Management, 15th Edition
By Stephen P. Robbins
Email: richard@qwconsultancy.com
Exam Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In today's workplace, ________. 1) _______ A) women are more likely than men to be promoted into management B) most organizations have eliminated the title of manager C) women tend to be more effective supervisors than men D) many employees perform work that in the past was considered managerial activities 2) Because this is her first job, Melanie was unclear about what managers actually do. Fortunately her training materials explained that a manager's job focuses on ________. A) helping others accomplish their work goals B) performing clerical duties C) supervising groups rather than individual employees D) personal achievement
2) _______
3) An individual who works with and through other people by coordinating their work activities in order to accomplish organizational goals is ________. A) an assembly line worker B) a salesperson C) a laborer D) a manager
3) _______
4) As part of the orientation for her internship, Rebecca was informed that ________ are the people who direct the activities of others in an organization. A) line workers B) subordinates C) managers D) directors
4) _______
5) The organizational chart shows titles such as front-line manager, plant manager, and vice president of operations. It is very likely this organization has a ________. A) modern matrix structure B) flexible structure C) traditional committee structure D) traditional pyramid structure
5) _______
6) First-line managers are typically those who ________. A) perform the same work as the people they manage but earn more money B) are at the top of the organizational chart C) are typically involved with producing the organization's products or providing its service D) are the first persons new hires meet
6) _______
7) Supervisor is another name for ________. A) middle manager C) team leader
7) _______
8) A ________ is an example of a first-line manager. A) regional manager C) store manager
B) top manager D) first-line manager 8) _______ B) shift manager D) division manager
9) Kelly, a production supervisor, is responsible for ten employees who assemble components into a finished product. Kelly is a ________. A) top manager B) middle manager C) first-line manager D) nonmanagerial employee
9) _______
10) Managers with titles such as regional manager, project leader, or division manager are ________.
10) ______
A) top managers C) production managers
B) middle managers D) first-line managers
11) Ben, a production plant manager, reports to Dan, a regional manager. Ben and Dan are ________. A) top managers B) first-line managers C) supervisors D) middle managers
11) ______
12) ________ are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. A) Research managers B) Top managers C) Production managers D) Middle managers
12) ______
13) Tom is responsible for project managers who supervise others who perform manual work. He reports to a vice president on another continent. Tom is a ________. A) nonmanager B) first-line manager C) top manager D) middle manager
13) ______
14) ________ have titles such as executive vice president, chief operating officer, and chief executive officer. A) Top managers B) First-line managers C) Middle managers D) Supervisors
14) ______
15) Kenneth is a vice president of operations. His position would be regarded as a ________. A) middle manager B) first-line manager C) top manager D) supervisor
15) ______
16) Blue Fin and ChrisCraft, two boat manufacturers, have merged. Top managers now must decide how the work will be divided and who will do what work in the merged firm. The pre-merger firms, and the merged firm, are each examples of ________. A) organizations B) coalitions C) affinity groups D) strategic partnerships
16) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 17) Today's managers are just as likely to be women as they are men.
17) ______
18) A manager must coordinate and oversee the work of other people so that organizational goals can be accomplished.
18) ______
19) A manager's job is all about personal achievement.
19) ______
20) In traditionally structured organizations, managers can be classified as first-line managers, middle managers, or top managers.
20) ______
21) Middle managers are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization.
21) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 22) Explain briefly how the definition of a manager has changed over time. 23) Describe and provide examples of first-line, middle, and top managers. TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
24) Increased environmental complexity and uncertainty make the manager's job even more important now than it was 20 or 30 years ago.
24) ______
25) Low-level managers have very little impact on the organization's performance.
25) ______
26) A great manager can inspire employees professionally and personally.
26) ______
27) Managers play an important role in dealing with various challenges being faced by organizations today.
27) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 28) Identify and discuss three reasons managers are still important even in the changing organizational structures in use today. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 29) Time should be considered a(n) ________ resource. 29) ______ A) diminishing B) limited C) abundant D) renewable 30) One method to become more efficient in managing your time is to ________. A) shorten deadlines so you will be pressed to complete tasks early B) classify each activity or task as A, B, or C C) enlist the aid of a management coach to keep you on task D) schedule more in one day than you can reasonably expect to finish
30) ______
31) Technology makes it easier to stay connected but ________. A) it raises expectations on the part of those to whom we are connected B) technology fails, batteries lose power, and their effectiveness wanes C) it also presents constant distractions, making it difficult to stay on task D) there is always the risk of security breaches and the theft of information necessary for good time management practices
31) ______
32) Andrew is reviewing next week's orders, scheduling orders to machines, and assigning employees to run those machines. Andrew is engaged in ________. A) leading B) controlling C) planning D) organizing
32) ______
33) Donald's ability to complete activities efficiently and effectively with and through other people is known as ________. A) delegation B) entrepreneurship C) management D) leadership
33) ______
34) ________ involves ensuring that work activities are completed efficiently and effectively by the people responsible for doing them. A) Leading B) Planning C) Organizing D) Managing
34) ______
35) Which one of the following is an example of an efficient manufacturing technique? A) Increasing product reject rates. B) Meeting customers' rigorous demand. C) Reducing the amount of scrap created in the process of making a product. D) Increasing the amount of time to manufacture products.
35) ______
36) Wasting resources is considered to be an example of ________. A) ineffectiveness B) ineffableness C) inefficacy
36) ______ D) inefficiency
37) An automobile manufacturer increased the total number of cars produced while keeping the production costs the same. The manufacturer increased its ________. A) effort B) effectiveness C) efficiency D) equity
37) ______
38) Ellen's ability to produce the same amount of product with fewer personnel is a reflection of her ________. A) leadership B) organizing skills C) efficiency D) effectiveness
38) ______
39) Effectiveness is associated with ________. A) doing the right things C) decreasing production time
39) ______ B) reducing inventory D) doing things right
40) Whereas ________ is concerned with the means of getting things done, ________ is concerned with the ends, or attainment of organizational goals. A) effort; efficiency B) effectiveness; efficiency C) efficiency; effectiveness D) efficiency; experience
40) ______
41) The fact that Eileen achieves her departmental goals is an indication of her ________ as a manager. A) leadership B) effectiveness C) attention to detail D) efficiency
41) ______
42) If your team quickly painted the wall but discovered afterward it was the wrong wall, your team would be ________. A) efficient and effective B) efficient but ineffective C) effective but inefficient D) neither effective nor efficient
42) ______
43) If Fiona accomplishes her projects with high-quality results, but takes more time than other managers in the process, as a manager she is ________. A) a leader, but not a top manager B) effective, but inefficient C) efficient, but ineffective D) project oriented, but not effective
43) ______
44) More than a hundred years ago, Henri Fayol proposed that managers performed five functions. They were ________. A) planning, organizing, commanding, coordinating, and controlling B) planning, organizing, directing, evaluating, and controlling C) planning, organizing, directing, coordinating, and controlling D) organizing, directing, coordinating, evaluating, and controlling
44) ______
45) Today, the basic management functions include ________. A) planning, organizing, directing, and controlling B) planning, organizing, coordinating, and controlling C) planning, organizing, leading, and controlling D) planning, organizing, commanding, and coordinating
45) ______
46) Establishing strategies for achieving organizational goals is a part of the ________ function. A) leading B) organizing C) planning D) coordinating
46) ______
47) When Gavin decides how many units of output his employees should produce, he is performing which of the following management functions?
47) ______
A) Planning
B) Organizing
48) Organizing includes ________. A) motivating organizational members C) setting organizational goals
C) Controlling
D) Leading 48) ______
B) hiring organizational members D) determining who does what tasks
49) The human resources manager is meeting with the production manager to write job descriptions and to decide how to group jobs for a new production line. These two are engaged in ________. A) controlling B) organizing C) leading D) planning
49) ______
50) Two of Brent's subordinates have not been getting along, a situation that has now interfered with their productivity. When Brent meets with them to resolve the conflict, he is engaged in ________. A) controlling B) organizing C) planning D) leading
50) ______
51) Motivating subordinates is primarily associated with the management function of ________. A) directing B) planning C) organizing D) leading
51) ______
52) The ________ roles involve collecting, receiving, and disseminating information, according to Mintzberg's managerial roles. A) informational B) technical C) decisional D) interpersonal
52) ______
53) When Fred tells the employees that he is sure they can fulfill the schedule because they are good and skilled employees, he is performing which of the following management functions? A) Negotiating B) Controlling C) Leading D) Delegating
53) ______
54) When Brandi is sharing with her team members the information she received at this morning's production meeting, she is performing the Mintzberg role of ________. A) monitor B) disseminator C) liaison D) entrepreneur
54) ______
55) The process of monitoring, comparing, and correcting is called ________. A) evaluating B) leading C) planning
55) ______ D) controlling
56) When Joe checks the amount of output that the employees have completed and the number of units that have been rejected, he is performing which of the following management functions? A) Evaluating B) Monitoring C) Controlling D) Leading
56) ______
57) ________ developed a categorization scheme for defining what managers do, consisting of ten different but highly interrelated roles. A) Abraham Maslow B) Henry Mintzberg C) Peter Drucker D) Henri Fayol
57) ______
58) According to Mintzberg's managerial roles, the ________ roles are ones that involve people and other duties that are ceremonial and symbolic in nature. A) decisional B) interpersonal C) technical D) informational
58) ______
59) When the mayor officiates at the ribbon-cutting ceremony for the new bridge, he is performing one of Mintzberg's ________ roles. A) decisional B) informational C) organizing D) interpersonal
59) ______
60) The ________ role (as Mintzberg defined it) is more important for lower-level managers than it is for either middle- or top-level managers.
60) ______
A) figurehead
B) negotiator
C) disseminator
D) leader
61) Mark is vice president of finance. At his level of management, he is more likely to use the role of ________ than ________. A) leader; disseminator B) spokesperson; negotiator C) disseminator; leader D) figurehead; liaison
61) ______
62) Connie has an idea for a new product she would like to produce and market. Mintzberg would consider the activities necessary to form and launch her company to be part of the ________ role. A) planning B) negotiator C) resource allocator D) entrepreneur
62) ______
63) Technical skills include ________. A) the ability to work well with individuals and groups B) job specific knowledge needed to proficiently perform work tasks C) experience gained by experiments that are used in performing managerial tasks D) skills managers use to think and to conceptualize about abstract and complex situations
63) ______
64) One of Calvin's employees is having problems with a production machine so Calvin helps him troubleshoot the problem. Calvin is using his ________ skills. A) conceptual B) negotiator C) interpersonal D) technical
64) ______
65) ________ skills tend to be more important for first-line managers since they manage employees who produce the organization's product or service the organization's customers. A) Human B) Technical C) Empirical D) Conceptual
65) ______
66) When Paul manages the employees who produce the product, he is utilizing his ________. A) interpersonal skills B) technical skills C) disseminator skills D) conceptual skills
66) ______
67) Understanding machine operating instructions would be considered a(n) ________ skill for a production manager. A) conceptual B) interpersonal C) technical D) empirical
67) ______
68) ________ skills involve the ability to work well with other people, both individually and in a group. A) Technical B) Assessment C) Interpersonal D) Planning
68) ______
69) When Michael meets with the human resources manager to discuss a complaint filed by one of the employees in the production department, he requires which of the following managerial skills? A) Negotiator skills B) Conceptual skills C) Interpersonal skills D) Disturbance handler skills
69) ______
70) When Sam Walton visited his Walmart stores, he would often lead the employees in cheers and give inspiring speeches. Sam knew the importance of ________ skills. A) interpersonal B) decisional C) technical D) conceptual
70) ______
71) Ralph's search for new technologies that can be used in the production processes of his plant is an example of which type of management skill? A) Conceptual B) Monitor C) Effectiveness D) Communication
71) ______
72) Which one of the following is true concerning the three managerial skills? A) Conceptual skills are most important for lower-level managers. B) Technical skills tend to be most important for middle-level managers. C) Technical skills increase and conceptual skills decrease in importance as a manager climbs the organizational chart. D) Interpersonal skills remain equally important to all levels of management.
72) ______
73) Because Sterling is a shift manager, ________. A) his technical skills are of the utmost priority B) his interpersonal skills are not important C) his conceptual skills are of the utmost priority D) he need not have any empirical skills
73) ______
74) Terry has recently been promoted from shift manager to department manager. As a result, ________. A) the importance of his interpersonal skills is reduced B) his conceptual skills are going to take the priority C) his empirical skills are going to be most important D) the importance of his technical skills is reduced
74) ______
75) The CEO of MindWerks must understand the industry in which his business competes, the future of that industry, and the competition. This requires strong ________ skills. A) conceptual B) technical C) controlling D) interpersonal
75) ______
76) Ethan is the president of his organization. Therefore, ________. A) his interpersonal skills are not important B) conceptual skills are the most important skills that Ethan requires C) he should be very sound in his technical skills D) he can manage with limited financial skills
76) ______
77) Managers with good ________ skills know how to communicate, motivate and lead to get the best out of their people. A) interpersonal B) empirical C) technical D) conceptual
77) ______
78) Conceptual skills involve ________. A) managing employees who use tools to produce the organization's products B) thinking about abstract and complex situations C) inspiring enthusiasm and trust among employees D) communicating with customers
78) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 79) Effectiveness refers to getting the most output from the least amount of input.
79) ______
80) Efficiency is described as "doing things right."
80) ______
81) Determining who reports to whom is part of the planning function of management.
81) ______
82) Directing and motivating are part of the organizing function of management.
82) ______
83) The four contemporary functions of management are planning, organizing, commanding, and controlling.
83) ______
84) As part of Dave's controlling function of management, he must monitor and evaluate performance.
84) ______
85) Conceptual skills are less important to top managers.
85) ______
86) According to Mintzberg, the leader role is more important for higher-level managers because they have responsibility for more of the organization.
86) ______
87) Figurehead, leader, and liaison are all informational managerial roles according to Mintzberg.
87) ______
88) Disturbance handler is one of Mintzberg's interpersonal roles.
88) ______
89) According to Robert L. Katz, managers need to have technical, interpersonal, and conceptual skills.
89) ______
90) Technical skills become less important as a manager moves into higher levels of management.
90) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 91) Briefly discuss the difference between efficiency and effectiveness. 92) List and explain the four basic functions of management. 93) List the ten managerial roles developed by Mintzberg. 94) Describe the three main types of managerial skills identified by Robert Katz. Which skills are most important to each level of management, and why? MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 95) Examples of new technologies that are changing the way managers work include;________. 95) ______ A) artificial intelligence B) cloud computing C) robotics D) all of these 96) Disruptive innovations; ________. A) are always beneficial C) rarely occur in today's world
96) ______ B) can make a product obsolete D) have little impact on managers
97) Social media is a communications tool which should be ________. A) used to foster cooperation and collaboration B) used to publish one-way messages from managers to employees C) banned from the workplace D) limited only to top managers
97) ______
98) Which of these examples that a manager might encounter deals with ethical issues? A) An employee is terminated for poor performance. B) A major drug company increases prices by 300% to increase profits. C) A bank increases consumer interest rates when market interest rates go up. D) Product sales increase by 50% due to strong consumer demand.
98) ______
99) Today's manager must deal with a host of new challenges that include ________. A) how to organize operations B) increasing production efficiency C) greater political uncertainty D) staffing and employee issues
99) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 100) One of the most difficult aspects of the increasing use of technology in the workplace has been to make employees comfortable around robots.
100) _____
101) Innovation is confined to high-tech and other technologically sophisticated organizations.
101) _____
102) Firms that compete in non-technology markets, such as retailers, need not concern themselves with innovation.
102) _____
103) In order for organizations to survive successfully, managers must create a customer-responsive organization.
103) _____
104) Because of the advances in social media and the extensive use of technology in business communications, social skills have diminished in importance in the workplace.
104) _____
105) Managers must understand and manage both the power and the peril of social media.
105) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 106) Briefly describe the importance of disruptive innovation to the manager's job. 107) In a short essay, describe the importance of customers to the manager's job. 108) Select three of the focuses of today's managers and discuss its importance to the success of business. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 109) Management is needed in all types and sizes of organizations, at all organizational levels and in 109) _____ all organizational work areas, and in all organizations, no matter where they are located. This principle is known as the ________. A) neutrality of management B) universality of management C) reality of management D) impartiality of management 110) Which one of the following represents one of the challenges of management? A) Helping others find meaning and fulfillment in their work. B) Creating an environment in which organizational members can do their best work. C) Influencing organizational outcomes. D) Having to deal with a variety of personalities.
110) _____
111) Which one of the following represents one reward of being a manager? A) Receiving recognition in the organization. B) Motivating workers in chaotic situations. C) Performing duties that are more clerical than managerial. D) Operating with limited resources.
111) _____
112) The universality of management means that ________. A) any manager can work in any organization and perform any management function B) all managers in all organizations perform the same quantity of managerial functions C) all managers in all organizations perform managerial functions in similar ways D) all managers in all organizations perform the four management functions
112) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 113) Management is universally needed in all organizations.
113) _____
114) Research shows that the quality of management has little impact on the success of the business.
114) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 115) List at least five rewards of being a manager. 116) What is universality of management? Why is it important? MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 117) Effectively dealing with organizational politics helps you ________. 117) _____ A) get better performance evaluations B) get promoted despite qualifications C) find ways to work less D) develop powerful allies
1) D 2) A 3) D 4) C 5) D 6) C 7) D 8) B 9) C 10) B 11) D 12) B 13) D 14) A 15) C 16) A 17) TRUE 18) TRUE 19) FALSE 20) TRUE 21) FALSE 22) Managers used to be defined as the organizational members who told others what to do and how to do it. In the past, it was easy to differentiate managers from nonmanagerial employees. Nonmanagers were organizational members who worked directly on a job or task and had no one reporting to them. Managers were those who supervised other employees. Today, the changing nature of organizations and work has blurred the distinction between managers and nonmanagerial employees. Many traditional nonmanagerial jobs now include managerial activities. Most employees are multi-skilled and are being cross trained. Within a single shift, an employee can be a team leader, equipment operator, maintenance technician, quality inspector, or improvement planner. 23) a. First-line managers are the lowest level of management and manage the work of nonmanagerial individuals who are directly involved with the production or creation of the organization's products or servicing its customers. First-line managers are often called supervisors or even shift managers, district managers, department managers, or office managers. b. Middle managers are found between the lowest and top levels of the organization. These managers manage the work of first-line managers and may have titles such as department head, project leader, store manager, or division manager. c. Top managers are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. These individuals typically have titles such as executive vice president, president, managing director, chief operating officer, or chief executive officer. 24) TRUE 25) FALSE 26) TRUE 27) TRUE 28) a. The first reason why managers are important is because organizations need their managerial skills and abilities more than ever in uncertain, complex, and chaotic times. As organizations deal with today's challenges—changing workforce dynamics, the worldwide economic climate, changing technology, ever-increasing globalization, and so forth—managers play an important role in identifying critical issues and crafting responses. b. Another reason why managers are important to organizations is because they're critical to getting things done. They create and coordinate the workplace environment and work systems so that others can perform those tasks. Or, if work isn't getting done or isn't getting done as it should be, they're the ones who find out why and get things back on track. And these managers are key players in leading the company into the future.
c. do matter to organizations. The single most important variable in employee productivity and loyalty isn't pay or Final benefits or workplace environment—it's the quality of the relationship between employees and their direct ly, supervisors. The way a company manages and engages its people can significantly affect its financial performance. mana Leadership is the single largest influence on employee engagement. Managerial ability is important in creating gers organizational value. 29) B 30) B 31) C 32) C 33) C 34) D 35) C 36) D 37) C 38) C 39) A 40) C 41) B 42) B 43) B 44) A 45) C 46) C 47) A 48) D 49) B 50) D 51) D 52) A 53) C 54) B 55) D 56) C 57) B 58) B 59) D 60) D 61) C 62) D 63) B 64) D 65) B 66) B 67) C 68) C 69) C 70) A 71) A 72) D 73) A 74) D 75) A
76) B 77) A 78) B 79) FALSE 80) TRUE 81) FALSE 82) FALSE 83) FALSE 84) TRUE 85) FALSE 86) FALSE 87) FALSE 88) FALSE 89) TRUE 90) TRUE 91) a. Efficiency refers to getting the most output from the least amount of inputs. Because managers deal with scarce inputs-including resources such as people, money, and equipment-they are concerned with the efficient use of resources. It's often referred to as "doing things right"-that is, not wasting resources. For instance, efficient manufacturing techniques can be implemented by doing things such as cutting inventory levels, decreasing the amount of time to manufacture products, and lowering product reject rates. b. Effectiveness is often described as "doing the right things"-that is, doing those work activities that will help the organization reach its goals. For instance, goals can include meeting customers' rigorous demands, executing world-class manufacturing strategies, and making employee jobs easier and safer. Through various work initiatives these goals can be pursued and achieved. Whereas efficiency is concerned with the means of getting things done, effectiveness is concerned with the ends, or attainment of organizational goals. 92) The four basic functions of management are: (a) Planning, (b) Organizing, (c) Leading, and (d) Controlling. a. When managers engage in planning, they set goals, establish strategies for achieving those goals, and develop plans to integrate and coordinate activities. b. When managers organize, they determine what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. c. When managers engage in leading, they motivate subordinates, help resolve work group conflicts, influence individuals or teams as they work, select the most effective communication channel, or deal in any way with employee behavior issues. d. When managers control, they ensure that goals are being met and that work is being done as it should be. They monitor and evaluate performance. They compare actual performance with the set goals. If those goals aren't being achieved, it's the manager's job to get work back on track. This process of monitoring, comparing, and correcting is the controlling function. 93) Mintzberg described ten managerial roles grouped around interpersonal relationships, the transfer of information, and decision making. A. The interpersonal roles are ones that involve people (subordinates and persons outside the organization) and other duties that are ceremonial and symbolic in nature. The three interpersonal roles include: a. figurehead b. leader c. liaison B. The informational roles involve collecting, receiving, and disseminating information. The three informational roles include: a. monitor b. disseminator c. spokesperson
C. ional roles entail making decisions or choices. The four decisional roles include: Final a. entrepreneur ly, b. disturbance handler the c. resource allocator decis d. negotiator 94) Robert L. Katz proposed that managers need three critical skills in managing: technical, interpersonal, and conceptual. a. Technical skills are the job specific knowledge and techniques needed to proficiently perform work tasks. These skills tend to be more important for first-line managers because they typically manage employees who use tools and techniques to produce the organization's products or service the organization's customers. Often, employees with excellent technical skills get promoted to first-line manager. b. Human skills involve the ability to work well with other people, both individually and in a group. Because all managers deal with people, these skills are equally important to all levels of management. Managers with good interpersonal skills get the best out of their people. They know how to communicate, motivate, lead, and inspire enthusiasm and trust. c. Conceptual skills are the skills managers use to think and to conceptualize about abstract and complex situations. Using these skills, managers see the organization as a whole, understand the relationships among various subunits, and visualize how the organization fits into its broader environment. These skills are most important to top managers. 95) D 96) B 97) A 98) B 99) C 100) FALSE 101) FALSE 102) FALSE 103) TRUE 104) FALSE 105) TRUE 106) Innovation means doing things differently, exploring new territory, and taking risks. It is not just for high-tech or other technologically sophisticated organizations. Innovative efforts can be found in all types of organizations. If a firm does not innovate, it undertakes great risks. Innovation is critical to today's organizations. Even if a specific organization is not adopting new technologies, the organization will be competing with firms that do utilize new technologies. One example given in the text is how traditional taxi companies have been affected by Uber and Lyft. Managers are continuously challenged to stay competitive using new technologies or challenged with finding ways to compete against new technologies or disruptive innovation. 107) Organizations need customers. Without them, most organizations would cease to exist. Yet, focusing on the customer has long been thought to be the responsibility of marketing types. However, employee attitudes and behaviors play a big role in customer satisfaction. Managers are recognizing that delivering consistent high-quality customer service is essential for survival and success in today's competitive environment and that employees are an important part of that equation. Managers must create a customer-responsive organization where employees are friendly and courteous, accessible, knowledgeable, prompt in responding to customer needs, and willing to do what's necessary to please the customer. 108) Students' answers will vary. a. Customer: By listening to customers, businesses can discover new opportunities for products and services. They may also discover why some customers remain loyal to the company and why others leave. b. Technology: Although technology cannot completely replace human interaction and judgment, it can automate routine and hazardous tasks, thereby freeing humans for more complex tasks. Technology can make humans more productive, reducing costs and increasing profitability. c. Social Media: More and more businesses are turning to social media as a way to connect to customers. Employees can use social media to support and promote their employer and to cooperate and collaborate with each other.
d. s in the organization. Customers demand new, better, more robust products and services. Innovation can provide Disru the competitive advantage necessary for continued success. Businesses also compete against disruptive innovation ptive and must learn ways to remain viable. innov e. Ethics: Doing what's right is becoming increasingly important given today's employee and consumer attitudes. ation: An ethical focus encompasses numerous issues including an increased focus on sustainability and creating an Inno ethical workplace. Customers expect businesses to manage themselves in such a way as to provide quality products vatio and services while using the smallest footprint possible, preserving resources for future generations, and treating n is everyone equally and with respect and dignity. critic f. Political uncertainty: Organizations are faced with increased political uncertainty, even in developed countries. al at New federal, state and city laws force organizations to adapt and change ways of doing business. New trade all agreements, trade disputes, and political structures change the cost and manner of doing business with other level countries. 109) B 110) D 111) A 112) D 113) TRUE 114) FALSE 115) Rewards of Being a Manager: a. Managers create a work environment in which organizational members can work to the best of their ability. b. Managers have opportunities to think creatively and use their imagination. c. Managers help others find meaning and fulfillment in work. d. Managers get to support, coach, and nurture others. e. Managers get to work with a variety of people. f. Managers receive recognition and status in organization and community. g. Managers play a role in influencing organizational outcomes. h. Managers receive appropriate compensation in the form of salaries, bonuses, and stock options. 116) Management is needed in all types and sizes of organizations, at all organizational levels and in all organizational work areas, and in all organizations, no matter where they're located. This is known as the universality of management. In all organizations, managers must plan, organize, lead, and control. Management is universally needed in all organizations. So it is necessary to find ways to improve the way organizations are managed. Organizations that are well-managed develop a loyal customer base, grow, and prosper, even during challenging times. Those that are poorly managed find themselves losing customers and revenues. By studying management and its universality, an individual will be able to recognize poor management and work to get it corrected. 117) D
Exam Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A problem can best be described as ________. 1) _______ A) a difference between current conditions and some desired state B) a loss of something of value C) a change from the past D) something bad that has happened 2) Which of the following statements is true concerning problem identification? A) Effectively identifying problems is not easy. B) A symptom and a problem are one and the same. C) Generally, what is a problem for one manager is a problem for all other managers. D) Problems are generally obvious.
