditional Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 10.6: Explain flexible work approaches for workers.

Classification: Application

40 Copyright © 2025 Pearson Education, Inc.

133) Baronica works four ten-hour days every week. What type of work arrangement does she have?

A) Remote work B) Hybrid schedule C) Compressed workweek D) Job sharing Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.6: Explain flexible work approaches for workers.

Classification: Application 134) Ramad splits his position with a colleague. He works on Monday, Tuesday, and Wednesday and his colleague Shamira works on Thursday, Friday, and Saturday. What type of work arrangement does Ramad have?

A) Remote work B) Hybrid schedule C) Compressed workweek D) Job sharing Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.6: Explain flexible work approaches for workers.

Classification: Application 135) James works 40 hours per week, but he has control over the times and days he works. What type of work arrangement does he have?

A) Remote work B) Flextime C) Compressed workweek D) Job sharing Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.6: Explain flexible work approaches for workers.

Classification: Application

41 Copyright © 2025 Pearson Education, Inc.

136) Caron works on a project-by-project basis for several different companies. What type of work arrangement does she have?

A) Remote work B) Flextime C) Contingent worker D) Job sharing Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.6: Explain flexible work approaches for workers.

Classification: Application 137) In 2020, U.S. job-sharing arrangements reached an all-time high.

Answer: TRUE Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.6: Explain flexible work approaches for workers.

Classification: Application 138) Flextime is a scheduling system where two people split one position to give them greater flexibility and a better work-life balance.

Answer: FALSE Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 10.6: Explain flexible work approaches for workers.

Classification: Application 139) Uber and Lyft drivers are contingent workers.

Answer: TRUE Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 10.6: Explain flexible work approaches for workers.

Classification: Application 140) During the COVID-19 pandemic, many companies encouraged flextime to help reduce stress levels for employees working remotely, and employees started to appreciate the option.

Answer: TRUE Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 10.6: Explain flexible work approaches for workers.

Classification: Application

42 Copyright © 2025 Pearson Education, Inc.

141) What are the implications for managers of alternate work structures, locations, and schedules?

Answer: Leaders need to identify what options are both desirable and feasible for their business and their employees. They also need to develop skills to manage in an alternate work environment. Early research on managing remote workers suggests that many managers struggle with the task; the virtual work environment in particular exposes many of managers' weaknesses in tracking and encouraging performance. Effective management for the future will require a more people-centered approach.

Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 10.6: Explain flexible work approaches for workers.

Classification: Application

43 Copyright © 2025 Pearson Education, Inc.

Management, 16e (Robbins) Chapter 11 Managing Human Resources 1) Which of the following activities is NOT one of the three activities that human resource managers engage in to ensure the employer identifies and selects competent employees?

A) Human resource planning B) Recruitment C) Selection D) Engagement Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.1: Explain the importance and process of managing human resources.

Classification: Concept 2) Good organization HRM strategies include treating employees as ________.

A) a renewable resource B) partners C) costs that should be minimized D) replaceable with automation Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.1: Explain the importance and process of managing human resources.

Classification: Concept 3) Which of the following are the two activities in the human resource management process that provide employees with up-to-date knowledge and skills?

A) Selection and training B) Orientation and training C) Performance evaluation and orientation D) Retention and performance evaluation Answer: B Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 11.1: Explain the importance and process of managing human resources.

Classification: Application

1 Copyright © 2025 Pearson Education, Inc.

4) Which of the following activities in the human resource management process ensures that the organization retains competent and high-performing employees?

A) Orientation B) Performance evaluation C) Human resource planning D) Selection Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.1: Explain the importance and process of managing human resources.

Classification: Concept 5) ________ firms have human resource departments.

A) A minority of B) Almost all C) Only small D) All Answer: A Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 11.1: Explain the importance and process of managing human resources.

Classification: Application 6) The first three activities of the human resource management process involve ________.

A) providing employees with flexible job assignments B) identifying and selecting competent employees C) providing employees with up-to-date knowledge and skills D) retaining competent and high-performing employees Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.1: Explain the importance and process of managing human resources.

Classification: Concept 7) The final three activities of the human resource management process ensure ________.

A) that the organization retains competent and high-performing employees B) that the organization selects and trains competent employees C) the best compensation packages for the new hires D) that employees are continuously provided with up-to-date knowledge and skills Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.1: Explain the importance and process of managing human resources.

Classification: Concept

2 Copyright © 2025 Pearson Education, Inc.

8) The middle two activities in the human resource management process ensure ________.

A) that the organization retains competent and high-performing employees B) that the organization selects and trains competent employees C) the best compensation packages for the new hires D) that employees are continuously provided with up-to-date knowledge and skills Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.1: Explain the importance and process of managing human resources.

Classification: Concept 9) Which of the following is NOT one of the three reasons that human resource management is important?

A) Employees can be a significant source of competitive advantage.

B) HRM is an important part of organizational strategies.

C) Competent employees cost less to retain and reduce overall labor costs.

D) The way organizations treat their employees significantly impacts organizational performance.

Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.1: Explain the importance and process of managing human resources.

Classification: Concept 10) The majority of firms do not have human resource departments.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.1: Explain the importance and process of managing human resources.

Classification: Concept 11) HRM is becoming less important as more and more jobs are automated.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.1: Explain the importance and process of managing human resources.

Classification: Concept 12) In small firms HR activities tend to be undertaken by line managers.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.1: Explain the importance and process of managing human resources.

Classification: Concept

3 Copyright © 2025 Pearson Education, Inc.

13) Discuss three reasons why managing human resources effectively is important.

Answer: a. Studies have concluded effective human resource management can be a significant source of competitive advantage. People-oriented HR gives an organization an edge in creating superior shareholder value. Human capital is the key source of sustained economic value. b. HRM is an important part of organizational strategies. The HR function is no longer considered only an administrative or support function; it enables the business strategy. c. The way the organization treats its people has been found to significantly impact organizational performance. Improving work practices could increase market share by as much as 30 percent. High-performance work practices increase an organization's ability to efficiently adapt to changing and challenging markets.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 11.1: Explain the importance and process of managing human resources.

Classification: Concept 14) List the eight activities in the human resource management (HRM) process.

Answer: The eight activities in the human resource management process are: 1) Human resource planning 2) Recruitment 3) Selection 4) Orientation 5) Training 6) Performance evaluation 7) Compensation and benefits 8) Career development Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 11.1: Explain the importance and process of managing human resources.

Classification: Concept 15) During an economic recession, ________.

A) human resources managers find it more difficult to replace employees B) more qualified candidates are available to fill fewer open positions C) candidates face less competition for open positions D) candidates expect better benefits and pensions Answer: B Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept

4 Copyright © 2025 Pearson Education, Inc.

16) Which one of the following would be considered a factor most directly influencing the human resource process?

A) Offshoring of jobs B) Changes in consumer preferences C) Changes in technology D) The economy Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept 17) Labor unions use ________ to protect the rights of their members.

A) work stoppages B) commercial arbitration C) collective bargaining D) labor disputes Answer: C Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept 18) Which one of the following Acts prohibits discrimination on the basis of physical or mental disabilities?

A) Vocational Rehabilitation Act B) Civil Rights Act, Title VII C) Equal Pay Act D) Occupational Safety and Health Act Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept

5 Copyright © 2025 Pearson Education, Inc.

19) Which one of the following Acts gives employees the legal right to examine personnel files and letters of reference?

A) Civil Rights Act, Title VII B) Worker Adjustment and Retraining Notification Act C) Privacy Act D) Consolidated Omnibus Reconciliation Act Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept 20) Which of the following Acts requires continued health coverage following termination of an employee?

A) Consolidated Omnibus Budget Reconciliation Act B) Occupational Safety and Health Act C) Health Insurance Portability and Accountability Act D) Family and Medical Leave Act Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept 21) When Fletcher lost his job as a result of a downsizing, his health coverage was discontinued even though he was willing to pay for it. Which of the following Acts can Fletcher cite in his efforts to have his health coverage benefits restored?

A) Consolidated Omnibus Budget Reconciliation Act (COBRA) B) Health Insurance Portability and Accountability Act (HIPAA) C) Occupational Safety and Health Act (OSHA) D) Patient Protection and Affordable Care Act Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Application

6 Copyright © 2025 Pearson Education, Inc.

22) In April 2020, the COVID-19 pandemic drove the unemployment rate up to ________ percent.

A) 9.8 B) 12.3 C) 14.4 D) 21.2 Answer: C Diff: 2 AACSB: Reflective thinking; Diverse and multicultural work environments Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept 23) A community fire department can legally deny employment to a job applicant who uses a wheelchair if they are applying for ________.

A) a firefighter's job B) a desk job C) a dispatcher's job D) an administrative assistant's position Answer: A Diff: 3 AACSB: Reflective thinking; Diverse and multicultural work environments Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept 24) Union participation rates in the United States peaked in the mid-1950s, when approximately ________ of all wage and salary workers belonged to a union.

A) 11% B) 24% C) 35% D) 56% Answer: C Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept

7 Copyright © 2025 Pearson Education, Inc.

25) Which of the following is a demographic issue that U.S. employers in 2040 will face with regard to staffing?

A) Jobs will become so complex that most applicants will not have the necessary skill sets.

B) Immigration will make it necessary for employees to speak multiple languages.

C) An aging U.S. workforce means more employees will be lost to retirement.

D) Men will outnumber women in the workforce and demand higher pay.

Answer: C Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept 26) Which of the following is NOT one of the seven things an organization can do to protect itself against sexual harassment claims?

A) Establish a clear antiharassment policy.

B) Create a legal defense fund to challenge sexual harassment allegations.

C) Develop an explicit statement listing prohibited behaviors.

D) Conduct ongoing management training and employee awareness training.

Answer: B Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept 27) The prevalence of unreported sexual harassment was brought to the public's attention with the ________.

A) #MeToo movement B) Occupy Wall Street demonstrations C) BLM movement D) Fight for $15 movement Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Application

8 Copyright © 2025 Pearson Education, Inc.

28) A recent Gallup poll shows that employers with engaged employees ________.

A) have higher levels of employee turnover relative to their peers B) tend to employ more men than women C) report an average of 23% higher profits relative to employers with unhappy employees D) spend more money on labor costs and earn lower profit margins Answer: C Diff: 3 AACSB: Diverse and multicultural work environments Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept 29) A labor union is an organization that represents workers and seeks to protect their interests.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept 30) In the United States, labor unions represent the most significant environmental constraint.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept 31) By the year 2040, the average age in the United States will be 38.6 years, meaning more than half of the workforce will be age 40 and over.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept 32) According to the Pew Research Center, women now account for more than half of the college-educated workforce.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept

9 Copyright © 2025 Pearson Education, Inc.

33) The Civil Rights Act, Title VII, prohibits discrimination of employees who are above 40 years of age.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept 34) The Patient Protection and Affordable Care Act requires employers to provide health insurance coverage to employees.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept 35) The COVID-19 pandemic had little impact on the labor force because union membership protected people from being fired.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept 36) How does increased emphasis on employee well-being impact employers?

Answer: Employers have added more flexible work arrangements and a wide variety of wellness-related programs in workplaces. Research suggests that the emphasis on well-being at work has positive returns for employers because businesses with engaged workers report on average 23 percent higher profits than those with unhappy workers.

Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.2: Describe the external influences that affect the human resource management process.

Classification: Concept

10 Copyright © 2025 Pearson Education, Inc.

37) The process by which managers ensure that they have the right number and kinds of capable people in the right places and at the right times is known as ________.

A) human capital management B) performance management C) performance planning D) human resource planning Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 38) Managers begin human resource planning by ________.

A) identifying capable applicants B) inventorying data on current employees C) conducting job analysis D) forecasting sales Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 39) An assessment that defines jobs and the behaviors necessary to perform them is known as a ________.

A) job description B) job specification C) job preview D) job analysis Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept

11 Copyright © 2025 Pearson Education, Inc.

40) Roberta has been asked to complete a questionnaire about her job duties and the qualifications she believes a candidate for her position should have. This questionnaire is likely part of a ________.

A) job analysis B) employee survey C) position evaluation D) job review Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Application 41) A written statement that explains the job content, environment, and conditions of employment is called a ________.

A) job specification B) job preview C) job manual D) job description Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 42) A ________ states the minimum qualifications that a person must possess to successfully perform a given job.

A) job description B) job preview C) job analysis D) job specification Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept

12 Copyright © 2025 Pearson Education, Inc.

43) Samantha, a human resources manager, wants to let potential candidates know about the minimum qualifications that they should possess in order to successfully perform the jobs they have applied for. What should she do?

A) She should create a job description.

B) She should create a job specification.

C) She should perform a job analysis.

D) She should conduct a job satisfaction survey.

Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Application 44) Recruitment is the process of ________.

A) moving employees laterally to reduce intra-organizational supply-demand imbalances B) locating, identifying, and attracting capable applicants C) screening job applicants to determine who is the best D) selecting candidates to fill open positions Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 45) ________ as a source of recruitment is typically limited to entry-level positions.

A) Employee referrals B) The Internet C) College recruiting D) Professional recruiting organizations Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept

13 Copyright © 2025 Pearson Education, Inc.

46) Gareth is in charge of recruiting at Eowin Systems, and he is expected to enhance the diversity of the workforce. Which of the following recruiting sources should Gareth avoid if he is to achieve the stated aim of a more diverse workforce?

A) College recruiting B) Company website C) Employee referrals D) Professional recruiting organizations Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Application 47) A disadvantage of using professional recruiting organizations is ________.

A) that they generate many unqualified candidates B) their limited commitment to specific organizations C) that they can only be used for entry-level positions D) that they do not increase the diversity and mix of employees Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 48) If human resource planning shows a surplus of employees, management can reduce the organization's workforce through ________.

A) recruitment B) decruitment C) increased workweeks D) reduced job sharing Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept

14 Copyright © 2025 Pearson Education, Inc.

49) ________ are a temporary involuntary termination that can last from a few weeks to several years.

A) Layoffs B) Attritions C) Discharges D) Retirements Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 50) In which one of the following decruitment methods does an organization refrain from filling the openings created by voluntary resignations or normal retirements of its employees?

A) Firing B) Layoffs C) Attrition D) Transfers Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 51) In her next meeting with the senior management, Jane suggests that they should ignore the openings created by voluntary resignations and not hire any more people now. This would avoid much of the pain associated with workforce reduction in future. This implies that Jane favors ________.

A) transfers B) attrition C) layoffs D) reduced workweeks Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Application

15 Copyright © 2025 Pearson Education, Inc.

52) Joan needs to eliminate some employees for a short while. She and her managers identify those employees who are not meeting performance expectations and explain that this termination is temporary, but they are encouraged to seek other positions elsewhere. How is Jane trying to reduce the size of the workforce here?

A) Firing B) Layoffs C) Reduced workweeks D) Early retirements Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Application 53) If Lakesha asks some employees to share jobs or perform their jobs on a part-time basis, she would be ________.

A) firing employees B) encouraging layoffs C) reducing the workweeks D) encouraging early retirements Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Application 54) ________ involves predicting which applicants will be successful if hired.

A) Selection B) Recruitment C) Orientation D) Decruitment Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept

16 Copyright © 2025 Pearson Education, Inc.

55) Errors made by eliminating candidates who would have performed successfully on the job are known as ________.

A) admission errors B) reject errors C) accept errors D) omission errors Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 56) Elizabeth was hired as a customer care executive by a telecommunications provider during a period when they were extremely short-staffed. Her employers soon realized that she was impatient, easily irritated, and lacked motivation. They even began to receive complaints about her behavior from angry customers. In hiring Elizabeth, her employers were guilty of a(n) ________.

A) admission error B) reject error C) accept error D) omission error Answer: C Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Application 57) Terrence worked closely with the new hire, showing him repeatedly how to do the job, pairing him with a job coach, sending him to classes, etc., but it wasn't enough. In addition to the costs of this training, what other costs are involved in this situation?

A) Loss of reputation B) Discharge costs C) Reject error costs D) Lower productivity Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Application

17 Copyright © 2025 Pearson Education, Inc.

58) A(n) ________ selection device is characterized by a proven relationship between the selection device and some relevant job selection criterion.

A) subjective B) objective C) reliable D) valid Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 59) All candidates for entry level engineering positions are given a mechanical aptitude test.

Those who scored well and were hired later earned high scores on their performance evaluations.

Those who scored less well and were hired earned lower scores on performance evaluations.

This indicates that the test is ________.

A) valid B) invalid C) reliable D) unreliable Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Application 60) A ________ selection device indicates that the device measures the same thing consistently.

A) subjective B) potent C) reliable D) valid Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept

18 Copyright © 2025 Pearson Education, Inc.

61) When Beverly administers the math test to accounting clerk candidates, the average score is 65%. But when Carol administers the same test, the score average is 83%. What does this indicate about the test?

A) The test is valid.

B) The test is unreliable.

C) The test is poorly constructed.

D) The test is reliable Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Application 62) One source for applicant background information that is increasing in popularity is ________.

A) letters of reference B) phone calls to friends C) personality tests D) social media Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 63) Application forms ________.

A) are most useful for gathering information B) include personality and interest forms C) use actual job behaviors D) are not used for managerial positions Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept

19 Copyright © 2025 Pearson Education, Inc.

64) Tim is a candidate for an automotive mechanic's position. He is asked to deconstruct and reconstruct part of an engine motor to demonstrate his skill. This is an example of a(n) ________.

A) work sample test B) performance-simulation test C) intelligence test D) psychometric test Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Application 65) Assessment centers are best used to select ________.

A) individuals for management positions B) semiskilled workers C) employees for entry-level positions D) unskilled workers Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 66) Which one of the following is true of written tests as a selection tool?

A) They are not very popular anymore.

B) There are some that are relatively good predictors for supervisory positions.

C) They cannot predict job performance.

D) They are almost universally used.

Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept

20 Copyright © 2025 Pearson Education, Inc.

67) A ________ includes both positive and negative aspects about the job and the company.

A) structured interview B) job analysis C) realistic job preview D) behavioral preview Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 68) Which of the following is one of the most common uses of artificial intelligence (AI) in the hiring process?

A) AI is used to conduct virtual interviews.

B) Employers use AI systems to grade writing samples of applicants.

C) AI is often used to screen a large volume of résumés for niche skills.

D) AI is used to develop personnel policies at most large firms.

Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Application 69) Larry is in charge of recruitment for entry-level positions at Merlin Infosystems. He believes that job interviews should include a realistic job preview. Which one of the following is Larry likely to do during job interviews?

A) Emphasize the positive points, including the flexible nature of work.

B) Over-embellish the growth opportunities for employees.

C) Promise a vibrant, fun work culture at the office.

D) Tell the employee about possible overtime.

Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Application 70) Future HR needs are determined by the organization's current level of production and the popularity of its products.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 21 Copyright © 2025 Pearson Education, Inc.

71) Title VII of the Civil Rights Act requires that employment tests be job-related and consistent with business necessity.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 72) Human resource planning entails two steps: assessing current human resources and meeting future human resource needs.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 73) Job descriptions focus on the job, while job specifications focus on the person.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 74) Recruitment is defined as the process of screening job applicants to determine who is best qualified for the job.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 75) One disadvantage of employee referrals as a source of job candidates is that it generates unqualified candidates.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept

22 Copyright © 2025 Pearson Education, Inc.

76) There are essentially two ways of controlling labor supply through decruitment: firing and early retirements.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 77) The burden is on managers to prove that the selection devices they use are a valid predictor of job performance.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 78) Giving negative information about the organization to prospective candidates is not a good idea because it puts the company in a bad light.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept

23 Copyright © 2025 Pearson Education, Inc.

79) Discuss the two purposes of human resource planning.

Answer: Human resource (HR) planning is the process by which managers ensure that they have the right number and kinds of capable people in the right places and at the right times. This allows the organization to avoid sudden people shortages and surpluses. The process of HR planning entails two steps: (1) assessing current human resources, and (2) meeting future HR needs.

Current Assessment - Managers begin the HR planning by inventorying current employees. This inventory usually includes information on employees such as name, education, training, prior employment, languages spoken, special capabilities, and specialized skills.

Job analysis is an important part of current assessment. Job analysis is an assessment that defines a job and the behaviors necessary to perform it. Information for a job analysis is gathered by directly observing individuals on the job, interviewing employees individually or in a group, having employees complete a questionnaire or record daily activities in a diary, or having experts identify a job's specific characteristics.

Using the information from job analysis, managers develop or revise job descriptions and job specifications. A job description is a written statement describing a job, job content, environment, and conditions of employment. A job specification states the minimum qualifications that a person must possess to successfully perform a given job. It identifies the knowledge, skills, and attitudes needed to do the job effectively. Both the job description and job specification are important documents when managers begin recruiting and selecting.

Meeting future HR needs - Future HR needs are determined by the organization's mission, goals, and strategies. Demand for employees also results from demand for the organization's products or services.

Assessing current capabilities and future needs allow managers to estimate the areas in which the organization will be understaffed or overstaffed.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept

24 Copyright © 2025 Pearson Education, Inc.

80) What is recruitment? What are the commonly used recruitment sources?

Answer: Recruitment is the process of locating, identifying, and attracting capable applicants.

Commonly used recruitment sources are: a. The Internet - This reaches a large number of people and can get immediate feedback.

However it also generates many unqualified candidates. b. Employee referrals - The knowledge about the organization is provided by the current employees. This can generate strong candidates because a good referral reflects on the recommender. However this may not increase the diversity and mix of employees in the organization. c. The company Web site - This has a wide distribution. It can be targeted to specific groups. But on the flip side, it also generates many unqualified candidates. d. College recruiting - This allows access to a large, centralized body of candidates. However, this source can only be used for filling entry-level positions in the organization. e. Professional recruiting organizations - They have a good knowledge of industry challenges and requirements. But, on the negative side, they have very little commitment to specific organizations.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 81) Define decruitment and discuss the various decruitment options.

Answer: Decruitment is the process by which an organization reduces its workforce. The various decruitment options available to an organization are: a. Firing - This refers to permanent involuntary termination of employees. b. Layoffs - These refer to temporary involuntary termination of employees. Layoffs may last only for a few days or extend up to years. c. Attrition - This is achieved when an organization does not fill the openings created by voluntary resignations or normal retirements of its employees. d. Transfers - This happens when employees are moved either laterally or downward. This usually does not reduce costs but it can reduce intra-organizational supply-demand imbalances. e. Reduced workweeks - This is achieved by having employees work fewer hours per week, share jobs, or perform their jobs on a part-time basis. f. Early retirements - Here, the organization provides incentives to older and more senior employees for retiring before their normal retirement date. g. Job sharing - This is achieved by having employees share one full-time position.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept

25 Copyright © 2025 Pearson Education, Inc.

82) In a short essay, define selection and list some of the selection tools used by managers.

Answer: Selection is the process of screening job applicants to determine who is best qualified for the job in question. It involves predicting which applicants will be successful if hired. A manager may use any of the following selection tools: a. Application Forms - These are almost universally used. These are most useful for gathering information and can help predict job performance. However it is difficult to create an application form that can give all the required information. b. Written Tests - The manager has to see to it that the tests are job related. The tests include intelligence, aptitude, ability, personality, and interest tests. These tests are popular. They are also a relatively good predictor for supervisory positions. c. Performance-Simulation Tests - These kind of tests use actual job behaviors. Work sampling is a type of performance-simulation test that tests the applicants on tasks associated with the job.

Work sampling is appropriate for selecting people for routine or standardized work. Assessment centers are performance-simulation tests that simulate jobs. Assessment centers are appropriate for evaluating managerial potential. d. Interviews - Like application forms, these are also universally used. The interviewer must know what can and cannot be asked in the interview. e. Background Investigations - These are used for verifying application data and reference checks. f. Physical Examinations - These are best suited to select candidates for jobs that have certain physical requirements. These are mostly used for insurance purposes.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 11.3: Discuss the tasks associated with identifying and selecting competent employees.

Classification: Concept 83) ________ is the process of introducing a new employee to his/her job and the organization.

A) Orientation B) Selection C) Staffing D) Training Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.4: Explain how companies develop workplace talent.

Classification: Concept

26 Copyright © 2025 Pearson Education, Inc.

84) The two types of orientations are ________.

A) job orientation and procedural orientation B) work unit orientation and organization orientation C) work unit orientation and group orientation D) organization orientation and group orientation Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.4: Explain how companies develop workplace talent.

Classification: Concept 85) Which of the following types of training is a high priority for many organizations?

A) Customer service B) Basic life-work skills C) Managing change D) Customer education Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.4: Explain how companies develop workplace talent.

Classification: Concept 86) Successful orientation results in which one of the following outcomes?

A) Insider-outsider transition B) More premature resignations C) Reduced premature resignation D) Fewer discrimination lawsuits Answer: C Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 11.4: Explain how companies develop workplace talent.

Classification: Concept 87) Which one of the following is NOT a major type of training provided by organizations?

A) Onboarding B) Team building skills C) Supervisory training D) Customer service Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.4: Explain how companies develop workplace talent.

Classification: Concept

27 Copyright © 2025 Pearson Education, Inc.

88) In which one of the following traditional training methods are employees made to work at different jobs in a particular area in order to get exposure to a variety of tasks?

A) Training by job rotation B) On-the-job training C) Mentoring D) Coaching Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.4: Explain how companies develop workplace talent.

Classification: Concept 89) In which one of the following traditional training methods do employees work with an experienced worker who provides information, support, and encouragement?

A) Job rotation B) Experiential exercises C) Mentoring and coaching D) On-the-job training Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.4: Explain how companies develop workplace talent.

Classification: Concept 90) Which one of the following training methods involves employees participating in role playing, simulations, or other face-to-face types of training?

A) Experiential exercises B) Job rotation C) Mentoring and coaching D) On-the-job training Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.4: Explain how companies develop workplace talent.

Classification: Concept 91) ________ is an Internet-based learning where employees participate in multimedia simulations or other interactive modules.

A) Podcasts B) E-learning C) Mobile learning D) Videoconferencing Answer: B Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 11.4: Explain how companies develop workplace talent.

Classification: Concept 28 Copyright © 2025 Pearson Education, Inc.

92) Which of the following is a technology-based training method?

A) Classroom lectures B) Experiential exercises C) Virtual reality D) Workbooks/manuals Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.4: Explain how companies develop workplace talent.

Classification: Concept 93) Each day Ted's smartphone receives a training video about another aspect of his job. Ted can access these at his leisure and is required to take a quiz to confirm he has watched them. This system of delivering training content is called ________.

A) experiential exercises B) mobile learning C) videoconferencing D) e-learning Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 11.4: Explain how companies develop workplace talent.

Classification: Application 94) A new employee goes through two types of orientation: work unit orientation and procedural orientation.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.4: Explain how companies develop workplace talent.

Classification: Concept 95) Job rotation allows employees to work at different jobs in a particular area, thereby giving them exposure to a variety of tasks.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.4: Explain how companies develop workplace talent.

Classification: Concept

29 Copyright © 2025 Pearson Education, Inc.

96) What is orientation? Discuss the two types of orientation.

Answer: The process of introducing a person to his new job is known as orientation.

There are two types of orientation: work unit orientation and organization orientation. Work unit orientation familiarizes the employee with the goals of the work unit, clarifies how his or her job contributes to the unit's goals, and includes an introduction to his or her new coworkers.

Organization orientation informs the new employee about the company's goals, history, philosophy, procedures, and rules.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 11.4: Explain how companies develop workplace talent.

Classification: Concept 97) Discuss the various traditional and technology-based training methods that managers use to improve employee skill sets.

Answer: The various traditional training methods are: a. On-the-job training - Employees learn how to do tasks simply by performing them, typically after an initial introduction to the task. b. Job rotation - Employees work at different jobs in a particular area and thus gain exposure on a variety of tasks. c. Mentoring and coaching - Employees work with an experienced worker who provides information, support, and encouragement. d. Experiential exercises - Employees participate in role playing, simulations, or other face-toface types of training. e. Workbooks/manuals - Employees refer to training workbooks and manuals for information. f. Classroom lectures - Employees attend lectures designed to convey specific information.

The various technology-based training methods are: • Videos and podcasts - Employees listen to or watch selected media that convey information or demonstrate certain techniques.

• Synchronous video programs - Employees listen to or participate as information is conveyed or techniques demonstrated.

• E-learning - This is an Internet-based learning where employees participate in multimedia simulations or other interactive modules.

• Mobile learning - Employees learn via mobile devices.

• Virtual reality (VR) - Employees use VR headsets and customized software to learn through simulated practice.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 11.4: Explain how companies develop workplace talent.

Classification: Concept

30 Copyright © 2025 Pearson Education, Inc.

98) Which of the following methods of performance appraisal allows the evaluator to focus on vital behaviors that separate effective work performance from ineffective work performance?

A) Behaviorally anchored rating scale B) Written essay C) Critical incident D) Graphic rating scale Answer: C Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 11.5: Describe strategies for retaining competent, high-performing employees.

Classification: Concept 99) The ________ method of performance appraisal allows the evaluator to rate employees on an incremental scale.

A) behaviorally anchored rating scale B) management by objective C) graphic rating scale D) multiperson comparison Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.5: Describe strategies for retaining competent, high-performing employees.

Classification: Concept 100) The top management of the company asks Earl to make use of a rating scale that will rate the employees' actual job behaviors. The managers are asking Steve to use a ________.

A) 360-degree feedback B) management by objective method C) behaviorally anchored rating scale D) graphic rating scale Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 11.5: Describe strategies for retaining competent, high-performing employees.

Classification: Application

31 Copyright © 2025 Pearson Education, Inc.

101) Which one of the following performance appraisal methods is a combination of elements from the critical incident method and the graphic rating scale method?

A) Multiperson comparison B) 360-degree appraisal C) Management by objective D) Behaviorally anchored rating scale Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.5: Describe strategies for retaining competent, high-performing employees.

Classification: Concept 102) A ________ is a method of performance appraisal by which each employee is rated in comparison to other employees in his work group.

A) multiperson comparison B) behaviorally anchored rating scale C) critical incident D) graphic rating scale Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.5: Describe strategies for retaining competent, high-performing employees.

Classification: Concept 103) In his report, Wade described the strengths and weaknesses of each of his subordinates. He made a note of their past performances and the potential they displayed. He even provided suggestions for their improvements. Wade is using the ________ method of conducting a performance appraisal.

A) graphic rating scale B) written essay C) multiperson comparison D) behaviorally anchored rating scale Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 11.5: Describe strategies for retaining competent, high-performing employees.

Classification: Application

32 Copyright © 2025 Pearson Education, Inc.

104) Jasmine hosts her first regional sales meeting during which she meets individually with her employees and shows them a chart of their sales numbers for each month compared to their budgeted quota for the year to date. Additionally, Jasmine and each employee set mutually agreed-upon budget goals for the remaining six months of the fiscal year. Jasmine is utilizing the ________ method of performance appraisal.

A) BARS B) critical incident C) MBO D) multiperson comparison Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 11.5: Describe strategies for retaining competent, high-performing employees.

Classification: Application 105) The ________ method utilizes feedback from supervisors, employees, and coworkers.

A) multiperson comparison B) 360-degree appraisal C) critical incident D) graphic rating scale Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.5: Describe strategies for retaining competent, high-performing employees.

Classification: Concept 106) A ________ system rewards employees for the job competencies they demonstrate.

A) piece-rate pay B) skill-based pay C) variable pay D) performance-based pay Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.5: Describe strategies for retaining competent, high-performing employees.

Classification: Concept

33 Copyright © 2025 Pearson Education, Inc.

107) Steve recommends that employees should be compensated according to their competencies, rather than their designations. Employees should be financially rewarded when they gain more knowledge and learn new processes that are relevant to the job, even if the employee is at a lower level. This implies that Steve favors a ________.

A) variable pay system B) fixed pay system C) profit-based pay system D) skill-based pay system Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 11.5: Describe strategies for retaining competent, high-performing employees.

Classification: Application 108) After 75 years in business, ABC Corp. has decided it is time to overhaul its compensation system. What advice would you offer its HR manager?

A) Make it more flexible and reduce the number of pay levels.

B) Pay everyone in the same pay grade the same wage regardless of seniority.

C) Focus on benefits rather than wages or salaries.

D) Make pay a function of the amount of education the employee has.

Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 11.5: Describe strategies for retaining competent, high-performing employees.

Classification: Application 109) Which of the following is most likely to be included in family-friendly benefits provided by organizations?

A) Insurance programs B) Savings accounts C) Time off for school functions D) Retirement benefits Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.5: Describe strategies for retaining competent, high-performing employees.

Classification: Concept

34 Copyright © 2025 Pearson Education, Inc.

110) Which of these pay systems base at least part of an employee's pay on performance?

A) Skill-based pay B) Variable pay C) Tenure-based pay D) Profit sharing Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.5: Describe strategies for retaining competent, high-performing employees.

Classification: Concept 111) Written essay and critical incident are performance appraisal methods.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 11.5: Describe strategies for retaining competent, high-performing employees.

Classification: Concept 112) Variable pay systems reward employees for the job skills and competencies they can demonstrate.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 11.5: Describe strategies for retaining competent, high-performing employees.

Classification: Concept

35 Copyright © 2025 Pearson Education, Inc.

113) List four of the seven major performance appraisal methods.

Answer: The seven major performance appraisal methods are: a. Written essay - This is a technique in which an evaluator writes out a description of an employee's strengths and weaknesses, past performance, and potential. He also makes suggestions for improvement. b. Critical incidents - This focuses the evaluator's attention on critical or key behaviors that separate effective from ineffective job performance. c. Graphic rating scale - This method lists a set of performance factors. The evaluator goes down the list and rates each employee on each factor using an incremental scale. d. BARS - Behaviorally Anchored Rating Scales (BARS) combine major elements from the critical incident and graphic rating scale approaches. The appraiser rates the employee according to items along a numerical scale. The items here are examples of actual job behaviors. e. Multiperson comparison - This approach compares one person's performance with that of others. f. MBO - Management by objectives (MBO) is also an effective performance appraisal method where employees are evaluated on specific goals that were established jointly by them and the manager. g. 360-degree appraisal - This method utilizes feedback from supervisors, employees, and coworkers of the employee.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 11.5: Describe strategies for retaining competent, high-performing employees.

Classification: Concept

36 Copyright © 2025 Pearson Education, Inc.

Management, 16e (Robbins) Chapter 12 Managing Change and Innovation 1) Organizational change can best be defined as ________.

A) rethinking the organization's target markets B) innovation that affects employees and customers C) a "cleaning house" of the top executives D) any alteration of people, structure, or technology Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Concept 2) Alison has an idea for improving the efficiency of her work area. When she approached her supervisor, she was asked to shepherd the idea through the approval, implementation, and evaluations processes. Alison has become a ________.

