Exploring Management, 3rd Edition Test Bank

Exploring Management, 3rd Edition By Schermerhorn EditionMultinational Financial Management, 12th Edition

Package Title: Test Bank Course Title: Schermerhorn Exploring 3e Chapter Number: 01

Multiple Choice

1. A person who supports and is responsible for the work of others is called a(n) __________. a) leader b) manager c) employee d) shareholder Answer: b Page: See page 4 Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

2. The three levels of management are: a) first, second, and third. b) technical, conceptual, and human. c) top, middle, and bottom. d) top, middle, and first-line.

Answer: d Page: See page 4 Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

3. Division managers, regional managers, and branch managers are known as: a) first-line managers. b) middle managers. c) top managers. d) nonmanagerial workers.

Answer: b Page: See page 4 Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

4. Managers who oversee the work of large departments or divisions consisting of several smaller teams are called: a) supervisors. b) first line managers. c) directors. d) middle managers.

Answer: d Page: See page 5 Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

5. Which of the following would a middle manager report to? a) First line manager b) Vice president c) Chairman of the board d) All of the above Answer: b Page: See page 4 Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

6. Tom is responsible for a group of manufacturing assembly workers who report to him.

Tom is a __________ manager. a) top b) first-line c) middle d) senior Answer: b Page: See page 4 Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

7. Top level managers focus on: a) short term plans. b) long term success.

c) middle managers. d) the board of directors.

Answer: b Page: See page 5 Level: Medium Learning Objective 1:Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

8. A person who guides the performance of an organization as a whole or of one of its major parts is called a: a) supervisor. b) first line manager. c) top level manager. d) middle manager.

Answer: c Page: See page 5 Level: Easy Learning Objective 1:Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

9. The primary responsibility of the board of directors is to __________. a) tell the top management what to do b) oversee the affairs of the organization c) make daily operational decisions d) do tactical planning Answer: b Page: See page 6 Level: Medium Learning Objective 1:Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

10. __________ is the requirement to show performance results to a supervisor. a) Dependability b) Durability c) Delegation d) Accountability Answer: d Page: See page 6 Level: Easy

Learning Objective 1:Explain what it means to be a manager.

Section Reference: Accountability is a cornerstone of managerial performance.

11. Managers have a(n) __________ on those who report to them. a) accountability b) dependency c) fondness d) none of the above Answer: b Page: See page 6 Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Accountability is a cornerstone of managerial performance.

12. Which of the following is one of the quality of work life (QWL) issues? a) Being respected and valued b) Fair pay c) Safe work conditions d) Opportunities to learn e) All of the above Answer: e Page: See page 7 Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Effective managers help others achieve high performance and satisfaction.

13. Effective managers help others to achieve high performance and __________ in their work. a) salary b) profits c) rewards d) satisfaction Answer: d Page: See page 7 Level: Medium Learning Objective 1:Explain what it means to be a manager.

Section Reference: Effective managers help others achieve high performance and satisfaction.

14. Which of the following management issues is most associated with the concept of “quality of work life” or QWL? a) Continuous improvement b) Job satisfaction c) Total quality management d) Customer service Answer: b Page: See page 7 Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Effective managers help others achieve high performance and satisfaction.

15. The upside down pyramid clearly shows that the job of top level managers is to support: a) middle managers. b) first line managers. c) operating workers. d) all of the above.

Answer: d Page: See page 8 Level: Medium Learning Objective 1: Identify and apply the concepts of the chapter.

Section Reference: Chapter Review

16. The process of arousing enthusiasm and inspiring efforts to achieve goals is called: a) leading. b) planning. c) organizing. d) controlling.

Answer: a Page: See page 12 Level: Easy Learning Objective 1:Describe what managers do and what skills they use.

Section Reference: Managers plan, organize, lead, and control.

17. The process of assigning tasks, allocating resources, and coordinating the activities of individuals and groups is known as: a) organizing.

b) planning. c) leading. d) controlling.

Answer: a Page: See page 12 Level: Easy Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers plan, organize, lead, and control.

18. The managerial function focused on measuring performance and correcting as necessary is known as the: a) control function. b) technical skills function. c) organizing function. d) planning function. e) leading function.

Answer: a Page: See page 13 Level: Easy Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers plan, organize, lead, and control.

19. When managers __________, they stay in contact with people as they work, gather and interpret information on performance results, and use this information to make adjustments. a) plan b) lead c) organize d) control Answer: d Page: See page 13 Level: Medium Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers enact informational, interpersonal, and decisional roles.

20. When a manager acts as a resource allocator or negotiator for his/her organization, she is acting in a(n) __________ role. a) entrepreneurial b) decisional c) interpersonal

d) informational Answer: b Page: See page 13 Level: Medium Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers enact informational, interpersonal, and decisional roles.

21. Which of the following set of skills is most important at lower organizational levels? a) Planning b) Conceptual c) Technical d) Human Answer: c Page: See page 15 Level: Medium Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills.

22. The ability to work well in cooperation with other people is called a(n) __________ skill. a) conceptual b) decisional c) technical d) human/emotional intelligence e) informational Answer: d Page: See page 15 Level: Medium Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills

23. Which of the following skills is the least necessary to senior managers? a) Technical b) Leading c) Conceptual d) Interpersonal Answer: a Page: See page 15 Level: Medium

Learning Objective 1:Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills 24. Of the following, which is NOT one of the six “must have” managerial skills? a) Self-management b) Critical thinking c) Professionalism d) Expressiveness Answer: d Page: See page 17 Level: Difficult Learning Objective 1:Describe what managers do and what skills they use.

Section Reference: Managers can and should learn from experience.

25. The worldwide interdependence of resource flows, product markets, and business competition is called: a) nation building. b) corporate dominance. c) globalization. d) strategic marketing.

Answer: c Page: See Page 19 Level: Easy Learning Objective 1: Identify important career issues in the workplace.

Section Reference: Globalization and job migration are changing the world of work.

26. Contracting for work that is performed by workers in other countries is called __________. a) subcontracting b) job migration c) global marketing d) global sourcing Answer: d Page: See page 20 Level: Easy Learning Objective 1: Identify important career issues in the workplace.

Section Reference: Globalization and job migration are changing the world of work.

27. The oversight of corporate management by the board of directors is called __________. a) organizational control b) corporate governance c) strategic planning d) management interference Answer: b Page: See Page 21 Level: Easy Learning Objective 1: Identify important career issues in the workplace.

Section Reference: Failures of ethics and corporate governance are troublesome.

28. __________ describes the composition of a workforce based on factors such as race, gender, age, religious affiliation, sexual orientation, and able-bodiedness. a) Discrimination b) Prejudice c) Intellectual capital d) Workforce diversity Answer: d Page: See Page 22 Level: Easy Learning Objective 1: Identify important career issues in the workplace.

Section Reference: Diversity and discrimination are continuing social priorities.

29. By 2030, more than __________ percent of the population of the United States will be aged 65+ years. a) 10 b) 20 c) 40 d) 75 Answer: b Page: See page 22 Level: Difficult Learning Objective 1: Identify important career issues in the workplace.

Section Reference: Diversity and discrimination are continuing social priorities.

30. __________ is the display of negative irrational attitudes toward women or minorities. a) Discrimination b) Fairness

c) Attitude d) Prejudice Answer: d Page: See page 23 Level: Medium Learning Objective 1: Identify important career issues in the workplace.

Section Reference: Diversity and discrimination are continuing social priorities.

31. The lack of women and minorities in senior management positions can be explained by __________. a) senior management b) the glass ceiling effect c) statistics d) historical data Answer: b Page: See Pages 22-23 Level: Medium Learning Objective 1: Identify and apply the concepts of the chapter.

Section Reference: Chapter Review

32. The collective brainpower or shared knowledge of a workforce is called __________. a) intellectual capital b) individual knowledge c) personality traits d) groupthink Answer: a Page: See Page 24 Level: Easy Learning Objective 1: Identify important career issues in the workplace.

Section Reference: Intellectual capital and self-management skills are essential for career success

33. Refusing to hire or promote a person in a minority group for reasons other than their qualifications is called: a) affirmative action. b) prejudice. c) discrimination. d) intellectual freedom.

Answer: c

Page: See Page 23 Level: Medium Learning Objective 1: Identify important career issues in the workplace.

Section Reference: Intellectual capital and self-management skills are essential for career success

34. Intellectual capital = __________ a) Competency  Commitment b) Personality  Effort c) Competency  Money d) Personality  Commitment Answer: a Page: See Page 24 Level: Medium Learning Objective 1: Identify important career issues in the workplace.

Section Reference: Intellectual capital and self-management skills are essential for career success

35. A shamrock organization consists of __________. a) full time workers b) part time employees c) independent contractors d) all of the above Answer: d Page: See page 23 Level: Easy Learning Objective 1: Identify important career issues in the workplace.

Section Reference: Intellectual capital and self-management skills are essential for career success

Question Type: True/False

36. In a typical business, vice president of marketing would be an example of a middle manager.

Answer: False Page: See section subtitle and page 4 Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

37. There is only one type and one level of manager.

Answer: False Page: See page 4 Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

38. The levels of work and responsibility remain fairly constant in management, regardless of position in the organization.

Answer: False Page: See Figure 1.1, page 4 Level: Easy Learning Objective 1: Identify and apply the concepts of the chapter.

Section Reference: Chapter Review 39. In nonprofit organizations, the “board of directors” is often called the “board of trustees.”

Answer: True Page: See Figure 1.1, page 4-6 Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

40. In the traditional organization, accountability flows downward.

Answer: False Page: See page 6; managers are held accountable by those above them.

Level: Medium Learning Objective 1:Explain what it means to be a manager.

Section Reference: Accountability is a cornerstone of managerial performance..

41. Your text author defines effective manager as someone who successfully helps others achieve both high performance and satisfaction in their work.

Answer: True Page: See page 7

Level: Easy Learning Objective 1:Explain what it means to be a manager.

Section Reference: Effective managers help others achieve high performance and satisfaction.

42. Today, the “best” managers are order-givers, who focus mainly on giving clear directions.

Answer: False Page: See page 7 Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Managers must meet multiple and changing expectations.

43. The upside-down pyramid view puts workers at the top of the organization.

Answer: False Page: See page 7 Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Managers must meet multiple and changing expectations.

44. While there are four functions of management, only the top managers are involved in the planning function.

Answer: False Page: See page 11 Level: Medium Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers plan, organize, lead, and control.

45. It is in the organizing function that people are inspired and commitments are built to achieve the goals set in the planning function.

Answer: False Page: See page 12; the leading function is where people are inspired Level: Medium Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers plan, organize, lead, and control.

46. Measuring performance and taking action to get the desired results is called leading.

Answer: False Page: See page 12 Level: Easy Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers plan, organize, lead, and control.

47. Another way of looking at the work of managers is to consider their key “roles,” primarily the informational, technical, and decisional roles.

Answer: False Page: See page 13 Level: Medium Learning Objective 1: Identify and apply the concepts of the chapter.

Section Reference: Chapter Review

48. The management functions are always performed one at a time and step-by-step.

Answer: False Page: See page 13 Level: Medium Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers enact informational, interpersonal, and decisional roles.

49. Since much of what a manager needs to get done is beyond their capabilities alone, effective networking can often mean the difference between success and failure.

Answer: True Page: See page 14 Level: Medium Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers pursue action agendas and engage in networking.

50. Through networking, managers build and maintain positive relationships with other people, ideally those whose help might be useful someday.

Answer: True Page: See page 14 Level: Medium Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers pursue action agendas and engage in networking.

51. Upon entry into a career, one’s technical skills tend to be critical.

Answer: True Page: See page 15 Level: Easy Learning Objective 1: Identify and apply the concepts of the chapter.

Section Reference: Chapter Review

52. The two primary areas of skill in emotional intelligence are connection with self and connection with others.

Answer: True Page: See page 16 Level: Medium Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills.

53. Once you have completed your college degree, you will finally be free of the need to keep learning!

Answer: False Page: See page 16-17; your degree is just a license to keep learning! (lifelong learning) Level: Easy Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers can and should learn from experience.

Question Type: Fill-in-the-Blank

54. __________ are persons who directly supervise, support, and help activate work efforts of others to achieve performance goals.

Answer: Managers Page: See page 4 Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

55. __________ managers oversee the work of large departments or divisions consisting of several smaller teams.

Answer: Middle Page: See page 5 Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

56. The board of directors in a business organization is elected by the __________.

Answer: stockholders Page: See page 6 Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

57. __________ describes the requirement of one person to answer to a higher authority, for performance achieved in their area of responsibility.

Answer: Accountability Page: See page 6 Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Accountability is a cornerstone of managerial performance.

58. A manager is held accountable by __________ and is dependent upon his/her __________.

Answer: upper or top management; subordinates or employees Page: See chart on page 6 Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Accountability is a cornerstone of managerial performance

59. Today, managers are more often seen as __________ rather than as order-givers.

Answer: coordinators or coaches Page: See page 8 Level: Medium Learning Objective 1: Explain what it means to be a manager.

Section Reference: Managers must meet multiple and changing expectations.

60. The four key functions of management are __________, __________, __________, and __________.

Answer: planning; organizing; leading; controlling Page: See page 11 Level: Easy Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers plan, organize, lead, and control.

61. Through __________, managers develop action priorities.

Answer: agenda setting Page: See page 14 Level: Medium Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers pursue action agendas and engage in networking.

62. Katz argues that managers need three essential skill sets to be successful, including __________, __________, and __________ skills.

Answer: technical, human; conceptual Page: See page 15 Level: Easy Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills.

63. One approach to evaluating the human skills of managers is to look at their level of __________.

Answer: emotional intelligence Page: See page 16 Level: Easy Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills

64. Of the skills required in management, the one that typically grows in importance as one moves up in managerial responsibility is __________ skill.

Answer: conceptual Page: See page 16 Level: Medium

Learning Objective 1:Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills

65. __________ is the continuous learning from daily experiences.

Answer: Lifelong learning Page: See page 16 Level: Medium Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers can and should learn from experience.

66. __________ is a code of moral principles that sets standards of conduct for what is “good” and “right” as opposed to “bad” or “wrong.”

Answer: Ethics Page: See page 20 Level: Easy Learning Objective 1: Identify important career issues in the workplace.

Section Reference: Globalization and job migration are changing the world of work.

67. __________ is the ability to understand oneself, exercise initiative, accept responsibility, and learn from experience.

Answer: Self-management Page: See page 25 Level: Medium Learning Objective 1: Identify important career issues in the workplace Section Reference: Intellectual capital and self-management skills are essential for career success.

Question Type: Essay

68. Why is the job of managing so challenging?

Answer: Managers have to work through other people to accomplish work. In addition, the environment in which they work is changing, accountability is increasing, and the pace of work is hectic. Added to this, the work being done is critical to society.

Page: See pages 4, 6, 10, 19 Level: Medium Learning Objective 1: Explain what it means to be a manager.

Learning Objective 2: Describe what managers do and what skills they use.

Section Reference 1: Organizations have different types and levels of managers.

Section Reference 2: Accountability is a cornerstone of managerial performance.

Section Reference 3: Managerial work is often intense and demanding.

Section Reference 4: Managers can and should learn from experience.

69. Why might emotional intelligence be so important in a managerial position?

Answer: Since managers work through other people, and since actions speak louder than words, effective managers must be touch with and in control of themselves first, in order to set the example for their followers. In addition, managers need to be able to reach out to where their followers are, understand where they are, and be able to lead them to where they would like the followers to be. All of this is based on the ability of the manager to understand self and connect with others, the essence of emotional intelligence.

Page: See pages 15, 16 Level: Medium Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills.

70. Name the three levels of management and define their primary responsibilities.

Answer: The levels of management are top, middle and first-line. Top level managers are responsible for the overall performance of the organization, overseeing middle managers and long term strategic planning. Middle managers report to the top level managers and are responsible for overseeing the first-line managers and short term strategic planning. First-line managers oversee non-managerial employees and are responsible for day to day tactical operations.

Page: See pages 4, 5 Level: Easy Learning Objective 1: Explain what it means to be a manager.

Section Reference: Organizations have different types and levels of managers.

71. Name the four steps in the management process and define each of them.

Answer: The four steps in the management process are planning, organizing, leading and controlling. Planning involves setting performance objectives and the strategies for meeting them. Organizing involves arranging tasks and assigning the responsibilities and other resources required to complete them. Leading includes inspiring and motivating employees who must do the work. Controlling involves measuring performance and taking necessary corrective actions.

Page: See pages 11-13

Level: Medium Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers plan, organize, lead, and control.

72. Name the three types of skills that managers need and define each of them.

Answer: The skills that managers need are conceptual, human and technical. Conceptual skills include analytical decision making and integrative problem solving. Human skills are interpersonal skills and include the ability to communicate and work well with others.

Technical skills are the professional skills necessary to effectively and efficiently perform a task.

Page: See page 15 Level: Medium Learning Objective 1: Describe what managers do and what skills they use.

Section Reference: Managers use a variety of technical, human, and conceptual skills.

File: mod02, Chapter 2: Management Learning

Multiple Choice

1. Which of the following management styles came first? a) Classical approach b) Humanistic perspective c) Learning organization d) None of the above Ans: a Page: See page 32 Level: Easy Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

2. The Principles of Scientific Management was written in 1911 by __________.* a) Abraham Maslow b) Frederick W. Taylor c) Philip Kotler d) Douglas McGregor Ans: b Page: See page 32 Level: Easy Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

3. Classical approaches to management include all of the following EXCEPT: a) Weber’s bureaucratic organization. b) Fayol’s administrative principles. c) Maslow’s hierarchy of human needs. d) Taylor’s principles of scientific management.

Ans: c Page: See page 32 Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches. *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

4. __________ management emphasizes careful selection and training of workers and supervisory support. a) Scientific b) Behavioral c) Contingency d) Autocratic Ans: a Page: See page 33 Level: Easy Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

5. Carefully designing jobs with efficient work methods is necessary to __________ management. a) scientific b) behavioral c) contingency d) laissez-faire Ans: a Page: See page 33 Level: Easy Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

6. One of the principles of scientific management is __________. a) understanding human needs b) flexible time off c) training and motivating workers d) cross functional teams Ans: c Page: See page 33 Level: Easy Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance. *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

7. The president of Sure Products Inc. wants his manufacturing manager to clearly define the steps in the process, train the workers to efficiently do their jobs, and financially reward them on the basis of performance. The president is practicing __________. a) contingency thinking b) scientific management c) Theory Y’s beliefs d) learning organization principles Ans: b Page: See page 33 Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

8. Two key elements of Weber’s bureaucracy were fairness and __________. a) informality b) history c) participation d) efficiency Ans: d Page: See page 34 Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Weber’s bureaucratic organization is supposed to be efficient and fair.

9. According to Max Weber, a(n) ________ is a rational and efficient form of organization based on logic, order, and legitimate authority.* a) learning organization b) adhocracy c) government agency d) bureaucracy Ans: d Page: See page 34 Level: Easy Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Weber’s bureaucratic organization is supposed to be efficient and fair.

*Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

10. If Weber were able to see today’s bureaucracies in action, he would most likely be: a) pleased. b) disappointed. c) indifferent. d) optimistic.

Ans: b Page: See page 35 Level: Difficult Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Weber’s bureaucratic organization is supposed to be efficient and fair.

11. Which of the following is NOT a part of Max Weber’s bureaucracy?* a) Division of labor b) Formal rules and procedures c) Employees’ personal needs d) Careers based on merit Ans: c Page: See page 34 Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Weber’s bureaucratic organization is supposed to be efficient and fair.

12. Millennials consist of those born between __________. a) 1950-1960 b) 1961-1972 c) 1983-1981 d) 1982-1996 Ans: d Page: See page 35 Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Weber’s bureaucratic organization is supposed to be efficient and fair.

13. The writings of Fayol are the basis for our modern understanding of: a) the three managerial skill sets. b) the four functions of management. c) the key managerial roles. *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

d) the four P’s of marketing. e) scientific management.

Ans: b Page: See page 36 Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Fayol’s administrative principles describe managerial duties and practices.

14. The five duties of management, according to Fayol, are foresight, organization, command, coordination, and __________. a. insight b. analysis c. accountability d. control Ans: d Page: See page 36 Level: Difficult Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Fayol’s administrative principles describe managerial duties and practices.

15. The individual considered by many to be a prophet of today’s management style is __________.* a) Frederick Taylor b) Mary Parker Follett c) Max Weber d) Abraham Maslow Ans: b Page: See page 38 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Follett viewed organizations as communities of cooperative action.

16. Bert and John Jacobs, co-founders of the company Life is Good, suggests that the message of the “Life is Good” brand is to: a) strive for perfectionism. b) decide to be happy today. c) be always on the lookout for that special person. d) strive for a big promotion. *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: b Page: See page 39 Level: Easy Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Follett viewed organizations as communities of cooperative action.

17. All of the following “modern” management ideas actually find their roots in the writings of Mary Parker Follett EXCEPT:* a) employee ownership. b) profit sharing. c) gain-sharing plans. d) profit above all.

Ans: d Page: See page 39 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Follett viewed organizations as communities of cooperative action.

18. Based on the findings of the Hawthorne studies, as a manager you know that: a) giving special attention to your employees will likely increase their performance. b) increasing the lighting of employees’ work area will increase their performance. c) improving the working conditions for your workers will increase their performance. d) workers will not sacrifice pay just to keep coworkers happy. e) workers react consistently to work conditions and wages.

Ans: a Page: See page 40 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: The Hawthorne studies focused attention on the human side of organizations.

19. One of the surprise findings in the Hawthorne studies was that __________. a) productivity increased with changes in lighting b) productivity was influenced by group behavior c) an increase in wages always resulted in an increase in productivity d) All of the above Ans: b Page: See page 40 *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: The Hawthorne studies focused attention on the human side of organizations.

20. The term “Hawthorne Effect” was used to explain some of the important findings of the Hawthorne studies. What does the term mean?* a) Productivity is determined by efficiency. b) Physical conditions of work are more important than social relationships. c) People given special attention tend to perform as expected. d) When jobs are designed scientifically, performance improves.

Ans: c Page: See page 40 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: The Hawthorne studies focused attention on the human side of organizations.

21. The Hawthorne studies: a) were poorly designed from a research perspective. b) provide weak empirical support for their conclusions. c) are criticized for generalizing their findings. d) represent a shift in research attention from technical to human concerns. e) All of the above are true about Hawthorne studies.

Ans: e Page: See page 40 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: The Hawthorne studies focused attention on the human side of organizations.

22. The __________is the tendency of persons singled out for special attention to perform as expected. a) management of participative measures b) management of scientific alternatives c) Hawthorne effect d) theory of Y management Ans: c Page: See page 40 Level: Medium *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: The Hawthorne studies focused attention on the human side of organizations.

23. A(n) __________ is a physiological or psychological deficiency that a person wants to satisfy.* a) wish b) need c) expense d) Hawthorne effect Ans: b Page: See page 41 Level: Easy Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

24. Maslow’s __________ principle states that people act to satisfy unfulfilled needs.* a) deficit b) desire c) want d) care Ans: a Page: See page 42 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

25. According to Maslow, which of the following is in the highest “need” category? a) Getting a date for the weekend b) Having a job you love, which also allows you to feel fulfilled c) Having enough money to pay rent d) Being accepted into a fraternity or sorority on campus Ans: b Page: See page 41 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches. *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

26. __________ originally developed the hierarchy of human needs theory. a) Max Weber b) Frederick Taylor c) Abraham Maslow d) Douglas McGregor Ans: c Page: See page 41 Level: Easy Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

27. From the Maslow’s hierarchy of needs theory, which of the following needs is considered to be the most important? a) Safety b) Social c) Self-actualization d) Physiological Ans: d Page: See page 41 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

28. From the Maslow’s hierarchy of needs theory, which of the following needs occupies the highest pedestal in the hierarchy? a) Social b) Physiological c) Self-actualization d) Esteem Ans: c Page: See page 41 Level: Easy *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

29. Maslow’s progression principle states that __________.* a) all needs can be satisfied by everybody b) needs can be satisfied simultaneously c) activated needs are not important in human behavior d) needs must be satisfied sequentially beginning with the lowest Ans: d Page: See page 41 Level: Difficult Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

30. At which level of needs do Maslow’s progression principle and deficit principle cease to exist? a) Physiological b) Self-actualization c) Safety d) Esteem Ans: b Page: See page 42 Level: Difficult Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

31. Theory X and Theory Y were developed by __________. a) Max Weber b) Frederick Taylor c) Chris Argyris d) Douglas McGregor Ans: d Page: See page 42 Level: Easy *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: McGregor believed managerial assumptions create self-fulfilling prophecies.

32. Which of the following is NOT a part of Theory X? a) Employees like responsibility b) Workers are lazy c) Workers prefer to follow d) Employees like to work Ans: a Page: See page 42 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: McGregor believed managerial assumptions create self-fulfilling prophecies.

33. A faculty member complains that her students are lazy, don’t really want to be in school, and are very irresponsible in their studies. This faculty member holds a __________ assumption.* a) Theory Y b) Theory X c) Theory A d) Theory B Ans: b Page: See page 42 Level: Difficult Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: McGregor believed managerial assumptions create self-fulfilling prophecies.

34. Theory __________ assumes people are willing to work, accept responsibility, and are selfdirected. a) Y b) Z c) X d) A Ans: a Page: See page 42 Level: Easy Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: McGregor believed managerial assumptions create self-fulfilling prophecies. *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

35. Which of the following is NOT a part of Theory Y?* a) Employees like work b) Employees want responsibility c) Employees are capable of self-control d) Employees are creative e) All of the above belong to theory Y Ans: e Page: See page 42 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: McGregor believed managerial assumptions create self-fulfilling prophecies.

36. Argyris would argue that high absenteeism and poor morale is likely due to:* a) poorly designed tasks interfering with efficiency. b) a poorly defined hierarchy of authority. c) a mismatch between management practices and normal adult behavior. d) a lack of control and enforcement. e) the absence of managerially-defined plans and directions.

Ans: c Page: See page 43 Level: Difficult Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Argyris suggests that workers treated as adults will be more productive.

37. Chris Argyris’ beliefs, as presented in his book Personality and Organization, are in disagreement with __________. a) Theory Y b) the Hawthorne studies c) the Maslow’s hierarchy of needs theory d) the management practices found in traditional organizations Ans: d Page: See page 43 Level: Difficult Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Argyris suggests that workers treated as adults will be more productive.

*Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

38. Management science and __________ apply mathematical techniques to solve management problems. a) behavior analysis b) contingency theory c) operations research d) participative management Ans: c Page: See page 45 Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Managers use quantitative analysis and tools to solve complex problems.

39. The study of how organizations produce goods and services is called __________.* a) marketing operations b) learning practice c) contingency practice d) operations management Ans: d Page: See page 46 Level: Medium Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Managers use quantitative analysis and tools to solve complex problems.

40. A(n) __________ transforms resource inputs from the environment into product outputs.* a) administrative staff b) closed system c) open system d) contingency plan Ans: c Page: See page 46 Level: Medium Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Organizations are open systems that interact with their environments.

41. Modern management thinking would suggest that: a) a “best” way to manage does exist. b) the discovery of a workable process can be transferred to all other organizations. c) once a process is perfected, it will not have to be changed. d) the best answer to what works “depends” on the situation. *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

e) people are usually on the same page and they can be managed similarly.

Ans: d Page: See page 48 Level: Medium Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Contingency thinking holds that there is no one best way to manage.

42. Matching management practices with different situations is called __________. a) classical management b) situational analysis c) contingency thinking d) administrative management Ans: c Page: See page 48 Level: Medium Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Contingency thinking holds that there is no one best way to manage.

43. Which of the following can be described as the best management style?* a) Classical b) Participative c) Administrative d) It depends on the situation Ans: d Page: See page 48 Level: Medium Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Contingency thinking holds that there is no one best way to manage.

44. Managing with an organization-wide commitment to continuous improvement, product quality, and customer needs is called: a) a learning organization. b) operations management. c) management by objectives. d) total quality management.

Ans: d Page: See page 49 *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Quality management focuses attention on continuous improvement.

45. __________ involves always searching for new ways to improve work quality and performance. a) Operations management b) Continuous improvement c) Quantitative analysis d) Operations research Ans: b Page: See page 49 Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Quality management focuses attention on continuous improvement.

True/False

46. Taylor’s scientific management sought efficiency in job performance.

Ans: True Page: See page 32 Level: Easy Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

47. The only goal of scientific management was to increase worker efficiency for the benefit of the company.

Ans: False Page: See page 33 Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

48. Scientific management emphasizes creativity and risk taking. *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: False Page: See page 33 Level: Easy Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

49. In an ideal bureaucracy, workers are selected and promoted on ability and performance.

Ans: True Page: See page 34 Level: Easy Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Weber’s bureaucratic organization is supposed to be efficient and fair.

50. Weber was the first to understand that bureaucracies are inefficient forms of organization that should be avoided.

Ans: False Page: See page 34 Level: Easy Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Weber’s bureaucratic organization is supposed to be efficient and fair.

51. The work by Henri Fayol can help you understand the functions that you must perform as the manager of a student organization.

Ans: True Page: See page 36 Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Fayol’s administrative principles describe managerial duties and practices.

52. Fayol’s management rule of coordination provides and mobilizes resources to implement a plan.

Ans: False Page: See page 36 *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Level: Easy Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Fayol’s administrative principles describe managerial duties and practices.

53. Follett argued that organizations are like communities, where managers and employees should work together without a spirit of domination.

Ans: True Page: See page 38 Level: Easy Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Follett viewed organizations as communities of cooperative action.

54. Follett would say that the successful 21st-century executive must be an inspiring leader who attracts talented people and motivates them in a setting where everyone can do his or her best work.

Ans: True Page: See page 39 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Follett viewed organizations as communities of cooperative action.

55. The Hawthorne studies established a clear link between working conditions and worker performance.

Ans: False Page: See page 40 Level: Easy Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: The Hawthorne studies focused attention on the human side of organizations.

56. The reason that worker “human needs” are important to managers is that these needs can cause tensions that may influence work attitudes and behaviors.

Ans: True Page: See page 41 Level: Easy *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

57. Maslow believed that there was no order in which human needs were fulfilled.

Ans: False Page: See page 41 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

58. Having a Theory X view of employees can actually encourage Theory X behaviors in your employees.

Ans: True Page: See page 42 Level: Easy Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: McGregor believed managerial assumptions create self-fulfilling prophecies.

59. The essence of Argyris’ work is that management practices should fit the capabilities of the employees they are used to.

Ans: True Page: See page 43 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Argyris suggests that workers treated as adults will be more productive.

60. Another way to look at the work by Argyris is that undesirable employee behaviors may be as much a reflection of a poor management system as it is a matter of poor employees.

Ans: True Page: See page 43 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches. *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Section Reference: Argyris suggests that workers treated as adults will be more productive.

61. Operations management is the study of how organizations produce goods and services.

Ans: True Page: See page 46 Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Managers use quantitative analysis and tools to solve complex problems.

62. Modern management accepts the fact that all techniques are contingent upon the unique situation faced by each manager. In other words, there is no one “best” way.

Ans: True Page: See page 48 Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Contingency thinking holds that there is no one best way to manage.

63. Organizational learning is a never ending process of continuous improvement.

Ans: True Page: See page 48 Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Contingency thinking holds that there is no one best way to manage.

64. In the book Outliers, Malcolm Gladwell argues that great leaders are born, not made.

Ans: False Page: See page 49 Level: Medium Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Quality management focuses attention on continuous improvement.

Fill-in-the-Blank *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

65. Scientific management is associated with the management scholar __________.

Ans: Frederick Taylor Page: See page 32 Level: Easy Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

66. ________ is the science of reducing a job or task to its basic physical motions.

Ans: Motion study Page: See page 33 Level: Easy Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

67. The __________ is an organizational form known for its clear division of labor, structure, hierarchy of authority, and formalized rules and procedures.

Ans: bureaucracy Page: See page 34 Level: Easy Learning Objective 1: Understand the lessons of the classical management approaches.

Section Reference: Weber’s bureaucratic organization is supposed to be efficient and fair.

68. __________ is considered a prophet of management and one of the most important American women in the fields of civics and sociology.

Ans: Mary Parker Follett Page: See page 38 Level: Easy Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Follett viewed organizations as communities of cooperative action.

*Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

69. Following the scientific management era, management thinking moved to include a(n) __________ perspective.

Ans: human resources or behavioral management Page: See page 38 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Follett viewed organizations as communities of cooperative action.

70. The __________ studies at the Western Electric Company in Chicago demonstrated the influence of manager treatment of employees on employee performance.

Ans: Hawthorne Page: See page 40 Level: Easy Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: The Hawthorne studies focused attention on the human side of organizations.

71. The highest order of Maslow’s hierarchy of needs is __________.

Ans: self-actualization Page: See page 41 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

72. McGregor’s work focuses on opposing views of human nature, a positive view known as __________ and a negative view known as __________.

Ans: Theory Y, Theory X (in this order!)

Page: See page 42 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: McGregor believed managerial assumptions create self-fulfilling prophecies.

73. __________ is the systemic use and analysis of data to solve problems and make informed decisions. *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: Analytics Page: See page 45 Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Managers use quantitative analysis and tools to solve complex problems.

74. The study of how organizations produce goods and services is called __________.

Ans: operations management Page: See page 46 Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Managers use quantitative analysis and tools to solve complex problems.

75. The belief that there is no one best way to manage was called __________.

Ans: contingency thinking Page: See page 48 Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Contingency thinking holds that there is no one best way to manage.

76. Managing with an organization-wide commitment to continuous improvement, product quality, and customer needs is called __________.

Ans: total quality management Page: See page 49 Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Quality management focuses attention on continuous improvement.

77. A(n) __________ consistently achieves excellence while creating a high-quality work environment.

Ans: high-performance organization Page: See page 50 Level: Easy Learning Objective 3: Recognize the foundations of modern management thinking. *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Section Reference: Evidence-based management seeks hard facts about what really works.

Essay

78. Compare the scientific management and the behavioral management approaches. Which is best?

Ans: Scientific management focuses on the interaction of workers and work processes to produce more efficient outcomes, while behavioral management focuses on the experience of workers and the response of workers to various management systems. Neither is “best.” Both perspectives are needed to function effectively in today’s complex environment.

Page: See pages 33, 38-43, 48 Level: Medium Learning Objective 1: Understand the lessons of the classical management approaches.

Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Taylor’s scientific management sought efficiency in job performance.

Section Reference: Follett viewed organizations as communities of cooperative action.

79. Why is it necessary for today’s organizations to embrace contingency thinking?

Ans: With the dynamic, ever changing environment of complex relationships between organizations, their internal members, and the external stakeholders, contingency tells us there is no one best structure or set of processes.

Page: See page 48 Level: Medium Learning Objective 3: Recognize the foundations of modern management thinking.

Section Reference: Contingency thinking holds that there is no one best way to manage.

80. What were the Hawthorne studies about? Discuss their purpose, the process, and the results.

Ans: The Hawthorne studies started in 1924 at the Hawthorne Works, a Western Electric plant in Chicago, Illinois. The purpose of the Studies was to determine how economic incentives and physical conditions affected the productivity of workers.

The process was one of isolating six employees, changing their economic incentives and physical environment and measuring the effect that these changes had on their productivity.

The results were surprising in that the changes had little or no affect on the isolated worker’s productivity. However, it was determined that productivity was influenced by psychological factors such as the group responding to the attention that they were getting, the expectations placed on them and to peer pressure from group members. The studies were terminated in 1932. *Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Page: See page 40 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: The Hawthorne studies focused attention on the human side of organizations.

81. What is Maslow’s hierarchy of needs? Define each of them beginning with the most basic.

Ans: Maslow’s hierarchy of needs beginning with the most basic are Physiological –The need for food and shelter; Safety –The need for security, protection and stability; Social – economic – The need for love, affection, and a sense of belonging in one’s relationship with others; Esteem – The need for recognition, respect, prestige, and self esteem; Self-actualization –The need for self-fulfillment and to use one’s abilities to the fullest and most creative extent.

Page: See page 41 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: Maslow described a hierarchy of human needs with self-actualization at the top.

82. Discuss and compare McGregor’s Theory X and Theory Y. Ans: McGregor, in an attempt to convince managers to pay more attention to the social and selfactualization needs of employees, postulated that there were two opposing views of human nature; Theory X and Theory Y. Theory X assumes that people dislike work, lack ambition, are irresponsible and prefer to be led. Theory Y assumes that people want to work, accept responsibility, are self-directed and are creative. McGregor further believed that these two assumptions were self-fulfilling prophecies in the sense that people will behave as you expect them to do.

Theory X managers were thought to have a “command and control” style. Theory Y managers were thought to have a more participative style.

Page: See page 42 Level: Medium Learning Objective 2: Identify the contributions of the behavioral management approaches.

Section Reference: McGregor believed managerial assumptions create self-fulfilling prophecies.

*Note to Professor: All questions that have an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

File: mod03, Chapter 03: Ethics and Social Responsibility

Multiple Choice

1. __________ are a set of standards for what is right and wrong in our conduct.* a) Laws b) Policies c) Ethics d) Practices Ans: c Page: See page 56 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: How do ethics and ethical behavior play out in the workplace?

2. __________ is “right” or “good” in the context of a governing moral code. a) Legal behavior b) Individual behavior c) Management behavior d) Ethical behavior Ans: d Page: See page 56 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: How do ethics and ethical behavior play out in the workplace?

3. Broad beliefs about what is appropriate behavior are called __________. a) values b) judgment c) ethics d) laws Ans: a Page: See page 57 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Section Reference: Ethical behavior is values driven.

4. Personal beliefs such as honesty, caring, and integrity are called __________.* a) beliefs b) ideas c) ethics d) values Ans: d Page: See page 57 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

5. __________ values are preferences about desired end states. a) Ethical b) Instrumental c) Terminal d) Righteous Ans: c Page: See page 57 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

6. __________ values are preferences regarding the means to a desired end. a) Ethical b) Instrumental c) Terminal d) Righteous Ans: b Page: See page 57 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

7. Sam, a college student, wants to be president of a company someday, but he also wants to raise a family and enjoy recreational activities. Sam is focused on his __________ values.* a) terminal b) future c) instrumental d) long term Ans: a Page: See page 57 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

8. Sam is graduating from college and is looking for a position as a first line production manager and would like to become the president someday. He knows what he wants to do in the future, but he also wants to work for a firm with a culture that matches his personal values. This is an example of __________ values. a) terminal b) fixed c) instrumental d) utilitarian Ans: c Page: See page 57 Level: Hard Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

9. Beliefs that good grades are obtained through good study habits or luck in getting the “right” test questions or sitting beside “smart” friends are all examples of __________.* a) good ethics b) instrumental values c) moral-rights d) terminal values Ans: b Page: See page 57 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Section Reference: Ethical behavior is values driven.

10. The __________ view considers ethical behavior to be that which delivers the greatest good to the greatest number of people. a) best b) utilitarian c) justice d) moral rights Ans: b Page: See page 58 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

11. If you argue for increasing the dues for your student organization in order to keep the club solvent, even though some of the members might not be able to afford the increase, you are taking the __________ approach to moral reasoning.* a) individualistic b) utilitarian c) justice d) moral-rights Ans: b Page: See page 58 Level: Hard Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

12. The belief that ethical behavior advances long term self-interests is called the __________ view. a) moral rights b) justice c) individualism d) utilitarian Ans: c Page: See page 59 *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

13. Bill is a business unit manager at Good Products Inc. He has inadvertently come across a competitor’s business plan. Bill’s first thought is to keep it and use it against the competitor.

However, he returns it without looking at it because he feels that long term it is not in his best interest. Bill has a(n) __________ view of moral reasoning.* a) moral rights b) religious c) utilitarian d) individualism Ans: d Page: See page 59 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

14. The belief that ethical behavior treats all people impartially and fairly is called the __________ view. a) individual b) fair c) justice d) moral rights Ans: c Page: See page 59 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

15. XYZ Company has been hit hard by the latest recession. The president has ordered a 10% reduction in the workforce across the board. This decision might be justified as ethical using the __________ approach to moral reasoning. a) utilitarian b) individual c) moral rights d) justice *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: a Page: See page 58 Level: Hard Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

16. John is a department manager. Some of those who report to him are his after work buddies.

Because of this, John often lets his buddies violate department policies while insisting that others follow them. John is guilty of not adhering to the __________ view of moral reasoning. a) moral rights b) protective c) utilitarian d) justice Ans: d Page: See page 59 Level: Hard Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

17. __________ justice focuses on the fair application of policies and rules to all.* a) Interactional b) Procedural c) Fair d) Distributive Ans: b Page: See page 59 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

18. __________ justice focuses on treating people fairly regardless of personal characteristics. a) Instrumental b) Procedural c) Interactional d) Distributive *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: d Page: See page 59 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

19. __________ justice is the degree to which others are treated with respect. a) Utilitarian b) Distributive c) Interactional d) Moral rights Ans: c Page: See page 59 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

20. The belief that ethical behavior respects and protects fundamental rights is called the __________ view. a) moral rights b) protective c) utilitarian d) justice Ans: a Page: See page 60 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

21. Article __________ of the Universal Declaration of Human Rights, United Nations, states that everyone has the right to freedom of thought, conscience, and religion. a) 1 b) 18 c) 23 d) 26 Ans: b *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Page: See page 60 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

22. Article __________ of the Universal Declaration of Human Rights, United Nations, states that everyone has the right to education. a) 1 b) 18 c) 23 d) 26 Ans: d Page: See page 60 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

23. __________ suggests that there is no one right way to behave and that ethics are dependent on the local culture.* a) Procedural rights b) Universalism c) Ethical imperialism d) Cultural relativism Ans: d Page: See page 61 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical can vary across cultures.