2) _______
3) Sales of the high-end units have declined. The owners want Arnold, the CEO, to increase revenues to previous levels. His first action should be to ________. A) immediately begin production on the lowest cost model B) compare costs for three new models under development C) determine why sales are off D) identify previous sales levels
3) _______
4) Ridership on the city's public transportation buses has fallen for three weeks in a row. This is ________. A) a symptom B) neither a problem nor a symptom C) a problem D) a condition, but we need more information to determine whether it is a problem or a symptom
4) _______
5) After identifying a problem, the next step in the decision-making process is ________. A) developing alternatives B) analyzing alternatives C) allocating weights to decision criteria D) identifying decision criteria
5) _______
6) To determine the ________, a manager must determine what is relevant or important to resolving a problem. A) escalation of commitment B) cost of implementation C) decision criteria D) bounded rationality of a decision
6) _______
7) Belinda wants to introduce a new model to the product line. Three models are being developed. Belinda can choose only one. She has decided to focus on target market size, production costs, and net profits. These are Belinda's ________. A) problems B) criterion weights C) alternatives D) decision criteria
7) _______
8) Amanda, a single parent, is looking for a new job. Considering that she has two school-aged children, she is particularly keen on finding an employer who can provide her with alternative work arrangements such as flexible work hours and telecommuting. In terms of the decision-making process, these represent Amanda's ________. A) decision cri teria B) heuristics C) problems
8) _______
D) alternatives 9) Max is planning to go away to college next year and is currently trying to figure out to which colleges he should apply. He would like to major in English Literature at an accredited liberal arts college, but is also looking for a university that offers financial aid. In terms of the decision-making process, these represent Max's ________. A) problems B) alternatives C) heuristics D) decision criteria
9) _______
10) After identifying the decision criteria that are important or relevant to resolving a problem, the next step in the decision-making process is ________. A) analyzing the alternatives to solving the problem B) allocating weights to the criteria C) reducing the number of criteria through the process of elimination D) implementing the alternative
10) ______
11) Bryan must select a new supplier for lighting fixtures for his company's mobile homes. He has decided quality is more important than price but price is more important than lead times. Bryan will use these priorities to ________. A) allocate weights to the criteria B) develop alternatives C) set his decision criteria D) analyze alternatives
11) ______
12) Creativity is most essential in which of the following steps of the decision-making process? A) Allocating weights to the decision B) Analyzing alternatives criteria C) Developing alternatives D) Identifying decision criteria
12) ______
13) Carla is searching the Internet for sources of Himalayan salt to make bath salts. Carla is at the ________ step in the decision making process. A) allocate-weights B) identify-the-problem C) develop-alternatives D) identify-decision-criteria
13) ______
14) When the overhead cranes crashed into each other for the third time, Joe formed a team to look into ways to avoid future crashes. After a brainstorming session, the team settled on three ideas, any of which might work. The team has completed which step in the decision-making process? A) Implement an alternative B) Develop alternatives C) Analyze alternatives D) Select an alternative
14) ______
15) Carla has identified several possible sources for Himalayan salt to make her bath salts. Now she is comparing their prices, quality, and delivery times. At what step is she in the decision-making process? A) Implement the alternative B) Analyze alternatives C) Develop alternatives D) Select an alternative
15) ______
16) Carla discovered that the supplier with the highest quality also had the longest lead time. The supplier with the best lead time had the highest price. To help Carla make her decision, she should ________. A) check with the Better Business Bureau for customer complaints B) order a small quantity from each supplier for comparison C) multiply her ratings for each criteria by the weight for the criteria then sum the scores D) rely on customer reviews to guide her decision
16) ______
17) After Abby listened to the weather report this morning before work, she drove her car and carried an umbrella instead of riding her motorcycle. Whether she realizes it or not, Abby ________. A) evaluated a decision B) implemented a decision C) analyzed criteria D) assigned weights to criteria
17) ______
18) In the decision-making process, while ________, the decision maker puts the decision into action by conveying it to those affected by it and getting their commitment to it. A) selecting an alternative B) implementing an alternative C) evaluating a decision's effectiveness D) analyzing alternatives
18) ______
19) Which of the following is important in effectively implementing the chosen alternative in the decision-making process? A) Ignoring criticism concerning your chosen alternative. B) Evaluating each alternative by using the established criteria. C) Being creative while implementing the alternatives. D) Allowing those impacted by the outcome to participate in the process.
19) ______
20) Before actually putting the decision into action, the decision-maker may find it prudent to ________. A) alert external stakeholders that the problem has been solved B) develop the method of evaluating whether the decision is a good one C) check to make sure the conditions that existed at the time of the decision still exist, and make sure the decision is still the best one D) notify upper management that change is coming so they won't be blindsided
20) ______
21) The final step in the decision-making process is to ________. A) implement the chosen alternative B) determine the criteria for the next decision C) analyze the process of allocating weights to the decision criteria D) evaluate the outcome of the decision
21) ______
22) Joe's team implemented one of the ideas to avoid crane crashes. It is important for the team to evaluate the results because ________. A) another crane crash could cost the team their jobs B) the team wants to impress the plant manager C) results may vary from expectations D) the team was not sure their idea would work
22) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 23) The decision-making process begins by identifying decision criteria.
23) ______
24) A decision criterion defines what is important or relevant to resolving a problem.
24) ______
25) In the decision-making process, after allocating weights to the decision criteria, the decision maker lists viable alternatives that could resolve the problem.
25) ______
26) Once the alternatives to solving a problem have been identified, the next step in the decision-making process is selecting one of these alternatives.
26) ______
27) Implementing an alternative refers to the process of choosing the best alternative.
27) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 28) List and discuss the eight steps in the decision-making process. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 29) Managers are assumed to use ________ if they make logical and consistent choices to maximize 29) ______ value. A) evidence-based management B) bounded rationality C) rational decision making D) intuitive decision making 30) Dylan must choose among four candidates to fill his open accounting clerk position. If Dylan uses rational decision making, he will ________. A) rely on his initial impressions of the candidates to make this decision B) involve others in the interviewing process C) disregard the fact the one of the candidates is the owner's nephew D) base his decision on his extensive experience and accumulated judgment
30) ______
31) It is assumed that a rational decision maker ________. A) is unaware of all the possible alternatives and consequences B) is fully objective and logical C) is unlimited by his or her ability to process information D) faces unclear and ambiguous problems
31) ______
32) When managers make decisions that are rational but limited by their ability to process the information, they are following the concept of ________. A) escalation of commitment B) cognitive decision making C) intuitive decision making D) bounded rationality
32) ______
33) Evelyn's Internet search for information about "vendor for machine screws" yielded more than 100,000 items. Evelyn did not have time or resources to pursue each of these so she limited her search to only vendors in her state. By doing this, Evelyn used ________. A) perfect rationality B) intuition C) satisficing D) bounded rationality
33) ______
34) Managers cannot possibly analyze all information on all alternatives; they tend to ________, rather than ________. A) neutralize; satisfice B) satisfice; maximize C) maximize; satisfice D) satisfice; neutralize
34) ______
35) ________ results in a solution that is considered "good enough." A) Satisficing B) Intuition C) Linear thinking
35) ______ D) Escalating
36) Gilda has an idea that would streamline operations, reduce costs, and increase profits. Her idea requires the cooperation of several departments, some of which have demonstrated a resistance to change. By considering the context in which the changes must happen and the people in her organization, Gilda is using ________. A) positive employee relations B) bounded rationality C) evidence-based management D) intuition
36) ______
37) Abigail is shopping for a new copier for her company. She has set her price range between $5,000 and $6,000. The copier must handle a minimum of 10,000 copies per month and have a useful life expectancy of five years. If Abigail selects the first copier she finds that meets these criteria, we would say she is ________.
37) ______
A) using intuition C) using bounded rationality
B) satisficing D) using perfect rationality
38) Julie is keen on joining Columbia University to pursue a master's degree in economics. However, after three months of applying and waiting for an acceptance letter, she finally decides to attend NYU, which was one of her backup colleges. This is an example of ________. A) neutralizing B) satisficing C) minimizing D) maximizing
38) ______
39) Edgar hired a graduate from his alma mater, thinking he would be a successful first line supervisor. Unfortunately the new hire hasn't worked out as well as hoped. Edgar decided to invest time and money in training for the new hire but saw little improvement. Next he assigned a successful supervisor to mentor the young employee. The problems persisted. Edgar is displaying ________. A) bounded rationality B) irrational behavior C) escalation of commitment D) poor judgment
39) ______
40) Farrell has a knack for selecting candidates who become very successful workers. When asked how he does it, he answered that he "listened to his gut." Farrell is really ________. A) using bounded rationality B) using his intuition C) satisficing D) using perfect rationality
40) ______
41) Which of the following is an aspect of intuition? A) Experience-based decisions C) Quality-initiated decisions
41) ______ B) Programmed decisions D) Science-based decisions
42) Intuitive decision making ________. A) is the process of making decisions based on experience, feelings, and accumulated judgment B) generally results in poor decisions and hence managers should learn to ignore their gut feelings C) is the systematic use of the best available evidence to improve decision making practice D) complements rational decision making but not bounded rational decision making
42) ______
43) Farrah has called together her management team to review information about customer satisfaction gathered by an external research company. Farrah is engaging in ________. A) perfect rationality B) evidence-based management C) bounded rationality D) relationship management
43) ______
44) Relying on a network of individuals that are outside of organization's traditional set of decision makers is known as ________. A) crowdsourcing B) idea seeking C) externalizing D) outsourcing
44) ______
45) Crowdsourcing can be an effective decision making tool when a manager is attempting to find a ________. A) routine decision B) creative solution C) new hire D) rule of thumb
45) ______
46) In which of these decisions would crowdsourcing be particularly useful? A) Product development B) Routine decisions C) Technical issues in production D) Decisions where you have hard data
46) ______
47) One of the benefits of crowdsourcing is that you benefit from ________.
47) ______
A) the opinions of other like-minded thinkers B) the collective experience of outsiders C) groupthink D) the opinions of internal stakeholders TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 48) Managers use decision-making in every function, from planning to controlling.
48) ______
49) It is important that decision-makers ignore emotions when making business decisions so their decisions will be perceived as rational.
49) ______
50) One assumption of rational decision making is that the decision maker is not aware of all possible alternatives and consequences.
50) ______
51) According to the concept of bounded rationality, managers make decisions rationally, but are limited by their ability to process information.
51) ______
52) The phenomenon of escalation of commitment refers to an increased commitment to a previous decision despite evidence that it may have been wrong.
52) ______
53) Intuitive decision making complements rational decision making but not bounded rational decision making.
53) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 54) Briefly, discuss the assumptions of rationality and the validity of those assumptions. 55) What is meant by bounded rationality and satisficing? 56) Give an example of the use of bounded rationality. The example can be fictitious as long as it includes all the elements of bounded rationality. 57) What is intuitive decision making? How does intuition affect the process of making a decision? 58) Give an example of evidence-based management. Remember to include all of the essential elements. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 59) ________ are straightforward, familiar, and easily defined. 59) ______ A) Non-structured problems B) Structured problems C) Nonprogrammed problems D) Programmed problems 60) Garrett looked at the list of orders for the coming week and made out the production schedule. He has done this so many times he could do it in his sleep. This situation represents a(n) ________. A) programmed problem B) structured problem C) unstructured problem D) linear problem
60) ______
61) Structured problems align well with which type of decisions? A) Nonlinear B) Analogous C) Programmed
61) ______ D) Organic
62) A(n) ________ decision is a repetitive decision that can be handled by a routine approach. A) programmed B) unstructured C) nonprogrammed D) structured
62) ______
63) Harriet's machine has stopped working again. She consulted the operator's manual troubleshooting guide to find a solution. Harriet used a ________. A) structured decision B) programmed decision C) non-structured decision D) non-programmed decision
63) ______
64) When making a decision for a routine situation, which step in the decision making process can be skipped? A) Evaluate decision effectiveness B) Develop alternatives C) Implement the alternative D) Identify the problem
64) ______
65) A procedure is ________. A) an explicit statement that tells a manager what can or cannot be done B) a series of sequential steps a manager uses to respond to a structured problem C) subject to the interpretation of the decision maker D) used mainly for unstructured, rather than structured, problems
65) ______
66) One of the workers in Henry's department submitted his two weeks' notice so Henry needs to hire a replacement. The HR department issued a set of instructions Henry must follow to initiate the search for candidates. In other words, there is a ________ Henry must follow. A) procedure B) program C) practice D) policy
66) ______
67) A(n) ________ is an explicit statement that tells a manager what can or cannot be done. A) rule B) solution C) agenda D) objective
67) ______
68) "All employees must be at their work stations and ready to work by the time the buzzer sounds." This is an example of a ________. A) policy B) practice C) rule D) procedure
68) ______
69) "Smoking and the consumption of alcohol are strictly prohibited inside the work premises." This is most likely an example of a(n) ________. A) policy B) objective C) procedure D) rule
69) ______
70) A policy ________. A) specifically states what should or should not be done B) is a series of sequential steps a manager uses to respond to a structured problem C) is used when dealing with unstructured problems and non-programmed decisions D) typically serves as a guideline for decision making by setting general parameters
70) ______
71) "We expect to maintain the highest standards of quality in our workmanship." This is an example of a ________. A) rule B) policy C) practice D) procedure
71) ______
72) A(n) ________ typically contains an ambiguous term that leaves interpretation up to the decision maker. A) edict B) procedure C) policy D) rule
72) ______
73) Unstructured problems ________. A) refer to the usual problems faced by organizations B) are accompanied by ambiguous or incomplete information C) do not require the decision maker to go through an involved decision process D) are generally solved using procedures, rules, and policies
73) ______
74) After nearly 30 years of growth, sales at Ida's company have begun to decline. None of the managers have been able to determine the cause. Some say the entire economy is in recession; others blame a change in suppliers; still others say the work ethic among employees just isn't what it used to be. This is an example of a(n) ________ problem. A) non-programmed B) unstructured C) programmed D) structured
74) ______
75) Nonprogrammed decisions ________. A) are unique and nonrecurring B) are associated with clear and specific goals C) involve standardized solutions D) are usually made by lower-level managers
75) ______
76) When problems are ________, managers must rely on ________ in order to develop unique solutions. A) structured; nonprogrammed decision making B) unstructured; programmed decision making C) structured; pure intuition D) unstructured; nonprogrammed decision making
76) ______
77) What is the psychological orientation of a decision maker who makes a "maximin" choice? A) Idealist B) Optimist C) Realist D) Pessimist
77) ______
78) Lower-level managers typically confront ________. A) unstructured problems B) new and unusual problems C) nonprogrammed decisions D) programmed decisions
78) ______
79) Ian is a plant manager in a multi-site corporation. He frequently deals with situations involving new customers and new products. These are often ________. A) uncertain problems and linear decisions B) structured problems and programmed decisions C) non-linear problems and risky decisions D) unstructured problems and nonprogrammed decisions
79) ______
80) First-line managers tend to deal with problems that are ________ while upper-level managers handle the ________ problems. A) unstructured; structured B) machine-related; interpersonal C) routine and repetitive; unusual and difficult D) interpersonal; customer
80) ______
81) ________ is a situation in which a manager has the ability to make accurate decisions because the outcome of every alternative is known. A) Risk B) Bureaucracy C) Certainty D) Contingency
81) ______
82) It is time for Jane to order laminated plywood again. She typically orders from one of three vendors. She knows the price, delivery time, and quality of each vendor. In this situation, Jane has ________. A) certainty B) risk C) structure D) uncertainty
82) ______
83) The manager of an apparel store estimates how much to order for the current spring season
bas ed on
last 83) spring's sales figures. The store manager is operatin g under which of the followin g decisionmaking conditio ns? A) Certainty
___ ___
B) Uncertainty
C) Risk
D) Structure
84) ________ is a situation in which a decision maker cannot make reasonable probability estimates. A) Necessity B) Uncertainty C) Risk D) Certainty
84) ______
85) In the late 1970s, Apple launched the Apple computer for individual use. It was a radical concept; there was no precedent for this type of product. Under these circumstances, Apple faced a situation of ________. A) certainty B) necessity C) risk D) uncertainty
85) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 86) A programmed decision is a repetitive decision that can be handled by a routine approach.
86) ______
87) Rules and procedures are the same.
87) ______
88) A policy is an explicit statement that tells a manager what can or cannot be done.
88) ______
89) Nonprogrammed decision making relies on procedures, rules, and policies.
89) ______
90) Risk is the condition in which a decision maker is able to estimate the likelihood of certain outcomes.
90) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 91) Discuss structured problems, programmed decisions, unstructured problems, and nonprogrammed decisions. 92) Discuss the three types of programmed decisions that a manager depends on to resolve structured problems. 93) Discuss the three different decision-making conditions that managers usually face. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 94) Rules of thumb that managers use to simplify decision making are known as ________. 94) ______ A) folksonomies B) sophisms C) algorithms D) heuristics 95) "Red sky at night, sailor's delight; red sky at morning, sailor's warning" is an example of a ________.
95) ______
A) heuristic
B) practice
C) rule
D) proverb
96) Lucas always seems to "know" exactly what to do in any given situation. At least that's what he'll tell you. But his ideas don't always work and his overall performance as scored by his supervisor isn't nearly as great as he thinks it is. Lucas is exhibiting the ________. A) the anchoring effect B) overconfidence bias C) self-serving bias D) selective perception bias
96) ______
97) Many new car buyers choose to buy a car with little or no money down and payments for many years because of the ________. A) immediate gratification bias B) overconfidence bias C) framing bias D) availability bias
97) ______
98) The ________ describes how decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information. A) anchoring effect B) framing bias C) confirmation bias D) selective perception effect
98) ______
99) Sophie is in charge of recruitment at her company. During a particular interview, the first thing Sophie noticed about the applicant was that he was improperly attired. Though the candidate possessed the necessary qualifications and effectively answered all her questions, Sophie rejected him. This is an example of the ________. A) anchoring effect B) self-serving bias C) confirmation bias D) availability bias
99) ______
100) "There are no coincidences. If something bad has happened to you, you must have done something to deserve it." This statement might be made by someone with the ________. A) availability bias B) randomness bias C) framing bias D) self-serving bias
100) _____
101) Lila believes the global climate is changing. Every storm, every volcano eruption, every earthquake is, in her mind, evidence of this climate change. Lila has fallen victim to ________ bias. A) framing B) confirmation C) selective perception D) representation
101) _____
102) When decision makers seek out information that reaffirms their past choices and discount information that contradicts past judgments, they are exhibiting the ________ bias. A) representation B) hindsight C) confirmation D) availability
102) _____
103) Beth hired Tom, trained him, coached him, and expected he would be her eventual replacement when she moved up in the company. She noted each of his accomplishments with pride but wrote off as vicious gossip the comments from Tom's co-workers that he was making too many mistakes. Beth is experiencing the ________. A) selective perception bias B) anchoring effect C) confirmation bias D) framing bias
103) _____
104) Mildred was persuaded by a fast-talking salesperson to carry an expensive brand of yarns in her retail needlecraft shop. Seldom does a customer buy this brand, but on those rare occasions Mildred tells herself she made the right decision. The yarns have been sitting on the shelf for several months and she has yet to profit from them. Mildred suffers from the ________. A) confirmation bias B) hindsight bias
104) _____
C) immediate gratification bias
D) selective perception bias
105) The ________ occurs when decision makers select and highlight certain aspects of a situation while excluding others. A) availability bias B) framing bias C) confirmation bias D) representation bias
105) _____
106) The Prime Minister of Transylvania prefers darkened rooms, flinches in bright light, and has unusually long incisors. Despite his long and successful career, his political opponents claim he is a vampire. This is an example of the ________. A) representation bias B) randomness bias C) confirmation bias D) selective perception bias
106) _____
107) It hasn't rained in several days; therefore it is unlikely to rain today. This is an example of the ________. A) randomness bias B) representation bias C) self-serving bias D) availability bias
107) _____
108) The last time the Whigs took over Congress, stock prices rose dramatically and unemployment fell to record lows. Once again, the Whigs are in power, so Jason expects his stock portfolio to grow significantly. Jason's thinking may be influenced by the ________. A) representation bias B) anchoring effect C) randomness bias D) selective perception bias
108) _____
109) The last time he flew Jet Value Air, Juan's plane developed a fuel leak and had to make an emergency landing. The time before that, his plane was grounded because of an electrical problem. Juan is sure his current trip will be fraught with problems and he will once again be delayed. This is an example of the ________ bias. A) availability B) confirmation C) randomness D) selective perception
109) _____
110) "We can't stop now. We've already invested $100,000 in the project." This speaker is acting on the ________. A) sunk costs error B) representation bias C) anchoring effect D) availability bias
110) _____
111) Whenever anyone praises Mark for his good performance, he has the tendency to attribute his success to his personal qualities such as his ability to thrive under pressure and his eye for detail. However, any negative performance feedback is always met with excuses such as unsupportive team members or insufficient time. This is an example of the ________. A) representation bias B) hindsight bias C) self-serving bias D) confirmation bias
111) _____
112) Marty had arranged for a high-profile speaker to deliver the keynote address at her college's annual function. However, due to unforeseen circumstances, the speaker was forced to drop out at the last moment. Marty reacts to this news by saying, "I knew all along that this would happen." This is an example of the ________. A) availability bias B) anchoring effect C) hindsight bias D) self-serving bias
112) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 113) The anchoring effect describes when decision makers fixate on initial information as a starting
point and
then, 113) once set, fail to adequate ly adjust for subseque nt informati on.
____ _
114) The availability bias describes the actions of decision makers who try to create meaning out of random events.
114) _____
115) The sunk costs error occurs when decision makers forget that current choices cannot correct the past.
115) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 116) Explain any five decision biases or errors that managers make. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 117) The decisions many managers make in today's business world typically involve ________. 117) _____ A) no risk, certainty of the outcomes, and time pressure B) risk, incomplete information, and time pressure C) some risk, nearly complete information, and moderate timelines D) little risk, complete information, and long decision timelines 118) A few decades ago, Walmart opened stores in Germany. After a few years, it closed all of them. The shopping habits of Europeans differed so much from that of Americans that the stores could not become profitable. What was Walmart's mistake? A) It did not use an effective decision-making process. B) It did not create standards for good decision making. C) It did not know when it was time to call it quits. D) It did not understand cultural differences.
118) _____
119) Design thinking suggests that managers should look at problem identification collaboratively and integratively with the goal of ________. A) gaining a deep understanding of the situation B) developing solutions which somehow seem inevitable C) analyzing the situation with deductive reasoning D) unveiling a rational approach to address the situation
119) _____
120) Very large complex data sets that are so huge that traditional software is unable to handle them are known as ________. A) algorithm sets B) deep data C) machine data D) big data
120) _____
121) ________ is a method of data analysis that automates analytical model building. A) Deep learning B) Big data mining C) Artificial intelligence building D) Machine learning
121) _____
122) ________ involves the use of mathematics, statistics and other quantitative modeling methods. A) Psychological profiling B) Analytics
122) _____
C) Intuitive decision making
D) Design thinking
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 123) Managers need to understand cultural differences to make effective decisions in today's fast-moving world. 124) Design thinking is an interesting new line of thinking with broad implications for making effective business decisions by integrating emotional elements into the process.