A) supervisor B) change agent C) group leader D) job coach Answer: B Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Application 3) In organizations, people who act as catalysts and assume the responsibility for managing the change process are called ________.

A) change masters B) change agents C) change champions D) change generators Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Concept

1 Copyright © 2025 Pearson Education, Inc.

4) Outside consultants are more likely to initiate ________ organizational changes than insiders are.

A) drastic B) mild C) acceptable D) trivial Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Concept 5) Organizations need change because ________.

A) the future is unpredictable B) the environment is stable C) external and internal factors create the forces for change D) employees get bored with the status quo Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Concept 6) The Clean Air Act is an example of which of the following forces of change?

A) Internal change B) Technological change C) External change D) Organizational strategy change Answer: C Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Application 7) The COVID-19 pandemic forced restaurants to invest in self-ordering kiosks to help alleviate the labor shortage. Therefore, it was a(n) ________ force of change.

A) governmental B) internal C) marketplace D) economic Answer: D Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Application

2 Copyright © 2025 Pearson Education, Inc.

8) First CEO Snyder was all about innovation. Next it was efficiency. Now Snyder's strategy is customer responsiveness. These changes in strategy are indicative of a(n) ________ force of change.

A) external B) internal C) marketplace D) economic Answer: B Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Application 9) When the new CEO came in, she immediately slashes bonus checks for employees. This would represent which type of forces of change?

A) External force of change B) Economic force of change C) Internal force of change D) Social force of change Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Application 10) Which one of the following is an example of changing consumer preferences?

A) Cell phone cameras have improved with each version of the phone.

B) Employers with at least 50 employees must offer health care plans.

C) A recession has caused an increase in unemployment.

D) The colors in home fashions change every year.

Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Application 11) Which one of the following represents a change in technology?

A) Many firms now hold meetings using Zoom.

B) Electricity is produced by generating plants that burn coal.

C) Bold, bright colors in clothing and wall paint have largely replaced neutrals.

D) The participation rate of the U.S. labor force is at its lowest point in the last 40 years.

Answer: A Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Application 3 Copyright © 2025 Pearson Education, Inc.

12) Sales are down; unemployment is up. Evergreen Park Homes can no longer support its current level of production. Evergreen is facing a change in ________.

A) government regulations B) technology C) consumer preferences D) the economy Answer: D Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Application 13) Falling interest rates are an example of which external force?

A) Change in composition of workforce B) Change in employee attitudes C) Technological change D) Economic change Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Application 14) Bullseye, a large discount retailer, discovered it could not compete with the world's largest retailer and has repositioned itself as a more upscale discount department store. This move represents a change in ________.

A) consumer preferences B) organizational strategy C) technology D) the economy Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Application

4 Copyright © 2025 Pearson Education, Inc.

15) During his first year of employment, Arnold saw mostly white male faces in his plant. Now he sees women and men of all ages and ethnicities. Communication has become challenging.

Arnold has noticed a change in the ________.

A) lifestyle choices B) workforce composition C) employment laws D) employee attitudes Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Application 16) Increasing the numbers of employed women and minorities forces managers to pay attention to which change factor?

A) Organizational strategy B) Changes in the composition of the workforce C) New equipment D) Changing technology Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Application 17) Which one of the following is NOT one of the components of the acronym VUCA? A) Variability B) Uncertainty C) Complexity D) Ambiguity Answer: A Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Application 18) Labor strikes are an example of which of the following internal change factors?

A) Workforce composition B) New equipment C) Employee attitudes D) Organizational strategy Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Application 5 Copyright © 2025 Pearson Education, Inc.

19) Outside consultants tend to recommend more cautious changes because they may fear lawsuits if the recommendations turn out badly.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Concept 20) Government regulations are considered an internal factor for change because they force the business to change how it functions.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Concept 21) VUCA is an acronym for an environment of nonstop volatility, uncertainty, complexity, and ambiguity.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Concept 22) Employees who prefer stability are less likely to try new technology.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Concept 23) List the four external factors that prompt change in an organization.

Answer: 1) Changes in consumer needs and wants 2) New government legislation or changes in laws 3) New technologies 4) Changes in the economy Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Concept

6 Copyright © 2025 Pearson Education, Inc.

24) List the four internal factors that cause change in an organization.

Answer: 1) New organizational strategy 2) Changes in workforce composition 3) New equipment 4) Changes in employee attitudes Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 12.1: Describe making the case for change.

Classification: Concept 25) Fuel prices keep spiraling upward so recreational vehicle manufacturers are being pressured to produce lighter units that can be pulled by smaller trucks. This situation is representative of ________.

A) a driving force B) a social force C) a restraining force D) an internal force Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 12.2: Compare and contrast views on the change process.

Classification: Application 26) The two metaphors commonly used to describe the two views of the change process are ________.

A) smooth water and troubled water B) calm waters and white-water rapids C) shallow water and falling water D) burning bridge and water over the dam Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.2: Compare and contrast views on the change process.

Classification: Concept 27) In the ________ metaphor, change is normal and expected and managing it is a continual process.

A) calm waters B) white-water rapids C) smooth water D) water over the dam Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.2: Compare and contrast views on the change process.

Classification: Concept 7 Copyright © 2025 Pearson Education, Inc.

28) Business had been humming along just fine until the COVID-19 pandemic hit. Benton Industries adjusted by laying off employees until business picked back up and then hired them back. Then it was back to business as usual. This is an example of the ________ metaphor.

A) shallow water B) calm waters C) white-water rapids D) falling water Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 12.2: Compare and contrast views on the change process.

Classification: Application 29) Lewin's three-step process is consistent with the ________ theory of organizational change.

A) white-water rapids B) shallow waters C) smooth waters D) calm waters Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.2: Compare and contrast views on the change process.

Classification: Concept 30) According to Kurt Lewin, which of the following is a stage in the change process?

A) Restraining B) Driving C) Processing D) Unfreezing Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.2: Compare and contrast views on the change process.

Classification: Concept 31) According to Kurt Lewin, increasing the driving forces is a means of ________.

A) unfreezing B) changing C) restraining D) refreezing Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.2: Compare and contrast views on the change process.

Classification: Concept

8 Copyright © 2025 Pearson Education, Inc.

32) The unfreezing step of the change process can be thought of as ________.

A) changing to a new state B) sustaining a change over time C) changing the organizational structure D) preparing for the needed change Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.2: Compare and contrast views on the change process.

Classification: Concept 33) According to Lewin, which of the following is the objective of refreezing?

A) Directing behavior away from the change B) Hindering the existing equilibrium C) Eliminating the need for future change D) Stabilizing the new situation Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.2: Compare and contrast views on the change process.

Classification: Concept 34) "If it's not one thing, it's another. We just get used to doing things one way and suddenly that's not good enough anymore. It's a new machine here, a new manager there, changing customer demands-it never ends!" This is an example of the ________ metaphor.

A) water over the dam B) calm waters C) white-water rapids D) falling water Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 12.2: Compare and contrast views on the change process.

Classification: Application 35) New Ideas Inc. focuses on new ideas, uses technology that changes frequently, and has strong competition in the market. This situation describes what metaphor of change?

A) A shallow water metaphor B) A falling water rapid metaphor C) A rapid water metaphor D) A white-water rapids metaphor Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 12.2: Compare and contrast views on the change process.

Classification: Application 9 Copyright © 2025 Pearson Education, Inc.

36) The appropriate order for the three-step change process is ________.

A) unfreezing, refreezing and changing B) changing, unfreezing and refreezing C) unfreezing, changing and refreezing D) there is no absolute order Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 12.2: Compare and contrast views on the change process.

Classification: Application 37) Many managers realize that today's business environment consists of ________.

A) predictability and stability B) very little disruptive change C) continuous disruptions D) mostly calm waters Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 12.2: Compare and contrast views on the change process.

Classification: Application 38) The "white-water rapids" metaphor of change is consistent with Lewin's concept of unfreezing, changing, and refreezing.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.2: Compare and contrast views on the change process.

Classification: Concept 39) In the "white-water rapids" metaphor of change, change is seen as an occasional disruption in the normal flow of events.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.2: Compare and contrast views on the change process.

Classification: Concept 40) In the "calm waters" metaphor, change is seen as an occasional disruption in the normal flow of events.

Answer: TRUE Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 12.2: Compare and contrast views on the change process.

Classification: Concept

10 Copyright © 2025 Pearson Education, Inc.

41) Describe and explain the "calm waters" view of organizational change.

Answer: The calm waters view of organizational change envisions the organization as a large ship crossing a calm sea. The ship's captain and crew know exactly where they are going because they have made the trip many times before. Change comes in the form of an occasional storm, a brief distraction in an otherwise calm and predictable trip. In the calm waters metaphor, change is seen as an occasional disruption in the normal flow of events.

It is best illustrated by Kurt Lewin's three-step description of the change process.

According to Lewin, successful change can be planned and requires unfreezing the status quo, changing to a new state, and refreezing to make the change permanent. The status quo can be considered an equilibrium state. To move from this equilibrium, unfreezing is necessary.

Unfreezing can be thought of as preparing for the needed change. It can be achieved by increasing the driving forces, which are forces pushing for change; by decreasing the restraining forces, which are forces that resist change, and push behavior toward the status quo; or by combining the two approaches.

Once unfreezing is done, the change itself can be implemented. However, merely introducing change does not ensure that it will take hold. The new situation needs to be refrozen so that it can be sustained over time. Unless this last step is taken, there is a strong chance that employees will revert back to the old ways of doing things. The objective of refreezing, then, is to stabilize the new situation by reinforcing the new behaviors.

Lewin's three-step process treats change as a move away from the organization's current equilibrium state. It is a calm waters scenario where an occasional disruption means changing to deal with the disruption. Once the disruption has been dealt with, however, things can continue on under the new changed situation.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 12.2: Compare and contrast views on the change process.

Classification: Concept 42) Organizational change is any alteration of ________.

A) people, structure, strategy, culture, or technology B) structure, management, workforce composition, or goals C) technology, goals, strategy, workforce composition, or management D) rules, procedures, control, leadership, or management Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Concept

11 Copyright © 2025 Pearson Education, Inc.

43) During the Great Recession, average household discretionary income declined. Families sought less expensive alternatives for luxury items. Producers adjusted by offering lighterweight, lower-cost items. These producers changed their ________.

A) strategies B) structures C) people D) technology Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Application 44) Colin believes his organization could be more profitable if it could respond to customers more quickly, so he has decided to remove some management layers and increase the remaining managers' span of control. These would be considered changes in ________.

A) structural design B) structural process C) degree of centralization D) structural components Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Application 45) Structural component changes include ________.

A) combining departmental responsibilities B) changing market niche C) changing attitudes D) changing behavior Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Concept

12 Copyright © 2025 Pearson Education, Inc.

46) If Kelly were to consider enhancing productivity by giving greater authority to her subordinates and increasing formalization, she would be considering ________ changes.

A) structural B) technological C) people D) strategy Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Application 47) A company that decides to decentralize its sales procedures is managing ________ changes.

A) technological B) people C) strategy D) structural Answer: D Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Application 48) After Body-Met acquired Uni-Dyne, the company reorganized around geographic divisions instead of function. This action represents changes in ________.

A) strategy B) structural components C) structural design D) people Answer: C Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Application 49) Which type of change might include a shift from a functional to a product structure?

A) A structural design change B) A structural component change C) A technological change D) A people change Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Concept

13 Copyright © 2025 Pearson Education, Inc.

50) After several expansions and acquisitions that resulted in duplicate positions of several administrative functions, U.S. Big Corp. decided to reorganize itself around customers rather than around functions. This would amount to a change in ________.

A) structural design B) selection process C) degree of centralization D) structural components Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Application 51) Changes in work processes, methods, and equipment are a part of ________ changes.

A) technological B) structural component C) financial D) structural design Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Concept 52) Technological changes usually involve the introduction of new equipment, ________.

A) tools, or operating methods B) tools, or people C) operating methods, or structure D) people, or structure Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Concept 53) The installation of the new equipment at Fred Fryer's Donuts, Inc., is an example of ________.

A) people change B) management change C) technological change D) structural change Answer: C Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Application 14 Copyright © 2025 Pearson Education, Inc.

54) When supermarkets and other retailers use scanners that provide instant inventory information, they are adopting ________ changes.

A) technological B) people C) efficiency D) structural Answer: A Diff: 2 AACSB: Application of knowledge; Information technology Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Application 55) ________ is the term used to describe change methods that focus on people and the nature and quality of interpersonal work relationships.

A) Commercial development B) Organizational development C) Career development D) Comprehensive development Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Concept 56) If Kraft Foods hired a consultant to decrease group friction and enhance cooperative work relationships, this would be an example of managing ________ changes.

A) technological B) people C) financial D) structural Answer: B Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Application 57) ________ is a method of changing behavior through unstructured group interaction.

A) Team building B) Intergroup development C) Survey feedback D) Sensitivity training Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Concept 15 Copyright © 2025 Pearson Education, Inc.

58) An increase in the diversity of his department has led to conflict and animosity. To reduce this and allow his team to become more productive, Lemuel has asked the Human Resources department to provide ________ for his people.

A) survey feedback B) sensitivity training C) team building D) intergroup development Answer: B Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Application 59) What organizational development technique involves changing the attitudes, stereotypes, and perceptions that work groups have about each other?

A) Team building B) Intergroup development C) Survey feedback D) Sensitivity training Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Concept 60) Organizational change can be any alteration of strategy, people, structure, or technology.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Concept 61) Organizational development techniques value human and organizational growth, collaborative and participative processes, and new technologies.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Concept 62) Changing structure includes any change in structural variables such as reporting relationships, coordination mechanisms, employee empowerment, or job redesign.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Concept 16 Copyright © 2025 Pearson Education, Inc.

63) Sensitivity training refers to activities that help team members learn how each member thinks and works.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Concept 64) Explain the five types of organizational change.

Answer: Changes in the external environment or in organizational strategies often lead to changes in the organizational structure. Managers face five main types of change: strategy, structure, culture, technology, and people. Changing strategy signifies a change in how managers ensure the success of the company.

Changing structure includes any change in structural variables such as reporting relationships, coordination mechanisms, employee empowerment, or job redesign.

Changes in culture are difficult to implement but can occur when a crisis occurs, or new leadership takes the organization in a different direction. Technological changes usually involve the introduction of new equipment, tools, or methods; automation; or computerization.

Competitive factors or new innovations within an industry often require managers to introduce new equipment, tools, or operating methods.

Changing people involves changing attitudes, expectations, perceptions, and behaviors.

Organizational development is the term used to describe change methods that focus on people and the nature and quality of interpersonal work relationships.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Concept

17 Copyright © 2025 Pearson Education, Inc.

65) Define Organizational Development (OD). List and explain the five most popular OD techniques.

Answer: Organizational Development (OD) is the term used to describe change methods that focus on people and the nature and quality of interpersonal work relationships.

The five most popular OD techniques are: a. Sensitivity training - It is a method of changing behavior through unstructured group interaction. b. Team building - These refer to activities that help team members learn how each member thinks and works. c. Intergroup development - This involves changing the attitudes, stereotypes, and perceptions that work groups have about each other. d. Process consultation - Here, an outside consultant helps the manager understand how interpersonal processes are affecting the way work is being done. e. Survey feedback - It is a technique for assessing attitudes and perceptions, identifying discrepancies in these, and resolving the differences by using survey information in feedback groups.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 12.3: Classify areas of organizational change.

Classification: Concept 66) An individual is likely to resist change because of the feeling ________.

A) of achievement B) of uncertainty C) of personal gain D) that the change is in the organization's best interest Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Concept 67) When Joshua proposed cross-training his employees so absences and vacations would not pose such a problem in productivity, his employees objected. Their resistance came from their ________.

A) belief that ambiguity would increase B) fear that they would be forced out of their habits C) concern over personal loss of income D) belief that Joshua's changes would harm the organization Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Application

18 Copyright © 2025 Pearson Education, Inc.

68) Shelly was the most senior employee in the department and knew just about everything about everyone else's job. If all employees in the department were cross-trained, Shelly would no longer have an advantage that brought with it special privileges. Shelly's resistance to change came from her ________.

A) belief that uncertainty would increase B) fear that she would be forced out of her habit C) concern over personal loss D) belief that the changes would harm the organization Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Application 69) Back2Work succeeded because it offered personalized assistance to its clients–people who had lost jobs–beginning with having a live person answering every phone call. When management proposed an automated answering service with a directory tree ("Press 1 for a company directory," for example), Cathy was concerned the company would lose customers.

Cathy's resistance stemmed from her ________.

A) belief that uncertainty would increase B) fear that she would be forced out of her habit C) concern over personal loss D) belief that the change was incompatible with the goals and interests of the organization Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Application 70) Which one of the following techniques for reducing resistance to change assumes that much of the resistance lies in misinformation?

A) Negotiation B) Education and communication C) Participation D) Facilitation and support Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Concept

19 Copyright © 2025 Pearson Education, Inc.

71) Fred's Donuts is installing new equipment in its bakery. Many employees are fearful they will not be able to operate it. Which one of the following courses of action is best for Fred to use to overcome this employee resistance?

A) Threaten the employees who resist the change B) Present distorted facts to the employees C) Terminate employees who resist the change D) Educate employees and communicate with them Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Application 72) In addition to face-to-face meetings, employers are encouraged to use ________ to communicate information about changes to their workforce.

A) paid public announcements B) social media C) bulletin boards D) emails Answer: B Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Concept 73) ________ involves bringing individuals directly affected by the proposed change into the decision-making process.

A) Participation B) Facilitation and support C) Delegation D) Manipulation and co-optation Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Concept

20 Copyright © 2025 Pearson Education, Inc.

74) Back2Work is considering replacing the receptionist who answers the phone with an automated answering system. Back2Work should ________ to reduce resistance to this change.

A) negotiate with the current receptionist B) tell the current receptionist she is being reassigned C) involve the current receptionist in the decision process D) explain the benefits of this change to the current receptionist Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Application 75) Which of the following techniques for reducing resistance to change includes employee counseling, therapy, new skills training, or a short, paid leave of absence?

A) Negotiation B) Facilitation and support C) Manipulation and co-optation D) Coercion Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Concept 76) ________ involves exchanging something of value for an agreement to lessen the resistance to the change effort.

A) Negotiation B) Manipulation and co-optation C) Coercion D) Facilitation and support Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Concept 77) ________ involves distorting facts to make the change appear more attractive.

A) Framing B) Education and communication C) Participation D) Manipulation and co-optation Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Concept 21 Copyright © 2025 Pearson Education, Inc.

78) Which of the following is a favorable condition that will facilitate a cultural change?

A) The organization has a strong culture.

B) The organization has a long existence.

C) A dramatic crisis occurs.

D) A stable leadership exists.

Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Concept 79) One reason people resist change in an organization is that they are afraid their skill sets will be obsolete.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Concept 80) People may resist change based on habit.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Concept 81) Negotiation involves bringing those affected by change into the decision-making process.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Concept 82) Manipulation involves the use of direct threats against the resisters.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Concept 83) Coercion involves the use of covert attempts to influence others.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Concept 22 Copyright © 2025 Pearson Education, Inc.

84) A disadvantage of coercion is that it may be illegal and may undermine the change agent's credibility.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Concept 85) Why do people resist change?

Answer: An individual is likely to resist change for the following reasons: uncertainty, habit, concern over personal loss, and the belief that the change is not in the organization's best interest.

Change replaces the known with uncertainty. For example, when quality control methods based on sophisticated statistical models are introduced into manufacturing plants, many quality control inspectors have to learn the new methods. Some inspectors may fear that they will be unable to do so and may, therefore, develop a negative attitude toward the change or behave poorly if required to use them.

Another cause of resistance is that people do things out of habit. Every day, when going to work, people probably go the same way, whether walking, driving, or using mass transit. To cope with this complexity, they rely on habits or programmed responses. But when confronted with change, their tendency to respond in their accustomed ways becomes a source of resistance.

The third cause of resistance is the fear of losing something already possessed. Change threatens the investment people have already made in the status quo. The more that people have invested in the current system, the more they resist change.

A final cause of resistance is a person's belief that the change is incompatible with the goals and interests of the organization. For instance, an employee who believes that a proposed new job procedure will reduce product quality or productivity can be expected to resist the change.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Concept

23 Copyright © 2025 Pearson Education, Inc.

86) List and explain the techniques for reducing resistance to change.

Answer: The various techniques for reducing resistance to change are: a. Education and communication - This helps reduce resistance to change by helping employees see the logic of the change effort. This technique assumes that much of the resistance lies in misinformation or poor communication. b. Participation - This involves bringing those individuals directly affected by the proposed change into the decision-making process. Their participation allows these individuals to express their feelings, increase the quality of the process, and increase employee commitment to the final decision. c. Facilitation and support - This involves helping employees deal with the fear and anxiety associated with the change effort. This help includes employee counseling, therapy, new skills training, or a short paid leave of absence. d. Negotiation - This involves exchanging something of value for an agreement to lessen the resistance to the change effort. This resistance technique is quite useful when the resistance comes from a powerful source. e. Manipulation and co-optation - This refers to covert attempts to influence others about the change. It involves distorting facts to make the change appear more attractive. f. Coercion - This involves the use of direct threats or force against the resisters.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 12.4: Explain how to manage change.

Classification: Concept 87) ________ refers to the ability to combine ideas in a unique way or to make unusual associations between ideas.

A) Innovation B) Alteration C) Creativity D) Change Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.5: Compare different types of innovation.; LO 12.6: Describe how managers can stimulate innovation.

Classification: Concept

24 Copyright © 2025 Pearson Education, Inc.

88) ________ is the process of taking a creative idea and turning it into a useful product or work method.

A) Innovation B) Inspiration C) Creativity D) Ingenuity Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.5: Compare different types of innovation.; LO 12.6: Describe how managers can stimulate innovation.

Classification: Concept 89) ________ is innovation that creates a market where one did not exist before.

A) Breakthrough innovation B) Sustaining innovation C) Disruptive innovation D) Creativity Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 12.5: Compare different types of innovation.

Classification: Concept 90) Most innovation in business is ________ because businesses want to get better at what they do.

A) breakthrough innovation B) creative intelligence C) disruptive innovation D) sustaining innovation Answer: D Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 12.5: Compare different types of innovation.

Classification: Concept 91) ________ creates a market where one did not exist before.

A) Breakthrough innovation B) Sustaining innovation C) Disruptive innovation D) Creativity Answer: A Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 12.5: Compare different types of innovation.

Classification: Concept 25 Copyright © 2025 Pearson Education, Inc.

92) Which of the following is NOT an example of an established business and the disruptive innovation that made the established business obsolete?

A) Encyclopedias and Wikipedia B) Typewriters and the IBM PC C) Yellow pages and Google D) Restaurants and DoorDash Answer: D Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 12.5: Compare different types of innovation.

Classification: Concept 93) ________ consists of small and incremental changes in established products rather than dramatic breakthroughs.

A) Breakthrough innovation B) Sustaining innovation C) Disruptive innovation D) Creativity Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 12.5: Compare different types of innovation.

Classification: Concept 94) The online crowdfunding platform Kickstarter is an example of ________.

A) breakthrough innovation B) sustaining innovation C) disruptive innovation D) creativity Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 12.5: Compare different types of innovation.

Classification: Concept 95) Focusing on sustaining innovations can help a company stay on top of changing markets by making smaller bets or taking smaller risks more often.

Answer: TRUE Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 12.5: Compare different types of innovation.

Classification: Concept

26 Copyright © 2025 Pearson Education, Inc.

96) Disruptive innovations, especially at the beginning, typically apply to emerging or small markets and project lower profits than a firm's mainline products.

Answer: TRUE Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 12.5: Compare different types of innovation.

Classification: Concept 97) Creativity refers to the ability to combine ideas in a unique way or to make unusual associations between ideas.

Answer: TRUE Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 12.5: Compare different types of innovation.

Classification: Concept 98) Economist Milton Friedman used the term "creative destruction" more than 75 years ago to describe how capitalism builds on processes that destroy old technologies but replaces them with new and better ones.

Answer: FALSE Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 12.5: Compare different types of innovation.

Classification: Concept 99) Most innovation in business is disruptive innovation because businesses want to get better at what they do.

Answer: FALSE Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 12.5: Compare different types of innovation.

Classification: Concept

27 Copyright © 2025 Pearson Education, Inc.

100) Explain why large organizations are less likely to create disruptive innovations.

Answer: Large organizations create rules and regulations to standardize operations. They create multiple departments with defined areas of responsibility. And they create socialization processes–like new-employee orientations and corporate handbooks-that convey to employees "the way we do things around here." The result is that these successful organizations establish entrenched cultures and values that, on one hand, guide employees; but on the other hand, also act as constraints on change. New ideas for products or services that differ significantly from the status quo are a threat to the established power structure within large companies. Successful organizations focus on what they do best. They repeat what has succeeded in the past and they put their resources into the ventures that have the highest probability of generating maximum profits. Small markets, which typically describe those applicable to early disruptive innovations, don't fit with the growth needs of large organizations. More importantly, large organizations have distinct cultures and values that define their capabilities and limit their ability to move into new products or markets. Disruptive innovations, especially at the beginning, typically apply to emerging or small markets and project lower profits than a firm's mainline products. And their novelty has little or no appeal to the organization's most profitable customers.

Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 12.5: Compare different types of innovation.

Classification: Concept 101) Disruptive innovation describes ________.

A) innovations in products, services, or processes that radically change an industry's rules of the game B) the introduction of significant improvements in existing products or services C) disruptions in the economy that require new laws or regulations D) breakthroughs in research that lead to new medical procedures Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.6: Describe how managers can stimulate innovation.

Classification: Concept 102) Which one of the following would be considered a disruptive innovation?

A) A new fuel source is developed for automobiles that emits no carbon.

B) A company learns how to harness the tides to make electricity.

C) Humans develop the capability of communicating telepathically.

D) All of these are examples of disruptive innovation.

Answer: D Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj.: LO 12.6: Describe how managers can stimulate innovation.

Classification: Application

28 Copyright © 2025 Pearson Education, Inc.

103) Which one of the following would be considered a sustaining innovation?

A) Batteries for electric cars have a range of 500 miles on one charge.

B) The steam engine makes travel by rail possible.

C) Robots are trained as combat soldiers.

D) Chips embedded into the brain provide access to entire libraries.

Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 12.6: Describe how managers can stimulate innovation.

Classification: Application 104) Which of the following is an example of a cultural variable that fosters innovation?

A) Abundant resources B) Low external controls C) Low specialization D) High job security Answer: B Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 12.6: Describe how managers can stimulate innovation.

Classification: Concept 105) When a member of her team offers an "off-the-wall" solution to a team problem, Martina has to contend with which cultural variable?

A) Tolerance of conflict B) Tolerance of risk C) Tolerance of the impractical D) Focus on ends Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 12.6: Describe how managers can stimulate innovation.

Classification: Application 106) Which of the following is a structural variable that supports innovation?

A) Work and nonwork support B) Tolerance of conflict C) Focus on ends D) High job security Answer: A Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 12.6: Describe how managers can stimulate innovation.

Classification: Concept

29 Copyright © 2025 Pearson Education, Inc.

107) An innovative culture is likely to have ________.

A) high external controls B) low tolerance of risks C) closed-system focus D) tolerance of conflict Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.6: Describe how managers can stimulate innovation.

Classification: Concept 108) Edwin would like to increase the level of creativity and innovation in his department. One step he could take would be to ________.

A) decrease external control B) decrease diversity of opinions C) reduce resources D) resolve conflict Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 12.6: Describe how managers can stimulate innovation.

Classification: Application 109) Which of the following structural variables is NOT supportive of organizational innovation?

A) Minimal time pressure B) High job security C) High interunit communication D) Abundant resources Answer: B Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 12.6: Describe how managers can stimulate innovation.

Classification: Concept 110) Belinda's team works well when given "big picture" goals and allowed to develop ideas without detailed explanations or guidance. This would indicate Belinda's team is ________.

A) tolerant of conflict B) an open-system focus team C) tolerant of risk D) accepting of ambiguity Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 12.6: Describe how managers can stimulate innovation.

Classification: Application 30 Copyright © 2025 Pearson Education, Inc.

111) ________ actively and enthusiastically support new ideas, build support, overcome resistance, and ensure that innovations are implemented.

A) Idea champions B) Idea developers C) Idea generators D) Idea screeners Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.6: Describe how managers can stimulate innovation.

Classification: Concept 112) Most idea champions ________.

A) have extremely high self-confidence B) are lethargic C) avoid risks D) are relenting Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.6: Describe how managers can stimulate innovation.

Classification: Concept 113) Design thinking can provide a process for ________.

A) brainstorming B) coming up with things that don't exist C) experimenting with customers D) connecting idea champions in the design department with marketing experts Answer: B Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 12.6: Describe how managers can stimulate innovation.

Classification: Concept 114) The term skunk works refers to ________.

A) a project gone bad B) an entrepreneurial operation funded by a large organization C) a production facility that no longer meets the needs of the organization D) an off-balance-sheet, secret research facility engaged in questionable activities Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 12.6: Describe how managers can stimulate innovation.

Classification: Concept

31 Copyright © 2025 Pearson Education, Inc.

115) Creativity refers to the ability to combine ideas in a unique way or to make unusual associations between ideas.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.6: Describe how managers can stimulate innovation.

Classification: Concept 116) Design thinking means to consider how a product or process might be redesigned.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 12.6: Describe how managers can stimulate innovation.

Classification: Concept 117) List a few cultural characteristics that an innovative organization possesses.

Answer: An innovative organization has the following cultural characteristics: a. Accepts ambiguity - Too much emphasis on objectivity and specificity constrains creativity. b. Tolerates the impractical - Individuals who offer impractical, even foolish, answers to what-if questions are not stifled. What at first seems impractical might lead to innovative solutions. c. Keeps external controls minimal - Rules, regulations, policies, and similar organizational controls are kept to a minimum. d. Tolerates risk - Employees are encouraged to experiment without fear of consequences should they fail. Mistakes are treated as learning opportunities. Employees do not fear to put forth new ideas. e. Tolerates conflict - Diversity of opinions is encouraged. Harmony and agreement between individuals or units are not assumed to be evidence of high performance. f. Focuses on ends rather than means - Goals are made clear, and individuals are encouraged to consider alternative routes toward meeting the goals. Focusing on ends suggests that several right answers might be possible for any given problem. g. Uses an open-system focus - Managers closely monitor the environment and respond to changes as they occur. h. Provides positive feedback - Managers provide positive feedback, encouragement, and support so employees feel that their creative ideas receive attention. i. Exhibits empowering leadership - A leader of an innovative organization lets his subordinates know that the work they do is significant. S/he provides organizational members the opportunity to participate in decision making. S/he shows them that s/he is confident that they can achieve high performance levels and outcomes. This has a positive influence on creativity.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 12.6: Describe how managers can stimulate innovation.

Classification: Concept

32 Copyright © 2025 Pearson Education, Inc.

Management, 16e (Robbins) Chapter 13 Understanding and Managing Individual Behavior 1) Individual behavior in organizations includes ________.

A) strategies, norms, and roles B) attitudes, learning, and motivation C) structure, culture, and team building D) policies and procedures Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.1: Identify the focus and goals of individual behavior within organizations.

Classification: Concept 2) The study of group behavior includes the study of ________.

A) perception, motivation, and learning B) attitudes and personality C) norms, roles, and leadership D) organization structure and culture Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.1: Identify the focus and goals of individual behavior within organizations.

Classification: Concept 3) The goals of OB are to ________.

A) design, produce, and market products desired by consumers B) explain, predict, and influence behavior C) recruit, select, and retain qualified employees D) identify social, environmental, and financial issues Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.1: Identify the focus and goals of individual behavior within organizations.

Classification: Concept

1 Copyright © 2025 Pearson Education, Inc.

4) ________ is a performance measure of both the efficiency and effectiveness of employees.

A) Employee productivity B) Organizational citizenship behavior C) Job satisfaction D) Employee morale Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.1: Identify the focus and goals of individual behavior within organizations.

Classification: Concept 5) ________ is defined as the failure to report to work.

A) Turnover B) Tardiness C) Absenteeism D) Negligence Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.1: Identify the focus and goals of individual behavior within organizations.

Classification: Concept 6) Andrew has been tracking how many positions he has to fill, and how many times he fills the same position. He is concerned that so many people are leaving his organization. Andrew is concerned about ________.

A) absenteeism B) employee attitudes C) turnover D) productivity Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 13.1: Identify the focus and goals of individual behavior within organizations.

Classification: Application

2 Copyright © 2025 Pearson Education, Inc.

7) Which one of the following statements is true for organizational citizenship behavior (OCB)?

A) OCB is a performance measure of efficiency.

B) The requirements of OCB are spelled out in employee job profiles.

C) OCB is the behavior leading to permanent withdrawal from an organization.

D) OCB is discretionary behavior which promotes the effective functioning of the organization.

Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.1: Identify the focus and goals of individual behavior within organizations.

Classification: Concept 8) Which of the following is NOT one of the reasons to be concerned with employee job satisfaction?

A) Satisfied employees have less absenteeism.

B) Satisfied employees perform at a higher level.

C) Satisfied employees are less likely to look for another job and leave the organization.

D) Satisfied employees tend to socialize more with one another.

Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.1: Identify the focus and goals of individual behavior within organizations.

Classification: Application 9) Organizational behavior is concerned only with group interactions.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.1: Identify the focus and goals of individual behavior within organizations.

Classification: Concept 10) The goals of organizational behavior can be stated as: If you can explain it, you can predict it. If you can predict it, you can influence it.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.1: Identify the focus and goals of individual behavior within organizations.

Classification: Concept

3 Copyright © 2025 Pearson Education, Inc.

11) Organizational citizenship behavior is discretionary behavior that is not part of an employee's formal job requirements.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.1: Identify the focus and goals of individual behavior within organizations.

Classification: Concept 12) Organizational citizenship behavior impacts the effective functioning of the entire organization.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.1: Identify the focus and goals of individual behavior within organizations.

Classification: Concept 13) What is organizational behavior? How can the study of organizational behavior help managers?

Answer: Organizational behavior is a field of study that is concerned specifically with the actions of people at work. It focuses primarily on two areas, individual behavior and group behavior. Group behavior includes norms, roles, team building, leadership, and conflict. The goals of organizational behavior are to explain, predict, and influence behavior. Managers need to be able to explain why employees engage in some behaviors rather than others, predict how employees will respond to various actions the manager might take, and influence how employees behave.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 13.1: Identify the focus and goals of individual behavior within organizations.

Classification: Concept 14) The three components that make up an attitude are ________.