24. The phrase “when in Rome, do as the Romans do” reflects which of the following ethical positions? a) A moral rights view b) Moral absolutism c) Distributive justice d) Cultural relativism Ans: d *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Page: See page 61 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical can vary across cultures.

25. The term __________ is used to describe an attempt by one culture to impose its values on another culture.* a) moral rights b) moral absolutism c) ethical imperialism d) cultural relativism Ans: c Page: See page 61 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical can vary across cultures.

26. If you are going on an international trip and your parents tell you “Don’t do anything that you would not do at home,” you are being told to practice ___________. a) moral rights b) moral absolutism c) ethical imperialism d) cultural relativism Ans: b Page: See page 61 Level: Hard Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical can vary across cultures.

27. Common situations for unethical behavior at work include all of the following EXCEPT: a) discrimination. b) sexual harassment. c) favoritism. d) conflicts of interest. .

Ans: c *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Page: See page 62 Level: Hard Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical dilemmas arise as tests of personal ethics and values.

28. A(n) __________ is a situation that although offering potential benefit or gain may also be unethical. a) ethical dilemma b) imperial relativism c) moral rights d) interactional justice Ans: a Page: See page 62 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical dilemmas arise as tests of personal ethics and values.

29. Sally’s manager has asked her to do something that strongly violates her personal values.

Sally is facing an __________.* a) impossible situation b) immoral judgment c) instant crisis d) ethical dilemma Ans: d Page: See page 62 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical dilemmas arise as tests of personal ethics and values.

30. While not a justification for the responsibility of any of the involved parties, your author argues that a primary source of pressure leading to ethical dilemmas comes from __________. a) society b) bosses c) employees d) customers Ans: b *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Page: See page 62 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical dilemmas arise as tests of personal ethics and values.

31. The __________ ethical position is most closely associated with ethical imperialism. a) social universalist b) moral absolutism c) moral right d) distributive justice Ans: b Page: See page 61 Level: Hard Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical dilemmas arise as tests of personal ethics and values.

32. Which of the following is an example of the unethical behavior of discrimination at work? a) Denying people a promotion because of their race or religion. b) Taking bribes in return for making decisions favorable to another person. c) Giving someone privileged information regarding the activities of a customer. d) Using official stationery to make requests from community organizations.

Ans: a Page: See page 62 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical dilemmas arise as tests of personal ethics and values.

33. “No one will ever know about it” is an example of __________ unethical behavior. a) eliminating b) dismissing c) acknowledging d) rationalizing Ans: d Page: See page 63 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Section Reference: People have tendencies to rationalize unethical behaviors.

34. Well-thought out personal rules and strategies for ethical behavior are called __________.* a) ethical dilemmas b) ethical frameworks c) ethical decisions d) unethical behaviors Ans: b Page: See page 65 Level: Easy Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Personal Character and moral development influence ethical decision making.

35. The preconventional stage in Kohlberg’s Three Levels of Moral Development is based on __________ behavior.* a) social-centered b) self-centered c) non-centered d) principle Ans: b Page: See page 66 Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Personal Character and moral development influence ethical decision making.

36. The conventional stage in Kohlberg’s Three Levels of Moral Development is based on __________ behavior. a) social-centered b) self-centered c) non-centered d) principle Ans: a *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Page: See page 66 Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Personal Character and moral development influence ethical decision making.

37. The postconventional stage in Kohlberg’s Three Levels of Moral Development is based on __________ behavior. a) social-centered b) self-centered c) non-centered d) principle-centered Ans: d Page: See page 66 Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Personal Character and moral development influence ethical decision making.

38. Someone in the __________ stage of moral development is likely to make decisions based on social norms, meeting the expectations of others, and living up to agreed-upon obligations. a) preconventional b) conventional c) postconventional d) pastconventional Ans: b Page: See page 66 Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Personal Character and moral development influence ethical decision making.

39. What is the second step in dealing with ethical dilemmas? a) Decide which option to follow b) Recognize the ethical dilemma c) Get the facts d) Identify your options *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: c Page: See page 67 Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Training in ethical decision making can improve ethical conduct.

40. Someone who exposes unethical behavior on the part of others, often senior management, is a __________. a) tattle tail b) whistleblower c) disloyal person d) bad employee Ans: b Page: See page 68 Level: Easy Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Protection of whistleblowers can encourage ethical conduct.

41. Of the following statements about whistleblowers, which is true? a) Unfortunately, whistleblowers are never successful in getting changes made. b) Whistleblowers are subjected to harassment, but fortunately, the law always protects them. c) Whistleblowers are eager to act. d) Whistleblowers careers may suffer.

Ans: d Page: See page 68 Level: Easy Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Protection of whistleblowers can encourage ethical conduct.

42. A(n) __________ manager fails to consider ethics. a) moral b) amoral c) immoral d) Theory X Ans: b *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Page: See page 69 Level: Easy Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Managers as positive models can inspire ethical conduct.

43. John is a middle manager. He chooses to stay out of ethical issues because “they are too messy.” John is a(n) __________ manager. a) moral b) amoral c) immoral d) theory X Ans: c Page: See page 69 Level: Easy Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Managers as positive models can inspire ethical conduct.

44. Many companies are developing a formal statement of values and standards called a __________. a) statement of values b) corporate beliefs statement c) corporate values statement d) code of ethics Ans: d Page: See page 70 Level: Easy Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Formal codes of ethics set standards for ethical conduct.

45. The group of all people and institutions directly impacted by a firm are called __________. a) stock holders b) general partners c) interested parties d) stakeholders Ans: d Page: See page 72 *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Level: Easy Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: What should we know about the social responsibilities of organizations.

46. The obligation of an organization to its stakeholders as well as its own interests is called __________.* a) altruism b) corporate social responsibility c) philanthropy d) corporate interest Ans: b Page: See page 73 Level: Easy Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Social responsibility is an organization’s obligation to best serve society.

47. The __________ view of corporate social responsibility is that business should focus on the pursuit of profits.* a) socioeconomic b) legal c) classical d) entrepreneurial Ans: c Page: See page 74 Level: Medium Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Scholars argue cases for and against corporate social responsibility.

48. The __________ view of corporate social responsibility is that business should focus on contributions to society, not just making profits. a) socioeconomic b) legal c) classical d) entrepreneurial *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: a Page: See page 74 Level: Medium Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Scholars argue cases for and against corporate social responsibility.

49. __________ responsibility exists when an organization earns a profit through the provision of goods and services desired by customers. a) Economic b) Legal c) Ethical d) Discretionary Ans: a Page: See page 75 Level: Easy Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Social responsibility audits measure the social performance of organizations.

50. __________ is making use of natural resources to meet today’s needs while also preserving and protecting the environment for use by future generations. a) Abundant consumer b) Protectionist business c) Sustainable development d) Environmental capital Ans: c Page: See page 77 Level: Hard Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Sustainability is an important social responsibility goal.

51. Risk taking by entrepreneurs striving to solve pressing social issues is called __________. a) socioeconomic dynamics b) social entrepreneurship c) corporate governance *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

d) entrepreneurial spirit Ans: b Page: See page 79 Level: Easy Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Social business and social entrepreneurs point the way in social responsibility.

True/False

52. Fortunately, in deciding on what behavior is ethical, one can simply follow the “letter of the law.”

Ans: False Page: See page 56 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: How do ethics and ethical behavior play out in the workplace?

53. Values tend to be quite flexible within individuals, so we can train employees to hold certain values.

Ans: False Page: See page 57 Level: Hard Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

54. The most common unethical acts by managers and supervisors include verbal, sexual, and racial harassment; misuse of company property; and giving preferential treatment.

Ans: True Page: See page 57 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Section Reference: Ethical behavior is values driven.

55. The individualism view of ethics is somewhat the reverse of the utilitarian view.

Ans: True Page: See page 58-59 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

56. Commutative justice is the degree to which others are treated with dignity and respect.

Ans: False Page: See page 59 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

57. Article 19 of the Universal Declaration of Human Rights, United Nations, states that everyone has the right to freedom of opinion and expression.

Ans: True Page: See page 60 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

58. Ethical dilemmas often arise out of the conflicting desires of managers, employees, and customers.

Ans: True Page: See page 62 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical dilemmas arise as tests of personal ethics and values.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

59. One of the problems in stopping unethical behavior is that those who commit unethical acts often justify their actions in such a way as to make the actions seem acceptable to them.

Ans: True Page: See page 63 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: People have tendencies to rationalize unethical behaviors.

60. According to one survey, almost 25% of U.S. workers admitted to committing unethically questionable acts within the past year.

Ans: False Page: See page 65 Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Personal character and moral development influence ethical decision making.

61. The main reason for the actions of whistleblowers is the praise and recognition that comes from the companies that they help in uncovering problems.

Ans: False Page: See page 68 Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Protection of whistleblowers can encourage ethical conduct.

62. The reason that managers have such a large share of the responsibility for ethical behavior is due to their power and ability to set the tone for the organization.

Ans: True Page: See page 68 Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Managers as positive role models can inspire ethical conduct.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

63. To increase the power and visibility of ethics codes, some companies have new employees sign an agreement to follow the code as a condition of employment.

Ans: True Page: See page 70 Level: Easy Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Formal codes of ethics set standards for ethical conduct.

64. Moral managers consider the ethical implications of their actions as a part of their normal approach to work.

Ans: True Page: See page 69 Level: Easy Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Managers as positive role models can inspire ethical conduct.

65. Research shows that ethics codes can guarantee good conduct.

Ans: False Page: See page 70 Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Formal codes of ethics set standards for ethical conduct.

66. The terms stakeholders and stockholders refer to the same group and are interchangeable.

Ans: False Page: See page 72 Level: Medium Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: What should we know about eh social responsibilities of organizations.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

67. The classical view of corporate responsibility is that the role of business is solely to maximize profits and shareholder value.

Ans: True Page: See page 74 Level: Easy Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Scholars argue cases for and against corporate social responsibility.

68. The highest level of social performance comes through the satisfaction of discretionary responsibility.

Ans: True Page: See page 76 Level: Hard Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Social responsibility audits measure the social performance of organizations.

Fill-in-the-Blank

69. __________ is “right” or “good” in the context of a governing moral code.

Ans: Ethical behavior Page: See page 56 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: How do ethics and ethical behavior play out in the workplace?

70. __________ is defined as the code of moral principles that sets standards of conduct.

Ans: Ethics Page: See page 56 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: How do ethics and ethical behavior play out in the workplace? *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

71. The underlying beliefs and attitudes that help to determine individual behavior are known as __________.

Ans: values Page: See page 57 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

72. The __________ view of moral reasoning considers whether people are treated impartially and fairly according to some applicable standard.

Ans: justice Page: See page 59 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

73. __________ justice focuses on treating people the same regardless of personal characteristics.

Ans: Distributive Page: See page 59 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

74. __________ justice focuses on the fairness of exchanges or transactions.

Ans: Commutative Page: See page 59 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

75. __________ is the belief that there are universal values that apply to all people.

Ans: Moral absolutism Page: See page 61 Level: Easy Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical can vary across cultures.

76. __________ are well-thought-out personal rules and strategies that serve to anchor our ethical decisions and actions.

Ans: Ethical frameworks Page: See page 65 Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Personal character and moral development influence ethical decision making.

77. __________ highlight the risks from public disclosure of one’s actions.

Ans: Spotlight questions Page: See page 67 Level: Medium Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Training in ethical decision making can improve ethical conduct.

78. A(n) __________ is a formal statement of values and ethical standards.

Ans: code of ethics Page: See page 70 Level: Easy Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Formal codes of ethics set standards for ethical conduct.

79. __________ are people and institutions most directly affected by an organization’s performance. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: Stakeholders Page: See page 72 Level: Easy Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: What should we know about the social responsibilities of organizations?

80. __________ is the obligation of the organization to act in ways that serve both its own interests and the interests of its stakeholders.

Ans: Corporate social responsibility Page: See page 73 Level: Easy Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Social responsibility is an organization’s obligation to best serve society.

81. A(n) __________ exists when corporate social responsibility leads to improved financial performance that leads to more socially responsible actions in the future.

Ans: virtuous circle Page: See page 74 Level: Medium Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Scholars argue cases for and against corporate social responsibility.

82. __________ is a goal that addresses the rights of present and future generations as costakeholders of present-day natural resources.

Ans: Sustainability Page: See page 77 Level: Medium Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Sustainability is an important social responsibility goal.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

83. __________ is risk taking by entrepreneurs striving to solve pressing social problems.

Ans: Social entrepreneurship Page: See page 79 Level: Medium Learning Objective 3: Identify when organizations are and are not acting in socially responsible ways.

Section Reference: Social business and social entrepreneurs point the way in social responsibility.

Essay

84. What does the statement “Something may be legal but unethical” mean?

Ans. The “letter of the law” does not always translate into what others would consider as ethical actions. For example, U.S. laws once allowed slavery, permitted only men to vote, and allowed young children to work full-time jobs. Today we consider such actions unethical.

Page: See pages 56-57 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

85. What is the most critical item necessary in order to have ethical behavior in organizations and why?

Ans: Ethical behavior on the part of senior management is the most critical item because senior managers have the position and the power to affect employee behavior.

Page: See pages 68-69 Level: Easy Learning Objective 2: Know how to maintain high standards of ethical conduct.

Section Reference: Managers as positive role models can inspire ethical conduct.

86. What is the relationship between ethics, values, terminal values, and instrumental values?

Ans: Ethics is a code of moral principles that defines right from wrong. Values, in a personal sense, are broad beliefs about what is ethical. Terminal vales and instrumental values are subsets of personal values. Terminal values have to do with desired end states (what a person wants the results of their actions to be) such as happiness, security, and self-respect. Instrumental values determine how a person goes about achieving his/her desired end state.

Page: See pages 57-58 *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: Ethical behavior is values driven.

87. Different people have different views of what is ethical. Discuss each of the four different philosophical views as alternative approaches to moral reasoning.

Ans: The four different views are utilitarian, individual, justice, and moral rights. They are defined as: 1. The utilitarian view is that ethical behavior delivers the greatest good to most people.

2. The individual view is that ethical behavior is in the best long term interest of the individual who is making the decision.

3. The justice view is that ethical behavior which treats people impartially and fairly.

4. The moral rights view is that ethical behavior which respects and protects a person’s fundamental rights.

Page: See pages 58-60 Level: Hard Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical varies among moral reasoning approaches.

88. What are cultural relativism and moral absolutism? How do they influence international business ethics?

Ans: Cultural relativism is the belief that the values and practices of the local area determine what is ethical. Moral absolutism is the belief that there are absolute truths that apply universally and that these truths are more important than local values. Sometimes, one society tries to impose their ethics on another society. This is particularly true in the international business arena. When this occurs, it is called ethical imperialism.

Page: See page 61 Level: Medium Learning Objective 1: Understand how ethics and ethical behavior play out in the workplace.

Section Reference: What is considered ethical can vary across cultures.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

File: mod04, Chapter 4: Managers as Decision Makers

Multiple Choice

1. Identifying and taking action to resolve problems is called __________. a) problem solving b) information competency c) information management d) inquiring Ans: a Page: See page 86 Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers deal with problems posing threats and offering opportunities.

2. The ability to gather and use information to solve problems is called __________.* a) problem solving b) information competency c) information management d) inquiring Ans: b Page: See page 87 Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers deal with problems posing threats and offering opportunities.

3. When something is wrong or likely to go wrong, it is called a __________. a) danger b) potential danger c) performance threat d) mistake Ans: c Page: See page 87 Level: Easy Learning Objective 1: Recognize how managers use information to solve problems. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

Section Reference: Managers deal with problems posing threats and offering opportunities.

4. Information competency involves which of the following skills? a) Locating appropriate data b) Evaluating the data for information potential c) Organizing the information d) All of the above skills Ans: d Page: See page 87 Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers deal with problems posing threats and offering opportunities.

5. Individuals who are proactive information gatherers and are forward thinking are said to be: a) problem seekers. b) problem avoiders. c) lazy managers. d) problem solvers.

Ans: a Page: See page 88 Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers can be problem avoiders, problem solvers, or problem seekers.

6. Individuals who ignore information that would otherwise signal the presence of a performance threat or opportunity, and who prefer not to make decisions are said to be: a) problem seekers. b) problem avoiders. c) lazy managers. d) problem solvers.

Ans: b Page: See page 88 Level: Easy *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers can be problem avoiders, problem solvers, or problem seekers.

7. A situation that offers the possibility of a better future if the right steps are taken is called a __________. a) performance threat b) potential problem c) performance opportunity d) future problem Ans: c Page: See page 87 Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers deal with problems posing threats and offering opportunities.

8. Approaching a problem in a flexible and spontaneous fashion is called __________. a) logic b) decision making c) systemic thinking d) intuitive thinking Ans: d Page: See page 89 Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers can use systematic and intuitive thinking.

9. A systematic thinker will:* a) try to stay very flexible in his thinking. b) generally be spontaneous. c) be analytical in his approach. d) be creative in his methods.

Ans: c Page: See page 89 Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers can use systematic and intuitive thinking. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

10. The three types of decision making environments are __________, __________, and __________. a) good, neutral, bad b) certain, risk, uncertain c) absolute, not sure, no idea d) certain, not sure, risk Ans: b Page: See page 90 Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make decisions under conditions of certainty, risk, and uncertainty.

11. A decision making environment in which you lack complete information, and it is difficult if not impossible to assign probabilities to the outcomes is called a(n) __________ environment. a) uncertain b) bad c) improbable d) risk Ans: a Page: See page 91 Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make decisions under conditions of certainty, risk, and uncertainty.

12. According to the text, the four cognitive styles of decision making are sensation thinkers, intuitive thinkers, sensation feelers, and __________.* a) risk takers b) intuitive feelers c) sensation takers d) intuitive takers Ans: b Page: See page 90 Level: Medium Learning Objective 1: Recognize how managers use information to solve problems. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

Section Reference: Managers use different cognitive styles to process information for decision making.

13. __________ are comfortable with abstraction and unstructured situations. They tend to be idealistic, prone toward intellectual and theoretical positions, and are logical and impersonal. a) Sensation feelers b) Intuitive thinkers c) Sensation thinkers d) Intuitive feelers Ans: b Page: See page 90 Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers use different cognitive styles to process information for decision making.

14. A decision making environment in which you have complete information on possible alternatives and their consequences is called a __________ environment. a) favorable b) good c) certain d) risk Ans: c Page: See page 90 Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make decisions under conditions of certainty, risk, and uncertainty.

15. When faced with decision circumstances in which the information is incomplete, yet one can still reasonably estimate probabilities for the outcomes of various options, the environment is said to be a(n): a) risk environment. b) certain environment. c) uncertain environment. d) programmed environment. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

Ans: a Page: See page 91 for the relevant definitions Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make decisions under conditions of certainty, risk, and uncertainty.

16. A(n) __________ is a choice among possible alternative courses of action. a) alternative b) inquiry c) guess d) decision Ans: d Page: See page 88 Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make programmed and nonprogrammed decisions when solving problems.

17. A __________ decision applies a solution from past experience to a routine problem. a) correct b) programmed c) nonprogrammed d) complex Ans: b Page: See page 88 Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make programmed and nonprogrammed decisions when solving problems.

18. A __________ decision applies a specific solution crafted for a unique problem. a) simple b) programmed c) nonprogrammed d) questionable Ans: c *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

Page: See page 88 Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make programmed and nonprogrammed decisions when solving problems.

19. Joe, a HR manager, is tired of answering the same questions over and over again. His team of information technology experts developed an auto response software. This software helped in reducing the number of times Joe had to be involved personally. Joe has made a __________ decision to implement __________ decision software. a) difficult/complex b) nonprogrammed/programmed c) programmed/nonprogrammed d) complex/difficult Ans: b Page: See page 88 Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make programmed and nonprogrammed decisions when solving problems.

20. The most significant factor that determines whether a decision is a programmed or nonprogrammed decision is:* a) the length of time available. b) the number of people involved in the outcome. c) whether the problem is new or unusual. d) the amount of money involved in the solution.

Ans: c Page: See page 88 Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make programmed and nonprogrammed decisions when solving problems.

21. What is the first step in the decision-making process? a) Generate alternatives b) Evaluate results c) Define the problem *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

d) Make the decision Ans: c Page: See page 93 Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: What are the five steps in the decision-making process?

22. Which of the following is not a common error in the first step of the decision-making process? a) Defining the problem too narrowly b) Dealing with symptoms, not causes c) Focusing on the wrong problem d) Spending too much time defining the problem Ans: d Page: See page 94 Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 1 is to identify and define the problem.

23. In a company, the major issue is a drop in its sales. Which of the following should be followed by the company? a) The company should have a broad focus. b) The company should focus on the right problem. c) The company should have a narrow focus. d) The company should look at the problem, not the symptom.

Ans: d Page: See page 94, the drop in sales could indicate a production or distribution problem that goes beyond sales Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 1 is to identify and define the problem.

24. What is the second step of the decision-making process? a) Deciding what to do b) Evaluating the problem c) Generating alternative courses of action d) Implementing the decision Ans: c Page: See page 93 *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: What are the five steps in the decision-making process?

25. Cost-benefit analysis is used in the “__________” step of the decision-making process.* a) evaluating results b) defining the problem c) implementing the decision d) generating alternative courses of action Ans: d Page: See page 95 Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 2 is to generate and evaluate alternative courses of action.

26. Comparing the costs and benefits of each potential course of action is called __________. a) evaluating results b) cost-benefit analysis c) strategic planning d) conducting ethics double check Ans: b Page: See page 95 Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 2 is to generate and evaluate alternative courses of action.

27. What is the third step in the decision-making process? a) Gathering more information b) Implementing the decision c) Completing cost-benefit analysis d) Deciding on a course of action Ans: d Page: See page 93 Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: What are five steps in the decision-making process? *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

28. The classical and behavioral models could be used in what step of the decisionmaking process? a) Evaluating results b) Implementing the decision c) Deciding on a course of action d) Doing a cost benefit analysis Ans: c Page: See page 95 Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

29. The __________ decision making model assumes rationality and complete information. a) classical b) logical c) behavioral d) optimizing Ans: a Page: See page 95 Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

30. A decision that attempts to select the absolute best alternative solution to a problem is called a(n) __________ decision. a) superior b) optimizing c) careful d) satisficing Ans: b Page: See page 95 Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

31. Limits to human information processing capabilities are called __________ limitations.* a) intuitive b) cognitive c) behavioral d) financial Ans: b Page: See page 95 Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

32. The __________ decision making model assumes incomplete information and bounded rationality. a) participative b) classical c) behavioral d) delegation Ans: c Page: See page 95 Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

33. A decision that chooses the first satisfactory alternative that is presented is called a(n) __________ decision. a) OK b) reasonable c) satisficing d) classical Ans: c Page: See page 96 Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

34. The classical decision model attempts to provide a(n) __________ decision. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

a) behavioral b) programmed c) optimizing d) satisficing Ans: c Page: See page 95 Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

35. The behavioral decision model attempts to provide a(n) __________ decision.* a) classical b) satisficing c) programmed d) optimizing Ans: b Page: See page 96 Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

36. What is the fourth step in the decision-making process?* a) Evaluating results b) Implementing the decision c) Conducting cost benefit analysis d) Generating alternatives Ans: b Page: See page 93 Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: What are five steps in the decision-making process?

37. A lack-of-participation error occurs when: a) employees do not understand what the management wants them to do. b) there is a shortage of employees to implement the decision. c) employees are not capable of implementing the decision. d) employees, who have to implement the decision, do not participate in the decision making process. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

Ans: d Page: See page 96 Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 4 is to implement the decision.

38. The final step in the decision-making process is to: a) ensure that your options list has all possible alternatives. b) search for the optimum decision. c) gain support for your decision. d) evaluate the results of your implemented decision.

Ans: d Page: See page 93 Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: What are five steps in the decision-making process?

39. One factor that should be considered in all steps of the decision-making process is __________.* a) escalating commitment b) alternative analysis c) ethical reasoning d) financial impact Ans: c Page: See page 98 Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Ethical reasoning is important at all steps in decision making.

40. “How would I feel if my family found out about this decision?” “How would I feel if this decision was published in the local newspaper or posted on the Internet?” These are examples of __________ ethical questions. a) casual b) spotlight c) contingent d) corporate Ans: b Page: See page 98 *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

Level: Difficult Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Ethical reasoning is important at all steps in decision making.

41. The generation of a novel idea or approach that solves a problem or identifies an opportunity is called __________ a) problem solving b) representative thinking c) creativity d) availability heuristic Ans: c Page: See page 100 Level: Easy Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Personal factors help drive creativity in decision making.

42. Which of the following is NOT one of the drivers of personal creativity? a) Task expertise b) Task motivation c) Subjective experience d) Creativity skills Ans: c Page: See page 100 Level: Difficult Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Personal factors help drive creativity in decision making.i

43. A group-based decision would be called for in all of the following cases, EXCEPT if:* a) the problem is complex, and you need a lot of information. b) the problem calls for a creative solution. c) the problem solution needs the support of a lot of people in order to work. d) the problem needs a quick solution.

Ans: d Page: See page 102; group-based problem-solving can be very time consuming Level: Medium Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Group decision making has both advantages and disadvantages.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

44. The __________heuristic occurs when people use a stereotype to assess the likely occurrence of an event.* a) escalating commitment b) representativeness c) anchoring and adjustment d) availability Ans: b Page: See page 103 Level: Medium Learning Objective 3: Understand current issues in managerial decision making.

Section References: Judgmental heuristics and other biases and traps may cause decision-making errors.

45. The __________ heuristic occurs when people adjust a previously existing value to make a decision.* a) escalating commitment b) representativeness c) anchoring and adjustment d) availability Ans: c Page: See page 104 Level: Medium Learning Objective 3: Understand current issues in managerial decision making.

Section References: Judgmental heuristics and other biases and traps may cause decision-making errors.

46. Solving a problem based on your perception of the situation, positive or negative is known as a(n) __________. a) availability heuristic b) programmed decision c) framing error d) representative heuristic Ans: c Page: See page 104 Level: Easy Learning Objective 3: Understand current issues in managerial decision making.

Section References: Judgmental heuristics and other biases and traps may cause decision-making errors.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

47. Continuing on a course of action even though it is not working is called a(n) __________.* a) escalating commitment b) framing error c) anchoring heuristic d) availability heuristic Ans: a Page: See page 104 Level: Easy Learning Objective 3: Understand current issues in managerial decision making.

Section References: Judgmental heuristics and other biases and traps may cause decision-making errors.

48. Attending only to information that confirms a decision already made is called a(n) __________.* a) escalating commitment b) framing error c) anchoring heuristic d) confirmation error Ans: d Page: See page 104 Level: Easy Learning Objective 3: Understand current issues in managerial decision making.

Section References: Judgmental heuristics and other biases and traps may cause decision-making errors.

True/False

49. Not all decisions are going to be easy ones; some will have to be made under tough conditions; and, not all decisions will turn out right.

Ans: True Page: See page 86 Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers deal with problems posing threats and offering opportunities. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

50. Managers who are problem solvers will make decisions and try to solve problems when required.

Ans: True Page: See page 88 Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers can be problem avoiders, problem solvers, or problem seekers.

51. Intuitive thinking is less valuable and practical than systematic thinking.

Ans: False Page: See page 89 Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers can use systematic and intuitive thinking.

52. When an individual moves in management ranks, the level of certainty in a problem environment tends to increase.

Ans: False Page: See page 90 Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make decisions under conditions of certainty, risk, and uncertainty.

53. Nonprogrammed decisions are used to create novel solutions for unique situations.

Ans: True Page: See page 88 Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make programmed and nonprogrammed decisions when solving problems.

54. Sensation feelers prefer broad global issues. They are insightful and tend to avoid details, and uncomfortable with intangibles. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

Ans: False Page: See page 90 Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers use different cognitive styles to process information for decision making.

55. Step one in the decision-making process is where the problem or opportunity is identified and defined.

Ans: True Page: See page 93 Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: What are five steps in the decision-making process?

56. In the second step of the decision-making process, the various options are compared.

Ans: False Page: See page 93 Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: What are five steps in the decision-making process?

57. The problem with the classical decision model is that it does not take into account the cognitive limitations that we, as humans, have.

Ans: True Page: See page 95 Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

58. When generating alternative courses of action, extensive information gathering should identify alternative courses of action as well as their anticipated consequences.

Ans: True Page: See page 94 Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 2 is to generate and evaluate alternative courses of action. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

59. Once the decision is made, the role of the manager in the decision-making process is over.

Ans: False Page: See page 96 Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 4 is to implement the decision.

60. According to the book The Shallows, author Nicolas Carr argues that the Internet may have lightened our thinking by replacing deep thought and reflection with shallowminded pursuits.

Ans: True Page: See page 96 Level: Difficult Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

61. The evaluation process should not only consider whether the results were gained, but should also determine whether any undesirable side-effects occurred.

Ans: True Page: See page 97 Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 5 is to evaluate results.

62. Managers turn to heuristics to make decisions with limited information, time, and energy.

Ans: True Page: See page 103 Level: Easy Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Judgmental heuristics and other biases and traps may cause decisionmaking errors.

63. An availability heuristic solves the current situation based upon its similarity to a stereotyped set of occurrences. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

Ans: False Page: See page 103 Level: Medium Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Judgmental heuristics and other biases and traps may cause decisionmaking errors.

64. How we “frame” an issue, meaning cast it in a positive or negative light, impacts not only how we discuss the issue, but how we solve it.

Ans: True Page: See page 104 Level: Easy Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Judgmental heuristics and other biases and traps may cause decisionmaking errors.

65. A common management problem when implementing decisions is escalating commitment.

Ans: True Page: See page 104 Level: Medium Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Judgmental heuristics and other biases and traps may cause decisionmaking errors.

66. The problem in a “crisis” situation is not just that it is often unexpected, but that it must be handled quickly in order to avoid a disaster.

Ans: True Page: See page 104 Level: Easy Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Managers must be prepared for crisis decision making.

Fill-in-the-Blank *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

67. __________ add value to organizations through their intellectual capabilities.

Ans: Knowledge workers Page: See page 87 Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers deal with problems posing threats and offering opportunities.

68. An operational deficiency involving something going wrong or about to go wrong is known as a(n) __________.

Ans: performance threat/problem Page: See page 87 Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers deal with problems posing threats and offering opportunities.

69. __________ are decision makers who ignore information and trouble signals.

Ans: Problem avoiders Page: See page 88 Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers can be problem avoiders, problem solvers, or problem seekers.

70. __________ involves problem-solving in a rational, step-by-step, analytical process.

Ans: Systematic thinking Page: See page 89 Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers can use systematic and intuitive thinking.

71. A(n) __________ is a choice among possible alternative courses of action. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

Ans: decision Page: See page 88 Level: Easy Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make programmed and nonprogrammed decisions when solving problems.

72. Evaluating alternatives, in which positive and negative outcomes are examined, is done with the help of a tool called __________.

Ans: cost-benefit analysis Page: See page 95 Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 2 is to generate and evaluate alternative courses of action.

73. If you are seeking the best possible solution, you are seeking to __________ your decision.

Ans: optimize Page: See page 95 Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

74. __________ involves selecting the first option that appears to work in solving the problem.

Ans: Satisficing Page: See page 96 Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

75. The __________decision model describes decision-making with limited information and bounded rationality.

Ans: behavioral Page: See page 95 Level: Easy Learning Objective 2: Identify five steps in the decision-making process. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

76. The __________ heuristic assesses the likelihood of an occurrence using a stereotyped set of similar events.

Ans: representativeness Page: See page 103 Level: Medium Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Judgmental heuristics and other biases and traps may cause decisionmaking errors.

77. A(n) __________ is solving a problem in the context in which it is perceived; either positive or negative.

Ans: framing error Page: See page 104 Level: Medium Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Judgmental heuristics and other biases and traps may cause decisionmaking errors.

Essay

78. What makes decision-making so challenging in the “real world” of management?

Ans: Information is incomplete, risk assessment is uncertain, problems can be inappropriately defined, and our thinking processes are limited and plagued with biases.

Page: See pages 88, 90-91, 103 Level: Medium Learning Objective 1: Recognize how managers use information to solve problems.

Learning Objective 2: Identify five steps in the decision-making process.

Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Managers make programmed and nonprogrammed decisions when solving problems.

Section Reference: Managers make decisions under conditions of certainty, risk, and uncertainty. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

Section Reference: Judgmental heuristics and other biases and traps may cause decisionmaking errors.

79. Why do people escalate commitment to failing actions?

Ans: The difference is not always clear between “just a little more persistence” bringing success (note all the cultural myths about heroes that stuck with it and triumphed) and when an effort will never work; peer pressure to keep something going; and ego and the desire to avoid being associated with a mistake can all play a role in escalation Page: See page 104 Level: Difficult Learning Objective 3: Understand current issues in managerial decision making.

Section Reference: Judgmental heuristics and other biases and traps may cause decisionmaking errors.

80. List and define the three decision making environments and their relationship to programmed and nonprogrammed decisions.

Ans. The three decision making environments are certainty, risk, and uncertainty.

A certain environment is one in which there is complete information regarding alternatives and their consequences. Programmable decisions are readily applied to this environment.

A risk environment is one in which there is a lack of information regarding alternatives and their consequences, but it is possible to assign probabilities of occurrence to the consequences. Some programmable decisions are possible in this environment depending on the quality and value of the probabilities.

An uncertain environment is the same as a risk environment, except that it is very difficult or impossible to assign probabilities of occurrence to the consequences.

Programmable decisions are not likely or even possible in this environment. Almost all decisions will be nonprogrammable.

Page: See pages 88-91 Level: Difficult Learning Objective 1: Recognize how managers use information to solve problems.

Section Reference: Managers make decisions under conditions of certainty, risk, and uncertainty.

81. In simple short terms, state the five steps in the decision making process.

Ans: The five steps in the decision making process are 1.Find and define the problem, 2. Generate and evaluate alternative solutions, 3. Make the decision and conduct an ethics check, 4. Implement the decision, and 5.Evaluate the results.

Page: See page 93 *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

Level: Easy Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: What are five steps in the decision-making process?

82. Define the two types of decision models and relate them to the decision making environments (certainty, risk and uncertainty) and to the two types of decisions (optimizing and satisficing).

Ans: The two types of decision models are classical and behavioral.

The classical model is a rational quantitative approach to decision making. It is best applied to a certain environment in which full information is available. The objective is to arrive at the very best (optimizing) solution.

The behavioral model is based on bounded rationality or recognition that rationality and logic have their limits. It is applicable to both the risk and uncertainty environments where complete information is not available.

Page: See page 95 Level: Medium Learning Objective 2: Identify five steps in the decision-making process.

Section Reference: Step 3 is to decide on a preferred course of action.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.]

File: mod05, Chapter 5: Plans and Planning Techniques

Multiple Choice

1. Which of the following is NOT one of the four functions of management? a) Planning b) Controlling c) Organizing d) All of the above are functions of management.

Ans: d Page: See page 112 Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is one of the four functions of management.

2. The process of setting goals and objectives and determining how to accomplish them is called __________. a) organizing b) planning c) leading d) controlling Ans: b Page: See page 112 Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is one of the four functions of management.

3. The management function of planning involves:* a) allocating and arranging resources. b) guiding the efforts of human resources. c) setting goals and objectives. d) monitoring task accomplishments.

Ans: c Page: See page 112 Level: Easy *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is one of the four functions of management.

4. Specific results that one wishes to achieve are called _________. a) measurements b) plans c) objectives d) end points Ans: c Page: See page 113 Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

5. Allocating and arranging resources in order to accomplish a task is called __________. a) controlling b) planning c) leading d) organizing Ans: d Page: See page 112 Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is one of the four functions of management.

6. Guiding and motivating others to achieve high levels of performance is called __________. a) planning b) organizing c) leading d) controlling Ans: c Page: See page 112 Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is one of the four functions of management. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

7. The process of monitoring task accomplishments and taking corrective action is called __________. a) controlling b) planning c) leading d) organizing Ans: a Page: See page 112 Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is one of the four functions of management.

8. When setting goals, step one of the planning process should include:* a) getting the mundane, trivial things planned first. b) focusing on easy goals to build momentum. c) keeping your eye on the past in order to know what you have accomplished. d) defining your objectives, so that you know where you want to go.

Ans: d Page: See page 113 Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

9. Which of the following is the fourth step in the planning process? a) Implementing the plan b) Making the plan c) Defining objectives d) Developing premises regarding future conditions Ans: b Page: See page 113 Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

10. Stretch goals are __________. a) impossible to meet b) good exercises c) only for the very best employees d) difficult and challenging, but achievable Ans: d Page: See page 127 Level: Easy Learning Objective 3: Describe useful planning tools and techniques.

Section Reference: Goal setting helps align plans and activities throughout an organization.

11. A(n) __________ is a statement of intended means for accomplishing objectives. a) plan b) schedule c) objective d) idea Ans: a Page: See page 113 Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

12. A process by which one establishes lower-level objectives in order to meet higher-level objectives is called _____________.* a) objective analysis b) strategic analysis c) a hierarchy of objectives d) a chain of command Ans: c Page: See page 115 Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning improves coordination and control.

13. Objectives should be measurable and __________. a) specific *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

b) share a loftier goal c) a well-kept secret d) easily accomplishable Ans: a Page: See page113 Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

14. Planning offers all of the following advantages EXCEPT: a) a guarantee of success. b) Helping us to sharpen our focus. c) Increasing our flexibility. d) avoiding complacency.

Ans: a Page: See page 114 Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning improves focus and action orientation.

15. The last of the four management functions, control, actually begins with: a) a good organization. b) a well-developed plan to measure against. c) inspired leadership to develop commitment. d) inspired direction.

Ans: b Page: See page 115 Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning improves coordination and control.

16. Plans that cover a year or less are called __________ plans. a) medium b) strategic c) short-range d) long-term *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: c Page: See page 118 Level: Easy Learning Objective 2: Identify the types of plans used by managers.

Section Reference: Managers use short-range and long-range plans.

17. Plans that usually cover three years or more are called __________. a) medium b) operational c) short-range d) long-range Ans: d Page: See page 118 Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use short-range and long-range plans.

18. A statement that clarifies the purpose of the organization and expresses what it hopes to be in the future is called a(n) __________.* a) operational plan b) vision statement c) strategic plan d) tactical plan Ans: b Page: See page 118 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

19. Plans that identify the long-term direction for the organization, including a vision of what and where the organization wants to be in the longer-term, are called __________ plans. a) extended b) operational c) strategic d) lofty Ans: c Page: See page 118 *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

20. Most people are comfortable with a time horizon of:* a) one week. b) three months. c) one year. d) five years.

Ans: b Page: See page 118 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use short-range and long-range plans.

21. Plans that define the various short term activities needed to implement strategic plans are called __________ plans. a) strategic b) business c) operational d) long-term Ans: c Page: See page 119 Level: Medium Learning Objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

22. A plan covering production activities for the three months would be an example of a(n) __________ plan. a) long-term b) operational c) strategic d) recovery Ans: b Page: See page 119 Level: Easy *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

23. Tactical plans are appropriate to all of the following EXCEPT: a) production. b) marketing. c) human resources. d) top strategic management.

Ans: d Page: See page 119 Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

24. Plans that specifically identify how different parts of the organization will contribute to accomplishing strategic plans are called __________ plans. a) strategic b) tactical c) financial d) functional Ans: d Page: See page 119 Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

25. A plan that communicates broad guidelines for employees to use in their decisions and actions is called a __________. a) policy b) project plan c) procedure d) budget Ans: a Page: See page 119 Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Organizational policies and procedures are plans. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

26. __________ plans deal with the methods and technology needed by people in their work. a) Financial b) Facilities c) Production d) Marketing Ans: c Page: See page 119 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

27. A __________ or rule precisely describes actions to take in specific situations.* a) policy b) project plan c) long-term plan d) procedure Ans: d Page: See page 120 Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Organizational policies and procedures are plans.

28. All students are expected to follow the guidelines regarding sexual harassment. This is an example of a: a) policy. b) rule. c) procedure. d) all of the above.