123) _____
124) _____
1) A 2) A 3) C 4) D 5) D 6) C 7) D 8) A 9) D 10) B 11) A 12) C 13) C 14) B 15) B 16) C 17) B 18) B 19) D 20) C 21) D 22) C 23) FALSE 24) TRUE 25) TRUE 26) FALSE 27) FALSE 28) 1. Identify a problem - The decision-making process begins with the existence of a problem or a discrepancy between an existing and a desired state of affairs. However, a discrepancy without pressure to take action becomes a problem that can be postponed. 2. Identify decision criteria - Once the manager has identified a problem that needs attention, the decision criteria important to resolving the problem must be identified. That is, managers must determine what is relevant in making a decision. 3. Allocate weights to the criteria - The decision maker must weigh the items in order to give them the correct priority in the decision. A simple approach to doing this is to give the most important criterion a weight of 10 and then assign weights to the rest against that standard. 4. Develop alternatives - The fourth step requires the decision maker to list the viable alternatives that could resolve the problem. No attempt is made in this step to evaluate the alternatives, only to list them. 5. Analyze alternatives - Once the alternatives have been identified, the decision maker must critically analyze each one. From this comparison, the strengths and weaknesses of each alternative become evident. 6. Select an alternative - The sixth step involves choosing the best alternative from among those considered. 7. Implement the alternative - Implementation involves conveying the decision to those affected by it and getting their commitment to it. If the people who must carry out a decision participate in the process, they are more likely to enthusiastically support the outcome than if they are just told what to do. 8. Evaluate decision effectiveness - The last step in the decision-making process involves appraising the outcome of the decision to see if the problem has been resolved. If the desired result has not been achieved, the manager may consider returning to a previous step or may even consider starting the whole decision process over. 29) C 30) C 31) B 32) D
33) D 34) B 35) A 36) C 37) B 38) B 39) C 40) B 41) A 42) A 43) B 44) A 45) B 46) A 47) B 48) TRUE 49) FALSE 50) FALSE 51) TRUE 52) TRUE 53) FALSE 54) A decision maker who is perfectly rational is fully objective and logical. The problem faced is clear and unambiguous. The decision maker has a clear and specific goal. He is aware of all possible alternatives and consequences. Making decisions consistently leads to selecting the alternative that maximizes the likelihood of achieving that goal. These assumptions apply to any decision-personal or managerial. For managerial decision making, an additional assumption is that decisions are made in the best interests of the organization. However, most of these assumptions of rationality are not very realistic. 55) Despite the unrealistic assumptions of perfect rationality, managers are expected to be rational when making decisions. It is understood that "good" decision makers are supposed to do certain things and exhibit good decision-making behaviors as they identify problems, consider alternatives, gather information, and act decisively but prudently. When they do so, they show others that they are competent and that their decisions are the result of intelligent deliberation. However, a more realistic approach to describing how managers make decisions is the concept of "bounded rationality." According to this concept, managers make decisions rationally, but are limited by their ability to process information. Because they cannot possibly analyze all information on all alternatives, managers "satisfice," rather than maximize. That is, they accept solutions that are "good enough." Thus, they become rational within the limits of their ability to process information. 56) Students answers will vary, but must include an expectation of rationality, a limited ability to process information, an inability to know all possible alternatives, and a probable lack of maximization of the results of the decision 57) Intuitive decision making is the process of making decisions on the basis of experience, feelings, and accumulated judgment. Intuitive decision making can complement both rational and bounded rational decision making. A manager who has had experience with a similar type of problem or situation often acts quickly with limited information because of that past experience. Managers who experienced intense feelings and emotions when making decisions actually achieved higher decision-making performance, especially when they understood their feelings as they were making decisions. 58) Students answers will vary but must include 1) the decision-maker's expertise and judgment; 2) external evidence that has been evaluated by the decision maker; 3) opinions, preferences, and values of those who have a stake in the decision; and 4) relevant organizational (internal) factors such as context, circumstances, and organizational members. 59) B 60) B
61) C 62) A 63) B 64) B 65) B 66) A 67) A 68) C 69) D 70) D 71) B 72) C 73) B 74) B 75) A 76) D 77) D 78) D 79) D 80) C 81) C 82) A 83) C 84) B 85) D 86) TRUE 87) FALSE 88) FALSE 89) FALSE 90) TRUE 91) Some problems are straightforward. The decision maker's goal is clear, the problem is familiar, and information about the problem is easily defined and complete. Hence, these are called structured problems. For instance, when a server spills a drink on a customer's coat the customer is upset and the manager needs to do something. Because it is not an unusual occurrence, there is some standardized routine for handling it. For example, the manager offers to have the coat cleaned at the restaurant's expense. This is called a programmed decision, a repetitive decision that can be handled by a routine approach. Because the problem is structured, the manager does not have to go to the trouble and expense of going through an involved decision process. Not all the problems managers face can be solved using programmed decisions. Many organizational situations involve unstructured problems, which are problems that are new or unusual and for which information is ambiguous or incomplete. Whether to build a new manufacturing facility in China is an example of an unstructured problem. When problems are unstructured, managers rely on nonprogrammed decision making in order to develop unique solutions. Nonprogrammed decisions are unique and nonrecurring and involve custom-made solutions. Lower-level managers mostly rely on programmed decisions because they confront familiar and repetitive problems. As managers move up the organizational hierarchy, the problems they confront become more unstructured. However, few managerial decisions in the real world are either fully programmed or nonprogrammed. Most fall somewhere in between. 92) Usually a manager relies on one of three types of programmed decisions to counter structured problems: procedure, rule, or policy. A procedure is a series of sequential steps a manager uses to respond to a structured problem. Identifying the problem is a bit difficult. Once it is clear, so is the procedure. For instance, a purchasing manager receives a request from a warehouse manager for 15 PDA handhelds for the inventory clerks. The purchasing manager knows how to make this decision by following the established purchasing procedure.
A that tells a manager what can or cannot be done. Rules are frequently used because they are simple to follow and rule ensure consistency. For example, rules about lateness and absenteeism permit supervisors to make disciplinary is an decisions rapidly and fairly. expli The third type of programmed decisions is a policy, which is a guideline for making a decision. In contrast to a rule, cit a policy establishes general parameters for the decision maker rather than specifically stating what should or state should not be done. Policies typically contain an ambiguous term that leaves interpretation up to the decision ment maker. 93) When making decisions, managers usually face three different conditions: certainty, risk, and uncertainty. a. Certainty - The ideal situation for making decisions is one of certainty, which is a situation where a manager can make accurate decisions because the outcome of every alternative is known. b. Risk - These are conditions in which the decision maker is able to estimate the likelihood of certain outcomes. Under risk, managers have historical data from past personal experiences or secondary information that lets them assign probabilities to different alternatives. c. Uncertainty - This is a situation in which a decision maker has neither certainty nor reasonable probability estimates available. Under these conditions, the choice of alternative is influenced by the limited amount of available information and by the psychological orientation of the decision maker. 94) D 95) A 96) B 97) A 98) A 99) A 100) B 101) C 102) C 103) C 104) A 105) B 106) D 107) D 108) A 109) C 110) A 111) C 112) C 113) TRUE 114) FALSE 115) TRUE 116) Overconfidence bias: When decision makers tend to think they know more than they do or hold unrealistically positive views of themselves and their performance. Immediate gratification bias: Decision makers tend to want immediate rewards and to avoid immediate costs. Anchoring effect occurs when decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information. First impressions, ideas, prices, and estimates carry unwarranted weight relative to information received later. Selective perception bias: When decision makers selectively organize and interpret events based on their biased perceptions. Confirmation bias: Decision makers seek out information that reaffirms their past choices and discount information that contradicts past judgments. These people tend to accept at face value information that confirms their preconceived views and are critical and skeptical of information that challenges these views. Framing bias: When decision makers select and highlight certain aspects of a situation while excluding others. Availability bias: When decisions makers tend to remember events that are the most recent and vivid in their memory.
Repre decision makers assess the likelihood of an event based on how closely it resembles other events or sets of events. senta Randomness bias: Decision makers try to create meaning out of random events. tion Sunk costs error: When decision makers forget that current choices cannot correct the past. bias: Self-serving bias: Decision makers take credit for their successes and blame failure on outside factors. Whe Hindsight bias: The tendency for decision makers to falsely believe that they would have accurately predicted the n outcome of an event once that outcome is actually known. 117) B 118) D 119) A 120) D 121) D 122) B 123) TRUE 124) TRUE
Exam Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The board of Corporation XYZ recently fired the CEO because the firm's sales growth declined 1) _______ during his tenure. Corporations XYZ's board believes in the ________ view of management. A) prescient B) systemic C) omnipotent D) symbolic 2) The downfall of the furniture industry due to the subprime mortgage crisis and subsequent job loss of a number of managers in that industry would lend credence to the ________ view of management. A) symbolic B) omnipotent C) systemic D) prescient
2) _______
3) If Jim believes his primary role as a manager is to create meaning out of ambiguity, he believes in the ________ role of management. A) omnipotent B) prescient C) systemic D) symbolic
3) _______
4) Jill received a large executive stock option package when she accepted a new position as the chief executive officer of a struggling retail chain. Jill probably believes in the ________ role of management. A) omnipresent B) symbolic C) omnipotent D) systemic
4) _______
5) Carlos has several good ideas about how to increase his firm's profits. However, they all involve committing resources that are currently not available. His problem highlights the fact that all managers face ________. A) performance optimism B) symbolism C) internal constraints D) environmental decay
5) _______
6) Managers can be limited in their ability to influence the firm because of the ________. A) past management mistakes that still affect the firm B) organizational environment and symbolism C) stakeholders' views on ethics D) organizational environment and organizational culture
6) _______
7) Ruben wants to find a new job where performance metrics determine his raise for the coming year. Ruben believes in the ________ view of management. A) omnipotent B) systemic C) omnipresent D) symbolic
7) _______
8) Lakeeta knows her performance review will be both good and bad. She made several organizational changes that saved the firm money but the firm still had a down quarter due to the anemic economy. Consumers just quit spending money. Which of these statements is the most accurate? A) Lakeeta may lose her job due to the lower sales this past quarter if her boss believes in the symbolic view of management. B) Lakeeta's position is largely symbolic since she cannot influence the outcomes. C) Lakeeta obviously has no ability to influence outcomes so she believes in the omnipotent view of management. D) Lakeeta's job suggests that both the omnipotent and the symbolic roles of management exist.
8) _______
9) Which of these perspectives is the dominant view of management in today's society?
9) _______
A) Managers are overpaid. C) Managers are mostly ineffective.
B) Managers are symbolic. D) Managers are omnipotent.
10) When a manager holds someone accountable for their division's performance, it suggests they believe in the ________ view of management. A) omnipotent B) systemic C) omnipresent D) symbolic
10) ______
11) DeMarcus feels like he will become the scapegoat for the firm's poor performance since he made several changes in the firm's production process. He expects to be fired later today when he meets with his boss. DeMarcus probably believes in the ________ view of management. A) omnipotent B) top down C) systemic D) symbolic
11) ______
12) The Arkansas Razorback football organization just fired their head coach for having only two wins in the past 10 games. The athletic director believes in the ________ role of management. A) omnipotent B) symbolic C) systemic D) organic
12) ______
13) In reality, most managers have some control over performance but also ________. A) consistently make poor decisions B) operate within constraints C) remain mostly powerless D) control their environment
13) ______
14) If a manager believes her role is to create meaning out of random events and confusing situations she probably believes in the ________ role of management. A) systemic B) symbolic C) omnipotent D) organic
14) ______
15) Which one of the following represents the two views of managerial impact on the success or failure of the organization? A) Reflective and interactive B) Symbolic and interactive C) Omnipotent and symbolic D) Omnipotent and reflective
15) ______
16) The dominant view in management theory suggests that ________. A) managers cannot significantly affect an organization's performance because they are constrained by the abilities of their employees B) managers are directly responsible for an organization's success or failure C) managers' roles are increasingly becoming peripheral and staff manage their own areas of expertise D) an organization's success or failure is due to external forces outside managers' control
16) ______
17) Wendell notices that the company's top executives share a belief that managers are directly responsible for the organization's success or failure. This belief reflects a(n) ________ view of management. A) omniscient B) traditional C) omnipotent D) symbolic
17) ______
18) Wendell interviews many middle-level managers and discovers that these individuals believe that external factors constrain managers' influence over outcomes. The mid-level managers have a(n) ________ view of management. A) symbolic B) omniscient C) omnipotent D) traditional
18) ______
19) Calvin's goals for the coming year include specific targets for increasing market share and quantity of units shipped. If he succeeds, he will be handsomely rewarded. If he fails, he is likely to be replaced. Judging from this, it would appear that Calvin's employer subscribes to the ________ view of management. A) impotent B) omniscient C) omnipotent D) symbolic
19) ______
20) The ________ view of management is consistent with the stereotypical picture of the take-charge business executive who can overcome any obstacle in carrying out the organization's objectives. A) omniscient B) omnipotent C) impotent D) symbolic
20) ______
21) The soccer league in England is notorious for the number of team managers fired over the course of a single season, which stands at no fewer than eight managers on average, owing to poor team form and consequently, poor results. It is evident from this information that the league endorses a(n) ________ view of management. A) omniscient B) omnipotent C) impotent D) symbolic
21) ______
22) Which of the following most accurately reflects the symbolic view of management? A) External forces are responsible for an organization's success or failure. B) Managers have to ensure that every obstacle is overcome on the way to achieving the organization's goals. C) Employees are directly responsible for an organization's success or failure. D) Managers are directly responsible for an organization's success or failure.
22) ______
23) Elmo Research & Development has been going through a rough patch lately. Turnover has been high and employee morale is at an all-time low. Though employees and competitors hold management responsible for the decline, the CEO does not let the managers go or change the management style. Which of the following could explain this attitude? A) The CEO holds the view that managers have only a limited role in organization success or failure. B) The CEO holds the omnipotent view of management, which asserts that external factors have a significant effect on performance outcomes. C) Because the organization has a "take-charge" management style, the employees are responsible for organizational policies. D) The CEO is unresponsive to the criticisms from stakeholders.
23) ______
24) The symbolic view of management is based upon the belief that managers symbolize ________. A) the fluctuating fortunes of the organization as they alternate between profits and losses B) control and influence by developing plans and making decisions C) every aspect of an organization's performance, from the top level to the operational level D) the take-charge executive who overcomes any obstacle to see that the organization achieves its goals
24) ______
25) According to the symbolic view, managers have a(n) ________ effect on substantive organizational outcomes. A) extensive B) influential C) subtle D) limited
25) ______
26) Internal constraints that influence managers' decisions and actions come from the ________. A) culture of the organization B) prevailing political conditions C) attitudes of customers D) fluctuations in the stock market
26) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 27) Most managers have limited ability to influence outcomes.
27) ______
28) Performance-based pay systems suggest the firm believes in the symbolic view of management.
28) ______
29) A manager that holds his employees accountable for sales growth probably believes in the omnipotent view of management.
29) ______
30) In the real world, managers can influence outcomes but they operate within constraints.
30) ______
31) Cassy has been tasked with increasing her division's productivity. This suggests her boss believes in the omnipotent view of management.
31) ______
32) The view of managers as omnipotent is consistent with the stereotypical picture of the take-charge business executive who can overcome any obstacle in carrying out the organization's objectives.
32) ______
33) In the symbolic view of management, managers are seen as directly responsible for an organization's success or failure.
33) ______
34) The symbolic view of management impact is useful in explaining the high turnover among sports coaches, who can be considered the "managers" of their teams.
34) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 35) In a short essay, differentiate between the symbolic view and the omnipotent view of management. Include specific examples of each view to support your answer. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 36) If mortgage interest rates increase, this would be an example of changing ________ conditions in 36) ______ a firm's external environment. A) political B) financial C) economic D) sociocultural 37) Which of the following factors is an economic component of an organization's external environment? A) The average customer of a firm has a high school education. B) The firm's customers' disposable income falls in the range of $25,000-$40,000. C) The employees of the organization have, on average, 2.3 children. D) Most of the firm's customers live in the Midwest.
37) ______
38) The ________ component of an organization's external environment is concerned with trends in population characteristics such as age, race, gender, education level, geographic location, income, and family composition. A) demographic B) economic C) sociocultural D) political
38) ______
39) Which of the following factors is a demographic component of an organization's external environment? A) Geographic location B) Lifestyles and behavior C) Political stability D) Stock market fluctuations
39) ______
40) Gerber makes and sells baby products. A shift in the birth rate would represent a change in the ________ component of this firm's external environment. A) political B) cultural C) psychographic D) demographic
40) ______
41) Assume the global economy rebounds rapidly from the Great Recession. What constraint is this likely to have on decisions managers make? A) Managers will be asked to eliminate positions to cut labor costs. B) The number of qualified candidates available for hire will become smaller. C) Positions will be easier to fill as college graduates settle for lower paying jobs. D) The hourly compensation average will have to fall; managers will be asked to offer less to
41) ______
job
candidates. 42) The Metropolis News has experienced a decline in the number of subscriptions to its printed newspaper over the last five years. It seems people prefer news feeds sent to their smartphones rather than a printed paper delivered to their homes. Which component in the external environment does this change represent? A) Demographic B) Sociocultural C) Economic D) Political
42) ______
43) Thanks to iTunes and similar websites, sales of compact discs have declined severely, forcing entertainers to seek alternative revenue streams. This represents a change in the ________ component of the external environment. A) sociocultural B) psychological C) economic D) behavioral
43) ______
44) Protests in Hong Kong reduced the number of tourists and also reduced revenue for Disney's theme park. This represents a change in the ________ component of the external environment. A) global B) economic C) sociocultural D) political/legal
44) ______
45) Which of the following factors is a sociocultural component of an organization's external environment? A) The average number of hours worked per year is increasing. B) Most of the firm's customers have at least one year of college. C) The government of the country holds elections whenever confidence in the current regime falters. D) Over time, society has become more accepting of alternative lifestyles.
45) ______
46) Suppose the government of Abolonia imposed a national sales tax on its citizens that reduced their disposable income. Which component of the external environment would this affect? A) Economic B) Demographic C) Cultural D) Global
46) ______
47) The citizens of Abolonia believe no top executive should ever earn more than 40 times the average wage of the company's employees. This is an example of ________. A) a trend in the sociocultural environment that limits disposable income in the economic environment B) how societal attitudes in the economic context create constraints on the decisions managers make C) how changes in the demographics limit the discretion managers have D) how government regulation affects the salaries executives can earn
47) ______
48) An organization with dozens of competitors and a large number of raw materials suppliers has a high degree of A) forecast uncertainty B) environmental complexity C) environmental autonomy D) forecast certainty
48) ______
49) Everything outside of an organization, including such factors as interest rates and stock fluctuations, is defined as the ________. A) stable environment B) dynamic environment C) environment complexity D) general environment
49) ______
50) Which of the following, if true, represents a demographic change that will affect decisions future managers make? A) More jobs will be performed by robots. B) The percentage of Hispanics in the candidate pool will increase.
50) ______
C) More job candidates are likely to have tattoos and body piercings. D) The unemployment rate is likely to continue to fall. 51) Faced with incomplete information about the future national economic conditions, many employers have eschewed the tradition of hiring full-time, permanent employees in favor of ________. A) a flexible work arrangement that includes freelancers and temporary workers B) a reduced work week of no more than 30 hours per week per employee C) off-shoring as many jobs as possible to reduce costs associated with government-mandated programs D) hiring only high school graduates willing to work for lower wages
51) ______
52) If the components of an organization's environment change frequently, the organization is operating in a ________ environment. A) dynamic B) stable C) simple D) complex
52) ______
53) Which of the following are the two dimensions of environmental uncertainty? A) Degree of change and degree of complexity B) Degree of complexity and degree of impact C) Degree of change and degree of volume D) Degree of impact and degree of timing
53) ______
54) D&B Designs has been in the landscape design business in Pleasantville for the past twenty years. As the "first mover" in the market, the company has built a strong market share over the years and is the best-known firm in the area. The company strength increased steadily, and now stands at fifty employees. Which of the following, if true, would make the company's business environment more uncertain? A) Demand for landscaping services dips every autumn and winter. B) Homeowners in the area take pride in their gardens and are avid do-it-yourself gardeners. C) A long-time competitor quit the landscape design business last year. D) Zoning laws in the area change as each new city council comes into power.
54) ______
55) Which of the following describes a dynamic environment? A) Competitors move into and out of the industry frequently. B) Product demand increases every year on a steady upward trend. C) Production methods change about once every 5 years. D) Sales vary with the seasons.
55) ______
56) If the components in an organization's environment exhibit minimal change, such an environment is said to be ________. A) volatile B) simple C) dynamic D) stable
56) ______
57) Home prices in the area in which your real estate office operates have increased only gradually for the past several years. However, you have noticed that demand for housing in the area usually spikes in summer. Which of the following best describes your business environment? A) Dynamic and complex B) Dynamic and simple C) Stable and complex D) Stable and simple
57) ______
58) Moreno's Pub Burgers has enjoyed its status as the Numero Uno hamburger restaurant in Pleasantville for the past ten years. Its only competitor is a national fast food chain preferred by children rather than adults. Which of the following, if true, would make Moreno's business environment more uncertain?
58) ______
A) The fast food chain closes. B) Moreno's buys the lot next door to expand its parking. C) Because of the growth of Pleasantville's population, more hamburger chains build facilities in Pleasantville. D) A new employer moves into the area, bringing hundreds of jobs and more families. 59) Which one of the following represents the highest level of environmental uncertainty? A) Mario's restaurant competes against 325 others in the city; the city's ethnic mix is constantly changing. B) Marty has to deal with the local council, the health department, the franchisor, the zoning commission-the list keeps growing. He is grateful there are no new competitors moving in. C) Millie's customers expect to see new menu items regularly and want Millie to install Wi-Fi. D) Maria's is still the only restaurant in a small town. She took it over from her mother and still uses the same equipment.
59) ______
60) Which one of the following represents the lowest level of environmental uncertainty? A) Millie's customers expect to see new menu items regularly and want Millie to install Wi-Fi. B) Marty has to deal with the local council, the health department, the franchisor, the zoning commission-the list keeps growing. He is grateful there are no new competitors moving in. C) Mario's restaurant competes against 325 others in the city; the city's ethnic mix is constantly changing. D) Maria's is still the only restaurant in a small town. She took it over from her mother and still uses the same equipment.
60) ______
61) In which one of the following environments do managers in an organization have the greatest influence on organizational outcomes? A) Stable and simple environments B) Stable and complex environments C) Dynamic and simple environments D) Dynamic and complex environments
61) ______
62) Which of the following environments is characterized by the highest level of environmental uncertainty? A) A dynamic and complex environment B) A stable and complex environment C) A dynamic and simple environment D) A stable and simple environment
62) ______
63) The term ________ is used to collectively refer to any constituencies in an organization's environment that are affected by its decisions and actions. A) shareholders B) unions C) competitors D) stakeholders
63) ______
64) Which one of the following represents an important constituent of a small-town bake shop selling desserts and coffee? A) The local campus of the community college B) The state department of revenue C) The bakery's regular customers D) Wheat farmers in Kansas
64) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 65) People's beliefs about conditions of economic inequality illustrate how societal attitudes can constrain managers' decisions and actions. 66) A dynamic environment is characterized by the absence of new competitors, few technological breakthroughs by current competitors, and little activity by pressure groups to influence the organization.
65) ______
66) ______
67) Environmental uncertainty refers to the number of components in an organization's environment and the extent of the knowledge that the organization has about those components.
67) ______
68) A dynamic and simple environment is characterized by the greatest level of environmental uncertainty.
68) ______
69) An organization's competitors and employees are considered to be stakeholders who are affected by the organization's decisions and actions.
69) ______
70) Managers have greater influence over organizational performance when relationships with the stakeholders are obvious and secure.
70) ______
71) Managers of high-performing companies tend to consider the interests of the most profitable stakeholder groups as they make decisions.
71) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 72) Assume that medical science is able to extend the life expectancy in the United States by 20 years, on average. Give examples of how this will affect the decisions managers make. Respond in terms of the economic, demographic, political/legal, and sociocultural contexts. 73) Define environmental uncertainty. Briefly discuss the dimensions of environmental uncertainty. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 74) If you were talking to Todd, an average person, and asked him what the term culture meant, he 74) ______ would reply that it is ________. A) the nature of products/services offered by the company B) a set of operational procedures for the company C) the shared values and practices of the firm D) the formal rules of an organization 75) ________ has been described as the shared values, principles, traditions, and ways of doing things that influence the way organization members act. A) Industrial psychology B) Organization culture C) Corporate hierarchy D) Business configuration
75) ______
76) A person desiring to understand the culture of an organization would examine ________. A) the nature of products/services offered by the company B) a set of operational procedures for the company C) its formal rules D) the shared values and practices of the firm
76) ______
77) Which one of the following statements highlights the shared aspect of culture? A) Organizational culture is concerned with how members perceive the culture and describe it, not with whether they like it. B) Even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization's culture in similar terms. C) Organizational culture is not something that can be physically touched or seen, but employees perceive it on the basis of what they experience within the organization. D) The original source of the culture of an organization reflects the vision of the organization's founders.
77) ______
78) Stephen notices that management is very concerned with the effects of outcomes on employees in the organization. This means that management emphasizes the ________ dimension of the organization's culture. A) people orientation B) stability C) aggressiveness D) innovation and risk taking
78) ______
79) Which one of the following most accurately reflects the difference between strong cultures and weak cultures? A) Company values are more deeply held and widely shared in strong cultures than in weak cultures. B) Strong cultures tend to encourage employees to try new approaches to changing conditions, while weak cultures do not. C) Strong cultures have less influence on employee behavior than do weak cultures. D) In strong cultures, organizational values are held by top management, while in weak cultures, values are diffused throughout the organization.
79) ______
80) Which of these dimensions of organizational culture highlights the importance of collaboration? A) Team orientation B) Attention to detail C) People orientation D) Adaptability
80) ______
81) Google has often been cited as a model for employee satisfaction. Google takes extensive care to ensure employees have the best available conditions to perform, ranging from free snack bars, free massages, innovation rooms, spas-on-site, and many more such measures. Which dimension of organizational culture is Google said to emphasize through such measures? A) Integrity B) Attention to detail C) People orientation D) Adaptability
81) ______
82) Martha is concerned with the degree to which managers focus on results rather than the techniques and processes used to achieve those results. In other words, Martha is concerned that the company will emphasize ________ over other dimensions of the organizational culture. A) integrity B) outcome orientation C) adaptability D) attention to detail
82) ______
83) Which one of the following would make Mary realize that the company where she works has a strong culture? A) Shared values and behaviors are not connected. B) Upper management sends contradictory messages about what is important. C) Values are limited to the top management. D) Most employees are aware of company history.
83) ______
84) Employees at Ottobath Corporation are encouraged to submit their ideas for improvements to processes and for new products. Ottobath likely possesses a high degree of ________. A) people orientation B) aggressiveness C) team orientation D) adaptability
84) ______
85) Bethany works for an international accounting firm noted for its superior quality of work. Employees check and double-check their work. The culture of this firm emphasizes ________. A) attention to detail B) teams C) outcomes D) people
85) ______
86) Which one of the following is a characteristic of an organization with a strong culture? A) Emphasis is laid on the future of the organization, rather than acquainting employees with
86) ______
company
history or past heroes. B) Culture conveys consistent messages about what is important to the organization. C) The core set of organizational values is zealously guarded by the management. D) Management strives to delink shared values from behaviors as much as possible.
87) Which one of the following is a disadvantage of having a strong organizational culture? A) High employee turnover B) Low loyalty towards the organization C) Decreased organizational performance D) Inability to respond to changing conditions
87) ______
88) If Melody wanted to build a strong culture, which of these actions would help most? A) She should allow employees to pursue activities they believe will contribute to future company growth. B) She should encourage employees to continue their education and establish a tuition assistance program. C) She should hold an annual retreat at which upper management develops a values statement. D) She and other managers should often tell stories about the company "heroes" and encourage employees to emulate their behavior.