A) cognitive, affective, and behavioral B) active, behavioral, and adjustable C) emotional, creative, and environmental D) intentional, reactive, and adjustable Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept

4 Copyright © 2025 Pearson Education, Inc.

15) The component of attitude that includes beliefs and opinions is the ________ component.

A) cognitive B) behavioral C) affective D) mental Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 16) Which component of attitude is reflected in the sentence, "This is the best way to get to our destination"?

A) Cognitive B) Behavioral C) Emotive D) Affective Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Application 17) The ________ component of attitude is based on emotions.

A) cognitive B) behavioral C) affective D) spiritual Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 18) In the statement, "The highway is very busy at 5 p.m., and is scary to drive on, so I'll wait until 7 p.m. to go home," the word "scary" represents which component of an attitude?

A) Cognitive B) Behavioral C) Practical D) Affective Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Application

5 Copyright © 2025 Pearson Education, Inc.

19) When an individual chooses to act in a certain way, s/he is demonstrating the ________ component of attitude.

A) cognitive B) behavioral C) affective D) practices Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 20) In the statement, "The highway is very busy at 5 p.m. and is scary to drive on, so I'll wait until 7 p.m. to go home," the phrase, "so I'll wait until 7 p.m. to go home," represents which component of an attitude?

A) Cognitive B) Behavioral C) Emotive D) Affective Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Application 21) The degree to which an employee identifies with his or her job and/or actively participates in it refers to the employee's ________.

A) job involvement B) organizational citizenship behavior C) attitude D) job satisfaction Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 22) The Hawthorne Studies proved that ________.

A) there is a correlation between job satisfaction and productivity B) a high level of job satisfaction is unrelated to production C) a high level of productivity causes higher job satisfaction D) there is no relationship between job satisfaction and productivity Answer: A Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 6 Copyright © 2025 Pearson Education, Inc.

23) Bryan has heard that one of his best subordinates is not happy with his job and is thinking of leaving the company. Which one of the following should Bryan do first?

A) Offer the employee a raise.

B) Find out which work incentive the employee values most.

C) Reduce the employee's workload.

D) Hint at a promotion in the future if the employee stays.

Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Application 24) Brianne has been coming in late and producing less recently, obviously dissatisfied with her job. Her supervisor would like to know how to deal with these behaviors so they don't spread to other employees. The supervisor's wisest course of action would be to ________.

A) discipline her for being late B) send her to HR for employee counseling C) ignore them and hope the situation resolves itself D) discover the source of her dissatisfaction Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Application 25) The degree to which an employee identifies with a particular organization and its goals and wishes to maintain membership in the organization is the employee's ________.

A) job involvement B) organizational commitment C) job satisfaction D) organizational citizenship Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept

7 Copyright © 2025 Pearson Education, Inc.

26) Which one of the following is true for satisfied employees with high organizational commitment?

A) They have lower rates of turnover and absenteeism.

B) They have higher rates of voluntary turnover.

C) They have higher rates of cognitive dissonance.

D) They have lower levels of job involvement.

Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 27) ________ is employees' general belief that their organization values their contribution and cares about their well-being.

A) Job involvement B) Organizational commitment C) Perceived organizational support D) Organizational citizenship Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 28) "Cody has retired on the job" is an expression used to describe ________.

A) a person approaching full retirement age B) an employee who is disengaged C) someone who draws retirement income while continuing to work D) a person on extended medical leave Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Application

8 Copyright © 2025 Pearson Education, Inc.

29) Mary dislikes having to convince prospective customers to buy products that she believes are inferior to others in the market. However, she has sales targets for all products, superior or otherwise, that she must meet in order to receive her commission. Although Mary tries to meet the target sales for all products, she is torn between her beliefs and the actions she must take.

This inconsistency or incompatibility is known as ________.

A) negative feedback B) difficult objectives C) cognitive dissonance D) management by objectives Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Application 30) The cognitive dissonance theory proposes that the intensity of the desire to reduce dissonance is determined by ________.

A) importance, influence, and rewards B) resources, commitment, and organizational structure C) stability, position, and power D) awareness, status, and punishments Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 31) SML, a specialty chemical supplier based in Indonesia, used ________ to track employee attitudes, specifically employee happiness and stress levels, and to identify opportunities to boost employee morale.

A) employee surveys B) morale metrics C) big data D) an AI tool Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 32) Research indicates that satisfied employees have lower levels of turnover, while dissatisfied employees have higher levels of turnover.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 9 Copyright © 2025 Pearson Education, Inc.

33) Perceived organizational support is the degree to which an employee identifies with a particular organization and its goals.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 34) Low levels of perceived organizational support lead to lower turnover.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 35) The cognitive component of an attitude refers to the beliefs, opinions, knowledge, or information held by a person.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 36) Job satisfaction is influenced by the employee's income.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 37) Satisfaction with one's job does not necessarily lead to lower absenteeism.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 38) Individuals who experience low job satisfaction are more likely to leave their jobs than individuals with high job satisfaction.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept

10 Copyright © 2025 Pearson Education, Inc.

39) An effective way to increase the job satisfaction of customer service representatives is to increase the level of satisfaction among customers.

Answer: TRUE Diff: 2 AACSB: Reflective thinking; Analytical thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 40) Beyond measuring employee attitudes, the use of AI provides an opportunity to improve employee attitudes by changing work processes and automating tasks that workers may deem uninteresting.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 41) Job satisfaction is a better predictor of voluntary turnover than organizational commitment.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 42) Employees with a high level of job involvement strongly identify with and really care about the kind of work they do.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 43) Highly engaged employees tend to have higher absenteeism but work harder when they are present.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 44) Cognitive dissonance is any incompatibility or inconsistency between attitudes or between behavior and attitudes.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 11 Copyright © 2025 Pearson Education, Inc.

45) Define attitudes and explain the three components of attitude.

Answer: Attitudes are evaluative statements — either favorable or unfavorable — concerning objects, people, or events. They reflect how an individual feels about something. An attitude is made up of three components: cognition, affect, and behavior. The cognitive component of an attitude refers to the beliefs, opinions, knowledge, or information held by a person (for instance, the belief that "discrimination is wrong"). The affective component of an attitude is the emotional or feeling part of an attitude. Using our example, this component would be reflected by the statement "I don't like Pat because he discriminates against minorities." Finally, affect can lead to behavioral outcomes. The behavioral component of an attitude refers to an intention to behave in a certain way toward someone or something.

Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Application 46) Explain the three components of attitude. Give an example that incorporates all three elements.

Answer: An attitude is made up of cognitive, affective, and behavioral components. The cognitive component refers to the beliefs, opinions, knowledge, or information held by a person.

The affective component is the emotional or feeling part. The behavioral component refers to an intention to behave in a certain way toward someone or something.

[Students' examples will vary but must include all three components.] For example, Mary may believe the use of profanity has no place in business (cognitive). John tends to use profanity profusely so Mary dislikes John (affective). As a result, Mary avoids John (behavioral).

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept

12 Copyright © 2025 Pearson Education, Inc.

47) Explain cognitive dissonance theory in brief.

Answer: Cognitive dissonance theory sought to explain the relationship between attitudes and behavior. Cognitive dissonance is any incompatibility or inconsistency between attitudes or between behavior and attitudes. The theory argued that inconsistency is uncomfortable and that individuals will try to reduce the discomfort and thus, the dissonance. How people cope with cognitive dissonance depends on several factors. The theory proposed that how hard we'll try to reduce dissonance is determined by three things: (1) the importance of the factors creating the dissonance, (2) the degree of influence the individual believes he or she has over those factors, and (3) the rewards that may be involved in dissonance.

If the factors creating the dissonance are relatively unimportant, the pressure to correct the inconsistency will be low. However, if those factors are important, individuals may change their behavior, conclude that the dissonant behavior isn't so important, change their attitude, or identify compatible factors that outweigh the dissonant ones.

How much influence individuals believe they have over the factors also affects their reaction to the dissonance. If they perceive the dissonance is something about which they have no choice, they won't be receptive to attitude change or feel a need to do so. If, for example, the dissonanceproducing behavior was required as a result of a manager's order, the pressure to reduce dissonance would be less than if the behavior had been performed voluntarily. Although dissonance exists, it can be rationalized and justified by the need to follow the manager's ordersthat is, the person had no choice or control.

Finally, rewards also influence the degree to which individuals are motivated to reduce dissonance. Coupling high dissonance with high rewards tends to reduce the discomfort by motivating the individual to believe that there is consistency.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 13.2: Explain the role that attitudes play in job performance.

Classification: Concept 48) In the Myers-Briggs Type Indicator (MBTI®), "sensing" personality types are those who ________.

A) like solving new problems and dislike doing the same thing over and over again B) use reason and logic to handle problems C) have a high need for closure and show patience with routine details D) see the big picture and dislike routine Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept

13 Copyright © 2025 Pearson Education, Inc.

49) As a manager, if you prefer to have a harmonious work environment and dislike reprimanding your subordinates, you will probably score high on the ________ aspect of the MBTI®.

A) perception B) thinking C) intuition D) feeling Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 50) Which one of the following statements is true according to the MBTI®?

A) Introverted types are practical and prefer routine and order.

B) Feeling types use reason and logic to handle problems.

C) Perceiving types are rigid and structured.

D) Judging types want control and prefer their world to be ordered.

Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 51) If your boss could be described as flexible, adaptable, and tolerant, he or she would probably score high on which one of the following aspects of the MBTI®?

A) Extraversion B) Sensing C) Feeling D) Perceiving Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Application 52) If you are a good planner and purposeful, you would probably score high on the ________ trait of MBTI®.

A) thinking B) perceiving C) introversion D) judging Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 14 Copyright © 2025 Pearson Education, Inc.

53) Sandy is very good at precise work. She does not tire of repetitive work as easily as some of the others. However, when faced with a new problem that requires an innovative solution, her performance is not satisfactory. Sandy's personality is likely to be classified as a(n) ________ type.

A) sensing B) feeling C) introvert D) intuitive Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Application 54) Alan's temperament is not well-suited to being a researcher. He tends to dislike doing the same thing twice and has no patience to sort out information step-by-step. As a result, he often jumps to conclusions. Alan is most likely a(n) ________ type of personality.

A) sensing B) feeling C) introversion D) intuition Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Application 55) George gets along well with most people in the team. He is good at his job but needs to be reassured once in a while. Another of George's traits is that he is always trying to keep everyone happy. George can be described as a(n) ________ personality.

A) sensing B) feeling C) introverted D) intuitive Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Application

15 Copyright © 2025 Pearson Education, Inc.

56) Rashad is purposeful and an excellent planner. One thing that his team admires him for is his ability to sift through a great deal of information to extract precisely what is needed for a job at hand. He is also a quick decision maker. Which one of the following personality types does Rashad fit into?

A) Sensing B) Perceptive C) Extraverted D) Judging Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Application 57) The Big Five Model of personality includes which of the following dimensions?

A) Intuition B) Judgment C) Perception D) Extraversion Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 58) In the Big Five Model of personality, ________ refers to the degree to which someone is good-natured, cooperative, and trusting.

A) extraversion B) agreeableness C) conscientiousness D) emotional stability Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept

16 Copyright © 2025 Pearson Education, Inc.

59) In the Big Five Model of personality, conscientiousness refers to ________.

A) the degree to which someone is calm, enthusiastic, and secure (positive) or tense, nervous, depressed, and insecure (negative) B) the degree to which someone is sociable, talkative, assertive, and comfortable in relationships with others C) the degree to which someone is reliable, responsible, dependable, persistent, and achievement-oriented D) the degree of influence the individual believes he or she has over certain factors Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 60) According to the Big Five Model of personality, a person who has a wide range of interests and is imaginative, fascinated with novelty, artistically sensitive, and intellectual is described as ________.

A) conscientious B) extraverted C) emotionally stable D) open to experience Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 61) Careena enjoys many genres of music and art. She has visited several European countries. It is very likely Careena is high in ________.

A) emotional stability B) openness to experience C) conscientiousness D) agreeableness Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Application

17 Copyright © 2025 Pearson Education, Inc.

62) It is very difficult to ruffle Doreen's feathers. She has been called a rock, steadfast, slow to anger, calm in the middle of the storm. Doreen is high in ________.

A) emotional stability B) sensing C) conscientiousness D) thinking Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Application 63) A manager makes decisions very quickly and requires little information for making the decisions. Which of the following is a likely reason for this?

A) The manager has low self-esteem.

B) The manager is high in self-management.

C) The manager is high in emotional stability.

D) The manager is high in risk-taking.

Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 64) When coworkers need help, they ask Edwina. She seems to know more about the job than everyone. She graduated with high honors from college and continues to learn all she can about a variety of interests. Edwina would score high in ________.

A) openness to experience B) perception C) thinking D) conscientiousness Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Application

18 Copyright © 2025 Pearson Education, Inc.

65) Edward is the cheerleader type, always smiling, never makes an unkind statement, always looks for the good in people and situations. Edward is high in ________.

A) emotional stability B) feeling C) agreeableness D) perception Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Application 66) If you believe that you control your own destiny, which one of the following personality traits are you likely to possess?

A) External locus of control B) Risk aversion C) High self-esteem D) Internal locus of control Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 67) A person who believes that what happens to him is due to luck or chance is said to have a(n) ________.

A) internal locus of control B) Machiavellian personality C) external locus of control D) self-monitoring personality Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 68) According to research, employees who have a high internal locus of control ________.

A) exhibit more satisfaction with their jobs than those who have an external locus of control B) are more alienated from their work setting than those who have an external locus of control C) are less involved in their jobs as compared to those who have an external locus of control D) blame their bosses for poor performance more often than those who have an external locus of control Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 19 Copyright © 2025 Pearson Education, Inc.

69) The words "I am the master of my fate. I am the captain of my soul" are consistent with someone who ________.

A) is high in openness to experience B) has an internal locus of control C) has an external locus of control D) has low self-esteem Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Application 70) Peter, an assistant manager, exhibits a distinct lack of emotional involvement with his colleagues and subordinates. His entire focus is on achieving the goals he sets, no matter what course he has to take to get there. These traits lead an observer to conclude that Peter ________.

A) is high in Machiavellianism B) has low self-esteem C) is high in self-monitoring D) has an external locus of control Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Application 71) An individual who is high in ________ is pragmatic, maintains emotional distance, and believes that ends can justify means.

A) self-esteem B) Machiavellianism C) self-monitoring D) risk taking Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept

20 Copyright © 2025 Pearson Education, Inc.

72) Which one of the following is true of a person who believes that "the ends justify the means"?

A) They are likely to be low on self-confidence.

B) They are likely to be high in Machiavellianism.

C) They are likely to have an external locus of control.

D) They are likely to be risk averse.

Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 73) Though clearly capable, Martina does not seem very confident of herself. She is always unsure of whether she can handle assignments that are difficult and as a result ends up choosing jobs that are fairly straightforward and involve routine work. She is also susceptible to evaluations from other people. Martina seems to have ________.

A) high cognitive dissonance B) a high Machiavellianism score C) low self-monitoring D) low self-esteem Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Application 74) If you like yourself, then you would be described as having ________.

A) an internal locus of control B) a high Machiavellianism score C) high self-esteem D) an external locus of control Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 75) People with high self-esteem ________.

A) are more prone to conform to the beliefs of those they respect B) are more likely to seek approval from others C) are more likely to take unpopular stands D) are more susceptible to external influence Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 21 Copyright © 2025 Pearson Education, Inc.

76) ________ is a personality trait that measures an individual's ability to adjust his or her behavior according to external situational factors.

A) Self-awareness B) Self-esteem C) Self-monitoring D) Self-management Answer: C Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 77) Research suggests that employees with an external locus of control ________.

A) possess low self-esteem B) possess high self-esteem C) are less satisfied with their jobs D) are high in risk-taking ability Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 78) Sarah, the floor supervisor, seems to be a different person depending on whom she is with and what the situation demands. She has the ability to adjust her behavior as and when required.

This indicates that she ________.

A) has low self-esteem B) is low on Machiavellianism C) has a high need for affiliation D) is high in self-monitoring Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Application

22 Copyright © 2025 Pearson Education, Inc.

79) Kevin is a whirlwind as a research and development supervisor. His colleagues are surprised that even though he makes decisions very quickly and always with less information than others, his decisions are as good as anybody else's. This information implies that Kevin has ________.

A) high intuition B) high Machiavellianism C) high risk-taking ability D) low cognitive dissonance Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Application 80) A person with a grandiose sense of self-importance who is arrogant and requires an excessive amount of admiration is a ________.

A) narcissist B) psychopath C) Machiavellian D) sociopath Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 81) People who identify opportunities, show initiative, take action, and persevere until meaningful change occurs are said to have ________ personalities.

A) proactive B) self-aware C) reactive D) agreeable Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept

23 Copyright © 2025 Pearson Education, Inc.

82) The rest of the world sees problems; Martin sees opportunity and believes in his ability to capitalize on the opportunity. He made money in real estate and lost it when the recession hit.

But soon he found another way to earn a living and became wealthy again. Martin is high in ________.

A) self-esteem B) Machiavellianism C) positive psychological capital D) external locus of control Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Application 83) Emotional intelligence has been shown to be ________ related to job performance ________.

A) negatively; at all levels B) negatively; in middle management only C) positively; only in mechanistic organizations D) positively; at all levels Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 84) The ability to sense how others are feeling is known as ________.

A) agreeableness B) empathy C) sympathy D) relationship management Answer: B Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 85) Holland's theory proposes that satisfaction is highest and turnover lowest when ________.

A) the locus of control is internal B) an employee is social and realistic C) personality and occupation are compatible D) an employee can adjust behavior to external factors Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 24 Copyright © 2025 Pearson Education, Inc.

86) Which of the following is a key point of Holland's theory?

A) There are no intrinsic differences in personality among individuals.

B) All jobs are relatively the same, it is personality types that differ.

C) People in job environments compatible with their personality types should be more satisfied.

D) Employee turnover is highest when personality and occupation are compatible.

Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 87) Bridget prefers rule-regulated, orderly, and unambiguous activities. She doesn't have a lot of imagination but could be described as conforming and efficient. Which one of the following describes Bridget's personality?

A) Anti-social B) Dull C) Conservative D) Conventional Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Application 88) There is ample evidence to support the validity of the Myers-Briggs Type Indicator as a measure of personality.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 89) Extraversion is the degree to which someone is sociable, talkative, assertive, and comfortable in relationships with others.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 90) In the Big Five Model, emotional security was found to be positively related to job performance.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 25 Copyright © 2025 Pearson Education, Inc.

91) Understanding the personality traits assessed by the MBTI® helps managers understand the way people interact and solve problems.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 92) The one trait most likely to predict job performance is emotional stability.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 93) A person who rates as being high in Machiavellianism would use any means to accomplish a task.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 94) Individuals with low self-esteem are more susceptible to external influence than are people with high self-esteem.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 95) High self-monitors can't adjust their behavior and there is high behavioral consistency between who they are and what they do.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 96) A country's culture has no influence on the dominant personality characteristics of its people.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept

26 Copyright © 2025 Pearson Education, Inc.

97) Matching personalities of employees with the requirements of particular jobs leads to organizational success.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 98) Describe the Big Five Model. List and discuss the five personality traits that are based on the Big Five Model of personality.

Answer: In recent years, research has shown that the five basic personality dimensions of the Big Five Model underlie all others and encompass most of the significant variation in human personality. The Big Five provides more than just a personality framework. Research has shown that important relationships exist between these personality dimensions and job performance. a. Extraversion - the degree to which someone is sociable, talkative, and assertive. b. Agreeableness - the degree to which someone is good-natured, cooperative, and trusting. c. Conscientiousness - the degree to which someone is responsible, dependable, persistent, and achievement oriented. d. Emotional stability - the degree to which someone is calm, enthusiastic, and secure (positive) or tense, nervous, depressed, and insecure (negative). e. Openness to experience - the degree to which someone is imaginative, artistically sensitive, and intellectual.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept

27 Copyright © 2025 Pearson Education, Inc.

99) In a short essay, list and discuss five singular personality traits (not the Big Five) that have proven to be powerful in explaining individual behavior in organizations.

Answer: a. People with an internal locus of control believe that they control their own fate. Those with an external locus of control see themselves as pawns, believing that what happens to them in their lives is due to luck or chance. Research evidence indicates that employees who rate high on externality are less satisfied with their jobs, more alienated from the work setting, and less involved in their jobs than are those who rate high on internality. b. Proactive personalities identify opportunities, show initiative, take action, and persevere until meaningful change occurs, unlike those who generally react to situations. Proactive individuals have many desirable behaviors that organizations covet. They have higher levels of job performance, tend to be satisfied with their jobs, and don't need much oversight. c. People differ in the degree to which they like themselves. This trait, called self-esteem is directly related to expectations for success. High SEs believe they possess the ability to succeed at work. High SEs will take more risks in job selection and are more likely to choose unconventional jobs than are people with low SE. High SEs are more satisfied with their jobs. d. High self-monitors are very sensitive to external cues and can behave differently in different situations. They are capable of presenting striking contradictions between their public persona and their private selves. Low self-monitors cannot adjust their behavior. They tend to display their true dispositions and attitudes in every situation, and there's high behavioral consistency between who they are and what they do. e. People differ in their willingness to take chances. Differences in the propensity to assume risk have been shown to affect how long it takes managers to make a decision and how much information they require before making their choice. To maximize organizational effectiveness, managers should try to align employee risk-taking propensity with specific job demands.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 13.3: Describe different personality theories.

Classification: Concept 100) ________ is the process of organizing and interpreting sensory impressions to give meaning to the environment.

A) Attribution B) Selection C) Cognition D) Perception Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Concept

28 Copyright © 2025 Pearson Education, Inc.

101) ________ theory explains how we judge people differently depending on what meaning we ascribe to a given behavior.

A) Perception B) Behavior C) Attribution D) Stereotype Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Concept 102) If everyone who's faced with a similar situation responds in the same way, we can say the behavior shows ________.

A) reliability B) consistency C) consensus D) internal attribution Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Concept 103) People say she will be late for her own funeral. It doesn't matter whether it's a team meeting or a meeting with her son's teacher, Malinda will be late. But she always has a plausible reason, one that is never her fault. Malinda's behavior shows ________.

A) high distinctiveness B) low distinctiveness C) high consensus D) low consensus Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Application

29 Copyright © 2025 Pearson Education, Inc.

104) People in the accounting department generally arrive 15 minutes early. This situation shows ________.

A) high consensus B) low consensus C) high consistency D) low consistency Answer: A Diff: 3 AACSB: Analytical thinking; Application of knowledge Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Application 105) Underestimating the influence of external factors and overestimating the influence of internal factors when making judgments about others is known as the ________.

A) fundamental attribution error B) self-serving bias C) locus of control error D) halo effect Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Concept 106) "He could do it if he wanted to. He just doesn't like that part of his job, that's all." A statement like this from a supervisor indicates ________.

A) locus of control error B) the horn effect C) a halo effect D) a fundamental attribution error Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Application

30 Copyright © 2025 Pearson Education, Inc.

107) ________ is the tendency for individuals to attribute their own successes to internal factors such as ability or effort while putting the blame for personal failure on external factors such as luck.

A) Locus of control error B) Stereotyping C) Fundamental attribution error D) Self-serving bias Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Concept 108) In ________, the observer's perception of others is influenced more by the observer's own characteristics than by those of the person observed.

A) stereotyping B) self-serving bias C) assumed similarity D) the halo effect Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Concept 109) James, a new manager, is very hard-working. He believes that people who are hardworking will always make sure that the work gets done on time. Even when he is out of the office, he supposes that his subordinates are working diligently because he works diligently most of the time. James's perceptions of his employees are based on ________.

A) stereotyping B) selective perception C) halo effect D) assumed similarity Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Application

31 Copyright © 2025 Pearson Education, Inc.

110) Yiling prefers one-page memos with only the main points of the issue. As a manager, she has limited amounts of time to read about internal problems. So when she prepares memos for her boss, she provides a brief outline of the situation to spare her boss the agony of having to read the boring details. Yiling has succumbed to ________.

A) the liking effect B) assumed similarity C) the halo effect D) stereotyping Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Application 111) When people judge someone on the basis of their perception of a group to which that person belongs, they are using the shortcut called ________.

A) stereotyping B) self-serving bias C) assumed similarity D) the halo effect Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Concept 112) "Everyone knows Plutonians are sneaky little wretches who will steal you blind if you aren't careful. Polly is a Plutonian. Therefore, Polly is a thief." This line of reasoning is typical of ________.

A) group association B) assumed similarity C) stereotyping D) the halo effect Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Application

32 Copyright © 2025 Pearson Education, Inc.

113) Bill, a manager at a consulting firm, has been keenly analyzing the performance of a new recruit who turns out to be extremely intelligent. He concludes that she will be a good manager in the future even though her interpersonal skills are not half as impressive. This conclusion on Bill's part seems to be the result of ________.

A) stereotyping B) selective perception C) the halo effect D) assumed similarity Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Application 114) By using ________, we form a general impression about a person based on only a single characteristic, such as intelligence or appearance.

A) stereotyping B) selectivity C) the halo effect D) assumed similarity Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Concept 115) During the interview Ken was so impressed with Barbie's knowledge of aesthetic engineering he offered her the job on the spot. Unfortunately her job performance did not meet his expectations. Ken may have fallen victim to ________.

A) selective perception B) stereotyping C) assumed similarity D) the halo effect Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Application 116) There is no reality beyond perception; we interpret what we see and call it reality.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Concept

33 Copyright © 2025 Pearson Education, Inc.

117) The age of the perceiver can influence the perceiver's perceptions.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Concept 118) Consensus refers to whether an individual displays different behaviors in different situations.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Concept 119) When we make judgments about the behavior of other people, we tend to underestimate the influence of external factors and to overestimate the influence of internal factors. This tendency is called the self-serving bias.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Concept 120) "All attractive people are productive. Abigail is attractive; therefore, Abigail is productive."

This is an example of the halo effect.

Answer: FALSE Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Application

34 Copyright © 2025 Pearson Education, Inc.

121) In a short essay, list and discuss three shortcuts frequently used in judging others. Discuss the impact these shortcuts have on the management of employees.

Answer: Perceiving and interpreting people's behavior is a lot of work, so we use shortcuts to make the task more manageable. These techniques can be valuable when they let us make accurate interpretations quickly and provide valid data for making predictions. However, they aren't perfect. It's easy to judge others if we assume that they're similar to us. In assumed similarity, the observer's perception of others is influenced more by the observer's own characteristics than by those of the person observed. When we judge someone on the basis of our perception of a group (s)he is part of, stereotyping is the shortcut being used.

When individuals form a general impression about a person on the basis of a single characteristic, such as intelligence, sociability, or appearance, the halo effect is the influencing factor.

Managers need to recognize that their employees react to perceptions, not to reality. So whether a manager's appraisal of an employee is actually objective and unbiased or whether the organization's wage levels are among the highest in the community is less relevant than what employees perceive them to be. If individuals perceive appraisals to be biased or wage levels as low, they will behave as if those conditions actually exist. Employees organize and interpret what they see, so there is always the potential for perceptual distortion.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 13.4: Describe perception and factors that influence it.

Classification: Concept 122) Operant conditioning argues that ________.

A) behavior is learned through observation B) all behavior has unintended consequences C) behavior patterns are established in childhood D) behavior is a function of its consequences Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 13.5: Discuss learning theories and their relevance in shaping behavior.

Classification: Concept 123) ________ behavior is voluntary or learned behavior.

A) Reflexive B) Dissonant C) Operant D) Reactive Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.5: Discuss learning theories and their relevance in shaping behavior.

Classification: Concept

35 Copyright © 2025 Pearson Education, Inc.

124) Donna has just moved to the city from a small town and got a job as an assistant in a law firm. Not being very familiar with the way things work in the corporate world, she watches her colleagues closely and tries to learn from their mistakes and achievements. This can be described as ________.

A) motor reproduction B) positive reinforcement C) reflexive learning D) social learning Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.5: Discuss learning theories and their relevance in shaping behavior.

Classification: Application 125) The influence of models depends on how well an individual remembers the model's behavior. This refers to the individual's ________.

A) retention process B) motor reproduction process C) attentional process D) observational skills Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.5: Discuss learning theories and their relevance in shaping behavior.

Classification: Concept 126) After watching a behavior in a social learning situation, a person can demonstrate learning by performing the behavior. This is known as learning by ________.

A) retention B) motor reproduction C) operant conditioning D) reinforcement Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.5: Discuss learning theories and their relevance in shaping behavior.

Classification: Concept

36 Copyright © 2025 Pearson Education, Inc.

127) When a manager molds an individual's behavior by guiding his or her learning in graduated steps, he is using ________.

A) retention processes B) motor reproduction processes C) programmed learning D) shaping behavior Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.5: Discuss learning theories and their relevance in shaping behavior.

Classification: Concept 128) If an employee does not exhibit a desired behavior, a manager might use ________.

A) negative reinforcement to increase the recurrence of the behavior B) shaping behavior to guide the employee to learn the desired behavior C) positive reinforcement by reducing the threat of a punishment D) programmed learning to encourage positive results Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.5: Discuss learning theories and their relevance in shaping behavior.

Classification: Concept 129) "Any additional violations of company policy will result in escalating disciplinary action up to and including termination." This statement found on many corrective action forms, is an example of ________.

A) positive reinforcement B) negative reinforcement C) punishment D) extinction Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.5: Discuss learning theories and their relevance in shaping behavior.

Classification: Application

37 Copyright © 2025 Pearson Education, Inc.

130) She was only three but already had a temper. Her favorite outburst was to stomp her foot.

So her mother made her stomp and stomp and stomp until there was no more stomping left in her. This mother was using ________ to alter her daughter's behavior.

A) positive reinforcement B) negative reinforcement C) punishment D) extinction Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.5: Discuss learning theories and their relevance in shaping behavior.

Classification: Application 131) Eliminating any reinforcement that's maintaining an undesirable behavior is called ________.

A) elimination B) extinction C) punishment D) extraction Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.5: Discuss learning theories and their relevance in shaping behavior.

Classification: Concept 132) The toddler knew if he held his breath his parents would yield to his demands. But this time they returned to their newspapers and gave the child no further notice. These parents were engaging in ________.

A) positive reinforcement B) negative reinforcement C) punishment D) extinction Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 13.5: Discuss learning theories and their relevance in shaping behavior.

Classification: Application 133) Operant behavior is reflexive or unlearned behavior.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.5: Discuss learning theories and their relevance in shaping behavior.

Classification: Concept

38 Copyright © 2025 Pearson Education, Inc.

134) Operant conditioning happens when we take any sort of action.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.5: Discuss learning theories and their relevance in shaping behavior.

Classification: Concept 135) The influence that models have on an individual is determined by the amount of attention the model gives to the learner.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 13.5: Discuss learning theories and their relevance in shaping behavior.

Classification: Concept 136) Both positive and negative reinforcement result in learning.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 13.5: Discuss learning theories and their relevance in shaping behavior.

Classification: Concept 137) Define learning and explain the two learning theories that are relevant to understanding how and why individual behavior occurs.

Answer: Learning is any relatively permanent change in behavior that occurs as a result of experience. The two learning theories relevant to understanding how and why individual behavior occurs are operant conditioning and social learning.

Operant conditioning argues that behavior is a function of its consequences. People learn to behave to get something they want or to avoid something they don't want. Operant behavior describes voluntary, or learned, behavior in contrast to reflexive or unlearned behavior. The tendency to repeat learned behavior is influenced by the reinforcement or lack of reinforcement that happens as a result of the behavior. Reinforcement, therefore, strengthens a behavior and increases the likelihood that it will be repeated.

The view that we can learn both through observation and direct experience is called social learning theory. The influence of others is central to the social learning viewpoint. The amount of influence that these models will have on an individual is determined by four processes: attentional processes, retention processes, motor reproduction processes, and reinforcement processes.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 13.5: Discuss learning theories and their relevance in shaping behavior.

Classification: Concept

39 Copyright © 2025 Pearson Education, Inc.

138) Richard is the manager of the sales department in his company. He notices that several of the salespeople reporting to him are taking it easy and many are consistently late to work. Their focus is to just meet the sales target and take no extra initiative to improve sales or their individual performances. As a result, the department's performance is declining. Explain how Richard can encourage his salespeople to improve their performances using the shaping techniques.

Answer: Student answers may vary.

The tendency to repeat learned behavior is influenced by reinforcement or lack of reinforcement that happens as a result of the behavior. Reinforcement strengthens a behavior and increases the likelihood that it will be repeated. Lack of reinforcement weakens a behavior and lessens the likelihood that it will be repeated.

When a behavior is followed by something pleasant, it's called positive reinforcement. Positive reinforcement increases the likelihood that the desired behavior will be repeated. To positively reinforce good performances, Richard can offer an incentive for each sale above a certain target.

Rewarding a response by eliminating or withdrawing something unpleasant is negative reinforcement. To negatively reinforce good performances, Richard can offer to do away with penalties for tardiness. The desired behavior (better performance) is being encouraged by the withdrawal of something unpleasant (penalties for tardiness).

Punishment penalizes undesirable behavior and will eliminate it. To use punishment, Richard can penalize all salespeople who sell below a specified target each month.

Eliminating any reinforcement that's maintaining a behavior is called extinction. When a behavior isn't reinforced, it gradually disappears. He could analyze the situation to find out what encourages the salespeople to perform poorly and then use extinction to eliminate the cause of the poor performance. However, as Richard is trying to encourage positive behavior, he might not be able to use extinction.

Both positive and negative reinforcement result in learning. They strengthen a desired behavior and increase the probability that the desired behavior will be repeated. Both punishment and extinction also result in learning but do so by weakening an undesired behavior and decreasing its frequency.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 13.5: Discuss learning theories and their relevance in shaping behavior.

Classification: Application

40 Copyright © 2025 Pearson Education, Inc.

Management, 16e (Robbins) Chapter 14 Motivating Employees 1) The ________ element in the definition of motivation is a measure of intensity, drive, and vigor.

A) persistence B) effort C) energy D) direction Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.1: Define motivation.

Classification: Concept 2) Some people are motivated, and some are not.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.1: Define motivation.

Classification: Concept 3) The definition of motivation has three key elements: effort, direction, and persistence.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.1: Define motivation.

Classification: Concept 4) In the study of motivation, quality of effort is irrelevant to the energy element.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.1: Define motivation.

Classification: Concept

1 Copyright © 2025 Pearson Education, Inc.

5) Define motivation and discuss the three elements of motivation.