Ans: a Page: See page 119 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Organizational policies and procedures are plans.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

29. A company poster lists instructions as to what to do in case of a fire alarm. This is an example of a(n) __________. a) policy b) directive c) operating plan d) procedure Ans: d Page: See page 120 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Organizational policies and procedures are plans.

30. A plan that commits resources to projects or activities is called a(n) __________. a) strategy b) business c) ad-hoc d) budget Ans: d Page: See page 121 Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

31 A(n) __________ budget allocates resources if each budget was brand new a) strategic b) new c) operating d) zero-based Ans: d Page: See page 121 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

32. A ________ type of budget allows resource allocations to vary with the level of activity. a) project b) flexible *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

c) fixed d) zero-based Ans: b Page: See page 121 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

33. Sally has just been told that, funds not used from last year’s budget will not carry over into the next year. Sally has been asked to do a __________. a) project budget b) flexible budget c) fixed budget d) zero-based budget Ans: d Page: See page 121 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

34. A budget that allocates a specific amount of resources for a specific purpose is called a __________ budget. a) project b) flexible c) fixed d) zero-based Ans: c Page: See page 121 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

35. A budget that compares sales or revenues to expenses is called a(n) __________ budget. a) operating b) flexible c) fixed d) zero-based *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: a Page: See page 121 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

36. Joe has just been told that he has one million dollars to spend next year. Joe has been asked to do a(n) __________ budget.* a) operating b) flexible c) fixed d) zero-based Ans: c Page: See page 121 Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

37. Sally, the general manager at Trinkets Inc. has asked accounting to prepare a cash flow versus expenditure plan for the next year. Sally is asking for a __________ budget. a) financial b) flexible c) fixed d) zero-based Ans: a Page: See page 121 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

38. The planning process of “predicting what will happen in the future” is called: a) contingency planning. b) scenario planning. c) forecasting. d) zero-based budgeting.

Ans: c *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Page: See page 123 Level: Easy Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Forecasting tries to predict the future.

39. Qualitative approaches to forecasting include: a) statistical analysis of historical data. b) mathematical models. c) expert opinion. d) all of the above.

Ans: c Page: See page 123 Level: Medium Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Forecasting tries to predict the future.

40. The process of developing alternative plans, in anticipation of having problems with implementing the existing plan is called __________.* a) contingency planning b) forecasting c) scenario planning d) budgeting Ans: a Page: See page 124 Level: Medium Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Contingency planning creates backup plans for when things go wrong.

41. The president of Virtual Products LLC is concerned about next year’s economic outlook.

Even though next year’s plan has been completed, he has requested his staff to generate another plan that assumes a 10% reduction in sales. This is an example of __________. a) contingency planning b) forecasting c) operation planning d) budgeting Ans: a Page: See page 124 *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Level: Medium Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Contingency planning creates backup plans for when things go wrong.

42. Identifying possible future situations and plans for dealing with them is called __________.* a) contingency planning b) forecasting c) scenario planning d) budgeting Ans: c Page: See page 124 Level: Medium Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Scenario planning crafts plans for alternative future conditions.

43. Which of the following techniques makes use of external comparisons to evaluate current performance?* a) Forecasting b) Benchmarking c) Allocating d) Justifying Ans: b Page: See page 125 Level: Easy Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Benchmarking identifies best practices used by others.

44. A common phrase used to define the things that world class companies do better than others is __________.* a) best practices b) international comparisons c) operating procedures d) forecasting Ans: a Page: See page 126 Level: Medium Learning objective 3: Describe useful planning tools and techniques. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Section Reference: Benchmarking identifies best practices used by others.

45. Involving others, particularly those who implement the plan in the planning process is called __________. a) groupthink b) marketing research c) participatory planning d) selecting alternatives Ans: c Page: See page 126 Level: Easy Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Participatory planning improves implementation capacities.

True/False

46. Leading consists of guiding the efforts of human resources to ensure high levels of task accomplishment.

Ans: True Page: See page 112 Level: Easy Learning Objective 2: Identify the types of plans used by managers.

Section Reference: Planning is one of the four functions of management.

47. One of the critical pieces of the planning effort is defining the objectives.

Ans: True Page: See page 113 Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

48. The management process is complete once the plan implementation is done. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: False Page: See page 113 Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

49. Managerial planning is usually done free of distractions in quiet areas, where the manager can think.

Ans: False Page: See page 113 Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

50. In the book Analytics at Work, authors Thomas Davenport, Jeanne Harris, and Robert Morison argue that organizations can improve their strategies by making better use of available information to guide decisions.

Ans: True Page: See page 114 Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

51. Each level of the organization should create their plans independently, in order to be responsive to the varying needs at each level.

Ans: False Page: See page 115 Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning improves coordination and control.

52. If you have time management problems, setting aside time to plan may actually help you to have more control over your time. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: True Page: See pages 115-116; planning allows prioritization and scheduling Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning improves time management.

53. Research shows that it is a waste of time to occasionally relax.

Ans: False Page: See page 116 Level: Easy Learning Objective 1: Understand how and why managers use the planning process.

Section Reference: Planning improves time management.

54. One of the most consistently top rated “must-have” skills for new graduates entering fastpaced and complicated careers in business and management is time management.

Ans: True Page: See page 116 Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning improves time management.

55. Short-range plans focus only on two to three months into the future.

Ans: False Page: See page 118 Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use short-range and long-range plans.

56. The purpose of strategic plans is to support tactical plans.

Ans: False Page: See page 119 Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

57. Strategic plans define what specific work units need to do in order for the organization to move ahead.

Ans: False Page: See page 119 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

58. A policy describes exactly what actions should be taken in specific situations.

Ans: False Page: See page 120 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Organizational policies and procedures are plans.

59. Plans done by the various departments, such as marketing and manufacturing, are called functional plans.

Ans: True Page: See page 119 Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

60. One of the former CEOs of Boeing was asked to resign by his board of directors. His violation of the company’s policy on office relationships came to light, after his relationship with a female executive become public.

Ans: True Page: See page 121 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

61. If a forecast is carefully created, it can be relied upon to accurately predict the future.

Ans: False Page: See page 123 Level: Medium Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Forecasting tries to predict the future.

62. Contingency planning identifies alternate courses of action to be implemented in order to meet changing circumstances.

Ans: True Page: See page 124 Level: Easy Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Contingency planning creates backup plans for when things go wrong.

63. Planning is best done by independent staff organizations.

Ans: False Page: See page 126 Level: Medium Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Participatory planning improves implementation capacities.

64. One effective way to build commitment to the implementation of a plan is to involve the people who will have to do the implementing in the creation of the plan.

Ans: True Page: See page 126 Level: Easy Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Participatory planning improves implementation capacities.

Fill-in-the-Blank

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

65. __________ is the process of setting goals/objectives and determining how to accomplish them.

Ans: Planning Page: See page 112 Level: Easy Learning Objective 2: Identify the types of plans used by managers.

Section Reference: Planning is one of the four functions of management.

66. __________ are specific results that one wishes to achieve.

Ans: Objectives Page: See page 113 Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

67. The __________ is being lulled into inaction by current successes or failures.

Ans: complacency trap Page: See page 114 Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning improves focus and action orientation.

68. In order to get the best performance out of your organization, you should use __________ goals to encourage extra effort.

Ans: stretch Page: See page 127 Level: Easy Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Goal setting helps align plans and activities throughout an organization.

69. Effective planning ensures that each level’s goals support the goals of the next higher level, fitting into a(n) _____ of objectives. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: hierarchy Page: See page 115 Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning improves coordination and control.

70. A(n) __________ clarifies the purpose of the organization and expresses what it hopes to be in the future.

Ans: vision Page: See page 118 Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

71. __________ plans should support strategic plans.

Ans: Tactical or operational Page: See page 119 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

72. A(n) __________ communicates broad guidelines for making decisions and taking action.

Ans: policy Page: See page 119 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Organizational policies and procedures are plans.

73. __________ plans deal with the requirements of selling and distributing goods or services.

Ans: Marketing Page: See page 119 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

74. A plan that commits resources to projects or activities is called a(n) __________.

Ans: budget Page: See page 121 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

75. A(n) __________ budget involves approaching each budget cycle as if it were new, starting from scratch each time.

Ans: zero-based Page: See page 121 Level: Medium Learning objective 2: Identify the types of plans used by managers.

Section Reference: Budgets are plans that commit resources to activities.

76. __________ is the planning process involved in predicting the future.

Ans: Forecasting Page: See page 123 Level: Easy Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Forecasting tries to predict the future.

77. __________ are the activation signals for implementing contingency plans.

Ans: Trigger points Page: See page 124 Level: Medium Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Contingency planning creates backup plans for when things go wrong.

78. A planning technique that utilizes external comparisons to evaluate internal processes is called __________. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: benchmarking Page: See page 125 Level: Medium Learning objective 3: Describe useful planning tools and techniques.

Section Reference: Benchmarking identifies best practices used by others.

Essay

79. How does planning fit into the four basic functions of management?

Ans: Planning is the first function and provides the foundation for the other three. Organizing can’t be done until you know where you are headed and what you need to get there. Leading can’t be done until you understand the objective and why it is important to motivate others to achieve. And, controlling can’t be done until you know what your targets were in the first place.

Page: See page 112 Level: Easy Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is one of the four functions of management.

80. Define the difference between a policy and a procedure.

Ans: A policy is a standing plan that communicates broad guidelines for decisions and actions. A procedure is a specific set of steps to take in specific situations.

Page: See pages 119-120 Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Organizational policies and procedures are plans.

81. What are the four functions of management? Describe each of them.

Ans: The four functions of management are planning, organizing, leading and controlling.

Planning involves establishing stretch objectives, setting a time frame for achieving them and describing how they will be achieved.

Organizing requires allocating and arranging resources necessary to meet the objectives.

Leading includes guiding and motivating others to implement the plan.

Controlling is the process of reviewing and evaluating results and taking necessary corrective action.

Page: See page 112 *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Level: Medium Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is one of the four functions of management.

82. State and discuss at least three reasons for planning and the benefits of each.

Ans: Some of the reasons for planning include: 1. Providing a direction and a goal for the company.

This is done by establishing objectives. Objectives define in a specific manner what is to be accomplished, when it should be accomplished and how to accomplish it. Without objectives there is little or no common path to pursue.

2. Communicating with employees.

It is important that those involved in implementing the plan understand what is to be accomplished and why it is important to the company. This can be done by involving those key individuals that will implement the plan in the planning process and presenting the plan to all who will participate no matter what role they will play or what their position in the company.

3. Reviewing and controlling progress versus planning.

Objectives are used to establish milestones against which results can be evaluated and corrective actions taken. This is critical to recognizing problems before they cause serious damage.

4. Improving time management.

Planning allows managers to set priorities and to manage their time according to those priorities.

Other possible answers: 5. Planning improves focus and action orientation. Planning can help sharpen focus and increase flexibility, both of which improve performance. An organization with focus knows what it does best and what it needs to do.

6. Planning improves coordination and control. It’s hard to exercise control without planning objectives. Without control, plans may fail because of a lack of follow-through.

With both, it’s a lot easier to see when things aren’t going well and make the necessary adjustments.

Page: See pages 113-116 Level: Difficult Learning objective 1: Understand how and why managers use the planning process.

Section Reference: Planning is the process of setting objectives and identifying how to achieve them.

Section Reference: Planning improves focus and attention.

Section Reference: Planning improves coordination and control.

Section Reference: Planning improves time management.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

83. Define a strategic plan, an operational plan and the differences between them.

Ans: Strategic plans set broad, comprehensive and longer term directions for the company.

Strategic plans address the question of how will the company’s objectives be accomplished in the sense of what approach will be used. Operational plans are shorter term and contain specific activities and the schedules for completing them.

Page: See pages 118-119 Level: Easy Learning objective 2: Identify the types of plans used by managers.

Section Reference: Managers use strategic and operational plans.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

File: mod06, Chapter 6: Controls and Control Systems

Multiple Choice

1. __________ is the process of measuring performance and taking action to ensure desired results. a) Planning b) Organizing c) Leading d) Controlling Ans: d Page: See page 134 Level: Easy Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Controlling is one of the four functions of management.

2. A process that identifies lessons learned through a completed project, task force assignment, or special operation is called a(n) __________.* a) performance assignment b) planning session c) planning function d) after-action review Ans: d Page: See page 135 Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Controlling is one of the four functions of management.

3. The “foundation” of any control system is measuring performance and: a) punishing the guilty b) taking corrective action c) training d) all of the above Ans: b Page: See page 135 *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

4. The first step in the control process is ________.* a) forecasting b) establishing objectives and standards c) measuring actual performance d) taking necessary action Ans: b Page: See page 135 Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

5. The most important step in the control process is __________.* a) forecasting b) establishing objectives and standards c) measuring actual performance d) taking necessary action Ans: b Page: See page 135 Level: Difficult Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

6. A(n) __________ is a measure of performance results in terms of quantity, quality, cost, or time. a) forecast b) output standard c) input standard d) data base Ans: b Page: See page 136 Level: Easy Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

7. Output standards in business would include: a) the average educational level of employees. b) the quality of the raw materials used to make the product. c) quality ratings of the final product. d) reliability ratings on production equipment.

Ans: c Page: See page 136 Level: Difficult Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

8. A(n) __________ measures work efforts that go into a product. a) input standard b) output standard c) transparent control d) leadership control Ans: a Page: See page 136 Level: Easy Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

9. In order for the second step in the control process to be effective:* a) you must be able to conduct accurate measurements. b) you must be timely in the measuring process. c) you must be willing to measure d) all of the above should be followed.

Ans: d Page: See pages 136-137 Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control measures actual performance.

10. The quality control manager at Athens, Inc. requires zero defects on all parts received from its suppliers. This is an example of a(n) __________.* *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

a) output standard b) feedback control c) input standard d) historical standard Ans: c Page: See page 136 Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

11. Management by __________ focuses on substantial differences between actual and desired performance.* a) design b) principal c) direction d) exception Ans: d Page: See page 138 Level: Easy Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control takes corrective action as needed.

12. UPS carefully measures the routes and routines of its drivers to establish the times expected for each delivery. When a delivery manifest is scanned as completed, the driver’s time is registered in an electronic performance log that is closely monitored by supervisors. UPS is using __________ comparisons. a) historical b) engineering c) logistical d) relative Ans: b Page: See page 138 Level: Difficult Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control compares results with objectives and standards.

13. __________ control ensures clear direction and needed resources before the work begins. a) Feedback b) Feedforward *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

c) Concurrent d) Relative Ans: b Page: See page 140 Level: Easy Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

14. Control that focuses on what is happening during work in process is called __________ control. a) feedforward b) feedback c) feedless d) concurrent Ans: d Page: See page 140 Level: Easy Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

15. __________ control ensures that the final results meet desired standards.* a) Feedforward b) Feedback c) Concurrent d) Feedmore Ans: b Page: See page 141 Level: Easy Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

16. Which of the following is controlled by feedforward controls? a) Work throughputs b) Work inputs c) Work outputs d) All of the above *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: b Page: See page 140 Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

17. Which of the following is controlled by concurrent controls? a) Work throughputs b) Work inputs c) Work outputs d) All of the above Ans: a Page: See page 140 Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

18. Which of the following is controlled by feedback controls? a) Work throughputs b) Work inputs c) Work outputs d) All of the above Ans: c Page: See page 140 Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

19. A manager stops by before a shift to see if everything is ready to go. This is an example of a(n) __________ control. a) steering b) feedback c) feedforward d) concurrent Ans: c Page: See page 140 Level: Medium *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

20. __________ control occurs through self-discipline and self-control. a) Steering b) Feedback c) Internal d) Concurrent Ans: c Page: See page 142 Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use both internal and external controls.

21. __________ control occurs through direct supervision or administrative systems.* a) Internal b) External c) Bureaucratic d) Reward Ans: b Page: See page 142 Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use both internal and external controls.

22. __________ control influences behavior through authority, policies, procedures, job descriptions, budgets, and day to day supervision.* a) Internal b) External c) Bureaucratic d) Market Ans: c Page: See page 142 Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use both internal and external controls. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

23. __________ control influences behavior through norms and expectations set by the organization’s culture. a) Market b) External c) Bureaucratic d) Clan Ans: d Page: See page 143 Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use both internal and external controls.

24. __________ control is the influence of competition on the behavior of organizations and their members. a) Internal b) Clan c) Bureaucratic d) Market Ans: d Page: See page 143 Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use both internal and external controls.

25. __________ is/are a process of joint objective setting and reviews between a superior and a subordinate.* a) Management by directives b) Management by objectives c) Performance appraisals d) Salary reviews Ans: b Page: See page 143 Level: Easy Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objectives is a way to integrate planning and controlling.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

26. The two most common types of objectives in the management by objectives process are work related improvement and __________ objectives.* a) strategic b) financial c) personal development d) specific action Ans: c Page: See page 144 Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objectives is a way to integrate planning and controlling.

27. Management by objectives requires all of the following EXCEPT: a) a structured process. b) regular communication. c) objectives set by management. d) standards for measurement.

Ans: c Page: See page 143 Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objectives is a way to integrate planning and controlling.

28. The goals set in an MBO process should be: a) specific and measurable. b) flexible with regard to deadlines. c) easy to accomplish; to build confidence. d) vague in accountability; to reduce fear. e) all of the above.

Ans: a Page: See page 144 Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objectives is a way to integrate planning and controlling.

29. The process of focusing on quality in every part of the organization with a philosophy of continuous improvement, and doing things right the first time is called __________. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

a) quality circles b) total quality management c) supply chain management d) international quality control Ans: b Page: See page 146 Level: Easy Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Quality control is a foundation of modern management.

30. __________ is/are used to graphically display trends, so that exceptions to quality standards can be identified.* a) Instruction manuals b) Equations c) Control charts d) Just-in-time data Ans: c Page: See page 146 Level: Medium Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Quality control is a foundation of modern management.

31. The process of always searching for new ways to improve work quality and performance is called __________. a) just-in-time b) supply chain management c) continuous improvement d) quality circles Ans: c Page: See page 146 Level: Medium Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Quality control is a foundation of modern management.

32. One time activities with many component tasks that must be completed in proper order and according to budget are called __________ plans. a) business *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

b) strategic c) project d) long-range Ans: c Page: See page 147 Level: Medium Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Gantt charts and CPM/PERT are used in project management and control.

33. __________ management makes sure that specific activities required to complete a project are planned well and accomplished on time. a) Business b) Financial c) Strategic d) Project Ans: d Page: See page 147 Level: Medium Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Gantt charts and CPM/PERT are used in project management and control.

34. A(n)__________ chart graphically displays the scheduling of tasks required to complete a project. a) business b) Gantt c) Paredo d) project Ans: b Page: See page 147 Level: Medium Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Gantt charts and CPM/PERT are used in project management and control.

35. A(n)__________ chart is a combination of the critical path method and the program evaluation and review technique. a) CPM/PERT b) Gantt *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

c) Paredo d) project Ans: a Page: See page 147 Level: Medium Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Gantt charts and CPM/PERT are used in project management and control.

36. The pathway from project start to conclusion that involves activities with the longest completion time is called the __________. a) critical path b) economic order quantity c) purchasing control level d) financial minimum level Ans: a Page: See page 148 Level: Medium Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Gantt charts and CPM/PERT are used in project management and control.

37. __________ is the process of ensuring that inventory is only big enough to meet immediate needs. a) Financial planning b) Management control c) Inventory control d) Direct control Ans: c Page: See page 148 Level: Easy Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Inventory controls help save costs.

38. The __________ method places new orders when inventory levels fall to predetermined points. a) master level b) economic order quantity c) purchasing control level d) financial minimum level *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: b Page: See page 148 Level: Medium Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Inventory controls help save costs.

39. The process that has production materials arriving from suppliers as they are required is called __________ scheduling.* a) on time b) almost on time c) strategic d) just-in-time Ans: d Page: See page 148 Level: Medium Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Inventory controls help save costs.

40. The point at which total revenues equal total costs and profits begin is called the __________. a) profit margin b) breakeven point c) maximum cost point d) marginal revenue point Ans: b Reference: See page 149 Level: Easy Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Breakeven analysis shows where revenues will equal costs.

41. The calculation of the point where sales revenues equal total costs is called __________ analysis. a) breakeven b) profit c) loss d) marginal *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: a Page: See page 149 Level: Easy Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Breakeven analysis shows where revenues will equal costs.

42. The two types of cost used to determine total costs are __________ and __________. a) minimum; maximum b) direct; indirect c) fixed; variable d) hard; soft Ans: c Page: See page 149 Level: Easy Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Breakeven analysis shows where revenues will equal costs.

43. The ability to generate cash to pay bills is known as __________. a) liquidity b) leverage c) asset management d) profitability Ans: a Page: See page 149 Level: Medium Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Financial ratios measure key areas of financial performance.

44. Which of the following financial ratios is the correct formula for the current ratio? a) Current assets-inventory/current liabilities b) Current assets/current liabilities c) Sales/average inventory d) Net income/owner’s equity Ans: b Page: See page 150 Level: Difficult Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Financial ratios measure key areas of financial performance. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

True/False

45. Unfortunately, control plays a negative role in the management process.

Ans: False Page: See page 134 Level: Easy Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Controlling is one of the four functions of management.

46. The major objective in an “after-action” report is to affix blame.

Ans: False Page: See page 135 Level: Easy Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Controlling is one of the four functions of management.

47. The “control” process is really just about power.

Ans: False Page: See page 135 Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

48. The roots of the control process are in the planning function.

Ans: True Page: See page 135 Level: Easy Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

49. Informal standards like “we did our best” or “everyone seemed to like it” are very effective as a basis for control adjustments.

Ans: False Page: See page 135 Level: Difficult Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

50. In the comparison phase of the control process, we are focused on indications that action is needed to correct performance deficiencies.

Ans: True Page: See pages 136-137 Level: Easy Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control measures actual performance.

51. Conformance with rules and procedures, efficiency in the use of resources, and work attendance are examples of input standards.

Ans: True Page: See page 136 Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

52. Our focus in “management by exception” is to give our attention to the situations with the greatest need for action.

Ans: True Page: See page 138 Level: Easy Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control takes corrective action as needed.

53. Historical comparisons benchmark our performance against that being achieved by other people, work units, or organizations. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ams: False Page: See page 138 Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control compares results with objectives and standards.

54. The advantage to concurrent controls is the opportunity to intervene immediately when problems are detected.

Ans: True Page: See page 140 Level: Easy Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

55. MBO is a system that only works to improve organizational improvement objectives.

Ans: False Page: See page 143 Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objectives is a way to integrate planning and controlling.

56. MBO has been around for so long because it is one of the few management techniques with no observable downsides.

Ans: False Page: See page 144 Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objectives is a way to integrate planning and controlling.

57. MBO requires the managers to give employees a list of objectives.

Ans: False Page: See page 143 Level: Easy *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objectives is a way to integrate planning and controlling.

58. When writing a good performance objective, you should identify a date by which the key result will be accomplished.

Ans: True Page: See page 144 Level: Easy Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objectives is a way to integrate planning and controlling.

59. Six Sigma is not a common quality standard in our global marketplace because it is often too difficult to achieve.

Ans: False Page: See page 147 Level: Easy Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Quality control is a foundation of modern management.

60. The reality of “continuous improvement” is that you are never done.

Ans: True Page: See page 146 Level: Easy Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Quality control is a foundation of modern management.

61. Six Sigma is a quality standard.

Ans: True Page: See page 147 Level: Easy Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Quality control is a foundation of modern management.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

62. The function of EOQ is to hold down both order costs and inventory costs.

Ans: True Page: See page 148 Level: Medium Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Inventory controls help save costs.

Fill-in-the-Blank

63. __________ is the ability to call upon inner strength and keep moving forward even when things are tough.

Ans: Resiliency Page: See page 133 Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Management Live.

64. __________ is the process of measuring performance and taking action to ensure desired results.

Ans: Controlling Page: See page 134 Level: Easy Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Controlling is one of the four functions of management.

65. Control equation: Need for action = __________ – __________.

Ans: Desired performance, Actual performance (in this order) Page: See page 137 Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control compares results with objectives and standards.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

66. __________ comparisons use past experience as a basis for evaluating current performance.

Ans: Historical Page: See page 138 Level: Medium Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control compares results with objectives and standards.

67. If you follow-up with clients to see what they thought of the service level that you provided, you are using a(n) __________ type of control.

Ans: feedback or post-action Page: See page 141 Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

68. __________ control influences behavior through norms and expectations set by the corporate culture.

Ans: Clan Page: See page 143 Level: Easy Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use both internal and external controls.

69. __________ control is essentially the influence of market competition on the behavior of organizations and their members.

Ans: Market Page: See page 143 Level: Easy Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use both internal and external controls.

70. __________ objectives document intentions to accomplish personal growth, such as expanded job knowledge or skills. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: Personal development Page: See page 144 Level: Easy Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objective is a way to integrate planning and controlling.

71. The common phrase for operations, built upon continuous improvement, that seek to make quality an everyday performance objective is __________.

Ans: total quality management Page: See page 146 Level: Medium Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Quality control is a foundation of modern management.

72. __________ management makes sure that activities required to complete a project are planned well and accomplished on time.

Ans: Project Page: See page 147 Level: Medium Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Gantt charts and CPM/PERT are used in project management and control.

73. To improve workflow and reduce costs, __________ scheduling seeks to arrange for materials to arrive right as they are needed.

Ans: just-in-time Page: See page 148 Level: Medium Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Inventory controls help save costs.

74. The place where losses end and profits begin is known as the __________ point.

Ans: breakeven Page: See page 149 Level: Easy *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Breakeven analysis shows where revenues will equal costs.

75. __________ is the ability to earn revenues greater than costs.

Ans: Profitability Page: See page 149 Level: Medium Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Financial ratios measure key areas of financial performance.

Essay

76. Describe the basic steps in the control process.

Ans: 1st – Determine the objectives and establish the performance standards, 2nd – Measure the actual performance results, 3rd – Evaluate the results by comparing them to the standards established in step 1, and 4th – Take the indicated action to ensure results Page: See page 135 Level: Easy Learning Objective 1: Understand how and why managers use the control process.

Section Reference: Control begins with objectives and standards.

77. Describe the process for setting up an MBO system.

Ans: Begin with agreed upon goals, standards and procedures for evaluating progress, and a timeline for completion. Proceed with regular communication, periodic meetings to evaluate progress, and joint efforts to ensure support for the goals. End with a joint evaluation of the results and feedback for future efforts.

Page: See page 143 Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managing by objectives is a way to integrate planning and controlling.

78. Define the three types of time related controls and their relationship to work inputs, work throughputs, and work outputs. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: The three types of controls are feedforward, concurrent, and feedback.

Feedforward controls are potential problem solving controls in that they attempt to prevent problems from occurring by ensuring that clear directions and adequate resources are in place.

Feedforward controls are used in relation to work inputs.

Concurrent controls are real time controls in that they are looking for problems as they are happening. Concurrent controls are used in relation to work throughputs.

Feedback controls are used after the problem has occurred and the damage has been done.

Feedback controls are used in relation to work outputs.

Page: See page 140 Level: Medium Learning Objective 2: Identify types of controls used by managers.

Section Reference: Managers use feedforward, concurrent, and feedback controls.

79. Define and discuss the components of TQM (total quality management).

Ans: TQM consists of a number of processes targeted at providing the highest possible level of quality throughout the organization. Some of the components of TQM are continuous improvement, six sigma, and just-in-time scheduling.

Continuous improvement is a mind set that everything can be improved all the time.

Six Sigma is a quality standard of 3.4 defects or less per million products or service deliveries.

Just-in-time is a means of scheduling supplier deliveries, so that they will arrive as they are needed. This process saves time and money by having the suppliers carry the inventory.

Page: See pages 146-149 Level: Medium Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Quality Control is a foundation of modern management.

Section Reference: Gantt charts and CPM/PERT are used in project management and control.

Section Reference: Inventory controls help save costs.

80. Discuss breakeven analysis. What is its intent? How is it calculated?

Ans: Breakeven analysis is a means of calculating the number of units of a product that need to be sold in order to recover total costs. Total costs equal fixed costs plus variable costs. The breakeven point is the point where total revenue from the sales of a product equal the total cost of producing the product. The formula for the breakeven point is Breakeven = Fixed costs – (Price – Variable costs).

Page: See page 149 Level: Medium Leaning Objective 3: Describe useful control tools and techniques.

Section Reference: Breakeven analysis shows where revenues will equal costs. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

File: mod07, Chapter 7: Strategy and Strategic Management

Multiple Choice

1. A comprehensive action plan that identifies long-term direction for an organization is called a(n) __________. a) competitive advantage b) strategy c) objective d) idea Ans: b Page: See page 158 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

2. __________ is a phrase or statement that focuses organizational energies on achieving a specific goal. a) Mission b) Vision c) Strategic intent d) Logo Ans: c Page: See page 158 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

3. Coca-Cola promises to put a Coke within an arm’s reach of every consumer in the world. This could be considered a statement of __________.* a) strategic intent b) strategy c) competitive advantage d) global positioning *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: a Page: See page 158 Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

4. Operating in successful ways that are difficult to imitate is called a __________. a) strategy b) strategic intent c) business plan d) competitive advantage Ans: d Page: See page 159 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

5. The levels of strategy used in organizations are corporate, business, and __________.* a) personal b) competitive c) functional d) legal Ans: c Page: See page 160 Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

6. In a large company, a strategy that sets the long-term direction for the entire company is called a __________ strategy. a) corporate b) senior level c) functional d) board *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: a Page: See page 159 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

7. An example of a strategic question at the corporate level is:* a) What should our next product be? b) How will we price our newest product? c) Should we set up more sales offices? d) In what industries and markets should we compete?

Ans: d Page: See page 159 Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

8. A strategy that identifies how a division or business unit will compete in its product or service domain is called a __________ strategy. a) corporate b) middle management c) business d) bottom level Ans: c Page: See page 159 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

9. A(n) __________ strategy is one that guides activities within a specific area such as engineering and marketing. a) business b) functional c) corporate d) employee Ans: b Page: See page 160 *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

10. An example of a question asked at the business strategy level is: a) How are we going to compete for customers in a competitive market? b) What is our role in supporting engineering? c) How many divisions should we have? d) In what industries and markets should the corporation compete in?

Ans: a Page: See page 159 Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

11. An example of a strategic question asked at the functional level is: a) How does the engineering department support the business strategy? b) What kind of product or service mix should we have? c) How are we going to compete within this competitive industry? d) In what industries and markets should the corporation compete in?

Ans: a Page: See page 160 Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

12. A strategy for expanding an organization’s business is called a __________ strategy. a) big b) multiple c) retrenchment d) growth Ans: d Page: See page 160 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

13. Which of the following is NOT a growth strategy? a) Concentration b) Diversification c) Vertical integration d) Restructuring Ans: d Page: See page 161 Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

14. When a company expands in its existing markets, it is called growth through __________. a) retrenchment b) diversification c) concentration d) globalization Ans: c Page: See page 160 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

15. When a company expands by entering new business areas, it is called growth through __________. a) diversification b) vertical integration c) retrenchment d) globalization Ans: a Page: See page 160 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

16. When a company expands by acquiring suppliers or distributors, it is called growth through ________.* a) diversification b) vertical integration c) retrenchment d) globalization Ans: b Page: See page 160 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

17. The riskiest growth strategy is through __________. a) vertical integration b) unrelated diversification c) related diversification d) backward integration Ans: b Page: See page 160 Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

18. Both Coca-Cola and PepsiCo have pursued __________ by purchasing some of their major bottlers. a) forward vertical integration b) backward vertical integration c) forward horizontal integration d) backward horizontal integration Ans: a Page: See page 160 Level: Hard Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

19. A strategy whose objective is to correct major problems in the business through radical changes to current operations is called a _________ strategy. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

a) going out of business b) growth c) status quo d) retrenchment Ans: d Page: See page 161 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

20. Which of the following is NOT a retrenchment strategy?* a) Diversification b) Liquidation c) Restructuring d) Divestiture Ans: a Page: See page 161 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

21. When a company closes and sells its assets in order to pay its debts, it is called __________. a) divestiture b) liquidation c) diversification d) restructuring Ans: b Page: See page 161 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

22. When a company reduces the size of its existing operations, it is called __________. a) divestiture b) liquidation c) downsizing *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

d) diversification Ans: c Page: See page 161 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

23. The retrenchment strategy that calls for selling off part of the organization is called __________. a) liquidation b) downsizing c) diversification d) divestiture Ans: d Page: See page 161 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

24. A __________ protects an insolvent firm from creditors during a period of reorganization to restore profitability. a) divestiture b) downsizing c) backward integration d) chapter 11 bankruptcy Ans: d Page: See page 161 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

25. A __________ strategy views the world as one market and adopts standard products and advertising for use worldwide. a) multidomestic b) globalization c) diversification d) transnational *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: b Page: See page 162 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Global strategies focus on international business initiatives.

26. A __________ strategy customizes products and advertising to the culture of the local markets into which they are sold. a) multidomestic b) globalization c) diversification d) transnational Ans: a Page: See page 162 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Global strategies focus on international business initiatives.

27. A __________ strategy tries to operate without a strong national identity and seeks a balance between the efficiency of worldwide operations and responsiveness to local cultures.* a) multidomestic b) globalization c) diversification d) transnational Ans: d Page: See page 162 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Global strategies focus on international business initiatives.

28. Two companies join together in partnership to pursue an area of mutual interest. This is called a(n) __________. a) acquisition b) downsizing c) strategic alliance d) divestiture *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: c Page: See page 163 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Cooperative strategies focus on alliances and partnerships.

29. A company legally works with its rivals on projects of mutual benefit. This is called __________. a) competition b) collusion c) co-opetition d) restructuring Ans: c Page: See page 163 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Cooperative strategies focus on alliances and partnerships.

30. Companies that use the internet to market their products and gain competitive advantage are employing a(n) __________ strategy.* a) communication b) computer c) e-business d) electronic Ans: c Page: See page 163 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

31. The web-based business model of __________ involves providing free listings from online merchants for directing potential customers to them. a) advertising b) brokerage c) referral d) subscription *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: c Page: See page 163 Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

32. The electronic version of the basic retail strategy of selling directly to customers is __________. a) e-business b) B2C c) B2G d) B2B Ans: b Page: See page 164 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

33. A __________ strategy uses information technology and the internet to link organizations vertically in supply chains.* a) B2C b) B2S c) B2G d) B2B Ans: d Page: See page 164 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

34. The process of formulating and implementing strategies to accomplish long term goals and to maintain a competitive advantage is called __________.* a) strategic controlling b) strategic management c) globalization d) vertical integration Ans: b *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Page: See page 166 Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: The strategic management process formulates and implements strategies.

35. Strategic management consists of strategy __________ and __________. a) action; implementation b) implementation; direction c) formulation; implementation d) formulation; review Ans: c Page: See pages 166-167 Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: The strategic management process formulates and implements strategies.

36. The __________ statement defines the purpose of the organization and its reason for existence in society. a) operating objectives b) corporate strategy c) mission d) strategy

Ans: c Page: See page 167 Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Strategy formulation begins with the organization’s mission and objectives.

37. Specific results that companies try to achieve such as net sales and profits are common results called __________. a) operations b) mission statements c) strategic plans d) operating objectives *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: d Page: See page 167 Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Strategy formulation begins with the organization’s mission and objectives.

38. Which of the following is NOT a part of a SWOT analysis?* a) Strengths b) Standards c) Weaknesses d) Opportunities Ans: b Page: See page 167 Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: SWOT analysis identifies strengths, weaknesses, opportunities, and threats.

39. The SWOT element that focuses on outdated facilities and obsolete technologies is called __________. a) threats b) opportunities c) weaknesses d) strengths Ans: c Page: See page 167 Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: SWOT analysis identifies strengths, weaknesses, opportunities, and threats.

40. A special strength, which a company has, that gives it a competitive advantage is called a(n) __________. a) unfair advantage b) differential strategy c) core competency *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

d) differential advantage Ans: c Page: See page 168 Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: SWOT analysis identifies strengths, weaknesses, opportunities, and threats.

41. Porter suggests that industry attractiveness is a function of five forces, including:* a) profitability, market share, workforce quality, innovativeness, and social responsibility. b) cost efficiency, product quality, service quality, workforce quality, and innovativeness. c) differentiation, cost leadership, focused differentiation, focused cost, and integration. d) competitors, new entrants, suppliers, customers, and substitutes. e) None of the above are Porter’s list of forces.

Ans: d Page: See page 168 Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Porter’s five forces model examines industry attractiveness.

42. A strategy that focuses on offering products that are unique with respect to competitors’ products is called a(n) _________ strategy.* a) integrated b) cost leadership c) differentiation d) diversification Ans: c Page: See page 169 Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Porter’s competitive strategies model examines business or product strategies.

43. A strategic position within an industry relying upon low cost for a market segment would be called a: a) focused price leadership strategy. b) focused differentiation strategy. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

c) focused cost leadership strategy. d) differentiation strategy.

Ans: c Page: See page 170 Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Porter’s competitive strategies model examines business or product strategies.

44. The recommendation of the BCG matrix on question marks is retrenchment or __________.* a) investing freely b) investing for stability c) targeting only the most promising question marks for growth d) divesting Ans: c Page: See page 171-172 Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Portfolio planning examines strategies across multiple businesses or products.

45. What is the best strategy for products that the Boston Consulting Group would identify as dogs?* a) High growth b) Retrenchment c) Low growth d) No growth Ans: b Page: See page 172 Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Portfolio planning examines strategies across multiple businesses or products.

46. A strategic leader has to:* a) avoid communication in order to minimize distractions. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

b) dictate direction. c) strive for ambiguity in order to avoid divisions in the group. d) create a sense of urgency.

Ans: d Page: See page 173 Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Strategic leadership ensures strategy implementation and control.

True/False

47. Business strategies should support business goals.

Ans: True Page: See pages 159-160 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

48. The key to having a sustainable competitive advantage is to operate in a way that is difficult to imitate.

Ans: True Page: See page 159 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

49. With the release of its iPad, Apple was the first to market an innovative product by linking design, technology, and customer appeal. As such, the iPad offers Apple a sustainable competitive advantage.

Ans: True Page: See page 159 Level: Medium Learning Objective 1: Identify the types of strategies used by organizations. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

50. A functional strategy provides long-term direction for the total enterprise.

Ans: False Page: See page 159 Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

51. The advantage of growth through concentration is that you are growing in an area that you know and, presumably, have expertise.

Ans: True Page: See page 160 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

52. A retrenchment strategy could be a “going out of business” strategy.

Ans: True Page: See page 161 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

53. Critical thinking is a “must have” for success in strategic management.

Ans: True Page: See page 161 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

54. Just about any kind of partnership between two companies could be called a strategic alliance.

Ans: True Page: See page 163 Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Cooperative strategies focus on alliances and partnerships.

55. Co-opetition is the strategy of working with rivals on projects of mutual benefit.

Ans: True Page: See page 163 Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Cooperative strategies focus on alliances and partnerships.

56. The web-based business model of infomediary brings buyers and sellers together for online business transactions and taking a percentage from the sales.

Ans: False Page: See page 163 Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

57. The process of strategic management focuses only on developing strategies.

Ans: False Page: See page 166 Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: The strategic management process formulates and implements strategies.

58. A mission statement includes specific goals that the organization wants to achieve.

Ans: False *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Page: See page 167 Level: Hard Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Strategy formulation begins with the organization’s mission and objectives.

59. A SWOT analysis includes a detailed examination of an organization’s strengths and weaknesses.

Ans: True Page: See page 167 Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: SWOT analysis identifies strengths, weaknesses, opportunities, and threats.

60. A special strength that gives an organization a competitive advantage is called a core competency.

Ans: True Page: See page 168 Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: SWOT analysis identifies strengths, weaknesses, opportunities, and threats.

61. Porter’s Model of Industry Attractiveness includes four forces.

Ans: False Page: See page 168 Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Porter’s five forces model examines industry attractiveness.

62. Operating objectives such as profits, cost efficiency, market share, product quality, a talented workforce, innovation, and social responsibility are often under scrutiny when, executives meet to discuss how well an organization is doing. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: True Page: See page 167 Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Strategy formulation begins with the organization’s mission and objectives.

63. If your strategy is to compete on price against your competitors, your strategy is one of focused differentiation.

Ans: False Page: See page 169 Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Porter’s competitive strategies model examines business or product strategies.

64. The makers of Coke and Pepsi follow a focused cost leadership strategy.

Ans: False Page: See page 170 Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Porter’s competitive strategies model examines business or product strategies.

65. In the BCG matrix, stars are the business units that have high market shares in highgrowth markets.

Ans: True Page: See page 171 Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Portfolio planning examines strategies across multiple businesses or products.

66. Strategic leadership inspires people to implement organizational strategies. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: True Page: See page 172 Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Strategic leadership ensures strategy implementation and control.

Fill-in-the-Blank

67. __________ refers to the ability to perceive situations, gather and interpret relevant information, and make decisions.

Ans: Critical thinking Page: See page 157 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Management Live.