88) ______
89) If Nanette is able to strengthen the culture of her organization, which one of the following could she reasonably expect as a result? A) An increase in absenteeism B) An increase in her stock trading price C) A decrease in health insurance costs D) A decrease in employee turnover
89) ______
90) The original source of an organization's culture usually reflects ________. A) the vision or mission of the organization's founder B) the composition of its productive workforce C) the present conditions in which the organization functions D) the degree of success that the organization has achieved
90) ______
91) ________ is a process that helps new employees learn the organization's way of doing things. A) Socialization B) Transculturation C) Inculcation D) Enculturation
91) ______
92) An organization's culture can be perpetuated by ________. A) selecting candidates for employment who share the organizations values B) expecting managers to produce results C) taking advantage of employees' suggestions for improvement D) displaying artifacts that exemplify the culture
92) ______
93) Organizational ________ typically contain narratives about significant events or people in the organization. A) rituals B) stories C) language D) material artifacts
93) ______
94) ________ help anchor the present in the past, provide explanations and legitimacy for current practices, exemplify what is important to the organization, and provide compelling pictures of an organization's goals. A) Artifacts B) Symbols C) Rituals D) Stories
94) ______
95) The day before Disney World in Florida was to open, the sod around one of the resort hotels had not been laid. CEO Michael Eisner took off his suit coat and tie, rolled up his sleeves, and began laying sod. He instructed his managers to do likewise but many objected, saying they did not know how to lay sod. "It's not hard, boys," said Eisner. "The green side goes up." This is an example of a ________ that reinforces culture. A) tradition B) story C) ritual D) artifact
95) ______
96) The term ________ refers to repetitive sequences of activities that express and reinforce the important values and goals of the organization. A) corporate rituals B) corporate rites C) employee mentoring D) organizational culture
96) ______
97) Which of the following is an example of a corporate ritual? A) In the reception lobby is an assortment of material artifacts such as trade magazines, industry awards, photos of the employees-of-the-month, and samples of products. B) Joe and Ed swap stories about the company's history and past heroes who have made significant contributions to the company. C) Every customer who buys a new car at Eby Ford and Lincoln rings a gong and is rewarded with applause from the entire sales staff. D) Company executives use company-specific jargon or slogans intended to inspire other employees to perform better.
97) ______
98) Which one of the following is an example of a material artifact or symbol? A) The company sponsors a local youth sports team. B) Incoming calls are answered by a live person. C) The offices of upper management are carpeted; the offices of administrative personnel have tile floors. D) The lines on the parking lot are repainted every year.
98) ______
99) ________ often act(s) as a common denominator that bonds an organization's members. A) Symbols B) Artifacts C) Language D) Rituals
99) ______
100) Which one of the following is a cultural constraint that affects the decisions managers in a company make? A) The location of the firm's headquarters. B) The size of the operating budget. C) The size of the employee population. D) The extent to which employees are encouraged to participate on problem-solving teams.
100) _____
101) Bernard's company knows it must constantly create new products to stay ahead of the competition. Which of the following characteristics are we likely to find in this culture? A) Intolerance toward uncertainty or ambiguity. B) Resolution of employee issues based on personal interest. C) Freedom for employees to exercise discretion. D) A serious outlook toward work.
101) _____
102) If ABC Company wanted to create an innovative culture, which of the following actions should it take? A) Allow employees time for the generation of ideas. B) Encourage employees to report slacking and other time wasting within their departments. C) Require employees to document their activities to account for all paid hours. D) Create detailed job descriptions and step-by-step procedures for every position.
102) _____
103) Marriott hotels are noted for their fantastic service. Their motto is "Ladies and gentlemen serving ladies and gentlemen." To build and maintain this level of service, which of the following guidelines should managers follow? A) Precisely defining employees' normal job requirements and ensuring they perform those actions. B) Designing jobs with rigid rules and procedure that employees should stick to in order to satisfy customers. C) Giving service-contact employees continual training on product knowledge, listening, and other behavioral skills. D) Preserving the discretion to make day-to-day decisions on job-related activities at the top level of management.
103) _____
104) Companies that wish to establish a culture of sustainability can ________. A) vary the type and timing of its sustainability activities B) casually mention occasionally that the company is concerned about sustainability C) expect new hires to observe the actions of others and act in a similar fashion D) create rituals to demonstrate the company's efforts to support sustainability actions
104) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 105) Corporate rituals are repetitive sequences of activities that express and reinforce the key values of an organization.
105) _____
106) Strong cultures have more influence on employees than do weak cultures.
106) _____
107) The shared aspect of culture implies that all employees in an organization agree with the organization's values and beliefs.
107) _____
108) In strong organizational cultures, employees have little knowledge of company history or heroes; what is important is present performance.
108) _____
109) Organizations help employees adapt to the culture through socialization.
109) _____
110) For the sake of clarity, the constraints imposed on managers by the organization's culture are explicitly stated in the employee handbook.
110) _____
111) Because a company's culture has so much influence on managers' decisions, it is important that each manager have a published code clearly stating the company's cultural guidelines.
111) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 112) Define organizational culture and discuss its three primary implications. 113) Identify and define the six dimensions that make up an organization's culture. 114) How do employees of an organization learn its culture? In a short essay, explain the four primary methods and provide an example of each. 115) Discuss how culture constrains managers. Include specific examples to support your answer.
1) C 2) A 3) D 4) C 5) C 6) D 7) A 8) D 9) D 10) A 11) A 12) A 13) B 14) B 15) C 16) B 17) C 18) A 19) C 20) B 21) B 22) A 23) A 24) B 25) D 26) A 27) FALSE 28) FALSE 29) TRUE 30) TRUE 31) TRUE 32) TRUE 33) FALSE 34) FALSE 35) a. In the omnipotent view, differences in an organization's performance are assumed to be due to decisions and actions of its managers. Good managers anticipate change, exploit opportunities, correct poor performance, and lead their organizations. When things go well and profits are up, managers take the credit and are rewarded-even if they had little to do with achieving the positive outcomes. When profits are down, top managers are often fired in the belief that "new blood" will bring improved results. Coaches are often released following a poor season as they are considered the "managers" of their teams. b. The symbolic view holds that a manager's ability to affect performance outcomes is influenced and constrained by external factors. According to this view, it's unreasonable to expect managers to significantly affect an organization's performance. Instead, performance is influenced by factors over which managers have little control such as the economy, customers, governmental policies, competitors' actions, industry conditions, and decisions made by previous managers. This view is labeled "symbolic" because it's based on the belief that managers symbolize control and influence by developing plans, making decisions, and engaging in other managerial activities to make sense out of random, confusing, and ambiguous situations. However, the actual part that managers play in organizational success or failure is limited. In the 1990s Cisco Systems was the picture of success. Growing rapidly, it was widely praised by analysts for its "brilliant strategy, masterful management of acquisitions and superb customer focus." As Cisco's performance declined during the early part of the 21st century, analysts said that its strategy was flawed, its acquisition approach
was azard, and its customer service was poor. The symbolic view would suggest that declining performance was due to haph the external circumstances beyond the control of the managers. 36) C 37) B 38) A 39) A 40) D 41) B 42) B 43) A 44) D 45) D 46) A 47) B 48) B 49) D 50) B 51) A 52) A 53) A 54) D 55) A 56) D 57) D 58) C 59) A 60) D 61) A 62) A 63) D 64) C 65) TRUE 66) FALSE 67) FALSE 68) FALSE 69) TRUE 70) TRUE 71) FALSE 72) Students' answers will vary but should include aspects related to an aging population: more demands on firms to provide products and services for older people; a larger burden on government services to the elderly such as income supports; increasing demand for health care, etc. One could also speculate that society's attitude toward early retirement may shift in favor of a longer working career. If the larger 65 + age group has insufficient income to support themselves, we might see parents moving in with their adult children or even grandchildren. 73) Environmental uncertainty refers to the degree of change and complexity in an organization's environment. The first dimension of uncertainty is the degree of change. If the components in an organization's environment changes frequently and unpredictably, it is a dynamic environment. If change is minimal or predictable, it's a stable one. A stable environment might be one with no new competitors, few technological breakthroughs by current competitors, little activity by pressure groups to influence the organization, and so forth. The other dimension of uncertainty describes the degree of environmental complexity, which looks at the number of components in an organization's environment and the extent of the knowledge that the organization has about those components. An organization with fewer competitors, customers, suppliers, government agencies, and so forth faces a less complex and uncertain environment. Organizations deal with environmental complexity in
vario us ways. Complexity is also measured in terms of the knowledge an organization needs about its environment. 74) C 75) B 76) D 77) B 78) A 79) A 80) A 81) C 82) B 83) D 84) D 85) A 86) B 87) D 88) D 89) D 90) A 91) A 92) A 93) B 94) D 95) B 96) A 97) C 98) C 99) C 100) D 101) C 102) A 103) C 104) D 105) TRUE 106) TRUE 107) FALSE 108) FALSE 109) TRUE 110) FALSE 111) FALSE 112) Organizational culture is the shared values, principles, traditions, and ways of doing things that influence the way organizational members act. In most organizations, these important shared values and practices have evolved over time and determine, in large degree, what employees perceive about their organizational experiences and how they behave in the organization. When doing their work, the organizational culture-the "way we do things around here"-influences what employees can do and how they view, define, analyze, and resolve problems and issues. Our definition of culture implies three things. First, culture is a perception. Individuals perceive the organizational culture on the basis of what they see, hear, or experience within the organization. Second, even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization's culture in similar terms. That's the shared aspect of culture. Finally, organizational culture is descriptive. It's concerned with how members perceive the organization, not with whether they like it. It describes rather than evaluates. 113) Organizational culture has been described as the shared values, principles, traditions, and ways of doing things that influence the way organizational members act. In most organizations, these shared values and practices have
evol degree to which employees are encouraged to be innovative and to take risks. ved b. Attention to detail-the degree to which employees are expected to exhibit precision, analysis, and attention to over detail. time. c. Outcome orientation-the degree to which managers focus on results or outcomes rather than on how these a. outcomes are achieved. Ada d. People orientation-the degree to which management decisions take into account the effects on people in the ptabi organization. lity-t e. Team orientation-the degree to which work is organized around teams rather than individuals. he f. Integrity-the degree to which people exhibit honesty and high ethical principles in their work. 114) Culture is transmitted to employees in a number of ways. The most significant are stories, rituals, material symbols, and language. a. Stories: Organizational "stories" typically contain a narrative of significant events or people including such things as the organization's founders, reactions to past mistakes, and so forth. For instance, managers at Nike feel that stories told about the company's past help shape the future. Whenever possible, corporate "storytellers" (senior executives) explain the company's heritage and tell stories that celebrate people getting things done. b. Rituals: Corporate rituals are repetitive sequences of activities that express and reinforce the values of the organization, what goals are most important, and which people are important. Mary Kay Cosmetics' annual awards ceremony is a good example. The company spends more than $50 million annually on rewards and price incentives. c. Material Symbols: Material symbols convey to employees who is important and the kinds of behavior that are expected and appropriate. Examples of material symbols include the layout of an organization's facilities, how employees dress, the types of automobiles provided to top executives, and the availability of corporate aircraft. At WorldNow, a provider of Internet technology to local media companies, an important material symbol is an old dented drill that the founders purchased for $2 at a thrift store. The drill symbolizes the company's culture of "drilling down to solve problems." d. Language: Many organizations and units within organizations use language as a way to identify and unite members of a culture. By learning this language, members attest to their acceptance of the culture and their willingness to help preserve it. For instance, at Walmart, employees soon learn to describe various product aisles with the terms "Action Alley," "Bowling Alley," and "The Cross." 115) Because an organization's culture constrains what managers can and cannot do, it is particularly relevant to managers. These constraints are rarely explicit. They're not written down. It's unlikely that they'll even be spoken. But they're there, and all managers quickly learn what to do and not to do in their organization. The link between values and managerial behavior is fairly straightforward. If an organization's culture supports the belief that profits can be increased by cost cutting and that the company's best interests are served by achieving slow but steady increases in quarterly earnings, managers are unlikely to pursue programs that are innovative, risky, long term, or expansionary. In an organization whose culture conveys a basic distrust of employees, managers are more likely to use an authoritarian leadership style than a democratic one. Why? The culture establishes for managers what is appropriate and expected behavior. Banco Santander has been described as a "risk-control freak." The company's managers adhered to "banking's stodgiest virtues — conservatism and patience."
Exam Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Only speaking one language is one sign that a nation suffers from ________. 1) _______ A) ethnocentrism B) polycentrism C) parochialism D) geocentrism 2) Parochialism is a tendency to ________. A) think highly of the foreign country in which the organization is doing business B) focus on best approaches and people from around the globe C) let employees in the host country figure out how best to do things D) view the world solely through one's own eyes and perspectives
2) _______
3) Bill Sanderson, a manager in a manufacturing firm in New York has a tendency to view the world only through his U.S.-based perspective. What can be deduced about his attitude? A) He has an elitist attitude. B) He has a parochialistic attitude. C) He has a polycentric attitude. D) He has a geocentric attitude.
3) _______
4) An ethnocentric attitude ________. A) is the view that employees in the host country know the best work approaches and practices B) is the belief that the home country has the best work approaches and practices C) prompts managers to have a global view and look for the best approaches and people regardless of origin D) gives a manager a much broader understanding of what it takes to manage in a global environment
4) _______
5) A(n) ________ attitude is characterized by parochialism. A) ethnocentric B) acculturated C) geocentric
5) _______ D) multilinguistic
6) While talking with her advisor at the university, Jane deduces that she has a(n) ________ attitude, as she has never traveled abroad and relates well only to people from her home country. A) polycentric B) ethnocentric C) geocentric D) regiocentric
6) _______
7) An ethnocentric attitude stems from ________. A) parochialism B) polycentrism
7) _______ C) nationalism
D) geocentrism
8) Melanie joined an international student association in order to better understand the views of students from other countries. She is trying to become more ________ in her attitude. A) polycentric B) ethnocentric C) geocentric D) parochialistic
8) _______
9) A manager who wishes to be successful in international business should avoid a(n) ________ attitude. A) geocentric B) ethnocentric C) multicultural D) multiracial
9) _______
10) Managers with a(n) ________ attitude view every foreign operation as different and hard to understand. A) polycentric B) regiocentric C) ethnocentric D) geocentric
10) ______
11) A(n) ________ attitude is the view that employees in the host country know the best practices for
run ning
their 11) operatio ns. A) polycentric
___ ___ B) regiocentric
C) ethnocentric
D) geocentric
12) Samanex Corporation maintains production facilities in 13 different countries on three continents. Each facility is managed by a native of the country where it is located. This practice is indicative of a(n) ________ attitude. A) multicentric B) polycentric C) ethnocentric D) geocentric
12) ______
13) In today's global environment, managers must have a(n) ________ attitude to be successful. A) parochial B) polycentric C) ethnocentric D) geocentric
13) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 14) Americans tend to suffer from parochialism.
14) ______
15) Managers with an ethnocentric attitude do not trust foreign employees with key decisions or technology.
15) ______
16) Managers with a polycentric attitude tend to view every foreign operation as different and hard to understand.
16) ______
17) The polycentric attitude is a world-oriented view focusing on using the best approaches and people from around the globe.
17) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 18) Define parochialism. Discuss why parochialism is a problem for U.S. managers and discuss reasons why it is important to overcome parochialism in today's business environment. 19) List and discuss the three attitudes managers might have toward international business. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 20) The ________ was formed by twelve member countries with the primary motivation of 20) ______ reasserting the region's economic position against the United States and Japan. A) Central America Free Trade Agreement B) Association of South-East Asian Nations C) European Union D) African Union 21) ______
21) The single European Union currency is called the ________. A) pound B) euro C) deutchmark
D) krona
22) The World Trade Organization was formed in the year ________. A) 1995 B) 1971 C) 1983
D) 1967
22) ______
23) Heinrich, a purchaser for an optics company in Germany, must place an order for materials for use in its production process. He is most likely to order from a company ________. A) in Asia because labor is cheaper there B) in Switzerland because the Swiss are known for their fine detail work C) in the United States because we have the same quality as any European company D) within the European Union because there would be no barriers to trade
23) ______
24) The World Trade Organization evolved from which of the following? A) General Agreement on Tariffs and Trade B) Truman Doctrine
24) ______
C) Marshall Plan
D) Mercosur
25) The North American Free Trade Agreement includes ________. A) Mexico, Canada, and the United States B) Canada, Mexico, Panama, and the United Sates C) Canada, Mexico, the United States, and Costa Rica D) the United States, Canada, Mexico, and Honduras
25) ______
26) The World Trade Organization ________. A) exists to help countries conduct trade through a system of rules B) facilitates trade among third-world countries and developed nations C) advises developing countries on issues of trade barriers D) promotes long-term economic development and poverty reduction
26) ______
27) The United States renegotiated trade agreements with Mexico and Canada. The new agreement is known as the ________. A) North America Free Trade Agreement B) US Free Trade Agreement of 2019 C) Canadian American Free Trade Alliance D) United States-Mexico-Canada Agreement
27) ______
28) The Association of Southeast Asian Nations is a trading alliance of ________. A) ten Southeast Asian nations and China B) ten Southeast Asian nations C) eight Southeast Asian nations and Japan D) eight Southeast Asian nations
28) ______
29) The purpose of the World Trade Organization is to ________. A) manage foreign currency exchanges to alleviate the effects of inflation B) facilitate trade among member nations through a system of rules C) enforce quotas and tariffs imposed by member nations D) recommend legislation to lessen the advantages of more advanced nations relative to developing countries
29) ______
30) The purpose of the OECD is ________. A) to help member countries achieve sustainable economic growth B) to raise the standard of living in South American countries C) to settle disputes arising from trade between developed and third-world countries D) to control interest rates and inflation in member countries
30) ______
31) Critics of the WTO claim that ________. A) has too little power to be effective B) it favors third-world countries over developed countries C) shifting jobs to developing countries harms the economies of member nations D) global trade destroys jobs and the natural environment
31) ______
32) The International Monetary Fund is an organization that ________. A) rules on disputes over tariffs and subsidies B) promotes international monetary cooperation C) helps countries conduct trade through a system of rules D) provides technical advice to developing countries
32) ______
33) The OECD was formed to ________. A) raise the standard of living in South American countries
33) ______
B) control interest rates and inflation in member countries C) help member countries achieve sustainable economic growth D) settle disputes arising from trade between developed and third-world countries 34) Cypress Exports would like to establish retail outlets in Mongrovia, a quasi-democratic African country with a growing middle class. But the national and local officials all want "gratuities" to process the applications for permits. Cypress Exports should appeal to the ________. A) International Monetary Fund B) Organization for Economic Cooperation and Development C) World Trade Organization D) African Union TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 35) Solidarity in the European Union is being undermined by protectionist pressures in some member countries.
34) ______
35) ______
36) Brexit refers to the UK's decision to leave the European Union.
36) ______
37) Most experts consider President Trump to be a proponent of free trade.
37) ______
38) When the original members formed the European Union in 1992, the primary motivation was to reassert the region's economic position against the United States and Japan.
38) ______
39) The United States, Canada, Mexico, and Honduras are parties to the North American Free Trade Association.
39) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 40) Explain some of the benefits and challenges faced by American businesses because of America's membership in NAFTA. 41) What is the purpose of the WTO? Give an example of the type of issue that might come before this organization. 42) What is the International Monetary Fund? What does it do? 43) What is the World Bank Group and what does it do? 44) Explain why countries would choose to participate in a regional trading alliance. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 45) The advantages of operating globally include ________. 45) ______ A) higher stock trading prices B) higher employee satisfaction C) higher profits D) lower employee turnover 46) The theory that maintains each country should produce the goods or services for which it has the lowest opportunity costs and engage in trade to obtain goods and services produced by other nations is called the ________. A) Opportunity Trade Theory B) Theory of Comparative Advantage C) Theory of Absolute Advantage D) Zero Sum Trade Theory
46) ______
47) The period of time from the mid-1940s to the early 2000s is considered to be ________. A) anti-globalization B) pro-socialist
47) ______
C) the era of trade barriers
D) pro-globalization
48) One major criticism of globalization is that it ________. A) pushed prices of goods higher B) forced the implementation of tariffs C) caused wage stagnation in the US D) created supply chain problems
48) ______
49) In many nations most of the benefits of free trade have gone to ________. A) politicians and governments B) people living below the poverty line C) the middle class D) large global corporations
49) ______
50) Research shows that most of the jobs lost in the manufacturing sector are due to ________. A) higher trade barriers B) increased regulation C) increased automation D) free trade
50) ______
51) Globalization is blamed for ________. A) increased political power C) greater wage inequality
51) ______ B) higher fuel prices D) lower standards of living
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 52) Most Americans only speak English.
52) ______
53) Europeans have an advantage over Americans in global organizations since they are usually multilingual.
53) ______
54) Free trade is the primary reason for higher unemployment in the US manufacturing sector.
54) ______
55) The "Occupy Wall Street" movement blames capitalism for the high concentration of wealth held by the top 1% of the population.
55) ______
56) Most experts believe that globalization will eventually die out as countries become more nationalistic.
56) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 57) Despite the recent backlash, explain why globalization will continue to be a powerful force in the world. 58) Explain how globalization affects someone who wants to be a manager in a global firm. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 59) According to the text, which of the following is a typical definition of a multinational 59) ______ corporation? A) It is a company that has multiple home bases and manufacturing plants. B) It is a company that maintains franchises in multiple countries. C) It is a company that maintains operations in multiple countries. D) It is a company that pays corporate taxes in at least two countries. 60) Which one of the following would be considered a multinational corporation? A) Betty's Bonnets makes women's hats in Jamaica and sells them to retailers in seven Caribbean countries. B) Willy's Websites maintains Internet sites for clients the world over from his offices in New Jersey. C) Westernet buys electricity from Canada and provides it to customers in Washington State. D) Sherri's Shipping transports manufactured goods between the U.S. and Asia, maintaining
60) ______
offices in both countries. 61) The ________ decentralizes its management and other decisions to the local country. A) borderless organization B) transnational organization C) global company D) multidomestic corporation
61) ______
62) Which of the following is a feature of a multidomestic corporation? A) Has a decentralized management. B) Eliminates artificial geographic borders. C) All decisions are made in the home country. D) Reflects an ethnocentric attitude.
62) ______
63) Multidomestic corporations reflect the ________. A) xenophobic attitude C) geocentric attitude
63) ______ B) polycentric attitude D) ethnocentric attitude
64) Which of the following is a multinational corporation that tailors marketing strategies to the host country's unique characteristics? A) Borderless organization B) Global company C) Transnational organization D) Multidomestic corporation
64) ______
65) Multidomestic corporations ________. A) maintain operations in multiple countries, but do not allow managers in each country to make their own decisions B) decentralize management and other decisions to the local country C) attempt to replicate their domestic successes by managing foreign operations from the home country D) reflect ethnocentric attitudes
65) ______
66) Which one of the following represents the basic difference between multidomestic corporations and global companies? A) Multidomestic corporations decentralize management to the local country, while global companies centralize management in the home country. B) Multidomestic corporations typically do business with more countries than global companies. C) Multidomestic corporations are run by global companies but must be owned by a local, national company. D) Multidomestic corporations reflect an ethnocentric attitude, while global companies reflect a polycentric attitude.
66) ______
67) As the international operations of their firm continues to grow, Theodore and James have realized that decentralized management using foreign nationals to run operations in the host countries works best. Their firm has developed into a ________ organization. A) global B) borderless C) transnational D) multidomestic
67) ______
68) A corporation drops its organizational structure based on countries and reorganizes into industry groups. This is an example of the company becoming a(n) ________. A) borderless organization B) global company C) polycentric organization D) ethnocentric company
68) ______
69) Marco works for a multinational corporation as a plant manager but must receive approval from the home office for any management changes to production processes. Marco most likely works
for _______ a _.
69)
______ A) multidomestic corporation C) global company 70) A global company reflects the ________. A) geocentric attitude C) polycentric attitude
B) polycentric company D) transnational company 70) ______ B) pancentric attitude D) ethnocentric attitude
71) Granval manages a production facility in Aughmenistan for a multinational company headquartered in Paris. His Paris bosses emphasize the importance of operating his plant efficiently so as to conserve scarce resources. It is likely Granval's employer is a ________. A) multidomestic corporation B) polycentric company C) transnational company D) global company
71) ______
72) If Shana's company decides to open another company in France but centralizes its management in the United States, it would be considered a ________. A) transnational corporation B) multidomestic corporation C) borderless organization D) global company
72) ______
73) If Marla's company changed its organizational structure from one based on country to one based on industry groups, it would best be considered a ________. A) foreign subsidiary B) borderless organization C) multidomestic corporation D) global company
73) ______
74) Transnational organizations are also known as ________. A) ethnocentric organizations B) borderless organizations C) multidomestic organizations D) polycentric organizations
74) ______
75) Which one of the following types of global organizations reflects the geocentric attitude? A) Regional organization B) Transnational organization C) Multidomestic corporation D) Global company
75) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 76) A transnational organization reflects an ethnocentric attitude.
76) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 77) Explain the differences between a multidomestic corporation, a global company, and a borderless organization. Include examples of companies for each of the types of organizations discussed. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 78) Melanie would like to become a part of the global retail community. Which of the following 78) ______ options should Melanie consider as her first step? A) She should engage in global sourcing. B) She should develop strategic alliances with foreign companies. C) She should engage in franchising. D) She should engage in licensing. 79) Theodore and James decide to enter into an agreement with a firm in Europe allowing them to use the rights to their software, brand name, and software specifications in return for a lump sum payment. The firm is a service organization that plans to use the software to assist its customers. Their agreement is a(n) ________. A) licensing agreement B) franchise agreement
79) ______
C) import agreement
D) export agreement
80) Melanie had been buying raw materials locally but she is being underpriced by her competitors. She thinks there might be lower-cost materials elsewhere. What advice would you give Melanie? A) She should engage in licensing. B) She should engage in global sourcing. C) She should engage in franchising. D) She should develop strategic alliances with foreign companies.