Answer: Motivation refers to the process by which a person's efforts are energized, directed, and sustained toward attaining a goal. This definition has three key elements: energy, direction, and persistence. The energy element is a measure of intensity, drive, and vigor. A motivated person puts forth effort and works hard. However, the quality of the effort must be considered as well as its intensity. High levels of effort don't necessarily lead to favorable job performance unless the effort is channeled in a direction that benefits the organization. Effort that is directed toward, and consistent with, organizational goals is the kind of effort we want from employees.

Finally, motivation includes a persistence dimension. We want employees to persist in putting forth effort to achieve those goals.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 14.1: Define motivation.

Classification: Concept 6) In Maslow's hierarchy of needs theory, ________ needs form the lowest or foundational step in the hierarchy.

A) psychomotor B) physiological C) psychological D) psychographic Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 7) Matthew is worried that he will not be able to pay his mortgage and feed his family since he was laid off from his production job. Which one of Maslow's levels of need is a concern to Matthew?

A) Self-actualization B) Esteem C) Psychological D) Physiological Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Application

2 Copyright © 2025 Pearson Education, Inc.

8) According to Maslow's hierarchy of needs theory, when an employer provides his employees health insurance, he is taking care of their ________ needs.

A) safety B) social C) self-actualization D) esteem Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Application 9) In the context of Maslow's hierarchy of needs theory, when a company has a space where employees can meet during breaks and catch up with each other, the company is taking care of the employees' ________ needs.

A) safety B) self-actualization C) social D) psychological Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Application 10) In the context of Maslow's hierarchy of needs theory, when a company names an "Employee of the Month" and "Employee of the Quarter," the company is addressing employees' ________ needs.

A) safety B) self-actualization C) esteem D) psychological Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Application

3 Copyright © 2025 Pearson Education, Inc.

11) According to Maslow's hierarchy of needs theory, a person's needs for self-respect, autonomy, achievement, status, recognition, and attention constitute his ________ needs.

A) safety B) self-actualization C) social D) esteem Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 12) Mavuto, a physicist in a large corporation, has been asked by his professional association to present a scientific paper at the national convention. This type of recognition will help Mavuto fulfill his ________ needs.

A) psychological B) esteem C) self-actualization D) social Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Application 13) According to Maslow's hierarchy of needs theory, a person's needs for growth, achieving one's potential, and self-fulfillment constitute his or her ________ needs.

A) psychological B) esteem C) social D) self-actualization Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept

4 Copyright © 2025 Pearson Education, Inc.

14) With its motto "Be All that You Can Be," the United States Army encouraged recruits to fulfill their ________ needs.

A) physiological B) psychological C) esteem D) self-actualization Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Application 15) Which one of the following needs is the highest in Maslow's hierarchy of needs theory?

A) Safety needs B) Self-actualization needs C) Esteem needs D) Social needs Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 16) Which one of the following needs is a lower-order need in Maslow's hierarchy of needs theory?

A) Social B) Esteem C) Safety D) Self-actualization Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 17) Which one of the following needs is a higher-order need in Maslow's hierarchy of needs theory?

A) Physiological B) Esteem C) Power D) Safety Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 5 Copyright © 2025 Pearson Education, Inc.

18) According to Maslow's hierarchy of needs theory, ________ needs are predominantly satisfied externally while ________ needs are satisfied internally.

A) physiological; safety B) safety; self-actualization C) self-actualization; physiological D) social; safety Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 19) Joe watches his youngest employees like a mother hen to make sure they stay on task and off their cell phones. Joe is behaving like a ________ manager.

A) Theory X B) Theory Y C) Theory Z D) Two-factor Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Application 20) McGregor's Theory X assumes that employees ________.

A) need to be closely controlled to work effectively B) enjoy work C) seek out and accept responsibility D) prefer autocratic supervisors Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 21) McGregor's Theory Y assumes that employees ________.

A) have little ambition B) want to avoid responsibility C) enjoy work D) need to be closely controlled to work effectively Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept

6 Copyright © 2025 Pearson Education, Inc.

22) Irene, CEO of a small company, strongly believes in Douglas McGregor's assumptions about human nature. Which one of the following management practices is Irene most likely to favor to maximize employee motivation?

A) A top-down decision-making structure B) A stringent system of monitoring and controlling employees C) Making jobs narrower in scope and shallow in depth D) Participatory management Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Application 23) Sanjay knows his more experienced workers don't need him to "babysit" them; he trusts them to know what to do, how to do it, and to get it done on time. In this respect, Sanjay is a ________ manager.

A) Theory X B) Theory Y C) Theory Z D) Two-factor Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Application 24) Frederick Herzberg's two-factor theory proposes that ________.

A) intrinsic factors cause job dissatisfaction B) extrinsic factors have the maximum effect on job satisfaction C) extrinsic factors are associated with job dissatisfaction D) intrinsic factors have little effect on job satisfaction Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 25) According to Herzberg's two-factor theory, which one of the following is a hygiene factor?

A) Recognition B) Advancement C) Working conditions D) Responsibility Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 7 Copyright © 2025 Pearson Education, Inc.

26) According to Herzberg's two-factor theory, which one of the following is a motivator?

A) Working conditions B) Salary C) Responsibility D) Security Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 27) Herzberg called the factors that create job dissatisfaction ________ factors; when these factors are adequate, people won't be dissatisfied, but they won't be satisfied either.

A) intrinsic B) hygiene C) motivating D) dissatisfiers Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 28) Which one of the following is true about Herzberg's two-factor theory?

A) Herzberg believed that the factors that lead to job satisfaction were the same as those that lead to job dissatisfaction.

B) To motivate people, Herzberg suggested emphasizing the hygiene factors of a job.

C) Satisfaction is not the opposite of dissatisfaction.

D) According to Herzberg, removing dissatisfying characteristics from a job will invariably make that job more satisfying and motivating.

Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept

8 Copyright © 2025 Pearson Education, Inc.

29) The employees at KLM Company are complaining that the supervisors tend to pick favorites within their departments. Company policies are not equally enforced, and the favorites are not disciplined for safety violations. These employees are complaining about ________.

A) Theory X management B) hygiene factors C) intrinsic factors D) equity theory Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Application 30) The three-needs theory of motivation states that there are three ________ needs that are major motivators in work.

A) psychological B) acquired C) safety D) innate Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 31) Which one of the following are the three needs identified in the three-needs theory of motivation?

A) Need for achievement, need for admiration, need for power B) Need for achievement, need for power, need for affiliation C) Need for power, need for achievement, need for affection D) Need for power, need for affirmation, need for affiliation Answer: B Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept

9 Copyright © 2025 Pearson Education, Inc.

32) According to the three-needs theory, the need for ________ is the drive to succeed and excel in relation to a set of standards.

A) control B) affiliation C) power D) achievement Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 33) The need for ________ is similar to Maslow's need for ________.

A) affiliation; safety B) power; esteem C) achievement; self-actualization D) affirmation; esteem Answer: C Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 34) According to the three-needs theory, the need for ________ is the need to make others behave in a way that they would not have behaved otherwise.

A) control B) leadership C) power D) achievement Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 35) Tiffany is usually the person who takes charge of the situation and gets people moving toward the group's objective. Tiffany probably has a high need for ________.

A) control B) power C) achievement D) admiration Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Application 10 Copyright © 2025 Pearson Education, Inc.

36) According to the three-needs theory, the need for ________ is the desire for friendly and close interpersonal relationships.

A) belonging B) affiliation C) affection D) achievement Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 37) Bob is a social butterfly. He often leaves his workstation to chat with coworkers. He volunteers for every problem-solving team and enjoys planning the annual summer employee picnic. Bob has a ________.

A) low need for safety B) high need for esteem C) low need for power D) high need for affiliation Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Application 38) People with a high need for achievement ________.

A) emphasize helping others accomplish their goals B) make good managers, especially in large organizations C) prefer moderately challenging goals D) emphasize the rewards of success Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept

11 Copyright © 2025 Pearson Education, Inc.

39) You are acting as manager and mentor to Melanie, an employee who has been identified as a high achiever. According to McClelland's three-needs theory, which one of the following measures would most help you motivate Melanie to do her best?

A) Promising her a promotion and a raise if she reaches her targets.

B) Giving her a job that holds her personally responsible for finding solutions to problems.

C) Setting goals that are just out of her reach.

D) Giving her a managerial position that requires her to help others accomplish their goals.

Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Application 40) According to the three-needs theory, the best managers tend to be ________ in the need for ________.

A) low; affiliation B) low; power C) high; affection D) high; achievement Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 41) According to Maslow's hierarchy of needs theory, lower-order needs are predominantly satisfied internally while higher-order needs are satisfied externally.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 42) According to Maslow's hierarchy of needs theory, once a need is substantially satisfied, that need no longer motivates the individual.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept

12 Copyright © 2025 Pearson Education, Inc.

43) Joseph, a line manager at a production facility, believes that his workers have little drive and will not work unless he pushes them. Therefore, he closely monitors and controls their work and disciplines those who do not meet his standards. Joseph is a Theory Y manager.

Answer: FALSE Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Application 44) Research clearly indicates that the Theory Y manager is more effective in motivating employees than the Theory X manager.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 45) Frederick Herzberg found that when employees were dissatisfied, they tended to cite extrinsic factors arising from the job context such as company policy and administration, supervision, interpersonal relationships, and working conditions.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 46) Despite the quantity of empirical evidence in its support, managers have largely ignored Herzberg's two-factor theory when designing jobs.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept 47) People with a high need for achievement strive for the trappings and rewards of success rather than for personal accomplishment.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept

13 Copyright © 2025 Pearson Education, Inc.

48) Write a short essay on Maslow's hierarchy of needs by first describing the needs and then discussing how these needs are interrelated according to the theory. How can managers use this theory to motivate employees?

Answer: Maslow proposed that within every person is a hierarchy of five needs: 1. Physiological needs: A person's needs for food, drink, shelter, sex, and other physical requirements.

2. Safety needs: A person's needs for security and protection from physical and emotional harm, as well as assurance that physical needs will continue to be met.

3. Social needs: A person's needs for affection, belongingness, acceptance, and friendship.

4. Esteem needs: A person's needs for internal esteem factors such as self-respect, autonomy, and achievement and external esteem factors such as status, recognition, and attention.

5. Self-actualization needs: A person's needs for growth, achieving one's potential, and selffulfillment; the drive to become what one is capable of becoming.

Maslow argued that each level in the needs hierarchy must be substantially satisfied before the next need becomes dominant. An individual moves up the needs hierarchy from one level to the next. In addition, Maslow separated the five needs into higher and lower levels. Physiological and safety needs were considered lower-order needs; social, esteem, and self-actualization needs were considered higher-order needs. Lower-order needs are predominantly satisfied externally while higher-order needs are satisfied internally.

Managers using Maslow's hierarchy to motivate employees do things to satisfy employees' needs. But the theory also says that once a need is substantially satisfied, an individual is no longer motivated to satisfy that need. Therefore, to motivate someone, you need to understand what need level that person is on in the hierarchy and focus on satisfying needs at or above that level.

Diff: 1 AACSB: Written and oral communication Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Concept

14 Copyright © 2025 Pearson Education, Inc.

49) As manager of a large team of engineers, you notice that your team is falling short of its goals primarily because several team members are either not motivated to put in their best or are downright dissatisfied with their jobs. You have decided to follow Herzberg's two-factor theory to motivate your employees. What steps can you take to maximize motivation?

Answer: Frederick Herzberg's two-factor theory (also called motivation-hygiene theory) proposes that intrinsic factors are related to job satisfaction, while extrinsic factors are associated with job dissatisfaction. Further, he argues that data suggested that the opposite of satisfaction was not dissatisfaction, as traditionally had been believed. Removing dissatisfying characteristics from a job would not necessarily make that job more satisfying (or motivating). Herzberg proposed that a dual continuum existed: The opposite of "satisfaction" is "no satisfaction," and the opposite of "dissatisfaction" is "no dissatisfaction."

Following this theory, you can motivate employees who show no dissatisfaction by emphasizing motivators, the intrinsic factors having to do with the job itself. These factors include achievement, recognition, work itself, responsibility, advancement, and growth. However, to motivate dissatisfied employees, the extrinsic factors associated with job dissatisfaction must first be addressed. These factors can include supervision, company policy, relationship with supervisor, working conditions, salary, relationship with peers, personal life, relationship with subordinates, status, and security. Once the dissatisfaction has been removed, you can maximize motivation by emphasizing the intrinsic factors.

Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Application 50) Michelle supervises six very diverse workers. They are male, female, older, younger, different ethnic groups and nationalities, and in different life stages. How might Michelle use the various theories of motivation to keep her workers inspired?

Answer: Michelle should learn from each of her subordinates what is important to them and what need on Maslow's hierarchy is motivating each one. This will enable her to tailor assignments to their individual skill sets and individualize the rewards to help each worker to meet his/her personal goals.

According to Herzberg's two-factor theory she will make sure the hygiene factors are not causing dissatisfaction and the motivating factors are present. When she determines which of McClelland's three needs is highest in each worker, she can incorporate the satisfaction of that need in the assignments. For example, a worker with a high need for affiliation can work on teams while one with a low nAff can work independently. She should make sure each worker understands how the assignments and rewards were decided and perceives the distribution of those rewards to be fair. By jointly setting difficult goals with each employee and obtaining genuine commitment to those goals, her workers are likely to put forth more effort. As each employee demonstrates the actions that lead to success, Michelle can offer praise and other nonmonetary reinforcement. Some workers, especially the more experienced ones, will respond well to more autonomy in their job design; those with a desire for more work/life balance will appreciate flexibility. All will appreciate interesting work.

Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 14.2: Compare and contrast early theories of motivation.

Classification: Application 15 Copyright © 2025 Pearson Education, Inc.

51) Goal-setting theory says that ________.

A) goals should be loosely defined and moderately challenging to maximize motivation B) a generalized goal of "do your best" is likely to be most effective in ensuring high performance C) difficult goals, when accepted, result in higher performance than do easy goals D) to be effective, goals set should be easily achievable for the top performers Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 52) The goal-setting theory states that ________.

A) employee participation in goal-setting is not always necessary for ensuring performance B) self-generated feedback is largely ineffective as a motivator C) in order to maximize performance, goals must not be made public D) motivation is maximized by setting extremely challenging goals Answer: A Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 53) Goal-setting theory assumes that an individual is committed to the goal. Commitment is most likely when ________.

A) goals are assigned and not self-set B) goals are not made public C) the individual has an internal locus of control D) the individual has low self-efficacy Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 54) The goal-setting theory has the most value when ________.

A) the individual is a high achiever B) the goals are assigned to the individual C) the individual has low self-efficacy D) commitment to goals is made public Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept

16 Copyright © 2025 Pearson Education, Inc.

55) The goal-setting theory has most value in countries where ________.

A) there is high uncertainty avoidance B) there is high power distance C) individuals are low in assertiveness D) subordinates are reasonably independent Answer: D Diff: 2 AACSB: Reflective thinking; Diverse and multicultural work environments Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 56) At his last performance evaluation, Elliott agreed to earn 20 continuing education credits before his next annual review. Ten months later, he still has not earned any. From this lack of action, we can infer that ________.

A) Elliott works in a low uncertainty avoidance culture B) Elliott is low in self-efficacy C) Elliott's manager is a Theory Y manager D) Elliott was not committed to the goal Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Application 57) In a familiar children's book, a little locomotive was asked to pull a heavy train up a steep mountain. The "little engine," as he was called, kept telling himself "I think I can. I think I can."

The little engine was ________.

A) high in need for affiliation B) low in commitment C) high in self-efficacy D) low in risk avoidance Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Application 58) ________ theory says that behavior is a function of its consequences.

A) Reinforcement B) Expectancy C) Equity D) Two-factor Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 17 Copyright © 2025 Pearson Education, Inc.

59) In the context of the reinforcement theory, reinforcers are ________.

A) those consequences that immediately follow a behavior and increase the probability that the behavior will be repeated B) punishments or rewards that are given out for negative or positive employee behavior, respectively C) the specific, unambiguous goals that have been set for employees as a standard for measuring their performance D) the supervisors or managers who have the responsibility of monitoring and reinforcing desired employee behavior Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 60) To help her new supervisors remember the concept of reinforcement theory, Carol told them to remember this: ________.

A) What gets measured gets monitored B) What gets rewarded gets repeated C) Whatever can go wrong, will D) No good deed goes unpunished Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Application 61) Which one of the following actions accurately reflects the reinforcement theory of motivation?

A) A company's policy of cutting a day's pay if an employee reports to work later than 10:30 A.M. B) A company's policy of giving its sales staff cash coupons for exceeding their daily targets.

C) A company initiating a process of job redesign to engage its employees better.

D) A company setting specific and difficult goals and ensuring that employees accept them.

Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Application

18 Copyright © 2025 Pearson Education, Inc.

62) The way tasks are combined to form complete jobs is referred to as ________.

A) job evaluation B) job rotation C) job design D) job specification Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 63) ________ refers to the number of different tasks required in a job and the frequency with which those tasks are repeated.

A) Job scope B) Job depth C) Job enlargement D) Job enrichment Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 64) ________ refers to the horizontal expansion of a job by increasing the number of different tasks required in a job and the frequency with which those tasks are repeated.

A) Job enrichment B) Job scope C) Job enlargement D) Job depth Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 65) ________ refers to the vertical expansion of a job by adding planning and evaluating responsibilities.

A) Job enrichment B) Job enlargement C) Job scope D) Job depth Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 19 Copyright © 2025 Pearson Education, Inc.

66) ________ refers to the degree of control employees have over their work.

A) Task identity B) Task significance C) Job scope D) Job depth Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 67) Which one of the following is true about job enlargement and job enrichment?

A) Job enlargement efforts that focus solely on increasing the number of tasks are largely effective in increasing employee motivation.

B) Research shows that job enrichment improves employee motivation and satisfaction.

C) Expanding the scope of knowledge used in a job leads to more job satisfaction, enhanced customer service, and fewer errors.

D) Research shows that job enrichment is very useful in improving the quality of work of employees.

Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 68) In the job characteristics model, ________ refers to the degree to which a job requires completion of a whole and identifiable piece of work.

A) task significance B) skill variety C) autonomy D) task identity Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept

20 Copyright © 2025 Pearson Education, Inc.

69) The last worker in the assembly line put on the tires and tightened the lug nuts. When asked what he did, he replied, "I build tractors." For this worker, his position included ________.

A) high task identity B) high task variety C) high autonomy D) high feedback Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Application 70) In the job characteristics model, task significance refers to the degree to which a job ________.

A) provides freedom, independence, and discretion to the individual in carrying out the work B) requires a variety of activities and uses a number of different employee skills and talents C) requires completion of a whole and identifiable piece of work D) has a substantial impact on the lives or work of other people Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 71) "We can't pay much but our clients could not manage without people like you in their lives."

This statement indicates that the position has ________.

A) low self-efficacy B) high task significance C) high task identity D) high feedback Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Application

21 Copyright © 2025 Pearson Education, Inc.

72) In the job characteristics model, the dimension of ________ refers to the degree to which a job provides substantial freedom, independence, and discretion to the individual in scheduling the work and determining the procedures to be used in carrying it out.

A) task significance B) autonomy C) task identity D) skill variety Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 73) At 3M, workers are allowed up to 15% of their paid time to devote to projects of their own choosing. For that time, workers have ________.

A) high task identity B) high task significance C) high autonomy D) low feedback Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Application 74) In the job characteristics model, the dimension of ________ refers to the degree to which doing work activities required by a job results in an individual obtaining direct and clear information about the effectiveness of his or her performance.

A) task significance B) feedback C) task identity D) autonomy Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept

22 Copyright © 2025 Pearson Education, Inc.

75) As a flower arranger, Beth doesn't have to wait for someone to tell her. She can look at an arrangement and know whether she did a good job. Beth's job has ________.

A) low task significance B) low skill variety C) high feedback D) high autonomy Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Application 76) According to the Job Characteristics Model (JCM), which three job characteristics are crucial to an employee experiencing meaningfulness of his or her work?

A) Autonomy, task identity, and task significance B) Skill variety, task identity, and task significance C) Autonomy, feedback, and task significance D) Skill variety, autonomy, and feedback Answer: B Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 77) According to the Job Characteristics Model (JCM), which job characteristic leads to an employee experiencing responsibility for outcomes of his or her work?

A) Task significance B) Autonomy C) Feedback D) Skill variety Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 78) According to the Job Characteristics Model (JCM), which job characteristic results in the employee knowing about the actual results of his or her work activities?

A) Task significance B) Autonomy C) Feedback D) Skill variety Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 23 Copyright © 2025 Pearson Education, Inc.

79) Sarah is using the Job Characteristics Model (JCM) to redesign jobs for her small team of writers. After carefully analyzing their jobs, she determines that, while their jobs are high in skill variety, task identity, task significance, and autonomy, they receive little feedback about their work. Which one of the following steps will enable Sarah to improve this aspect of their jobs?

A) Adding editing and proofreading duties to their existing work B) Allowing the writers to directly conduct business with their clients C) Allowing writers to choose their topics and assignments D) Making employees responsible for executing a piece of work from start to finish Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Application 80) "In jobs today, employees rely more and more on those around them for information, advice, and assistance." Which one of the following approaches to job design best reflects this statement?

A) The relational perspective of work design B) The job characteristics model C) The proactive perspective of work design D) High involvement work practices Answer: A Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 81) The ________ of work design says that employees are taking the initiative to change how their work is performed.

A) social model B) proactive perspective C) job characteristics model D) relational perspective Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept

24 Copyright © 2025 Pearson Education, Inc.

82) The equity theory proposes that ________.

A) offering employees part of the company's shares, or equity, motivates them to do their best because their performance directly ties in with the company's performance B) employees expect that exerting a given amount of effort will lead to a certain level of performance and will be demotivated if that does not happen C) an employee compares his or her job's input-outcomes ratio with that of relevant others and then takes steps to correct any inequity D) employees are more likely to show initiative at work if they are more involved in decisions that affect their work Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 83) Coworkers Bob and Tom were comparing checks on Friday. Bob saw that Tom's was significantly larger, which made Bob unhappy. Which theory best explains Bob's reaction?

A) Maslow's hierarchy of needs theory B) Herzberg's two-factor theory C) Adams' equity theory D) Vroom's expectancy theory Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Application 84) After seeing Tom's paycheck, Bob decided their inputs were nearly identical, but Tom's check was much larger. Bob decided to take action to make things more fair in his mind. He is most likely to ________.

A) increase the quantity of his production B) focus on the quality of his production C) reduce his effort at work D) find another person to compare checks with Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Application

25 Copyright © 2025 Pearson Education, Inc.

85) ________ justice is the perceived fairness of the amount and allocation of rewards among individuals.

A) Distributive B) Restorative C) Retributive D) Procedural Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 86) When Bob discovered Tom had a larger paycheck for the same amount of effort, his concern centered on ________ justice.

A) distributive B) restorative C) retributive D) procedural Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Application 87) The company announced it would be laying off several workers because of the loss of several large orders. Employees wondered how the workers to be laid off would be selected.

They were concerned with ________.

A) equity B) distributive justice C) procedural justice D) need for achievement Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Application

26 Copyright © 2025 Pearson Education, Inc.

88) In the expectancy theory, ________ is the probability perceived by the individual that exerting a given amount of effort will lead to a certain level of performance.

A) expectancy B) valence C) instrumentality D) saliency Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 89) In the expectancy theory, ________ is the degree to which the individual believes that performing at a particular level is instrumental in attaining the desired outcome.

A) expectancy B) valence C) the performance-reward linkage D) the effort-performance linkage Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 90) In the expectancy theory, ________ is the importance that the individual places on the potential outcome or reward that can be achieved on the job.

A) expectancy B) valence C) instrumentality D) saliency Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept

27 Copyright © 2025 Pearson Education, Inc.

91) Tammy's boss has asked her to take on a project in addition to her regular work. According to expectancy theory, Tammy will consider the instrumentality and ask herself, "________" A) Do I really have time to take on another project?

B) How much time will this project take?

C) Will my efforts help or hinder the organization?

D) What are the odds that if I expend effort on the project my performance will be satisfactory to the boss?

Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Application 92) Rickita's boss has offered her baseball game tickets if she meets her sales goals this month.

Rickita looked at him in disbelief and did not put forth the effort to meet the goals. According to expectancy theory, from this we can surmise ________.

A) the expectancy was only moderate B) the reward had low valence C) the instrumentality was low D) the effort-reward linkage was weak Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Application 93) According to the goal-setting theory, a generalized goal of "do your best" will produce a higher output than specific, challenging goals.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 94) Goal-setting theory works well as a motivator in cultures that are high in uncertainty avoidance.

Answer: FALSE Diff: 2 AACSB: Reflective thinking; Diverse and multicultural work environments Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept

28 Copyright © 2025 Pearson Education, Inc.

95) Evidence suggests goal-setting theory is directly related to job satisfaction.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 96) Managers using reinforcement theory to motivate employees should ignore rather than punish undesirable behavior.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 97) The term job design refers to the way tasks are combined to form complete jobs.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 98) Making jobs smaller and more specialized is the most effective way of motivating employees.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 99) Job enlargement refers to the horizontal expansion of a job by increasing job scope.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 100) An enriched job allows workers to do an entire activity with increased freedom, independence, and responsibility.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept

29 Copyright © 2025 Pearson Education, Inc.

101) Evidence supports that job enrichment is by far the best method to motivate employees.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 102) In the job characteristics model, task significance refers to the degree to which a job requires completion of a whole and identifiable piece of work.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 103) According to the job characteristics model, combining fragmented tasks will help increase skill variety and task identity.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 104) High-involvement work practices is another term for employee empowerment.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 105) In equity theory, recent research shows that distributive justice has a greater influence on employee satisfaction than procedural justice.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept

30 Copyright © 2025 Pearson Education, Inc.

106) What does goal-setting theory tell us?

Answer: The goal-setting theory says that specific goals increase performance and that difficult goals, when accepted, result in higher performance than do easy goals. It says that working toward a goal is a major source of job motivation. Studies on goal setting have demonstrated that specific and challenging goals are superior motivating forces. Such goals produce a higher output than do the generalized goal of "do your best." The specificity of the goal itself acts as an internal stimulus. However, the conclusions of goal-setting theory apply to those who accept and are committed to the goals. Additionally, while participation is preferable to assigning goals when employees may resist difficult challenges, it is not always necessary for performance. Selfgenerated feedback has been shown to be a more powerful motivator than feedback coming from someone else. Three other contingencies besides feedback influence the goal-performance relationship: goal commitment, adequate self-efficacy, and national culture. First, commitment is most likely when goals are made public, when the individual has an internal locus of control, and when the goals are self-set rather than assigned. Next, self-efficacy refers to an individual's belief that (s)he is capable of performing a task. The higher your self-efficacy, the more confidence you have in your ability to succeed in a task. Finally, the value of goal-setting theory depends on the national culture. It's well adapted to North American countries because its main ideas align reasonably well with those cultures. Goal setting cannot be expected to lead to higher employee performance in countries where the cultural characteristics aren't like this.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 107) Explain the concepts of job enlargement and job enrichment with suitable examples and analyze their effectiveness in motivating employees.

Answer: Job enlargement refers to the horizontal expansion of a job by increasing job scope, or the number of different tasks required in a job and the frequency with which these tasks are repeated. For instance, the job of an office assistant could be expanded so that apart from filing and documentation, (s)he could also handle phone calls and visitors. In contrast, job enrichment is the vertical expansion of a job by adding planning and evaluating responsibilities. Job enrichment increases job depth, which is the degree of control employees have over their work.

In other words, employees are empowered to assume some of the tasks typically done by their managers. Thus, an enriched job allows workers to do an entire activity with increased freedom, independence, and responsibility. In addition, workers get feedback so they can assess and correct their own performance. For instance, if an office assistant had an enriched job, (s)he could, in addition to filing and documentation, schedule appointments (planning) and follow up with clients and coworkers (evaluating).

Most job enlargement efforts that focus solely on increasing the number of tasks don't seem to work. However, research has shown that knowledge enlargement activities (expanding the scope of knowledge used in a job) lead to more job satisfaction, enhanced customer service, and fewer errors. Also, although job enrichment may improve the quality of work, employee motivation, and satisfaction, research evidence has been inconclusive as to its usefulness.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept; Application 31 Copyright © 2025 Pearson Education, Inc.

108) How can managers use the job characteristics model (JCM) to design jobs?

Answer: The JCM provides specific guidance to managers for job design. These suggestions specify the types of changes that are most likely to lead to improvement in the five core job dimensions.

1. Combine tasks: Put fragmented tasks back together to form a new, larger work module (job enlargement) to increase skill variety and task identity.

2. Create natural work units: Design tasks that form an identifiable and meaningful whole to increase employee "ownership" of the work. Encourage employees to view their work as meaningful and important rather than as irrelevant and boring.

3. Establish client (external or internal) relationships: Whenever possible, establish direct relationships between workers and their clients to increase skill variety, autonomy, and feedback.

4. Expand jobs vertically: Vertical expansion gives employees responsibilities and controls that were formerly reserved for managers, which can increase employee autonomy.

5. Open feedback channels: Direct feedback lets employees know how well they're performing their jobs and whether their performance is improving or not.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 14.3: Compare and contrast contemporary theories of motivation.

Classification: Concept 109) Which one of the following is true about managing cross-cultural motivational challenges?

A) Maslow's needs hierarchy largely remains unchanged across cultures.

B) In masculine cultures such as Japan and Slovakia, the focus is on quality-of-life benefits.

C) Recent evidence suggests that in collectivist cultures, especially in the former socialist countries of Central and Eastern Europe, employees link pay solely to performance.

D) Most current motivation theories were developed in the United States by Americans and about Americans.

Answer: D Diff: 2 AACSB: Reflective thinking; Diverse and multicultural work environments Learning Obj.: LO 14.4: Discuss current issues in motivation.

Classification: Concept 110) Which one of the following motivating factors or concepts is important to all workers, regardless of their national culture?

A) Extrinsic factors like pay B) Need for achievement C) Physiological needs as the foundational need in the needs hierarchy D) Interesting work Answer: D Diff: 1 AACSB: Reflective thinking; Diverse and multicultural work environments Learning Obj.: LO 14.4: Discuss current issues in motivation.

Classification: Concept

32 Copyright © 2025 Pearson Education, Inc.

111) To maximize motivation among today's workforce, managers need to think in terms of ________.

A) job autonomy B) flexibility C) job security D) compensation Answer: B Diff: 1 AACSB: Reflective thinking; Diverse and multicultural work environments Learning Obj.: LO 14.4: Discuss current issues in motivation.

Classification: Concept 112) Remote work may motivate workers by ________.

A) providing more structure to the workweek B) paying more relative to office work C) fulfilling psychological needs D) providing more learning opportunities Answer: C Diff: 2 AACSB: Reflective thinking; Diverse and multicultural work environments Learning Obj.: LO 14.4: Discuss current issues in motivation.

Classification: Concept 113) Jill Hammer is a single mother who has decided to seek work with your company. She enjoys social interaction but also values time with her children. As you consider whether she will be a good fit for your department, you decide that she is likely to find satisfaction in the job because it ________.

A) offers fixed work schedules B) offers convenient and flexible work hours C) gives her the option to telecommute D) provides a lot of autonomy Answer: B Diff: 3 AACSB: Diverse and multicultural work environments; Application of knowledge Learning Obj.: LO 14.4: Discuss current issues in motivation.

Classification: Application

33 Copyright © 2025 Pearson Education, Inc.

114) Which one of the following is true about motivating unique groups of workers?

A) Higher pay is the only reward that is important to low-skilled, minimum-wage employees.

B) Flexible work arrangements have shown a strong link with high motivation levels.

C) Money and promotions are typically low on the priority list of professionals.

D) For most temp workers, the freedom they get from their temporary status is the main motivator.

Answer: C Diff: 3 AACSB: Reflective thinking; Diverse and multicultural work environments Learning Obj.: LO 14.4: Discuss current issues in motivation.

Classification: Concept 115) Temporary workers are often motivated by ________.

A) autonomy in their work and flexibility in their schedules B) the opportunity to become regular, full-time employees C) the ability to change assignments frequently D) recognition and responsibility Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.4: Discuss current issues in motivation.

Classification: Concept 116) Flipping burgers at the local drive-thru is Marla's first job. She has no work experience, no marketable skills. Which one of the following would you suggest her manager do to keep Marla motivated to perform at her highest level?

A) Pay her more than minimum wage.

B) Pair her with a long-term employee to train her in her job tasks.

C) Offer her a promotion if she meets specific goals.

D) Recognize her best performance with public praise.

Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 14.4: Discuss current issues in motivation.

Classification: Application 117) ________ is a motivational approach in which an organization's financial statements are shared with all employees.

A) Pay-for-performance B) Self-determination approach C) Open-book management D) I-Change model Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.4: Discuss current issues in motivation.

Classification: Concept 34 Copyright © 2025 Pearson Education, Inc.

118) The use of employee recognition programs as motivational tools is consistent with the ________ theory.

A) hierarchy of needs B) reinforcement C) three-factor D) expectancy Answer: B Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 14.4: Discuss current issues in motivation.

Classification: Concept 119) The flexibility offered by remote work could ________.

A) cost the employee in terms of advancement opportunities B) cause many workers to slack off on job duties C) have a positive impact on worker motivation D) result in lower employee morale Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 14.4: Discuss current issues in motivation.

Classification: Concept 120) If remote workers perceive a work policy as unfair to them it ________.

A) could negatively affect motivation B) could cause them to return to the office C) might result in a lawsuit D) could create a toxic work environment Answer: A Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 14.4: Discuss current issues in motivation.

Classification: Concept 121) Research indicates that the desire to be treated with respect is important to almost all workers, regardless of national culture.

Answer: TRUE Diff: 1 AACSB: Reflective thinking; Diverse and multicultural work environments Learning Obj.: LO 14.4: Discuss current issues in motivation.

Classification: Concept

35 Copyright © 2025 Pearson Education, Inc.

122) More than the other motivational theories, Maslow's hierarchy of needs has universal application.

Answer: FALSE Diff: 2 AACSB: Reflective thinking; Diverse and multicultural work environments Learning Obj.: LO 14.4: Discuss current issues in motivation.

Classification: Concept 123) Professionals tend to be focused on their work as their central life interest, whereas nonprofessionals typically have other interests outside of work that can compensate for needs not met on the job.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 14.4: Discuss current issues in motivation.

Classification: Concept 124) Research indicates that, for the most part, pay-for-performance programs show positive results.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 14.4: Discuss current issues in motivation.

Classification: Concept 125) How can managers motivate remote workers?

Answer: Just the option to work remotely does motivate some workers. Flexible hours positively impact motivation, however, and thus the flexibility of remote work is important. Our understanding of need-based theories suggests remote work may fulfill psychological needs.