68. A(n) __________ is a comprehensive action plan that identifies long-term direction for an organization and guides resource utilization to accomplish its goals.

Ans: strategy Page: See page 158 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

69. __________ strategies guide the activities of specific areas in implementing the organizational-level strategies.

Ans: Functional Page: See page 160 Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

70. Expansion into areas of new business is called __________. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Ans: diversification Page: See page 160 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

71. __________ entails cutting the size of your organization and reducing the workforce.

Ans: Downsizing Page: See page 161 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

72. __________ involves selling off parts of the organization to refocus attention on core business areas.

Ans: Divestiture Page: See page 161 Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

73. The international business strategy that adopts standard products and advertising to use worldwide is called a(n) __________ strategy.

Ans: globalization Page: See page 162 Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Global strategies focus on international business initiatives.

74. __________ is strategic use of the Internet to engage customers and potential customers in providing opinions and suggestions on products and their designs.

Ans: Crowdsourcing Page: See page 164 *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Level: Easy Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

75. Strategic __________ is the process of putting strategies into action.

Ans: implementation Page: See page 167 Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: The strategic management process formulates and implements strategies.

76. The shorter-term guides to action under the mission statement are called __________.

Ans: operating objectives Page: See page 167 Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Strategy formulation begins with the organization’s mission and objectives.

77. __________ are special strengths of an organization and give the organization a competitive advantage.

Ans: Core competencies Page: See page 168 Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: SWOT analysis identifies strengths, weaknesses, opportunities, and threats.

78. A(n) __________ strategy seeks the lowest costs of operations within a special market segment.

Ans: focused cost leadership Page: See page 170 Level: Easy Learning Objective 2: Understand how managers formulate and implement strategies. *Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

Section Reference: Porter’s competitive strategies model examines business or product strategies.

79. __________ is the capability to inspire people to successfully engage in a process of continuous change, performance enhancement, and implementation of the firm’s goals.

Ans: Strategic leadership Page: See page 172 Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Strategic leadership ensures strategy implementation and control.

Essay

80. Define the difference between a competitive advantage and a sustainable competitive advantage.

Ans: A competitive advantage is something that you do better than your rivals. However, a sustainable competitive advantage has the additional strength of being a competitive advantage that is also difficult to imitate.

Page: See page 159 Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

81. What is the difference between a globalization strategy and a transnational strategy?

Ans: A globalization strategy attempts to develop standard products and a strong national identity for use worldwide, whereas a transnational strategy tries to operate without a strong national identity.

Page: See page 162 Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Global strategies focus on international business initiatives.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

82. What are the three levels of strategy in large companies? Define each of them as to their relationship to organizational structure, their purpose and their strategic questions.

Ans: The three levels of strategy are corporate, business and functional.

Corporate is the highest level. The corporate strategy sets the direction for the corporation as a whole. At this level, the strategic question is “In what industries and markets should the corporation compete?”

The Business strategy is for those divisions and business units that report to corporate management. Each division or unit will have its own strategy, but these strategies must be in support of the corporate strategy. The strategic question at this level is, “How are we going to compete for customers in our industries and markets?”

The Functional strategy is for those departments such as production, engineering, and marketing that report to division management. Each department may have its own strategy, but all of the functional strategies must support each other as well as the business strategy. The strategic question at the functional level is “How can we best utilize resources within the function to support implementation of the business strategy?”

Page: See pages 159-160 Level: Medium Learning Objective 1: Identify the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

83. Name Porter’s Five Forces and describe their relation to the organization’s internal and external environments.

Ans: The Five Forces are Industry Competition, Suppliers, Customers, New Entrants, and Substitute Products.

Industry Competition is the rivalry that exists among competing firms. Typically, there are a few competitors that dominate the market in terms of their size and relative market share.

Suppliers are the firms from which a company purchases its equipment and raw materials. Large suppliers may have broader product lines or lower prices, but smaller suppliers may offer more personal service.

Customers are the reason for a firm’s existence. Large customers offer greater sales but, because of their buying power, they often demand lower prices.

New Entrants are potential competitors who might enter the market. Too large or too many competitors can destroy the profitability of a market.

Substitute Products are always a threat. They are often a result of new technologies and can literally destroy a company that does not keep up with the newer technology.

Page: See page 168 Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Porter’s five forces model examines industry attractiveness.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

84. Discuss the classifications in the Boston Consulting Group’s matrix as they relate to industry growth, market share, and business strategy.

Ans: The BCG matrix consists of Cash Cows, Stars, Question Marks, and Dogs.

Cash Cows are high market share low industry growth businesses. They are typically profitable and cash generators. The cash cow strategy is little or no growth.

Stars are high market share high industry growth businesses. They are typically profitable, but not cash generators due to the high cost of maintaining their growth. The stars strategy is to at the market rate or higher.

Question Marks are low market share high industry growth businesses. They are probably not profitable and cash users. The question mark strategy is either high growth or retrenchment.

Dogs are low market share low industry growth businesses. They most likely are not profitable and cash users. The dog strategy is retrenchment.

Page: See pages 171-172 Level: Medium Learning Objective 2: Understand how managers formulate and implement strategies.

Section Reference: Portfolio planning examines strategies across multiple businesses or products.

*Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website.

File: mod08, Chapter 8: Organization Structure and Design

Multiple Choice

1. __________ is the process of arranging people and resources to work toward a common goal.* a) Controlling b) Leading c) Planning d) Organizing Ans: d Reference: See page 180 Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizing is one of the management functions.

2. A system of tasks, reporting relationships, and communication linkages is called a(n) __________. a) business plan b) organization structure c) administrative function d) informal structure Ans: b Reference: See page 181 Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization Charts describe the formal structures in organizations.

3. A(n) __________ graphically describes the arrangement of work positions and reporting relationships. a) informal structure b) PERT chart c) organization chart d) business strategy Ans: c Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Reference: See page 181 Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization Charts describe the formal structures in organizations.

4. Dividing the work to be done into a number of jobs that can be done by different people with different skills is called __________. a) work multiplexing b) division of labor c) occupational planning d) strategic planning Ans: b Reference: See page 181 Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization Charts describe the formal structures in organizations.

5. Organizational charts provide:* a) a clear division of work. b) lines of supervisory relationships. c) recognition of the spans of control. d) all of the above.

Ans: d Reference: See page 181 Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization Charts describe the formal structures in organizations.

6. An organization chart describes the company’s __________ structure. a) informal b) irrelative c) formal d) industry Ans: c Reference: See page 181 Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Organization Charts describe the formal structures in organizations.

7. Of the following, which may you learn from an organization chart? a) Division of work b) Span of control c) Major subunits d) All of the above Ans: d Reference: See page 181 Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization Charts describe the formal structures in organizations.

8. The set of unofficial relationships among an organization’s members is called a(n) __________ structure. a) informal b) planned c) formal d) industry Ans: a Reference: See page 182 Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizations also operate with informal structures.

9. Informally defined organizations made up of unofficial employee working relationships are often referred to as __________ organizations.* a) strategic b) vertical c) shadow d) formal Ans: c Reference: See page 182 Level: Medium Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizations also operate with informal structures.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

10. A problem with informal groups is that they: a) assist in getting the work done. b) help people learn their jobs. c) breed resistance to change. d) facilitate problem solving. e) provide social and emotional support.

Ans: c Reference: See page 183 Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Informal structures have good points and bad points.

11. The process of grouping together people and jobs into work units is called __________. a) informal structure b) relationship management c) socialization d) departmentalization Ans: d Reference: See page 185 Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

12. A __________ structure groups together people with similar skills who perform similar tasks. a) cross-functional b) functional c) horizontal d) matrix Ans: b Reference: See page 185 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

13. The departments of Marketing, Engineering, and Manufacturing are examples of __________organizations.* a) matrix b) cross functional c) informal d) functional Ans: d Reference: See page 185 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

14. Good Bank Inc. has many branches. They are all managed by branch managers who have loans, investments, operations, and trust managers reporting directly to them. This is an example of a __________ structure.* a) dysfunctional b) matrix c) network d) product Ans: d Reference: See page 187 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Divisional structures group together people by products, customers, or locations.

15. The lack of communication across functional departments in functional structures is called the __________ problem. a) matrix structure b) theoretical communications c) functional chimneys d) cross-functional team Ans: c Reference: See page 186 Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

16. The lack of communications between functional departments in a functional structure often results in which of the following? a) A lack of coordination between the functional units. b) A lack of expertise in solving technical problems. c) No clear career path is available for employees. d) A lack of training within the departments.

Ans: a Reference: See page 186 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

17. A(n) __________ structure groups together people working on the same product, in the same geographical area, or with similar customers. a) matrix b) geographical c) divisional d) informal Ans: c Reference: See page 187 Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Divisional structures group together people by products, customers, or locations.

18. When John, president of Global Products, decided to form a new division for marketing into China, he was implementing a __________structure.* a) product b) geographical c) team d) service Ans: b Reference: See page 188 Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Divisional structures group together people by products, customers, or locations.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

19. Which of the following is NOT a form of divisional structure?* a) Product b) Customer c) Supplier d) Process Ans: c Reference: See page 187 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Divisional structures group together people by products, customers, or locations.

20. The process type of divisional structure focuses on: a) the good or service produced. b) the location or activity. c) the customer or client serviced. d) the activities part of the same process.

Ans: d Reference: See page 187 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Divisional structures group together people by products, customers, or locations.

21. An organizational structure that combines a functional structure with a divisional structure to emphasize project or program needs is called a(n) __________ structure. a) informal b) operational c) vertical d) matrix Ans: d Reference: See page 188 Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

22. Matrix structures offer all of the following advantages EXCEPT: a) that they are less costly than traditional structures. b) a clear accountability for projects. c) improved communication across functions. d) problem-solving at the team-level.

Ans: a Reference: See page 188 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

23. A cross-functional team member in a matrix structure reports to __________ manager(s). a) 0 b) 1 c) 2 d) 3 Ans: c Reference: See page 189 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

24. The major difference between a matrix structure and a team structure is that a team structure:* a) has no functional management. b) has no project management. c) is always temporary. d) has project management.

Ans: b Reference: See pages 188-189 Level: Hard Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

Section Reference: Team structures use many permanent and temporary teams.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

25. The teams that make up the matrix structure are called __________ teams. a) matrix b) cross-functional c) sales d) vertical Ans: b Reference: See page 188 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

26. In a matrix structure, who should do the cross-functional team member’s performance appraisal? a) The function manager b) The project manager c) Both the functional and project manager d) The general manager Ans: c Reference: See page 189 Level: Hard Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

27. A company that uses information technology to link with outside suppliers and service contractors is said to be using a __________ structure. a) cross-functional b) matrix c) network d) horizontal Ans: c Reference: See page 190 Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Network structures extensively use strategic alliances and outsourcing.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

28. A(n) __________ is a partnership in which organizations join together to pursue areas of mutual interest.* a) management club b) acquisition c) corporate takeover d) strategic alliance Ans: d Reference: See page 190 Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Network structures extensively use strategic alliances and outsourcing.

29. Network structures are valued because they can offer:* a) an easy switch to this structure from any other type. b) simplicity of operating the structures. c) control over each piece of the system. d) lower costs and flexibility.

Ans: d Reference: See page 191 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Network structures extensively use strategic alliances and outsourcing.

30. A __________ organization uses information technology to operate as a shifting form of alliances. a) functional b) matrix c) virtual d) divisional Ans: c Reference: See page 191 Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Network structures extensively use strategic alliances and outsourcing.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

31. __________ is (are) essential to the performance of a virtual structure. a) Functional management b) Cross-functional teams c) Information technology d) Large projects Ans: c Reference: See page 191 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Network structures extensively use strategic alliances and outsourcing.

32. __________ is the process of configuring organizations to meet environmental challenges. a) Centralization b) Decentralization c) Organizational design d) Strategic planning Ans: c Reference: See page 194 Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming flatter, with fewer levels of management.

33. The number of persons directly reporting to a manager is called __________. a) tall structure b) span of control c) flat structure d) organizational design Ans: b Reference: See page 194 Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming flatter, with fewer levels of management.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

34. A __________ organization would have a __________ span of control.* a) tall / wide b) flat / narrow c) flat / wide d) narrow / wide Ans: c Reference: See page 194 Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming flatter, with fewer levels of management.

35. In a __________ organization, top management maintains the power to make most important decisions. a) centralized b) flat c) decentralized d) wide Ans: a Reference: See page 195 Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are increasing decentralization.

36. The process of entrusting work to others is called __________. a) centralization b) delegation c) span of control d) favoritism Ans: b Reference: See page 196 Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are increasing delegation and empowerment.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

37. A classical management principle regarding delegation is that authority should __________ responsibility.* a) equal b) exceed c) diminish d) be none of the above Ans: a Reference: See page 197 Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are increasing delegation and empowerment.

38. When a manager gives his direct reports the freedom to do their jobs as they see fit is called __________. a) span of control b) centralization c) empowerment d) organizational design Ans: c Reference: See page 197 Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are increasing delegation and empowerment.

39. In creating an empowering climate, a manager should avoid: a) allowing employees to make decisions themselves. b) taking suggestions and ideas from subordinates. c) giving workers a chance to take the initiative in solving problems. d) closely supervising and regulating the work process.

Ans: d Reference: See page 197 Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are increasing delegation and empowerment.

40. A(n) __________ emphasizes formal authority, rules, order, fairness, and efficiency. a) organic organization Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

b) horizontal structure c) decentralized organization d) bureaucratic organization Ans: d Reference: See page 198 Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming more horizontal and adaptive.

41. __________ organizations are bureaucratic with a vertical structure. a) Organic b) Mechanistic c) Matrix d) Empowered Ans: b Reference: See page 198 Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming more horizontal and adaptive.

42. Mechanistic organizations are most likely to have __________ management. a) decentralized b) empowered c) centralized d) project Ans: c Reference: See page 198 Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming more horizontal and adaptive.

43. __________ organizations are adaptive with a horizontal structure. a) Classical b) Mechanistic c) Bureaucracies d) Organic Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: d Reference: See page 198 Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming more horizontal and adaptive.

44. A bureaucratic organization is similar to a(n) _________ organization. a) horizontal b) organic c) adaptive d) mechanistic Ans: d Reference: See page 198 Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming more horizontal and adaptive.

45. Empowered cross functional teams are most likely to be found in a(n) __________ organization. a) functional b) vertical c) organic d) bureaucratic Ans: c Reference: See page 199 Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming more horizontal and adaptive.

46. __________ allow(s) a worker to complete a full-time job in less than five days. a) Flexible working hours b) A compressed workweek c) Job sharing d) Telecommuting Ans: b Reference: See page 199 Level: Medium Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are using more alternative work schedules.

47. __________ splits one job between two people.* a) Job design b) Job enrichment c) Job sharing d) Teamwork Ans: c Reference: See page 200 Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are using more alternative work schedules.

True/False

48. Fortunately, it is easier to create high-performing organizations than it is to talk about them.* Ans: False Reference: See page 180 Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizing is one of the management functions.

49. When both the Chairman of the Board and CEO are the same person, corporate governance may be compromised or weakened.* Ans: True Reference: See page 181 Level: Hard Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization charts describe the formal structures of organizations.

50. Controlling arranges people and resources to work toward a goal.

Ans: False Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Reference: See page 180 Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizing is one of the management functions.

51. The organization chart describes the arrangement of work positions with a company.

Ans: True Reference: See page 181 Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization charts describe the formal structures of organizations.

52. The informal structure consists of unofficial groups that form a shadow organization.

Ans: True Reference: See page 182 Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizations also operate with informal structures.

53. The Society for Human Resource Management reported that after the economy suffered a round of massive layoffs, human resource professionals observed in their firms a decrease in workplace eavesdropping as well as a decrease in gossip and rumors about downsizing.

Ans: False Reference: See page 183 Level: Medium Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Informal structures have good points and bad points.

54. One of the problems with a functional structure is communication between functional groups.

Ans: True Reference: See page 186 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

55. The essence of the functional chimney problem is that the subunits operate as if they are independent from, or in competition with all of the other subunits in the organization.

Ans: True Reference: See page 186 Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

56. Mars Inc., the world’s largest candy company, suffers from the functional chimneys problem.

Ans: True Reference: See page 186 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

57. The four types of divisional structures are product, geographical, customer, and process.

Ans: True Reference: See page 187 Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Divisional structures group together people by products, customers or locations.

58. A matrix organization combines a functional structure and a division structure.

Ans: True Reference: See page 188 Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

59. A cross-functional team structure has no project manager.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: False Reference: See page 188 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

60. The key features of a network structure are a minimal core staff, with as much of the support activity contracted out as possible.

Ans: True Reference: See page 190 Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Network structures extensively use strategic alliances and outsourcing.

61. In most organizations, teamwork is something that can be accomplished quickly.

Ans: False Reference: See page 190 Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Team structures use many permanent and temporary teams.

62. The span of control indicates the number of employees directly reporting to a superior.

Ans: True Reference: See page 194 Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming flatter, with fewer levels of management.

63. A basic principal of management is that, “When delegating, authority should equal responsibility.”

Ans: True Reference: See page 197 Level: Medium Learning Objective 3: Recognize current trends in organizational design.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Organizations are increasing delegation and empowerment.

64. Mechanistic structures are most like organic designs.

Ans: False Reference: See page 198 Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming more horizontal and adaptive.

65. A learning organization is most likely the outcome of an organic design.

Ans: True Reference: See page 198 Level: Hard Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are becoming more horizontal and adaptive.

66. Flexible time means that you can work whenever you want.

Ans: False Reference: See page 200 Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are using more alternative work schedules.

67. Telecommuting is likely to become more popular in the future.

Ans: True Reference: See page 200 Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are using more alternative work schedules.

Fill-in-the-Blank

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

68. __________ is the process of arranging people and resources to work together to accomplish goals.

Ans: Organizing Reference: See page 180 Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizing is one of the management functions.

69. A(n) __________ is a diagram of positions and reporting relationships within an organization.

Ans: organization chart Reference: See page 181 Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization charts describe the formal structure of organizations.

70. __________ identifies the informal structure and their embedded social relationships that are active in an organization.

Ans: Social network analysis Reference: See page 182 Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizations also operate with informal structures.

71. Separating people to perform different tasks that aggregate into a unified whole is known as __________.

Ans: division of labor Reference: See page 181 Level: Medium Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organization charts describe the formal structure of organizations.

72. The “shadow” organization that operates independently of the formal organization is known as a(n) __________ organization.

Ans: informal Reference: See page 182 Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizations also operate with informal structures.

73. A significant problem with functional organizations is the lack of communication between the various functional areas. This problem is known as the functional __________ problem.* Ans: chimneys Reference: See page 186 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

74. The structural approach that attempts to generate the advantages of both the functional and divisional forms is the __________ structure.

Ans: matrix Reference: See page 188 Level: Easy Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

75. __________ teams combine members from different departments to work on a common task.

Ans: Cross-functional Reference: See page 188 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

76. __________ groups together jobs and activities that serve the same customers or clients.

Ans: Customer structures Reference: See page 188 Level: Easy Learning Objective 2: Identify common types of organizational structures.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Divisional structures group together people by products, customers, or locations.

77. Network structures rely upon __________ to facilitate cooperation with other firms in the pursuit of business activities of mutual interest.

Ans: strategic alliances Reference: See page 190 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Network structures extensively use strategic alliances and outsourcing.

78. Network strategies implemented through the use of information technologies create __________.

Ans: virtual organizations Reference: See page 191 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Network structures extensively use strategic alliances and outsourcing.

79. A(n) __________ allows a worker to complete a full-time job in less than five days.

Ans: compressed workweek Reference: See page 199 Level: Easy Learning Objective 3: Recognize current trends in organizational design.

Section Reference: Organizations are using more alternative work schedules.

Essay

80. Why is the organizational structure so important?

Ans: Most of us like to be organized. We tend to get uncomfortable and anxious when things are disorganized. People in organizations need answers to questions such as: “Where do I fit in?,” “How does my work relate to that of others?,” “Who runs things?,” Since, structure determines how the work is divided, who does what, and how tasks and Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

people are related, it is the essential vehicle used in the implementation of organizational strategy and plans.

Reference: See page 180 Level: Easy Learning Objective 1: Understand organizing as a managerial responsibility.

Section Reference: Organizing is one of the management functions.

81. Why are network structures, given their efficiencies, not more prevalent?

Ans: Managing a network of outside contractors can be a very difficult communication task. Furthermore, there is less control over the contractors than in a traditional structure.

This lack of control can be critical in crisis situations.

Reference: See pages 190-191 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Network structures extensively use strategic alliances and outsourcing.

82. Describe a functional structure and some of its important advantages and disadvantages.

Ans: A functional structure is one that groups employees by their skills and the nature of their work or the functions that they perform. Some examples of functional departments are marketing, finance and engineering.

The advantages of a functional structure are economies of scale, high level of skill in each functional area, on the job training, and a clear career path in each functional area.

The primary disadvantage is a lack of communication across functional areas, often referred to as the functional chimney problem. Another significant disadvantage is negative competition amongst the department managers as they struggle for power. This can result in the various departments building fiefdoms or silos and isolating themselves from the other departments.

Reference: See pages 185-186 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Functional structures group together people using similar skills.

83. Describe a division structure and the various substructures within it.

Ans: A division structure groups people working in the same product line or geographical area or with similar customers. Divisions usually are formed as corporations grow in order to continue to provide a strong customer focus. The three most common division structures are: Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Product – The focus here is on similar products or services. The advantage is a high level of product knowledge within the organization.

Geographical – The focus is on geographical territories. The advantage is knowledge of the local culture.

Customer – The focus is on key accounts. The advantage is a thorough knowledge of the customer’s needs and operations.

There is a fourth structure called process, but it focuses on common processes used by the manufacturer and is not as customer driven.

Reference: See pages 187-188 Level: Medium Learning Objective 2: Identify common types of organizational structures.

Section Reference: Divisional structures group together people by products, customers, or locations.

84. What is a matrix structure? What are the two structures from which it is formed?

What are the advantages and disadvantages of this type of structure?

Ans: A matrix structure is just what the name implies. It is a matrix of a functional structure and a divisional structure. The x-axis consists of the functional departments, while the y-axis consists of project managers. The matrix is filled in by functional personnel who are assigned to both functional managers and project managers. These groups make up what are called cross functional teams.

The main advantage of the matrix structure is that the communication barriers that exist in a functional organization, often called the functional chimney problem, are eliminated by the cross functional teams. This allows for open communication and decision making at the lowest possible level.

The main disadvantage of the matrix structure is that the team members report to two managers, a functional manager and a project manager, and may get caught in a squeeze if the two managers are in conflict with each other. The solution to this problem is a strong general manager who can resolve the conflict.

Reference: See pages 188-189 Level: Hard Learning Objective 2: Identify common types of organizational structures.

Section Reference: Matrix structures combine the functional and divisional structures.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

File: mod09, Chapter 9: Organizational Cultures, Innovation, and Change

Multiple Choice

1. A system of shared beliefs and values that guides organizational behavior is called organizational __________. a) policy b) rules c) design d) culture Ans: d Page: See page 206 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture is the personality of the organization.

2. Organizational culture can be thought of as:* a) the “way we do things around here.” b) a system of shared beliefs and values. c) the personality of the organization. d) all of the above.

Ans: d Page: See page 206 Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture is the personality of the organization.

3. Language and other symbols conveying core values are known as: a) rites and rituals. b) symbols. c) heroes. d) stories.

Ans: b Page: See page 208 Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: The observable culture is what you see and hear as an employee or customer.

4. Strong organizational cultures contribute to performance in all of the following ways EXCEPT: a) they are high-performance oriented. b) they focus on getting the job done no matter how. c) they provide a clear vision. d) they discourage dysfunctional work behaviors and encourage positive ones.

Ans: b Reference: See page 207 Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture shapes behavior and influences performance.

5. What a person sees or hears when he/she is walking around in an organization is part of the organization’s __________. a) observable culture b) goals c) strategy d) employee training Ans: a Page: See page 208 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The observable culture is what you see and hear as an employee or customer.

6. Many West coast companies do not have private offices or parking spaces for their senior managers. This is an example of an organization’s __________. a) corporate policy b) employee training c) performance appraisal d) observable culture Ans: d Page: See page 208 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: The observable culture is what you see and hear as an employee or customer.

7. The process through which new members learn the culture of an organization is called __________. a) structure. b) policy. c) socialization. d) employee development.

Ans: c Page: See page 207 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture shapes behavior and influences performance.

8. Achievement award programs are __________ that contribute to a company’s core values.* a) stories b) heroes c) rites and rituals d) symbols Ans: c Page: See page 208 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The observable culture is what you see and hear as an employee or customer.

9. Which of the following is a part of the observable culture in an organization? a) The way people dress. b) The layout of the offices. c) The lack of executive parking spaces. d) All of the above are parts of the observable culture in an organization.

Ans: d Page: See page 208 Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: The observable culture is what you see and hear as an employee or customer.

10. A deeper level of organizational culture that consists of the beliefs and values shared by the organization members is called a(n) __________ culture.* a) bureaucratic b) organic c) core d) mechanistic Ans: c Page: See page 209 Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The core culture is found in the underlying values of the organization.

11. The beliefs shared by organization’s members are called __________. a) corporate doctrine b) management directive c) corporate requests d) core values Ans: d Page: See page 209 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The core culture is found in the underlying values of the organization.

12. Merck—“highest level of scientific excellence,” Whole Foods—“Creating ongoing win-win partnerships with our suppliers,” Fedex---“We are honest, ethical, and do the right thing.” This is an example of a __________. a) process innovation b) value-based management c) values statement d) mission statement Ans: c Page: See page 209 Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Hard Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The core culture is found in the underlying values of the organization.

13. Organizations that actively develop, communicate, and enact shared values are practicing __________. a) functional management b) value-based management c) employee manipulation d) bureaucratic control Ans: b Page: See page 210 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Value-based management supports a strong organizational culture.

14. What do employees rely upon the most to indicate the true values, or core culture, of an organization? a) Speeches by the top managers b) The mission statement of the organization c) The actions of the top managers d) The little values cards that are handed out to employees Ans: c Page: See page 210 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The core culture is found in the underlying values of the organization.

15. Practices that create meaning and shared community among employees are called __________. a) functional management b) workplace spirituality c) employee manipulation d) bureaucratic control Ans: b Page: See page 211 Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The core culture is found in the underlying values of the organization.

16. A manager who uses symbols to establish and maintain a desired organizational culture is a(n) __________. a) autocratic manager b) symbolic leader c) benevolent leader d) participative manager Ans: b Page: See page 210 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The core culture is found in the underlying values of the organization.

17. The process of taking a new idea and putting it into practice is called __________. a) product b) innovation c) creativity d) brainstorming Ans: b Page: See page 213 Level: Easy Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Organizations pursue process, product, and business model innovations.

18. Improving the way things are done is called __________. a) product innovation b) process innovation c) creativity d) commercializing innovation Ans: b Page: See page 213 Level: Easy Learning Objective 2: Recognize how organizations support and achieve innovation.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Organizations pursue process, product, and business model innovations.

19. The development and introduction of new or improved goods and services is referred to as__________. a) product innovation b) process innovation c) virtual processing d) commercializing innovation Ans: a Page: See page 213 Level: Easy Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Organizations pursue process, product, and business model innovations.

20. The process of turning ideas into products/methods that can increase profits is called __________.* a) virtual processing b) organizational development c) business model innovation d) transformational change Ans: c Page: See page 213 Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Organizations pursue process, product, and business model innovations.

21. Netflix turned movie rental into a subscription business; eBay earns revenues from the users of its online marketplace; Google thrives on advertising revenues driven by ever-expanding Web technologies. These are all examples of __________ innovations. a) process b) virtual c) business model d) green Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: c Page: See page 213 Level: Hard Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Organizations pursue process, product, and business model innovations.

22. Replacing air travel with videoconferencing eliminated 13,500 flights by Vodafone employees and cut some 5,000 tons of carbon emissions. This is an example of a __________ innovation. a) power b) product c) model d) green Ans: d Page: See page 214 Level: Hard Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Green innovations pursue and support the goals of sustainability.

23. Pursuing creative and innovative ways to solve social problems is called __________. a) social responsibility b) social entrepreneurship c) green innovation d) commercializing innovation Ans: b Reference: See page 214 Level: Easy Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Social innovations seek solutions to important societal problems.

24. The four steps in commercializing innovation are idea generation, initial experimentation, __________, and final application.* a) product introduction b) process improvement c) process development d) feasibility experimentation Ans: d Page: See page 215 Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Commercializing innovation turns new ideas into salable products.

25. __________ innovation recognizes the potential for valuable innovations to be launched from lower organizational levels and diverse locations, including emerging markets. a) Reverse b) Forward c) Commercializing d) Virtual Ans: a Page: See page 215 Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Commercializing innovation turns new ideas into salable products.

26. Special creative units set free from the normal organizational structure for the purpose of innovation are called __________ .* a) divisions b) skunkworks c) research labs d) business units Ans: b Reference: See page 216 Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Innovative organizations share many common characteristics.

27. A person who tries to change the behavior of another person or social system is called a(n) __________ leader. a) top down b) incremental c) bottom up d) change Ans: d Page: See page 219 Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Organizations pursue both transformational and incremental changes.

28. Change that results in a major and comprehensive redirection of the organization is called __________ change. a) transactional b) incremental c) bottom up d) transformational Ans: d Page: See page 219 Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Organizations pursue both transformational and incremental changes.

29. Change that bends and adjusts existing ways to improve performance is called __________ change. a) transactional b) incremental c) bottom up d) transformational Ans: b Page: See page 220 Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Organizations pursue both transformational and incremental changes.

30. In order to lead transformational change, the leader must:* a) establish a sense of urgency. b) empower others. c) create and communicate a change vision. d) do all of the above.

Ans: d Reference: See page 220 Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Organizations pursue both transformational and incremental changes.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

31. You know that you are likely working with a “status quo” manager when they exhibit any of the following traits EXCEPT: a) appearing threatened by change. b) being bothered by uncertainty. c) preferring predictability. d) making things happen.

Ans: d Page: See page 219 Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Organizations pursue both transformational and incremental changes.

32. All of the following are true of major transformational change efforts EXCEPT: a) they involve radical changes. b) they result in redirection of the organization. c) such efforts are intense and highly stressful. d) overall, they are generally successful.

Ans: e Reference: See pages 219-220 Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Organizations pursue both transformational and incremental changes.

33. According to Lewin, the correct order in the steps of change is:* a) freezing, refreezing, and changing. b) unfreezing, changing, and refreezing. c) refreezing, changing, and unfreezing. d) changing, unfreezing, and refreezing.

Ans: b Page: See page 220 Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Three phases of planned change are unfreezing, changing, and refreezing.

34. In Lewin’s “planned change” process, the step that prepares a system for change is called __________.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

a) refreezing b) unfreezing c) changing d) thawing Ans: b Page: See page 220 Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Three phases of planned change are unfreezing, changing, and refreezing.

35. In Lewin’s “planned change” process, the step at which change is stabilized is called __________. a) refreezing b) unfreezing c) changing d) thawing Ans: a Page: See page 221 Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Three phases of planned change are unfreezing, changing, and refreezing.

36. A(n) __________ strategy pursues change through formal authority and the use of rewards or punishments. a) rational persuasion b) shared power c) force-coercion d) irrational Ans: c Page: See page 222 Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

37. A(n) __________ strategy creates change through rational persuasion and empirical argument. a) rational persuasion b) shared power c) force-coercion d) empirical force Ans: a Page: See page 223 Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

38. A(n) __________ strategy pursues change by participation in assessing change needs, values, and goals. a) rational persuasion b) shared power c) force-coercion d) empirical force Ans: b Page: See page 224 Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

39. The “shared power” change strategy is most closely linked to the __________ power base.* a) legitimate b) reward c) coercive d) referent Ans: d Page: See page 222 Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

40. The rational persuasion strategy is most closely linked to the __________ power base. a) legitimate b) reward c) coercive d) expert Ans: d Page: See page 223 Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

41. The “forced coercion” change strategy is most closely linked to the __________ power base. a) legitimate b) traditional c) expert d) referent Ans: a Page: See page 222 Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

42. All of the following could be sources of resistance to change EXCEPT:* a) past successful change. b) fear of the unknown. c) loss of control. d) loss of face.

Ans: a Page: See page 224 Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Change leaders identify and deal positively with resistance to change.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

True/False

43. One firm now considered a benchmark for its special culture is Zappos.

Ans: True Page: See page 206 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture is the personality of the organization.

44. Given the impossibility of actually “seeing” assumptions and beliefs, it is not possible to actually see the culture of an organization; it is just something that you feel.

Ans: False Page: See page 208 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The observable culture is what you see and hear as an employee or customer.

45. Strong cultures have been identified as a problem for successful organizations.

Ans: True Page: See page 207 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture shapes behavior and influences performance.

46. Strong corporate cultures just happen.

Ans: False Page: See page 207 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture shapes behavior and influences performance.

47. Core cultures are found in the underlying values of the organization.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: True Page: See page 209 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The core culture is found in the underlying values of the organization.

48. Both Baby Boomers and Gen Ys rate flexible work as important.

Ans: True Page: See page 209 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The core culture is found in the underlying values of the organization.

49. One of the challenges for managers is that values statements are easy to develop and write, but hard to live up to.

Ans: True Page: See page 210 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Value-based management supports a strong organizational culture.

50. A person’s Facebook profile ought to be unaffected by his/her organizational culture.

Ans: False Page: See page 211 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Value-based management supports a strong organizational culture.

51. Strong corporate cultures are easy to develop and quick to implement.

Ans: False Page: See page 207 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture shapes behavior and influences performance.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

52. Innovation is the process of taking an idea and putting it into action.

Ans: True Page: See page 213 Level: Easy Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Organizations pursue process, product, and business model innovations.

53. Using robots to improve manufacturing efficiency is an example of product innovation.

Ans: False Page: See page 213 Level: Hard Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Organizations pursue process, product, and business model innovations.

54. Creating innovative ways to solve pressing social problems is called social engineering.

Ans: False Page: See page 214 Level: Easy Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Social innovations seek solutions to important societal problems.

55. Once an idea is generated, the next step is commercialization.

Ans: False Page: See page 215 Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Commercializing innovation turns new ideas into salable products.

56. Highly innovative companies include innovation in their strategy.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: True Page: See page 216 Level: Easy Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Innovative organizations share many common characteristics.

57. Special creative units set free from the normal organizational structure are called advanced development teams.

Ans: False Page: See page 216 Level: Easy Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Innovative organizations share many common characteristics.

58. In highly innovative organizations, staffing supports innovation.

Ans: True Page: See page 216 Level: Easy Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Innovative organizations share many common characteristics.

59. Transformational change is more important to an organization than incremental change.

Ans: False Page: See pages 219-220 Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Organizations pursue both transformational and incremental changes.

60. The “burning bridge” phase is another way to see Lewin’s “unfreezing,” as it is an attempt to get people to see that they have to “jump” into the change.

Ans: True Page: See page 220 Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Three phases of planned change are unfreezing, changing, and refreezing.

61. In Lewin’s third phase of planned change, the change leader’s task is to implement change.

Ans: False Page: See page 221 Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Three phases of planned change are unfreezing, changing, and refreezing.

62. In order for the rational persuasion strategy to work, the leader must have expert power in the eyes of the followers.

Ans: True Page: See page 223 Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

63. When dealing with resistance to change, managers may use facilitation and support to provide encouragement and training.

Ans: True Page: See page 224 Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Change leaders identify and deal positively with resistance to change.

Fill-in-the-Blank

64. __________ is a system of shared meanings, beliefs, and values that develop in an organization and guides the behavior of its members.

Ans: Organizational (or corporate) culture Page: See page 206 Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture is the personality of the organization.

65. __________ is the process through which new members learn the culture of an organization.

Ans: Socialization Page: See page 207 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture shapes behavior and influences performance.

66. The observable culture is visible via the __________ and __________ shared among the organizational members on a regular basis.

Ans: Two of the following – stories, heroes, symbols, or rites/rituals Page: See page 208 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The observable culture is what you see and hear as an employee or customer.

67. The underlying values and assumptions that support the observable culture are part of the __________ culture.

Ans: core Page: See page 209 Level: Easy Learning Objective 1: Understand the nature of organizational culture.

Section Reference: The core culture is found in the underlying values of the organization.

68. __________ management involves operating with a commitment to actively help develop, communicate, and represent the shared values within an organization.

Ans: Value-based Page: See page 210 Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Value-based management supports a strong organizational culture.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

69. __________ involves practices that create meaning and shared community among organizational members.

Ans: Workplace spirituality Page: See page 211 Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Value-based management supports a strong organizational culture.

70. The overall process of developing new ideas and putting them into practice is known as __________.

Ans: innovation Page: See page 213 Level: Easy Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Organizations pursue process, product, and business model innovations.

71. __________ is the process of turning new ideas into salable products.

Ans: Commercializing innovation Page: See page 215 Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Commercializing innovation turns new ideas into salable products.

72. __________ are individuals who take on the responsibility for changing the existing pattern of behavior in a system.

Ans: Change leaders (or agents) Page: See page 219 Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Organizations pursue both transformational and incremental changes.

73. Change that seeks to tweak or modify the existing system is called __________ change.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: incremental Page: See page 220 Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Organizations pursue both transformational and incremental changes.

74. The __________ phase of planned change focuses on stabilizing the change with rewards, positive reinforcement, and resource support.

Ans: refreezing Page: See page 221 Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Three phases of planned changes are unfreezing, changing, and refreezing.

75. In the force-coercion change strategy, the __________ tactic involves working indirectly to gain special advantage over other people in order to force change.

Ans: political maneuvering Page: See page 222 Level: Hard Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

76. In the __________ change strategy, change is pursued through empirical data and rational judgment.

Ans: rational persuasion Page: See page 223 Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

Essay

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

77. Define organizational culture, observable culture, core culture, and the factors that affect each of them.

Ans: Organizational culture is a system of shared beliefs and values that guide the members of an organization. The culture of an organization is influenced by the core culture and the observable culture, consisting of what you would see and hear if you were walking around an organization. Some examples of the observable culture are employee conversation and behavior, office layout, and how you are treated as a customer. The core culture is found in the underlying values of the organization. Factors influencing the core culture are stories, rites and rituals, symbols, and heroes.

Page: See pages 206-209 Level: Medium Learning Objective 1: Understand the nature of organizational culture.

Section Reference: Organizational culture is the personality of the organization.

Section Reference: The observable culture is what you see and hear as an employee or customer.

Section Reference: The core culture is found in the underlying values of the organization.

78. Define innovation, and describe the three types of innovation.

Ans: Innovation is the process of taking a new idea and putting it into practice. The three types of innovation are process innovation, product innovation, and business model innovation. Process innovation is improving the way things are done. Product innovation is the development and introduction of new or improved goods and services. Business model innovation is finding new ways of making money for the firm.

Page: See page 213 Level: Easy Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Organizations pursue process, product, and business model innovations.

79. What does it mean to commercialize innovation? Briefly describe the four steps of this process.

Ans: Commercializing innovation is the process of turning new ideas into salable products. One step of this process is idea creation, which involves discovering a potential product or ways to modify an existing one. Another step is initial experimentation, which involves sharing the idea with others and testing it in prototype form. Feasibility determination is the next step, whereby the practicality and financial viability of the new product is tested. In the next step, final application, the product is commercialized for sale to customers or clients.

Page: See page 215 Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Medium Learning Objective 2: Recognize how organizations support and achieve innovation.

Section Reference: Commercializing innovation turns new ideas into salable products.

80. Name and explain Kurt Lewin’s three phases of planned change.

Ans: The three phases of planned change are unfreezing, changing, and refreezing.

Unfreezing is the first step in the process. It is preparing the organization for change by convincing others that there is a need for change.

Changing is the second step in the process. This is the actual implementation of the change.

Refreezing is the final step in the process. The intent of refreezing is to stabilize the new organization.

Page: See pages 220-221 Level: Easy Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Three phases of planned changes are unfreezing, changing, and refreezing.

81. Name and define the three types of change strategies along with their corresponding power bases.

Ans: The three types of change strategies are force-coercion, rational persuasion, and shared power.

Force-coercion is a strategy that pursues change through formal authority and the use of rewards or punishments. It operates from a legitimate (position) power base.

Rational persuasion is a strategy that creates change through rational persuasion and empirical argument. It operates from an expertise or knowledge power base.

Shared power is a strategy that develops support for change through personal values and commitments. It operates from a referent power base.

Page: See pages 222-224 Level: Medium Learning Objective 3: Describe how managers lead the process of organizational change.

Section Reference: Managers use force-coercion, rational persuasion, and shared power change strategies.

Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

File: mod10, Chapter 10: Human Resource Management

Multiple Choice

1. __________ is the process of attracting, developing, and maintaining a high quality workforce. a) Equal opportunity b) Human resource management (HRM) c) General management d) Outsourcing Ans: b Page: See page 232 Level: Easy Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Human resource management attracts, develops, and maintains a talented workforce.