80) ______
81) Nathan uses ethnic craftsmen to make high quality oak furniture. If he decides to offer his furniture for sale in other countries, he will be engaging in ________. A) exporting B) importing C) licensing D) franchising
81) ______
82) Natalya operates a retail store in Romania. She buys consumer electronics from vendors in China and Japan to sell in her store. Natalya is engaging in ________, A) importing B) franchising C) global sourcing D) licensing
82) ______
83) Harley Davidson makes motorcycles but in its retail stores it also sells clothing, motorcycle accessories, jewelry, and many related products carrying the Harley trademarks made by other companies. Harley Davidson is engaging in ________. A) global sourcing B) franchising C) exporting D) licensing
83) ______
84) Theodore and James decide to enter into an agreement with a firm in Europe allowing them to use their software, brand name, and business methods in return for a lump sum payment and a percentage of sales. The European firm is a service organization that plans to use the software to serve its customers. Their agreement is a(n) ________. A) licensing agreement B) import agreement C) franchise agreement D) export agreement
84) ______
85) Adam has been hired by an organization that has a partnership with a foreign company. Both the partners share resources and knowledge while developing new products. Adam's organization has formed a ________. A) franchising company B) foreign subsidiary C) strategic alliance D) licensing company
85) ______
86) In 1984 Toyota and General Motors formed a company called NUMMI to build cars carrying both the General Motors and Toyota brands. NUMMI is an example of a(n) ________. A) nonequity strategic alliance B) global venture C) joint venture D) equity strategic alliance
86) ______
87) Joint ventures are a type of ________. A) strategic alliance C) foreign subsidiary
87) ______ B) license D) franchise
88) A domestic firm and a foreign firm sharing the cost of developing new products or building production facilities in a foreign country constitute a ________. A) franchising agreement B) joint venture C) foreign subsidiary D) strategic alliance
88) ______
89) Melamark LLC has customers on four continents. It would like to increase its global presence as a supplier to its global customers. The most expensive option would be to ________. A) export from a single production plant
89) ______
B) directly invest in a production facility in another country C) license producers in several countries D) form a strategic alliance with an existing company in another country 90) Melamark's advisor on global affairs is concerned that ________ carries too much risk. A) setting up a foreign subsidiary B) a joint venture C) a strategic alliance D) franchising
90) ______
91) Part of Jose's company's business plan involves setting up a foreign subsidiary. This arrangement involves ________. A) directly investing in a foreign country B) minimum global investment C) making products domestically and selling them abroad D) Jose's company giving the foreign subsidiary the right to use its brand name
91) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 92) Managers who want to get into a global market with minimal investment start with global sourcing.
92) ______
93) The process of exporting involves acquiring products made abroad and selling them domestically.
93) ______
94) Licensing and franchising are similar approaches involving one organization giving another organization the right to use its brand name, technology, or product specifications in return for a lump sum payment or a fee usually based on sales.
94) ______
95) Licensing is primarily used by service organizations and franchising is primarily used by manufacturing organizations.
95) ______
96) A strategic alliance is a partnership between an organization and a foreign company partner in which both share resources and knowledge in developing new products or building production facilities.
96) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 97) Describe the different approaches that a company may use when it decides to go international. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 98) Unlike the United States, the change from one regime to another in foreign countries can be less 98) ______ than peaceful. Differences in the ________ environment can lead to uncertainty and risk for global managers. A) cultural B) political/legal C) economic D) demographic 99) The Corrupt Foreign Practices Act forbids U.S. citizens to offer bribes to officials in other countries, but some of those officials depend on bribes to supplement their meager incomes. This particular dilemma is part of the ________ environment. A) political/legal B) cultural C) economic D) demographic
99) ______
100) If the rate of inflation in Tomturkistan increased suddenly, what effect would that have on the exchange rate of Tomturkistan currency for U.S. dollars? A) There would be no change; inflation is a domestic problem only. B) One U.S. dollar would purchase more Tomturkistan currency. C) Tomturkistan currency would purchase more U.S. goods than before.
100) _____
D) More U.S. dollars would be needed to purchase the same quantity of Tomturkistan goods as before inflation. 101) A ________ economy is one in which resources are primarily owned and controlled by the private sector. A) democratic B) planned C) free market D) command
101) _____
102) In Malbadia, a central committee formed by the political powers decides what products and how many of each will be produced. This situation is typical of a ________ economy. A) free market B) foreign C) planned D) free enterprise
102) _____
103) For American company Leather Exporters, first quarter sales in Italy were higher compared to the preceding year but profits were down. What could account for this difference? A) A change in the national leadership in Italy. B) A difference in the currency exchange rate. C) A reduction in trade barriers with Italy. D) A cultural change in Italian society.
103) _____
104) Coca-Moka, an American beverage company, sells its soft drinks in Thirstania. After earning large profits, Coca-Moka discovered it could not export those profits back to its American banks because of the ________ in Thirstania. A) exchange rate B) inflation rate C) export policies D) tax policies
104) _____
105) Hofstede's Five Dimensions of National Culture would predict which of the following? A) The French employees believe that rank should have its privileges. B) An Italian manager will readily and comfortably make decisions with few acts; he is willing to take great risks. C) American employees working in the United States prefer to work in teams and to share team rewards. D) A manager in Sweden will be driven to compete, to excel, and to amass wealth.
105) _____
106) Jack moved to China to manage his company's production facility there. Immediately he instituted the company practice of recognizing an employee of the month. The Chinese employees were horrified. Why might this be so? A) The employees are acting on their national cultural behavior patterns. B) The company culture was stronger than their national culture. C) Each employee took the competition seriously and wanted to win the recognition. D) None of them wanted to lose face by not being recognized.
106) _____
107) Alfredo believes that the CEO is no better than the janitor of the organization and neither should receive preferential treatment. Using the GLOBE model, what can we infer about Alfredo's culture? A) Alfredo's culture is low in low in humane orientation. B) Alfredo's culture is high in power distance. C) Alfredo's culture is low in power distance. D) Alfredo's culture is high in assertiveness.
107) _____
108) Bettina likes to know the end from the beginning. She gathers as much information as possible before making a decision. Bettina likely lives in a culture with high ________. A) performance orientation B) power distance C) future orientation D) uncertainty avoidance
108) _____
109) Caron admits she's a tough cookie. She thrives in an environment in which employees compete against each other for big rewards. It is likely that Caron's culture is high in ________. A) assertiveness B) future orientation C) performance orientation D) in-group collectivism
109) _____
110) In South America, the Sawi tribe values deceit and treachery. Taking advantage of other tribes is cause for celebration. This culture is ________. A) low in gender differentiation B) high in assertiveness C) high in future orientation D) low in humane orientation
110) _____
111) "Let's forget about tomorrow for tomorrow never comes." "Live for today." These expressions would be typical of a culture that is ________. A) high in assertiveness B) high in performance orientation C) low in humane orientation D) low in future orientation
111) _____
112) Outsiders would call them clannish. Ianos and his family are very close. At work, he gives his all to the team. His neighbors support each other but exclude people they do not know. This describes a culture that is ________. A) high in in-group collectivism B) high in institutional collectivism C) low in humane orientation D) high in performance orientation
112) _____
113) The hero is always a loner, riding off into the sunset. Employers expect key employees to make critical decisions alone; rewards are given to individuals, not to teams. This describes a culture that is ________. A) low in in-group collectivism B) low in institutional collectivism C) high in assertiveness D) high in institutional collectivism
113) _____
114) Helga has noticed an increasing number of female CEOs of large corporations and also that more fathers are staying home to raise children while the mothers assume positions of leadership in business. This is a culture with ________. A) low humane orientation B) high humane orientation C) low gender differentiation D) high gender differentiation
114) _____
115) "In this company, what you do matters a whole lot more than your last name." Bill's father, the company founder, expected Bill's supervisor to mentor the young man, to help him set goals, to train him and to develop his managerial skills with an emphasis on continuous improvement. Bill likely lives in a country with a ________. A) high performance orientation culture B) high in-group collectivism culture C) high institutional collectivism culture D) high assertiveness culture
115) _____
116) Employers in the global marketplace look for which one of the following? A) Respect for differences B) Multi-lingual skills C) A college degree in multicultural awareness D) Critical thinking skills
116) _____
117) American business students may be at a disadvantage because ________. A) many colleges and universities no longer require courses in foreign language B) tuition costs have risen beyond the reach of most high school graduates C) competition from foreign-born students makes it more difficult to be accepted at the better universities D) scholarships are being awarded to undocumented students
117) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 118) Only when a country's political/legal environment is unstable or revolutionary is it of concern to managers.
118) _____
119) When an American company earns profits in a foreign country, those profits are taxed according to the tax laws of the United States.
119) _____
120) The GLOBE framework for assessing cultures is similar to Hofstede's framework, but measures fewer dimensions.
120) _____
121) Mexico is an example of a collectivistic nation.
121) _____
122) The United States is an example of a country with low power distance.
122) _____
123) A high uncertainty avoidance society is threatened by ambiguity and experiences high levels of anxiety.
123) _____
124) A global mind-set refers to attributes that allow a leader to be effective in cross-cultural environments.
124) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 125) Discuss four global economic issues and how they affect management decisions, providing examples of each. 126) List and explain Hofstede's five dimensions of national culture. 127) Discuss the dimensions of the Global Leadership and Organizational Behavior Effectiveness (GLOBE) framework. Describe how each dimension compares to Hofstede's five dimensions of national culture.
1) C 2) D 3) B 4) B 5) A 6) B 7) A 8) C 9) B 10) A 11) A 12) B 13) D 14) TRUE 15) TRUE 16) TRUE 17) FALSE 18) Parochialism is typically defined as viewing the world solely through one's own eyes and perspectives. People with a parochial attitude do not recognize that others have different ways of living and working. Parochialism is a significant obstacle for managers working in a global business world. If managers fall into the trap of ignoring others' values and customs and rigidly keep on applying an attitude of "ours is better than theirs" to foreign cultures, they'll find it difficult to compete with other organizations around the world. Therefore, it is important to overcome parochialism in order to succeed in today's global environment. 19) a. Ethnocentric attitude - This is the parochialistic belief that the best work approaches and practices are those of the home country. Managers with an ethnocentric attitude believe that people in foreign countries do not have the needed skills, expertise, knowledge, or experience to make the best business decisions as people in the home country do. They don't trust foreign employees with key decisions. b. Polycentric attitude - This is the view that employees in the host country know the best work approaches and practices for running their business. Managers with a polycentric attitude view every foreign operation as different and hard to understand. Thus, these managers are likely to leave their foreign facilities alone and let foreign employees figure out how best to do things. c. Geocentric attitude - This is a world-oriented view that focuses on using the best approaches and people from around the globe. Managers with this type of attitude believe that it's important to have a global view both at the organization's headquarters in the home country and in the various foreign work facilities. Major issues and decisions are viewed globally by looking for the best approaches and people regardless of origin. 20) C 21) B 22) A 23) D 24) A 25) A 26) A 27) D 28) B 29) B 30) A 31) D 32) B 33) C 34) B 35) TRUE
36) TRUE 37) FALSE 38) TRUE 39) FALSE 40) Together Canada, the United States, and Mexico comprise the second largest trading bloc in the world. Goods travel freely among the three nations without tariffs or quotas, thereby making consumer goods more competitive relative to goods from countries not in NAFTA. U.S. businesses can take advantage of lower wage rates in Mexico, again making their products more competitive in both the domestic and global markets. 41) The goal of the World Trade Organization is to help countries conduct trade through a system of rules. It plays a role in monitoring, promoting, and protecting global trade. The WTO ruled that the European plane maker Airbus received improper European Union subsidies for the A380 super jumbo jet and several other airplanes, hurting its American rival, Boeing. 42) The IMF is an organization of 188 countries that promotes international monetary cooperation and provides member countries with policy advice, temporary loans, and technical assistance to establish and maintain financial stability and to strengthen economies. The IMF offers advice to countries and governments to get them through difficulties. 43) The World Bank Group is a group of five closely associated institutions, all owned by its member countries, that provides vital financial and technical assistance to developing countries around the world. The goal of the World Bank Group is to promote long-term economic development and poverty reduction by providing members with technical and financial support. For instance, during the recent global recession, financial commitments by the World Bank Group reached $100 billion as it helped nations respond to and recover from the economic downturn. 44) Countries enter into regional trading alliances for a variety of political and national security reasons. Mainly, countries choose to participate with the goal of stimulating economic growth. Reducing trade barriers such as tariffs or taxes imposed upon imported goods opens new markets for companies in participating countries. Firms may also be able to reduce labor costs by employing workers in another country within the trading alliance. The interlocking trade agreements may also discourage military conflict among trading partners. Barriers to travel, employment, and investment may be removed, further facilitating trade. When the trading partners subscribe to a common set of priorities, the alliance can exert considerable power such as in the areas of climate change, energy generation and consumption, and political policy. By combining their economic power, members of a trade alliance are in a better position to compete against larger countries. Member nations may also see social and cultural benefits. 45) C 46) B 47) D 48) C 49) D 50) C 51) C 52) TRUE 53) TRUE 54) FALSE 55) TRUE 56) FALSE 57) Global firms have spent billions of dollars building the infrastructure and supply chains used to support their current operations. These firms also employ millions of workers worldwide. These two reasons limit the political will to dismantle globalization. In addition, while some industries blame globalization for job loss, the primary culprit is automation. Globalization also benefits everyone since it keeps consumer prices down. Lastly, it pushes corporate profits higher which makes investors happy. All of these factors guarantee some level of globalization will continue to exist. 58) Managers need to possess the skills in demand by global firms. These include an understanding and sensitivity to cultural differences, flexibility in dealing with people from different backgrounds and an openness to new ideas. Ideally, a manager that speaks more than one language will have an advantage over someone who only speaks one
lang Managers that understand global markets and know how a business successfully enters other countries will be in uage. high demand. 59) C 60) D 61) D 62) A 63) B 64) D 65) B 66) A 67) D 68) A 69) C 70) D 71) D 72) D 73) B 74) B 75) B 76) FALSE 77) a. A multidomestic corporation is a multinational corporation (MNC) that decentralizes management and other decisions to the local country. Local employees are hired to manage the business and marketing strategies are tailored to that country's unique characteristics. This type of globalization reflects the polycentric attitude. Many consumer companies manage their global businesses using this approach because they must adapt their products and services to meet the needs of the local markets. With operations in almost every country on the globe, Switzerland-based Nestle's managers match the company's products to its consumers. In parts of Europe, Nestle sells products that are not available in the United States or Latin America. b. A global company centralizes its management and other decisions in the home country. These companies treat the world market as an integrated whole and focus on the need for global efficiency. Although these companies may have considerable global holdings, management decisions with company-wide implications are made from headquarters in the home country. This approach to globalization reflects the ethnocentric attitude. Some examples of companies that can be considered global companies include Sony, Deutsche Bank AG, and Merrill Lynch. c. Other companies are going international by eliminating structural divisions that impose artificial geographical barriers. This type of MNC is called a transnational or borderless organization, and reflects a geocentric attitude. Managers choose this form of international organization to increase efficiency and effectiveness in a competitive global marketplace. For example, IBM dropped its organizational structure based on country and reorganized into industry groups. Thomson SA, based in France, has eight major locations around the globe. 78) A 79) B 80) B 81) A 82) A 83) D 84) C 85) C 86) C 87) A 88) D 89) B 90) A 91) A
92) TRUE 93) FALSE 94) TRUE 95) FALSE 96) TRUE 97) Managers who want to get into a global market with minimal investment may start with global sourcing (also called global outsourcing). This involves purchasing materials or labor from around the world wherever it is cheapest. The goal here is to take advantage of lower costs to be more competitive. The next step may involve exporting the organization's products to other countries-that is, making products domestically and selling them abroad. In addition, an organization might import, which involves acquiring products made abroad and selling them domestically. Both usually entail minimal investment and risk. Managers also might use licensing or franchising, which are similar approaches involving one organization giving another organization the right to use its brand name, technology, or product specifications in return for a lump sum payment or a fee usually based on sales. The only difference is that licensing is primarily used by manufacturing organizations that make or sell another company's products and franchising is primarily used by service organizations that want to use another company's name and operating methods. When an organization has been doing business internationally for a while and has gained experience in international markets, managers may decide to make a greater direct foreign investment. One way to increase investment is through a strategic alliance, which is a partnership between an organization and a foreign company partner in which both share resources and knowledge in developing new products or building production facilities. Finally, managers may choose to directly invest in a foreign country by setting up a foreign subsidiary as a separate and independent facility or office. This subsidiary can be managed as a multidomestic organization (local control) or as a global organization (centralized control). This arrangement involves the greatest commitment of resources and poses the greatest amount of risk. 98) B 99) A 100) B 101) C 102) C 103) B 104) D 105) A 106) A 107) C 108) D 109) A 110) D 111) D 112) A 113) B 114) C 115) A 116) A 117) A 118) FALSE 119) FALSE 120) FALSE 121) TRUE 122) TRUE 123) TRUE 124) TRUE 125) a. Type of economy - There are two major types of economies. A market economy is one in which resources are
prim is one in which economic decisions are planned by a central government. Managers need to know about a country's arily economic system because it has the potential to constrain decisions and actions. As China shifts from a more own planned economy to a more free market, changing regulations and policies affect the decisions of managers ed conducting business in that country. and b. Currency exchange rates - A global firm's profits can vary dramatically depending on the strength of its home contr currency and the currencies of the countries in which it operates. Any revaluation of a nation's currency can affect olled the managers' decisions and the level of a company's profits. For instance, prior to the overall global economic by slowdown, the rising value of the euro against both the dollar and the yen contributed to strong profits for German the companies. priva c. Inflation means that prices for products and services are going up. But it also affects interest rates, exchange rates, te the cost of living, and the general confidence in a country's political and economic system. Managers need to secto monitor inflation trends so that they can make good decisions and anticipate any possible changes in a country's r. A monetary policies. com d. Diverse tax policies are a major worry for a global manager. Some host countries are more restrictive than the man organization's home country. Others are far more lenient. Managers need exact information on the various tax rules d in countries in which they operate to minimize their business's overall tax obligation. For the past several years, econ small business investment decisions in the United States have been affected by the uncertainty surrounding omy domestic tax policies. 126) Geert Hofstede developed one of the most widely referenced approaches to helping managers better understand differences between national cultures. His research found that countries vary on five dimensions of national culture. a. Individualism versus collectivism - Individualism refers to a social framework where people look after their own interests and those of their immediate family. The opposite of this is collectivism, that is characterized by a social framework where people expect others in the group that they are a part of to look after them and to protect them when they are in trouble. b. Power distance - A high power distance society accepts wide differences in power in organizations. Employees show a great deal of respect for those in authority. On the other hand, a low power distance society plays down inequalities. Employees in a low power distance organization are not afraid to approach their boss. c. Uncertainty avoidance - A society that is high in uncertainty avoidance is threatened with ambiguity and characterized by a high level of anxiety among its people. A society that is low in uncertainty avoidance is comfortable with taking risks and is also tolerant of different behavior and opinions. d. Achievement and nurturing - Achievement is the degree to which values such as assertiveness, the acquisition of money and material goods, and competition prevail. Nurturing is an attribute that emphasizes relationships and concern for others. e. Long-term and short-term orientation - People in a long-term orientation society look to the future and value thrift and persistence. People in short-term orientation societies value the past and emphasize respect for tradition. 127) The GLOBE model uses nine dimensions on which national cultures differ: a. Power distance: The degree to which members of a society expect power to be unequally shared. Identical to Hofstede. b. Uncertainty avoidance: Similar to Hofstede's description, the GLOBE team defined this dimension as a society's reliance on social norms and procedures to alleviate the unpredictability of future events. c. Assertiveness: The extent to which a society encourages people to be tough, confrontational, assertive, and competitive versus modest and tender. This is equivalent to Hofstede's achievement-nurturing dimension. d. Humane orientation: This is defined as the degree to which a society encourages and rewards individuals for being fair, altruistic, generous, caring, and kind to others. This is similar to Hofstede's nurturing dimension. e. Future orientation: The extent to which a society encourages and rewards future-oriented behaviors such as planning, investing in the future, and delaying gratification. This is equivalent to Hofstede's long-term and short-term orientation. f. Institutional collectivism: This term was defined, as Hofstede did, as the degree to which individuals are encouraged by societal institutions to be integrated into groups within organizations and society. g. Gender differentiation: The extent to which a society maximizes gender role differences as measured by how much status and decision-making responsibilities women have. This dimension is an addition to Hofstede's
fram . This dimension has no equivalent in Hofstede's framework. ewor i. Performance orientation: The degree to which a society encourages and rewards group members for performance k. improvement and excellence. This dimension is similar to Hofstede's achievement orientation. h. In-gr oup colle ctivis m: The exten t to whic h mem bers of a socie ty take pride in mem bers hip in small grou ps, such as their famil y and circle of close frien ds, and the orga nizat ions in whic h they' re empl oyed
Exam Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The ways in which people in an organization are different from and similar to one another is 1) _______ known as ________. A) work culture B) workplace diversity C) organizational democracy D) business etiquette 2) The period of time from the 1960s to 1970s focused on ________. A) complying with laws and regulations through affirmative action policies and programs B) assimilating minorities and women into the corporate setting C) making employees more aware and sensitive to the needs and differences of others D) diversity and inclusion for business success, profitability, and growth
2) _______
3) Soon after Jeff was hired as a company accountant, his company developed corporate programs to help improve the self-confidence and qualifications of diverse employees so they could "fit in." During which period of time did Jeff start working for his employers? A) 1960s to 1970s B) Early 1980s C) Late 1980s to late 1990s D) New millennium
3) _______
4) During which era was the term "workforce diversity" first used? A) New millennium B) Late 1980s C) Early 1980s D) 1960s to 1970s
4) _______
5) Which one of the following was a feature of the period from the late 1980s to the late 1990s in terms of workplace diversity? A) Seeing workplace diversity as a core business issue, important to achieve business success, profitability, and growth. B) Developing corporate programs to help improve self-confidence and qualifications of diverse individuals so they can "fit in". C) Focusing on complying with laws and regulations, such as Title VII of the Civil Rights Act. D) Shifting from compliance and focusing only on women and minorities to including everyone.
5) _______
6) In terms of workplace diversity, the New Millennium has witnessed increased focus on ________. A) shifting from compliance to include everyone in diversification efforts B) complying with laws and regulations laid down by the Equal Employment Opportunity Commission C) diversity and inclusion for business success, profitability, and growth D) assimilating minorities and women employees into the corporate setting
6) _______
7) People are going to be different. The focus of managers should be to ________. A) make sure the practices within their departments comply with the letter of the laws governing discrimination in employment B) find commonalities among various groups displaying surface-level diversity C) find ways to keep various groups within the workforce from creating conflict D) find ways to develop strong relationships with and engage the entire workforce
7) _______
8) Jack and Jill are discussing the new hire in their department: her hair color, skin tone, manner of
dr ess, and
__ __ __ _
accent. 8) Jack and Jill are focusing on ________ . A) stereotypes C) biases
B) deep-level diversity D) surface level diversity
9) Which one of the following demographic characteristics reflects surface-level diversity? A) Differences in values B) Ethnicity C) Values D) Personality
9) _______
10) Amanda works as a technical support executive at ColorWare Systems. Which of the following factors, if true, could trigger certain stereotypes about Amanda among her co-workers, though not necessarily reflecting the way they feel or think about her? A) Amanda tends to dominate discussions among her co-workers. B) Amanda prefers working late every evening to working over the weekend. C) Amanda has a Swedish mother and an African American father. D) Amanda does not believe in engaging in gossip about her coworkers.
10) ______
11) How does surface-level diversity differ from deep-level diversity? A) Surface-level diversity can affect the way people view organizational rewards and their communication with others, while deep-level diversity does not necessarily reflect the ways people think or feel. B) Surface-level diversity is reflected by differences in personality and values, while deep-level diversity is influenced by age and ethnic differences. C) Surface-level diversity becomes more important as people get to know each other, while deep-level diversity becomes less relevant with increasing familiarity between people. D) Surface-level diversity can affect the way people perceive others, especially in terms of assumptions or stereotyping, while deep-level diversity may affect general behavior of people at work.
11) ______
12) In the process of getting acquainted, John and his new co-worker Bill have discovered they have different tastes in music and books, that one is extroverted and the other introverted, that one prefers working in teams and the other works best alone. They are exploring ________. A) deep-level diversity B) biases C) stereotypes D) surface-level diversity
12) ______
13) Differences arising from which one of the following factors becomes more important to people as they get to know each other? A) Ethnicity B) Personality C) Sexual orientation D) Gender
13) ______
14) Which one of the following people management benefits arises from workplace diversity? A) Improved system flexibility B) Increased understanding of the marketplace C) Potential to increase market share D) Better use of employee talent
14) ______
15) Ben is selecting members for a problem-solving team. Which of the following team compositions
is
most
likely to 15) result in better team performa nce? A) Employees with at least ten years of seniority B) An all-male or all-female team C) Employees from the quality department D) Employees from a variety of ethnic and gender backgrounds
___ ___
16) Which of the following benefits of workplace diversity contributes to organizational performance? A) Reduced costs associated with high turnover and absenteeism. B) Increased understanding of the marketplace and improved ability to better market to diverse customers. C) Potential source of competitive advantage from improved innovation efforts. D) Ability to attract and retain employees of diverse backgrounds.
16) ______
17) In his exit interview, James, a member of a minority group, mentioned that he had been passed over for promotions in favor of less qualified internal candidates. This situation relates to ________. A) organizational strategy B) organizational performance C) financial management D) deep-level diversity
17) ______
18) When the VP of marketing selected the new product development team members, she made sure there was a mix of ages, genders, and ethnicities on the team. This VP was most concerned with ________. A) legal compliance B) organization performance C) people management D) organization strategy
18) ______
19) Which of the following benefits of workplace diversity is categorized as strategic? A) Better use of talent. B) Reduced costs associated with high turnover. C) Potential to improve market share. D) Improved system flexibility.
19) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 20) Inclusion is one of the most popular and controversial topics in management.
20) ______
21) Today the main emphasis of diversity programs is sensitivity training.
21) ______
22) The concept of workforce diversity expanded from compliance to an issue of business survival during the early 1980s.
22) ______
23) Workplace diversity refers exclusively to the differences between employee characteristics.
23) ______
24) Demographic characteristics such as differences in age, gender, race, etc. reflect surface-level diversity among employees.
24) ______
25) Deep-level diversity refers to easily perceived differences that may trigger certain stereotypes, but that do not necessarily reflect the ways people think or feel.
25) ______
26) Teams with diverse backgrounds performing interdependent tasks over a long period of time are more likely to experience conflict and resentment.
26) ______
27) An important impact that workplace diversity has on organizational performance is through the increase in employee turnover.
27) ______
28) Employees are less likely to share information and participate in decision-making in a more diverse work environment.
28) ______
29) One of the strategic benefits of workplace diversity is that it can be viewed as the "right" thing to do.
29) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 30) Define "workplace diversity." Provide a brief description of the evolution of workplace diversity over the last five decades. 31) Briefly explain the demographic characteristics that affect workforce diversity. 32) Give a brief description of the people management benefits derived from workplace diversity. 33) What benefits does workplace diversity afford an organization in terms of its performance? 34) How is workplace diversity beneficial to organizations from a strategic perspective? 35) How is workplace diversity beneficial to organizations from an ethical perspective? MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 36) Which one of the following correctly reflects the characteristics of the current U.S. population? 36) ______ A) The median age of the U.S. population has risen significantly over the last decade. B) The Hispanic community represents nearly one-third of the total U.S. population. C) Nearly one in five Americans today is an immigrant. D) The Asian population in the United States is presently the largest ethnic group. 37) As chief of new product development for a U.S. consumer goods firm, Carmen should be very aware that ________ is likely to have the greatest influence on consumer preferences for the next few decades. A) increasing inflation B) the aging of the population C) declining birth rates D) changes in religion
37) ______
38) The majority of the population increase in the next 35 years will come from ________. A) higher birth rates among minority ethnic groups B) advances in medical science that extend the life expectancy of the elderly C) immigrants and their descendants D) immigration of religious groups seeking political asylum
38) ______
39) By 2050, ________ percent of the population of the United States will be ________ A) 20; 65 and over B) 15; 80 and over C) 25; 55 and over D) 40; 25 and under
39) ______
40) Which of the following statements is true of the changing trends in U.S. workplaces? A) Organizations must recognize that they can't expect employees to assimilate into the
40) ______
organization
by adopting similar attitudes and values. B) In most U.S. metropolitan cities, more immigrants are employed in low-wage jobs like construction, cleaning, or manufacturing, than in white-collar occupations. C) People now entering the workforce are significantly older, less ethnically diverse and/or native-born. D) The surge in immigration, especially over the last two decades, has flooded the United States with low-wage foreign labor.
41) The total world population is forecast to hit 9.8 billion by 2050, at which point the United Nations predicts the total population will either stabilize or peak after growing for centuries at an ever-accelerating rate. The main reason for this major shift is the ________. A) decline in birthrates as nations advance economically B) high level of mobility of the international workforce across national borders C) alarming rate of depletion of natural resources necessary for sustaining the population D) unprecedented rate at which the world population is aging
41) ______
42) Which of the following trends has been observed in the world population in terms of aging? A) The world's population aged 80 and over is projected to decrease 233% by 2040. B) As nations have advanced economically, birthrates have increased in proportion to the growing world population. C) The world's population is growing older, but at a slower rate than it did in comparison with the previous two centuries. D) People aged 65 and older will represent 17% of the world's population by 2050.
42) ______
43) Trends observed in the shifting world population indicate that the average age of the world population is increasing. Also, the world's population aged over 80 is expected to more than double by the year 2040. Which of the following is a likely implication of such population trends? A) Decreasing demands on social entitlement programs. B) Decreasing preference for white-collar occupations. C) Dwindling labor supply. D) Increasing global savings rates.
43) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 44) According to projections of the U.S. population, the ethnic groups that will exhibit the most change are the Hispanic and African American populations.
44) ______
45) The main reason for the predicted stabilization of world population growth by 2050 is the decline in birthrates as nations advance economically.
45) ______
46) People aged 65 and older are expected to soon outnumber children under age 5 for the first time in history.
46) ______
47) Most babies born in the United States recently are whites of European descent.
47) ______
48) By the year 2050, one in every five persons in the United States will be over 40 years old.
48) ______
49) Worldwide population trends indicate that we will witness dwindling labor supply and increasing total global savings rates.
49) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 50) What are the significant trends occurring in the composition of the global workforce? What are the likely
repercus sions of such trends? MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 51) Which of the following perceptions do employers typically have of older employees? 51) ______ A) Better attendance B) Weak work ethic C) Resistance to new technology D) Lack of sound judgment 52) What positive perception do employers typically have of older employees? A) Enthusiastic towards new technology B) Open to change C) Flexible and adaptable D) Strong work ethic
52) ______
53) Given a choice between Jane, a 50-something internal candidate, and Jenny, a 20-something internal candidate, Joe selected Jane. Joe would probably say it was because ________. A) he thought Jane would be more flexible in meeting the needs of the new position B) he expected the quality of Jane's work would be better than Jenny's C) he thought Jenny would be uncomfortable with the technology in the new position D) he expected Jenny would ask for more time off
53) ______
54) Raul is concerned that when his older workers retire, he will not be able to fill their positions because ________. A) only older workers understand the history of their organizations B) younger workers are less likely to dedicate themselves to the job to the degree that older workers do. C) young workers lack even minimal communication skills D) too few students are receiving the solid math and science education required in high-growth industries
54) ______
55) Workers in the Millennial generation prefer ________. A) inclusion and acceptance B) teamwork and connection C) fairness and integration D) work-life balance and opportunity for advancement
55) ______
56) Which of the following statements is true of gender diversity in workplaces? A) Today, men make up nearly two-thirds of the workforce, while women account for the remaining third. B) No consistent male-female differences exist in problem-solving ability, analytical skills, competitive drive, motivation, sociability, or learning ability. C) Despite the disparity in representation in the workforce, women earn nearly as much as men do on a median basis. D) Affirmative action policies have resulted in women, generally, starting their careers at higher levels than men.
56) ______
57) Which one of the following is the best description of the provisions of the Civil Rights Act, Title VII? A) Prohibiting the forced retirement of most employees. B) Prohibiting discrimination against individuals with disabilities or chronic illnesses. C) Prohibiting discrimination against employees aged 40 or over. D) Prohibiting discrimination based on race, color, religion, national origin, or gender.
57) ______
58) Jobs that require focus and the ability to tune out ambient noise might be better suited to which of these categories of workers?
58) ______
A) Older workers C) Male workers
B) Hearing impaired workers D) Female workers
59) The ________ has focused recent global attention on gender inequalities in the workplace. A) "me-too" movement B) government C) women's liberation movement D) CEO Roundtable
59) ______
60) U.S. federal law does not prohibit discrimination against employees on the basis of ________. A) sexual orientation B) age C) religion D) race
60) ______
61) One executive at a large bank stated that ________ employees were more productive than traditional employees. A) autistic B) Muslim C) female D) older
61) ______
62) ________ is the biological heritage (including physical characteristics such as one's skin color and associated traits) that people use to identify themselves. A) Culture B) Ethnicity C) Race D) Nationality
62) ______
63) ________ refers to the social traits that are shared by a human population. A) Race B) Nationality C) Ancestry
63) ______ D) Ethnicity
64) Which of the following racial groups have been the focus of most race and ethnographic studies of workplace diversity in the United States? A) Hispanics and Whites B) Asians and African Americans C) African Americans and Whites D) Whites and Native Americans
64) ______
65) If my workplace goals included getting high scores on a performance evaluation, I would prefer that my supervisor be ________. A) female B) the same gender as me C) of an older generation than me D) of my own race
65) ______
66) Which of the following statements is true of the findings of studies on race and ethnicity in the workplace? A) Whites favor affirmative action programs and policies to a far greater degree than do African Americans. B) Individuals in workplaces tend to favor colleagues of a race other than their own in performance evaluations, promotion decisions, and pay raises. C) African Americans generally do worse than Whites in decisions related to the workplace. D) Whites and African-Americans display statistically significant and consistent differences in absenteeism rates, applied social skills at work, and accident rates.
66) ______
67) Which one of the following statements is true of employing disabled employees? A) Hiring people with disabilities leads to higher employment costs and lower profit margins. B) Employees with disabilities are exempt from potential disciplinary action, and there are high costs associated with accommodating disabled employees. C) A person with a disability for whom workplace accommodations have been provided has the same obligations and rights as far as job performance. D) Workers with disabilities lack job skills and experience necessary to perform as well as their abled counterparts.
67) ______
68) Lulumelon owns a chain of fashion stores that serve men's, women's, and children's clothing
cate gories.
Jay, a 68) motorcyc le accident victim with an amputat ed leg, applies for a position at one of the stores in an upmarke t location. Which one of the followin g assumpti ons by Lulumel on would prevent them from hiring him? A) Most workers with disabilities require no accommodation but for those who do, more than half of the workplace modifications cost $500 or less. B) Absentee rates for sick time are virtually equal between employees with and without disabilities. C) A person with a disability for whom workplace accommodations have been provided has the same obligations and rights as far as job performance is concerned. D) There is no set of guidelines on how to take any potential disciplinary action with disabled employees.
___ ___
69) One big challenge for managers of diverse workforces is to ________. A) provide accommodations for disabilities and religious beliefs that other employees don't view as special treatment B) assure that employees do not discuss their religious beliefs with other workers C) treat all employees identically despite individual differences D) provide accommodations for disabled workers that don't carry excessive costs
69) ______
70) Most disabled persons need ________. A) extra time to complete tasks C) significant job modifications
70) ______ B) no workplace accommodations D) additional pay due to high medical costs
71) Bruce will be making a presentation to the senior management team to encourage them to support efforts to improve the company's diversity policies and practices. One of the more compelling arguments he can use is ________. A) companies with inclusive practices outperformed their competitors B) companies with exclusive practices experienced higher profits C) Federal law does not require companies to make accommodations for LBGT employees D) the company will likely lose market share if it does not improve its practices TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 72) U.S. federal law does not prohibit discrimination against employees on the basis of sexual orientation.
71) ______
72) ______
73) Age discrimination is prohibited by the Fair Labor Standards Act and the Americans with Disabilities Act.
73) ______
74) Employers generally tend to view older workers as not being flexible or adaptable and being more resistant to new technology.
74) ______
75) Women and men now each make up almost half of the workforce in the United States.
75) ______
76) Since 2002, Muslims have filed about 20% of the EEOC's religious-based discrimination claims.
76) ______
77) One research study found that 80% of LGBT employees had experienced some form of bullying on the job.
77) ______
78) Men are found to follow a nurturing, inclusive, and collaborative style of leadership, in contrast to women.
78) ______
79) In the job setting, African Americans are found to receive lower job performance ratings, be paid less, and be promoted less frequently than their white counterparts.
79) ______
80) Employers are justified if they do not hire workers with disabilities as they lack job skills and experience necessary to perform as well as their abled counterparts.
80) ______
81) One problem with the Americans with Disabilities Act is that "disability" is defined very narrowly.
81) ______
82) U.S. federal law does not prohibit discrimination against employees on the basis of sexual orientation.
82) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 83) What are some of the fears held by employers regarding employment of disabled persons? Describe the actual realities associated with such fears. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 84) What type of discrimination usually involves jokes or negative stereotypes being perpetrated 84) ______ about fellow employees? A) Intimidation B) Mockery and insults C) Discriminatory policies D) Exclusion 85) ________ is a term that describes a tendency or preference toward a particular perspective or
ide ology.
85)
______ A) Prejudice
B) Bias
C) Impartiality
D) Reasoning
86) ________ refers to a preconceived belief, opinion, or judgment toward a person or a group of people. A) Impartiality B) Equanimity C) Bias D) Prejudice
86) ______
87) Judging a person on the basis of one's perception of a group to which he or she belongs is known as ________. A) integration B) prejudice C) stereotyping D) assimilation
87) ______
88) Kathleen likes cats. She believes people who own cats are independent and free spirits. She finds out Linda has a cat. Therefore, Linda is independent and free-spirited. In order, what is happening here? A) Stereotyping, bias, prejudice B) Prejudice, stereotyping, bias C) Bias, prejudice, stereotyping D) Bias, stereotyping, discrimination
88) ______
89) Discrimination refers to ________. A) judging a person based on a perception of a group to which that person belongs B) someone acting out their prejudicial attitudes toward people who are the targets of their prejudice C) a tendency or preference toward a particular perspective or ideology D) a preconceived belief, opinion, or judgment toward a person or a group of people
89) ______
90) What type of discrimination is said to have occurred when certain actions taken by representatives of an organization deny equal opportunity to perform or unequal rewards for performance? A) Incivility B) Exclusion C) Intimidation D) Discriminatory practices or policies
90) ______
91) Older workers in an organization are subjected to ________ if they are laid off for being highly paid and having lucrative benefits. A) incivility B) intimidation C) exclusion D) discriminatory practices
91) ______
92) Mary belongs to a group that requires women to wear long sleeves, long skirts or dresses, hair done up in a bun, and a small hat. Her coworkers often make negative comments about her appearance. In this situation, Mary is subjected to ________. A) mockery and insults B) intimidation C) exclusion D) discriminatory policies
92) ______
93) Which one of the following is an example of workplace discrimination in the form of exclusion? A) Many women in finance claim they are assigned to marginal job roles or are given light workloads that don't lead to promotion. B) African American employees at some companies have found racist graffiti in their work areas. C) Older workers may be targeted for layoffs because they are highly paid and have lucrative benefits. D) Female lawyers note that male attorneys frequently cut them off or do not adequately address their comments.
93) ______
94) As a form of discrimination, incivility is said to occur when ________.
94) ______
A) an employee's opinions are consciously ignored B) an employee belonging to a specific group is overtly threatened or bullied C) an employee is excluded from job opportunities or social events D) an employee is denied equal opportunity to perform 95) Which of the following examples would be considered appropriate stereotyping? A) Assuming red-haired people have rather nasty tempers. B) Assuming women to be particularly bad drivers. C) Asking someone from accounting to help with a budgeting problem. D) Bracketing working mothers as not being committed fully to their jobs.
95) ______
96) In workplace jargon, the term "glass ceiling" refers to ________. A) the theoretical organizational level beyond which no discrimination exists B) the cumulative difference between opportunities and rewards offered to male and female employees C) the invisible barrier that separates women and minorities from top management positions D) the perceived difference in cognitive abilities between male and female employees
96) ______
97) Ang Li has found it rather hard to move up in her managerial career at her workplace especially when compared to how fellow Tri-Valley graduate, Adam Watson, has managed to become the regional manager of sales in the company. This suggests the presence of ________ in Li's organization. A) a self-serving bias B) stereotyping C) a glass ceiling D) goldbricking
97) ______
98) The meaning of "glass" that is used in the term "glass ceiling" signifies ________. A) that the perceived barrier to top management positions is brittle and vulnerable to changes at the topmost organizational levels B) that organizations maintain a transparent ethos when defining management roles assigned to male and female employees C) that whatever is blocking the way for women to attain top management positions is not immediately apparent D) the gulf in opportunities and rewards afforded to male and female employees that can be "seen through" easily
98) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 99) Men are more likely than women to start out in an entry-level position, even when they have the same educational qualifications.
99) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 100) Identify and briefly describe each type of discrimination that occurs in the workplace. 101) Discuss the negative consequences that can result from discrimination, whether intentional or not. 102) Explain the concept of the "glass ceiling" in workplaces. What practices have aided in the creation of the "glass ceiling"? MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 103) Which of these social support functions can be provided by a good mentor? 103) _____ A) Sponsors the protégé by nominating for promotions. B) Acts as a role model. C) Provides exposure to influential people.
D) Gives advice on organizational culture. 104) Which of these career development functions can be provided by a good mentor? A) Lobbies for the protégé to get good assignments. B) Acts as a role model. C) Counsels the protégé on work and life balance. D) Shares personal experiences when relevant.
104) _____
105) Diversity training programs work better when they ________. A) are combined with punitive actions for noncompliance B) are reinforced by top management commitment to diversity C) are used primarily for new hires and not current employees D) occur every five or six years to reinforce beliefs
105) _____
106) Voluntary, employee-led groups that share distinctive qualities, interests or goals are known as ________. A) ethnic balance groups B) affinity groups C) identity groups D) minority groups
106) _____
107) One criticism of employee referrals for open positions is ________. A) the job candidate pool can become too diverse B) turnover among referral hires is extremely high C) employees hired through referrals are often unproductive D) it can lead to a lack of organizational diversity
107) _____
108) ________ is a process whereby an experienced organizational member provides advice and guidance to a less-experienced member. A) Delegating B) Mentoring C) Integration D) Assimilation
108) _____
109) A good mentor will ________. A) promote the protégé for assignments outside the protégé's regular duties B) introduce the protégé to influential managers within the firm C) groom the protégé for higher-level positions with the firm D) provide constructive criticism to the protégé
109) _____
110) Executives at Macromix have initiated a diversity skills training program to educate employees about the importance of diversity at the workplace. Which one of the following should be the first step to be implemented in the program? A) teaching people specific skills on how to communicate effectively with their fellow employees B) training employees on how to work effectively in a diverse work environment C) making employees aware of the assumptions and biases they may have D) increasing employees' sensitivity and openness to those who are different from them
110) _____
111) Groups made up of employees connected by some common dimension of diversity are known as employee ________. A) resource groups B) assistance teams C) care programs D) work councils
111) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 112) A mentor can serve as a sounding board for ideas a new employee might be reluctant to share with their supervisor.
112) _____
113) Our human nature is to not accept or approach anything that's different from us.
113) _____
114) Minority employees often feel singled out for special treatment because of all the attention lavished on them.
114) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 115) Give a brief description of diversity skills training in workplaces.
1) B 2) A 3) B 4) B 5) D 6) C 7) D 8) D 9) B 10) C 11) D 12) A 13) B 14) D 15) D 16) A 17) B 18) D 19) C 20) FALSE 21) FALSE 22) FALSE 23) FALSE 24) TRUE 25) FALSE 26) TRUE 27) FALSE 28) FALSE 29) TRUE 30) Workplace diversity is defined as the ways in which people in an organization are different from and similar to one another. This definition reinforces the belief that managers and organizations should view employees as having qualities in common as well as differences that separate them. The following table gives a description of the timeline of the evolution of workforce diversity: 1960s to 1970s - Focus on complying with laws and regulations: Title VII of Civil Rights Act; Equal Employment Opportunity Commission; affirmative action policies and programs. Early 1980s - Focus on assimilating minorities and women into corporate setting: Corporate programs developed to help improve self-confidence and qualifications of diverse individuals so they can "fit in." Late 1980s - Concept of workforce diversity expanded from compliance to an issue of business survival: Publication of Workforce 2000 opened business leaders' eyes about the future composition of workforce-that is, more diverse; first use of term workforce diversity. Late 1980s to Late 1990s - Focus on fostering sensitivity: Shift from compliance and focusing only on women and minorities to including everyone; making employees more aware and sensitive to the needs and differences of others. New Millennium - Focus on diversity and inclusion for business success: Workforce diversity seen as core business issue; important to achieve business success, profitability, and growth. 31) The demographic characteristics that we tend to think of when we think of diversity-age, race, gender, ethnicity, etc.-are just the tip of the iceberg. These demographic differences reflect surface-level diversity, which are easily perceived differences that may trigger certain stereotypes, but that do not necessarily reflect the ways people think or feel. Such surface-level differences in characteristics can affect the way people perceive others, especially when it comes to assumptions or stereotyping. However, as people get to know one another, these surface-level differences become less important and deep-level diversity-differences in values, personality, and work preferences-becomes
more rtant. These deep-level differences can affect the way people view organizational work rewards, communicate, react impo to leaders, negotiate, and generally behave at work. 32) The people management benefits that organizations get because of their workforce diversity efforts revolve around attracting and retaining a talented workforce. Organizations want a talented workforce because it's the people-their skills, abilities, and experiences - who make an organization successful. Positive and explicit workforce diversity efforts can help organizations attract and keep talented diverse people and make the best of the talents those individuals bring to the workplace. In addition, another important people management benefit is that as companies rely more on employee teams in the workplace, those work teams with diverse backgrounds often bring different and unique perspectives to discussions, which can result in more creative ideas and solutions. However, recent research has indicated that such benefits might be hard to come by in teams performing more interdependent tasks over a long period of time. Such situations also present more opportunities for conflicts and resentments to build. But, as the researchers pointed out, that simply means that those teams may need stronger team training and coaching to facilitate group decision making and conflict resolution. 33) The performance benefits that organizations get from workforce diversity include cost savings and improvements in organizational functioning. The cost savings can be significant when organizations that cultivate a diverse workforce reduce employee turnover, absenteeism, and the chance of lawsuits. Organizational performance can be enhanced through workforce diversity because of improved problem-solving abilities and system flexibility. An organization with a diverse workforce can tap into the variety of skills and abilities represented and just the fact that its workforce is diverse requires that processes and procedures be more accommodative and inclusive. 34) Workforce diversity is the key to extracting the best talent, performance, market share, and suppliers from a diverse country and world. With a diverse workforce, organizations can better anticipate and respond to changing consumer needs. Diverse employees bring a variety of points of view and approaches to opportunities, which can improve how the organization markets to diverse consumers. A diverse workforce also can be a powerful source of competitive advantage, primarily because innovation thrives in such an environment. Tapping into differing voices and viewpoints can be powerful factors in steering innovation. "Diversity powers innovation, helping businesses generate new products and services." 35) From an ethical perspective, workforce diversity and effectively managing diversity is the right thing to do. Although many societies have laws that say it's illegal to treat diverse people unfairly, many cultures also exhibit a strong ethical belief that diverse people should have access to equal opportunities and be treated fairly and justly. Businesses do have an ethical imperative to build relationships that value and enable all employees to be successful. Managers need to view workforce diversity as a way to bring different voices to the table and to build an environment based on trusting relationships. 36) A 37) B 38) C 39) A 40) A 41) A 42) D 43) C 44) FALSE 45) TRUE 46) TRUE 47) FALSE 48) FALSE 49) FALSE 50) According to United Nations forecasts, "The world is in the midst of an epochal demographic shift that will reshape societies, economies, and markets over the next century." The total world population in 2012 is estimated to be over 7 billion individuals. However, that number is forecasted to hit 9.8 billion by 2050, at which point the United Nations predicts the total population will either stabilize or peak after growing for centuries at an ever-accelerating rate. The main reason for this major shift is the decline in birthrates as nations advance economically. However, in developing countries in Africa, Asia, Latin America, the
Cari in high. One of the benefits is that many of these countries are likely to experience a "demographic dividend: a bbea rising proportion of young people entering the workforce, driving productivity and economic growth." n, The world's population is now aging at an unprecedented rate. The world's population aged 80 and over is and projected to increase 233 percent by 2040. The implications of these trends for societies and businesses are Ocea profound-from changing family structures to shifting patterns of work and retirement to emerging economic nia, challenges based on increasing demands on social entitlement programs, dwindling labor supply, and declining birth total global savings rates. Such demographic shifts will reshape the global workforce and organizational rates workplaces. rema 51) C 52) D 53) B 54) D 55) B 56) B 57) D 58) B 59) A 60) A 61) A 62) C 63) D 64) C 65) D 66) C 67) C 68) D 69) A 70) B 71) A 72) FALSE 73) FALSE 74) TRUE 75) TRUE 76) TRUE 77) FALSE 78) FALSE 79) TRUE 80) FALSE 81) FALSE 82) FALSE 83) a. Employers fear that hiring people with disabilities leads to higher employment costs and lower profit margins. In reality, absentee rates for sick time are virtually equal between employees with and without disabilities. Also, workers' disabilities are not a factor in formulas calculating insurance costs for workers' compensation. b. Employers fear that workers with disabilities lack job skills and experience necessary to perform as well as their abled counterparts. However, commonplace technologies such as the Internet and voice-recognition software have eliminated many of the obstacles for workers with disabilities; many individuals with disabilities have great problem-solving skills from finding creative ways to perform tasks that others may take for granted. c. Employers are uncertain over how to take potential disciplinary action with a worker with disabilities, not realizing that a person with a disability for whom workplace accommodations have been provided has the same obligations and rights as far as job performance. d. Employers believe that there are high costs involved with accommodating disabled employees. In truth, most
work with disabilities require no accommodation but for those who do, more than half of the workplace modifications ers cost $500 or less. 84) B 85) B 86) D 87) C 88) C 89) B 90) D 91) D 92) A 93) A 94) A 95) C 96) C 97) C 98) C 99) FALSE 100) Some of the more common forms of workplace discrimination are: a. discriminatory practices or policies - actions taken by representatives of the organization that deny equal opportunity to perform or unequal rewards for performance b. sexual harassment - unwanted sexual advances and other verbal and physical conduct of a sexual nature that create a hostile or offensive work environment c. intimidation - overt threats or bullying directed at members of specific groups of employees d. mockery or insults - jokes or negative stereotypes; sometimes the result of jokes taken too far e. exclusion - exclusion of certain people from job opportunities, social events, discussions, or informal mentoring; can occur unintentionally f. incivility - disrespectful treatment, including behaving in an aggressive manner, interrupting a person, or ignoring his or her opinions 101) In addition to lawsuits with expensive settlements, employers can experience reduced employee productivity, negative and disruptive interpersonal conflicts, increased employee turnover, and overall negative climate that can lead to serious problems for managers. These conditions lead to lower profits and lower stock trading prices, loss of competitive advantage and market share, and possible take-over or closure of the business. 102) Research has suggested that women are more likely than men to start out in entry-level positions, even though they have the same educational qualifications as men. In the 1980s, the term glass ceiling was first used in a Wall Street Journal article to refer to the invisible barrier that separates women and minorities from top management positions. The idea of a "ceiling" means that there is something blocking upward movement and the idea of "glass" is that whatever's blocking the way isn't immediately apparent. Research on the glass ceiling has looked at identifying the organizational practices and interpersonal biases that have blocked women's advancement. Findings from those studies have ranged from lack of mentoring, sex stereotyping, views that associate masculine traits with leader effectiveness, and bosses' perceptions of family-work conflict. 103) B 104) A 105) B 106) B 107) D 108) B 109) D 110) C 111) A 112) TRUE
113) TRUE 114) FALSE 115) Our human nature is to not accept or approach anything that's different from us. But it doesn't make discrimination of any type or form acceptable. We live and work in a multicultural context, so the challenge for organizations is to find ways for employees to be effective in dealing with others who aren't like them. That's where diversity skills training, specialized training to educate employees about the importance of diversity and teach them skills for working in a diverse workplace, comes in. Most diversity skills training programs start with diversity awareness training. During this type of training, employees are made aware of the assumptions and biases they may have. Once we recognize that, we can look at increasing our sensitivity and openness to those who are different from us. Sounds simple, but it's not. But if people can be taught to recognize that they're prejudging people and to consciously address that behavior, then the diversity awareness training has been successful. Then, the next step is diversity skills training, in which people learn specific skills on how to communicate and work effectively in a diverse work environment.