Remote work gives employees control over their schedule and autonomy, allowing for intrinsic motivation. To provide the right environment for remote workers, managers need to shift their approach from managing time and activity to managing results and outcomes. Further, managers can support remote workers better and positively impact their motivation by setting priorities and helping to solve problems.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 14.4: Discuss current issues in motivation.

Classification: Application

36 Copyright © 2025 Pearson Education, Inc.

126) What is open-book management? How is it effective in motivating appropriate employee behavior?

Answer: Many organizations of various sizes involve their employees in workplace decisions by opening up the financial statements (the "books"). They share that information so that employees will be motivated to make better decisions about their work and better able to understand the implications of what they do, how they do it, and the ultimate impact on the bottom line. This approach is called open-book management. The goal of open-book management is to get employees to think like an owner by seeing the impact their decisions have on financial results. Since many employees don't have the knowledge or background to understand financials, they have to be taught how to read and understand the organization's financial statements. Once employees have this knowledge, however, managers need to regularly share the numbers with them. By sharing this information, employees begin to see the link between their efforts, level of performance, and operational results.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 14.4: Discuss current issues in motivation.

Classification: Concept

37 Copyright © 2025 Pearson Education, Inc.

Management, 16e (Robbins) Chapter 15 Managing Groups and Teams 1) LaRonda has bonded with several of her colleagues that all enjoy the same music. LaRonda and her colleagues constitute a(n) ________.

A) formal group B) informal group C) task group D) crowd Answer: B Diff: 3 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Application 2) Which of the following is an example of a formal group?

A) People who assemble in the company library to read.

B) A group of employees attending a colleague's wedding.

C) A functional department in an organization.

D) A group of employees who meet after work to play basketball.

Answer: C Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Application 3) Groups that are determined by the organization chart and composed of individuals who report directly to a given manager are called ________.

A) command groups B) task groups C) cross-functional teams D) self-managed teams Answer: A Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Concept

1 Copyright © 2025 Pearson Education, Inc.

4) David supervises a group of employees who work towards achieving organizational goals.

This group can be called a ________.

A) self-managed team B) task group C) command group D) cross-functional team Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Application 5) Every summer, ABC Corp. hosts a picnic for employees and their families. The group that plans and makes all the arrangements for this event would be called a ________.

A) self-managed team B) task group C) command group D) cross-functional team Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Application 6) Which one of the following refers to independent formal groups whose members, in addition to their regular jobs, take on traditional managerial responsibilities, such as hiring, planning and scheduling, and evaluating performance?

A) Command groups B) Task groups C) Self-managed teams D) Cross-functional teams Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Concept

2 Copyright © 2025 Pearson Education, Inc.

7) Which one of the following stages in group development involves defining the group's structure and leadership?

A) Norming B) Storming C) Performing D) Forming Answer: D Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Concept 8) The first group meeting is in progress. The five attendees are exchanging contact information and getting acquainted. This group is in the ________ stage.

A) forming B) norming C) storming D) performing Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Application 9) The ________ stage in the group development process is complete when members begin to think of themselves as part of a group.

A) forming B) storming C) norming D) performing Answer: A Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Concept 10) During the ________ stage of the group development process, a relatively clear hierarchy of leadership and agreement on the group's direction emerge.

A) forming B) storming C) norming D) performing Answer: B Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Concept 3 Copyright © 2025 Pearson Education, Inc.

11) It became clear that both Cathy and Simon felt they should lead the group. Other group members began aligning themselves with one or the other. This group is in the ________ stage.

A) forming B) norming C) storming D) performing Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Application 12) For a new project, Eldon forms a team of individuals from various functional departments.

After a few days Eldon observes conflicts within the group over who will control it and what the group needs to be doing. This team is now in the ________ stage of group development.

A) storming B) forming C) performing D) norming Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Application 13) Group A has been meeting for one month and is having some difficulty appointing its leader.

At least three individuals are qualified to keep the group's focus on its objectives, but the group has yet to decide which person will lead. Group A is at the ________ stage.

A) forming B) performing C) storming D) norming Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Application

4 Copyright © 2025 Pearson Education, Inc.

14) The ________ stage of the group development process is one in which close relationships develop and the group becomes cohesive.

A) norming B) forming C) storming D) performing Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Concept 15) In this meeting, the group is discussing a code of conduct to be observed by all members, such as arriving on time and not interrupting the speaker. This group is in the ________ stage.

A) forming B) norming C) storming D) performing Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Application 16) The ________ stage of group development is complete when the group structure solidifies, and the group has assimilated a common set of expectations of what defines correct member behavior.

A) storming B) forming C) performing D) norming Answer: D Diff: 1 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Concept

5 Copyright © 2025 Pearson Education, Inc.

17) Group C has been meeting for two months and seems to be progressing extremely well. You observe that the group meets every morning and spends the first five minutes chatting. They then review the decisions of the last meeting followed by a discussion on the status of their current tasks. Group C is currently at the ________ stage.

A) norming B) performing C) storming D) adjourning Answer: B Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Application 18) In which stage of group development does the group focus its attention on wrapping up activities instead of task performance?

A) Storming B) Adjourning C) Forming D) Norming Answer: B Diff: 1 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Concept 19) Group D has been working on developing a product which is now ready to hit the market.

The group members are happy about the work they've done on this product. The focus has now shifted from productivity to tying up loose ends. Group D is at the ________ stage.

A) forming B) performing C) norming D) adjourning Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Application

6 Copyright © 2025 Pearson Education, Inc.

20) Which one of the following is considered to be the last stage of group development for permanent work groups?

A) Performing B) Norming C) Storming D) Adjourning Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Concept 21) Formal groups are work groups that are defined by the organization's structure and have designated work assignments and specific tasks directed at accomplishing organizational goals.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Concept 22) Task groups are permanent teams that take on special projects.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Concept 23) Self-managed teams function in an independent and informal manner.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Concept 24) In the group development process, the forming stage is complete when members begin to think of themselves as part of a group.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Concept

7 Copyright © 2025 Pearson Education, Inc.

25) Under some conditions, high levels of conflict are conducive to high levels of group performance.

Answer: TRUE Diff: 1 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Concept 26) Describe the differences between formal and informal groups, giving examples of each.

Answer: Formal groups are work groups defined by the organization's structure and have designated work assignments and specific tasks directed at accomplishing organizational goals.

Four different types are command and task groups, and cross-functional and self-managed teams.

Informal groups are social groups that occur naturally in the workplace and tend to form around friendships and common interests. For example, employees from different departments who regularly each lunch together are an informal group.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Concept

8 Copyright © 2025 Pearson Education, Inc.

27) List and discuss the five stages of group development.

Answer: Research shows that groups pass through a standard sequence of five stages. These five stages are forming, storming, norming, performing, and adjourning. a. The first stage, forming, has two aspects. First, people join the group either because of a work assignment, in the case of a formal group, or for some other benefit desired (such as status, selfesteem, affiliation, power, or security), in the case of an informal group. Once the group's membership is in place, the second part of the forming stage begins: the task of defining the group's purpose, structure, and leadership. This phase is characterized by a great deal of uncertainty. Members are "testing the waters" to determine what types of behavior are acceptable. This stage is complete when members begin to think of themselves as part of a group. b. The storming stage is one of intragroup conflict. There is conflict over who will control the group. When this stage is complete, there will be a relatively clear hierarchy of leadership within the group and agreement on the group's direction. c. The third stage is one in which close relationships develop and the group demonstrates cohesiveness. There's now a strong sense of group identity and camaraderie. This norming stage is complete when the group structure solidifies, and the group has assimilated a common set of expectations of what defines correct member behavior. d. The fourth stage is performing. The group structure at this point is fully functional and accepted. Group energy has moved from getting to know and understand each other to performing the task at hand. Performing is the last stage in the development of permanent work groups. Temporary groups-such as committees, task forces, and similar groups-that have a limited task to perform have a fifth stage, adjourning. e. In the adjourning stage, the group prepares to disband. High levels of task performance are no longer the group's top priority. Instead, attention is directed at wrapping up activities. Responses of group members vary at this stage. Some are upbeat, basking in the group's accomplishments.

Others may be saddened by the loss of camaraderie and friendships gained during the work group's life.

Diff: 3 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.1: Define groups and the stages of group development.

Classification: Concept 28) Employees were paid and evaluated based on quantity of output, so it expected the continuous improvement team to meet during the two daily 15-minute breaks. The only space available for these meetings was the noisy breakroom; then management wondered why the group was not producing results. The most likely reason is ________.

A) a lack of resources within the group B) external conditions imposed on the group C) a poor strategy for managing quality D) a lack of group cohesiveness Answer: B Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application 9 Copyright © 2025 Pearson Education, Inc.

29) Students often complain that having to work with assigned teammates results in a poorer group project. They are complaining about a(n) ________.

A) external condition B) internal condition C) group member resource D) group task Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application 30) Which of the following personality traits is negatively related to group productivity and morale?

A) Unconventionality B) Self-reliance C) Independence D) Sociability Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 31) Whenever one of her group got within ten feet of her, Christine chirped, "Oh good! You've come to help me." This group is likely to have low productivity because ________.

A) Christine lacks sociability B) Christine lacks self-reliance C) Christine possesses authoritarianism D) Christine is unconventional Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application

10 Copyright © 2025 Pearson Education, Inc.

32) This group should have worked well together. Each of them had at least five years seniority and had scored well on past performance evaluations. They all knew what needed to be done, but it seemed they were always in disagreement about something. This group probably lacked ________.

A) communication skills B) independence C) conflict resolution skills D) sociability Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application 33) A pattern of behavior expected of someone occupying a given position in a social unit is called a ________.

A) role B) status C) norm D) persona Answer: A Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 34) When Javon's department head explained what was expected of him as a new professor in terms of maintaining discipline in his classroom and providing students with a challenging course, he was referring to Javon's ________ at the university.

A) role B) status C) obligations D) authority Answer: A Diff: 3 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application

11 Copyright © 2025 Pearson Education, Inc.

35) The acceptable standards or expectations that are shared by a group's members are referred to as ________.

A) affiliations B) norms C) criteria D) morals Answer: B Diff: 1 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 36) Samantha works with a group of high performers which gives her the opportunity to do some personal tasks since the group will pick up the slack. Samantha's behavior is an example of ________.

A) conformity B) groupthink C) social loafing D) norming Answer: C Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application 37) "Slow down, Mary. You're making us all look bad." These comments likely came from a worker concerned about ________.

A) group roles B) group norms C) groupthink D) social loafing Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application; Analytical

12 Copyright © 2025 Pearson Education, Inc.

38) Which one of the following is a negative aspect of group norms?

A) The pressure of a group's expectations can override a member's skill and drive.

B) The most widespread norms are those related to dress codes.

C) Groups become dysfunctional when they maintain strict norms.

D) Norms do not influence employees' performance.

Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 39) Asch's experiment, which used lines of varying lengths to test group behavior, has shown the existence of ________.

A) group norms B) workplace conformity C) social loafing D) role conflicts Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 40) Her instincts told her the group was heading in a very wrong direction, but Natalie didn't want to cause a scene by disagreeing, especially when she was apparently the only one with reservations. Natalie has succumbed to ________.

A) group norms B) social loafing C) groupthink D) groupshift Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application

13 Copyright © 2025 Pearson Education, Inc.

41) The reluctance of Alonzo's group mates to voice their opposition to several issues in order to maintain group harmony is an example of ________.

A) social loafing B) group norms C) groupshift D) groupthink Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application 42) Which one of the following refers to a prestige grading, position, or rank within a group?

A) Role B) Status C) Stature D) Membership Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 43) Age, skill, and experience are examples of ________ status categories.

A) formal B) informal C) internal D) external Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept

14 Copyright © 2025 Pearson Education, Inc.

44) Which of the following is an accurate statement regarding status systems?

A) Anything can have status value if others in the group evaluate it that way.

B) Status is a weak employee motivator even though it has behavioral consequences.

C) Status can only be formally conferred on individuals.

D) Status systems are independent of aspects such as prestige and grading.

Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 45) She was the matriarch of the department, the most senior employee. She always sat immediately to the right of the manager in all department meetings. No one dared take her chair.

That chair was a symbol of her ________.

A) importance B) age C) status D) seniority Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application 46) ________ occurs when a supervisor earns less than his or her subordinates.

A) Informal status B) Role conflict C) Role ambiguity D) Status incongruence Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept

15 Copyright © 2025 Pearson Education, Inc.

47) In comparison to large groups, small groups ________.

A) have shorter group tenure B) are faster at completing tasks C) have longer norming processes D) are better at obtaining diverse input Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 48) Large groups consistently get better results than smaller ones when the group is involved in ________.

A) getting things done B) routine tasks C) problem solving D) long-term projects Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 49) Individuals have the tendency to expend less effort when working collectively than when working individually. Which one of the following concepts relates most closely to this behavior?

A) Social loafing B) Role conflict C) Role ambiguity D) Nonconformity Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept

16 Copyright © 2025 Pearson Education, Inc.

50) Stacey was invited to become a member of the class project team because the other members knew she had a high GPA and worked hard on all her individual assignments. Although the other members worked diligently to complete their parts, Stacey was not giving her best effort to this team. Which of the following is a possible explanation for Stacey's behavior?

A) Social loafing B) Status incongruence C) Role ambiguity D) Group cohesiveness Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application 51) Which one of the following suggestions will help reduce the effect of social loafing in groups?

A) Clearly identify individual responsibilities and efforts in the group outcome.

B) Provide group rewards instead of individual rewards.

C) Increase the overall size of the group.

D) Form homogeneous groups to increase group cohesiveness.

Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 52) A lot is riding on the success of this project. All nine members will share in the rewards. But Ted just doesn't have time to complete his assignment so he rationalizes that no one outside the group will know what he did or did not do anyway. Ted is engaged in ________.

A) nonconventionality B) group norms C) groupthink D) social loafing Answer: D Diff: 3 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application

17 Copyright © 2025 Pearson Education, Inc.

53) This group really clicked. They got along well both professionally and socially. While at work they focused on work. This group is likely to experience ________ in productivity.

A) a strong increase B) a moderate increase C) no change D) a decrease Answer: A Diff: 3 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application 54) Group cohesiveness is most likely to produce increases in productivity when ________.

A) cohesiveness reduces internal strife B) the group's goals align with the organization's goals C) it reduces social loafing in the group D) group members respect and uphold the group norms Answer: B Diff: 3 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 55) Which one of the following statements is true about group decision making?

A) It generates more complete information and knowledge.

B) It takes less time to reach a solution than an individual would.

C) It prevents any one minority from dominating or influencing the final decision.

D) It is most suitable for matters that need to be critically evaluated.

Answer: A Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept

18 Copyright © 2025 Pearson Education, Inc.

56) Which one of the following is true about group decision making?

A) Groups tend to foster equal participation in decision making.

B) The pressure to conform is low when working in groups.

C) Groups take more time to arrive at a decision.

D) Groups usually make decisions based on incomplete information.

Answer: C Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 57) Which one of the following is true about the effectiveness of individual decision making over group decision making?

A) Individual decisions tend to be more accurate.

B) Individual decisions are better when dealing with complex issues.

C) Individuals tend to be more creative than groups.

D) Individual decisions are made faster than group decisions Answer: D Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 58) The ________ view of conflict management argues that conflicts must be avoided as it indicates a problem within the group.

A) human relations B) traditional C) interactionist D) obstructionist Answer: B Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept

19 Copyright © 2025 Pearson Education, Inc.

59) Celine feels that the form of marketing their company is using isn't working anymore. Merle disagrees vehemently. Those in the company who view the conflict over the marketing strategy as bad and harmful have a(n) ________ view of conflict.

A) human relations B) relational C) traditional D) interactionist Answer: C Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application 60) Daniela and Navaro disagree on the best way to promote a new product. Those in the company who view the conflict over the promotion strategy as natural and inevitable have a(n) ________ view of conflict.

A) human relations B) reactionist C) traditional D) interactionist Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application 61) Odill intentionally included in his team individuals with opposing views, believing that a variety of opinions made for better decisions. Odill has a(n) ________ view of conflict.

A) human relations B) liberal C) traditional D) interactionist Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application

20 Copyright © 2025 Pearson Education, Inc.

62) The ________ of conflict management argues that some conflict is absolutely necessary for effective organizational performance.

A) traditional view B) reactionist view C) human relations view D) interactionist view Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 63) The type of conflicts that support group goals and improve performance are called ________ conflicts.

A) planned B) dysfunctional C) natural D) functional Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 64) ________ conflict relates to the content and goals of the work.

A) Task B) Role C) Relationship D) Work Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept

21 Copyright © 2025 Pearson Education, Inc.

65) The group could not agree on what needed to be done. Some thought they were to research and present data; others thought they were to make recommendations. This is an example of ________ conflict.

A) process B) task C) relationship D) functional Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application 66) Which one of the following types of conflict is based on how the work gets done?

A) Process conflict B) Relationship conflict C) Task conflict D) Role conflict Answer: A Diff: 1 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 67) Michael thought they should start by reviewing what had been done in the past. Michelle thought they should study the current situation first. This is an example of ________ conflict.

A) process B) procedural C) task D) functional Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application

22 Copyright © 2025 Pearson Education, Inc.

68) Which one of the following types of conflict is most likely to be dysfunctional?

A) Status conflict B) Relationship conflict C) Process conflict D) Task conflict Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 69) Molly is a party animal, loud, friendly, bluntly outspoken. Megan is quiet, tactful, and clearly disapproving of Molly's lifestyle. It's no wonder the two do not work well together. This is a type of ________ conflict.

A) task B) process C) relationship D) interpersonal Answer: C Diff: 3 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application 70) A low-to-moderate level of task conflict consistently has a positive effect on group performance. What is the reason for this?

A) It stimulates discussion of ideas that help groups be more innovative.

B) It helps the organization identify employee skills gaps.

C) It helps groups to alter the nature of the work according to the individual needs of team members.

D) It helps group members identify their individual strengths and weaknesses.

Answer: A Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept

23 Copyright © 2025 Pearson Education, Inc.

71) Which one of the following is true about social loafing?

A) Social loafing may occur because of the perception that everyone is doing their fair share.

B) Social loafing is essentially an example of someone being a free rider.

C) Social loafing is not problematic as long at the overall group accomplishes the goals.

D) Social loafing contributes to group cohesiveness.

Answer: B Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 72) Chaquille noticed that when he switched his evaluation technique from an individual metric to a group metric that two members of the group reduced their efforts. He learned this tendency is called ________.

A) conflict avoidance B) prestige slacking C) group incohesiveness D) social loafing Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 73) When compared to individuals, groups tend to take ________ time to reach a solution.

A) more B) less C) the same length of D) substantially less Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application 74) Social loafing has a positive impact on group performance.

Answer: FALSE Diff: 2 AACSB: Diverse and multicultural work environments Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept

24 Copyright © 2025 Pearson Education, Inc.

75) A group's performance potential depends, to a large extent, on the individual resources its members bring to the group.

Answer: TRUE Diff: 1 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 76) An individual's role in a group is not defined by the internal structure of the group.

Answer: FALSE Diff: 1 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 77) When Jada draws the group's attention back to the topic of discussion related to the group's purpose, she is performing a satisfaction role.

Answer: FALSE Diff: 1 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 78) One negative aspect about group norms is that being part of a group can increase an individual's antisocial actions.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 79) Groupthink occurs only when group members have a negative image of the group or the leader.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept

25 Copyright © 2025 Pearson Education, Inc.

80) Groupthink has the ability to undermine critical thinking in the group and harm the quality of decision making.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 81) Recent experiments indicate conformity levels in groups has increased since Asch's studies.

Answer: FALSE Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 82) Status can be a significant motivator with behavioral consequences when individuals and others perceive the individual's status similarly.

Answer: FALSE Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 83) Employees may not be motivated by job promotion opportunities due to status incongruence.

Answer: TRUE Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 84) Informal status is not as important as status conferred by the organization.

Answer: FALSE Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept

26 Copyright © 2025 Pearson Education, Inc.

85) Small groups consistently get better results than larger ones when the groups are engaged in problem solving.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 86) Social loafing is the tendency for an individual to expend less effort when working collectively than when working individually.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 87) The human relations view of conflict holds that conflict must be avoided because it indicates a problem within the group.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 88) When using the Nominal Group Technique, each group member presents their unique idea before any discussion begins about which solution is best.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 89) Brainstorming is an idea generation technique where group members critique each idea as it is presented.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept

27 Copyright © 2025 Pearson Education, Inc.

90) The more complex the task, the more a group benefits from group discussion about alternative work methods.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept 91) Describe various aspects of group structure.

Answer: a. Roles refer to behavior patterns expected of someone occupying a given position in a social unit. In a work group, these roles tend to be oriented toward either task accomplishment or toward maintaining group member satisfaction. b. Norms are standards or expectations that are accepted and shared by a group's members and that dictate work output levels, absenteeism, promptness, and the amount of socializing allowed on the job. Common organizational norms focus on effort and performance, dress, and loyalty. c. Because individuals want to be accepted by groups to which they belong, they're susceptible to conformity pressures. As group members we often want to be considered one of the group and to avoid being visibly different. So we conform. When an individual's opinion of objective data differs significantly from that of others in the group, the group often exerts extensive pressure on the individual to align his or her opinion to conform to others' opinions, a phenomenon known as groupthink. d. Status systems are an important factor in understanding behavior. They're a significant motivator and have behavioral consequences when individuals see a disparity between what they perceive their status to be and what others perceive it to be. e. If the goal of the group is to find facts, a larger group of a dozen or more members should be more effective. Smaller groups of seven or fewer are better at doing something productive with those facts. One important finding related to group size is social loafing, the tendency for an individual to expend less effort when working collectively than when working individually. f. Group cohesiveness, the degree to which members are attracted to a group and share the group's goals, is important because it has been found to be related to a group's productivity. g. Group processes concern such things as communication, decision making, conflict management, etc. These processes influence group performance and satisfaction.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept

28 Copyright © 2025 Pearson Education, Inc.

92) Shanice is the CEO of a manufacturing plant. She believes that smaller teams are more effective than larger ones. Do you think this is the right strategy? Why or why not?

Answer: Group size affects performance and satisfaction, but the effect depends on what the group is supposed to accomplish. Smaller teams would be effective for regular tasks that require control. Research indicates that small groups are faster at completing tasks than are larger ones.

However, for groups engaged in problem solving, large groups consistently get better results than smaller ones. Larger teams are preferred if the team needs diverse output. Smaller teams are preferred otherwise.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Application 93) Identify the advantages and disadvantages of group decision making.

Answer: Advantages a. Generate more complete information and knowledge: A group brings a diversity of experience and perspectives to the decision process that an individual cannot. b. More diverse alternatives: Because groups have a greater amount and diversity of information, they can identify more diverse alternatives than an individual. c. Increased acceptance of a solution: Group members are reluctant to fight or undermine a decision they have helped develop. d. Increased legitimacy: Decisions made by groups may be perceived as being more legitimate than decisions made unilaterally by one person.

Disadvantages a. Time consuming: Groups almost always take more time to reach a solution than it would take an individual. b. Minority domination: The inequality of group members creates the opportunity for one or more members to dominate others. A dominant and vocal minority frequently can have an excessive influence on the final decision. c. Pressures to conform: Groupthink undermines critical thinking in the group and eventually harms the quality of the final decision. d. Ambiguous responsibility: Group members share responsibility, but the responsibility of any single member is diluted.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Concept

29 Copyright © 2025 Pearson Education, Inc.

94) An organization must eliminate conflicts to be successful. Do you agree with this statement?

Justify your answer.

Answer: Not all conflicts are bad. Some conflicts, functional conflicts, are constructive and support the goals of the work group and improve its performance. Other conflicts, dysfunctional conflicts, are destructive and prevent a group from achieving its goals. Hence, an ideal strategy for a manager would be to eliminate dysfunctional conflicts and to promote functional conflicts.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 15.2: Describe the major components that determine group performance and satisfaction.

Classification: Analytical 95) A team has been established to solve a problem with an industrial adhesive used by the firm.

The three members are the installer, an engineer, and the sales representative for the adhesive manufacturer, but the team does not have a specific leader. This team can be called a ________ team.

A) problem solving B) self-managed C) virtual D) functional Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Application 96) Research evidence suggests that teams typically outperform individuals when ________.

A) one or more members are allowed to dominate the other team members B) projects are short-term and need quick solutions C) tasks require multiple skills, judgment, and experience D) tasks are simple and do not involve critical thinking Answer: C Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept

30 Copyright © 2025 Pearson Education, Inc.

97) ________ interact primarily to share information and to make decisions to help each member do his or her job more efficiently and effectively.

A) Informal groups B) Work groups C) Work teams D) Self-managed teams Answer: B Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept 98) A work group ________.

A) encourages open-ended discussions and active problem-solving meetings B) works intensely on a specific goal using their positive synergy C) measures performance directly by assessing collective work outputs D) has no need or opportunity to engage in collective work that requires joint effort Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept 99) A work team ________.

A) focuses on efficiency rather than collaboration B) has shared leadership roles C) measures performance based on its influence on others D) cannot be quickly refocused or disbanded Answer: B Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept 100) ________ are teams from the same department or functional area involved in efforts to improve work activities, though they are rarely given the authority to implement any of their suggested actions.

A) Self-managed teams B) Problem-solving teams C) Virtual teams D) Cross-functional teams Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept 31 Copyright © 2025 Pearson Education, Inc.

101) Jan's department seems to be a bottleneck in the assembly process. She and her coworkers have been meeting regularly to generate ideas that might eliminate the bottleneck. Jan and her coworkers are part of a ________ team.

A) self-managed B) problem-solving C) task D) cross-functional Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Application 102) Five employees on the production line working together determine which person is performing which tasks, who becomes a member of the team, and what resources are needed to accomplish the work. These employees do not have a specific leader. These employees comprise a ________ team.

A) problem solving B) self-managed C) virtual D) functional Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Application 103) Strato Engineering, a technology product company, formed a team to develop the next generation of the company's model CVF-D. The team is composed of employees from various functional areas. This is a ________ team.

A) problem-solving B) self-managed C) virtual D) cross-functional Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Application

32 Copyright © 2025 Pearson Education, Inc.

104) An organization brings together members from various departments such as marketing, accounting, human resources, and finance to form a team. This is an example of a ________ team.

A) cross-functional B) problem-solving C) self-managed D) functional Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept 105) Team 3 has been working together for several years, implementing modifications to the company's current product. None of the members of this team are at the same location. They utilize a variety of graphic-electronic technologies to view the product onscreen in threedimension at each location simultaneously. Which one of the following is the best way of describing Team 3?

A) Problem-solving B) Self-managed C) Virtual D) Cross-functional Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Application 106) It was amazing the team accomplished anything at all. It seemed they were always bickering and cross with each other, but their final output stunned management. Which one of the following might have contributed to their success?

A) Intrinsic rewards B) Type A personalities C) Clear goals D) Identical skills Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Application

33 Copyright © 2025 Pearson Education, Inc.

107) Utilimotors decided teams would help improve employee morale and increase profitability, so all employees were assigned to one of many different teams. The results were disappointing.

This might be because team ________.

A) performance was properly measured B) goals were clearly conveyed C) composition included the relevant mix of skills D) members lacked commitment Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Application 108) Leadership is very important to effective teams. In most cases, effective team leaders act as ________.

A) supervisors B) regulators C) controllers D) facilitators Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept 109) An incentive system which appropriately recognizes team activities is an example of which one of the following characteristics of effective teams?

A) Internal support B) Unified commitment C) Performance evaluation D) External support Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept

34 Copyright © 2025 Pearson Education, Inc.

110) Between 2019 and 2021 there was a ________ increase in the use of virtual collaboration platforms such as Slack or Microsoft Teams driven by the COVID-19 pandemic.

A) 22% B) 44% C) 57% D) 71% Answer: B Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept 111) ________ is creating more opportunities for humans to interact with machines.

A) Virtual teaming B) Design thinking C) Artificial intelligence D) Big data Answer: C Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept 112) Research suggests that individuals outperform teams when the tasks being done require multiple skills, judgment, and experience.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept 113) One important distinction between a work group and a work team is the degree of interdependence among the members.

Answer: TRUE Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept 114) Work teams interact primarily to share information and to make decisions to help each member do his or her job more efficiently and effectively.

Answer: FALSE Diff: 1 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept 35 Copyright © 2025 Pearson Education, Inc.

115) A problem-solving team brings together experts in various specialties to work together on various organizational tasks.

Answer: FALSE Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept 116) A self-managed team is a formal group of employees who operate without a manager and are responsible for a complete work process or segment.

Answer: TRUE Diff: 1 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept 117) A team that uses technology to link physically dispersed members in order to achieve a common goal is called a virtual team.

Answer: TRUE Diff: 1 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept 118) As the use of teams at work continues to increase, managers must become coaches who teach the skills of team membership.

Answer: TRUE Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept 119) One study found that using the Slack platform helped teams improve information sharing and transparency, increase informal communication, and lessen dependency on email.

Answer: TRUE Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept 120) Most managers believe that artificial intelligence will soon be able to replace most team members.

Answer: FALSE Diff: 2 AACSB: Interpersonal relations and teamwork Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept 36 Copyright © 2025 Pearson Education, Inc.

121) List and describe the four most common types of teams likely to be found in today's organizations.

Answer: a. Problem-solving teams - These teams are teams from the same department or functional area which are involved in efforts to improve work activities or to solve specific problems. In problem-solving teams, members share ideas or offer suggestions on how work processes and methods can be improved. However, these teams are rarely given the authority to unilaterally implement any of their suggested actions. b. Self-managed teams - These teams are formal groups of employees who operate without a manager and are responsible for a complete work process or segment. The self-managed team is responsible for getting the work done and for managing themselves. This usually includes planning and scheduling of work, assigning tasks to members, collective control over the pace of work, making operating decisions, and acting on problems. c. Cross-functional teams - These teams are a hybrid grouping of individuals who are experts in various specialties and who work together on various tasks. d. Virtual teams - These are teams that use computer technology to link physically dispersed members in order to achieve a common goal. In a virtual team, members collaborate using communication links such as wide area networks, videoconferencing, fax, e-mail, or even Web sites where the team can hold online conferences. Virtual teams can do all the things that other teams can–share information, make decisions, and complete tasks; however, they miss the normal give-and-take of face-to-face discussions. Because of this omission, virtual teams tend to be more task oriented, especially if the team members have never personally met.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 15.3: Define teams and best practices influencing team performance.

Classification: Concept

37 Copyright © 2025 Pearson Education, Inc.

Management, 16e (Robbins) Chapter 16 Being an Effective Leader 1) People who are able to influence others and who possess managerial authority are termed ________.

A) entrepreneurs B) leaders C) managers D) visionaries Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.1: Define leader and leadership.

Classification: Concept 2) An important aspect of leadership is influencing a group to achieve its goals.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.1: Define leader and leadership.

Classification: Concept 3) Early research on leadership traits ________.

A) sought to prove that charisma was an essential trait of leadership B) focused on behavioral traits rather than physical traits of a leader C) found consistent and unique traits that would apply to all effective leaders D) focused on characteristics that might differentiate leaders from nonleaders Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Concept 4) In his speech the previous day, the new CEO discussed his experience in the industry and his education. Carrie thought that the new CEO would do a great job given these characteristics, coupled with his good oratory skills and the fact that he just looked like a CEO. Carrie realized that she had been judging the new CEO in a manner consistent with the ________ theories of leadership.

A) trait B) behavioral C) contingency D) situational Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Application 1 Copyright © 2025 Pearson Education, Inc.

5) Trait theory ignores ________.

A) physical traits of leaders B) the aspects of honesty and integrity C) the interactions of leaders and their group members as well as situational factors D) the fact that leaders should be able to create visions and solve problems Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Concept 6) According to the University of Iowa studies, which one of the following describes the leadership style in which a leader tends to centralize authority, dictate work methods, make unilateral decisions, and limit employee participation?

A) Authoritarian style B) Autocratic style C) Democratic style D) Laissez-faire style Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Concept 7) In working with his employees, Carlos involves them in decision making and encourages them to participate in deciding their work methods and goals. According to the University of Iowa studies, Carlos's leadership style can best be described as ________.

A) autocratic B) laissez-faire C) democratic D) participative Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Application

2 Copyright © 2025 Pearson Education, Inc.

8) Bernard expects his employees to "check their brains at the door." He does all the thinking, makes all the decisions, and issues commands to his subordinates. Bernard uses the ________ style of leadership.

A) autocratic B) authoritarian C) democratic D) laissez-faire Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Application 9) According to the University of Iowa studies, the ________ style of leadership describes a leader who tends to involve employees in decision making, delegate authority, encourages participation in deciding work methods and goals, and uses feedback as an opportunity for coaching employees.

A) participative B) autocratic C) democratic D) laissez-faire Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Concept 10) Barbara solicits input from her subordinates before making decisions that will affect them.

She often praises them for good work and gently offers suggestions to improve their performance. According to the University of Iowa studies, Barbara uses the ________ style of leadership.

A) autocratic B) participative C) democratic D) supportive Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Application

3 Copyright © 2025 Pearson Education, Inc.

11) Which one of the following describes the leadership style in which the leader generally gives the group complete freedom to make decisions and complete the work in whatever way it sees fit?

A) Facilitative style B) Delegative style C) Democratic style D) Laissez-faire style Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Concept 12) Connie sees her role as someone who provides direction and resources for her team then gets out of their way and lets them do their work however they think best. According to the University of Iowa studies, Connie uses the ________ style of leadership.

A) autocratic B) participative C) facilitative D) laissez-faire Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Application 13) According to the University of Iowa behavioral studies, group members' satisfaction levels were generally ________.

A) higher under a supportive leader in the long run B) improved when the leader was production oriented C) maintained when the leader was directive in the short run D) higher under a democratic leader than under an autocratic one Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Concept

4 Copyright © 2025 Pearson Education, Inc.

14) When employee satisfaction is measured, employees seemed to be more satisfied under a ________ leadership style than under a(n) ________ one.

A) laissez-faire; participative B) supportive; laissez-faire C) democratic; directive D) democratic; autocratic Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Concept 15) According to the Ohio State studies, ________ refers to the extent to which a leader is likely to define and shape his or her role and the roles of group members in the search for goal attainment.

A) people orientation B) production orientation C) initiating structure D) consideration Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Concept 16) According to the Ohio State studies, the ________ dimension of leader behavior is defined as the extent to which a leader has job relationships characterized by mutual trust and respect for group members' ideas and feelings.