2. The Human Resources department is tasked with all of the following EXCEPT:* a) supervising and evaluating employees. b) attracting a quality workforce. c) developing a quality workforce. d) maintaining a quality workforce.

Ans: a Page: See page 233 Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Human resource management attracts, develops, and maintains a talented workforce.

3. Refusing to hire or promote someone for non-job related reasons is called job __________.* a) prejudice * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

b) bias c) discrimination d) right to work Ans: c Page: See page 234 Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

4. The right to employment and advancement without regard to race, sex, color, religion, or national origin is called __________. a) equal employment opportunity b) discrimination c) affirmative action d) human resource management Ans: a Page: See page 234 Level: Easy Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

5. Job discrimination, denial based on non-performance related issues, occurs when the denial is for: a) employment. b) a job assignment. c) an advancement opportunity. d) all of the above.

Ans: d Page: See page 234 Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

6. Which of the following categories are protected by Title VII of the 1964 Civil Rights Act (CRA)? a) Religion b) Race c) Color d) All of the above Ans: d Page: See page 234 Level: Easy Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

7. Which of the following is NOT covered by the Equal Employment Opportunity (EEO) Act? a) Protection of the right to gain/keep employment based upon ability and performance. b) Equal pay for men and women. c) Discrimination of persons over 40. d) None of the above.

Ans: d Page: See pages 234-235 Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

8. __________ is an effort on the part of the federal government, to ensure equal employment for members of protected groups, by setting hiring quotas based on the demographics of relevant markets. a) Discrimination b) Right to work c) Affirmative action d) Equal employment opportunity Ans: c Page: See page 234 Level: Medium * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

9. Employment criteria justified by capacity to perform a job is called __________. a) discrimination b) affirmative action c) bona fide occupational qualifications d) career planning Ans: c Page: See page 235 Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

10. The affirmative action process demands all of the following EXCEPT:* a) analysis of the demographics of the current company workforce. b) survey of the relevant labor market to determine its demographics. c) comparison of the current company workforce with the available labor market. d) hiring of people in underrepresented classes, regardless of qualifications.

Ans: d Page: See page 234 Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

11. Age discrimination is expected to __________ in future years. a) decrease b) increase c) remain stable d) none of the above Ans: b Page: See page 236 * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Easy Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Laws can’t guarantee that employment discrimination will never happen.

12. All of the following would be legitimate reasons for not hiring someone EXCEPT: a) a special pilot’s license to fly for major airlines. b) a minimum height requirement to serve as a highway patrolman. c) passing a criminal background check to be an elementary school teacher. d) a medical license to be a doctor.

Ans: b Page: See pages 238-239 Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Recruitment attracts qualified job applicants.

13. All of the following are protected by federal law EXCEPT:* a) an HIV job applicant. b) a 40-year-old worker. c) a pregnant worker. d) a job applicant who smokes.

Ans: d Page: See page 235 Level: Difficult Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

14. Which of these was the very first bill signed by President Obama, which expanded workers’ rights to sue employers on equal pay issue? a) Pregnancy Discrimination Pay for Performance Act b) Lilly Ledbetter Fair Pay Act c) Age Discrimination Wage Restriction Act d) Workplace Privacy Affirmative Action Pay Act * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: b Page: See page 236 Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Laws can’t guarantee that employment discrimination will never happen.

15. Which of the following U.S. laws protects female workers from discrimination because of pregnancy? a) The Equal Pay Act of 1963 b) The Maternity Leave Act of 2005 c) The Pregnancy Discrimination Act of 1978 d) The Family and Medical Leave Act of 1993 Ans: c Page: See page 235 Level: Easy Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

16. The right to privacy at work applies to __________.* a) only managers b) only non managers c) all employees d) none of the above Ans: c Page: See page 236 Level: Easy Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Laws can’t guarantee that employment discrimination will never happen.

17. Which of the following should employees assume regarding privacy in the workplace?* * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

a) Technology can allow employers to monitor emails from company computers. b) Technology can allow employers to identify who is receiving phone calls. c) Technology can allow employers to track internet searches done on company equipment. d) All of the above.

Ans: d Page: See page 236 Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Laws can’t guarantee that employment discrimination will never happen.

18. About __________ percent of age discrimination suits result in some financial settlement in favor of the person filing the claim.* a) 80 b) 20 c) 50 d) 35 Ans: b Page: See page 236 Level: Hard Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Laws can’t guarantee that employment discrimination will never happen.

19. People who are hired on temporary contracts and are not a part of the organization’s permanent workforce are called __________. a) selective workers b) variable time employees c) flex time workers d) independent contractors Ans: d Page: See page 248 Level: Easy Learning Objective 3: Recognize current issues in human resource management. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Organizations are using more independent contractors and part-time workers.

20. One of the benefits that an organization gets by using independent contractors is that independent contractors __________.* a) are less expensive than full time employees b) get no benefits c) are better workers d) are always available Ans: b Page: See page 249 Level: Medium Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Organizations are using more independent contractors and part-time workers.

21. The process of attracting a qualified pool of applicants is called __________. a) planning b) screening c) selection d) recruiting Ans: d Page: See page 238 Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Recruitment attracts qualified job applicants.

22. __________ is the match of individual values, interests, and behaviors with the organizational culture. a) Person-job fit b) Person-organization fit c) Recruitment d) Job satisfaction Ans: b Page: See page 238 * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Recruitment attracts qualified job applicants.

23. Which of the following is NOT good advice in preparing for a telephone interview? a) Study the organization ahead and match your strengths to it b) Plan to take the call in a quiet, private location c) Practice your voice tone and modulation to set a good first impression d) Don’t worry about how you are dressed Ans: d Page: See page 239 Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Recruitment attracts qualified job applicants.

24. During selection, the process that attempts to reveal both the good and bad points of the job is called: a) an in-depth interview. b) recruitment. c) a realistic job preview. d) orientation.

Ans: c Page: See page 239 Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Recruitment attracts qualified job applicants.

25. The process of choosing whom to hire from a pool of qualified candidates is called __________. a) assessing b) recruiting c) selection d) reviewing Ans: c Page: See page 240 * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Selection makes decisions to hire qualified job applicants.

26. In designing an employment test, ensuring that the results are an accurate predictor of future job performance means that the test instrument is __________.* a) valid b) reliable c) realistic d) socialized Ans: a Page: See page 240 Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Selection makes decisions to hire qualified job applicants.

27. A(n) __________ center evaluates a candidate’s job potential by simulated testing. a) business b) socialization c) assessment d) coaching Ans: c Page: See page 240 Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Selection makes decisions to hire qualified job applicants.

28. The process of evaluating a candidate in an actual work situation is called __________. a) reality b) work sampling c) coaching d) socialization Ans: b Page: See page 240 Level: Easy * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 2: Identify essential human resource management practices.

Section Reference: Selection makes decisions to hire qualified job applicants.

29. The process of teaching a new employee the culture of an organization is called __________. a) assessment b) socialization c) affirmative action d) unionization Ans: b Page: See page 241 Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Socialization and orientation integrate new employees into the organization.

30. Once a candidate is hired, __________ familiarizes the new employee with jobs, coworkers, and organizational policies and services. a) documentation b) socialization c) orientation d) coaching Ans: c Page: See page 241 Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Socialization and orientation integrate new employees into the organization.

31. When a new employee is assigned to an experienced employee who offers performance advice, it is called ________.* a) on the job training b) orientation c) work sampling d) coaching * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: d Page: See page 241 Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Training continually develops employee skills and capabilities.

32. Assigning an early career employee as a protégé to a more senior employee for the purpose of professional advice and career guidance is called __________. a) coaching b) mentoring c) assessing d) socialization Ans: b Page: See page 241 Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Training continually develops employee skills and capabilities.

33. __________ is the process of formally evaluating an employee’s performance for the purpose of providing feedback. a) Performance appraisal b) Salary review c) Coaching d) Mentoring Ans: a Page: See page 242 Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

34. The appraisal system that includes descriptions of actual behaviors to exemplify the various levels of performance is known as a:* a) graphic rating scale. b) paired comparison. c) critical-incident technique. d) behaviorally anchored rating scale. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: d Page: See page 243 Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

35. A performance appraisal method that uses a log of the employee’s effective and ineffective job behaviors is called a__________. a) behaviorally anchored rating scale b) critical-incident technique c) forced distribution method d) graphic rating scale Ans: b Page: See page 243 Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

36. A performance appraisal method that formally gathers input from the many people that work with, and depends on the person being appraised is called a __________. a) behaviorally anchored rating scale b) critical-incident technique c) forced distribution method d) 360feedback Ans: d Page: See page 243 Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

37. A performance appraisal method that rates and ranks employees relative to each other is called a__________. a) behaviorally anchored rating scale b) critical-incident technique c) multiperson comparison * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

d) graphic rating scale Ans: c Page: See page 244 Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

38. The process of managing how an employee grows and progresses in responsibility from one point to another is called __________.* a) career planning b) employee management c) career development d) multiperson comparison Ans: c Page: See page 244 Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Retention and career development provide career paths.

39. The process of managing career goals and individual capabilities with opportunities for their fulfillment is called __________. a) career planning b) employee management c) career development d) multiperson comparison Ans: a Page: See page 245 Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Retention and career development provide career paths.

40. __________ involves balancing career demands with personal and family needs. a) Work-life balance b) Employee management c) Career development d) Multiperson comparison * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: a Page: See page 247 Level: Medium Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Today’s lifestyles increase demands for flexibility and work-life balance.

41. A __________ plan awards regular pay increases in proportion to performance. contributions. a) stock option b) bonus plan c) merit pay d) profit sharing Ans: c Page: See page 249 Level: Easy Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Compensation plans influence employee recruitment and retention.

42. A __________ plan allows employees to share in cost savings or productivity gains realized by their efforts.* a) stock option b) bonus plan c) merit d) gain sharing Ans: d Page: See page 250 Level: Easy Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Compensation plans influence employee recruitment and retention.

43. An organization that represents the collective behalf of workers to employers is called a(n) __________. a) trade union b) employer representative c) employee organization d) labor union * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: d Page: See page 251 Level: Easy Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Labor relations and collective bargaining are closely governed by law.

44. All of the following are true of labor unions EXCEPT:* a) they are made up of workers. b) they act as a “collective” voice for the workers. c) they are run by the company management. d) they bargain for the workers.

Ans: c Page: See page 251 Level: Easy Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Labor relations and collective bargaining are closely governed by law.

45. __________ programs allow choice to personalize benefits within a set dollar allowance. a) Family friendly b) Flexible benefits c) Employee assistance d) Collective bargaining Ans: b Page: See page 251 Level: Medium Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Fringe benefits are an important part of employee compensation packages.

46. The process of negotiating, administering, and interpreting a contract is called ___________.* a) legal administration b) collective bargaining * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

c) unionizing d) union manipulation Ans: b Page: See page 252 Level: Easy Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Labor relations and collective bargaining are closely governed by law.

True/False

47. Strategic human resource management aligns human capital with organizational strategies.

Ans: True Page: See page 233 Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Strategic human resource management aligns human capital with organizational strategies.

48. Human capital is the personal value of an employee and is not related to economic value.

Ans: False Page: See page 233 Level: Easy Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Strategic human resource management aligns human capital with organizational strategies.

49. The Family and Medical Leave Act grants up to 12 weeks of unpaid leave for qualifying actions and protects the individual’s employment status. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: True Page: See page 235 Level: Easy Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

50. Affirmative action attempts to enforce equal employment opportunity legislation.

Ans: True Page: See page 234 Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

51. It is legal to pay men and women differently, even if they are doing the same job.

Ans: False Page: See page 235 Level: Easy Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

52. Employees right to privacy of communications inside the workplace is guaranteed by civil rights legislation.

Ans: False Page: See page 236 Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Laws can’t guarantee that employment discrimination will never happen.

53. Marketing surveys show that women influence only 20% of car purchases and that most men prefer dealing with a female salesperson. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: False Page: See page 245 Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Retention and career development provide career paths.

54. A realistic job interviewer “sells” only the positive features of a job and an organization.

Ans: False Page: See page 239 Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Recruitment attracts qualified job applications.

55. Reliability of employee testing means that the scores on a selection device demonstrate links with future job performance.

Ans: False Page: See page 240 Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Selection makes decisions to hire qualified job applicants.

56. The interview process must be carefully managed because it can be corrupted in a number of ways that can result in missing good candidates or hiring poor candidates.

Ans: True Page: See page 240 Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Selection makes decisions to hire qualified job applicants.

57. Many employers talk about the “value” they place on their workers, but a good test is whether they invest in employee training.

Ans: True Page: See page 241 Level: Easy * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 2: Identify essential human resource management practices.

Section Reference: Training continually develops employee skills and capabilities.

58. In order to avoid the problem of managers ranking all their employees at about the same level, companies should use graphic rating scales.

Ans: False Page: See page 243 Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

59. In order to get performance feedback from more sources than just the employee’s supervisor, a program of 360 feedback can be implemented.

Ans: True Page: See page 243 Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

60. In the dynamic workplace environment of today, more and more of the responsibility for career planning is falling on the individual employees to do their own.

Ans: True Page: See page 245 Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Retention and career development provide career paths.

61. Workers who have flexibility, at least with start and stop times, are less likely to leave their jobs.

Ans: True Page: See page 247 Level: Medium Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Today’s lifestyle increases demands for flexibility and work-life balance. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

62. Although marked by a troubled past, the trend in modern labor-management relations is toward more cooperation than adversity.

Ans: True Page: See page 252 Level: Medium Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Labor relations and collective bargaining are closely governed by law.

Fill-in-the-Blank

63. __________ means behaving with internalized commitments to special standards determined by personal values, academic degrees, professional associations, and company culture and practices.

Ans: Professionalism Page: See page 231 Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Management Live.

64. __________ qualifications are legitimate criteria for hiring that are clearly linked to a person’s capacity to perform the job.

Ans: Bona fide occupational Page: See page 235 Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

65. __________ penalizes a woman in a job or as a job applicant for being pregnant.

Ans: Pregnancy discrimination * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Page: See page 236 Level: Easy Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Laws can’t guarantee that employment discrimination will never happen.

66. __________ is the match of individual skills, interests, and personal characteristics with the job.

Ans: Person-job fit Page: See page 238 Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Recruitment attracts qualified job applicants.

67. __________ requires equal pay for women and men doing equal work.

Ans: The Equal Pay Act of 1963 Page: See page 235 Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

68. __________ workers are those with regular employment who are not eligible for regular benefits.

Ans: Contingency workers Page: See page 249 Level: Medium Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Organizations are using more independent contractors and part-time workers.

69. __________ involves making a choice to hire from the pool of applicants for a given job.

Ans: Selection Page: See page 240 * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Easy Learning Objective 2: Identify essential human resource management practices.

Section Reference: Selection makes decisions to hire qualified job applicants.

70. __________ is the process of assigning a new or early-career employee to a senior manager for guidance and development.

Ans: Mentoring Page: See page 241 Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Training continually develops employee skills and capabilities.

71. The purpose of performance appraisals are both to __________ and document performance, as well as initiate a process of __________.

Ans: evaluate, development Page: See page 242 Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

72. In __________, younger and newly hired employees mentor senior executives, often on latest developments with digital technologies.

Ans: reverse mentoring Page: See page 242 Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Training continually develops employee skills and capabilities.

73. The __________ technique of performance evaluation requires the maintenance of a log to capture the employee’s effective and ineffective behaviors during the evaluation period.

Ans: critical-incident Page: See page 243 Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

74. A multiperson comparison method that requires evaluators to place each employee into a frequency distribution with several fixed performance classifications is called a(n) __________.

Ans: forced distribution Page: See page 244 Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

75. The text argues that a well-managed career should include a carefully thought out __________, as well as being guided by an eye for __________.

Ans: career plan, opportunity Page: See page 245-246 Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Retention and career development provide career paths.

76. __________ plans provide one-time payments based on performance accomplishments.

Ans: Bonus pay Page: See page 250 Level: Easy Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Compensation plans influence employee recruitment and retention.

77. The process involving management and unions working together to negotiate, administer, and interpret labor contracts is called __________.

Ans: collective bargaining Page: See page 252 Level: Easy Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Labor relations and collective bargaining are closely governed by law.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Essay

78. Why is it important for managers to avoid discrimination in the workplace?

Ans: Of course, discrimination avoidance is called for in order to comply with the law, but this is really a lesser reason (and should not result in full credit). Job discrimination deprives the organization of the talent of otherwise qualified individuals, and these practices can destroy employee morale and motivation. Organizations will perform better when they treat their members better.

Page: See pages 232-234 Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Human resource management attracts, develops, and maintains a talented workforce.

Section Reference: Strategic human resource management aligns human capital with organizational strategies.

Section Reference: Government legislation protects against employment discrimination.

79. Based upon your studies to this point in the text, give an organizational reason for the decline in unions in the private sector and their growth in the public sector.

Ans: The basis for a union is a contract, which is very structured, hierarchical, and rulebound. This generally fits best into a mechanistic system of organization. In today’s competitive environment, it is organic structures that prevail, not mechanistic ones. Thus, unions do not fit well in the private sector. However, government is still largely bureaucratic and mechanistic. Union systems fit very well, therefore, in the public sector.

Page: See pages 251-252 Level: Medium Learning Objective 3: Recognize current issues in human resource management.

Section Reference: Labor relations and collective bargaining are closely governed by law.

80. List the three basic responsibilities of human resource management and the activities necessary to achieve them.

Ans: The three objectives of human resource management are to attract a quality workforce; develop a quality workforce and maintain a quality workforce. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

The activities necessary to attract a quality workforce include planning, recruiting, and selecting.

The activities necessary to develop a quality workforce include employee orientation, training, and performance appraisal.

The activities necessary to maintain a quality workforce include career development, work-life balance, compensation and benefits, retention and turnover, and labormanagement relations.

Page: See page 233 Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Human resource management attracts, develops, and maintains a talented workforce.

81. Define job discrimination, equal opportunity employment, affirmative action and the relationship between them.

Ans: Job discrimination is the act of denying a person a job or job assignment for other than job related reasons. Equal employment opportunity is the right to employment and advancement without regard to race, sex, color, religion or national origin. Affirmative action is an effort on the part of the federal government to ensure equal employment for members of protected groups by setting hiring quotas based on the demographics of relevant markets.

Recognizing that discrimination is not only morally wrong but also harmful to the nation, the government passed legislation intended to provide equal opportunity for all. To add strength to the legislation, the legislation included affirmative action.

Page: See page 234 Level: Medium Learning Objective 1: Understand the purpose and legal context of human resource management.

Section Reference: Government legislation protects against employment discrimination.

82. Name and define three methods used in conducting performance appraisals.

Ans: The methods for conducting performance appraisals are graphic rating scale, behaviorally anchored rating scale, critical-incident technique, 360feedback and multiperson comparison.

Graphic rating scale uses a standard checklist or scorecard for rating an employee’s performance.

Behaviorally anchored rating scale uses specific descriptions of actual behaviors to rate various levels of performance. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Critical-incident technique uses a log of the employee’s effective and ineffective job behaviors.

360 degree feedback formally gathers inputs from the many people that work with and depend on the person being appraised.

Multiperson comparison rates and ranks employees relative to each other.

Page: See pages 242-243 Level: Medium Learning Objective 2: Identify essential human resource management practices.

Section Reference: Performance management appraises and rewards accomplishments.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Package Title: Test Bank Course Title: Schermerhorn Exploring 3e Chapter Number: 11

Question Type: Multiple Choice

1. The process of inspiring others to work hard to accomplish important tasks is called __________. a) controlling b) planning c) leading d) organizing Answer: c Difficulty: Easy Learning Objective 1:Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders use personal power to achieve influence.

2. Of the four functions that make up the management process, __________ brings together the resources to turn plans into action. a) planning b) organizing c) leading d) controlling Answer: b Difficulty: Easy Learning Objective 1:Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders use personal power to achieve influence.

3. Of the four functions that make up the management process, __________ sets the direction and objectives. a) planning b) organizing c) leading d) controlling Answer: a

Difficulty: Easy Learning Objective 1:Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders use personal power to achieve influence.

4. The ability to get someone else to do something that you want done is called __________. a) authority b) power c) bullying d) drive Answer: b Difficulty: Easy Learning Objective 1:Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders use personal power to achieve influence.

5. __________ power achieves influence by offering something of value. a) Legitimate b) Coercive c) Reward d) Expert Answer: c Difficulty: Easy Learning Objective 1:Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders use personal power to achieve influence.

6. Mary’s manager has told her that if she can bring her project in on time, she will get an extra bonus of $10,000. Mary’s manager is using __________ power. a) expert b) reward c) manipulative d) referent Answer: b Difficulty: Easy Learning Objective 1: Identify the major concepts of leadership. .

Section Reference: Chapter Review

7. Which of the following types of power is NOT included with position power? a) Coercion b) Expertise c) Reward d) Legitimate Answer: b Difficulty: Easy Learning Objective 1:Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders use personal power to achieve influence.

8. The capability to punish or withhold positive outcomes as a way of influencing the behavior of other people is called __________ power. a) referent b) person c) expert d) coercive Answer: d Difficulty: Easy Learning Objective 1:Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders use personal power to achieve influence.

9. If your manager says that he/she will refuse your request for the weekend off to attend a concert unless you work the late shift for the rest of the week, he/she is using: a) legitimate power. b) reward power. c) expert power. d) coercive power. e) referent power.

Ans: d Difficulty: Medium Learning Objective 1:Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders use personal power to achieve influence.

10. The ability to influence the behavior of others because of a special knowledge and skill is called __________ power. a) expert b) leadership c) reward d) legitimate Answer: a Difficulty: Easy Learning Objective 1:Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders bring vision to leadership situations.

11. Which of the following types of power is included with personal power? a) Legitimate b) Coercive c) Reward d) Referent Answer: d Difficulty: Easy Learning Objective 1:Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders bring vision to leadership situations.

12. A __________ is a clear sense of the future. a) vision b) norm c) dream d) goal Answer: a Difficulty: Medium Learning Objective 1:Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders display different styles in the quest for leadership effectiveness.

13. According to which of the following effective leadership traits, successful leaders enjoy influencing others to achieve shared goals? a) Drive b) Business knowledge c) Honesty d) Motivation Answer: d Difficulty: Medium Learning Objective 1: Identify the major concepts of leadership.

Section Reference: Chapter Review

14. __________ style is the recurring pattern of behaviors exhibited by a leader. a) Management b) Expert c) Leadership d) Coercive Answer: c Difficulty: Easy Learning Objective 1: Describe the contingency leadership theories and what can be learned from them.

Section Reference: Fiedler’s contingency model matches leadership styles with situational differences.

15. A manager who holds on to authority and acts in a unilateral command and control fashion has a(n) __________ style. a) democratic b) human relations c) laissez-faire d) autocratic Answer: d Difficulty: Easy Learning Objective 1: Describe the contingency leadership theories and what can be learned from them.

Section Reference: Fiedler’s contingency model matches leadership styles with situational differences.

16. The leadership style which combines concern for task and people is called:

a) laissez-faire. b) autocratic. c) democratic. d) human relations. e) charismatic.

Answer: c Difficulty: Easy Learning Objective 1: Describe the contingency leadership theories and what can be learned from them.

Section Reference: Fiedler’s contingency model matches leadership styles with situational differences.

17. A leader with little concern for task and people has a(n) __________ style. a) democratic b) laissez-faire c) participative d) autocratic Answer: b Difficulty: Easy Learning Objective 1: Describe the contingency leadership theories and what can be learned from them.

Section Reference: Fiedler’s contingency model matches leadership styles with situational differences.

18. Which of the four leadership styles would be that of a weak leader? a) Autocratic b) Human relations c) Laissez-fair d) Democratic Answer: c Difficulty: Easy Learning Objective 1: Describe the contingency leadership theories and what can be learned from them.

Section Reference: Fiedler’s contingency model matches leadership styles with situational differences.

19. Fiedler’s model suggests that successful leadership depends upon the appropriate fit of personal style with the following contingency variables: a) money, competitive dynamics, and regulation. b) product type, industry life cycle, and market share. c) leader-member relations, task structure, and position power. d) manager personalities, labor relations, and union activity. e) buyer power, supplier power, and rivalry.

Answer: c Difficulty: Medium Learning Objective 1: Identify the major concepts of leadership.

Section Reference: Chapter Review

20. Which of the following is NOT a leadership style in the Hersey-Blanchard leadership model? a) Tasking b) Participating c) Delegating d) Selling Answer: a Difficulty: Medium Learning Objective 1:Describe the contingency leadership theories and what can be learned from them.

Section Reference: The Vroom-Jago model describes a leader’s choice of alternative decision-making methods.

21. Which of the following are leadership styles in the Hersey-Blanchard leadership model? a) Participating b) Delegating c) Selling d) All of the above Answer: d Difficulty: Medium Learning Objective 1:Describe the contingency leadership theories and what can be learned from them.

Section Reference: The Vroom-Jago model describes a leader’s choice of alternative decision-making methods.

22. Which of the following is NOT one of House’s path goal theory leadership styles? a) Supportive b) Democratic c) Directive d) Participative Answer: b Difficulty: Easy Learning Objective 1:Describe the contingency leadership theories and what can be learned from them.

Section Reference: The Vroom-Jago model describes a leader’s choice of alternative decision-making methods

23. The two groups identified in the LMX (Leader Member Exchange) theory are: a) task and people. b) participating and delegating. c) in and out. d) classical and behavioral.

Answer: c Difficulty: Medium Learning Objective 1:Describe the contingency leadership theories and what can be learned from them.

Section Reference: The Vroom-Jago model describes a leader’s choice of alternative decision-making methods

24. The Vroom-Jago model: a) helps managers lead through their use of decision-making methods. b) helps managers implement the classical model of decision making. c) is only useful in programmed decision situations. d) forces managers to make decisions without participation. e) helps managers avoid participation.

Answer: a Difficulty: Medium Learning Objective 1:Describe the contingency leadership theories and what can be learned from them.

Section Reference: The Vroom-Jago model describes a leader’s choice of alternative decision-making methods

25. The leader’s decision choices in the Vroom-Jago leader – participation model are authority, consultative and __________. a) individual b) managerial c) group d) adversarial Answer: c Difficulty: Medium Learning Objective 1:Describe the contingency leadership theories and what can be learned from them.

Section Reference: The Vroom-Jago model describes a leader’s choice of alternative decision-making methods

26. __________ leadership directs the efforts of others through tasks, rewards and structures. a) Transformational b) Participative c) Human relations d) Transactional Answer: d Difficulty: Easy Learning Objective 1:Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive leadership, and servant leadership Section Reference: Interactive leadership emphasizes communication, listening, and participation.

27. __________ leadership is inspirational and arouses extraordinary effort and performance. a) Transactional b) Transformational c) Autocratic d) Task Answer: b Difficulty: Easy Learning Objective 1:Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive

leadership, and servant leadership Section Reference: Interactive leadership emphasizes communication, listening, and participation.

28. A(n) __________ leader develops special leader-follower relationships and inspires followers in extraordinary ways. a) charismatic b) human relations c) autocratic d) task oriented Answer: a Difficulty: Easy Learning Objective 1: Identify the major concepts of leadership.

Section Reference: Chapter Review

29. __________ leaders raise the confidence, aspirations, and performance of followers through empowerment, intellectual stimulation, and integrity. a) Autocratic b) Transactional c) Transformational d) Directive Answer: c Difficulty: Medium Learning Objective 1:Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive leadership, and servant leadership Section Reference: Interactive leadership emphasizes communication, listening, and participation.

30. All of the following would be examples of emotionally intelligent activities EXCEPT: a) social awareness. b) an ability to empathize with others. c) the regular use of position power to manage people. d) self-regulation and management. e) an understanding of one’s own moods and emotions.

Answer: c

Difficulty: Medium Learning Objective 1:Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive leadership, and servant leadership Section Reference: Interactive leadership emphasizes communication, listening, and participation

31. __________ leadership is strong on communicating, participation and dealing with problems by teamwork. a) Ethical b) Task oriented c) Interactive d) Instructional Answer: c Difficulty: Easy Learning Objective 1:Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive leadership, and servant leadership.

Section Reference: Servant leadership is follower centered and empowering.

32. Serving others, helping them use their talents to help organizations to best serve society, is called __________ leadership. a) participative b) ethical c) servant d) transactional Answer: c Difficulty: Easy Learning Objective 1:Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive leadership, and servant leadership.

Section Reference: Servant leadership is follower centered and empowering.

33. Giving people job freedom and power to influence affairs in the organization is called __________. a) delegating b) ethical management c) empowerment d) entrepreneurship

Answer: c Difficulty: Easy Learning Objective 1:Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive leadership, and servant leadership.

Section Reference: Servant leadership is follower centered and empowering

Question Type: True/False

34. Leadership is all about being the best performer.

Answer: False Difficulty: Medium Learning Objective 1:Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders use personal power to achieve influence.

35. Legitimate power comes with the position in the organization.

Answer: True Difficulty: Easy Learning Objective 1:Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders use personal power to achieve influence.

36. Referent power comes from having the knowledge of an expert.

Answer: False Difficulty: Medium Learning Objective 1: Identify the major concepts of leadership.

Section Reference: Chapter Review

37. Expert power is the ability to influence others because they admire you and want to be identified with you.

Answer: False

Difficulty: Easy Learning Objective 1:Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders display different traits in the quest for leadership effectiveness.

38. Research has categorized management behaviors into two general classes: concern for task (production) and concern for people.

Answer: True Difficulty: Easy Learning Objective 1: Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders display different styles in the quest for leadership effectiveness.

39. Visionary leadership brings to the situation a clear sense of the future and an understanding of how to get there.

Answer: True Difficulty: Medium Learning Objective 1: Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders display different styles in the quest for leadership effectiveness.

40. A human relations leader emphasizes tasks over people.

Answer: False Difficulty: Medium Learning Objective 1: Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Fiedler’s contingency model matches leadership styles with situational differences.

41. An autocratic leadership style is one of command and control.

Answer: True Difficulty: Easy

Learning Objective 1: Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Fiedler’s contingency model matches leadership styles with situational differences.

42. There is one style of management that always works best.

Answer: False Difficulty: Medium Learning Objective 1:Describe the contingency leadership theories and what can be learned from them.

Section Reference: The Hersey-Blanchard situational leadership model matches leadership styles with the maturity of followers.

43. In the Fiedler scheme, the task-motivated leader is most effective at the extremes (i.e., high control or low control situations).

Answer: True Difficulty: Medium Learning Objective 1: Describe the contingency leadership theories and what can be learned from them Section Reference: See House’s path-goal theory matches leadership styles with task and follower characteristics.

44. House believes that a leader cannot move back and forth among the four leadership styles: directive, supportive, achievement-oriented, and participative.

Answer: False Difficulty: Medium Learning Objective 1: Describe the contingency leadership theories and what can be learned from them.

Section Reference: See Leader-member exchange theory describes how leaders treat ingroup and out-group followers.

45. “Adding value” in House’s theory of leadership means contributing things that are missing and doing what won’t take care of itself.

Answer: True

Difficulty: Easy Learning Objective 1: Describe the contingency leadership theories and what can be learned from them.

Section Reference: The Vroom-Jago model describes a leader’s choice of alternative decision-making methods.

46. The Vroom–Jago model helps managers decide who should make the decision.

Answer: True Difficulty: Easy Learning Objective 1: Describe the contingency leadership theories and what can be learned from them.

Section Reference: The Vroom-Jago model describes a leader’s choice of alternative decision-making methods.

47. Charismatic leadership and transactional leadership are very nearly the same things, with both focused on creating enthusiasm and inspiration.

Answer: False Difficulty: Easy Learning Objective 1:Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive leadership, and servant leadership.

Section Reference: Interactive leadership emphasizes communication, listening, and participation.

48. Emotional intelligence is a key ingredient in the rise of exceptional leaders.

Answer: True Difficulty: Easy Learning Objective 1:Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive leadership, and servant leadership.

Section Reference: Interactive leadership emphasizes communication, listening, and participation.

49. While the styles may vary somewhat, research shows that men are more effective leaders than women.

Answer: False

Difficulty: Easy Learning Objective 1: Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive leadership, and servant leadership.

Section Reference: Moral leadership builds trust from a foundation of personal integrity.

50. While the interactive leadership style is most closely identified with female leader behaviors, both men and women can effectively utilize the style.

Answer: True Difficulty: Easy Learning Objective 1: Identify the major concepts of leadership.

Section Reference: Chapter Review

51. Moral leadership builds trust from a foundation of personal integrity.

Answer: True Difficulty: Medium Learning Objective 1:Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive leadership, and servant leadership Section Reference: Servant leadership is follower centered and empowering.

52. Integrity is the cornerstone of leadership.

Answer: True Difficulty: Easy Learning Objective 1:Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive leadership, and servant leadership Section Reference: Servant leadership is follower centered and empowering.

Question Type: Fill-in-the-Blank

53. __________ is the process of inspiring others to work hard to accomplish important tasks.

Answer: Leadership Difficulty: Easy Learning Objective 1: Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders use personal power to achieve influence.

54. The ability to get someone else to do what you want done, regardless of their inclination to do so, is called __________.

Answer: power Difficulty: Easy Learning Objective 1: Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders use personal power to achieve influence.

55. __________ is the capacity to influence through authority, gained by virtue of one’s status as a manager.

Answer: Legitimate power (position power) Difficulty: Easy Learning Objective 1: Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders use personal power to achieve influence.

56. A (n) __________ leader is one with high concern for task, low concern for people, and who tends to act in a unilateral command-and-control manner.

Answer: autocratic Section Reference: Fiedler’s contingency model matches leadership styles with situational differences.

Difficulty: Medium Learning Objective 1: Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

57. The LPC acronym in Fiedler’s model means __________.

Answer: least-preferred co-worker

Difficulty: Medium Learning Objective 1: Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive leadership, and servant leadership.

Section Servant leadership is follower centered and empowering.

58. Of House’s four leadership styles, the one focused on setting challenging goals, expecting high performance, and showing confidence is the __________ style.

Answer: achievement-oriented Difficulty: Medium Learning Objective 1: Describe the contingency leadership theories and what can be learned from them.

Section Reference: The Vroom-Jago model describes a leader’s choice of alternative decision-making methods.

59. Your text suggests that one of the easiest ways to spot the difference between a transactional and a transformational leader is to look at their __________ and note differences in the Difficultys of enthusiasm and loyalty that you see.

Answer: followers (employees or subordinates) Difficulty: Easy Learning Objective 1:Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive leadership, and servant leadership.

Section Reference: Interactive leadership emphasizes communication, listening, and participation.

60. __________ is an ability to understand the emotions in oneself and others and be able to use this understanding to handle relationships effectively.

Answer: Emotional intelligence Difficulty: Easy Learning Objective 1:Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive leadership, and servant leadership.

Section Reference: Interactive leadership emphasizes communication, listening, and participation.

61. There are __________ primary emotional intelligence competencies.

Answer: four Difficulty: Medium Learning Objective 1:Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive leadership, and servant leadership.

Section Reference: Interactive leadership emphasizes communication, listening, and participation.

62. __________ involves a commitment to serving others, helping others to fully develop their talents, and working together to benefit society.

Answer: Servant leadership Difficulty: Easy Learning Objective 1: Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive leadership, and servant leadership.

Section Reference: Servant leadership is follower centered and empowering.

Question Type: Essay

63. Why is it that both position power and personal power are required for effective leadership?

Answer: The essence is that the two types of power bases work in different ways.

Position power works mostly by compelling people to do things and lasts only so long as the compulsion is present. On the other hand, personal power works by getting people to accept the work and to do it because they want to. This latter motivation is one of commitment and is not dependent upon continued pressure from the leader. In the shortrun, position power can be very effective in getting things done immediately. However, for the long-run, a manager has to be able to count on subordinates doing things without constant supervision, so personal power has to be available.

Difficulty: Medium Learning Objective 1:Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Leaders use personal power to achieve influence.

64. Compare and contrast the Fiedler and House theories on leadership.

Answer: They are similar in that both are contingent approaches, meaning that they recognize that different approaches are needed at different times. They are different in that Fiedler believes that people are born with leader traits, while House believes that leadership is a matter of behaviors that can be learned.

Difficulty: Medium Learning Objective 1: Describe the contingency leadership theories and what can be learned from them.

Section Reference 1: |The Hersey-Blanchard situational leadership model matches leadership styles with the maturity of followers.

Section Reference 2: House’s path-goal theory matches leadership styles with task and follower characteristics.

Section Reference 3: The Vroom-Jago model describes a leader’s choice of alternative decision-making methods.

65. Identify and define the four leadership styles on Blake and Morton’s task-production leadership grid and their relationship (high or low) with respect to task concern and production concern.

Answer: The four leadership styles are autocratic, human relations, democratic and laissez-faire.

Autocratic leadership acts in a unilateral command and control manner. The autocratic leader holds onto control and delegates little. It is high task concern and low people concern style.

Human relations leadership emphasizes people over tasks. The leader is interpersonally engaging, caring about others and act in ways that builds harmony and good relationships. It is a low task concern and high people concern style.

Democratic leadership is a combination of autocratic leadership and human relations leadership and emphasizes tasks and people. It is a high task and high people style.

Laissez-faire leadership is hardly leadership at all in that there is little concern for either tasks or people. It is a low tasks and low people style.

Difficulty: Medium Learning Objective 1: Describe the foundations for effective leadership, including influence through position and personal power, vision, and traits and styles.

Section Reference: Fiedler’s contingency model matches leadership styles with situational differences.

66. What is emotional intelligence? List and define its four components.

Answer: Emotional intelligence is the ability to manage one’s emotions in social relationships. Its components are self awareness, social awareness, self management and relationship management.

Self awareness is the ability to understand your moods and emotions.

Social awareness is the ability to understand and empathize with the emotions of others.

Self management is the ability to control your emotions.

Relationship management is the ability to relate to others in a positive way.

Difficulty: Medium Learning Objective 1:Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive leadership, and servant leadership.

Section Reference: Interactive leadership emphasizes communication, listening, and participation.

67. Define and explain the difference between transactional and transformational management.

Answer: Transactional leadership directs the efforts of others through tasks, rewards and structures. Transformational leadership is inspirational and arouses extraordinary effort and performance. Transactional leadership is more task-oriented and more suited to mechanistic organizations. Transformational leadership is more people-oriented and more suited to organic organizations.

Difficulty: Easy Learning Objective 1: Describe the current issues and directions in leadership development, including transformational leadership, emotional intelligence, interactive leadership, and servant leadership.

Section Reference: Interactive leadership emphasizes communication, listening, and participation.

File: mod12, Chapter 12: Individual Behavior

Multiple Choice

1. The process through which people receive and interpret information from the environment is called __________. a) projection b) constructive stress c) perception d) reception Ans: c Page: See page 284 Level: Easy Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: How do perceptions influence individual behavior.

2. The perceptual distortion caused by assigning attributes commonly associated with a group to an individual is known as __________.* a) projection b) stereotyping c) halo effect d) selective perception Ans: b Page: See page 285 Level: Easy Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perceptual distortions can obscure individual differences.

3. The perceptual distortion caused by the use of a single characteristic or exposure to draw overall conclusions about an individual is known as __________.* a) projection b) stereotyping c) halo effect d) selective perception Ans: c * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Page: See page 285 Level: Easy Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perceptual distortions can obscure individual differences.

4. The perceptual distortion caused by the tendency to define problems from one’s own point of view is known as __________. a) projection b) stereotyping c) halo effect d) selective perception Ans: d Page: See page 285 Level: Easy Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perceptual distortions can obscure individual differences.

5. Consider the following example of how managers may misconstrue work behavior. If they see men in a discussion, they might think they are discussing a new deal; if it’s a group of women, they might perceive them as gossiping. This is an example of __________. a) stereotyping b) the halo effect c) selective perception d) projection Ans: a Page: See page 285 Level: Hard Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perceptual distortions can obscure individual differences.

6. The perceptual distortion caused by assigning personal attributes to other individuals is known as __________. a) projection b) stereotyping c) halo effect d) selective perception

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: a Page: See page 286 Level: Easy Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perceptual distortions can obscure individual differences.

7. The tendency to overestimate internal factors and underestimate external factors as influences on someone’s behavior is called __________. a) projection b) selective projection c) fundamental attribution error d) impression management Ans: c Page: See page 287 Level: Medium Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perception can cause attribution errors as we explain events and problems.

8. __________ underestimates internal factors and overestimates external factors as influences on someone’s behavior.* a) Projection b) Self-serving bias c) Fundamental attribution error d) Selective perception Ans: b Page: See page 287 Level: Medium Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perception can cause attribution errors as we explain events and problems.

9. The process of creating explanations for events is called __________. a) attribution b) self-awareness c) self-serving bias d) projection Ans: a Page: See page 287 Level: Medium * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perception can cause attribution errors as we explain events and problems.