Exam Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Social obligation is the obligation of a business to meet its ________. 1) _______ A) economic and legal responsibilities B) social and economic responsibilities C) economic and social responsibilities D) social and legal responsibilities 2) If your university was paying minimum wage when necessary and applying the minimum legal standards to its employees' work environment, it would be said to have fulfilled its ________. A) social expectation B) social responsiveness C) social responsibility D) social obligation
2) _______
3) In the United States a company that meets, but does not exceed, federal pollution control standards and does not discriminate in hiring, promotion, and pay is generally meeting its ________. A) green management requirements B) social screening requirements C) social obligation D) social responsibility
3) _______
4) Under the concept of ________, the organization does what is required by the ________. A) socioeconomics; environment B) social responsiveness; government C) social obligation; law D) social responsibility; competitive market
4) _______
5) The ________ view of social responsibility holds that management's only social responsibility is to maximize profits. A) neoclassical B) sociocultural C) socioeconomic D) classical
5) _______
6) The most outspoken advocate of the classical view of social responsibility is economist and Nobel laureate ________. A) George Stigler B) John McCain C) Milton Friedman D) Bernard Madoff
6) _______
7) Under the classical view, aiding the few through philanthropy ________. A) benefits the whole by uplifting the downtrodden B) manipulates society through social engineering C) increases costs for consumers D) grows wealth for stockholders by increasing the stock trading price
7) _______
8) The ________ view is that management's social responsibility goes beyond making profits to include protecting and improving society's welfare. A) sociopolitical B) sociotechnical C) socioeconomic D) sociocultural
8) _______
9) If your university provides job-share programs, builds a day-care facility, and only uses recycled paper, it could be said to be ________. A) fulfilling its social obligation B) socially responsive C) socially image conscious D) socially aware
9) _______
10) When PETA supporters picketed Avon products because of its use of animals in the testing of its cosmetics, Avon changed its practices and stopped testing on animals. In this situation, Avon exercised ________. A) social obligation B) social responsiveness
10) ______
C) social engineering
D) classical responsibility
11) A U.S. business that provides on-site childcare facilities for employees as part of a negotiation with its union is ________. A) being socially responsive B) adopting social screening C) fulfilling its social obligations D) practicing green management
11) ______
12) When a firm advertises that it only uses recycled paper products, it is ________. A) meeting its social screening B) meeting its social obligation requirements C) being socially responsive D) following ISO 9000 standards
12) ______
13) Years ago McDonald's switched from Styrofoam boxes for its large sandwiches to corrugated boxes made partially from recycled materials because of concerns that Styrofoam took too long to decompose in landfills. In this situation, McDonald's was ________ A) fulfilling its social obligation B) socially image conscious C) socially responsive D) socially aware
13) ______
14) ________ is defined as a business firm's intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society. A) Social screening B) Social responsibility C) Social obligation D) Values-based management
14) ______
15) The aspect that differentiates social responsibility from other similar concepts is that it adds a(n) ________. A) social imperative B) environmental imperative C) ethical imperative D) legal imperative
15) ______
16) Which one of the following examples reflects a socially responsible action by an organization? A) UPS has a company-wide policy that urges employees to volunteer during natural disasters and other crises. B) Apple has eliminated lead-lined glass monitors from its product line and pioneered reduced-sized packaging that leverages recyclable materials. C) Ford Motor Company became the first automaker to endorse a federal ban on sending text messages while driving. D) By 2019, Chick-fil-A will stop selling products containing meat from poultry raised with antibiotics.
16) ______
17) According to the ________ argument on social responsibility, businesses should be socially responsible because responsible actions are the right thing to do. A) ethical obligation B) public image C) greater good D) better environment
17) ______
18) Following Hurricane Katrina in 2005, WalMart sent semis loaded with items such as bottled water, diapers, and other daily necessities to the New Orleans area. We can say that WalMart exercised ________. A) social obligation B) social awareness C) social responsiveness D) social responsibility
18) ______
19) The belief that business involvement can help solve difficult social problems is the ________ argument of social responsibility. A) public image B) better environment
19) ______
C) public expectation
D) possession of resources
20) Which one of the following arguments on social responsibility states that businesses should address social problems before they become serious and costly to correct? A) Superiority of prevention over cures B) Balance of responsibility and power C) Possession of resources D) Better environment
20) ______
21) Which one of the following arguments on social responsibility states that a business is socially responsible only when it pursues its economic interests? A) Possession of resources B) Public expectations C) Violation of profit maximization D) Superiority of prevention over cures
21) ______
22) Which one of the following arguments on social responsibility states that pursuing social goals hurts a business's economic productivity? A) Public image B) Stakeholder interests C) Long-run profits D) Dilution of purpose
22) ______
23) Which one of the following arguments on social responsibility states that there is no direct line of responsibility for social actions? A) Dilution of purpose B) Ethical obligation C) Lack of accountability D) Balance of responsibility and power
23) ______
24) Milton Friedman argued that a firm's managers are employees and therefore only responsible to A) activists B) shareholders C) stakeholders D) society
24) ______
25) Appleton would like to build a coal-burning electric generating facility located in a remote area because the cost involved is moderate. Appleton is following which of the social responsibility views? A) Legal view B) Classical view C) Stakeholder view D) Socioeconomic view
25) ______
26) Baskins wants to build a nuclear plant because this will not add to his city's already serious pollution problem, while taking care of its electricity requirements. Baskins is following which of the social responsibility views? A) Socioeconomic view B) Classical view C) Market view D) Activist view
26) ______
27) Carson wants to build an electricity generating plant that uses combustible fuels collected from the city's garbage, and located near the downtown government area so that the steam could be used for heating the government buildings after it has passed through the generating turbines. Carson is being mostly ________. A) socially guarded B) socially obligated C) socially focused D) socially responsive
27) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 28) According to the classical view of social responsibility, management's only social responsibility is to maximize profits.
28) ______
29) The most outspoken advocate of the classical view of organizational social responsibility is Alan Greenspan.
29) ______
30) According to the socioeconomic view, managers' social responsibilities go beyond making
profits to
include 30) protectin g and improvin g society's welfare.
___ ___
31) When a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities, it is said to be socially responsive.
31) ______
32) One argument against businesses championing social responsibility issues is that businesses already have too much power.
32) ______
33) Possession of resources is an argument in favor of social responsibility.
33) ______
34) Studies have confirmed that businesses that engage in social involvement enjoy higher profits than those which do not.
34) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 35) Compare and contrast the ideas of social obligation, social responsiveness, and social responsibility. 36) List and discuss three arguments in favor of business social responsibility and five arguments against it. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 37) Managers who consider the impact of their organization on the natural environment are said to 37) ______ be practicing ________. A) green management B) ethics-based management C) value-based management D) socially responsible management 38) In which of the following approaches of going green does the organization exhibit the least environmental sensitivity? A) Market approach B) Stakeholder approach C) Legal (light green) approach D) Dark green approach
38) ______
39) Under which approach do organizations exhibit little environmental sensitivity, and simply obey laws, rules and regulations? A) Market approach B) Stakeholder approach C) Activist approach D) Legal approach
39) ______
40) In the ________ approach of going green, organizations respond to the environmental preferences of customers. A) activist B) stakeholder C) market D) legal
40) ______
41) In the ________ approach of going green, an organization works to meet the environmental demands of its employees, suppliers, or community. A) dark green B) stakeholder C) light green D) market
41) ______
42) EPA regulations permit the release of 150 micrograms of particulate matter per cubic meter of air every 24 hours from paint shops. Utilimotors, a utility truck maker, monitors its emissions so it releases between 140 and 150 micrograms. Which approach of green management does Utilimotors use?
42) ______
A) Activist approach C) Legal approach
B) Market approach D) Stakeholder approach
43) Which approach deals with an organization changing its interaction with the environment because of the preferences of its customers? A) Legal approach B) Stakeholder approach C) Activist approach D) Market approach
43) ______
44) Under which approach does the organization work to meet the environmental demands of multiple groups of people including employees, suppliers, or the community? A) Legal approach B) Stakeholder approach C) Activist approach D) Market approach
44) ______
45) Which of the following ISO standards is related to quality management? A) ISO 8000 B) ISO 15000 C) ISO 14000
45) ______ D) ISO 9000
46) Which of the following approaches of going green reflects the highest degree of environmental sensitivity and is also a good illustration of the social responsibility of the organization? A) Stakeholder approach B) Legal approach C) Activist approach D) Market approach
46) ______
47) Which of the following ISO standards is related to environmental management? A) ISO 8000 B) ISO 14000 C) ISO 16000 D) ISO 9000
47) ______
48) Under which approach is the organization driven to look for ways to respect and preserve the earth and its natural resources? A) Activist approach B) Legal approach C) Stakeholder approach D) Market approach
48) ______
49) Miller's Multivitamins uses only organically grown fruits and vegetables in its vitamins. It purifies any water used in its processes before releasing it back into the environment and exceeds the EPA requirements for cleaning particulates from the air it uses. Which approach to green management does Miller's Multivitamins use? A) Legal B) Stakeholder C) Market D) Activist
49) ______
50) Many companies around the globe voluntarily report their efforts in promoting environmental sustainability using the guidelines developed by the ________. A) Environmental Protection Agency B) Global Reporting Initiative C) Global Compact D) Organization for Economic Co-operation and Development
50) ______
51) Employees and customers exerted pressure on Amazon until it issued a public statement indicating the firm would use its clout to push for tougher environmental standards. This is an example of a(n) ________ approach to sustainability. A) light green B) market C) stakeholder D) medium green
51) ______
52) A report by the Global Reporting Initiative indicates that ________ of the world's 250 largest firms have set specific emissions reduction targets.? A) 90% B) 67% C) 50% D) 30%
52) ______
53) One way to evaluate a company's green actions is to use the ________ list of the most sustainable
cor poratio
ns in the 53) world. A) Global 400
___ ___ B) Global 500
C) Global 200
D) Global 100
54) To be named on the Global 100 list, which is announced each year at the World Economic Forum, a company ________. A) has to display a superior ability to effectively manage environmental and social factors B) has to be free from EPA violations C) has to submit an application with supporting documentation D) has to have earned ISO certification TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 55) The legal approach to going green is also known as the dark green approach.
54) ______
55) ______
56) An organization is said to adopt the market approach to going green when it responds to the environmental demands made by its stakeholders.
56) ______
57) In the activist approach to going green, an organization looks for ways to protect its sources of supply.
57) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 58) Explain the four approaches that organizations can take with respect to environmental issues and going green. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 59) ________ defined as the basic convictions about right and wrong decisions and behavior. 59) ______ A) Ethics is B) Principles are C) Beliefs are D) Values are 60) At the ________ level of moral development, a person's choice between right or wrong is based on personal consequences from outside sources, such as physical punishment, reward, or exchange of favors. A) preconventional B) conventional C) post-conventional D) principled
60) ______
61) In which one of the stages of moral development do individuals stick to rules to avoid physical punishment and follow rules only when doing so is in their immediate interest? A) Principled stage B) Preconventional stage C) Conventional stage D) Post-conventional stage
61) ______
62) Norman is a stickler for following the rules because he is sure he will be caught and punished if he doesn't. What is Norman's level of moral development? A) Conventional B) Post-conventional C) Principled D) Preconventional
62) ______
63) At the ________ level of moral development, ethical decisions rely on maintaining expected standards and living up to the expectations of others. A) preconventional B) principled C) post-conventional D) conventional
63) ______
64) In which one of the following stages of moral development do individuals live up to what is expected by people close to them and maintain order by fulfilling obligations to which they have agreed? A) Conventional stage B) Conscientious stage
64) ______
C) Principled stage
D) Preconventional stage
65) ________ represent basic convictions about what is right and wrong. A) Principles B) Dogmas C) Values
65) ______ D) Beliefs
66) The phrase "My word is my bond" is likely to be spoken by someone at the ________ stage of moral development. A) principled B) conventional C) post-conventional D) preconventional
66) ______
67) At the ________ level of moral development, individuals define moral values apart from the authority of the groups to which they belong or society in general. A) conventional B) principled C) unconventional D) preconventional
67) ______
68) Pharmacists who decline to dispense drugs that cause abortions are functioning at the ________ stage of moral development. A) unconventional B) principled C) preconventional D) conventional
68) ______
69) In which of the following stages of moral development do individuals value rights of others and uphold absolute values and rights regardless of the majority's opinion? A) Conventional stage B) Unconventional stage C) Principled stage D) Preconventional stage
69) ______
70) John is offered an attractive incentive to steal sensitive information about his company's wealthy investment customers. Which one of the following statements best reflects John's thoughts if he is at the preconventional level of moral development? A) I am liable to be criminally prosecuted for my involvement in stealing the information. B) My job is to protect the information that this company deals in and I should not violate my duties. C) If I do go through with the act, I will be letting down my manager and coworkers badly. D) Going through with this act would be highly unfair not just to the client, but also to my employers.
70) ______
71) John is offered an attractive incentive to steal sensitive information about his company's wealthy investment customers. Which of the following statements best reflects John's thoughts if he is at the principled level of moral development? A) By stealing from another person, I will be in violation of the moral standards I've come to expect of myself. B) If I am convicted for this crime, I will surely be imprisoned and will probably never be employed anywhere else. C) If my involvement is detected, my friends and family would be humiliated by my actions. D) My job is to protect the information that this company deals in and I should not be violating my duties.
71) ______
72) ________ measures the strength of a person's convictions. A) Moral development B) Locus of control C) Social desirability D) Ego strength
72) ______
73) Upper management is pushing hard to increase earnings per share. If Moe yields to this pressure despite misgivings about the use of a non-certified material in the production of climbing
equ ent, he ipm will be
demonst 73) rating ________ . A) high ego strength C) external locus of control
___ ___
B) weak ego strength D) internal locus of control
74) Despite reassurances from R&D's internal testing lab, Stephen believes the new material for climbing ropes should not be used in their manufacture until it has been certified by an independent lab. It would appear that Stephen has ________. A) external locus of control B) high ego strength C) weak ego strength D) internal locus of control
74) ______
75) ________ is the degree to which people believe they control their own fate. A) Social responsibility B) Locus of control C) Ego strength D) Social obligation
75) ______
76) What can be said about a manager who believes that she can work hard and will meet the productivity goals of her organization despite unfavorable conditions? A) She has an internal locus of control. B) She has a weak ego strength. C) She has an external locus of control. D) She has a high ego strength.
76) ______
77) "It's not my fault!" is a cry often heard from someone with ________ locus of control. A) no B) an internal C) an external D) a weak
77) ______
78) Which one of the following organizations is best suited to promote ethical behavior in its employees? A) An organization that rewards success without asking how it was achieved. B) An organization that has formal rules and regulations in place. C) An organization that punishes employees who do not meet goals. D) An organization that has a reward and punishment system that depends on specific goal outcomes.
78) ______
79) Which one of the following is true concerning the impact of organizational culture on ethical behavior? A) An organization with strong culture can encourage either ethical or unethical behavior. B) An organizational culture that is high in control encourages unethical behavior. C) An organization with low conflict tolerance encourages ethical behavior. D) An organizational culture that is high in conflict tolerance encourages unethical behavior.
79) ______
80) A student who never considers breaking into an instructor's office to steal an accounting exam didn't think twice about asking a friend who took the same course from the same instructor last semester what questions were on the exam. What does this example illustrate? A) This example illustrates the concept of issue intensity. B) This example illustrates the concept of value-based management. C) The student involved has a strong ego strength. D) The student involved has an internal locus of control.
80) ______
81) A cartoon showing black smoke from a smokestack and the caption "We're okay as long as the wind keeps blowing" illustrates which factor of issue intensity? A) Probability of harm B) Greatness of harm C) Consensus of wrong D) Proximity to victims
81) ______
82) The Foreign Corrupt Practices Act makes it illegal for U.S. firms to ________. A) knowingly pay a foreign clerical or administrative employee in exchange for service B) make any cash payment for deferential treatment in a foreign transaction C) make any payment over 5 percent of total cost toward administrative overhead in foreign transactions D) knowingly corrupt a foreign official
82) ______
83) The Global ________ is a document created by the United Nations outlining principles for doing business globally in the areas of human rights, labor, the environment, and anticorruption. A) Convention B) Ethics C) Reporting Initiative D) Compact
83) ______
84) Freedom of association and the effective recognition of the right to collective bargaining are the Global Compact principles in the area of ________. A) labor standards B) human rights C) anti-corruption D) union representation
84) ______
85) The idea that businesses should eliminate discrimination with respect to employment and occupation is a Global Compact principle in the area of ________. A) anticorruption B) human rights C) labor standards D) environment
85) ______
86) The centerpiece of the ________ efforts is the Anti-Bribery Convention that was the first global instrument to combat corruption in cross-border business deals. A) United Nations' B) Ethics and Compliance Officer Association's C) Institute of Global Ethics' D) Organization for Economic Co-operation and Development's
86) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 87) In the preconventional stage of moral development, individuals make a clear effort to define moral principles apart from the authority of the groups to which they belong or of society in general.
87) ______
88) At the conventional level of moral development, ethical decisions rely on maintaining expected standards and living up to the expectations of others.
88) ______
89) At the principled level of moral development, an individual values the rights of others and upholds absolute values and rights regardless of the majority's opinion.
89) ______
90) The term "values" refers to basic convictions about what is right and wrong behavior.
90) ______
91) People with an internal locus of control believe that what happens to them is due to luck or chance.
91) ______
92) An organization's structural design, its goals, performance appraisal systems, and reward allocation procedures influence the ethical choices of employees.
92) ______
93) When employees are evaluated only on outcomes, they may be pressured to do whatever is necessary to look good on the outcomes, and not be concerned with how they got those results.
93) ______
94) The greater the probability that some action will cause harm, the greater the intensity of the
issu e.
94)
______ 95) The Global Contract is a document created by the United Nations outlining principles for doing business globally in the areas of human rights, labor, the environment, and anticorruption.
95) ______
96) The Organization for Economic Co-Operation and Development developed a global trade agreement.
96) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 97) Identify and describe the three levels and six stages of moral development. 98) Outline the two individual characteristics that play a role in determining whether a person behaves ethically. 99) Write a short essay on the structural variables that can influence employees' ethical behavior. 100) Discuss the importance of an organization's culture as a factor that determines an employee's ethical behavior. 101) What is the UN Global Compact? What are the 10 principles outlined in it? MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 102) Which of the following options is most likely to have the greatest impact in encouraging 102) _____ employees to behave ethically? A) Implement a comprehensive ethical program. B) Model ethical behavior beginning with the organization's top leaders. C) Provide a written code of ethics and decision rules. D) Select only ethical employees. 103) How can managers identify the ethically questionable applicants even before they become part of the workforce? A) By performing background checks B) By including integrity testing in the selection process C) By requiring letters of recommendation D) By favoring candidates who come with a reference from existing employees
103) _____
104) The most common core values listed in a typical code of ethics include ________. A) diversity, sustainability, and legality B) integrity, diversity, legality, and sustainability C) integrity, teamwork, respect, innovation, and client focus D) integrity, market focused, diversity, and respect
104) _____
105) A ________ is a formal statement of an organization's primary values and the ethical rules it expects its employees to follow. A) mission statement B) vision statement C) code of ethics D) values statement
105) _____
106) The primary debate about ethics training programs is whether ________. A) ethics training is sufficient B) the programs decrease awareness of ethical issues in business C) the programs cause a regression in a person's moral development D) ethics can be taught
106) _____
107) Marveline Company brought in help from outside to evaluate decisions and management
pract ices in
relation 107) to the organizat ion's code of ethics. These evaluatio ns are called ________ audits. A) independent ethics C) social responsibility
____ _
B) social protective D) independent social
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 108) The choice of which activities to reward and punish sends a strong signal to the employees regarding their ethical decisions.
108) _____
109) When a firm has a code of ethics in place, the role of managers in enforcing ethical behavior is minimized.
109) _____
110) Pressure to perform and meet goals has little impact on an employee's decision to behave ethically.
110) _____
111) It is important that firms be concerned with both the ends and the means used to achieve them.
111) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 112) In a short essay, discuss some of the ways in which managers can encourage ethical behavior and create a comprehensive ethics program. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 113) Employees who raise ethical concerns or issues in an organization are known as ________. 113) _____ A) whistle-blowers B) employee-volunteers C) philanthropist D) entrepreneurs 114) The ________ Act offers some legal protection to whistle-blowers. It has a provision wherein any manager who retaliates against an employee for reporting violations faces a stiff penalty of a 10-year jail sentence. A) Glass-Steagall B) Sarbanes-Oxley C) Taft-Hartley D) Landrum-Griffin
114) _____
115) A ________ is an individual or organization who seeks out opportunities to improve society by using practical, innovative, and sustainable approaches. A) sustainability contractor B) whistle-blower C) philanthropist D) social entrepreneur
115) _____
116) Target's donation of 5% of its annual income to community support is an example of ________. A) social engineering B) social screening C) corporate philanthropy D) corporate responsiveness
116) _____
117) If Google asks 25 members of its executive team to spend a full day during their annual
team -buildi
ng 117) retreat building a house in Las Vegas with Habitat for Humanit y, the executive s would be engaging in employe e ________ . A) volunteering efforts C) administering efforts
____ _
B) whistle-blowing efforts D) entrepreneuring efforts
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 118) About 70% of all large firms have some form of employee ethics training.
118) _____
119) To encourage employees to report ethical concerns, managers must make sure the reporting employee knows the outcome of any investigation, including the punishment meted out to the perpetrator.
119) _____
120) Employees who raise ethical concerns or issues to others inside or outside the organization are called social activists.
120) _____
121) Under the Sarbanes-Oxley Act, whistle-blowers in the United States who report suspected corporate violations of laws now have protection from reprisals and retaliation.
121) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 122) Who are whistle-blowers? What can managers do to protect them?