A) relationship management B) consideration C) people orientation D) integrity Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Concept

5 Copyright © 2025 Pearson Education, Inc.

17) Susan has a reputation of being fair, helpful, and understanding. She even helped her subordinate overcome a personal crisis. According to the Ohio State studies, which one of the following dimensions of leadership is Susan displaying here?

A) Consideration B) Initiating structure C) Employee orientation D) Task orientation Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Application 18) The University of Michigan studies used the two dimensions of ________ and ________ to study behavioral characteristics of leaders.

A) employee oriented; production oriented B) consideration; initiating structure C) task; people D) decision-making; employee development Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Concept 19) The managerial grid used the behavioral dimensions "concern for people" and "concern for ________" and evaluated a leader's use of these behaviors, ranking them on a scale from 1 (low) to 9 (high).

A) integrity B) profit C) environment D) production Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Concept 20) Despite the best efforts of researchers, it proved impossible to identify one set of traits that would always differentiate leaders from nonleaders.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Concept

6 Copyright © 2025 Pearson Education, Inc.

21) Effective leaders do not need a high degree of knowledge about the company, industry, and technical matters.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Concept 22) Cognitive theories are leadership theories that identified behaviors that differentiated effective leaders from ineffective leaders.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Concept 23) According to the University of Michigan studies, leaders who are production oriented are described as emphasizing interpersonal relationships and as taking a personal interest in the needs of their followers.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Concept 24) The managerial grid only provides a framework for conceptualizing leadership style.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Concept

7 Copyright © 2025 Pearson Education, Inc.

25) In a short essay, identify four traits associated with leadership and give an example of each.

Answer: Students should identify four traits associated with leadership that include: a. Drive - Leaders exhibit a high effort level. They have a relatively high desire for achievement; they are ambitious; they have a lot of energy; they are tirelessly persistent in their activities; and they show initiative. Bill Gates built Microsoft into a successful corporation. b. Desire to lead - Leaders have a strong desire to influence and lead others. They demonstrate a willingness to take responsibility. Managers seeking promotions generally have a desire to lead. c. Honesty and integrity - Leaders build trusting relationships between themselves and followers by being truthful or non-deceitful and by showing high consistency between word and deed.

Sherron Watkins blew the whistle on Enron. d. Self-confidence - Followers look to leaders for an absence of self-doubt. Leaders, therefore, need to show self-confidence in order to convince followers of the rightness of their goals and decisions. Steve Jobs had confidence in himself and his employees. e. Intelligence - Leaders need to be intelligent enough to gather, synthesize, and interpret large amounts of information, and they need to be able to create visions, solve problems, and make correct decisions. Jack Welch of GE was a very intelligent man. f. Job-relevant knowledge - Effective leaders have a high degree of knowledge about the company, industry, and technical matters. In-depth knowledge allows leaders to make wellinformed decisions and to understand the implications of those decisions. Steve Jobs knew the electronics industry and market very well. g. Extraversion - Leaders are energetic, lively people. They are sociable, assertive, and rarely silent or withdrawn. Herb Kelleher of Southwest Airlines was extraverted. h. Proneness to guilt - Guilt proneness is positively related to leadership effectiveness because it produces a strong sense of responsibility for others. Mary Barra of General Motors has accepted corporate guilt for the poor quality of GM cars amid numerous recalls.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Concept

8 Copyright © 2025 Pearson Education, Inc.

26) In a short essay, contrast the three major behavior studies on leadership.

Answer: a. The University of Iowa studies explored three leadership styles. The autocratic style leader tends to centralize authority, dictate work methods, make unilateral decisions, and limit employee participation. The democratic style leader tends to involve employees in decision making, delegate authority, encourage participation in deciding work methods and goals, and use feedback as teaching moments. The laissez-faire style leader gives the group complete freedom to make decisions and complete the work in whatever way it sees fit. The research of Lewin and his associates seemed to indicate that the democratic style contributed to both good quantity and quality of work. b. The Ohio State studies identified two dimensions of leader behavior. Initiating structure is the extent to which a leader defined and structured his/her role and the roles of group members in the search for goal attainment, including behavior that involved attempts to organize work, work relationships, and goals. Consideration is the extent to which a leader has job relationships characterized by mutual trust and respect for group members' ideas and feelings. A leader who was high in consideration helped group members with personal problems, was friendly and approachable, and treated all group members as equals. (S)he showed concern for her/his followers' comfort, well-being, status, and satisfaction. c. The University of Michigan researchers came up with two dimensions of leadership behavior.

Employee oriented leaders emphasized interpersonal relationships, took a personal interest in their followers, and accepted individual differences among group members. Production oriented leaders tended to emphasize the technical aspects of the job, were concerned mainly with accomplishing their group's tasks, and regarded group members as a means to that end. The researchers concluded leaders who were employee oriented were associated with high group productivity and high job satisfaction.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 16.2: Compare and contrast early theories of leadership.

Classification: Concept 27) To measure a leader's style, Fiedler developed the ________.

A) contingency grid B) situational leadership theory C) managerial grid D) least-preferred co-worker questionnaire Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept

9 Copyright © 2025 Pearson Education, Inc.

28) The ________ model proposed that effective group performance depended upon the proper match between the leader's style of interacting with his or her followers and the degree to which the situation allowed the leader to control and influence.

A) Fiedler contingency B) situational leadership C) University of Michigan D) path-goal Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 29) Fiedler would expect that the best leadership style was a function of ________.

A) leader-member relations, task structure, and position power B) formal authority, production orientation, and consideration C) chain of command, relationships, and power D) situation, personality of leader, and readiness of employees Answer: A Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 30) Fiedler's dimension termed ________ is the degree of confidence, trust, and respect subordinates have for their leader.

A) leader-member relations B) position power C) task structure D) leader-member exchange Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 31) The degree to which the job assignments are formalized and arranged is the ________ contingency dimension identified by Fiedler.

A) production orientation B) initiating structure C) task structure D) organizational structure Answer: C Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 10 Copyright © 2025 Pearson Education, Inc.

32) Fiedler's term ________ refers to the degree of influence a leader has over power-based activities.

A) leader-member relations B) position power C) responsibility D) task structure Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 33) Fiedler assumed a person's leadership style was ________.

A) contingent upon the situation B) relatively flexible C) democratic D) fixed Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 34) Research by Fiedler uncovered three contingency dimensions that define the key ________.

A) situational factors for determining leader effectiveness B) follower factors for determining leader effectiveness C) leader behavior factors for determining leader effectiveness D) situational factors for determining follower effectiveness Answer: A Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 35) Reviews of the major studies undertaken to test the overall validity of Fiedler's model have shown ________.

A) considerable evidence to refute the model B) mixed results with some studies supporting the model and others refuting it C) support for only part of the model D) considerable evidence to support the model Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept

11 Copyright © 2025 Pearson Education, Inc.

36) Jack emphasizes to his people that the work must be done, regardless of circumstances, and encourages his employees to meet their sales quotas. He is generally liked, but because sales are unstructured, sometimes his employees resent his rather heavy-handed approach. Fiedler's contingency model would classify Jack as ________ oriented.

A) employee B) organization C) task D) relationship Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Application 37) Jill has tried hard to build good rapport with her employees and knows each of their families.

She encourages her employees to work hard, but to be certain to take time out for themselves and their families. Fiedler's contingency model would classify Jill as ________ oriented.

A) production B) consideration C) task D) relationship Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Application 38) The ________ leadership theory is a contingency theory that focuses on followers' readiness.

A) adaptive B) situational C) adjustable D) facilitative Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept

12 Copyright © 2025 Pearson Education, Inc.

39) According to Hersey and Blanchard, a high task-low relationship situation calls for the ________ leadership style.

A) delegating B) telling C) participating D) selling Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 40) The "telling" style of Hersey and Blanchard is most like the ________ style of the University of Iowa studies.

A) laissez-faire B) democratic C) autocratic D) participative Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 41) Which one of the following leadership styles describes a leader who provides both directive and supportive behavior?

A) Telling B) Selling C) Participating D) Delegating Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept

13 Copyright © 2025 Pearson Education, Inc.

42) Chuck manages the front-end crew at a fast food restaurant. For most of his crew, this is their first job, so they have very few job skills but also seem reluctant to perform. In this situation, Chuck should use the ________ style.

A) telling B) selling C) participating D) delegating Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Application 43) Marcella has been on the job only a few days. She still has a lot to learn but pays close attention whenever her job coach gives her tips. The best style for the job coach to use is ________.

A) telling B) selling C) participating D) delegating Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Application 44) Jeremy is not in the habit of deciding everything on his own. He involves his team in the decision-making process as much as possible. He believes in communicating clearly and is always ready to help his team to get the best out of them. Jeremy's leadership style will be classified as which of the following?

A) Telling B) Selling C) Participating D) Delegating Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Application

14 Copyright © 2025 Pearson Education, Inc.

45) Which one of the following leadership styles describes a leader who provides little direction or support?

A) Telling B) Selling C) Participating D) Delegating Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 46) Which leadership theory asserts that a leader's job is to assist followers in attaining their goals and to ensure that their goals are compatible with the goals of the group or organization?

A) Fiedler's Theory B) Leader-Member Exchange C) Leader Participation Model D) Path-Goal Theory Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 47) According to the path-goal theory, a leader who lets subordinates know what's expected of them, schedules work to be done, and gives specific guidance as to how to accomplish tasks is termed ________.

A) directive B) achievement-oriented C) participative D) supportive Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept

15 Copyright © 2025 Pearson Education, Inc.

48) According to the path-goal theory, a manager who consults with subordinates and uses their suggestions exhibits what type of leadership behavior?

A) Directive B) Achievement oriented C) Participative D) Supportive Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 49) According to the path-goal theory, a leader who is friendly and shows concern for the needs of subordinates is termed ________.

A) directive B) achievement oriented C) participative D) supportive Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 50) Alex is an achievement-oriented leader by his team. Which one of the following would describe Alex's leadership style best?

A) He lets subordinates know what's expected of them, schedules work to be done, and gives specific guidance on how to accomplish tasks.

B) He shows concern for the needs of his subordinates and is friendly.

C) He sets challenging goals and expects subordinates to perform at their highest level.

D) He consults with subordinates and uses their suggestions before making a decision.

Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Application

16 Copyright © 2025 Pearson Education, Inc.

51) Brooke has decided that the appropriate leadership style would be to show friendliness and concern for the needs of her subordinates. According to the path-goal model, she wishes to be considered a ________ leader.

A) relationship-oriented B) participative C) supportive D) considerate Answer: C Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 52) The path-goal theory is a model of leadership that extracts key elements from the ________ theory of motivation.

A) situational leadership B) LMX C) contingency D) expectancy Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 53) Dontrell generally lets subordinates know what's expected of them, schedules work to be done, and gives specific guidance on how to accomplish tasks. He would be termed a ________ leader.

A) high-structure B) situational C) supportive D) directive Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Application

17 Copyright © 2025 Pearson Education, Inc.

54) Which one of the following would support Evelyn's attempt at becoming a participative leader?

A) She lets subordinates know what's expected of them, schedules work to be done, and gives specific guidance as to how to accomplish tasks.

B) She is friendly and shows concern for the needs of subordinates.

C) She consults her subordinates and uses their suggestions before making a decision.

D) She sets challenging goals and expects subordinates to perform at their highest level.

Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Application 55) Lately, Francesca has been setting challenging goals and expecting subordinates to perform at their highest level. According to the path-goal model, she is acting as a(n) ________ leader.

A) achievement-oriented B) high structure C) production-oriented D) high task Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Application 56) When Fred recently met with the employees to let them know the product schedules and what he expected of them, he displayed which one of the following Path-Goal theory leadership styles?

A) Directive B) Supportive C) Participative D) Achievement-oriented Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Application

18 Copyright © 2025 Pearson Education, Inc.

57) Which one of the following is included in the class of contingency variables termed "environment" by the path-goal theory?

A) Task structure and formal authority system B) Locus of control and experience C) Perceived ability D) Employee satisfaction Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 58) Which one of the following is included in the class of contingency variables termed "follower" by the path-goal theory?

A) Locus of control B) Work group relationships C) Employee compensation D) Formal authority system Answer: A Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 59) According to the path-goal model, when Ginger spends time with the employees so they can see that she is friendly and has concern for them, she displays which one of the following leadership styles?

A) Considerate B) Supportive C) Participative D) People-oriented Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Application

19 Copyright © 2025 Pearson Education, Inc.

60) According to the path-goal model, when Hakeem consults with the employees for suggestions prior to making a decision, he displays which one of the following leadership styles?

A) Considerate B) Supportive C) Participative D) Democratic Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Application 61) According to the path-goal model, when Hannah meets with the employees to establish challenging goals and expectations for the next financial year, she displays which one of the following leadership styles?

A) Task-oriented B) Production-oriented C) Democratic D) Achievement-oriented Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Application 62) According to the path-goal theory, directive leadership will lead to higher employee satisfaction when there is ________ within a work group.

A) cohesiveness B) high structure C) ambiguity D) an internal locus of control Answer: C Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept

20 Copyright © 2025 Pearson Education, Inc.

63) According to the path-goal theory, employee performance and leadership style are likely to be positively related when ________.

A) the leader adopts a directive style when the tasks are clear, and the employee has the experience and the ability to handle them B) the leader displays directive behavior at all times C) the leadership style compensates for shortcomings in either the employee or the work setting D) the leader adopts a directive style of leadership with followers who have an internal locus of control Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 64) Fiedler's contingency model of leadership style proposed that effectiveness depends on the ability and willingness of the subordinates.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 65) The least-preferred coworker questionnaire measures whether a leader is task- or relationship-oriented.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 66) Fiedler's model assumed that the leader's style was fixed regardless of the situation.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 67) According to Fiedler's research, task-oriented leaders tended to perform better in situations that are very favorable to them and in situations that were very unfavorable.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept

21 Copyright © 2025 Pearson Education, Inc.

68) Derek heads a team of ten research analysts in Deutsche Bank. Even though he is least impressed with Cara among all his subordinates, when asked about her work he chose to focus on her strengths rather than her weaknesses. Derek can be described as a task-oriented leader.

Answer: FALSE Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Application 69) According to Robert House's path-goal theory, a supportive leader lets subordinates know what's expected of them, schedules the work to be done, and gives specific guidance on how to accomplish tasks.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 70) Robert House's achievement-oriented leader sets challenging goals and expects followers to perform at their highest level.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 71) Robert House assumed that leaders could change leadership styles depending on the situation.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 72) Path-goal theory holds that subordinates with an external locus of control will be more satisfied with a directive style.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept

22 Copyright © 2025 Pearson Education, Inc.

73) The path-goal theory states that employee performance and satisfaction are likely to be positively influenced when the leader chooses a leadership style that compensates for shortcomings in either the employee or the work setting.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 74) In a short essay, discuss the situational leadership theory developed by Paul Hersey and Ken Blanchard. Next, list and discuss the four specific leadership styles as defined by them.

Answer: The situational leadership theory is a contingency theory that focuses on followers' readiness. Hersey and Blanchard argue that successful leadership is achieved by selecting the right leadership style, which is contingent on the level of the followers' readiness. The emphasis on the followers in leadership effectiveness reflects the reality that it is the followers who accept or reject the leader. Regardless of what the leader does, effectiveness depends on the actions of his or her followers. Readiness refers to the extent to which people have the ability and willingness to accomplish a specific task. The four specific leadership styles are as follows: a. Telling (high task-low relationship) - The leader defines roles and tells people what, how, when, and where to do various tasks. b. Selling (high task-high relationship) - The leader provides both directive and supportive behavior. c. Participating (low task-high relationship) - The leader and follower share in decision making; the main role of the leader is facilitating and communicating. d. Delegating (low task-low relationship) - The leader provides little direction or support.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 75) In a short essay discuss the stages of readiness from the situational leadership theory developed by Hersey and Blanchard. Give an example for each stage.

Answer: a. R1-People are both unable and unwilling to take responsibility for doing something. They're neither competent nor confident. A person with no job skills and no desire to work falls into this state. b. R2-People are unable but willing to do the necessary job tasks. They're motivated but currently lack the appropriate skills. This may be a teen in her first job. c. R3-People are able but unwilling to do what the leader wants. The worker who claims "Not in my job description" is at this stage. d. R4-People are both able and willing to do what is asked of them. These are the workers all supervisors seek - those who can and will do what is asked.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 16.3: Describe the three major contingency theories of leadership.

Classification: Concept 23 Copyright © 2025 Pearson Education, Inc.

76) When Alan was promoted to the head of the sales team at Mac Software Inc., he chose three of his closest friends in the team to form the core sales group with him. Which one of the following predictions would be consistent with the LMX theory?

A) Such an arrangement eventually becomes unstable.

B) Job satisfaction is more likely to be higher for the team members who are not a part of the core group.

C) Team members who are not a part of Alan's core group are actually far more competent than his friends who form the core team.

D) There will be a higher turnover among team members who are not a part of the core group.

Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Application 77) Adrienne receives more attention and information from her supervisor than some of her coworkers. Because she feels "special," she puts more effort into her performance and scores higher on her evaluations. According to LMX theory, Adrienne is a ________.

A) naturally high achiever B) member of the in-group C) member of the out-group D) task-oriented employee Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Application 78) Bill expects his employees to wonder "What's in it for me?" when he assigns extra tasks to them, so he is ready with an answer about the reward for their work. Bill is a ________ leader.

A) situational B) transformational C) transactional D) charismatic Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Application

24 Copyright © 2025 Pearson Education, Inc.

79) Which one of the following is an accurate statement about transformational leaders?

A) They are poor motivators.

B) They clarify task requirements.

C) They exhibit more than just charisma.

D) They focus on tasks and pay little attention to followers.

Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 80) Rachel's colleagues and subordinates have a very high regard for her. They know that no one can get high-quality work done the way Rachel can. She inspires her team to excel in their work, even exceeding their own expectations. What her subordinates like best about Rachel is that they are free to discuss her decisions with her, even question her once in while if they are not sure about her strategy. Which one of the following best describes Rachel's leadership style?

A) Transactional B) Charismatic C) Authentic D) Transformational Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Application 81) A leader, such as Bill Gates of Microsoft, who can inspire followers above their own selfinterests and can have a profound effect on their performance, is known as a(n) ________ leader.

A) transactional B) directive C) informational D) transformational Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept

25 Copyright © 2025 Pearson Education, Inc.

82) The evidence supporting the superiority of transformational leadership over the transactional style is ________.

A) inconclusive B) moderately supportive C) moderately negative D) overwhelmingly impressive Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 83) Evidence indicates that transformational leadership is strongly correlated with ________.

A) lower turnover rates and lower levels of goal attainment and follower well-being B) lower turnover rates and higher levels of productivity and creativity C) higher turnover rates and lower levels of productivity and employee satisfaction D) higher turnover rates and higher levels of employee satisfaction and follower well-being Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 84) Joanna has a very clear idea of what she wants her team to accomplish and often works that idea into conversations with her subordinates. She uses unconventional and sometimes controversial means to achieve her ends, but her subordinates know she has their backs. Joanna can be described as a(n) ________ leader.

A) telling B) charismatic C) authoritative D) participative Answer: B Diff: 2 AACSB: Analytical thinking; Application of knowledge Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Application

26 Copyright © 2025 Pearson Education, Inc.

85) If Rhonda is a charismatic leader, which one of the following characteristics is she most likely to possess?

A) A strong need to be in control B) A lack of sensitivity to environmental constraints C) An external locus of control D) A willingness to take risks to achieve her vision Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Application 86) Researchers who train individuals to use charismatic nonverbal behaviors do not recommend ________.

A) leaning toward the subordinate B) avoiding eye contact C) having relaxed posture D) having animated facial expressions Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 87) ________ leaders have a vision, the ability to articulate that vision and a willingness to take risks to achieve that vision.

A) Visionary B) Charismatic C) Trait D) Transactional Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept

27 Copyright © 2025 Pearson Education, Inc.

88) Cecil, CEO of a mid-size manufacturing company, readily accepts responsibility for his firm's products, including its mistakes. He is rather quiet but still a strong leader. Cecil could be called a(n) ________ leader.

A) charismatic B) supportive C) transformational D) authentic Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Application 89) Many charismatic leaders exhibit some of the same behaviors as ________.

A) Machiavellian leaders B) psychopaths C) narcissists D) sociopaths Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 90) ________ leaders move beyond their own self-interest to help followers grow and develop.

A) Servant B) Authentic C) Charismatic D) Transformational Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 91) Which of these individuals would likely be classified as a servant leader?

A) Richard Branson B) Mary Barra C) Martin Luther King, Jr. D) Steve Jobs Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept

28 Copyright © 2025 Pearson Education, Inc.

92) ________ occurs when a leader arises from the group instead of being appointed.

A) Followership B) Authentic leadership C) Charismatic leadership D) Emergent leadership Answer: D Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 93) Leaders are only as effective as their ability to ________.

A) engage followers B) succeed and fail C) manipulate others D) earn profits for the firm Answer: A Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 94) The CEO of Delta Air Lines, Ed Bastian, is recognized as a(n) ________ leader.

A) charismatic B) ethical C) transformational D) servant Answer: B Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 95) Emergent leaders are those who are perceived by their peers as being leaderlike and accepted as the informal leader.

Answer: TRUE Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 96) Servant leaders are only found in religious or nonprofit organizations.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 29 Copyright © 2025 Pearson Education, Inc.

97) Members of a manager's in-group tend to have multiple similarities with the manager.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 98) According to LMX theory, the leader chooses the in-group, but the job requirements drive the decision.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 99) Transactional and transformational leadership are opposing approaches to getting things done.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 100) Ethical top leadership not only influences direct followers, but also spreads all the way down the command structure, because top leaders set expectations and expect lower-level leaders to behave consistent with ethical guidelines.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 101) People working for charismatic leaders are motivated to exert extra work effort but express lower satisfaction.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 102) Charisma is an essential quality that leaders must possess to achieve high levels of employee performance.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 30 Copyright © 2025 Pearson Education, Inc.

103) Charisma is the ability to create and articulate a realistic, credible, attractive vision of the future for any organization or organizational unit that grows out of and improves on the present.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 104) A vision should offer clear and compelling imagery that taps into people's emotions and inspires enthusiasm to pursue the organization's goals.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 105) Authentic leadership emphasizes the moral side of business.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 106) Ethical leaders place public safety ahead of profits.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 107) In a short essay, differentiate between transactional and transformational leaders.

Answer: Transactional leaders are those who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. Transformational leaders, however, pay attention to the concerns and developmental needs of individual followers. They change followers' awareness of issues by helping them look at old problems in new ways. They are able to excite, arouse, and inspire followers to put in extra effort to achieve group goals.

Transformational leadership produces levels of employee effort and performance that go beyond what would occur in a transactional approach alone.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept

31 Copyright © 2025 Pearson Education, Inc.

108) Compare and contrast charismatic and authentic leadership.

Answer: Charismatic leaders are enthusiastic, self-confident leaders whose personality and actions influence people to behave in certain ways. They have a vision, the ability to articulate that vision, and a willingness to take risks to achieve that vision. They are sensitive to both environmental constraints and follower needs. Sometimes their behaviors are out of the ordinary.

Charismatic leaders believe in the future, themselves, and a higher purpose. Followers may attribute heroic or extraordinary leadership abilities to charismatic leaders when they observe certain behavior. Authentic leaders focus on the moral aspects of being a leader. These people know who they are, know what they believe in, and act on those values and beliefs openly and candidly. Authentic leaders are known for their humility; they are quieter, more in the background, and empower their employees.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 16.4: Describe contemporary views of leadership.

Classification: Concept 109) Two traits unique to most leaders are ________.

A) above-average height and blue eyes B) conscientiousness and narcissism C) intelligence and narcissism D) intelligence and conscientiousness Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.5: Compare the various theories of leadership for their validity.

Classification: Application 110) A leader who cares about their followers would most likely exhibit ________.

A) relations-oriented behavior B) change-oriented behavior C) narcissistic behavior D) task-oriented behavior Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.5: Compare the various theories of leadership for their validity.

Classification: Application

32 Copyright © 2025 Pearson Education, Inc.

111) Leaders that exhibit change-oriented behavior tend to ________.

A) discourage followers from generating new ideas B) encourage innovative thinking C) be focused on one facet of the organization D) prefer structure and production efficiency Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.5: Compare the various theories of leadership for their validity.

Classification: Application 112) Experienced employees that don't require close supervision may find task-oriented behavior in a new leader to be ________.

A) refreshing B) insulting C) important D) ineffective Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 16.5: Compare the various theories of leadership for their validity.

Classification: Application 113) In general, workers with high levels of ability ________.

A) do not like constructive criticism B) are difficult to manage C) require minimal supervision D) do not respond well to technical advice Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.5: Compare the various theories of leadership for their validity.

Classification: Application 114) A leader's effectiveness does not depend on the followers' experience.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.5: Compare the various theories of leadership for their validity.

Classification: Concept 115) Workers with high levels of ability require minimal supervision.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.5: Compare the various theories of leadership for their validity.

Classification: Concept 33 Copyright © 2025 Pearson Education, Inc.

116) A relations-oriented leadership style works well in any culture.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.5: Compare the various theories of leadership for their validity.

Classification: Concept 117) A task-oriented leader focuses on the needs of their followers.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.5: Compare the various theories of leadership for their validity.

Classification: Concept 118) Leaders that exhibit change-oriented behavior are more likely to encourage innovation.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.5: Compare the various theories of leadership for their validity.

Classification: Concept 119) Leadership traits play a small role in effective leadership and depend on situational factors.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.5: Compare the various theories of leadership for their validity.

Classification: Concept 120) The more experience an employee has, the less dependent they are on a leader.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.5: Compare the various theories of leadership for their validity.

Classification: Concept 121) Transformational leadership does appear to be related to employee commitment, trust, satisfaction, and performance.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.5: Compare the various theories of leadership for their validity.

Classification: Concept

34 Copyright © 2025 Pearson Education, Inc.

122) Juan is the person employees go to when knowledge of a topic was needed. Juan holds ________ power.

A) legitimate B) reward C) referent D) expert Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Application 123) All of the following are sources of leader power except ________.

A) legitimate B) status C) expert D) coercive Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept 124) Which one of the following is the type of power a person has because of his or her position in the formal organizational hierarchy?

A) Legitimate power B) Coercive power C) Reward power D) Expert power Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept 125) Sam is the manager at a department store. He has 20 employees working for him who are mostly unhappy and discontented with the way he threatens them for even minor errors. Which one of the following statements is likely to be true about Sam? A) Sam is a transactional leader.

B) Sam is using coercive power to get the job done.

C) Sam is a telling leader.

D) Sam is using referent power to get the job done.

Answer: B Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Application 35 Copyright © 2025 Pearson Education, Inc.

126) Tamera is the person employees go to when they need help with difficult work problems, as with software applications. Tamera holds ________ power.

A) legitimate B) coercive C) reward D) expert Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Application 127) Kay is the supervisor that the employees go to for task-related decisions. Kay holds ________ power.

A) reward B) expert C) legitimate D) coercive Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Application 128) Clay is a transactional leader who can provide tangible rewards for good performance for his employees. Clay holds ________ power.

A) reward B) legitimate C) coercive D) referent Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Application

36 Copyright © 2025 Pearson Education, Inc.

129) Marsha is the manager at a bank, with 30 employees reporting to her. Many of her staff are extremely impressed with the way she handles her work and the people at the bank. They take pride in being associated with her team. She is not only fair and understanding, but ensures that the deserving employees are compensated well. Which two sources of power does Marsha use in this example?

A) Reward and referent power B) Referent and coercive power C) Expert and reward power D) Referent and expert power Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Application 130) Your firm's attorney exercises ________ power when giving legal advice.

A) legitimate B) status C) expert D) coercive Answer: C Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept 131) ________ power is the power that arises because of a person's desirable resources or personal traits.

A) Expert B) Referent C) Reward D) Legitimate Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept

37 Copyright © 2025 Pearson Education, Inc.

132) When a young child emulates a professional sports star's behavior, what kind of power does the star have over the child?

A) Legitimate B) Expert C) Coercive D) Referent Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Application 133) The most dominant component of credibility is ________.

A) expertise B) status C) authority D) honesty Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept 134) The dimension of trust that is used to describe honesty and truthfulness is ________.

A) integrity B) competence C) consistency D) loyalty Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept 135) Shaun is the manager of a warehouse operated by a department store. He is trusted by his subordinates because he shares information freely, is reliable, and shows extremely good judgment while handling any type of crisis. Shaun is also known to be very protective of his staff. Which dimensions of trust is he exhibiting?

A) Integrity and loyalty B) Competence and openness C) Consistency, loyalty, and openness D) Loyalty, consistency, and competence Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Application 38 Copyright © 2025 Pearson Education, Inc.

136) One general conclusion that surfaces from leadership research is that ________.

A) effective leaders do not use any single style B) managers always make good team leaders C) national culture is one situational variable which in reality has a limited impact on leadership style D) women usually make better transactional leaders than men Answer: A Diff: 1 AACSB: Diverse and multicultural work environments Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept 137) Which of these actions will help you be seen as trustworthy?

A) Share ideas and information freely.

B) Keep your opinions to yourself.

C) Show concern for everyone.

D) Keep records of all conversations.

Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Application 138) Leaders of virtual teams ________.

A) need to develop strong verbal skills for teleconferencing B) should focus primarily on developing their technical leadership skills C) do not need interpersonal skills since personal interaction is limited D) need the ability to communicate support and leadership through writing Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Application 139) Organizations with formalized goals, well-defined rules and procedures and cohesive work groups may require ________.

A) less formal leadership B) more formal leadership C) charismatic leadership D) relational leadership Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Application

39 Copyright © 2025 Pearson Education, Inc.

140) Using artificial intelligence (AI) requires ________.

A) literacy in AI B) a computer science degree C) an extremely high level of intelligence D) very expensive computing equipment Answer: A Diff: 1 AACSB: Analytical thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Application 141) Which of the following is NOT one of the three paths leaders can use to engage with artificial intelligence (AI)?

A) Through individual learning and self-study B) Through third party training resources C) Through advanced degrees in computer science D) Through the development of internal AI training Answer: C Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Application 142) Most firms offer leadership development training at all management levels.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept 143) Virtual environments work against people with strong verbal skills.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept 144) Coercive power and reward power are synonymous.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept

40 Copyright © 2025 Pearson Education, Inc.

145) Referent power is based primarily on a person's expertise.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept 146) Legitimate power is inherent in management positions.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept 147) Reward power is the power that arises because of a person's desirable resources or personal traits.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept 148) Credibility is the degree to which followers perceive someone as honest, competent, and able to inspire.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept 149) Of the five dimensions that make up the concept of trust, loyalty seems to be the most critical when someone assesses another's trustworthiness.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept 150) Servant leaders go beyond their self-interest and focus on opportunities to help followers grow and develop.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept

41 Copyright © 2025 Pearson Education, Inc.

151) With enough training, anyone can become an effective leader.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept 152) Leadership training works best with individuals who are high self-monitors.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept 153) The presence of routine tasks, formal goals and explicit rules make leadership unnecessary.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept 154) Discuss the five sources in which leader power has been identified. Include specific examples of each source of power to support your answer.

Answer: a. Legitimate power - Represents the power a leader has as a result of his or her position in the organization. People in positions of authority are also likely to have reward or coercive power, but legitimate power is broader than the power to coerce and reward. b. Coercive power - The power that rests on the leader's ability to punish or control. Followers react to this power out of fear of the negative results that might occur if they did not comply. As a manager, you typically have some coercive power, such as being able to suspend or demote employees or to assign them work they find unpleasant or undesirable. c. Reward power - The power to give positive benefits or rewards. These rewards can be anything that another person values. In an organizational context, that might include money, favorable performance appraisals, promotions, interesting work assignments, friendly colleagues, and preferred work shifts or sales territories. d. Expert power - Influence that's based on expertise, special skills, or knowledge. As jobs have become more specialized, managers have become increasingly dependent on staff "experts" to achieve the organization's goals. If an employee has skills, knowledge, or expertise that's critical to the operation of a work group, that person's expert power is enhanced. e. Referent power - The power that arises because of a person's desirable resources or personal traits. Referent power develops out of admiration of another and a desire to be like that person. If you admire someone to the point of modeling your behavior and attitudes after him or her, that person has referent power over you.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept 42 Copyright © 2025 Pearson Education, Inc.

155) Explain the various substitutes for leadership and give examples of situations when leadership may not be necessary.

Answer: Research indicates that in some situations any behaviors a leader exhibits are irrelevant. Follower characteristics such as experience, training, professional orientation, or need for independence can neutralize the effect of leadership. These characteristics can replace the employee's need for a leader's support or ability to create structure and reduce task ambiguity.

Similarly, jobs that are inherently unambiguous and routine or intrinsically satisfying may place fewer demands on leaders. Finally, such organizational characteristics as explicit formalized goals, rigid rules and procedures, or cohesive work groups can substitute for formal leadership.

[Student examples will vary but should incorporate the conditions mentioned above.]

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 16.6: Discuss 21st-century issues affecting leadership.

Classification: Concept

43 Copyright © 2025 Pearson Education, Inc.

Management, 16e (Robbins) Chapter 17 Managing Communication 1) For communication to be successful, meaning must be imparted and ________.

A) received by the other person B) acknowledged by the receiver C) feedback must be sent back to the sender D) understood by the receiver Answer: D Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 17.1: Define the nature and function of communication.

Classification: Concept 2) Good communication occurs only when the recipient ________.

A) agrees with the sender's message B) acknowledges the message C) understands the speaker's meaning D) makes eye contact with the speaker Answer: C Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.1: Define the nature and function of communication.

Classification: Concept 3) In which one of the following cases has communication occurred?

A) Gary updates his blog regularly, even though no one reads it.

B) Brian attends all the Algebra lectures, but is unable to understand the subject.

C) Jen has sent an urgent e-mail to her Japanese colleague, but a translator is not yet available.

D) Ana tells her manager that she needs a new computer, but he says that the company can't afford it.

Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 17.1: Define the nature and function of communication.

Classification: Application

1 Copyright © 2025 Pearson Education, Inc.

4) ________ consists of all the patterns, networks, and systems of communication within an organization.

A) The grapevine B) Interpersonal communication C) Organizational communication D) Formal communication Answer: C Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.1: Define the nature and function of communication.

Classification: Concept 5) George prepares a memorandum explaining the objectives of a newly created work team that he is expected to manage, and makes sure it reaches each team member. He is involved in ________.

A) deciphering the message B) organizational communication C) lateral communication D) decoding the message Answer: B Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 17.1: Define the nature and function of communication.

Classification: Application 6) When a communication requires employees to follow their job description or to comply with company policies, communication is being used to ________.