10. __________ tries to create desired perceptions in the eyes of others. a) Self-serving bias b) Selective perception c) Impression management d) Projection Ans: c Page: See page 287 Level: Easy Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Impression management is a way of influencing how others perceive us.

11. When Juanita, the president of Baby Stuff LLC, addressed not only new employees at the monthly orientation meeting but also their husbands and wives, she was practicing __________.* a) speaking b) projection management c) self-serving bias d) impression management Ans: d Page: See page 287 Level: Medium Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Impression management is a way of influencing how others perceive us.

12. The profile of characteristics making a person unique from others is called __________. a) emotional stability b) personality c) locus of control d) extroversion Ans: b Page: See page 290 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: The Big Five personality traits describe work-related individual differences.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

13. Which of the following is NOT a Big Five personality trait? a) Agreeableness b) Emotional stability c) Intelligence d) Extraversion Ans: c Page: See page 291 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: The Big Five personality traits describe work-related individual differences.

14. A(n) __________ person is dependable, organized, and focused on getting things done. a) extraverted b) agreeable c) conscientious d) emotionally stable Ans: c Page: See page 291 Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: The Big Five personality traits describe work-related individual differences.

15. The extent to which one believes that what happens is within their control is called __________.* a) self confidence b) emotional stability c) extroversion d) locus of control Ans: d Page: See page 292 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Self-Monitoring and other personality traits influence work behavior.

16. A person who believes that, for the most part, he or she is responsible for what happens has a(n) __________ locus of control. a) internal * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

b) external c) self-monitoring d) standard Ans: a Page: See page 292 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Self-Monitoring and other personality traits influence work behavior.

17. A person who believes that, for the most part, he or she is not responsible for what happens has a(n)__________ locus of control. a) internal b) external c) self-monitoring d) standard Ans: b Page: See page 292 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Self-Monitoring and other personality traits influence work behavior.

18. Alex is having difficulty at work and he believes that the problem is with his work environment even though all others are doing well. Alex, most likely, has a(n) __________ locus of control. a) internal b) external c) self-monitoring d) standard Ans: b Page: See page 292 Level: Hard Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Self-Monitoring and other personality traits influence work behavior.

19. The degree to which a person defers to authority and accepts status differences is called __________.* a) machiavellianism * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

b) authoritarianism c) locus of control d) personality Ans: b Page: See page 292 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Self-Monitoring and other personality traits influence work behavior.

20. __________ is the degree to which someone uses power manipulatively. a) Authoritarianism b) Controlism c) Machiavellianism d) Locus of control Ans: c Page: See page 292 Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Self-Monitoring and other personality traits influence work behavior.

21. __________ is a physical and mental exhaustion from work stress.* a) Job burnout b) Constructive stress c) Self bias d) Destructive attribute Ans: a Page: See page 294 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

22. Among high-Machs, all of the following would be expected EXCEPT: a) emotional detachment. b) manipulation. c) exploitation of others. d) concern for the means (how it is done) over the end (the goal).

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: d Page: See page 292 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Self-Monitoring and other personality traits influence work behavior.

23. According to the Myers-Briggs Type Indicator, a type ESTJ person would most likely be: a) analytical, strategic, forceful, and quick to take charge. b) practical, decisive, logical, and quick to dig in. c) insightful, free thinking, and determined. d) conscientious, considerate, and helpful Ans: b Page: See page 292 Level: Hard Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: The Myers-Briggs Type Indicator is a popular approach to personality assessment.

24. All of the following would be characteristic of true high self-monitors EXCEPT: a) a willingness and ability to change. b) a desire to learn. c) comfort with feedback. d) predictability.

Ans: d Page: See pages 292-293 Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Self-Monitoring and other personality traits influence work behavior.

25. __________ is a state of tension experienced by individuals facing extraordinary demands, constraints, or opportunities. a) Fear b) Stress c) Self satisfaction d) Joy Ans: b Page: See page 293 Level: Easy * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: People with Type A personalities tend to stress themselves.

26. A(n) __________ personality is oriented toward extreme achievement, impatience, and perfectionism. a) self-monitoring b) agreeable c) Type A d) Type B Ans: c Page: See page 293 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: People with Type A personalities tend to stress themselves.

27. The degree to which someone is able to adjust his or her behavior in response to external factors is called __________. a) self-awareness b) selfishness c) locus of control d) self-monitoring Ans: d Page: See page 292 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Self-Monitoring and other personality traits influence work behavior.

28. Stress at work may cause: a) lower performance. b) reduced job satisfaction. c) personal problems. d) all of the above.

Ans: d Page: See page 294 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

29. Mary has had four exams this week. In addition, she has been working overtime at her manager’s request. She thinks she did poorly on the last exam and is afraid she will fail in this one. This is an example of __________.* a) multiple personalities b) Type A personality c) destructive stress d) personal wellness Ans: c Page: See page 294 Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

30. Job burnout and workplace rage can be the result of long term __________. a) Type A personality b) constructive stress c) personal wellness d) destructive stress Ans: d Page: See pages 294 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

31. Sally tends to procrastinate early in a project’s development, but she always comes through when the pressure is on. For Sally, the pressure is a form of __________. a) Type A personality b) constructive stress c) personal wellness d) destructive stress Ans: b Page: See pages 294 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

32. Strategies to reduce the negative effects of workplace stress include all of the following EXCEPT: a) identifying and minimizing stressors. b) changing the temporary work schedule. c) reducing performance expectations. d) shortening deadlines.

Ans: d Page: See page 295 Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

33. __________ is aggressive behavior toward co-workers or the work setting. a) Job burnout b) Workplace rage c) Self bias d) Destructive stress Ans: b Page: See page 294 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

34. __________ is a positive influence on effort, creativity, and diligence in work. a) Job burnout b) Constructive stress c) Self bias d) Destructive stress Ans: b Page: See page 294 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

35. A predisposition to act in a certain way is called __________. a) bias b) cognitive dissonance * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

c) attitude d) manipulation Ans: c Page: See page 297 Level: Easy Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Attitudes predispose people to act in certain ways.

36. The __________ component of attitude reflects beliefs and values.* a) dissonance b) cognitive c) affective d) behavior Ans: b Page: See page 297 Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Attitudes predispose people to act in certain ways.

37. The __________ component of attitude reflects a specific feeling. a) dissonance b) cognitive c) affective d) behavior Ans: c Page: See page 297 Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Attitudes predispose people to act in certain ways.

38. The __________ component of attitude reflects an intention to behave consistently with the belief and feeling. a) dissonance * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

b) cognitive c) affective d) behavior Ans: d Page: See page 297 Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Attitudes predispose people to act in certain ways.

39. The discomfort that a person feels when attitude and behavior are inconsistent is called __________.* a) attitude b) self serving bias c) cognitive dissonance d) selective perception Ans: c Page: See page 298 Level: Easy Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Attitudes predispose people to act in certain ways.

40. The degree to which a person feels positive about a work experience is called __________.* a) cognitive dissonance b) wellness c) attitude d) job satisfaction Ans: d Page: See page 298 Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Job satisfaction is a positive attitude toward one’s job and work experience.

41. By which of the following does research indicate that job satisfaction is impacted? a) The job itself b) The quality of supervision * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

c) Work conditions d) All of the above Ans: d Page: See page 298 Level: Easy Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Job satisfaction is a positive attitude toward one’s job and work experience.

42. The reason(s) that managers should be concerned about job satisfaction include(s): a) the decrease in turnover. b) the increase in the bottom line. c) the decrease in absenteeism rates. d) all of the above.

Ans: d Page: See page 299 Level: Easy Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Job satisfaction influences work behavior.

43. Organizational __________ behaviors are the extras people do to go the additional mile in their work. a) planned b) directed c) resource d) citizenship Ans: d Page: See page 299 Level: Easy Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Job satisfaction influences work behavior.

44. Employee __________ is a strong sense of belonging and connection with one’s work and employer.* a) citizenship b) satisfaction * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

c) engagement d) merit Ans: c Page: See page 299 Level: Easy Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Job satisfaction influences work behavior.

45. The ability to understand emotions and manage relationships is called __________.* a) Type A behavior b) emotional intelligence c) emotional stability d) self reliance Ans: b Page: See page 300 Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Emotions and moods are positive and negative states of mind that influence behavior.

46. Generalized positive and negative feelings or states of mind are called __________. a) moods b) agreeableness c) conscientiousness d) emotional stability Ans: a Page: See page 301 Level: Easy Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Emotions and moods are positive and negative states of mind that influence behavior.

47. __________ are strong feelings directed toward someone or something.* a) Perceptions b) Projections * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

c) Emotions d) All of the above Ans: c Page: See page 300 Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Emotions and moods are positive and negative states of mind that influence behavior.

48. The spillover of one’s positive or negative moods onto others is called mood __________.* a) perception b) projection c) emotions d) contagion

Ans: d Page: See page 301 Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Emotions and moods are positive and negative states of mind that influence behavior.

True/False

49. It is possible for two people to witness the same event, and for them to have different perceptions as to its cause(s) and consequences.

Ans: True Page: See page 284 Level: Easy Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: How do perceptions influence individual behavior?

50. Assigning attributes commonly associated with a group to an individual is called the halo effect. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: False Page: See page 285 Level: Easy Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perceptual distortions can obscure individual differences.

51. The pooling of ideas and perceptions of many people may make it harder for selective perception to create problems.

Ans: True Page: See page 285 Level: Medium Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perceptual distortions can obscure individual differences.

52. According to research, unfortunately, a person open to experience is narrow-minded and resists change.

Ans: False Page: See page 291 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: The Big Five personality traits describe work-related individual differences.

53. The ability to use power to manipulate others is an indication that the individual is a highMach.

Ans: True Page: See page 292 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Self-monitoring and other personality traits influence work behavior.

54. High self-monitors are able to adjust behavior in response to external factors.

Ans: True Page: See page 292 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Self-monitoring and other personality traits influence work behavior. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

55. Type A personalities would likely make good leaders.

Ans: False Page: See page 293 Level: Hard Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: People with Type A personalities tend to stress themselves.

56. Type A personalities tend to bring stress on themselves.

Ans: True Page: See page 293 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: People with Type A personalities tend to stress themselves.

57. All stress is a detrimental consequence of the workplace, one that should be eliminated.

Ans: False Page: See page 294 Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

58. The Big Five personality traits can actually be used to better select new employees from a pool of candidates.

Ans: True Page: See pages 290-291 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: The Big Five personality traits describe work-related individual differences.

59. A person with a high external locus of control is likely to blame others when things go wrong.

Ans: True Page: See page 292 * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Self-monitoring and other personality traits influence work behavior.

60. Authoritarianism is the same as Machiavellianism.

Ans: False Page: See page 292 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Self-monitoring and other personality traits influence work behavior.

61. Job burnout is aggressive behavior toward co-workers or the work setting.

Ans: False Page: See page 294 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: People with Type A personalities tend to stress themselves.

62. A person with a Type A personality may try to do several things at once, feel guilty when relaxing, and use nervous gestures such as clenched fists.

Ans: True Page: See page 294 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: People with Type A personalities tend to stress themselves.

63. Fortunately, attitudes always predict behavior.

Ans: False Page: See page 297 Level: Easy Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Attitudes predispose people to act in certain ways.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

64. The best way to understand the satisfaction and performance relationship is with satisfaction as a cause of high performance.

Ans: False Page: See page 300 Level: Easy Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Job satisfaction has a complex relationship with job performance.

65. Emotional intelligence is a measure of an individual’s IQ. Ans: False Page: See page 300 Level: Easy Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Emotions and moods are positive and negative states of mind that influence behavior.

Fill-in-the-Blank

66. __________ refers to the desire to succeed and reach for high goals.

Ans: Ambition Page: See page 283 Level: Easy Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Management Live.

67. __________ is the process through which people receive and interpret data from the environment around them.

Ans: Perception Page: See page 284 Level: Easy Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: How do perceptions influence individual behavior?

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

68. The tendency to overestimate the influence of internal causes and underestimate the influence of external causes of behavior is known as the __________.

Ans: fundamental attribution error Page: See page 287 Level: Medium Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perception can cause attribution errors as we explain events and problems.

69. __________ describes the combination or overall profile of characteristics that makes each of us unique.

Ans: Personality Page: See page 290 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: The Big Five personality traits describe work-related individual differences.

70. A person who is __________ is secure, calm, steady, and self-confident.

Ans: emotionally stable Page: See page 290 Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: The Big Five personality traits describe work-related individual differences.

71. A person who is __________ is trusting, courteous, and helpful, getting along well with others.

Ans: agreeable Page: See page 291 Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: The Big Five personality traits describe work-related individual differences.

72. __________ is the trait governing the degree to which a person defers to those in charge and accepts status differences.

Ans: Authoritarianism * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Page: See page 292 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Self-monitoring and other personality traits influence work behavior.

73. The state of tension that people feel when facing extraordinary demands, constraints, or opportunities is called __________.

Ans: stress Page: See page 293 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: People with Type A personalities tend to stress themselves.

74. Overly aggressive behavior toward fellow workers, customers, or management can be a sign of __________.

Ans: workplace rage Page: See page 294 Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

75. Employer sponsored efforts to encourage exercise, better nutrition, and the end of destructive habits related to smoking or alcohol are known as __________.

Ans: wellness programs Page: See page 295 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

76. __________ is the pursuit of a personal health promotion program.

Ans: Personal wellness Page: See page 295 Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

77. The discomfort felt when our behaviors are inconsistent with our attitudes is known as __________.

Ans: cognitive dissonance Page: See page 298 Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Attitudes predispose people to act in certain ways.

78. __________ involves behaviors that go beyond the assigned job duties to benefit the organization as a whole.

Ans: Organizational citizenship Page: See page 299 Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Job satisfaction influences work behavior.

79. __________ behaviors include absenteeism and turnover.

Ans: Withdrawal Page: See page 299 Level: Easy Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Job satisfaction influences work behavior.

Essay

80. Define locus of control in terms of its two components.

Ans: Locus of control is the extent to which one believes that what happens is within one’s control. Individuals tend toward either an internal or external locus of control. Those with an internal locus believe that they are in control of what happens, while those with an external locus tend to blame external events for what happens.

Page: See page 292 * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Easy Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Self-monitoring and other personality traits influence work behavior.

81. Define job satisfaction and its relation to job performance.

Ans: Job satisfaction is the degree to which an individual feels positive about a job and work experience. Although many would like to believe that there is a strong correlation between job satisfaction and job performance, there is no clear scientific evidence that this is true.

Page: See pages 298-300 Level: Medium Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Job satisfaction is a positive attitude toward one’s job and work experiences.

Section Reference: Job satisfaction influences work behavior.

Section Reference: Job satisfaction has a complex relationship with job performance.

82. Define stress, constructive stress, destructive stress and how to manage it.

Ans: Stress is a state of tension experienced by individuals facing extraordinary demands, constraints or opportunities. Stress can be constructive or destructive. Constructive stress has a positive influence on effort, creativity, and diligence in work. Destructive stress is a negative influence on one’s performance. Job burnout and workplace rage are two negative conditions resulting from destructive stress. Job burnout is physical and mental exhaustion. Workplace rage is aggressive behavior towards others in the workplace. Personal wellness, exercising, and weight control can help in reducing the negative effects of destructive stress.

Page: See pages 294-295 Level: Medium Learning Objective 2: Understand how personalities influence individual behavior.

Section Reference: Stress has consequences for work performance and personal health.

83. Define perception and describe the four types of perception distortions.

Ans: Perception is the process through which people receive and interpret information from the environment. The four types of perception distortion are stereotype, a halo effect, selective perception, and projection.

A stereotype assigns attributes commonly associated with a group to an individual.

A halo effect is the use of a single characteristic or exposure to draw overall conclusions about an individual.

Selective perception is the tendency to define problems from one’s own point of view. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Projection assigns personal attributes to other individuals.

Page: See pages 285-286 Level: Medium Learning Objective 1: Understand how perceptions influence individual behavior.

Section Reference: Perceptual distortions can obscure individual differences.

84. Define attitude, its three components and their relationship to cognitive dissonance.

Ans: Attitude is a predisposition to act in a certain way. The three components of attitude are cognitive, affective, and behavior. The cognitive component reflects a belief or value. The affective component reflects a specific feeling. The behavior component reflects an intention to behave consistently with the belief and feeling. Cognitive dissonance, an uncomfortable feeling, results when attitude and behavior are inconsistent with each other.

Page: See pages 297-298 Level: Easy Learning Objective 3: Understand how attitudes, emotions, and moods influence individual behavior.

Section Reference: Attitudes predispose people to act in certain ways.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

File: mod13, Chapter 13: Motivation

Multiple Choice

1. Internal forces within a person that account for the level, direction, and persistence of effort at work (is) are called __________. a) needs b) satisfier (motivating) c) motivation d) hygiene factors Ans: c Page: See page 308 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

2. A __________ is an unfulfilled physiological or psychological desire. a) motivator b) satisfier c) hygiene factor d) need Ans: d Page: See page 308 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

3. In Maslow’s hierarchy of needs theory, __________ states that a satisfied need is NOT a motivator of behavior.* a) progression b) existence c) frustration-regression d) deficit Ans: d Page: See page 308 * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

4. In Maslow’s hierarchy of needs theory, __________ states that people try to satisfy lower level needs first, then move on to the next higher level. a) progression b) existence c) frustration-regression d) deficit Ans: a Page: See page 308 Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

5. At what level does Maslow’s progression principle stop? a) Esteem b) Safety c) Self-actualization d) Social Ans: c Page: See page 309 Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

6. Maslow’s lower-order needs translate to which Alderfer ERG need category(ies)?* a) Growth needs b) Existence needs c) Relationship needs d) Growth, existence, and relatedness needs Ans: d Page: See page 309 Level: Hard Learning Objective 1: Describe how human needs influence motivation to work. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

7. What is the highest level of need in Maslow’s hierarchy of needs? a) Esteem b) Self-actualization c) Social d) Safety Ans: b Page: See page 309 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

8. What is the lowest level of need in Maslow’s hierarchy of needs? a) Esteem b) Physiological c) Social d) Safety Ans: b Page: See page 309 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

9. The lower order of needs in Maslow’s hierarchy of needs include physiological, safety, and __________. a) esteem b) self-actualization c) shelter d) social Ans: d Page: See page 309 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

10. The higher order of needs in Maslow’s hierarchy of needs include self-actualization and __________. a) esteem b) physiological c) shelter d) social Ans: a Page: See page 309 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

11. Appropriate working conditions, job security, and base compensation and benefits are all examples of __________ needs. a) safety b) physiological c) shelter d) social Ans: a Page: See page 309 Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

12. According to ERG theory, the idea that a lower-level need reactivates when we are unable to satisfy a higher-level need is called the __________.* a) deficit principle b) frustration-regression principle c) progression principle d) law of effect e) law of valence Ans: b Page: See page 310 Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Alderfer’s ERG theory deals with existence, relatedness, and growth needs.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

13. All of the following would support a worker’s esteem needs EXCEPT: a) job security. b) responsibility for an important job. c) promotion to a higher status job. d) praise from the boss.

Ans: a Page: See page 309 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

14. What are the two factors in Herzberg’s two-factor theory? a) Satisfier / achievement b) Achievement / hygiene c) Hygiene / satisfier d) Recognition / satisfier Ans: c Page: See page 312 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

15. According to Herzberg, a __________ is found in the job context such as working conditions, organizational policies, and salary. a) satisfier factor b) need c) principle d) hygiene factor Ans: d Page: See page 312 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

16. According to Herzberg, a __________ is found in job content such as a sense of achievement, recognition, responsibility, advancement, or personal growth. a) need * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

b) satisfier factor c) desire d) hygiene factor Ans: b Page: See page 312 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

17. According to Herzberg, __________ influence job dissatisfaction. a) motivating factors b) needs c) satisfier factors d) hygiene factors Ans: d Page: See page 312 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

18. Which of the following is NOT a satisfier factor?* a) Recognition b) Salary c) The work itself d) Achievement Ans: b Page: See page 312 Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

19. Herzberg believed that motivation and higher performance could be achieved by improving the content of a job. He called this job __________. a) hunting b) design c) manipulation d) enrichment * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: d Page: See page 313 Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

20. The three needs in McClelland’s Acquired Needs Theory are the need for achievement, power, and __________.* a) esteem b) safety c) self actualization d) affiliation Ans: d Page: See page 310 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation.

21. According to McClelland’s Acquired Needs Theory, the need for __________ is the desire to do something better, to solve problems, or to master complex tasks. a) power b) achievement c) recognition d) affiliation Ans: b Page: See page 310 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation.

22. According to McClelland’s Acquired Needs Theory, the need for __________ is the desire to control, influence, or be responsible for other people. a) power b) achievement c) recognition * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

d) affiliation Ans: a Page: See page 310 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation.

23. According to McClelland’s Acquired Needs Theory, the need for __________ is the desire to establish and maintain good relations with people. a) power b) achievement c) recognition d) affiliation Ans: d Page: See page 310 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation.

24. According to McClelland’s Acquired Needs Theory, the need to do something better or more efficiently is __________. a) equity b) power c) achievement d) affiliation Ans: c Page: See pages 310 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation.

25. McClelland’s work also demonstrated that leaders tend to have high needs for __________.* a) equity b) achievement * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

c) personal power d) social power Ans: d Page: See page 311 Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation.

26. The process of allocating specific work tasks to individuals and groups is called job__________. a) content b) design c) enrichment d) enlargement Ans: b Page: See page 313 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: The core characteristics model integrates motivation and job design.

27. The process of increasing job content by adding work planning and evaluating duties normally performed by the supervisor is called job __________. a) content b) design c) enrichment d) identity Ans: c Page: See page 313 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: The core characteristics model integrates motivation and job design.

28. The degree to which the job has a substantial impact on the lives or work of other people elsewhere in the organization or in the external environment is called __________. a) autonomy b) task significance * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

c) task identity d) skill variety Ans: b Page: See page 314 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: The core characteristics model integrates motivation and job design.

29. The degree to which the job requires completion of a “whole” and identifiable piece of work, one that involves doing a job from beginning to end with a visible outcome is called __________. a) autonomy b) task significance c) task identity d) skill variety Ans: c Page: See page 314 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: The core characteristics model integrates motivation and job design.

30. The basis of Adam’s Equity Theory is:* a) equal pay for equal work. b) the perceptions that managers have of workers. c) the social comparisons of fairness by the workers. d) meeting the demands of the law.

Ans: c Page: See page 316 Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Equity theory explains how social comparisons motivate individual behavior.

31. Research indicates that as a result of perceived positive inequity, a worker might be expected to produce any of the following behaviors EXCEPT: a) increasing the quantity of work. b) improving the quality of work. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

c) reducing the current work effort. d) taking on more difficult assignments.

Ans: c Page: See page 317 Level: Easy Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Equity theory explains how social comparisons motivate individual behavior.

32. Vroom’s Expectancy Theory’s equation is, __________ = Expectancy  Instrumentality  Valence.* a) Outcome b) Results c) Motivation d) Goals Ans: c Page: See page 318 Level: Easy Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy theory considers Motivation=Expectancy x Instrumentality x Valence.

33. In Vroom’s theory, the effort-performance link is the belief that putting in the effort will lead to the desired level of performance. This is called __________. a) valence b) expectancy c) instrumentality d) achievement Ans: b Page: See page 318 Level: Easy Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy theory considers Motivation=Expectancy x Instrumentality x Valence.

34. In Vroom’s Expectancy Theory, __________ is a person’s belief that various outcomes will occur as a result of task performance. a) expectancy * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

b) valence c) instrumentality d) achievement Ans: c Page: See page 318 Level: Easy Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy theory considers Motivation=Expectancy x Instrumentality x Valence.

35. In Vroom’s Expectancy Theory, __________ is the value a person assigns to work-related outcomes.* a) expectancy b) valence c) instrumentality d) achievement Ans: b Page: See page 318 Level: Easy Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy theory considers Motivation=Expectancy x Instrumentality x Valence.

36. To maximize expectancy in Vroom’s Expectancy Theory, a manager should:* a) clarify performance goals. b) demonstrate what rewards are contingent on performance. c) identify individual needs. d) do all of the above.

Ans: a Page: See page 319 Level: Hard Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy theory considers Motivation=Expectancy x Instrumentality x Valence.

37. Locke’s goal setting theory suggests that __________ goals can be motivating factors, if they are the right goals and they are set in the right way.* * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

a) easy b) equity c) valence d) task Ans: d Page: See page 320 Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Goal-setting theory shows that well-chosen and well-set goals can be motivating.

38. MBO (management by objectives) is most closely related to __________ theory of motivation. a) Herzberg’s b) Skinner’s c) Locke’s d) Maslow’s Ans: c Page: See page 321 Level: Hard Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Goal-setting theory shows that well-chosen and well-set goals can be motivating.

39. When implementing goal-setting theory, all of the following should be done EXCEPT:* a) setting specific goals. b) setting relatively easy goals. c) building commitment to goals. d) providing feedback along the way.

Ans: b Page: See page 320 Level: Easy Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Goal-setting theory shows that well-chosen and well-set goals can be motivating.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

40. Thorndike’s law of __________ states that behavior followed by pleasant consequences is likely to be repeated; behavior followed by unpleasant consequences is not. a) effect b) behavior c) outcomes d) expectancy Ans: a Page: See page 323 Level: Easy Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

41. B.F. Skinner’s concept of __________ is the control of behavior by manipulating its consequences. a) expectancy b) equity c) acquired needs d) operant conditioning Ans: d Page: See page 323 Level: Easy Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

42. According to Skinner, __________ strengthens a behavior by making a desirable consequence contingent on its occurrence. a) negative reinforcement b) punishment c) positive reinforcement d) extinction Ans: c Page: See page 324 Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

43. According to Skinner, __________ strengthens a behavior by making the avoidance of an undesirable consequence contingent on its occurrence. a) negative reinforcement b) punishment c) positive reinforcement d) extinction Ans: a Page: See page 324 Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

44. According to Skinner, __________ discourages a behavior by making an unpleasant consequence contingent on its occurrence. a) negative reinforcement b) punishment c) positive reinforcement d) extinction Ans: b Page: See page 324 Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

45. According to Skinner, __________ discourages a behavior by making the removal of a desirable consequence contingent on its occurrence. a) negative reinforcement b) punishment c) positive reinforcement d) extinction Ans: d Page: See page 324 Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

46. A manager who nags an employee everyday does not nag when the employee completes a project on time. This is an example of __________.* a) extinction b) positive reinforcement c) punishment d) negative reinforcement Ans: d Page: See page 324 Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

True/False

47. One key difference between Maslow’s Hierarchy of Needs Theory and Alderfer’s ERG Theory is that Maslow saw need progression as moving from bottom to top, while Alderfer believed that one bounced around in the hierarchy due to frustrations in obtaining higher order needs.

Ans: True Page: See pages 308-310 Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

Section Reference: Alderfer’s ERG theory deals with existence, relatedness, and growth needs.

48. Allowing workers to participate in making important decisions is one way to provide for their self-actualization needs.

Ans: True Page: See page 309 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

49. Maslow’s hierarchy of needs better explains human behavior than Alderfer’s ERG theory.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: False Page: See page 310 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

50. Herzberg’s work, contrary to most motivational approaches today, suggests working on job content instead of trying to spice up the job context.

Ans: True Page: See page 313 Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

51. The hygiene factors in the Herzberg model are associated with the lower order needs of Maslow and Alderfer.

Ans: True Page: See page 312 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

52. According to Herzberg’s two factor theory, salary is a satisfier.

Ans: False Page: See page 312 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

53. The core characteristics model approaches job design with a focus on eight “core” job characteristics.

Ans: False Page: See page 313 Level: Easy * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: The core characteristics model integrates motivation and job design.

54. The need for personal power is what drives successful leaders.

Ans: False Page: See page 311 Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation.

55. McClelland identified acquired needs as the need for power, achievement, and selfactualization.

Ans: False Page: See page 310 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation.

56. Job design increases job content by adding work planning and evaluating duties normally performed by a supervisor.

Ans: False Page: See page 313 Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: The core characteristics model integrates motivation and job design.

57. If employees feel that they are not being treated fairly, they will adjust their behavior accordingly. This is the basis of equity theory.

Ans: True Page: See page 316 Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Equity theory explains how social comparisons motivate individual behavior.

58. Vroom’s Expectancy Theory is based on the equation, Motivation = Expectancy  Instrumentality  Valence.

Ans: True Page: See page 318 Level: Easy Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy theory considers Motivation=Expectancy x Instrumentality x Valence.

59. The key to applying goal-setting theory and management by objectives is for the employees to set their own goals.

Ans: False Page: See page 321 Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Goal-setting theory shows that well-chosen and well-set goals can be motivating.

60. To maximize valence, managers need to understand individual needs and try to tie work outcomes to important sources of need satisfaction.

Ans: True Page: See page 319 Level: Easy Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy theory considers Motivation=Expectancy x Instrumentality x Valence.

61. Skinner’s operant conditioning is based on manipulating the consequences of individual behavior.

Ans: True Page: See page 323 Level: Medium * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

62. Skinner’s reinforcement theory defines negative reinforcement as the removal of a negative factor.

Ans: True Page: See page 324 Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

63. Negative reinforcement decreases the frequency of or eliminates an undesirable behavior.

Ans: False Page: See page 324 Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

64. The “law of effect” states that people will repeat behaviors that have pleasant outcomes and will avoid behaviors that have unpleasant outcomes.

Ans: True Page: See page 323 Level: Easy Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

Fill-in-the-Blank

65. __________ refers to aspects of the work experience that create a sense of connection to the job and organization.

Ans: Engagement Page: See page 307 * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Management Live.

66. __________ is the force that determines the direction, level, and persistence of individual effort.

Ans: Motivation Page: See page 308 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

67. Unfulfilled desires that stimulate people to behave in ways that will satisfy these desires are called __________.

Ans: needs Page: See page 308 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

68. Alderfer’s ERG model condenses __________ five levels of need into three levels.

Ans: Maslow’s Page: See page 309 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Alderfer’s ERG theory deals with existence, relatedness, and growth needs.

69. The need for __________, as described by McClelland, involves the desire to control, influence, or be responsible for other people.

Ans: power Page: See page 310 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: McClelland identified acquired needs for achievement, power, and affiliation. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

70. Herzberg suggests that one way to improve job content is to build more opportunities into jobs. This process is known as __________.

Ans: job enrichment Page: See page 313 Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

71. The degree to which a job requires a variety of different activities to carry out the work is referred to as __________.

Ans: skill variety Page: See page 314 Level: Easy Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: The core characteristics model integrates motivation and job design.

72. In Equity Theory, it is perceived __________ that motivate our behaviors.

Ans: inequities Page: See page 316 Level: Easy Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Equity theory explains how social comparisons motivate individual behavior.

73. In Expectancy Theory, the value that an individual places upon a work-related outcome or reward is called __________.

Ans: valence Page: See page 318 Level: Easy Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy theory considers Motivation=Expectancy x Instrumentality x Valence.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

74. Locke’s basic premise in goal-setting theory is that it works only if the __________ goals are set in the __________ way.

Ans: specific, right Page: See page 320 Level: Hard Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Goal-setting theory shows that well-chosen and well-set goals can be motivating.

75. In order for goals to create the most motivation, Locke recommends worker __________ in setting the goals.

Ans: participation Page: See page 321 Level: Easy Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Goal-setting theory shows that well-chosen and well-set goals can be motivating.

76. The control of behavior (in Skinner’s reinforcement theory) by manipulating its consequences is called __________.

Ans: operant conditioning Page: See page 323 Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

77. __________ is positive reinforcement of successive approximations to the desired behavior.

Ans: Shaping Page: See page 325 Level: Easy Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Positive reinforcement connects desirable behavior with pleasant consequences.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Essay

78. How might the tactics of operant conditioning be considered unethical?

Ans: It involves tactics to elicit desired behaviors which can be seen as manipulative. In this light, it can be argued that such tactics do not respect the workers as individuals, that they infringe upon worker freedoms, and that they fail to recognize more noble ways to motivate people beyond external rewards.

Page: See page 323 Level: Medium Learning Objective 3: Understand how reinforcement influences motivation to work.

Section Reference: Operant conditioning influences behavior by controlling its consequences.

79. Explain Maslow’s hierarchy of needs and define each of the needs in the hierarchy.

Ans: Maslow believed that individuals had a hierarchy of needs. As the lower level needs were satisfied, they would strive to satisfy the next level of need. He called satisfying the next level of need as the progression principle. The five needs in Maslow’s hierarchy are physiological, safety, social, esteem, and self-actualization.

Physiological needs are the need for food, water and shelter.

Safety needs include being free from harm.

Social needs are those necessary for companionship such as family and friends.

Esteem needs are those that relate to having the approval of others.

Self-Actualization needs include the need for education and personal growth.

These same needs can also be related to the work environment.

Page: See pages 308-309 Level: Hard Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Maslow described a hierarchy of needs topped by self-actualization.

80. Define and explain Herzberg’s two factor theory. Include examples of the two factors in the theory.

Ans: Herzberg believed that people could be motivated but, before they could be motivated, there were other conditions that needed to be met. He called those things that could motivate people motivating factors. He called those things necessary for motivation to occur hygiene factors.

Hygiene factors included salary, working conditions, and benefits. His premise was that if people were unhappy with the hygiene factors, it was unlikely that they could or would be motivated. In * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

essence, he was saying that to be motivated, you had to be healthy, thus the name hygiene factors.

Motivators included achievement, recognition, and the work itself. He believed that the desire for these motivators was insatiable and therefore long lasting.

Page: See page 312 Level: Medium Learning Objective 1: Describe how human needs influence motivation to work.

Section Reference: Herzberg’s two-factor theory focuses on higher-order need satisfaction.

81. What is the Vroom’s Expectancy Theory formula? Describe each of the components of the equation.

Ans: The formula is Motivation = Expectancy  Instrumentality  Valence where, Expectancy is a person’s belief that working hard will result in high task performance; Instrumentality is a person’s belief that various outcomes will occur as a result of task performance; and Valence is the value a person assigns to work related outcomes.

Page: See page 318 Level: Medium Learning Objective 2: Identify how thoughts and decisions affect motivation to work.

Section Reference: Expectancy theory considers Motivation=Expectancy x Instrumentality x Valence.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

File: mod14, Chapter 14: Teams and Teamwork

Multiple Choice

1. A collection of people with complementary skills who regularly interact to pursue common goals is called a(n) __________. a) formal group b) informal group c) team d) committee Ans: c Page: See page 332 Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Teams offer synergy and other benefits to organizations and their members.

2. __________ is the creation of a whole that is greater than the sum of its parts.* a) Dysfunction b) Effort c) Synergy d) Work Ans: c Page: See page 332 Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Teams offer synergy and other benefits to organizations and their members.

3. The process of people actively working together to accomplish common goals is called __________. a) delegation b) teamwork c) job sharing d) cross fertilization Ans: b Page: See page 332 * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Teams offer synergy and other benefits to organizations and their members.

4. Teams that continually perform at very high levels are likely to do so because they __________. a) put in more time on the job b) have more members c) are paid more d) have synergy Ans: d Page: See page 332 Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Teams offer synergy and other benefits to organizations and their members.

5. __________ is the tendency of some people to avoid responsibility by free-riding in groups.* a) Laziness b) Redundancy c) Social loafing d) Work avoidance Ans: c Page: See page 333 Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Teams often suffer from common performance problems.

6. Sue was assigned to do a team project as part of her college management course. However, she quickly learned that if she did not participate, the other team members would pick up her share. Sue is guilty of __________. a) social loafing b) malpractice c) team depression d) groupthink Ans: a Page: See page 333 Level: Easy * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Teams often suffer from common performance problems.

7. A group that is officially designated for a specific organizational purpose is called a(n) __________. a) informal group b) virtual network c) unofficial team d) formal team Ans: d Page: See page 334 Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations are networks of formal teams and informal groups.

8. Departments, teams, work units, and divisions are all __________.* a) informal groups b) virtual networks c) unofficial teams d) formal teams Ans: d Page: See page 334 Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations are networks of formal teams and informal groups.

9. An unofficial group that emerges from spontaneous relationships among people with common interests is called a(n) __________. a) informal group b) virtual network c) unofficial team d) formal team Ans: a Page: See page 335 Level: Easy Learning Objective 1: Understand the importance of teams and teamwork. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Organizations are networks of formal teams and informal groups.

10. Interest, friendship, and support groups are all __________. a) informal groups b) virtual networks c) unofficial teams d) formal groups Ans: a Page: See page 335 Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations are networks of formal teams and informal groups.

11. A group that is brought together from outside of their daily job assignments to work in a small team for a specific purpose on a continuing basis is called a(n) __________. a) project team b) committee c) informal group d) support group Ans: b Page: See page 335 Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations use committees, task forces, and cross-functional teams.

12. Good team managers, or leaders, can play all of the following roles EXCEPT: a) dictator. b) network facilitator. c) helpful participant. d) external coach.

Ans: a Page: See page 335 Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations are networks of formal teams and informal groups.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

13. A team is brought together for a specific purpose and disbands when the task is completed.

This team is called a(n) __________.* a) project team b) committee c) informal team d) support team Ans: a Page: See page 335 Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations use committees, task forces, and cross-functional teams.

14. A(n) __________ operates with members who come from different functional units, of an organization, to work on a specific task.* a) informal group b) interest group c) cross-functional team d) vertically integrated team Ans: c Page: See page 335 Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations use committees, task forces, and cross-functional teams.

15. Groups of workers who meet on a regular basis with the goal of applying their expertise to continuous improvement are called __________.* a) cross-functional teams b) employee involvement teams c) virtual teams d) informal groups Ans: b Page: See page 336 Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations use committees, task forces, and cross-functional teams.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

16. A __________ is a group of employees who meet periodically to discuss ways of improving work quality. a) cross functional team b) virtual team c) quality circle d) committee Ans: c Page: See page 336 Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations use committees, task forces, and cross-functional teams.

17. A quality circle is a form of __________.* a) cross-functional team b) employee involvement team c) virtual team d) informal group Ans: b Page: See page 336 Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations use committees, task forces, and cross-functional teams.

18. Teams that have the authority to make decisions about how they share and complete their work are called __________. a) quality circles b) informal groups c) employee involvement teams d) self-managing teams Ans: d Page: See page 337 Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Self-managing teams are a form of job enrichment for groups.

19. Teams that interface primarily through computer networks are called __________. a) virtual teams b) quality circles * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

c) informal groups d) self-managed teams Ans: a Page: See page 336 Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Virtual teams are increasingly common in organizations.

20. A(n) __________ team achieves high levels of task performance, membership satisfaction, and future viability.* a) project b) effective c) diverse d) normal Ans: b Page: See page 339 Level: Easy Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: What are the building blocks of successful teamwork?

21. The key outputs sought from effective teams include: a) communication, clear norms, and cohesion. b) goal clarity, diversity, and rewards. c) team performance, member satisfaction, and team viability. d) decisions, conflict resolution, and member interaction.

Ans: c Page: See page 339 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: What are the building blocks of successful teamwork?

22. The major input categories required for effective teams are organizational setting, nature of task, membership characteristics, and __________.* a) resources b) technology c) structures d) team size Ans: d Page: See page 339 * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: What are the building blocks of successful teamwork?

23. The outputs of effective teams are task performance, member satisfaction, and __________. a) team viability b) team size c) conflict d) values Ans: a Page: See page 339 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: What are the building blocks of successful teamwork?

24. The team effectiveness equation states that:* a) Quality = Process  Innovation b) Effectiveness = Quality of inputs + (Process gains – Process Losses) c) Effectiveness = Quality of inputs + (Process gains + Process Losses) d) Quality of inputs = Effectiveness + (Process gains – Process Losses) Ans: b Page: See page 340 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: What are the building blocks of successful teamwork?

25. In selecting members for a team, you should look for all of the following EXCEPT:* a) random or varied skills. b) interests that “fit” with the task. c) a mix of experienced members and newcomers. d) varying backgrounds.

Ans: a Page: See page 340 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams need the right members and other inputs to be effective.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

26. The way team members work together to accomplish tasks is called __________. a) groupthink b) group diversity c) wellness d) team process Ans: d Page: See page 342 Level: Easy Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams move through different stages of development.

27. The proper order of stages in the team development process is:* a) forming, norming, storming, performing, and adjourning. b) forming, storming, norming, performing, and adjourning. c) forming, storming, performing, norming, and adjourning. d) forming, performing, storming, norming, and adjourning.

Ans: b Page: See page 342 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams move through different stages of development.

28. The team development stage in which total integration is achieved and members can handle complex tasks and any interpersonal conflicts is the: a) storming stage. b) adjourning stage. c) performing stage. d) norming stage.

Ans: c Page: See pages 342-343 Level: Easy Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams move through different stages of development.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

29. The team development stage in which members begin to operate as a unit with shared rules of conduct is the __________ stage. a) storming b) norming c) performing d) forming Ans: b Page: See page 343 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams move through different stages of development.

30. A behavior, rule, or standard expected to be followed by the group is called a __________. a) law b) cohesive component c) decision d) norm Ans: d Page: See page 344 Level: Easy Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by norms and cohesiveness.

31. The degree to which members are attached to and motivated to remain part of a team is called __________. a) normality b) performance c) cohesiveness d) forming Ans: c Page: See page 344 Level: Easy Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by norms and cohesiveness.

32. Since positive performance norms are instrumental in achieving high performance, all of the following would support positive performance norms EXCEPT: a) members acting as positive role models. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

b) training new members in the desired behaviors. c) allowing the leader to make individual decisions to avoid conflict.

Ans: c Page: See page 344 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by norms and cohesiveness.

33. __________ is when any and all members contribute helpful task and maintenance activities to the team. a) Individual effort b) Distributed leadership c) Groupthink d. Storming Ans: b Page: See page 345 Level: Easy Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by task and maintenance roles.

34. Team performance is affected by task and __________ roles. a) gatekeeping b) encouraging c) self-confessing d) maintenance Ans: d Page: See page 345 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by task and maintenance roles.

35. An action taken by a team member that supports the emotional life of the group is called a(n) __________ activity. a) maintenance b) virtual c) task d) distributed * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: a Page: See page 345 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by task and maintenance roles.

36. An action taken by a team member that directly contributes to the group’s performance purpose is called a(n) __________ activity.* a) maintenance b) virtual c) task d) distributed Ans: c Page: See page 345 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by task and maintenance roles.

37. In a __________ network, all members can communicate directly with each other. a) vertically integrated b) decentralized communication c) centralized d) closed Ans: b Page: See page 346 Level: Easy Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by communication networks.

38. In a __________ communication network, communication flows only between individual members and a hub or center point. a) centralized b) decentralized c) socialized d) virtual Ans: a * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Page: See page 346 Level: Easy Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by communication networks.

39. High performance teams typically have: a) clear and elevating goals. b) a result-oriented focus. c) standards of excellence in a collaborative team culture. d) all of the above.

Ans: d Page: See page 348 Level: Easy Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team building helps team members learn to better work together.

40. A set of collaborative activities to gather and analyze data on a team and make changes to increase its effectiveness is called __________. a) virtual management b) team association c) leadership d) team building Ans: d Page: See page 348 Level: Easy Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team building helps team members learn to better work together.

41. The process of choosing between alternatives is called __________. a) organizing b) groupthink c) decision making d) rationalizing Ans: c Page: See page 349 Level: Easy Learning Objective 3: Understand how managers create and lead high-performance teams. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Team performance is affected by use of decision-making methods.

42. When two or three individuals “railroad” a decision on a group, the method used was decision by: a) lack of response. b) authority rule. c) minority rule. d) majority rule.

Ans: c Page: See page 349 Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance is affected by use of deicision-making methods.

43. The tendency for highly cohesive teams to lose their evaluative capabilities is called __________.* a) decision avoidance b) communication drift c) centralized communication d) groupthink Ans: d Page: See page 350 Level: Easy Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance suffers when groupthink leads to bad decisions.

44. __________ is a disagreement over issues of substance and/or an emotional antagonism. a) Avoidance b) Conflict c) Competition d) Opposition Ans: b Page: See page 352 Level: Easy Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

45. __________ conflict involves disagreements over goals, resources, rewards, policies, procedures, and job assignments. a) Emotional b) Substantive c) Physical d) Mental Ans: b Page: See page 352 Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

46. In __________, everyone withdraws and pretends that conflict doesn’t really exist, hoping that it will simply go away. a) compromise b) competition c) accomodation d) avoidance Ans: d Page: See page 352 Level: Easy Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

47. Competition and compromise are forms of __________ conflict. a) win-win b) lose-lose c) win-lose d) none of the above Ans: c Page: See page 352 Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

48. Which of the following is NOT a conflict management style? a) Accommodation b) Confrontation * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

c) Collaboration d) Avoidance Ans: b Page: See page 352 Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

49. The conflict management style of __________ may be used when quick and decisive action is vital or when unpopular actions must be taken. a) accommodation b) competition c) collaboration d) avoidance Ans: b Page: See page 352 Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

True/False

50. Teams can be more pain than gain.

Ans: True Page: See page 332 Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Teams offer synergy and other benefits to organizations and their members.

51. Organizations are permeated with informal groups that form as a result of natural or spontaneous relationships among group members.

Ans: True Page: See page 335 Level: Easy * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations are networks of formal teams and informal groups.

52. The purpose of cross-functional teams is to “knock down the walls” that tend to separate departments and seek integrative solutions.

Ans: True Page: See page 336 Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations use committees, task forces, and cross-functional teams.

53. Quality circles are a form of self-managing teams.

Ans: False Page: See page 336 Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Organizations use committees, task forces, and cross-functional teams.

54. In spite of the great many potential advantages of teams and the wide-spread use of them, teams don’t work well in all situations.

Ans: True Page: See page 340 Level: Easy Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams need the right members and other inputs to be effective.

55. For teams to be effective, you have to start with a firm foundation and quality inputs.

Ans: True Page: See page 340 Level: Easy Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams need the right members and other inputs to be effective.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

56. The team effectiveness equation makes it mathematically clear that process gains must outweigh process losses in order for there to be a chance of team effectiveness.

Ans: True Page: See page 340 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams need the right members and other inputs to be effective.

57. The storming stage is of critical interest to managers during team development because a “failure” here can be a long-lived detriment to the team’s performance future.

Ans: True Page: See pages 342-343 Level: Easy Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams move through different stages of development.

58. Norms develop early and remain constant during the life of the team.

Ans: False Page: See page 344 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by norms and cohesiveness.

59. Team cohesiveness, while generally a good thing, can actually work against team performance.

Ans: True Page: See page 344 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by norms and cohesiveness.

60. While the task activities in a team are obviously shared, it is the sole responsibility of the team leader to ensure that the maintenance activities are taken care of.

Ans: False * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Page: See page 345 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

61. Team performance is affected by task and maintenance roles.

Ans: True Page: See page 345 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by task and maintenance roles.

62. The decentralized communication network works well for tasks requiring creativity and problem-solving.

Ans: True Page: See page 346 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by communication networks.

63. One of the possible downsides of a decision by unanimity is that it can lead to groupthink.

Ans: True Page: See page 350 Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance suffers when groupthink leads to bad decisions.

64. Fortunately, at its core, conflict does not involve disagreements between people.

Ans: False Page: See page 352 Level: Easy Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

65. Emotional conflict involves disagreements over goals, resources, rewards, policies, procedures, and job assignments. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: False Page: See page 352 Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

66. Avoidance and confrontation are forms of lose-lose conflict.

Ans: True Page: See page 352 Level: Easy Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

67. The conflict management style of compromise may be used to arrive at temporary settlements of complex issues or to arrive at expedient solution when time is limited.

Ans: True Page: See page 353 Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

Fill-in-the-Blank

68. A group of people who work together though computer-mediated interactions rather than face-to-face are known as a(n) __________.

Ans: virtual team Page: See page 336 Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Virtual teams are increasingly common in organizations.

69. __________ is the creation of a whole that is greater than the sum of its parts.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: Synergy Page: See page 332 Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Teams offer synergy and other benefits to organizations and their members.

70. __________ are “free-riders” who slack off and allow other team members to carry the bulk of the workload.

Ans: Social loafers Page: See page 333 Level: Easy Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Teams often suffer from common performance problems.

71. An effective team requires high levels of task performance, __________, and team effectiveness.

Ans: membership satisfaction Page: See page 339 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: What are the building blocks of successful teamwork?

72. The way that team members work together to accomplish tasks is known as the __________.

Ans: team process (or group dynamic) Page: See page 342 Level: Easy Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams need the right processes to be effective.

73. The last stage of the group development model is called __________.

Ans: adjourning Page: See page 342 Level: Easy Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams move through different stages of development.

74. __________ are rules or standards of behavior expected of group members. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: Norms Page: See page 344 Level: Easy Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams performance is affected by norms and cohesiveness.

75. The degree to which group members are attracted to and motivated to remain connected with each other is known as __________.

Ans: cohesion (or cohesiveness) Page: See page 344 Level: Easy Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams performance is affected by norms and cohesiveness.

76. When groups break into sub-groups due to disagreements or other divisiveness, the resulting communication scheme is called a(n) __________.

Ans: restricted communication network Page: See page 346 Level: Hard Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Team performance is affected by communication networks.

77. __________ is the tendency for highly cohesive teams to lose their evaluative capabilities.

Ans: Groupthink Page: See page 350 Level: Easy Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance suffers when groupthink leads to bad decisions.

78. __________ conflict results from feelings of anger, distrust, dislike, fear, and resentment as well as from personality clashes.

Ans: Emotional Page: See page 352 Level: Easy Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

79. __________ occurs when each party to the conflict gives up something of value to the other.

Ans: Compromise Page: See page 353 Level: Easy Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance benefits from good conflict management.

Essay

80. Discuss the advantages and disadvantages of virtual teams.

Ans: Advantages include collaboration despite time and distance barriers, time and cost efficiencies, reduction of interpersonal issues, and the ease of recording the team proceedings.

Disadvantages include difficulties in establishing good working relationships, limits in the richness of communication, and depersonalization of the work relationships among team members.

Page: See pages 336-337 Level: Medium Learning Objective 1: Understand the importance of teams and teamwork.

Section Reference: Virtual teams are increasingly common in organizations.

81. How can cohesiveness work for and against effective team performance?

Ans: Cohesiveness works for the team in bringing members together in a supportive network of relationships to accomplish the group task. It can begin in the forming stage and see the team through the storming stage and on to the more productive later stages. Cohesiveness works against the team when it becomes the goal in itself, resulting in a reduction in evaluative discussions and the rise of groupthink.

Page: See page 344 and 350 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance is affected by norms and cohesiveness.

Section Reference: Team performance is affected by use of decision-making methods.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

82. State and define the outputs of effective teams.

Ans: The outputs of effective teams are task performance, member satisfaction, and team viability.

Task performance is the degree to which the task was accomplished. Effective teams are high task performance teams.

Member satisfaction is the extent to which the team members are pleased with their participation in the process. Effective teams have a high degree of member satisfaction.

Team viability is the extent to which the team is capable of working together again as an effective team. Effective teams have high team viability.

Page: See page 341 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams need the right members and other inputs to be effective.

83. Explain the relationship between diversity as it relates to teams, team performance, and the time the team is together.

Ans: Research indicates that diverse teams, in the sense of the team members’ background, training and experience, are more effective (higher performing) than homogeneous teams. In the storming stages of team development, the homogenous teams may have an advantage simply because they are homogeneous. However, the longer the diverse teams are together, the more their performance level improves.

Page: See page 340, 342-343 Level: Medium Learning Objective 2: Identify the building blocks of successful teamwork.

Section Reference: Teams need the right members and other inputs to be effective.

Section Reference: Teams move through different stages of development.

84. Name and define at least four ways that teams make decisions.

Ans: Teams make decisions by lack of response, authority rule, minority rule, majority rule, consensus, and unanimity.

Lack of response is when many alternatives are suggested without any discussion occurring.

When a decision is made, it is an uninformed decision.

Authority rule is when the person with the most authority makes the decision for the team. It is efficient but a counter to having teams.

Minority rule is when a minority of the team forces their position on the team. This method results in problems with implementing the decision.

Majority rule is when the majority makes the decision and is common for many teams.

Consensus is when the team is forced to argue the alternatives until they agree on one.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Unanimity is when all the team members agree on what they believe to be the best alternative.

This will certainly make implementation of the decision easier.

Page: See pages 349-350 Level: Medium Learning Objective 3: Understand how managers create and lead high-performance teams.

Section Reference: Team performance is affected by use of decision-making methods.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

File: mod15, Chapter 15: Communication

Multiple Choice

1. The process of sending and receiving symbols with meanings attached is called __________. a) transmission b) reception c) communication d) notification Ans: c Page: See page 361 Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is a process of sending and receiving messages with meanings attached.

2. The communication cycle is complete when _________. a) the message is encoded b) the message is transmitted c) the message is received d) feedback occurs Ans: d Page: See page 361 Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is a process of sending and receiving messages with meanings attached.

3. __________ communication occurs when the receiver fully understands the intended meaning of the message. a) Efficient b) Effective c) Transactional d) Transmission * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: b Page: See page 362 Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is effective when the receiver understands the sender’s message.

4. Tom is trying to save money by calling an important customer instead of flying in to talk to him directly. Tom is trading communication __________ for communication __________. a) effectiveness; richness b) effectiveness; efficiency c) efficiency; effectiveness d) None of the above Ans: b Page: See page 362 Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is effective when the receiver understands the sender’s message.

5. The final step in effective communication occurs when:* a) the message is encoded and sent. b) the message gets to the receiver. c) the interpreted message matches the intended message. d) feedback is initiated.

Ans: d Page: See page 361 Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is a process of sending and receiving messages with meanings attached.

6. Getting receivers of a message to accept, support, and act consistently with the intent of a message is called __________. a) feedback b) persuasion c) reception * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

d) conversation Ans: b Page: See page 363 Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is persuasive when the receiver acts as the sender intends.

7. __________ communication occurs when the costs of the communication is minimal. a) Efficient b) Effective c) Transactional d) Transmission Ans: a Page: See page 362 Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is efficient when it is delivered at a low cost to the sender.

8. A received message that earns trust, respect, and integrity in the eyes of the receivers is called a(n) __________ message. a) efficient b) nonverbal c) credible d) filtered Ans: c Page: See page 364 Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is persuasive when the receiver acts as the sender intends.

9. Personal bias and perception can cause the receiver of a message to misunderstand the intended meaning of the message. This would be an example of __________ in the communication process.* a) noise * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

b) static c) feedback d) mixed messaging Ans: a Page: See page 366 Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: What are the major barriers to effective communication?

10. Which part of the communication process does the sender really control?* a) Encoding of the message b) Channel transmission of the message c) Decoding of the message d) Message feedback Ans: a Page: See page 366 Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: What are the major barriers to effective communication?

11. __________ occurs when a message causes others to support it. a) Noise b) Persuasion c) Communication d) Filtering Ans: b Page: See page 363 Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is persuasive when the receiver acts as the sender intends.

12. Wireless transmission is a form of a communication __________. a) bandwidth b) feedback c) channel d) filter * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: c Page: See page 367 Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section reference: Poor use of channels makes it hard to communicate effectively.

13. The medium used to carry a message is called a communication __________.* a) transmission b) channel c) reception d) line Ans: b Page: See page 367 Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section reference: Poor use of channels makes it hard to communicate effectively.

14. Anything that interferes with the quality of the communication process is called _________. a) interference b) disruption c) noise d) confusion Ans: c Page: See page 366 Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: What are the major barriers to effective communication?

15. At which point in the communication process does noise occur? a) Transmission b) Encoding c) Reception d) All of the above Ans: d Page: See page 366 Level: Medium Learning Objective 2: Identify the major barriers to effective communication. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: What are the major barriers to effective communication?

16. The amount and quality of information that can be transmitted over a communication channel is called __________. a) channel richness b) proxemics c) transmission quality d) interactive capacity Ans: a Page: See page 367 Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section reference: Poor use of channels makes it hard to communicate effectively.

17. A communication channel that is capable of carrying enough information to assure good personal two way communications is said to have __________. a) too much of capacity b) a high channel richness c) enough adaptability d) an open channel Ans: b Page: See page 367 Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section reference: Poor use of channels makes it hard to communicate effectively.

18. What form of communication provides the highest quality and quantity of information?* a) Telephone b) E-mail c) Face-to-face d) Television Ans: c Page: See page 367 Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section reference: Poor use of channels makes it hard to communicate effectively. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

19. What form of communication provides the lowest quality and quantity of information? a) Telephone b) E-mail c) Face-to-face d) Postings on bulletin boards Ans: d Page: See page 367 Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section reference: Poor use of channels makes it hard to communicate effectively.

20. The “richest” communication channel in the following list is: a) a memo. b) a telephone call. c) voice-mail. d) web site.

Ans: b Page: See page 367 Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section reference: Poor use of channels makes it hard to communicate effectively.

21. Communication through gestures and body language is called __________ communication. a) alternate b) nonverbal c) silent d) poor Ans: b Page: See page 368 Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Failure to spot nonverbal signals makes it hard to communicate effectively. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

22. Of the following, which is NOT an example of nonverbal communication? a) Hand movements b) Facial expressions c) Eye contact d) Written memo Ans: d Page: See page 368 Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Failure to spot nonverbal signals makes it hard to communicate effectively.

23. When words communicate one message while actions, body language, or appearance communicates another, the receiver is likely getting a __________. a) communication channel b) clear message c) mixed message d) nonverbal Ans: c Page: See page 368 Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Failure to spot nonverbal signals makes it hard to communicate effectively.

24. Americans look each other in the eye to convey honesty, while other cultures are uncomfortable with this practice. This could be a source of __________.* a) bad business b) filtering c) feedback d) mixed messaging Ans: d Page: See page 368 Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Failure to spot nonverbal signals makes it hard to communicate effectively. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

25. The intentional distortion of information in order to make it more favorable to the recipient is called __________.* a) perception b) filtering c) noise d) transmission Ans: b Page: See page 369 Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Status differences make it hard to communicate effectively.

26. Jerry, the production manager at Good Cookies LLC, in order to look good for his upcoming performance appraisal, has slightly overstated the month’s output in his monthly report. Jerry is guilty of __________. a) filtering b) mixed messaging c) active listening d) feedback manipulation Ans: a Page: See page 369 Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Status differences make it hard to communicate effectively.

27. Which of these management actions is liable to decrease the chance of filtering?* a) Allowing a highly charged political environment to develop. b) Punishing the bearer of bad news. c) Making employees accountable for the results of their activities. d) Fostering a learning environment where mistakes are treated as growth opportunities.

Ans: d Page: See page 369 Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Status differences make it hard to communicate effectively.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

28. The process of the receiver taking action to help the sender say what he or she really means is called __________.* a) verbal support b) feedback c) active listening d) filtering Ans: c Page: See page 371 Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Active listening helps people say what they really mean.

29. A manager, who is paraphrasing and thinking about what someone else is saying in order to encourage them to clarify what they mean, is using a communication technique called __________. a) mixed messaging b) active listening c) filtering d) constructive feedback Ans: b Page: See page 371 Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Active listening helps people say what they really mean.

30. The five rules of active listening include all of the following EXCEPT:* a) listening for message content. b) listening for feelings. c) responding to feelings. d) focusing just on the verbal cues.

Ans: d Page: See page 372 Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Active listening helps people say what they really mean.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

31. In addition to listening to the words that someone is saying, it is also important to listen for their __________. a) encouragement b) accent c) remarks d) feelings Ans: d Page: See pages 372 Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Active listening helps people say what they really mean.

32. __________ is the process of telling someone else how you feel about something that person said or did. a) Active listening b) Nonverbal communication c) Noise d) Feedback Ans: d Page: See page 372 Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Constructive feedback is specific, timely, and relevant.

33. In giving feedback, one should avoid: a) being specific. b) worrying about timing. c) being threatening. d) having valid comments.

Ans: c Page: See page 372 Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Constructive feedback is specific, timely, and relevant.

34. Which of the following should NOT be done when giving constructive feedback? a) Being direct. b) Giving a lot of information as quickly as you can. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

c) Providing timely information. d) Being specific.

Ans: b Page: See page 372 Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Constructive feedback is specific, timely, and relevant.

35. __________ involves being honest and openly sharing accurate and complete information. a) Corporate communication b) Communication transparency c) Glass door communication d) Active listening Ans: b Page: See page 374 Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Transparency and openness ensure that accurate and timely information is shared.

36. At Bailard, Inc., a private investment firm, employees are provided with essential financial information. If employees want to know what others are making at the firm, all they need to do is ask the chief financial officer. This is an example of: a) open-book management. b) corporate literacy. c) social capital communication. d) active listening.

Ans: a Page: See page 374 Level: Hard Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Transparency and openness ensure that accurate and timely information is shared.

37. The study of the way people use space to communicate is called __________. a) bandwidth b) channel richness * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

c) space technology d) proxemics Ans: d Page: See page 373 Level: easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Office spaces can be designated to encourage interaction and communication.

38. Japan has a population of about 130 million in an area the size of California. As a result the Japanese highly value their space and use every square meter wisely. This would be an example of __________. a) ethnocentrism b) corporate culture c) proxemics d) geographical distribution Ans: c Page: See page 373 Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Office spaces can be designated to encourage interaction and communication.

39. The __________ uses computer technologies to transmit information around informal networks inside and outside of organizations. a) computer transparency b) gossip channel c) electronic grapevine d) information hub Ans: c Page: See page 375 Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Appropriate use of technology can facilitate more and better communication.

40. The tendency to consider one’s culture superior to any other is called __________.* a) culturalism b) cultural etiquette * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

c) ethnocentrism d) bad manners Ans: c Page: See page 377 Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Sensitivity and etiquette can improve cross-cultural communication.

41. The use of appropriate manners and behaviors in cross-cultural situations is called __________.* a) ethnocentricity b) positive feedback c) cultural etiquette d) cultural globalization Ans: c Page: See page 377 Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Sensitivity and etiquette can improve cross-cultural communication.

42. Anne is on a business trip to Japan. She knows that the Japanese are uncomfortable with long eye to eye contact and she purposely avoids using it with her Japanese hosts.

Anne is practicing __________. a) ethnocentricity b) positive feedback c) cultural etiquette d) cultural globalization Ans: c Page: See page 377 Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Sensitivity and etiquette can improve cross-cultural communication.

True/False

43. Our ability to lead is often judged by our skill in communication. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: True Page: See page 360 Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: What is communication and when is it effective?

44. Generally, American managers rate fairly high in communication skills.

Ans: False Page: See page 360 Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: What is communication and when is it effective?

45. With all the other college material to learn in business, fortunately, writing skills are generally fully developed in high school and need no further work.

Ans: False Page: See page 360 Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: What is communication and when is it effective?

46. As much as communication is part of our everyday lives, we often fail in using it to our best advantage.

Ans: True Page: See page 361 Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is effective when the receiver understands the sender’s messages.

47. The two key measures of good communication are effectiveness and efficiency.

Ans: True Page: See page 362 Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Communication is effective when the receiver understands the sender’s messages.

Section Reference: Communication is efficient when it is delivered at low cost to the sender.

48. Interestingly, recruiters give networking skills low priority when screening candidates for college internships and first jobs.

Ans: False Page: See page 363 Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is persuasive when the receiver acts as the sender intends.

49. In communication theory, noise is anything that interferes with the communication process.

Ans: True Page: See page 366 Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: What are the major barriers to effective communication?

50. Channel richness is determined by the efficiency of the communication channel.

Ans: False Page: See page 367 Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Poor use of channels makes it hard to communicate effectively.

51. The majority of a message’s impact on the receiver is determined by nonverbal communications.

Ans: True Page: See page 368 Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Failure to spot nonverbal signals makes it hard to communicate effectively. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

52. Message filtering helps to ensure that only the relevant messages get to management.

Ans: False Page: See page 369 Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Status differences make it hard to communicate effectively.

53. Active listening requires that the person listening pay close attention and remain quiet.

Ans: False Page: See page 371 Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Active listening helps people say what they really mean.

54. Any feedback, so long as it is well-intentioned, will improve behaviors.

Ans: False Page: See page 372 Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Constructive feedback is specific, timely, and relevant.

55. Research shows that it is a bad idea for managers to use social networking sites, such as Facebook, to keep communication channels open with employees because these sites are too informal.

Ans: False Page: See page 375 Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Appropriate use of technology can facilitate more and better communication.

56. The way an office is laid out can actually impact the communication process.

Ans: True * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Page: See pages 373 Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Office spaces can be designed to encourage interaction and communication.

57. The tendency to consider one’s culture superior to others is call ethnocentrism.

Ans: True Page: See page 377 Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Sensitivity and etiquette can improve cross-cultural communication.

58. With modern computer protections, you can generally assume that your e-mail is private, even at work.

Ans: False Page: See page 376 Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Appropriate use of technology can facilitate more and better communication.

59. To be successful in cross-cultural communication, you have to be sensitive to others and willing to learn how others see things.

Ans: True Page: See page 377 Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Sensitivity and etiquette can improve cross-cultural commination.

60. Chinese and Japanese employees may show anger only in their eyes, a point often missed by Westerners.

Ans: True Page: See page 377 Level: Hard Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Sensitivity and etiquette can improve cross-cultural commination. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Fill-in-the-Blank

61. __________ is the capacity to attract support and help from others in order to get things done.

Ans: Social capital Page: See page 360 Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: What is communication and when is it effective?

62. __________ is the interpersonal process of sending and receiving symbols with meanings attached to them.

Ans: Communication Page: See page 361 Level: Easy Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is a process of sending and receiving messages with meanings attached.

63. The medium through which a message is carried is called a(n) __________.

Ans: communication channel Page: See page 367 Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Poor use of channels makes it hard to communicate effectively.

64. __________ communication occurs when a minimum of resources are expended.

Ans: Efficient Page: See page 362 Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is efficient when it is delivered at low cost to the sender. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

65. In order to persuade others, the speaker must have __________, being trusted, respected, and seen as having integrity.

Ans: credibility Page: See page 364 Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is persuasive when the receiver acts as the sender intends.

66. __________ is the capacity of a communication channel to effectively carry information.

Ans: Channel richness Page: See page 367 Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Poor use of channels makes it hard to communicate effectively.

67. The intentional distortion of information to make it appear favorable to the message recipient is called __________.

Ans: filtering Page: See page 369 Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Statue differences make it hard to communicate effectively.

68. __________ is the process of indicating to others how you feel about what they have said or done.

Ans: Feedback Page: See page 372 Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Constructive feedback is specific, timely, and relevant.

69. __________ involves being honest and openly sharing accurate and complete information.

Ans: Communication transparency * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Page: See page 374 Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Transparency and openness ensure that accurate and timely information is shared.

70. __________ is the study of the way we use space.

Ans: Proxemics Page: See page 373 Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Office spaces can be designed to encourage interaction and communication.

71. __________ is the tendency to consider one’s own culture superior to any other.

Ans: Ethnocentrism Page: See page 377 Level: Medium Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Sensitivity and etiquette can improve cross-cultural communication.

72. A basic awareness of the appropriate manners and behaviors to use when one is communicating with people from other countries is called __________.

Ans: cultural etiquette Page: See page 377 Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Sensitivity and etiquette can improve cross-cultural communication.

Essay

73. Explain the “trade-off” involved in working toward effective and efficient communication.

Ans: Effectiveness means doing whatever it takes to ensure complete understanding, while efficiency focuses on making the contacts while expending the smallest amount of * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

resources. In other words, the goals are somewhat in conflict. One clear way to see this is to use channel richness. Effectiveness is at the face-to-face end of the scale, while efficiency is at the mass communication end.

Page: See pages 362-363 Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is effective when the receiver understands the sender’s messages.

Section Reference: Communication is efficient when it is delivered at low cost to the sender.

74. What is “noise” and how can it negatively impact communication?

Ans: Noise is anything that detracts from communication, including language or cultural differences, inappropriate communication channels that don’t support the message, poor quality expression, or incongruent (mixed) non-verbal messages.

Page: See page 366 Level: Easy Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: What are the major barriers to effective communication?

75. Define the communication process including each step in the process.

Ans: The components of the communication process are a sender, a receiver and a communication channel. The steps in the process are 1) The sender encodes the message to be communicated. 2) The message is sent via the selected communication channel. 3) The receiver receives the message. 4) The receiver decodes the message. 5) The receiver provides feedback to the sender. Throughout the process, noise may cause the quality of communication to be reduced.

Page: See page 361 Level: Medium Learning Objective 1: Understand the nature of communication and when it is effective.

Section Reference: Communication is a process of sending and receiving messages with meanings attached.

76. What is channel richness? Describe the relationship between channel richness and the various means of communicating.

Ans: Channel richness is the amount and quality of information that can be transmitted over a communication channel. A high rich channel will provide personal two way communication, while a low rich channel will be limited to impersonal one way communication. However, the low rich channel, although less effective, is likely to be more efficient, while the high rich channel is likely to be more effective but less efficient. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Examples of low rich channels are postings, memos, and letters. Examples of high rich channels are face to face conversations and telephones. E-mails fall in the middle.

Choosing the communication channel is an important part of the communication process.

Page: See page 367 Level: Medium Learning Objective 2: Identify the major barriers to effective communication.

Section Reference: Poor use of channels makes it hard to communicate effectively.

77. What is proxemics and why is it important?

Ans: Proxemics is the study of the way we use space. It is important because the way we use space can have a very strong influence on our ability to communicate effectively.

Page: See page 373 Level: Easy Learning Objective 3: Discuss ways to improve communication with people at work.

Section Reference: Office spaces can be designed to encourage interaction and communication.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

File: mod16, Chapter 16: Diversity and Global Cultures

Multiple Choice

1. A company that is based on pluralism and operates with inclusivity and respect for diversity is called a __________ organization. a) multinational b) multicultural c) business d) free enterprise Ans: b Page: See page 385 Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Inclusive organizational cultures value and support diversity.

2. __________ is a word used to describe differences in people’s race, religion, age, and other factors. a) Dichotomy b) Detail c) Diversity d) Departmental Ans: c Page: See page 385 Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Inclusive organizational cultures value and support diversity.

3. Leadership in an organization commits the organization to hiring and advancing minorities and women. This is called __________. a) diversity b) ethnocentrism c) pluralism d) affirmative action * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: d Page: See page 388 Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Managing diversity should be a top leadership priority.

4. How open an organization is to hiring anyone who can perform a specific job is called __________. a) exclusivity b) discrimination c) diversity d) inclusivity Ans: d Page: See page 385 Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Inclusive organizational cultures value and support diversity.

5. The problem of high employee turnover among minorities and women has been called __________. a) the revolving door syndrome b) the glass ceiling effect c) ethnocentrism d) an organizational subculture Ans: a Page: See page 385 Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Inclusive organizational cultures value and support diversity.

6. Which of the following is a characteristic of a multicultural organization? a) Pluralism b) Structural integration * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

c) Informal network integration d) All of the above are characteristics of a multicultural organization.

Ans: d Page: See page 385 Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Inclusive organizational cultures value and support diversity.

7. John is a marketing manager who thinks that those finance people just don’t understand the business like marketing people do. John is likely to be a part of a(n) __________ subculture.* a) gender b) national c) intergroup d) occupational Ans: d Page: See page 386 Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

8. __________ is the belief that one’s membership group is superior to others.* a) Ethnocentrism b) Ethics c) Self-involvement d) Self-indulgent Ans: a Page: See page 385 Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

9. Organizational __________ are groupings of people based on shared demographic and job identities. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

a) departments b) divisions c) subcultures d) groups Ans: c Page: See page 385 Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

10. The three types of subcultures are occupational, ethnic, and __________.* a) historical b) national c) gender d) international Ans: c Page: See page 386 Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

11. Bill is at a business dinner meeting in India. When his Indian associates all light up a cigarette after the meal, Bill lectures them on the evils of smoking and walks out of the restaurant. Bill is guilty of __________. a) subcultural preference b) ethnocentrism c) monochromic behavior d) polychromic behavior Ans: b Page: See page 385 Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

12. The problem with subcultures in organizations is that: a) they tend to form informally. b) ethnocentric tendencies cause members to look down on outsiders. c) they are formed by individuals with similar characteristics. d) members identify more closely to them than to the larger organization.

Ans: b Page: See page 385 Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

13. The __________ is a hidden barrier that restricts the advancement of women and minorities into senior level management positions. a) invisible wall b) glass ceiling c) imaginary plane d) human resource department Ans: b Page: See page 387 Level: easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Minorities and woman suffer diversity bias in many situations.

14. Glass ceilings are problematic because:* a) power is distributed equally throughout organizations. b) women have finally erased the barrier; minorities still face it. c) they encourage women and minorities to stay in an organization. d) most top executives are older, white males and there is little opportunity for others.

Ans: d Page: See page 387 Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Minorities and woman suffer diversity bias in many situations.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

15. __________ occurs when minorities adopt the characteristics of the majority culture in order to succeed. a) Transgression b) Transformation c) Cultural diversity d) Biculturalism Ans: d Page: See page 388 Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Minorities and woman suffer diversity bias in many situations.

16. Lasana, a black male, is a first-line manager at International Parts Inc. Lasana loves soul food but never brings it to work. Instead, his lunch usually consists of chicken or ham sandwiches because he believes it will be better for his career. Lasana is practicing __________.* a) biculturalism b) healthy eating habits c) culinary diversity d) cultural diversity Ans: a Page: See page 388 Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Minorities and woman suffer diversity bias in many situations.

17. An organization that is mature about diversity should be able to answer a confident “yes” to which of the following questions? a) Do you understand diversity concepts? b) Do you accept responsibility for improving your performance? c) Are you willing to learn continuously? d) All of the above are questions that mature organizations will be able to answer a confident “yes.”

Ans: d Page: See page 388 Level: Medium * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Managing diversity should be a top leadership priority.

18. The three steps in Roosevelt Thomas’ continuum of leadership approaches to diversity are affirmative action, managing diversity, and __________.* a) leadership policy b) diversity regulations c) valuing diversity d) equal employment Ans: c Page: See page 389 Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Managing diversity should be a top leadership priority.

19. Building an inclusive work environment that allows everyone to reach his or her potential is called __________. a) employee development b) open management c) management training d) managing diversity Ans: d Page: See page 389 Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Managing diversity should be a top leadership priority.

20. Sara, the director of human resources at Worldwide Products Inc., is continually in the process of training managers on anti-discriminatory practices and establishing an inclusive diverse environment at the company. Sara is practicing __________. a) discrimination b) management diversity c) value management d) biculturalism Ans: b * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Page: See page 389 Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Managing diversity should be a top leadership priority.

21. According to Roosevelt Thomas, affirmative action has __________ the desire of minorities to assimilate into the workforce. a) increased b) decreased c) had no effect on d) None of the above Ans: b Page: See page 389 Level: Hard Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Managing diversity should be a top leadership priority.

22. The most productive end of the diversity leadership continuum involves active inclusion of diversity in organizational operations with a goal of multiculturalism and is known as __________.* a) workplace diversity b) managing diversity c) affirmative action d) biculturalism Ans: b Page: See page 388 Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Managing diversity should be a top leadership priority.

23. The confusion and discomfort that a person experiences when in an unfamiliar culture is called __________. a) cultural diversity b) cultural malaise c) employee despair * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

d) culture shock Ans: d Page: See page 391 Level: easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultures shock comes from discomfort in cross-cultural situations.

24. Vince, a middle manager at United Imports Inc, is in Japan on a business trip to visit a major supplier. After work, his Japanese hosts take him to a Japanese barbecue restaurant. Two of the main entrees are horsemeat and sparrow with the heads on. Vince is very uncomfortable with these dishes and does not know what to do. Vince is suffering a condition known as __________. a) culture shock b) an upset stomach c) diplomacy d) bad food Ans: a Page: See page 391 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultures shock comes from discomfort in cross-cultural situations.

25. Which of the following is NOT one of the stages of adjusting to a new culture?* a) Irritation and anger b) Honeymoon c) Reality d) Comfort Ans: d Page: See page 391 Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultures shock comes from discomfort in cross-cultural situations.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

26. The first stage in adjusting to a new culture is __________. a) irritation and anger b) honeymoon c) confusion d) reality Ans: c Page: See page 391 Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultures shock comes from discomfort in cross-cultural situations.

27. The last stage in adjusting to a new culture is __________.* a) irritation and anger b) honeymoon c) reality d) small victories Ans: c Page: See page 391 Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultures shock comes from discomfort in cross-cultural situations.

28. Bryan has just moved to Japan from the United States. He currently feels overwhelmed by the new culture, and it has become a target of his criticism. Bryan is in what stage of adjusting to a new culture? a) Confusion b) Irritation and anger c) Reality d) Small victories Ans: b Page: See page 391 Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultures shock comes from discomfort in cross-cultural situations.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

29. According to a survey done by FDS International of the United Kingdom, the country with best overall employee morale is ___________. a) the United States b) Germany c) the Netherlands d) Japan Ans: c Page: See page 392 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultural intelligence is the capacity to adapt to foreign cultures.

30. The ability to adapt to new cultures is called cultural __________.* a) awareness b) deficiency c) training d) intelligence Ans: d Page: See page 392 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultural intelligence is the capacity to adapt to foreign cultures.

31. All of the following are aspects of cultural intelligence EXCEPT:* a) high cultural self-awareness. b) flexibility in your dealings. c) willingness to learn about the unfamiliar. d) consistency and commitment to maintain your home cultural behaviors.

Ans: d Page: See page 392 Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultural intelligence is the capacity to adapt to foreign cultures.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

32. A culture that includes nonverbal signals and context when interpreting communication is classified as a(n) __________. a) individualistic culture b) high-context culture c) collectivistic culture d) low-context culture Ans: b Page: See page 393 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

33. A culture that relies mainly on the written and spoken word is called a(n) __________.* a) individualistic culture b) high-context culture c) documented culture d) low-context culture Ans: d Page: See page 393 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

34. A culture in which people do one thing at a time is called a(n) __________ culture.* a) individualistic b) high-context c) low-context d) monochronic Ans: d Page: See page 393 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

35. A culture in which people are multi-tasking is called a __________ culture. a) group b) polychronic c) diverse d) high-context Ans: b Page: See page 393 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

36. In a high context culture, such as Italy, one would expect to find __________. a) high uncertainty avoidance b) monochromic behavior c) a high degree of nonverbal communication d) a low power distance rating Ans: c Page: See page 393 Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

37. The study of how people use interpersonal space is called __________.* a) space works b) inter-space c) proxemics d) proximity Ans: c Page: See page 393 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

38. Which of the following is NOT one of Hofstede’s dimensions of national cultures? a) Power distance b) Uncertainty avoidance c) Time orientation d) Educational background Ans: d Page: See pages 395-396 Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

39. According to Hofstede’s dimensions of national cultures, __________ is the degree to which a society accepts unequal distribution of power.* a) uncertainty avoidance b) individualism-collectivism c) power distance d) time orientation Ans: c Page: See page 395 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

40. According to Hofstede’s dimensions of national cultures, __________ is the degree to which a society tolerates uncertainty. a) uncertainty avoidance b) individualism-collectivism c) power distance d) time orientation Ans: a Page: See page 395 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

41. According to Hofstede’s dimensions of national cultures, __________ is the degree to which a society emphasizes individuals and their self-interests. a) uncertainty avoidance b) individualism-collectivism c) power distance d) time orientation Ans: b Page: See page 395 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

42. A member of one of your student teams from a collectivistic culture is more likely to behave in which of the following ways? a) Step forward to be the team leader b) Offer to lead the team presentation c) Confront a fellow member who is not making a “fair-share” contribution d) Work diligently on their part of the project with little fanfare Ans: d Page: See page 395 Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

43. The most highly individualistic country, according to Hofstede’s sample, is __________. a) Japan b) Germany c) China d) the United States Ans: d Page: See page 395 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

44. According to Hofstede’s dimensions of national cultures, __________ is the degree to which a society values assertiveness and materialism. a) uncertainty avoidance b) individualism-collectivism c) power distance d) masculinity-femininity Ans: d Page: See page 395 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

45. According to Hofstede’s dimensions of national cultures, __________ is the degree to which a society emphasizes short-term or long-term goals. a) uncertainty avoidance b) individualism-collectivism c) power distance d) time orientation Ans: d Page: See page 396 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

46. Hofstede was concerned about the tendency for people to assume that generalized cultural values could be applied to all members of a culture. He called this tendency __________. a) generalized approach b) ecological fallacy c) equal distribution d) unreasonable expectation Ans: b Page: See page 396 Level: Medium * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

True/False

47. Diversity can provide competitive advantage for a firm and is easy to implement.

Ans: False Page: See pages 384 Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: There is a business case for diversity.

48. The positive model for diversity is to achieve “multicultural” status as an organization.

Ans: True Page: See page 385 Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Inclusive organizational cultures value and support diversity.

49. Subcultures are necessary to achieve organizational diversity.

Ans: False Page: See page 385 Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

50. Ethnocentrism is necessary to establishing organizational diversity. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: False Page: See page 385 Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

51. Harris and Conference Board polls report that younger workers tend to be more satisfied with their jobs than older workers.

Ans: False Page: See pages 386-387 Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

52. Awareness of the glass ceiling has resulted in a significant improvement in the number of women in senior management positions.

Ans: False Page: See page 387 Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Minorities and women suffer diversity bias in many situations.

53. Biculturalism is a positive step in resolving the diversity issue.

Ans: False Page: See page 388 Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Minorities and women suffer diversity bias in many situations.

54. Affirmative action is the most effective and efficient way to implement and benefit from diversity. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: False Page: See pages 388-389 Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Managing diversity should be a top leadership priority.