A) manage B) motivate C) provide a release for emotional expression D) persuade Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 17.1: Define the nature and function of communication.

Classification: Concept

2 Copyright © 2025 Pearson Education, Inc.

7) Amber has called her work group together to assign tasks for the day. In this instance, Amber is using communication to ________.

A) manage behavior B) provide feedback C) express emotions D) challenge her employees Answer: A Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.1: Define the nature and function of communication.

Classification: Application 8) In which one of the following cases is communication used to manage employee behavior?

A) Sandy tells Mitch that she's happy with the progress he's making.

B) Glenn lets Ann know that the deadline for her project has been postponed.

C) Jan informs Sara that she must follow the dress code at work.

D) Chris gives Jason tips on how to improve his performance.

Answer: C Diff: 1 AACSB: Written and oral communication Learning Obj.: LO 17.1: Define the nature and function of communication.

Classification: Application 9) Alan has just given his subordinates a difficult project. Now he is telling them he has every confidence they will be successful. Alan is using communication to ________.

A) inspire B) motivate C) control D) manipulate Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 17.1: Define the nature and function of communication.

Classification: Application

3 Copyright © 2025 Pearson Education, Inc.

10) Pat is happy with her team of 15 customer care representatives who've all been consistently performing well. Customer feedback was impressive, and Pat is planning to give them good bonuses this time around. As a manager, Pat believes it is important to let her subordinates know when she is happy with their work. She does so, and also calls a meeting to discuss what they can do to improve further. Pat is using communication for ________.

A) decision making B) negotiation C) motivation D) expressing emotion Answer: C Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 17.1: Define the nature and function of communication.

Classification: Application 11) Akilah has had a bad day. She is venting to her supervisor about her problems. Akilah is using communication to ________.

A) control behavior B) motivate her supervisor to take action C) express her emotions D) inform her supervisor of her personal problems Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 17.1: Define the nature and function of communication.

Classification: Application 12) Brandon is telling his coworkers what he learned at the technical seminar he recently attended. Brandon is using communication to ________.

A) negotiate B) inform C) regale D) motivate Answer: B Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.1: Define the nature and function of communication.

Classification: Application 13) Everything a manager does involves communicating.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.1: Define the nature and function of communication.

Classification: Concept

4 Copyright © 2025 Pearson Education, Inc.

14) If a manager clearly and articulately verbalizes instructions to a subordinate, communication has taken place.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.1: Define the nature and function of communication.

Classification: Concept 15) Good communication requires agreement with the message.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.1: Define the nature and function of communication.

Classification: Concept 16) Communication can both inform the receiver and manage behavior.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 17.1: Define the nature and function of communication.

Classification: Concept 17) Formal communication can control behavior, but informal communication cannot.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 17.1: Define the nature and function of communication.

Classification: Concept

5 Copyright © 2025 Pearson Education, Inc.

18) Explain why communication is important to managers and organizations. What five functions does it serve?

Answer: Communication serves five major functions: management, motivation, emotional sharing, persuasion, and information exchange. Communication acts to manage employee behavior in several ways. Organizations have authority hierarchies and formal guidelines that employees are expected to follow. For instance, when employees are required to communicate any job-related grievance first to their immediate manager, to follow their job description, or to comply with company policies, communication is being used to manage. But informal communication also controls behavior. When work groups tease a member who's working too hard or producing too much (making the rest of the group look bad), they're informally controlling the member's behavior. Communication encourages motivation by clarifying to employees what is to be done, how well they're doing, and what can be done to improve performance if it's not up to par. As employees set specific goals, work toward those goals, and receive feedback on progress toward goals, communication is required. For many employees, their work group is a primary source of social interaction. The communication that takes place within the group is a fundamental mechanism by which members share frustrations and feelings of satisfaction. Communication, therefore, provides a release for emotional expression of feelings and for fulfillment of social needs. Communication can also be used to persuade others to act in a certain way or change their beliefs about something. For example, managers may use persuasion to convince their team that the organization is committed to diversity. Finally, individuals and groups need information to get things done in organizations. Communication provides that information. None of these five functions is more important than the others. For groups to work effectively, they need to manage the members, motivate members to perform, provide a means for emotional expression, persuade them to do certain things and make decisions. You can assume that almost every communication interaction that takes place in a group or organization is fulfilling one or more of these five functions.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 17.1: Define the nature and function of communication.

Classification: Concept 19) During the communication process, the message is converted to a symbolic form. This process is called ________.

A) decoding B) encoding C) deciphering D) symbolizing Answer: B Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept

6 Copyright © 2025 Pearson Education, Inc.

20) Which one of the following is true for the communication process?

A) The decoding process takes place within the channel.

B) Noise cannot affect the encoding of the message.

C) Encoding takes place before the message reaches the medium.

D) The sender decodes the message and then transmits it.

Answer: C Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 21) The process through which the symbols of a message are translated by the receiver into a form that (s)he can understand is called ________.

A) decoding B) encoding C) reinstating D) enciphering Answer: A Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 22) Disturbances that interfere with the transmission, receipt, or feedback of a message are called ________.

A) screens B) filters C) distractors D) noise Answer: D Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 23) Which one of the following is an example of a disturbance that interferes with the transmission of a message?

A) Sending unsolicited sales messages to prospects B) Adding your contact information at the end of an email message C) Leaving a message on the answering machine when you cannot reach someone D) Thinking about the party you attended last night while sitting in a lecture Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application 7 Copyright © 2025 Pearson Education, Inc.

24) Avante has to tell the members of his department that the office hours have changed from flexible hours to a strict nine-to-five day. He calls a meeting to explain the change. Participants begin arguing and asking multiple questions about the new work time policy. The next day, Avante realizes that most people still do not have a clear idea about the change, as a result of the confusion at the meeting. Which one of the following explains why the message was not understood?

A) The sender did not decode the message appropriately.

B) The recipients did not encode the message correctly.

C) The noise in the process interfered with the transmission of the message.

D) The channel was not appropriate for the delivery of this message.

Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application 25) The purchasing manager assigned to the team had already worked with Dan in the past.

However, a difference of opinion had soured their relationship. As a result, the purchasing manager is unable to objectively evaluate and appreciate the various aspects of the current project described in the memorandum Dan prepared. Which of these barriers to communication is represented by this example?

A) Emotions B) Framing C) Filtering D) Distraction Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application 26) Laura sent a text message to Betty telling her that she would come by to pick her up after work so they could go shopping. Betty, however, made other plans for the evening, thinking Laura was talking about going shopping the next day. Which one of the following best explains what went wrong with the communication?

A) Laura used an incorrect channel of communication.

B) There was too much noise in the room when Betty read the message.

C) Betty decoded the message incorrectly.

D) The complexity capacity of text messaging is poor.

Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application

8 Copyright © 2025 Pearson Education, Inc.

27) The final link in the communication process is ________.

A) encoding B) decoding C) channel selection D) feedback Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 28) George has prepared a memorandum explaining the objectives of the work team. Some of the production workers have come to George to ask for clarification about the memorandum. This represents the ________ aspect of the communication process.

A) noise B) channeling C) filtering D) feedback Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application 29) Which one of the following methods of communication should be used when the sender requires quick and accurate feedback?

A) Nonverbal B) Face-to-face C) Email D) Instant messaging Answer: B Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application 30) Noise can occur ________.

A) only in verbal communication B) only in written communication C) only in nonverbal communication D) in all forms of communication Answer: D Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 9 Copyright © 2025 Pearson Education, Inc.

31) Which of these forms of communication is likely to convey the most meaning?

A) An email B) A live speech C) An audio recording of a meeting D) A written transcript Answer: B Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 32) Studies show that employees are more likely to ________ if they are experiencing negative emotions.

A) remain silent B) become very vocal C) communicate more effectively D) be sensitive to noise Answer: A Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application 33) Which of the following actions are not used by an active listener?

A) Making eye contact B) Paying attention to nonverbal cues C) Exhibiting affirmative nods and appropriate facial expressions D) Covering your mouth if you need to yawn Answer: D Diff: 1 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 34) Making the language in a message ________ increases the likelihood of the receiver understanding the intent.

A) more complex B) fit the audience C) completely free of jargon D) sound aggressive Answer: B Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application

10 Copyright © 2025 Pearson Education, Inc.

35) Active listening ________.

A) demands total concentration B) is synonymous with hearing C) is unnecessary for most communications D) is not as tiring as talking Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 36) Which one of the following is true of nonverbal communication?

A) It is synonymous with body language.

B) It usually carries greater impact than verbal communication.

C) It is absent in spoken communication.

D) It is involuntary; it cannot be used deliberately.

Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 37) Her co-workers don't share personal tidbits with Norma, and she wonders why. Which one of the following could explain this phenomenon?

A) Norma often snacks while working at her desk.

B) Norma wears long skirts, long sleeves, and has her hair tied up in a bun.

C) Norma generally stands with her arms crossed when in a conversation with anyone.

D) Norma has an unusual laugh.

Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application 38) Deb has a high-pitched, childish-sounding voice. Her colleagues tend to avoid her and cringe when she speaks in department meetings. To improve her career success, Deb should ________.

A) adjust her body language to be more welcoming B) submit her comments in writing after the meeting C) send a substitute to the meetings D) work on her verbal intonation to lower her voice pitch Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application

11 Copyright © 2025 Pearson Education, Inc.

39) A(n) ________ occurs when the amount of data provided exceeds the recipient's processing capacity.

A) perceptual barrier B) information overload C) conceptual block D) physical barrier Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 40) During the presentation, Sarah deliberately did not mention that the company was anticipating bad days ahead due to the recession, and mass layoffs could occur if this happened.

This is an example of the ________ aspect of the communication process.

A) framing B) filtering C) selective perception D) deception Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application 41) By the time that Sandra had finished the presentation to the employees, she had spoken for one and one-half hours, shown 14 visual aids, and no one asked a question. The employees were probably dealing with which one of the following barriers to effective communication?

A) Information overload B) Selective perception C) Defensiveness D) Cultural constraints Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application

12 Copyright © 2025 Pearson Education, Inc.

42) When employees confront information overload, they may resort to ________.

A) delegating B) filtering C) mentally shutting down D) deleting old emails Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 43) ________ is the deliberate manipulation of information to make it appear more favorable to the receiver.

A) Framing B) Encoding C) Screening D) Filtering Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 44) When a person tells his or her manager what the manager wants to hear, which one of the following barriers to effective interpersonal communication is the person using?

A) Filtering B) Selective perception C) Framing D) Defensiveness Answer: A Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 45) Which one of the following is true of filtering?

A) Filtering aids effective communication by making a message more favorable to a receiver.

B) The more vertical levels in an organization, the more opportunities there are for filtering.

C) Filtering occurs at the individual level; the organization cannot encourage or discourage it.

D) The use of email increases filtering because communication is more direct.

Answer: B Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept

13 Copyright © 2025 Pearson Education, Inc.

46) During her performance evaluation, Aiko omitted a few of the details about her problems with her subordinates because she was afraid her supervisor would think her unfit for management. This is an example of ________.

A) lying by omission B) framing C) self-advancement D) filtering Answer: D Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application 47) Sanako needs funding to research the efficacy of a certain drug for the treatment of cancer.

Though her initial trials have been inconclusive, Sanako is sure that the drug will prove to be effective. However, the organizations she plans to approach for funding will not be overly impressed with the results of the previous trials and may withhold funding. Sanako decides to structure her proposal in such a way that she emphasizes the positives about the drug and minimizes the negative information. Which one of the following best describes Sanako's technique for writing her proposal?

A) Framing B) Filtering C) Emotional appeal D) Information overload Answer: B Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application 48) As the employees began to leave the meeting room, some were overheard grumbling that those at the top were just profiteers, that it didn't make any difference to Leona if employees lost their jobs. Which barrier to effective communications do these statements represent?

A) Language B) Information overload C) Emotions D) Filtering Answer: C Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application

14 Copyright © 2025 Pearson Education, Inc.

49) Jargon is ________.

A) the capacity of a communication method to process complex messages B) a technique for deliberate manipulation of information to make it appear more favorable to the receiver C) specialized terminology that members of a group use to communicate among themselves D) a technique that increases the breadth potential of a communication method Answer: C Diff: 1 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 50) The accountant told Ellen that he had difficulty understanding some of the technical terms used in her memorandum. These technical terms are commonly known as ________.

A) encoding B) vernacular C) techspeak D) jargon Answer: D Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application 51) Which one of the following is a way for managers to overcome the barriers to communication?

A) Feedback B) Decoding C) Encoding D) Filtering Answer: A Diff: 1 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept

15 Copyright © 2025 Pearson Education, Inc.

52) Teresa called her work group together, explained the instructions for the new machine, and left. Later, after one of the workers had jammed the machine and injured a coworker, she discovered the worker had not followed the instructions. This problem may have been avoided if Teresa had ________.

A) gone over the instructions twice instead of once B) had the workers reword the instructions and repeat them to her C) given the workers a written set of instructions D) had one of the workers deliver the instructions Answer: B Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application 53) When Terrence explained to the employees why layoffs were necessary, he spoke about return on investment, debt, and cash flow–terms his shareholders clearly understood. But his employees had no clue what he meant. Terrence's explanation would have been more effective if he had ________.

A) used flow charts and other visuals B) skipped the reasons and explained the method of selection for layoffs C) spoken louder D) tailored the language to the audience Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application 54) Listening is an active search for meaning, whereas ________ is passive.

A) speaking B) encoding C) decoding D) hearing Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept

16 Copyright © 2025 Pearson Education, Inc.

55) Listening for full meaning without making premature judgments or interpretations is called ________.

A) passive listening B) empathic listening C) active listening D) decoding Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 56) Which one of the following is true for active listeners?

A) They should avoid making eye contact and nodding as this will distract the speaker.

B) They should not interrupt the speaker, but should feel free to ask questions about the topic.

C) They should listen for full meaning and avoid paraphrasing what the speaker is saying.

D) Developing empathy for the speaker is not advised, as it proves an emotional barrier to listening.

Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 57) Ulysses has difficulty staying focused during conversations, especially long "speech" type comments from the speaker. This is likely because ________.

A) Ulysses can understand more words per minute than most talkers speak B) he already knows what the speaker is going to say next and is forming his response in his mind C) he strongly disagrees with the speaker D) he is not interested in the conversation topic Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application

17 Copyright © 2025 Pearson Education, Inc.

58) While Victor was explaining a problem that was frustrating him, his manager smiled widely.

Victor wanted to wipe the smirk off the manager's face in a none too friendly manner. What went wrong here?

A) Victor was upset over nothing, which the manager found funny.

B) Victor was too emotional.

C) The manager was distracted.

D) The manager's non-verbal communication did not match the seriousness of the situation.

Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application 59) The communication process is susceptible to noise.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 60) Illegible handwriting is an example of noise.

Answer: TRUE Diff: 1 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 61) A sender initiates a message by encoding a thought.

Answer: TRUE Diff: 1 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 62) In communication, the receiver performs the process of decoding.

Answer: TRUE Diff: 1 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept

18 Copyright © 2025 Pearson Education, Inc.

63) Intonation refers to gestures, facial expressions, and other body movements that convey meaning.

Answer: FALSE Diff: 1 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 64) Verbal intonation refers to the emphasis someone gives to words or phrases that conveys meaning.

Answer: TRUE Diff: 1 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 65) The nonverbal component of communication usually carries the greatest impact.

Answer: TRUE Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 66) The net result of filtering is lost information and ineffective communication.

Answer: TRUE Diff: 1 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 67) National culture influences the communication preferences of a population.

Answer: TRUE Diff: 1 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 68) On average, an individual must hear new information three times before they truly understands.

Answer: FALSE Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept

19 Copyright © 2025 Pearson Education, Inc.

69) Most communication problems are directly attributed to noise in the communication process.

Answer: FALSE Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 70) An email read receipt is sufficient feedback to indicate the message has been received and understood.

Answer: FALSE Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 17.2: Describe the communication process.

Classification: Application 71) Filtering takes place when information exceeds the receiver's processing capacity.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 72) Active listeners avoid asking questions and making eye contact so that they don't distract the speaker.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 73) A person who is upset is more likely to get the message right than one who is calm.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept

20 Copyright © 2025 Pearson Education, Inc.

74) List the seven elements of the communication process and explain the process of interpersonal communication.

Answer: The seven elements of the communication process are: (1) the communication source, (2) the message, (3) encoding, (4) the channel, (5) decoding, (6) the receiver, and (7) feedback.

Before communication can take place, a purpose, expressed as a message to be conveyed, must exist. It passes between a source (the sender) and a receiver. The message is converted to a symbolic form (called encoding) and passed by way of some medium (channel) to the receiver, who retranslates the sender's message (called decoding). The result is the transfer of meaning from one person to another. The entire process is susceptible to noise-disturbances that interfere with the transmission, receipt, or feedback of a message. Typical examples of noise include illegible print, phone static, inattention by the receiver, or background sounds of machinery or coworkers. Anything that interferes with understanding can be noise, and noise can create distortion at any point in the communication process.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept 75) Discuss the two best-known types of nonverbal communication. Include a specific example of each type of nonverbal communication to support your answer.

Answer: An important part of interpersonal communication is nonverbal communication-that is, communication transmitted without words. Body language refers to gestures, facial expressions, and other body movements that convey meaning. A person frowning "says" something different from one who's smiling. Hand motions, facial expressions, and other gestures can communicate emotions or temperaments such as aggression, fear, shyness, arrogance, joy, and anger. Verbal intonation refers to the emphasis someone gives to words or phrases that conveys meaning. To illustrate how intonations can change the meaning of a message, consider the student who asks the instructor a question. The instructor replies, "What do you mean by that?" The student's reaction will vary, depending on the tone of the instructor's response. A soft, smooth vocal tone conveys interest and creates a different meaning from one that is abrasive and puts a strong emphasis on saying the last word.

Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept

21 Copyright © 2025 Pearson Education, Inc.

76) List and discuss the barriers to effective communication that managers face. Include a specific example of each barrier to support your answer.

Answer: a. Information overload - Information overload occurs when the amount of information a person is required to work with exceeds that individual's processing capacity. When this happens, people tend to select out, ignore, pass over, or forget information, or they may put off further processing until the overload situation is over. b. Filtering - Filtering is the deliberate manipulation of information to make it appear more favorable to the receiver. For example, when a person tells his or her manager what the manager wants to hear, that individual is filtering information. c. Emotions - How a receiver feels when a message is received influences how he or she interprets it. Extreme emotions are most likely to hinder effective communication. In such instances, people often disregard rational and objective thinking processes and substitute emotional judgments. When people feel threatened, they tend to react in ways that reduce their ability to achieve mutual understanding. They may verbally attack others, make sarcastic remarks, be overly judgmental, and question others' motives. d. Language - Words mean different things to different people. Age, education, and cultural background are three of the more obvious variables that influence the language a person uses and the definitions (s)he gives to words. People may speak the same language, but use of that language is far from uniform. Senders tend to assume that the words and phrases they use mean the same to the receiver as they do to them. This is incorrect. e. Silence - Silence can be the message when, for instance, someone wants to communicate noninterest or the unwillingness to deal with a topic. Employees are more likely to be silent if they believe they are being mistreated by managers, are experiencing frequent negative emotions, or feel like they have less power in the organization. f. National Culture - Interpersonal communication isn't conducted in the same way around the world. In the United States, communication patterns tend to be individually-oriented and clearly spelled out. U.S. managers rely heavily on memoranda, announcements, position papers, and other formal forms of communication to state their positions on issues. In collectivist countries, such as Japan, there is more interaction for its own sake and a more informal manner of interpersonal contact.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 17.2: Describe the communication process.

Classification: Concept

22 Copyright © 2025 Pearson Education, Inc.

77) When a manager asks an employee to complete a task, (s)he is using ________ communication.

A) upward B) lateral C) informal D) formal Answer: D Diff: 1 AACSB: Written and oral communication Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept 78) The vice president wrote a letter to the employees announcing the opening of a new production facility. This is an example of which type of organizational communication?

A) Horizontal B) Formal C) Lateral D) Informal Answer: B Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Application 79) When Singh went to the human resource manager and applied for transfer to the new facility, he was participating in which type of organizational communication?

A) Formal B) Downward C) Horizontal D) Lateral Answer: A Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Application

23 Copyright © 2025 Pearson Education, Inc.

80) Organizational communication that is not defined by the organization's structural hierarchy is known as ________ communication.

A) external B) passive C) informal D) controlled Answer: C Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept 81) The ________ communication system within an organization permits employees to satisfy their need for social interaction with their peers.

A) informal B) social C) formal D) organizational Answer: A Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept 82) Downward communication is used ________.

A) by employees to give managers progress reports B) to coordinate and evaluate employees C) between employees at the same organizational level D) between people of different departments and organizational levels Answer: B Diff: 1 AACSB: Written and oral communication Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept

24 Copyright © 2025 Pearson Education, Inc.

83) ________ communication is communication that flows from a manager to his employees.

A) Diagonal B) Upward C) Downward D) Horizontal Answer: C Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept 84) Jon is the manager of the Finance department. He has to inform the employees in the department about the introduction of new analytical software and the resultant changes in procedures. Which one of the following types of communication does he use?

A) Upward B) Downward C) Lateral D) Diagonal Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Application 85) In an effort to improve communication within the accounting department of a large organization, the department head puts a suggestion box at the door and invites employees to communicate their thoughts, ideas, concerns, or grievances to the managers in the department.

Which one of the following methods of communication is he encouraging?

A) Upward B) Diagonal C) Downward D) Lateral Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Application

25 Copyright © 2025 Pearson Education, Inc.

86) ________ communication keeps managers aware of how employees feel about their jobs, their coworkers, and the organization in general.

A) Downward B) Horizontal C) Vertical D) Upward Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept 87) Many production employees began to talk among themselves about whether they wanted to transfer to a new production facility in a neighboring town. What type of communication is this?

A) Diagonal B) Formal C) Lateral D) Downward Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Application 88) Which of the following is an example of lateral communication?

A) George informs his superior about the progress of the new project.

B) Brian talks to his teammate about a change in project specifications.

C) His supervisor penalizes John for not following the company dress code.

D) Paul tells the CEO about the low morale in his department.

Answer: B Diff: 1 AACSB: Application of knowledge Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Application

26 Copyright © 2025 Pearson Education, Inc.

89) Cross-functional teams rely heavily on ________ communication, which can be problematic if their managers are not kept informed about the decisions.

A) diagonal B) upward C) vertical D) lateral Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept 90) When Singh, a production supervisor, spoke to the human resources manager about transferring to the new production facility, he was involved in which type of organizational communication?

A) Diagonal B) Upward C) Horizontal D) Lateral Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Application 91) When an organization has an interest in increasing the efficiency and speed of communication between managers at various levels and in different departments, then ________.

A) upward communication works best B) diagonal communication should be used C) lateral communication is ideal D) downward communication works the fastest Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept

27 Copyright © 2025 Pearson Education, Inc.

92) In the ________ communication network, communication flows according to the formal organizational hierarchy, both downward and upward.

A) chain B) linked C) wheel D) horizontal Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept 93) In a(n) ________ communication network, all communication passes through a clearly identifiable leader to the others in a team and upward from team members to the leader.

A) wheel B) all-channel C) chain D) circular Answer: A Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept 94) When MediFax was a small company, information flowed freely from the sales force to all areas of the home office. This most closely represents the ________.

A) wheel network B) chain network C) all-channel network D) informal network Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Application

28 Copyright © 2025 Pearson Education, Inc.

95) Once MediFax grew and became more mechanistic, management insisted that information flow vertically along the lines of authority. This is most representative of the ________ communications network.

A) diagonal B) chain C) all-channel D) circular Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Application 96) Rick believes that it might be more effective if incoming market-based information and outgoing responses and directions were to flow through a central figure, such as the regional sales manager for each region. He, therefore, prefers the ________ network for communication.

A) wheel B) diagonal C) all-channel D) informal Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Application 97) In the all-channel network, communication flows ________.

A) downward from a strong leader to his subordinates in the work group B) in a parallel fashion until all of the members of a work group have been informed C) freely among all members of a formal work team D) through the grapevine Answer: C Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept

29 Copyright © 2025 Pearson Education, Inc.

98) If a company is concerned with achieving high member satisfaction for all the participants in a network, which one of the following communication networks is best?

A) Chain network B) Horizontal network C) Wheel network D) All-channel network Answer: D Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept 99) Over the years, managers at Wilson's Retail have discovered that the sales staff in the retail areas have the best insights into what customers want and how they shop. Wilson's uses these insights to design its retail spaces and decide which products to stock. To make the sharing of information easier, Wilson's encourages an open communication network, where information flows freely between and among staff and managers. Which one of the following communication networks does Wilson's use?

A) Chain B) Wheel C) All-channel D) Downward Answer: C Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Application 100) Which one of the following is true for organizational communication?

A) It uses formal but not informal communication techniques.

B) It includes informal communication via the grapevine.

C) Information flows according to the organization's chain of command.

D) It does not include interpersonal communication.

Answer: B Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept

30 Copyright © 2025 Pearson Education, Inc.

101) An organization's grapevine works as ________.

A) a method for managers to communicate official policy B) a method for management to control the dissemination of information C) both a formal and an informal communication method D) a filter and a feedback mechanism for managers and employees Answer: D Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept 102) Because rumors that flow along the grapevine can never be eliminated entirely, managers can minimize the negative consequences of rumors by ________.

A) ignoring them completely B) communicating openly and honestly with employees C) encouraging an all-channel communication network D) using filtering wherever possible Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept 103) Informal communication is organizational communication not defined by the organization's structural hierarchy.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept 104) Downward communication is communication that flows from a manager to employees.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept

31 Copyright © 2025 Pearson Education, Inc.

105) Upward communication is used to inform, direct, coordinate, and evaluate employees.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept 106) Communication that takes place among employees on the same organizational level is called lateral communication.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept 107) In the wheel network, the leader serves as the hub through which all communication passes.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept 108) The informal organizational communication network is known as the chain.

Answer: FALSE Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept

32 Copyright © 2025 Pearson Education, Inc.

109) Explain formal and informal communication within an organization.

Answer: Communication within an organization is described as formal or informal. Formal communication refers to communication that takes place within prescribed organizational work arrangements. For example, when a manager asks an employee to complete a task, that's formal communication. Another example of formal communication occurs when an employee communicates information or a problem to his or her manager.

Informal communication is organizational communication not defined by the organization's structural hierarchy. When employees talk with each other in the lunchroom, as they pass in hallways, or as they're working out at the company wellness facility, they engage in informal communication. Employees form friendships and communicate with each other. The informal communication system fulfills two purposes in organizations: (1) it permits employees to satisfy their need for social interaction, and (2) it can improve an organization's performance by creating alternative, and frequently faster and more efficient, channels of communication.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept 110) Describe and explain the different directions of communication flow within an organization.

Answer: Downward communication flows from a manager to employees. It's used to inform, direct, coordinate, and evaluate employees. Managers use downward communication when they assign goals to their employees, provide employees with job descriptions, inform them of organizational policies and procedures, point out problems that need attention, or evaluate their performance.

Upward communication flows from employees to managers. Some examples of upward communication include performance reports prepared by employees, suggestion boxes, employee attitude surveys, grievance procedures, manager-employee discussions, and informal group sessions in which employees have the opportunity to discuss problems with their manager or representatives of top-level management.

Communication that takes place among employees on the same organizational level is called lateral communication. In today's dynamic environment, horizontal communications are frequently needed to save time and facilitate coordination. Cross-functional teams rely heavily on this form of communication interaction. However, conflicts can arise if employees don't keep their managers informed about decisions they've made or actions they've taken.

Diagonal communication crosses both work areas and organizational levels. Because of its efficiency and speed, diagonal communication can be beneficial. Increased email use facilitates diagonal communication. In many organizations, any employee can communicate by email with any other employee, regardless of organizational work area or level, even with upper-level managers. However, diagonal communication also has the potential to create problems if employees don't keep their immediate managers informed.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept 33 Copyright © 2025 Pearson Education, Inc.

111) Briefly describe three common communication networks, or patterns of communication, which emerge in organizations. Is any one network preferable to others? If so, why? If not, what factors decide which network is best for a particular situation?

Answer: The vertical and horizontal flows of organizational communication can be combined into a variety of patterns called communication networks. a. Chain network - Communication flows according to the formal chain of command, both downward and upward. If accuracy is important, the chain network works well. b. Wheel network - Communication flows between a clearly identifiable and strong leader and others in a work group or team. The leader serves as a hub through which communication passes.

If having a strong, identifiable leader is important to the organization or work unit, the wheel network is the best communication network. Accuracy is also very high with the wheel network. c. All-channel network - Communication flows freely among all members of a work team. If high member satisfaction is a concern, the all-channel network is preferable.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Concept 112) "The grapevine is detrimental to effective organizational communication and must be eliminated if the organization is to effectively engage its employees." Do you agree with this statement? Explain your answer.

Answer: Student answers may vary. However, it is a fact that the grapevine, an informal organizational network is part of every organization. In fact, it is an important source of information for the company. This makes it imperative for companies to try to understand its dynamics. Acting as both a filter and a feedback mechanism, it pinpoints those bewildering issues that employees consider important. More importantly, from a managerial point of view, it is possible to analyze what is happening on the grapevine-what information is being passed, how information seems to flow, and which individuals seem to be key information conduits. By staying aware of the grapevine's flow and patterns, managers can identify issues that concern employees, and, in turn, use the grapevine to disseminate important information. Because the grapevine can't be eliminated, managers should "manage" it as an essential information network.

Managers can also minimize the negative consequences of rumors. They can do so by communicating openly, fully, and honestly with employees, particularly in situations where employees may not like proposed or actual managerial decisions. Studies show that this is likely to be effective in engaging employees.

Diff: 3 AACSB: Analytical thinking Learning Obj.: LO 17.3: Explain how communication can flow most effectively in organizations.

Classification: Critical thinking

34 Copyright © 2025 Pearson Education, Inc.

113) Which of the following is NOT one of the benefits of advancing technology?

A) It is easier for managers to monitor individual and team performance.

B) Employees now have more complete information and can make quicker decisions.

C) Employees are fully accessible even during off business hours.

D) Technology has provided more opportunities for employees to collaborate.

Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.4: Describe how technology affects managerial communication and organizations.

Classification: Concept 114) Which of the following is NOT one of the benefits of a company having a social media platform?

A) Employees can create memes making fun of management to release tension.

B) Employees can connect using social media.

C) Employees can learn from one another on social media platforms.

D) Social media platforms are good for disseminating information.

Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.4: Describe how technology affects managerial communication and organizations.

Classification: Concept 115) Which of the following is NOT one of the ways ChatGPT can be used by managers?

A) ChatGPT can organize information for managers.

B) ChatGPT can help managers write better communications with the appropriate tone.

C) ChatGPT can automate basic tasks.

D) ChatGPT can host meetings without the need for a manager's presence.

Answer: D Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 17.4: Describe how technology affects managerial communication and organizations.

Classification: Concept

35 Copyright © 2025 Pearson Education, Inc.

116) From the firm's perspective, one of the drawbacks to social media is ________.

A) it can consume employee time and undermine productivity B) it is an ineffective means of communication C) that most older employees do not like social media D) that most employees do not use social media at work Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 17.4: Describe how technology affects managerial communication and organizations.

Classification: Concept 117) ChatGPT is an AI-powered language model that can help managers to better understand and communicate with their employees, customers, and stakeholders.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 17.4: Describe how technology affects managerial communication and organizations.

Classification: Concept 118) One advantage of social media in business is that it can both convey information and provide a platform for group conversations about the topic.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 17.4: Describe how technology affects managerial communication and organizations.

Classification: Concept 119) Zoom fatigue can cause feelings of emotional exhaustion and anxiety that can lead to ongoing mental health concerns and also impact work productivity and overall quality of life.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 17.4: Describe how technology affects managerial communication and organizations.

Classification: Concept 120) One study found a 100 percent growth in the number of virtual meetings held from 2020 to 2022, with employees reporting an average of 15 virtual meetings per week.

Answer: FALSE Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 17.4: Describe how technology affects managerial communication and organizations.

Classification: Concept 36 Copyright © 2025 Pearson Education, Inc.

121) How has the 24/7 work environment affected employees?

Answer: Advancing technology has made it possible to stay connected around the clock, 7 days per week. However, this accessibility has some downsides. For example, one study confirmed that expectations for employees to check email outside of typical working hours can have a negative impact and create work-home conflicts. Many countries are passing "right to disconnect" laws to protect workers from around-the-clock texting and communication, but many employers are also considering ways to reduce unnecessary off-hour communication.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 17.4: Describe how technology affects managerial communication and organizations.

Classification: Concept 122) Wilhelmina would like a raise, but every time she asks for one she is turned down.

Wilhelmina should ________.

A) explain why she needs the additional money B) submit her next request in writing C) look for another job D) improve her persuasion skills Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 17.5: Discuss how to become a better communicator.

Classification: Application 123) Tammy often said, "I seen," "we have went," and "it has ran." These phrases also appeared in her emails. Tammy wonders why she has not been given assignments with greater responsibility. What advice would you offer to Tammy?

A) Seek a mentor.

B) Sharpen your grammar skills.

C) Find a job coach.

D) Look for other employment.

Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 17.5: Discuss how to become a better communicator.

Classification: Application

37 Copyright © 2025 Pearson Education, Inc.

124) Which of these things is one of the four basic elements of persuasion?

A) Appeal to the "head" and "heart" by combining rational and emotional arguments.

B) Try to show as much emotion as you can since people respond to tears.

C) You should only stretch the truth if it is completely necessary.

D) Add complexity since people often commit when they are afraid to tell someone they do not understand what they are talking about.

Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 17.5: Discuss how to become a better communicator.

Classification: Application 125) One key to effective persuasion is to ________.

A) make the simple more complex B) simplify a complicated topic C) address only people with enough money to invest D) understand your purpose in life Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 17.5: Discuss how to become a better communicator.

Classification: Application 126) Making the complex simple is one of the elements of effective persuasion.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 17.5: Discuss how to become a better communicator.

Classification: Concept 127) Because of the heavy use of electronic communication methods, speaking skills have become less important.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.5: Discuss how to become a better communicator.

Classification: Concept 128) It is perfectly acceptable to use abbreviations in a text message when the sender is in a hurry.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 17.5: Discuss how to become a better communicator.

Classification: Concept

38 Copyright © 2025 Pearson Education, Inc.

129) Discuss four areas where managers can improve their communication skills. Explain why this is important.