55. The stages of adjustment to culture shock are a series of steady improvements after the initial stage of confusion.

Ans: False Page: See page 391 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Culture shock comes from discomfort in cross-cultural situations.

56. Hall argues that we need to be aware of more than just the verbal languages of other countries; his emphasis on “silent languages” refers to understanding communication context, the perspective of time, and the use of space.

Ans: True Page: See page 393 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

57. Cultural intelligence deals with the ability to adapt to new cultures.

Ans: True Page: See page 392 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultural intelligence is the capacity to adapt to foreign cultures.

58. Another way to view polychronic cultures is as a group of flexible multi-taskers. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: True Page: See page 393 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

59. A culture that is high in uncertainty avoidance would be known for its entrepreneurial spirit.

Ans: False Page: See page 395 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

60. According to Hofstede’s five dimensions of national cultures, the United States is more accepting of uncertainty than is Japan.

Ans: True Page: See page 395 Level: Hard Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

61. Proxemics is the study of how people use personal time to communicate.

Ans: False Page: See page 393 Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

Fill-in-the-Blank * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

62. _________ includes race, gender, age, and other individual differences.

Ans: Diversity Page: See page 384 Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: There is a business case for diversity.

63. The belief that one’s membership group or subculture is superior to all others is called __________.

Ans: ethnocentrism Page: See page 385 Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

64. Organizational __________ are informal groupings of people with shared identities within a larger organization.

Ans: subcultures Page: See page 385 Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

65. _________ form among people doing the same kinds of work.

Ans: Occupational subcultures Page: See page 386 Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

66. The barrier to women and minorities that manifests itself in the lack of diversity in the upper ranks of organizational management is known as the __________.

Ans: glass ceiling Page: See page 387 Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Minorities and women suffer diversity bias in many situations.

67. __________ is an effort made by women and minorities to “fit in” by taking on behaviors and characteristics displayed by the majority.

Ans: Biculturalism Page: See page 388 Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Organizational subcultures can create diversity challenges.

68. __________ is building an inclusive work environment that allows everyone to reach his or her potential.

Ans: Managing diversity Page: See page 389 Level: Medium Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: Managing diversity should be a top leadership priority.

69. __________ is the feeling of confusion and discomfort felt in dealing with an unfamiliar culture.

Ans: Culture shock Page: See page 391 Level: Easy * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Culture shock comes from discomfort in cross-cultural situations.

70. The ability to adapt and adjust to new cultures is a reflection of one’s __________.

Ans: cultural intelligence Page: See page 392 Level: Easy Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Cultural intelligence is the capacity to adapt to foreign cultures.

71. __________ is Hall’s term for how people use interpersonal space to communicate.

Ans: Proxemics Page: See page 393 Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

72. In __________ people tend to do one thing at a time.

Ans: monochronic cultures Page: See page 393 Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

73. Regarding diversity, the concept of __________ is similar to that of stereotyping.

Ans: ecological fallacy Page: See page 396 Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Hofstede identifies five value differences among national cultures.

Essay

74. Beyond the legal issues, make the business case for diversity.

Ans: A potential source of competitive advantage, diverse employees give management an “insider” view to the thinking of the different groups in the marketplace. In addition, diversity provides a variety of perspectives for problem-solving and innovation. Diversity opens the talent pool for hiring to the whole human race! Also, employees who feel included are more likely to stay with their employers and recommend them to others.

Research shows that companies with a greater percentage of women on their boards outperform those whose boards have the lowest female representation.

Page: See page 384 and 389 Level: Easy Learning Objective 1: Understand what we need to know about diversity in the workplace.

Section Reference: There is a business case for diversity.

Section Reference: Managing diversity should be a top leadership priority.

75. While the value of diversity is obvious, what makes it so difficult to manage in global companies?

Ans: The various differences that we seek to include involve value sets that can clash. For example, consider the different approaches to the role of women. Also consider the relevance of individual competence versus social status in promotions among the cultural dimensions studied by Hofstede and the “silent” languages of cultures recognized by Hall.

Page: See pages 393-396 Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

Section Reference: Hofstede identifies five value differences among national cultures.

76. Edward T. Hall, an anthropologist, believes that cultures have “silent” languages that are found in their approach to communications context, time, and space. What are these cultural languages? Describe each. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: Context cultures include low-context and high-context. Low-context cultures communicate primarily through voice and written communications. High-context cultures rely on nonverbal and situational cues as well as voice and written communications.

Time cultures also have two subsets. They are monochronic cultures and polychronic cultures. In monochromic cultures, people tend to do one thing at a time. In polychronic cultures, people tend to multitask doing many different things at once.

Space cultures, how people use individual space, are defined by the field of proxemics.

Some cultures, the Japanese for example, have very little space and therefore value space very highly. Other cultures, such as Americans, have a lot of space and are therefore less concerned with how or how much of it they use.

Page: See page 393 Level: Hard Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: The “silent” languages of cultures include context, time, and space.

77. Hofstede identified five value differences among national cultures. What are they?

Define each of them.

Ans: Hofstede’s five value differences are power distance, uncertainty avoidance, individualism-collectivism, masculinity-femininity, and time orientation.

Power distance is the degree to which a society accepts unequal distribution of power.

Uncertainty avoidance is the degree to which a society tolerates risk and uncertainty.

Individualism-collectivism is the degree to which a society emphasizes individuals and their self-interests.

Masculinity-femininity is the degree to which a society values assertiveness and materialism.

Time orientation is the degree to which a society emphasizes short term and long term goals.

Page: See pages 395-396 Level: Hard Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Hofstede identifies five value differences among national cultures.

78. Define culture shock and the stages that one experiences as part of it.

Ans: Culture shock is the confusion and discomfort that a person experiences when in an unfamiliar environment. The five stages of culture shock are: Confusion – On first contact; anxious, and uncomfortable feeling.

Small victories – Adjusting to the situation as you become more familiar with it. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Honeymoon – A good feeling as you better understand and appreciate the new culture.

Irritation and anger – Based on the negatives of the culture outweighing the positives.

Reality – Learning to live with the negative aspects while enjoying the positive aspects.

Page: See page 391 Level: Medium Learning Objective 2: Understand what we need to know about diversity among global cultures.

Section Reference: Culture shock comes from discomfort in cross-cultural situations.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

File: mod17, Chapter 17: Globalization and International Business

Multiple Choice

1. __________ is used to describe the interdependence among elements of the global economy. a) Nationalization b) Industrialism c) Globalization d) Internationalism Ans: c Page: See page 405 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization involves the growing interdependence of the world’s economics.

2. The creation of domestic jobs by foreign employers is called __________. a) insourcing b) outsourcing c) international operations d) domestic operations Ans: a Page: See page 405 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization involves the growing interdependence of the world’s economics.

3. An economy in which resources, markets, and competition are worldwide in scope is called a(n) __________ economy.* a) foreign b) domestic c) outsourced d) global * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: d Page: See page 405 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization involves the growing interdependence of the world’s economics.

4. A company that conducts business across national boundaries is called a(n) __________. a) global economy b) international business c) trade association d) conglomerate Ans: b Page: See page 405 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization creates a variety of international business opportunities.

5. A business that conducts commercial transactions across national boundaries is called a(n) __________ business.* a) outsourced b) franchised c) international d) foreign licensed jobs Ans: c Page: See page 405 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization creates a variety of international business opportunities.

6. Doing business internationally can be justified by all of the following EXCEPT: a) to expand profit potential. b) to gain access to more customers. c) to reduce access to capital. d) to lower the cost of materials and supplies. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: c Page: See page 406 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization creates a variety of international business opportunities.

7. The term used to describe the selling of products to foreign countries is __________. a) importing b) deporting c) outsourcing d) exporting Ans: d Page: See page 407 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

8. The process of buying foreign products for sale in domestic markets is called __________. a) importing b) insourcing c) exporting d) franchising Ans: a Page: See page 407 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

9. Business go global for all of the following reasons EXCEPT: a) to avoid domestic customers. b) to increase profits through expanded operations. c) to increase access to low-cost, talented workers. d) all of the above.

Ans: a * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Page: See page 406 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization creates a variety of international business opportunities.

10. Which of the following is a direct investment strategy? a) Global sourcing b) Joint ventures c) Exporting d) Licensing Ans: b Page: See page 408 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

11. Which of the following countries is the top outsourcing destination? a) Mexico b) China c) United States d) Japan Ans: b Page: See page 408 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

12. Purchasing the rights to make or sell another company’s products is called __________.* a) insourcing b) outsourcing c) franchising d) licensing Ans: d Page: See page 407 * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

13. Global sourcing involves: a) exporting products for sale. b) purchasing materials, components, or services from around the world for local use. c) selling a foreign firm the right to make your products. d) building a plant to produce goods for sale in foreign countries.

Ans: b Page: See page 406 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

14. Because this type of international business creates jobs locally, governments often support __________ endeavors.* a) green ventures b) importing c) licensing d) exporting Ans: d Page: See page 407 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

15. When a firm grants licenses internationally, it is giving foreign companies access to it’s: a) technologies, patents, or trademarks. b) facility designs and equipment. c) product ingredients. d) management systems.

Ans: a * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Page: See page 407 Level: Hard Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

16. The paying of a fee to use another firm’s name, resources, and operating systems is called __________. a) licensing b) franchising c) importing d) leasing Ans: a Page: See page 407 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

17. McDonald’s has outlets in Japan. McDonald’s provides the Japanese operation with the rights to use McDonald’s name, material, and processes, but the operation is owned and managed by Japanese. The Japanese operation would be considered a(n) __________.* a) outlet b) subsidiary c) franchise d) licensed importer Ans: c Page: See page 407 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

18. A __________ operates through co-ownership with local partners. a) franchise b) wholly owned subsidiary c) joint venture * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

d) licensed partner Ans: c Page: See page 408 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

19. Better Boots Inc. wishes to market their products in the Far East. Although Better Boots has the design and manufacturing capability, the company lacks the distribution channels and knowledge of the Far East cultures necessary to market their products. Bill Somebody, president of Better Boots, has decided to form a partnership with Far East Boots, an Asian company. Far East boots will provide the marketing know how that Better Boots lacks. The company will be jointly owned and independently operated.

Better Boots is forming a(n) __________ with Far East Boots.* a) franchise b) joint venture c) licensing agreement d) operating subsidiary Ans: b Page: See page 408 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

20. A joint venture arrangement normally might involve all of the following EXCEPT: a) pooling of resources. b) sharing risks. c) jointly operating the venture. d) one firm buying out the other firm.

Ans: d Page: See page 408 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

21. A __________ establishes a foreign subsidiary by building an entirely new operation in a foreign country. a) joint venture b) strategic alliance c) greenfield venture d) franchise Ans: c Page: See page 408 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

22. Business arrangements between firms of different nationalities are done for many reasons and in many different ways. These arrangements, whatever their structure, are called __________. a) subsidiaries b) global strategic alliances c) franchises d) licensed partnerships Ans: b Page: See page 408 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

23. A joint venture is a form of __________ in which each partner invests in and accepts the risks and rewards of the venture.* a) sustainable development b) subsidiary c) franchise d) strategic global alliance Ans: d Page: See page 408 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

24. A __________ is a local operation completely owned by a foreign company. a) foreign partnership b) franchise c) foreign subsidiary d) licensee Ans: c Page: See page 408 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

25. Which of the following approaches to international business offers the most control with the greatest risk? a) Joint ventures b) Foreign subsidiary c) Importing d) Licensing Ans: b Page: See page 408 Level: Hard Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

26. The __________ is a global institution whose purpose is to promote free trade and open markets around the world. a) United Markets Institute b) World Bank c) World Trade Organization d) U.S. Chamber of Commerce Ans: c Page: See page 410 Level: Easy * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is complicated by different legal and political systems.

27. A trading partner who receives the most favorable treatment for imports and exports is said to have __________ status.* a) international b) unfair c) most protected nation d) most favored nation Ans: d Page: See page 410 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is complicated by different legal and political systems.

28. When an American business is being mistreated in foreign countries, the U.S. government can help by appealing to which of the following? a) The European Union b) The World Trade Organization c) The military d) The United Nations Ans: b Page: See page 410 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is complicated by different legal and political systems.

29. __________ is the application of tariffs and special treatment for local firms from foreign competition.* a) Idealism b) Internationalism c) Globalism d) Protectionism Ans: d * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Page: See page 410 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is complicated by different legal and political systems.

30. A __________ is a business with extensive foreign operations in more than one country. a) conglomerate b) wholly owned subsidiary c) partnership d) multinational corporation Ans: d Page: See page 412 Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Global corporations or MNC’s do substantial business in many countries.

31. The biggest difference between an international business and a transnational business is that the transnational business tries to operate __________.* a) under different international laws b) with only senior expatriate managers c) without a strong national identity d) in every country in the world Ans: c Page: See page 412 Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Global corporations or MNC’s do substantial business in many countries.

32. Which of the following is NOT an MNC complaint about host countries? a) Profit limitations b) Overpriced resources c) Interference with government d) Exploitative rules * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: c Page: See page 413 Level: Hard Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: The actions of global corporations can be controversial at home and abroad.

33. __________ involves illegal practices to protect one’s own business.* a) Bad faith b) Corruption c) Conspiracy d) Control Ans: b Page: See page 414 Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Managers of global corporations face a variety of ethical challenges.

34. The Foreign Corrupt Practices Act prevents U.S. firms from:* a) paying bribes or giving excess commissions in exchange for favors. b) using “sweatshops” to produce goods for sale in the U.S. c) employing child labor in plants that make goods for U.S. markets. d) from participating in unsustainable development in third world countries.

Ans: a Page: See page 414 Level: Hard Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: managers of global corporations face a variety of ethical challenges.

35. A company that employs workers at very low wages, for long hours, and in poor working conditions is called a(n) __________. a) subsidiary b) joint venture c) MNC d) sweatshop Ans: d Page: See page 414 * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: managers of global corporations face a variety of ethical challenges.

36. __________ is the full time employment of children for work normally done by adults. a) Children camp b) Child labor c) Scout camp d) Sweatshop Ans: b Page: See page 414 Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: managers of global corporations face a variety of ethical challenges.

37. The problem of “currency risk” refers to: a) fluctuations in the electrical grids of foreign countries. b) terrorism or armed conflicts. c) fluctuations in foreign exchange rates. d) nationalization of foreign assets.

Ans: c Page: See page 415 Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Planning and controlling are complicated in global corporations.

38. Corporations, for tax purposes, may decide to keep their profits in a foreign country or to transfer them to their corporate headquarters in their home country. The decision of what to do is often a matter of __________.* a) national interest b) currency risk c) banking practice d) competitive action Ans: b Page: See page 415 Level: Hard Learning Objective 2: Understand what global corporations are and how they work. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Planning and controlling are complicated in global corporations.

39. The possible loss of investment or control over foreign assets due to instability or political changes in foreign countries is called __________. a) political instability b) adverse operating conditions c) political risk d) environmental instability Ans: c Page: See page 415 Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Planning and controlling are complicated in global corporations.

40. When Argentina’s president nationalized the oil industry without consideration for the foreign companies operating there, the loss to the foreign countries was considered a __________ risk. a) national b) currency c) global d) political Ans: d Page: See page 415 Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Planning and controlling are complicated in global corporations.

41. The forecasting of political events that may impact foreign investments is called __________. a) currency analysis b) political-risk analysis c) analytical forecasting d) international forecasting Ans: b Page: See page 415 Level: Easy * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Planning and controlling are complicated in global corporations.

42. According to research from Transparency International, which of the following countries ranked #1 as the least corrupt for doing business? a) Somalia b) Spain c) USA d) New Zealand Ans: d Page: See page 415 Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Planning and controlling are complicated in global corporations.

43. The two main ways of organizing multinational corporations for global operations are global __________ and global __________ structures. a) economy; risk b) area; economy c) product; market d) area; product Ans: d Page: See page 416 Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Organizing can be difficult in global corporations.

44. Products For You, Inc. is an international company with five presidents in charge of its American, European, African, Asian, and the ROW (rest of the world) operations.

Products For You, Inc. is using a global __________ structure. a) area b) matrix c) product d) vertical Ans: a Page: See page 416 Level: Easy Learning Objective 2: Understand what global corporations are and how they work. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Organizing can be difficult in global corporations.

45. Managers who are aware of international developments and competent in working across cultures are called __________ managers. a) senior b) national c) global d) foreign Ans: c Page: See page 416 Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Leading is challenging in global corporations.

True/False

46. In her book The Travels of a T-Shirt in the Global Economy, economist Pietra Rivoli tracks a t-shirt that she bought while on a vacation to Florida.

Ans: True Page: See page 404 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: How does globalization affect international business?

47. In a global economy, resources, markets and competition are worldwide in scope.

Ans: True Page: See page 405 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization involves the growing interdependence of the world’s economies.

48. The main difference between domestic and international businesses is that the latter crosses national boundaries.

Ans: True * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Page: See page 405 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization creates a variety of international business opportunities.

49. Importing involves buying goods from foreign companies for sale overseas.

Ans: False Page: See page 407 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

50. In global sourcing, firms purchase and sell goods and services around the world for local use.

Ans: False Page: See page 409 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is complicated by different legal and political systems.

51. A foreign subsidiary is a local operation in which a foreign firm owns at least 51%.

Ans: False Page: See page 408 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owened subsidiaries.

52. International franchising involves selling the right to use your name and operating methods to foreign companies.

Ans: True Page: See page 407 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

53. A foreign subsidiary can be created either by buying out an existing firm or by building a new firm from scratch.

Ans: True Page: See page 408 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owened subsidiaries.

54. One of the challenges to international business is the cultural relativism forced upon them by local laws and customs.

Ans: True Page: See page 413 Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: The actions of global corporations can be controversial at home and abroad.

55. If you purchase the latest CD from your favorite artist or the latest blockbuster DVD for a very low price while traveling internationally, you are likely facilitating the violation of intellectual property rights.

Ans: True Page: See page 409 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is complicated by different legal and political systems.

56. There are 90 members in the World Trade Organization.

Ans: False Page: See page 410 Level: Medium * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is complicated by different legal and political systems.

57. A multinational corporation is the same as a transnational corporation.

Ans: False Page: See page 412 Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Global corporations or MNC’s do substantial business in many countries.

58. Most multinational corporations retain strong national identities even while operating around the world.

Ans: True Page: See page 412 Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Global corporations or MNC’s do substantial business in many countries.

59. Host countries always complain that MNCs do not have respect for local customs.

Ans: False Page: See page 413 Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: The actions of global corporations can be controversial at home and abroad.

60. The Foreign Corrupt Practices Act can actually put U.S. firms at a competitive disadvantage in certain areas of the world.

Ans: True Page: See page 414 Level: Easy * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Managers of global corporations face a variety of ethical challenges.

61. Currency risk means that the amount you actually receive for your sale of products or services may vary depending on currency fluctuations.

Ans: True Page: See page 415 Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Planning and controlling are complicated in global corporations.

62. The most common multinational organizational structures are done by product and area.

Ans: True Page: See page 416 Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Organizing can be difficult in global corporations.

63. Being a loner, acting uncooperative, and being irritable are considered universal inhibitors of leadership success.

Ans: True Page: See page 417 Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Leading is challenging in global corporations.

Fill-in-the-Blank

64. __________ shifts local jobs in foreign locations to take advantage of lower-wage labor in other countries.

Ans: Outsourcing * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Page: See page 405 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization involves the growing interdependence of the world’s economies.

65. __________ is process of growing interdependence among elements of the global economy.

Ans: Globalization Page: See page 405 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization involves the growing interdependence of the world’s economies.

66. __________ is the form of international business involving the sale of domestically made goods in foreign markets.

Ans: Exporting Page: See page 407 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

67. A(n) __________ operates in a foreign country through co-ownership with local partners.

Ans: joint venture Page: See page 408 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

68. A local operation that is completely owned and controlled by a foreign company is called a(n) __________.

Ans: foreign subsidiary * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Page: See page 408 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

69. The acronym WTO stands for the __________.

Ans: World Trade Organization Page: See page 410 Level: Easy Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is complicated by different legal and political systems.

70. MNC is an acronym that stands for __________.

Ans: multinational corporation Page: See page 412 Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Global corporations or MNCs do substantial business in many countries.

71. __________ involves the use of laws and politically-driven tariffs to shield a country’s domestic businesses from foreign competitors.

Ans: Protectionism Page: See page 413 Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: The actions of global corporations can be controversial at home and abroad.

72. __________ is the term used to describe places in which employees are given low wages for long hours in poor, and often unsafe, working conditions.

Ans: Sweatshop Page: See page 414 * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Managers of global corporations face a variety of ethical challenges.

73. The possible loss of profits because of fluctuations in exchange rates is called __________.

Ans: currency risks Page: See page 415 Level: Easy Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Planning and controlling are complicated in global corporations.

74. __________ forecasts how political events may impact foreign investments.

Ans: Political-risk analysis Page: See page 415 Level: Medium Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Planning and controlling are complicated in global corporations.

Essay

75. What are the pros and cons of conducting business internationally?

Ans: Pros – profit potential, access to new consumer and capital markets, lower material and labor costs. Cons – varying laws and regulations, political risks, currency risks, management challenges.

Page: See pages 405-408, 415 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: Globalization involves the growing interdependence of the world’s economics.

Section Reference: Globalization creates a variety of international business opportunities.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

76. Define franchising and licensing. Explain the difference.

Ans: Franchising involves paying a fee for the rights to use another company’s name and operating methods. Licensing involves paying a fee for the rights to make or sell another company’s products. The difference is in the support provided and the use of the selling companies name and operating methods.

Page: See page 407 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by global sourcing, import/export, licensing, and franchising.

77. Define a joint venture and a foreign subsidiary and the differences between them.

Ans: A joint venture is a partnership between two companies. The purpose of the partnership is to combine the resources of the partners in order to accomplish business objectives that neither company could accomplish alone. The partnership is usually in the form of a newly formed company called a joint venture. Each of the two partners owns a part of the new joint venture.

A foreign subsidiary is a company in a foreign land that is wholly owned by the parent company. There is no partnership.

Joint ventures have the advantage that the risks, resources, and rewards of the venture are shared. The disadvantage is that neither partner has complete control over the joint venture’s operations. This can result in difficult management situations. On the other hand, the foreign subsidiary has none of these problems, but the costs and risks are much higher than for a joint venture.

Page: See page 408 Level: Medium Learning Objective 1: Discuss ways that globalization affects international business.

Section Reference: International business is done by joint ventures and wholly owned subsidiaries.

78. Define and differentiate between multinational and transnational corporations.

Ans: Both multinational and transnational corporations are international businesses. They both have extensive operations in foreign countries. The difference is in how they think.

Multinational corporations tend to think locally in that they think of themselves as American companies or German companies, etc. Transnational companies like to think of themselves as global companies without an identifiable country of origin.

Page: See page 412 Level: Easy * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 2: Understand what global corporations are and how they work.

Section Reference: Global corporations or MNCs do substantial business in many countries.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

File: mod18, Chapter 18: Entrepreneurship and Small Business

Multiple Choice

1. A person who is willing to pursue opportunities that others see as problems or threats is a(n) __________. a) business person b) fool c) entrepreneur d) banker Ans: c Page: See page 424 Level: Easy Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: What is entrepreneurship and who are entrepreneurs?

2. People aged __________ are the most entrepreneurial active in the United States. a) 25-34 b) 45-54 c) 55-64 d) 75-84 Ans: c Page: See page 424 Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: What is entrepreneurship and who are entrepreneurs?

3. __________ is dynamic risk-taking, creative, growth oriented behavior. a) Business b) Capitalism c) Investing d) Entrepreneurship Ans: d Page: See page 424 Level: Easy * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: What is entrepreneurship and who are entrepreneurs?

4. The first person to enter a new market is said to have a __________. a) first mover advantage b) good time c) difficult time d) disadvantage Ans: a Page: See page 425 Level: Easy Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Entrepreneurs are risk takers who spot and pursue opportunities.

5. Employees in large corporations who take significant risk and display entrepreneurial behavior are called __________.* a) entrepreneurs b) senior managers c) intrapreneurs d) venture capitalists Ans: c Page: See page 427 Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

6. Research indicates that while not absolutely required, most entrepreneurs have which of the following trait(s)? a) An external locus of control b) A low need for achievement c) A discomfort with uncertainty d) Self-confidence and self-reliance Ans: d Page: See page 428 Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Entrepreneurs often share similar personality traits. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

7. When people start new businesses because they have few or no other options, it is called __________. a) socialism b) capitalism c) small business d) necessity-based entrepreneurship Ans: d Page: See page 428 Level: Easy Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

8. Potential entrepreneurs often possess all of the following characteristics EXCEPT: a) a high need for achievement. b) an intolerance for ambiguity. c) flexibility. d) a high energy level.

Ans: b Page: See page 428 Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Entrepreneurs often share similar personality traits.

9. Minority entrepreneurs create almost __________ million jobs. a) 2 b) 6 c) 10 d) 20 Ans: b Page: See page 429 Level: Easy Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

10. Small business ownership offers great opportunities, with the fastest growing segment being __________ owned businesses.* a) women * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

b) Hispanic-American c) African-American d) Asian-American Ans: c Page: See page 429 Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

11. Entrepreneurship that is targeted at solving the problems of the poor and disadvantaged is called __________ entrepreneurship.* a) minority b) social c) disadvantaged d) welfare Ans: social Page: See page 430 Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Social entrepreneurs seek novel solutions to pressing social problems.

12. The main difference between “social entrepreneurs” and general business entrepreneurs is: a) their higher tolerance for ambiguity. b) their desire to take greater risks. c) a higher degree of self-motivation. d) their drive toward a social mission.

Ans: d Page: See page 430 Level: Easy Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Social entrepreneurs seek novel solutions to pressing social problems.

13. The U.S. federal agency responsible for defining and supporting small businesses is the __________. a) SBA * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

b) NSA c) SEC d) FDA Ans: a Page: See page 433 Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses are mainstays of the economy.

14. Small businesses are defined as having less than__________employees.* a) 25 b) 50 c) 100 d) 500 Ans: d Page: See page 433 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses are mainstays of the economy.

15. 87% of small businesses employ less than __________ people. a) 5 b) 10 c) 15 d) 20 Ans: d Page: See page 433 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses are mainstays of the economy.

16. The U.S. government defines a small business as a __________.* a) publicly held company b) new venture c) corporation d) privately owned and operated business Ans: d * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Page: See page 433 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses are mainstays of the economy.

17. Small business makes up at least __________ percent of U.S. companies.* a) 60 b) 70 c) 80 d) 90 Ans: d Page: See page 433 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses are mainstays of the economy.

18. Small business employs over __________ percent of America’s private workers.* a) 50 b) 60 c) 70 d) 80 Ans: a Page: See page 433 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses are mainstays of the economy.

19. In the stage model of business life-cycles presented in your text, which stage sees major growth and an increase in structural complexity? a) Majority stage b) Breakthrough stage c) Post maturity stage d) Birth stage Ans: b Page: See page 434 Level: Easy Learning Objective 2: Discuss small business and how to start one. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Section Reference: Small businesses must master three life-cycle stages.

20. At what stage in the life-cycle of a business is professional management experience the most important?* a) Birth b) Breakthrough c) Maturity d) All of the above Ans: b Page: See page 434 Level: Hard Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses must master three life-cycle stages.

21. The __________ stage of the life-cycle of an entrepreneurial firm involves refining the strategy, investing wisely, and staying flexible.* a) birth b) breakthrough c) maturity d) All of the above.

Ans: c Page: See pages 434-435 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses must master three life-cycle stages.

22. Most businesses in the U.S. are controlled by: a) families. b) governments. c) big corporations. d) other small businesses.

Ans: a Page: See page 435 Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: Family-owned businesses can face unique challenges.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

23. A firm in the “birth” stage of its life cycle should focus on: a) becoming profitable. b) refining the strategy. c) finding the money. d) growing.

Ans: c Page: See page 434 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses must master three life-cycle stages.

24. Family businesses have many problems. The issue, who will run the business when the current family head leaves, is called a __________ problem. a) follow through b) succession c) follow up d) resignation Ans: b Page: See page 436 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Family-owned businesses can face unique challenges.

25. According to the U.S. government, at least __________ percent of small businesses fail in their first five years.* a) 60 b) 70 c) 80 d) 90 Ans: a Page: See page 435 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Family-owned businesses can face unique challenges.

26. Common reasons for small business failures include all of the following EXCEPT: * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

a) lack of experience b) lack of strategy c) poor financial controls d) moderate growth rate Ans: d Page: See page 436 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Most small businesses fail within five years.

27. A plan to determine how the leadership of a family owned business will transition is called a(n) ___________ plan. a) business b) operating c) succession d) strategic Ans: c Page: See page 436 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Family-owned businesses can face unique challenges.

28. A real indication of a problem with family owned businesses is that only three percent are expected to survive beyond the __________ generation. a) first b) second c) third d) fourth Ans: c Page: See page 436 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Family-owned businesses can face unique challenges.

29. Most of the failures of small start-up companies can be related to __________.* a) finding the money to start the business b) inferior product ideas * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

c) lack of professional management skills d) failing to do an IPO Ans: c Page: See page 437 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Most small businesses fail within five years.

30. All of the following should be involved in a business plan EXCEPT: a) an executive summary. b) the business fundamentals. c) careful organization. d) long and detailed analysis to cover all potential questions.

Ans: d Page: See page 438 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: A small business should start with a sound business plan.

31. A small business that consists of an individual or man and wife only is called a __________.* a) partnership b) general partnership c) sole proprietorship d) corporation Ans: c Page: See page 439 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

32. The business structure that gives you the most control but that carries the greatest risk is the __________. a) corporation b) sole proprietorship c) general partnership d) limited partnership * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

c) limited liability corporation Ans: b Page: See page 439 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

33. When two or more people agree to contribute resources to start and operate a business, it is called a __________. a) partnership b) limited liability company c) sole proprietorship d) x corporation Ans: a Page: See page 439 Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

35. The two types of partnerships are __________ and __________.* a) S corporation; corporation b) specific; general c) general; limited d) limited; specific Ans: c Page: See page 439 Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

35. A partnership in which owners share managerial responsibilities is called a __________. a) limited liability corporation b) specific partnership c) general partnership d) limited partnership * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: c Page: See page 439 Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

36. A partnership that consists of one general manager that manages the business and one or more partners that are not involved in the business is called a __________. a) general partnership b) limited partnership c) proprietorship d) limited liability corporation Ans: b Page: See page 439 Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

37. A business entity that is legally separated from the owners is a __________. a) corporation b) general partnership c) proprietorship d) limited partnership

Ans: a Page: See page 439 Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

38. A __________ combines the advantages of the sole proprietorship, partnership, and corporation. a) partnership b) limited liability company c) proprietorship d) x corporation Ans: b * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Page: See page 439 Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

39. John wants to start a new business, but he would like to keep the paperwork simple and avoid large legal fees. However, John does not want his personal property attached to the business. John should start his company as a __________. a) corporation b) partnership c) limited liability company d) proprietorship Ans: c Page: See page 439 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

40. Getting a loan from friends or banks in order to start a business is called __________. a) equity financing b) initial public financing c) debt financing d) leasing Ans: c Page: See page 440 Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

41. Raising money to start a business by selling a percentage of the company is called __________. a) debt financing b) initial public financing c) asset financing d) equity financing Ans: d Page: See page 440 * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

42. Which form of financing would give you the most control with less flexibility in cash flows?* a) Equity financing b) Money from a venture capitalist c) Debt financing d) An IPO Ans: c Page: See page 440 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

43. People who make a living by investing large sums of money in start-up businesses in exchange for an equity position in the company are called __________. a) venture capitalists b) equity investors c) bankers d) start-up managers Ans: a Page: See page 440 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

44. A wealthy private individual who invests in new ventures in return for equity in the company is called a(n) __________. a) equity investor b) angel investor c) new venture manager d) banker Ans: b Page: See page 440 Level: Medium * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

45. An angel investor who invests in a new venture is providing __________. a) debt financing b) partnership financing c) restricted financing d) equity financing Ans: d Page: See page 440 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

46. A(n) __________ is the first time that a company sells its stock to the public. a) stock exchange b) initial public offering c) private exchange d) stock auction Ans: b Page: See page 440 Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

47. The payoff for venture capitalists is at the occurrence of the __________. a) retirement of the debt b) government regulation c) business closure d) initial public offering Ans: d Page: See page 440 Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

48. Sue, as president of Sue’s Stuff LLC, owns 200,000 shares of the company. Sue will be a very wealthy person if the company has a successful __________. a) year b) joint venture c) equity investor d) initial public offering Ans: d Page: See page 440 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

True/False

49. Women owned businesses in the U.S. have declined in recent years.

Ans: False Page: See page 428 Level: Easy Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

50. Entrepreneurship is only involved in starting a new business from scratch.

Ans: False Page: See page 424 Level: Easy Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: What is entrepreneurship and who are entrepreneurs?

51. Fortunately, when it comes to financing, women have far more access to capital than men.

Ans: False Page: See page 424 Level: Medium * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: What is entrepreneurship and who are entrepreneurs?

52. Intrapreneurship is the same as entrepreneurship.

Ans: False Page: See page 427 Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

53. A college degree is necessary to be a successful entrepreneur.

Ans: False Page: See page 428 Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Entrepreneurs often share similar personality traits.

54. Research shows that entrepreneurs are born, not made.

Ans: False Page: See page 425 Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Entrepreneurs are risk takers who spot and pursue opportunities.

55. Entrepreneurship offers a good path to success for women and minorities.

Ans: True Page: See page 428 Level: Easy Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

56. A “small” business is actually one with 500 or fewer employees. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: True Page: See page 433 Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses are mainstays of the economy.

57. When a business gets to the “maturity” stage of development, it should focus on refining its strategy, continuing growth, and managing for success.

Ans: True Page: See page 435 Level: Hard Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses must master three life-cycle stages.

58. The Family Firm Institute reports that family businesses account for 78% of new jobs created in the United States and provide 60% of the nation’s employment.

Ans: True Page: See page 435 Level: Hard Learning Objective 2: Discuss small business and how to start one.

Section Reference: Family-owned businesses can face unique challenges.

59. Most new businesses fail within five years.

Ans: True Page: See page 436 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Most small businesses fail within five years.

60. A friend comments to you, “When things go right, nothing beats a family business.

But, when things go wrong, there is not much worse than a family business!” Based upon your reading, is this statement true or false?

Ans: True Page: See pages 435-436 * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Family-owned businesses can face unique challenges.

61. A good family succession plan won’t only spell out how the financial end of things will be handled, but it should also cover control and leadership issues.

Ans: True Page: See page 436 Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: Family-owned businesses can face unique challenges.

62. The main, if not only, reason for writing a business plan is to obtain financing.

Ans: False Page: See page 438 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: A small business should start with a sound business plan.

63. In a limited partnership, only the general manager is involved in the day-to-day operations; however, all partners share in the profits.

Ans: True Page: See page 439 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

64. An LLC is a hybrid structural form that gives advantages of sole proprietorships / partnerships for taxes and corporations for liability protection.

Ans: True Page: See page 439 Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

65. Equity financing provides control to the business owner which has to be repaid eventually.

Ans: False Page: See page 440 Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

66. When an IPO is successful, the market bids up the share price, thus increasing the value of the original shares held by the venture capitalist and the entrepreneur.

Ans: True Page: See page 440 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

Fill-in-the-Blank

67. A(n) __________ occurs when a firm moves faster than its competitors in spotting and exploiting a new market or previously unrecognized niche in the market.

Ans: first-mover advantage Page: See page 425 Level: Easy Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Entrepreneurs are risk takers who spot and pursue opportunities.

68. __________ display entrepreneurial behavior as employees of larger firms.

Ans: Intrapreneurs Page: See page 427 Level: Easy Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Entrepreneurs often share similar backgrounds and experiences. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

69. When an entrepreneur is forced to open their own business due to layoffs from their job and a low likelihood of replacing the job, inability to grow in their current career, or simply to put food on the table, they are engaged in __________ entrepreneurship.

Ans: necessity-based Page: See page 428 Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Women and minority entrepreneurs are growing in numbers.

70. __________ involves developing a business to solve pressing societal needs at home or abroad.

Ans: Social entrepreneurship Page: See page 430 Level: Easy Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: Social entrepreneurs seek novel solutions to pressing social problems.

71. The underlying reasons for most small business failures are __________ mistakes.

Ans: management Page: See page 436 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Most small businesses fail within five years.

72. In addition to all of the normal operational challenges of small business, when you decide to go into business with siblings, parents, or relatives, you also face the possibility of __________ developing over the multiple relationships and issues that exist outside of the business, complicating the business relationships as well.

Ans: family feuds Page: See page 436 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Family-owned businesses can face unique challenges. * Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

73. A(n) __________ is a facility that offers services to help new businesses get established.

Ans: business incubator Page: See page 437 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Assistance is available to help small business get started.

74. The document that describes the goals of the firm, outlines how it intends to operate, and lays out the financial strategies is called a(n) __________.

Ans: business plan Page: See page 438 Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: A small business should start with a sound business plan.

75. A(n) __________ is when two or more people agree to contribute resources to start and operate a business together.

Ans: partnership Page: See page 439 Level: Hard Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

76. The organizational structure that exists as a legal entity separate from the ownership is called a(n) __________.

Ans: corporation Page: See page 439 Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

77. When you provide ownership shares in exchange for capital that does not have to be repaid in order to start or run your business, you are using __________ financing.

Ans: equity Page: See page 440 Level: Easy Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

78. Individuals and/or groups who make money by providing funds to new companies in exchange for an equity position and the hope of rising equity value are called __________.

Ans: venture capitalists or angel investors Page: See page 440 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

Essay

79. How would you evaluate your “fit” as an entrepreneur?

Ans: While there is no “right” answer here, thoughtful and appropriate responses will discuss personal evaluations of their locus of control; levels of self-confidence and need for achievement; amounts of energy, determination, self-direction, resilience, adaptability; and their action orientation.

Page: See pages 424-427 Level: Medium Learning Objective 1: Understand the nature of entrepreneurship and entrepreneurs.

Section Reference: What is entrepreneurship and who are entrepreneurs?

Section Reference: Entrepreneurs are risk takers who spot and pursue opportunities.

Section Reference: Entrepreneurs often share similar backgrounds and experiences.

80. Compare and contrast the various structural options open to a small business organization.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

Ans: Sole proprietorships offer ease, simplicity, and control versus limited resources and high risk and liability. Partnerships offer ease, an increase in resources, and shared responsibility versus less control, risk, and responsibility for the actions of your partners, at least to the extent of your investment in the case of a limited partner. Corporations offer organizational flexibility and limited liability versus cost, complexity, and tax issues. Limited Liability Companies offer the benefits of Sole Proprietorships and Partnerships while providing the personal liability protection of a corporation.

Page: See page 439 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different forms of small business ownership.

81. Define and characterize the various stages of a business life-cycle.

Ans. The stages of the business life-cycle are Birth, Breakthrough, and Maturity.

The Birth stage is the very beginning of the company. Key tasks in this stage are securing the money to fund the business, setting up the firm and establishing a customer base.

The Breakthrough stage is a period of high growth. Key tasks in this stage are achieving profitability, financing the growth and managing an increasingly complex and rapidly changing environment.

The Maturity stage is a stage of slower growth and profitability. Key tasks in this stage are competing effectively, maintaining a strong management team and finding new growth opportunities.

Page: See pages 434-435 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Small businesses must master three life-cycle stages.

82. What are the main causes of small business failures and what is the number one factor behind these causes?

Ans: The causes of small business failures include lack of experience, lack of expertise, lack of strategy, poor financial planning and control, rapid growth, lack of full commitment and ethical failure. The number one factor contributing to these causes is insufficient professional management experience.

Page: See pages 436-437 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: Most small businesses fail within five years.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website

83. What are the various means to fund new ventures? Define them and describe their advantages and disadvantage.

Ans: The means of funding new ventures are debt financing, equity financing, angel investors and venture capital.

Debt financing involves borrowing money from friends and banks. The advantage of this type of financing is that you maintain complete control of the company. The disadvantage is that you have to pay back the loan plus interest. This could put a drain on cash flow.

Equity financing involves selling a percent of the company. The advantage of this type of funding is that you do not have to pay back the money raised. The disadvantage is that you can lose control of the company if you do not maintain majority ownership.

Angels are a source of equity financing. They are private individuals who put moderate amounts of money into the company in the very early stages in exchange for a share of the company. The advantage and disadvantage are the same as that for equity financing.

Venture Capitalists are professional investors who put large sums of money into the new venture in exchange for a significant share of the company. The advantage and disadvantage are the same as that for equity financing except that the risk of losing control of the company is much greater.

Page: See page 440 Level: Medium Learning Objective 2: Discuss small business and how to start one.

Section Reference: There are different ways of financing a small business.

* Note to Professor: All questions marked with an asterisk * are also questions that appear in the student quizzes for this text that are posted on the student companion website