Answer: Most managers will tell you that becoming an effective communicator is one ingredient of a successful career. Because everything a manager does involves communication, improving these skills enhances one's readiness for promotions. a. Persuasion skills enable a person to influence others to change their minds or behavior.

Managers must be able to get work done through others, which sometimes means getting those individuals to change behaviors. Strong persuasion skills accomplish this without damaging the relationship. b. Much of a manager's communication with other employees at all levels is through speaking.

Most of this is interpersonal, with small groups or individually. However, some communication may be through presentations. Discomfort with public speaking holds some employees back from those desired promotions. c. Communication that doesn't involve speaking will involve writing. Millennials especially take shortcuts in their writing which is fine when texting friends and family but unacceptable in business. Improving one's writing skills makes a more professional presentation and sheds a more favorable light on the sender of emails, texts, and memos. d. Because of the sheer quantity of emails a manager receives daily, it is important that the manager read quickly and understand clearly the language used in business correspondence and articles. Knowledge of industry jargon is necessary as is a robust vocabulary of non-technical words. Failure to keep up with the plethora of messages and work-related documents places the manager at a disadvantage.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 17.5: Discuss how to become a better communicator.

Classification: Concept

39 Copyright © 2025 Pearson Education, Inc.

Management, 16e (Robbins) Chapter 18 Management Control 1) ________ refers to the process of monitoring, comparing, and correcting work performance.

A) Controlling B) Checking C) Measuring D) Verifying Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.1: Explain the nature and importance of control.

Classification: Concept 2) ________ is the final step in the management process, which provides a critical link back to ________.

A) Organizing; planning B) Planning; controlling C) Controlling; planning D) Leading; organizing Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.1: Explain the nature and importance of control.

Classification: Concept 3) Which one of the following management responsibilities determines if organizational goals are being achieved?

A) Designing the organization's structure B) Motivating employees C) Formulating business strategy D) Measuring firm's performance Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.1: Explain the nature and importance of control.

Classification: Concept

1 Copyright © 2025 Pearson Education, Inc.

4) Which one of the following observations best explains why the control function is important?

A) An effective control system includes employee empowerment.

B) An effective control system assures that the organization will meet or exceed its goals.

C) An effective control system is the only way managers know whether organizational goals are being met.

D) Organizational strategies are formed during the controlling stage.

Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.1: Explain the nature and importance of control.

Classification: Concept 5) Which of the following reasons is NOT one of the reasons that the control function is important?

A) Controlling provides a critical link back to planning.

B) An effective control system can help managers delegate authority.

C) Control system limit unnecessary litigation.

D) Control systems help protect the organization's assets and reduce risk.

Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.1: Explain the nature and importance of control.

Classification: Application 6) Which one of the following represents the controlling function?

A) The die cast machine operator adjusts the settings on the machine.

B) The shift supervisor checks the production schedule for the day.

C) The production manager schedules a new customer order.

D) The quality auditor selects one piece every 15 minutes from the batch of molded products and, using very precise gauges, measures key dimensions on the part.

Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.1: Explain the nature and importance of control.

Classification: Application 7) Having a control system reduces the scope of employee empowerment and autonomy.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.1: Explain the nature and importance of control.

Classification: Concept

2 Copyright © 2025 Pearson Education, Inc.

8) Controlling is the process of monitoring, comparing, and correcting work performance.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.1: Explain the nature and importance of control.

Classification: Concept 9) Having a control system increases the scope of employee empowerment.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.1: Explain the nature and importance of control.

Classification: Concept 10) Managers engage in controlling activities to protect the organization and its assets.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.1: Explain the nature and importance of control.

Classification: Concept 11) What are the major reasons why the control function is important to managers?

Answer: Control is important because it's the only way managers know whether organizational goals are being met and if not, the reasons why. The value of the control function can be seen in three specific areas: planning, empowering employees, and protecting the workplace. As the final step in the management process, controlling provides the critical link back to planning. If managers didn't control, they'd have no way of knowing whether their goals and plans were being achieved and what future actions to take. The second reason controlling is important is because of employee empowerment. Many managers are reluctant to empower their employees because they fear employees will do something wrong for which they would be held responsible.

Many managers are tempted to do things themselves and avoid empowering. But an effective control system can provide information and feedback on employee performance, thus reducing potential problems. The final reason that managers control is to protect the organization and its assets. Today's environment brings heightened threats from natural disasters, financial scandals, workplace violence, supply chain disruptions, security breaches, and even possible terrorist attacks. Managers must have plans in place to protect the organization's employees, facilities, data, and infrastructure. Having comprehensive controls and backup plans will help ensure minimal work disruptions.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 18.1: Explain the nature and importance of control.

Classification: Concept

3 Copyright © 2025 Pearson Education, Inc.

12) The control process assumes that ________.

A) feedback is the only way to improve performance B) managers will be aware of the actions and activities of their employees C) performance standards are already in place D) employee monitoring costs are part and parcel of doing business Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Concept 13) Sometimes the French fries are rather pale, other times they are golden, sometimes they are quite dark. Anna cooks them according to how much time she has available between customers.

The variation in appearance can be attributed to ________.

A) customer demand B) the fact that there is no performance standard C) differences in the potatoes D) emphasis of quantity over quality Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Application 14) The first step in the control process is ________.

A) setting the desired standards B) measuring actual performance C) comparing performance against expectations D) enforcing managerial control Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Concept 15) Which one of the following sources of information for measuring performance is time consuming, obtrusive, and subject to personal biases?

A) Oral reports B) Personal observations C) Statistical reports D) Written reports Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Concept 4 Copyright © 2025 Pearson Education, Inc.

16) Blanca nods as she watches her new employee as he executes the steps in making French fries. Her purpose is to make sure he follows the instructions exactly as given. Blanca is using ________.

A) personal observation B) statistical reports C) mentoring D) nonverbal feedback Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Application 17) Which one of the following is an advantage of using statistical reports as the source of information?

A) Statistical reports can be used to obtain firsthand knowledge.

B) Unfiltered information can be obtained using statistical reports.

C) Statistical reports are effective for assessing performance.

D) Statistical reports provide unbiased information.

Answer: C Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Concept 18) Amadu prefers to get his performance data in the form of charts and graphs. Amadu prefers ________.

A) personal observations B) statistical reports C) oral reports D) written reports Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Application

5 Copyright © 2025 Pearson Education, Inc.

19) Barry wants to use a tool that makes the data easy to visualize and is effective for showing relationships. Which one of the following tools is best suited for this?

A) Personal observation B) Spreadsheets C) Written reports D) Statistical reports Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Application 20) Which one of the following sources usually provides filtered information which cannot be documented?

A) Oral reports B) Personal observations C) Online reports D) Written reports Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Concept 21) Brenda is always ready with a story to tell about performance in her area. Unfortunately, Brenda sometimes leaves out important facts and makes statements that cannot be corroborated.

Brenda is delivering ________.

A) personal observations B) statistical reports C) oral reports D) anecdotes Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Application

6 Copyright © 2025 Pearson Education, Inc.

22) Which one of the following sources provides information which is comprehensive, formal, and easy to file and retrieve?

A) Oral reports B) Personal observations C) Online reports D) Written reports Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Concept 23) At the end of every month, the accounting department submits a balance sheet, statement of profit and loss, and cash flow statement to the senior management team. These are all ________.

A) personal observations B) statistical reports C) oral reports D) written reports Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Application 24) For which of the following is a subjective measure most appropriate?

A) Level of satisfaction of patient care in a hospital B) Degree of improvement in closing sales in a real estate brokerage C) Quality of a water supply D) Reduction of waste in a manufacturing process Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Application 25) The comparing step in the control process determines ________.

A) a company's relative position in the industry in terms of the standards used B) a company's relative position in the industry in terms of performance variances C) the variation between actual performance and an external benchmark from a noncompetitor D) the variation between actual performance and the standard Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Concept

7 Copyright © 2025 Pearson Education, Inc.

26) At the beginning of every shift, Cody records the amount of pizza sauce in inventory. At the end of every shift, he records the number of pizzas made and the amount of pizza sauce left in inventory. Why would he do this?

A) So he can determine if employees are taking sauce home.

B) So he can compare the quantity used with the budgeted amount.

C) So he will know how much pizza sauce to order.

D) So he will know how many customers visited his pizza parlor during his shift.

Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Application 27) Managers should use subjective measures when ________.

A) work activities cannot be expressed in quantifiable terms B) work activities are critical to the organization C) organizational processes and activities are complex D) employee attitudes are at stake Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Concept 28) ________ corrects the problem at once to get performance back on track.

A) Basic corrective action B) Immediate corrective action C) Verbal feedback D) Disciplinary action Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Concept 29) "No, James, you must start the timer after you lower the French fry basket into the fryer, not before." This supervisor is using ________.

A) postponed corrective action B) disciplinary action C) immediate corrective action D) delayed corrective action Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Application 8 Copyright © 2025 Pearson Education, Inc.

30) If a manager investigates how and why performance has deviated beyond the acceptable range of variation and then corrects the source of the deviation, she is using ________.

A) feedback control B) immediate corrective action C) basic corrective action D) concurrent control Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Concept 31) Markus recommends that the managers at Statco should identify how and why performance has deviated beyond the acceptable range of variation, and then correct the source of the deviation. Markus is recommending ________.

A) feedforward control B) immediate corrective action C) basic corrective action D) concurrent control Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Application 32) Following a customer complaint, Bigly Mfg. formed a problem solving team to find out why the system was producing unacceptable parts and make a recommendation to fix it. This is an example of ________ corrective action.

A) delayed B) immediate C) basic D) preventive Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Application

9 Copyright © 2025 Pearson Education, Inc.

33) Managers could choose to do nothing when ________.

A) an employee fails to attain the standard because of internal problems B) the difference between actual performance and standard performance is low and acceptable C) performance standards are acceptable, although the employees have not attained it D) the variance observed from the expected performance is caused due to unrealistic standards Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Concept 34) The goal for the sales team at the auto dealership was to sell one new car per day every day of the month. In August the team sold 33 cars. What should management do?

A) Nothing. The deviation is insignificant.

B) Revise the goal. If the team sold more than the goal, obviously the goal is too low.

C) Wait. See if the performance is duplicated next month before taking any action.

D) Set a much loftier goal. This goal was too easy to achieve.

Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Application 35) Some control criteria, such as employee satisfaction, can be used for any management situation.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Concept 36) Deviations that exceed the acceptable range of variation become significant and need a manager's attention.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Concept 37) Basic corrective action corrects problems at once to get performance back on track.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Concept

10 Copyright © 2025 Pearson Education, Inc.

38) Managers should do nothing if the variance observed from the standard is acceptable.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Concept 39) The most desirable type of control–concurrent control–prevents problems because it takes place before the actual activity.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Concept 40) In a short essay, list and briefly explain the steps, processes, and best practices managers typically utilize in the control process. Provide examples where appropriate.

Answer: a. Measuring - The first step in the control process is measuring. Most jobs and activities can be expressed in tangible and measurable terms. Managers frequently use a variety of sources of information to measure actual performance, such as personal observation, statistical reports, oral reports, and written reports. For most managers, using a combination of approaches increases both the number of input sources and the probability of getting reliable information. b. Comparing - The second step involves determining the degree of variation between actual performance and the pre-specified standard. Some variation is to be expected. However, it is important for managers to determine the acceptable range of variation. c. Taking managerial action - Managers can choose among three possible courses of action: do nothing, correct the actual performance, or revise the standards. Examples of corrective actions might include changing strategy, structure, compensation plans, training programs, redesigning jobs, or firing employees. Revising standards is an appropriate response if the variance was the result of unrealistic expectations. However, revising standards downwards can be troublesome when an employee or work unit falls short of reaching a goal. If they don't meet the standard, their natural response is to attack the standard. If the manager believes the standard is fair, they should explain their position, reaffirm their desire for the employee or work unit to meet the standard, and then take necessary corrective action to turn that expectation into reality.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 18.2: Describe the three steps in the control process.

Classification: Concept

11 Copyright © 2025 Pearson Education, Inc.

41) Which one of the following best fits the definition of organizational performance which managers should control?

A) Mr. B's Pizzeria sold an average of 18 pizzas per hour on Saturday night.

B) The customer ordered the Victorian Rose interior décor.

C) Colin arrived 15 minutes early for his shift.

D) The shipment of parts arrived two days late.

Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.3: Explain how organizational and employee performance are measured.

Classification: Application 42) Which one of the following refers to the overall output of goods or services produced divided by the inputs needed to generate that output?

A) Yield B) Efficiency C) Effectiveness D) Productivity Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.3: Explain how organizational and employee performance are measured.

Classification: Concept 43) The plant superintendent wants to know the value of products per man hour. She is concerned with ________.

A) costs B) waste C) productivity D) profits Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.3: Explain how organizational and employee performance are measured.

Classification: Application

12 Copyright © 2025 Pearson Education, Inc.

44) Festus believes organizational effectiveness is more important to the organization than organizational productivity. What could be the rationale behind this belief?

A) Organizational productivity is not a measure of organizational performance.

B) Organizational effectiveness is a measure of how appropriate goals are and how well those goals are met.

C) Organizational productivity is not directly related to organizational output.

D) Organizational effectiveness is a quantitative measure of the input-output relationship.

Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.3: Explain how organizational and employee performance are measured.

Classification: Application 45) ________ is measured by the costs of acquiring and transforming organizational resources into outputs.

A) Input B) Quality C) Profit D) Leverage Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.3: Explain how organizational and employee performance are measured.

Classification: Concept 46) Which one of the following is considered the easiest way to increase organizational productivity?

A) Increasing the price of outputs B) Increasing the price of inputs C) Hiring more employees D) Decreasing the value of the products Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.3: Explain how organizational and employee performance are measured.

Classification: Concept

13 Copyright © 2025 Pearson Education, Inc.

47) The operations manager suggests a hike in the prices to improve productivity. However, the marketing manager rules this option out. What could be the possible reason for this?

A) Product prices are not related to organizational productivity.

B) Selling price is negatively correlated to organizational productivity.

C) The industry is characterized by intense competition.

D) Such an action would lead to reduced employee satisfaction.

Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.3: Explain how organizational and employee performance are measured.

Classification: Application 48) If a manager wanted to increase the ratio of outputs to inputs, she should ________.

A) decrease the selling price B) increase productivity C) increase the quality of inputs D) hire additional employees Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.3: Explain how organizational and employee performance are measured.

Classification: Concept 49) Buchanan Welders cannot raise its prices in its highly competitive industry. Which one of the following is an option if Buchanan wants to increase its productivity?

A) Introduce a lower-cost model.

B) Emphasize the importance of quality in its sales materials.

C) Exceed customers' expectations with early deliveries.

D) Use less expensive inputs.

Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.3: Explain how organizational and employee performance are measured.

Classification: Application 50) Organizational ________ is a measure of how appropriate organizational goals are and how well an organization is achieving those goals.

A) productivity B) effectiveness C) efficiency D) yield Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.3: Explain how organizational and employee performance are measured.

Classification: Concept 14 Copyright © 2025 Pearson Education, Inc.

51) Disciplinary action is helpful to the organization because ________.

A) employees know what to do to correct their undesirable behavior B) disciplined employees are less likely to leave the organization C) the manager will monitor the disciplined employee more closely D) after the first rule violation, problem employees are eliminated from the organization Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.3: Explain how organizational and employee performance are measured.

Classification: Application 52) Productivity decreases when an organization raises the prices of its products.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.3: Explain how organizational and employee performance are measured.

Classification: Concept 53) Organizational effectiveness is a measure of how appropriate organizational goals are and how well those goals are being met.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.3: Explain how organizational and employee performance are measured.

Classification: Concept 54) Most employees do their jobs well and never require disciplinary action.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.3: Explain how organizational and employee performance are measured.

Classification: Concept

15 Copyright © 2025 Pearson Education, Inc.

55) Explain the importance of delivering employee performance feedback, including the use of disciplinary action.

Answer: Managers must ensure that employees' work efforts are of the quantity and quality needed to accomplish organizational goals. As with other performance, managers measure actual performance, compare that performance to a standard, and take action if needed. Managers need to provide their employees with feedback so that the employees know where they stand in terms of their work. Unless employees know what is expected and how they are deviating from expectations, no change in behavior can be expected, reducing the chances that the organization will meet its goals. If done properly, positive outcomes can result. In a productive performance discussion, organizations have the opportunity to reinforce company values, strengthen workplace culture, and achieve strategic goals. When feedback of this sort is ineffective, managers may need to apply disciplinary action. Fortunately, most employees do their jobs well and never need formal correction. When disciplinary action is necessary, it is important for a manager to know what the organization's policies are on discipline, which can be used to both control and correct employee performance.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 18.3: Explain how organizational and employee performance are measured.

Classification: Concept 56) An organization hires additional personnel as soon as they get a major contract. The organization is using ________ control.

A) feedforward B) concurrent C) feedback D) management Answer: A Diff: 2 AACSB: Analytical thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Application 57) Contours, Inc., knows each drill bit can cut approximately 100,000 holes before the hole size is smaller than the print specification, so it changes drill bits after 95,000 uses. Contours, Inc. is using ________ control.

A) preventive B) predictive C) feedforward D) concurrent Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Application

16 Copyright © 2025 Pearson Education, Inc.

58) Which one of the following is considered the most desirable type of control to prevent anticipated problems?

A) Feedforward control B) Concurrent control C) Feedback control D) Management by walking around Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept 59) Charles wants to prevent problems before their occurrence. Which one of the following is the most desirable type of control to achieve this goal?

A) Proactive control B) Preventive control C) Feedforward control D) Feedback control Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Application 60) The management control that takes place while a work activity is in progress is known as ________ control.

A) immediate B) concurrent C) feedback D) consistent Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept

17 Copyright © 2025 Pearson Education, Inc.

61) The launch went off without a hitch, but the space capsule directed toward Neptune has veered off course. NASA sends signals to change the direction of flight to get it back on track.

NASA is using ________ control.

A) feedback B) concurrent C) preventive D) feedforward Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Application 62) Devon interacts directly with the employees in the work area to identify problem areas. He works with various departments to obtain a holistic idea of the business. This is an example of ________.

A) proactive control B) preventive control C) direct supervision D) feedback Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Application 63) At Contours, Inc., quality auditors pull one part from the production line every 15 minutes.

These parts are measured against the production print; any variation that is beyond acceptable levels is reported to the machine operators. Contours, Inc. is using ________ control.

A) feedforward B) concurrent C) feedback D) concentric Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Application

18 Copyright © 2025 Pearson Education, Inc.

64) Management by walking around is an example of ________ control.

A) feedback B) concurrent C) feedforward D) reactive Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept 65) ________ occurs when a manager in the work area interacts directly with employees to maintain supervision.

A) Preventive maintenance B) Management by walking around C) Proactive control D) Feedforward control Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept 66) Donna discovers major flaws in the packaging department. She consults the production manager and formulates control measures to improve packaging. Here, Donna is using the ________ control.

A) feedback B) reactive C) concurrent D) feedforward Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Application 67) The information provided by the customer who brings a product in for warranty work can be used for ________ control A) feedforward B) concurrent C) preventive D) feedback Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Application 19 Copyright © 2025 Pearson Education, Inc.

68) ________ ratios measure an organization's ability to meet its current debt obligations.

A) Activity B) Liquidity C) Leverage D) Profitability Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept 69) Which one of the following ratios examines the organization's use of debt to finance its assets and its ability to meet the interest payments on the debt?

A) Liquidity ratios B) Leverage ratios C) Profitability D) Activity ratios Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept 70) Ruth, a financial consultant, determines her client's leverage ratio to be very high. What suggestion could Ruth give to help the firm reduce its leverage ratio?

A) Increase the money supply by selling a part of its assets.

B) Pay back part of its debts to improve the ratio.

C) Maintain more current assets than current liabilities.

D) Reduce the sales to total assets ratio of the firm.

Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Application 71) ________ ratios measure how efficiently the firm is using its assets.

A) Liquidity B) Leverage C) Profitability D) Activity Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept

20 Copyright © 2025 Pearson Education, Inc.

72) Elaine wants to analyze her company's ability to meet its current debt obligations. Which one of the following ratios is most helpful to Ruth in analyzing this?

A) Inventory turnover ratio B) Return on investment ratio C) Current ratio D) Total asset turnover ratio Answer: C Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Application 73) Which one of the following ratios measures how efficiently and effectively the firm is using its assets to generate revenue?

A) Total asset turnover ratio B) Inventory turnover ratio C) Acid test ratio D) Return on investment Answer: D Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept 74) Contours, Inc. uses its budget for labor hours as a ________ tool.

A) preventive B) concurrent C) feedforward D) feedback Answer: D Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Application 75) When data is analyzed and processed, it becomes ________.

A) a system B) information C) fact D) a structure Answer: B Diff: 1 AACSB: Reflective thinking; Information technology Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept

21 Copyright © 2025 Pearson Education, Inc.

76) Raw, unanalyzed facts are called ________.

A) data B) information C) database D) factoids Answer: A Diff: 2 AACSB: Reflective thinking; Information technology Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept 77) Every March, Bill, who owns and operates a small retail shop, takes a large box of receipts and invoices to his accountant so the accountant can file Bill's taxes in April. Only then does Bill know if his business has been profitable. Bill could benefit from a(n) ________.

A) concurrent control system B) balanced scorecard system C) inventory control system D) management information system Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Application 78) The ________ approach to performance measurement was introduced as a way to evaluate organizational performance from more than just the financial perspective.

A) market value B) balance sheet C) balanced scorecard D) income statement Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept 79) Which one of the following is a performance measurement tool that looks at four areas that contribute to a company's performance?

A) Market value method B) Triple bottom line method C) Balanced scorecard approach D) Information control approach Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept 22 Copyright © 2025 Pearson Education, Inc.

80) ________ is the search for the best practices among competitors or non-competitors that lead to their superior performance.

A) Factor analysis B) Total quality management C) Market positioning D) Benchmarking Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept 81) Cybersecurity actions that all organizations should implement include using secure passwords, being suspicious of external downloads and emails, backing up data, securing Wi-Fi, and installing and renewing a complete antivirus, antispyware, and firewall package on every computer.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept 82) Activity ratios measure an organization's ability to meet its current debt obligations.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept 83) The balanced scorecard approach evaluates organizational performance from more than just the financial perspective.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept 84) Feedforward control takes place while a work activity is in progress.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept

23 Copyright © 2025 Pearson Education, Inc.

85) Leverage ratios measure an organization's ability to meet its current debt obligations.

Answer: FALSE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept 86) Managers should not consider the standards when measuring the actual performance of employees.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept 87) Sensitive, proprietary, and confidential information must be controlled lest it fall into the hands of people who wish to harm the organization, its customers and/or employees.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept 88) The benchmarking approach can evaluate organizational performance from more than just the financial perspective.

Answer: TRUE Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept 89) Benchmarks for a company must be created based on the previous performance of the company.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept

24 Copyright © 2025 Pearson Education, Inc.

90) In a short essay, explain feedforward, concurrent, and feedback controls and provide an example for each one.

Answer: Feedforward control is the most desirable type of control. Feedforward control prevents anticipated problems since it takes place before the actual activity. Example - At St. Joseph's Hospital in West Bend, Indiana, a new facility was designed with identical rooms, nonslip floors, and glass walls to reduce errors in patient care and to increase employee safety.

Concurrent control, as its name implies, takes place while an activity is in progress. When control occurs while the work is being performed, management can correct problems before they become too costly. Example - When managers use management by walking around, which is a term describing when a manager is out in the work area interacting directly with employees, they are using concurrent control.

Feedback control, the most popular type of control, relies on feedback. In feedback control, the control takes place after the activity is done. Example - When the Denver Mint discovered flawed Wisconsin quarters, it was discovered with feedback control. The damage had already occurred, even though the organization corrected the problem once it was discovered.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept; Application

25 Copyright © 2025 Pearson Education, Inc.

91) List and discuss four performance control tools used for monitoring and measuring organizational performance.

Answer: a. Financial controls - One of the primary purposes of every business firm is to earn a profit. In pursuit of this objective, managers need financial controls. They might perform several financial ratio tests to ensure that sufficient cash is available to pay ongoing expenses, that debt levels haven't become too high, or that assets are being used productively. b. Information controls - Information can be critical to monitoring and measuring an organization's performance. Managers need the right information at the right time and in the right amount. Inaccurate, incomplete, or delayed information can seriously impede organizational performance. Managers need information about the standards in order to be able to compare actual performance with the standard. They rely on information to help them determine if deviations are acceptable. They also rely on information to help them develop appropriate courses of action. c. Balanced scorecard - This is a performance measurement that was introduced as a way to evaluate organizational performance from more than just the financial perspective. The balanced scorecard is a performance measurement tool that looks at four areas - financial, customers, internal processes, and people/innovation/growth assets - that contribute to a company's performance. According to this approach, managers should develop goals in each of the four areas and measure to determine if these goals are being met. d. Benchmarking of best practices - Benchmarking is the search for the best practices among competitors or noncompetitors that lead to superior performance. At its most fundamental level, benchmarking means learning from others. As a tool for monitoring and measuring organizational performance, benchmarking can be used to help identify specific performance gaps and potential areas for improvement. Students can choose any three to elaborate on.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept 92) What do you think are the benefits of benchmarking? Provide examples of benchmarking practices.

Answer: Benchmarking is the search for the best practices among competitors or noncompetitors that lead to their superior performance. Benchmarking should identify various standards of excellence against which to measure and compare. It provides an insight into the best practices in the industry and helps managers evaluate organizational performance. For instance, the American Medical Association developed more than 100 standard measures of performance to improve medical care. Carlos Ghosn, CEO of Nissan, benchmarked Walmart operations in purchasing, transportation, and logistics. Benchmarking allows organizations to learn from others. Student examples may vary for this question.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 18.4: Describe tools used to measure organizational performance.

Classification: Concept

26 Copyright © 2025 Pearson Education, Inc.

93) Which of the following is NOT one of the five contemporary control issues mentioned in the text?

A) Cross-cultural differences in communications B) Global differences in control C) Workplace privacy D) Employee theft Answer: A Diff: 1 AACSB: Diverse and multicultural work environments; Application of knowledge Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Application 94) Control techniques can be quite different in different countries. The differences are primarily in the ________.

A) types of tasks that employees perform in various countries B) way employees respond to the controlling measures C) strategic orientation of each technique D) measurement and corrective action steps of the control process Answer: D Diff: 1 AACSB: Reflective thinking; Diverse and multicultural work environments Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept 95) Irene was quite upset to learn her employer read her e-mails. She thought all her messages were private. Which one of the following arguments would best explain her employer's actions?

A) Managers want to ensure company e-mail servers are not being used for personal e-mails.

B) Managers want to be certain employees are not inadvertently passing on company secrets.

C) Managers are looking for information that can later be used to terminate employees.

D) Managers monitor computer usage to justify system upgrades.

Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Application 96) Filing fraudulent expense reports is an example of ________.

A) employee theft B) workplace piracy C) workplace violence D) privacy intrusion Answer: A Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept 27 Copyright © 2025 Pearson Education, Inc.

97) Cindy's elementary school-aged children brought home lists of supplies required for their classes, so Cindy raided the office supplies cabinet. Her rationale is that her employer doesn't pay her enough to buy these items. Cindy is engaging in ________.

A) workplace piracy B) employee theft C) equity adjustment D) compensation management Answer: B Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Application 98) Clinical psychologists suggest that employee theft ________.

A) occurs primarily when there are poor management-labor relations B) is a symptom of poor planning and management control C) happens because people find ways to rationalize this behavior as correct D) reflects deep cultural problems in the society Answer: C Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept 99) Helen noticed that employee theft has increased. She has considered several options to deal with this loss. Which one of the following is likely to be the most effective concurrent control?

A) Carefully screen job applicants using honesty testing.

B) Publicly announce thefts when they are discovered.

C) Dismiss any employee involved in theft.

D) Publicize progress in reducing theft.

Answer: D Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Application 100) Because so many items had disappeared from the office supplies storeroom, management installed a surveillance camera to provide ________.

A) feedforward control B) concurrent control C) feedback control D) evidence for prosecution Answer: B Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Application 28 Copyright © 2025 Pearson Education, Inc.

101) Diane wants to take corrective measures to prevent future theft. Which one of the following is a feedback tactic that Diane could use to control theft?

A) Use the services of professional investigators.

B) Openly communicate the costs of stealing.

C) Use corporate hotlines for reporting incidents.

D) Educate and train employees about the policies.

Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Application 102) Which one of the following is a feedforward control measure to prevent employee theft?

A) Employee assistance programs to help employees with behavioral problems B) Thorough investigation of the incident by an external agency C) Use of quick and decisive managerial intervention during the incident D) Open communication about incidents and what's being done Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Application 103) Managers can use social media as a tool to ________.

A) control their employees B) monitor candid customer feedback C) sabotage competitors D) increase their likelihood of promotion Answer: B Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept 104) Which of these control mechanisms is a manager in a country that is not technologically advanced more likely to use?

A) Direct supervision B) Computer-generated reports C) Indirect control devices D) Decentralized decision making Answer: A Diff: 2 AACSB: Application of knowledge Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Application

29 Copyright © 2025 Pearson Education, Inc.

105) Oil and gas firm Shell uses ________ to help re-engineer processes to become more efficient.

A) artificial intelligence B) corporate governance C) consultants D) robots Answer: A Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Application 106) The use of AI to analyze data about employee behavior may help alleviate concerns about workplace privacy because managers can look at data at the group or organizational level ________.

A) without compromising employee identities B) without fear of legal reprisal C) and make decisions about what to do using AI D) and punish employees accordingly Answer: A Diff: 3 AACSB: Reflective thinking Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept 107) An organization communicates openly to its employees about violent incidents in the workplace and what's being done to handle them. This is an example of a ________ control strategy.

A) feedback B) reactive C) concurrent D) feedforward Answer: A Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept

30 Copyright © 2025 Pearson Education, Inc.

108) Most organizational theft is committed by ________.

A) shoplifters B) cybercriminals C) organized crime rings D) employees Answer: D Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept 109) Firms often monitor employee emails and Internet activity to ________.

A) limit sexual harassment claims B) reduce product liability claims C) reduce the risk of data breaches D) limit employee fraternization Answer: C Diff: 3 AACSB: Application of knowledge Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Application 110) Corporate governance ________.

A) refers to executive governance practices in companies B) is a system used to govern a corporation so that the interests of corporate owners are protected C) is a term that refers to legal agreements made between two or more partner firms D) refers to the compliance of the company to applicable laws and regulations Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept 111) Two areas in which corporate governance is being reformed are the role of boards of directors and ________.

A) executive bonus systems B) financial reporting C) reports to stockholders D) reporting to government agencies Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept

31 Copyright © 2025 Pearson Education, Inc.

112) The Sarbanes-Oxley Act called for ________.

A) increased pollution control measures from the government B) more disclosure and transparency of corporate financial information C) limited accountability of directors and executives of corporations D) more social contribution from companies in the United States Answer: B Diff: 2 AACSB: Reflective thinking Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept 113) Managers tend to use more direct supervision and highly centralized decision making for control in less technologically advanced countries.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept 114) Embezzlement and fraudulent filing of expenses are examples of employee theft.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept 115) Employers establish specific policies defining theft and fraud and discipline procedures.

This is an example of a concurrent control measure to control employee theft.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept 116) Using corporate hotlines or other mechanisms for reporting and investigating workplace violence is an example of feedback control.

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept

32 Copyright © 2025 Pearson Education, Inc.

117) Employers cannot legally read an employee's email if it is marked "confidential."

Answer: FALSE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept 118) One way to limit employee theft is to carefully screen job candidates.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept 119) The Sarbanes-Oxley Act called for more disclosure and transparency of corporate financial information.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept 120) The Sarbanes-Oxley Act of 2002 requires senior managers to certify their financial results.

Answer: TRUE Diff: 1 AACSB: Reflective thinking Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept 121) Provide a few examples for feedforward strategies to reduce employee theft.

Answer: The following strategies can be used to control employee theft.

1. Careful prehiring screening 2. Educating and training employees about policies 3. Performing professional reviews to study internal controls 4. Involving employees in writing policies 5. Establish specific policies defining theft and fraud and discipline procedures Students may provide two of the examples listed above.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept

33 Copyright © 2025 Pearson Education, Inc.

122) Employers are increasingly monitoring employees' activities involving the use of company technology, particularly computers and cell phones. Explain why employers believe such monitoring is necessary.

Answer: Employees are hired to work, not to surf the Web. Recreational on-the-job Web surfing is thought to cost billions of dollars in lost work productivity annually. Watching online videos clogs corporate computer networks, making the transmission of business-related data slower. Employers don't want to risk being sued for creating a hostile work environment because of offensive messages or an inappropriate image on a coworker's computer screen. Concerns about racial or sexual harassment are one reason companies might want to monitor or keep backup copies of all email. Managers want to ensure that company secrets are not being leaked.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept 123) Explain the role of the board of directors.

Answer: Board members are supposed to be an independent group that monitors the firm's management and looks out for the shareholders' best interest. Members have to ensure the company is in full compliance with all laws and regulations and operates according to accepted business practices and industry and professional standards. The board's role in monitoring the firm expanded significantly due to the passage of the Sarbanes-Oxley Act in 2002.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept 124) List some of the employee behaviors and activities that many organizations now monitor.

Answer: Email usage and content, Internet activity, computer keystrokes, cell phone use and text messaging, and company vehicle locations are widely tracked by many employers.

Employers can tap your work phone, monitor you in an employee bathroom or dressing room, and monitor all computer activity.

Diff: 2 AACSB: Written and oral communication Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept

34 Copyright © 2025 Pearson Education, Inc.

125) In a short essay, define corporate governance and describe some of the current trends in this area.

Answer: Corporate governance is the system used to govern a corporation so that the interests of corporate owners are protected. In response to several recent business scandals, two areas in which corporate governance is being reformed are the role of boards of directors and financial reporting. The cozy, quid pro quo composition of corporate boards, where board members are frequently peers of other corporations, is changing considerably. The Sarbanes-Oxley Act of 2002 puts greater demands on board members of publicly traded companies in the United States to do what they were empowered and expected to do. In addition to expanding the role of boards of directors, the Sarbanes-Oxley Act also called for more disclosure and transparency of corporate financial information. In fact, senior managers in the United States are now required to certify their companies' financial results. These types of changes should lead to better information-that is, information that is more accurate and reflective of the firm's financial condition.

Diff: 3 AACSB: Written and oral communication Learning Obj.: LO 18.5: Discuss contemporary issues in control.

Classification: Concept

35 Copyright © 2025 Pearson Education, Inc.