1) A 2) D 3) C 4) C 5) D 6) C 7) C 8) C 9) B 10) B 11) A 12) C 13) C 14) B 15) C 16) B 17) A 18) D 19) B 20) A 21) C 22) D 23) C 24) B 25) B 26) A 27) D 28) TRUE 29) FALSE 30) TRUE 31) FALSE 32) TRUE 33) TRUE 34) FALSE 35) Social obligation occurs when a firm engages in social actions because of its obligation to meet its economic and legal responsibilities. The organization does only what it is obligated to do and nothing more. This idea reflects the classical view of social responsibility that says that management's only social responsibility is to maximize profits. In contrast to social obligation, however, both social responsiveness and social responsibility reflect the socioeconomic view. According to this view a manager's social responsibilities go beyond making profits to include protecting and improving society's welfare. This view is based on the belief that corporations are not independent entities responsible only to stockholders, but have an obligation to the larger society. Social responsiveness occurs when a company engages in social actions in response to some popular social need. Managers are guided by social norms and values and make practical, market-oriented decisions about their actions. A socially responsible organization views things differently. It goes beyond what it is obligated to do or chooses to do because of some popular social need and does what it can to help improve society because it is the right thing to do. Social responsibility is defined as a business's intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society. A socially responsible organization does what is right because it feels it has an ethical responsibility to do so. 36) Arguments in favor of business social responsibility include: a. Public expectations - Public opinion now supports businesses pursuing economic and social goals. b. Long-run profits - Socially responsible companies tend to have more secure long-run profits.
c. are the right thing to do. Ethic d. Public image - Businesses can create a favorable public image by pursuing social goals. al e. Better environment - Business involvement can help solve difficult social problems. oblig f. Discouragement of further governmental regulation - By becoming socially responsible, businesses can expect less ation government regulation. g. Balance of responsibility and power - Businesses have a lot of power and an equally large amount of Busi responsibility is needed to balance against that power. nesse h. Stockholder interests - Social responsibility will improve a business's stock price in the long run. s i. Possession of resources - Businesses have the resources to support public and charitable projects that need shou assistance. ld be j. Superiority of prevention over cures - Businesses should address social problems before they become serious and socia costly to correct. lly resp Arguments against business social responsibility include: onsib a. Violation of profit maximization - Business is being socially responsible only when it pursues its economic le interests. beca b. Dilution of purpose - Pursuing social goals dilutes business's primary purpose of achieving economic use productivity. resp c. Costs - Many social responsibility actions do not cover their costs and someone must pay those costs. onsib d. Too much power - Businesses have a lot of power already and if they pursue social goals they will have even le more power. actio e. Lack of skills - Business leaders lack the necessary skills to address social issues. ns f. Lack of accountability - There are no direct lines of accountability for social actions. 37) A 38) C 39) D 40) C 41) B 42) C 43) D 44) B 45) D 46) C 47) B 48) A 49) D 50) B 51) C 52) B 53) D 54) A 55) FALSE 56) FALSE 57) FALSE 58) a. Legal approach - This approach is also known as the light green approach. Under this approach, organizations simply do what is required legally. They exhibit little environmental sensitivity. They obey laws, rules, and regulations without legal challenge. This approach illustrates social obligation. b. Market approach - As an organization becomes more sensitive to environmental issues, it may adopt this approach. Here, organizations respond to the environmental preferences of their customers. Whatever customers demand in terms of environmentally-friendly products is what the organization provides. This approach illustrates social responsiveness. c. Stakeholder approach - Here, the organization works to meet the environmental demands of multiple
stake as employees, suppliers, or community. This approach also illustrates social responsiveness. hold d. Activist approach - If an organization pursues this approach, it looks for ways to protect the earth's natural ers resources. It is also known as the dark green approach. This approach reflects the highest degree of environmental such sensitivity and illustrates social responsibility. 59) D 60) A 61) B 62) D 63) D 64) A 65) C 66) B 67) B 68) B 69) C 70) A 71) A 72) D 73) B 74) B 75) B 76) A 77) C 78) B 79) A 80) A 81) D 82) D 83) D 84) A 85) C 86) D 87) FALSE 88) TRUE 89) TRUE 90) TRUE 91) FALSE 92) TRUE 93) TRUE 94) TRUE 95) FALSE 96) FALSE 97) An individual's moral development can be divided into three levels, each having two stages. At each successive stage, an individual's moral judgment becomes less dependent on outside influences and more internalized. The three levels of moral development are preconventional, conventional, and principled. At the preconventional level, an individual's choice between right or wrong is based on personal consequences from outside sources, such as physical punishment, reward, or exchange of favors. This level includes stage 1 where an individual sticks to the rules to avoid punishment and stage 2 where the individual follows the rules only when doing so is in his or her immediate interest. At the conventional level, ethical decisions rely on maintaining expected standards and living up to the expectations of others. The third and fourth stages are in the conventional level. In stage 3, an individual tries to live up to what is expected by people close to him or her. In stage 4, an individual tries maintaining conventional order
by s to which he has agreed. fulfil At the principled level, an individual defines moral values apart from the authority of the groups to which he or she ling belongs. The 5th and 6th stages are a part of this level. At stage 5, an individual values the rights of others and oblig upholds absolute values and rights regardless of the majority's opinion. Finally, at stage 6, an individual follows his ation or her self-chosen ethical principles even if they violate the law. 98) Values and personality are the two individual characteristics that play a role in determining whether a person behaves ethically. Each person comes to an organization with a relatively entrenched set of personal values, which represent basic convictions about what is right and wrong. An individual's values develop from a young age based on what he or she sees and hears from parents, teachers, friends, and others. Thus, employees in the same organization often possess very different values. Values are broad and cover a wide range of issues. Two personality variables that influence an individual's actions according to his or her beliefs about what is right or wrong are ego strength and locus of control. Ego strength measures the strength of a person's convictions. People with high ego strength are likely to resist impulses to act unethically and instead follow their convictions. Individuals high in ego strength are more likely to do what they think is right and be more consistent in their moral judgments and actions than those with low ego strength. Locus of control is the degree to which people believe they control their own fate. People with an internal locus of control believe they control their own destinies. They are more likely to take responsibility for consequences and rely on their own internal standards of right and wrong to guide their behavior. They are also more likely to be consistent in their moral judgments and actions. People with an external locus believe what happens to them is due to luck or chance. They are less likely to take personal responsibility for the consequences of their behavior and more likely to rely on external forces. 99) An organization's structural design can influence whether employees behave ethically. Those structures that minimize ambiguity and uncertainty with formal rules and regulations and those that continuously remind employees of what is ethical are more likely to encourage ethical behavior. Other structural variables that influence ethical choices include goals, performance appraisal systems, and reward allocation procedures. Although many organizations use goals to guide and motivate employees, those goals can create some unexpected problems. One study found that people who do not reach set goals are more likely to engage in unethical behavior, even if they do or do not have economic incentives to do so. An organization's performance appraisal system also can influence ethical behavior. Some systems focus exclusively on outcomes, while others evaluate means as well as ends. When employees are evaluated only on outcomes, they may be pressured to do whatever is necessary to look good on the outcomes, and not be concerned with how they got those results. Closely related to the organization's appraisal system is how rewards are allocated. The more that rewards or punishment depend on specific goal outcomes, the more employees are pressured to do whatever they must to reach those goals, perhaps to the point of compromising their ethical standards. 100) An organization's culture consists of shared organizational values. These values reflect what the organization stands for and what it believes in as well as create an environment that influences employee behavior ethically or unethically. When it comes to ethical behavior, a culture most likely to encourage high ethical standards is one that is high in risk tolerance, control, and conflict tolerance. Employees in such a culture are encouraged to be aggressive and innovative, are aware that unethical practices will be discovered, and feel free to openly challenge expectations they consider to be unrealistic or personally undesirable. Because shared values can be powerful influences, many organizations are using values-based management, in which the organization's values guide employees in the way they do their jobs. An organization's managers play an important role here. They are responsible for creating an environment that encourages employees to embrace the culture and the desired values as they do their jobs. People look to see what those in authority are doing and use that as a benchmark for acceptable practices and expectations. A strong culture exerts more influence on employees than a weak one. If a culture is strong and supports high ethical standards, it has a powerful and positive influence on the decision to act ethically or unethically. 101) The UN Global Compact is a document created by the United Nations outlining principles for doing business globally in the areas of human rights, labor, the environment, and anticorruption. It serves as a guide to being ethical in international business.
The iple 1: Support and respect the protection of international human rights within their sphere of influence. 10 Principle 2: Make sure business corporations are not complicit in human rights abuses. princ Labor Standards: iples Principle 3: Freedom of association and the effective recognition of the right to collective bargaining. outli Principle 4: The elimination of all forms of forced and compulsory labor. ned Principle 5: The effective abolition of child labor. in it Principle 6: The elimination of discrimination in respect to employment and occupation. are: Environment: Hum Principle 7: Support a precautionary approach to environmental challenges. an Principle 8: Undertake initiatives to promote greater environmental responsibility. Righ Principle 9: Encourage the development and diffusion of environmentally-friendly technologies. ts: Anti-Corruption: Princ Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery. 102) A 103) B 104) C 105) C 106) D 107) D 108) TRUE 109) FALSE 110) FALSE 111) TRUE 112) Employee selection - The selection process (interviews, tests, and background checks) can be viewed as an opportunity to learn about an individual's level of moral development, personal values, ego strength, and locus of control. However, a carefully designed selection process is not foolproof and, even under the best circumstances, individuals with questionable standards of right and wrong may be hired. Such an issue can be overcome if other ethics controls are in place. Code of ethics and decision rules - A code of ethics is a formal statement of an organization's values and the ethical rules it expects employees to follow. It is a popular choice for reducing ambiguity about what is and is not ethical. Leadership - Doing business ethically requires a commitment from top managers. They are the ones who uphold the shared values and set the cultural tone. They are role models in terms of both words and actions. Top managers also set the tone by their reward and punishment practices. The choices of whom and what are rewarded with pay increases and promotions send a strong signal to employees. Job goals and performance appraisal - Under the stress of unrealistic goals, otherwise ethical employees may feel they have no choice but to do whatever is necessary to meet those goals. Also, goal achievement is usually a key issue in performance appraisal. If performance appraisals focus only on economic goals, ends will begin to justify means. To encourage ethical behavior, both ends and means should be evaluated. Independent social audits - These evaluate decisions and management practices in terms of the organization's code of ethics. To maintain integrity, auditors should be responsible to the company's board of directors and present their findings directly to the board. This arrangement gives the auditors clout and lessens the opportunity for retaliation from those being audited. 113) A 114) B 115) D 116) C 117) A 118) TRUE 119) FALSE 120) FALSE 121) TRUE 122) Whistle-blowers are individuals who raise ethical concerns or issues in an organization. These individuals are a key
part s hotlines. Managers also need to create a culture where bad news can be heard and acted on before it is too late. of a The Sarbanes-Oxley Act offers some legal protection to whistle-blowers. According to one of its provisions, any com manager who retaliates against an employee for reporting violations faces a stiff penalty of a 10-year jail sentence. pany 's ethic s prog ram. It is impo rtant for man agers to assur e empl oyee s who raise ethic al conc erns that they will face no pers onal or caree r risks. In orde r to facili tate this, man agers can set up toll-f ree ethic
Exam Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Organizational change can best be defined as ________. 1) _______ A) rethinking the organization's target markets B) a "cleaning house" of the top executives C) innovation that affects employees and customers D) any alteration of people, structure, or technology 2) Alison has an idea for improving the efficiency of her work area. When she approached her supervisor, she was asked to shepherd the idea through the approval, implementation, and evaluations processes. Alison has become a ________. A) job coach B) supervisor C) change agent D) group leader
2) _______
3) In organizations, people who act as catalysts and assume the responsibility for managing the change process are called ________. A) change agents B) change masters C) change champions D) change generators
3) _______
4) Outside consultants are more likely to initiate ________ organizational changes than insiders are. A) mild B) acceptable C) trivial D) drastic
4) _______
5) Organizations need change because ________. A) external and internal factors create the forces for change B) the environment is stable C) employees get bored with the status quo D) the future is unpredictable
5) _______
6) The Sarbanes-Oxley Act is an example of which of the following forces of change? A) External change B) Technological change C) Internal change D) Organizational strategy change
6) _______
7) The technology change in the manufacturing process of New Ideas, Inc.'s products to make the process more efficient is the result of a competitor lowering its price. Therefore, it was a(n) ________ force of change. A) external B) marketplace C) internal D) economic
7) _______
8) First he was all about innovation. Next it was efficiency. Now Snyder's strategy is customer responsiveness. These changes in strategy are indicative of ________ force of change. A) marketplace B) economic C) external D) internal
8) _______
9) When the employees express their concern about their bonus checks, which of the following types of forces of change is in play? A) External force of change B) Social force of change C) Labor market force of change D) Internal force of change
9) _______
10) Which one of the following is an example of changing consumer preferences? A) A recession has caused an increase in unemployment. B) The colors in home fashions change every year. C) Employers with at least 50 employees must offer health care plans.
10) ______
D) Cell phone cameras have improved with each version of the phone. 11) Which one of the following represents a change in technology? A) The participation rate of the U.S. labor force is at its lowest point in the last 40 years. B) Most business communication involves email. C) Electricity is produced by generating plants that burn coal. D) Bold, bright colors in clothing and wall paint have largely replaced neutrals.
11) ______
12) Sales are down; unemployment is up. Evergreen Park Homes can no longer support its current level of production. Evergreen is facing a change in ________. A) the economy B) technology C) government regulations D) consumer preferences
12) ______
13) Falling interest rates are an example of which external force? A) Technological change B) Change in composition of workforce C) Change in employee attitudes D) Economic change
13) ______
14) Bullseye, a large discount retailer, discovered it could not compete with the world's largest retailer and has repositioned itself as a more upscale discount department store. This move represents a change in ________. A) the economy B) consumer preferences C) technology D) organizational strategy
14) ______
15) During his first year of employment, Arnold saw mostly white male faces in his plant. Now he sees women and men of all ages and ethnicities. Communication has become challenging. Arnold has noticed a change in the ________. A) workforce composition B) employment laws C) employee attitudes D) lifestyle choices
15) ______
16) Increasing the numbers of employed women and minorities forces managers to pay attention to what change factor? A) Changes in the composition of the workforce B) Organizational strategy C) Changing technology D) New equipment
16) ______
17) Which one of the following represents a change in technology? A) Hand-held calculators replaced pencil and paper in the workplace. B) Wooden desks were replaced by steel ones with composite tops. C) Brownstone Corp. carpeted the tile floors in its office areas. D) Brenda exchanged her broken iPhone 4 for an iPhone 5.
17) ______
18) Labor strikes are an example of which of the following internal change factors? A) Organizational strategy B) New equipment C) Workforce composition D) Employee attitudes
18) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 19) Outside consultants tend to recommend more cautious changes because they may fear lawsuits if the recommendations turn out badly. 20) Government regulations are considered an internal factor for change because they force the business to change how it functions.
19) ______
20) ______
21) Cost-cutting measures tend to exacerbate the conditions that led to the need for cutting costs.
21) ______
22) Employees who prefer stability are less likely to try new technology.
22) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 23) Discuss the four external factors that prompt change in an organization, giving an example of each factor. Explain how the factor affects the organization. 24) Discuss the four internal factors that cause change in an organization, giving an example of each factor. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 25) Fuel prices keep spiraling upward so recreational vehicle manufacturers are being pressured to 25) ______ produce lighter units that can be pulled by smaller trucks. This situation is representative of ________. A) a social force B) an economic force C) a restraining force D) a driving force 26) The two metaphors commonly used to describe the two views of the change process are ________. A) calm waters and white-water rapids B) smooth water and troubled water C) burning bridge and water over the dam D) shallow water and falling water
26) ______
27) In the ________ metaphor, change is normal and expected and managing it is a continual process. A) calm waters B) smooth water C) white-water rapids D) water over the dam
27) ______
28) Business had been humming along just fine until the Great Recession hit. Benton Industries adjusted by laying off employees until the recession ended then hired them back. Then it was back to business as usual. This is an example of the ________ metaphor. A) calm waters B) falling water C) white-water rapids D) shallow water
28) ______
29) Lewin's three-step process is consistent with the ________ theory of organizational change. A) calm waters B) white-water rapids C) shallow waters D) smooth waters
29) ______
30) According to Kurt Lewin, which of the following is a stage in the change process? A) Restraining B) Unfreezing C) Driving D) Processing
30) ______
31) According to Kurt Lewin, increasing the driving forces is a means of ________. A) restraining B) changing C) refreezing D) unfreezing
31) ______
32) The unfreezing step of the change process can be thought of as ________. A) changing the organizational structure B) sustaining a change over time C) preparing for the needed change D) changing to a new state
32) ______
33) According to Lewin, which of the following is the objective of refreezing? A) Stabilizing the new situation B) Directing behavior away from the change C) Hindering the existing equilibrium D) Eliminating the need for future change
33) ______
34) "If it's not one thing, it's another. We just get used to doing things one way and suddenly that's not good enough anymore. It's a new machine here, a new manager there, changing customer demands-it never ends!" This is an example of the ________ metaphor. A) white-water rapids B) water over the dam C) calm waters D) falling water
34) ______
35) New Ideas, Inc., focuses on new ideas, uses technology that changes frequently, and has strong competition in the market. This situation describes what metaphor of change? A) A rapid water metaphor B) A falling water rapid metaphor C) A white-water rapids metaphor D) A shallow water metaphor
35) ______
36) The appropriate order for the three-step change process is ________. A) unfreezing, refreezing and changing B) there is no absolute order C) unfreezing, changing and refreezing D) changing, unfreezing and refreezing
36) ______
37) Many managers realize that today's business environment consists of ________. A) very little disruptive change B) mostly calm waters C) predictability and stability D) continuous disruptions
37) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 38) The "white-water rapids" metaphor of change is consistent with Lewin's concept of unfreezing, changing, and refreezing. 39) In the "white-water rapids" metaphor of change, change is seen as an occasional disruption in the normal flow of events.
38) ______
39) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 40) Identify some of the external and internal forces of change. 41) Describe and explain the "calm waters" view of organizational change. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 42) Organizational change is any alteration of ________. 42) ______ A) structure, management, or goals B) technology, goals, or management C) people, structure, or technology D) rules, procedures, or management 43) During the great recession, average household discretionary income declined. Families sought less expensive alternatives for luxury items. Producers adjusted by offering lighter-weight, lower-cost items. These producers changed their ________. A) strategies B) structures C) technology D) people
43) ______
44) Colin believes his organization could be more profitable if it could respond to customers more quickly so he has decided to remove some management layers and increase the remaining managers' span of control. These would be considered changes in ________. A) structural components B) structural design C) degree of centralization D) structural process
44) ______
45) Structural component changes include ________. A) changing attitudes C) changing behavior
45) ______ B) combining departmental responsibilities D) changing work processes
46) If Kelly were to consider enhancing productivity by giving greater authority to her subordinates and increasing formalization, she would be considering ________ changes. A) people B) strategy C) structural D) technological
46) ______
47) A company that decides to decentralize its sales procedures is managing ________ changes. A) strategy B) technological C) structural D) people
47) ______
48) After Body-Met acquired Uni-Dyne, the company reorganized around geographic divisions instead of function. This action represents changes in ________ A) structural design B) strategy C) structural components D) people
48) ______
49) Which type of change might include a shift from a functional to a product structure? A) A technological change B) A structural component change C) A people change D) A structural design change
49) ______
50) After several expansions and acquisitions that resulted in duplicate positions of several administrative functions, U.S. Big Corp. decided to reorganize itself around customers rather than around functions. This would amount to a change in ________. A) degree of centralization B) structural design C) structural components D) selection process
50) ______
51) Changes in work processes, methods, and equipment are a part of ________ changes. A) structural component B) structural design C) financial D) technological
51) ______
52) Technological changes usually involve the introduction of new equipment, ________. A) tools or people B) tools, or operating methods C) people, or structure D) operating methods, or structure
52) ______
53) The installation of the new equipment at Fred Fryer's Donuts, Inc., is an example of ________. A) technological change B) structural change C) people change D) management change
53) ______
54) When supermarkets and other retailers use scanners that provide instant inventory information, they are adopting ________ changes. A) people B) structural C) technological D) efficiency
54) ______
55) ________ is the term used to describe change methods that focus on people and the nature and quality of interpersonal work relationships. A) Career development B) Commercial development C) Organizational development D) Comprehensive development
55) ______
56) If Kraft Foods hired a consultant to decrease group friction and enhance cooperative work relationships, this would be an example of managing ________ changes. A) structural B) people C) technological D) financial
56) ______
57) ________ is a method of changing behavior through unstructured group interaction. A) Survey feedback B) Intergroup development C) Team building D) Sensitivity training
57) ______
58) An increase in the diversity of his department has led to conflict and animosity. To reduce this
and allow
his team 58) to become more producti ve, Lemuel has asked the Human Resource s departm ent to provide ________ for his people. A) team building C) survey feedback
___ ___
B) sensitivity training D) intergroup development
59) What organizational development technique involves changing the attitudes, stereotypes, and perceptions that work groups have about each other? A) intergroup development B) sensitivity training C) survey feedback D) team building TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 60) Organizational change can be any alteration of strategy, people, structure, or technology.
59) ______
60) ______
61) Managers exclusively play the role of change agents.
61) ______
62) Changing structure includes any change in structural variables such as reporting relationships, coordination mechanisms, employee empowerment, or job redesign.
62) ______
63) Sensitivity training refers to activities that help team members learn how each member thinks and works.
63) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 64) Explain organizational change and briefly discuss the four types of change. 65) Define Organizational Development (OD). List and explain the five most popular OD techniques. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 66) An individual is likely to resist change because of the feeling ________. 66) ______ A) of personal gain B) of uncertainty C) that the change is in the organization's best interest D) of achievement 67) When Joshua proposed cross-training his employees so absences and vacations would not pose such a problem in productivity, his employees objected. Their resistance came from their
___ __. ___
67)
______ A) fear that they would be forced out of their habits B) belief that ambiguity would increase C) belief that Joshua's changes would harm the organization D) concern over personal loss of income 68) Shelly was the most senior employee in the department and knew just about everything about everyone else's job. If all employees in the department were cross-trained, Shelly would no longer have an advantage that brought with it special privileges. Shelly's resistance to change came from her ________. A) fear that she would be forced out of her habit B) concern over personal loss C) belief that the changes would harm the organization D) belief that uncertainty would increase
68) ______
69) Back2Work succeeded because it offered personalized assistance to its clients—people who had lost jobs—beginning with having a live person answer every phone call. When management proposed an automated answering service with a directory tree ("Press 1 for a company directory", for example), Cathy was concerned the company would lose customers. Cathy's resistance stemmed from her ________. A) belief that the change was incompatible with the goals and interests of the organization. B) belief that uncertainty would increase C) fear that she would be forced out of her habit D) concern over personal loss
69) ______
70) Which one of the following techniques for reducing resistance to change assumes that much of the resistance lies in misinformation? A) Negotiation B) Education and communication C) Facilitation and support D) Participation
70) ______
71) Fred's Donuts is installing new equipment in its bakery. Many employees are fearful they will not be able to operate it. Which one of the following courses of actions is best for Fred to use to overcome this employee resistance? A) Educate employees and communicate with them B) Terminate employees who resist the change C) Threaten the employees who resist the change D) Present distorted facts to the employees
71) ______
72) In addition to face-to-face meetings, employers are encouraged to use ________ to communicate information about changes to their workforce. A) bulletin boards B) emails C) social media D) paid public announcements
72) ______
73) ________ involves bringing individuals directly affected by the proposed change into the decision-making process. A) Participation B) Facilitation and support C) Manipulation and co-optation D) Delegation
73) ______
74) Back2Work is considering replacing the receptionist who answers the phone with an automated answering system. Back2Work should ________ to reduce resistance to this change. A) tell the current receptionist she is being reassigned B) explain the benefits of this change to the current receptionist.
74) ______
C) negotiate with the current receptionist D) involve the current receptionist in the decision process 75) Which one of the following techniques for reducing resistance to change includes employee counseling, therapy, new skills training, or a short paid leave of absence. A) Manipulation and co-optation B) Facilitation and support C) Coercion D) Negotiation
75) ______
76) ________ involves exchanging something of value for an agreement to lessen the resistance to the change effort. A) Coercion B) Manipulation and co-optation C) Facilitation and support D) Negotiation
76) ______
77) ________ involves distorting facts to make the change appear more attractive. A) Participation B) Manipulation and co-optation C) Framing D) Education and communication
77) ______
78) Which of the following is a favorable condition that will facilitate a cultural change? A) The organization has a long existence. B) A stable leadership exists. C) A dramatic crisis occurs. D) The organization has a strong culture.
78) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 79) One reason people resist change in an organization is that they are afraid their skill set will be obsolete.
79) ______
80) People may resist change based on habit.
80) ______
81) Negotiation involves bringing those affected by change into the decision-making process.
81) ______
82) Manipulation involves the use of direct threats against the resisters.
82) ______
83) Coercion involves the use of covert attempts to influence others.
83) ______
84) A disadvantage of coercion is that it may be illegal and may undermine the change agent's credibility.
84) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 85) Why do people resist change? 86) List and explain the techniques for reducing resistance to change. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 87) A change capable organization ________. 87) ______ A) links the present and the future B) follows its competitor's footsteps C) seeks incremental changes D) encourages group-think 88) How can managers increase the likelihood of making change happen successfully? A) They should adapt the changes made by their competitors. B) They should give individual employees a role in the change process. C) They should discourage entrepreneurial mindsets. D) They should realize that they are just change agents, not change leaders.
88) ______
89) Which of the following is a characteristic of a change-capable organization? A) Separates the present and the future B) Makes controlling a way of life C) Shelters breakthroughs D) Encourages group-think
89) ______
90) Which one of the following statements is most related to making successful change happen? A) Managers know best; they have all the answers. B) The only constant is change. C) People will support what they help create. D) The more things change, the more they are the same.
90) ______
91) Cultural change is most likely to take place when ________. A) the culture is strong B) the organization is large C) there is a leadership change D) the organization is old
91) ______
92) Which one of the following is a strategy for managing cultural change? A) Allow subcultures to flourish. B) Support employees who remain devoted to the old values. C) Keep the same stories and rituals. D) Redesign socialization processes to align with the new values.
92) ______
93) ________ is the adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities. A) Euphoria B) Degeneration C) Disease D) Stress
93) ______
94) A ________ prevents an individual from doing what he desires. A) necessity B) demand C) lien
94) ______ D) constraint
95) ________ are factors related to an employee's job and include the design of a person's job, working conditions, and the physical work layout. A) Interpersonal demands B) Role demands C) Task demands D) Psychological demands
95) ______
96) One way to lessen stress in a job is to ________. A) increase the autonomy in the job B) increase the interdependence of the position C) increase the task significance of the position D) reduce the task identity in the job.
96) ______
97) ________ creates expectations that may be hard to reconcile or satisfy. A) Role overload B) Role demand C) Role ambiguity
97) ______ D) Role conflict
98) Cameron is expected to produce 550 parts per day, but his machine is capable of only 480. He is also expected to supervise six workers and make sure they have all the materials they need to perform their duties. Cameron is likely to experience ________. A) role conflict B) role ambiguity C) role expansion D) role overload
98) ______
99) Darlene is just one of Cameron's "needy" employees who require constant feedback and reassurance. Two other employees bicker constantly. Another one challenges everything Cameron says or does. Cameron is facing ________ A) burnout B) emotional turmoil C) interpersonal demands D) role toxicity
99) ______
100) A ________ personality is characterized by chronic feelings of a sense of time urgency, an excessive competitive drive, and difficulty accepting and enjoying leisure time. A) Type A B) Type X C) Type B D) Type Y
100) _____
101) Stress symptoms are grouped under the categories of ________. A) physical, psychological, and cultural B) physical, political, and social C) physical, economic, and legal D) physical, psychological, and behavioral
101) _____
102) Which of the following is a physical symptom of stress? A) Changes in mood B) Changes in attitude C) Changes in productivity D) Changes in metabolism
102) _____
103) Which of the following is an example of a psychological symptom of stress? A) Increased heart and breathing rate B) Changes in productivity C) Procrastination D) Changes in metabolism
103) _____
104) Changes in eating habits are a ________ symptom of stress. A) financial B) psychological C) behavioral
104) _____ D) physical
105) Which one of the following is true regarding reduction of employee stress? A) In order to reduce stress, managers should make sure that the employee's abilities match the job requirements. B) Job redesigns that increase opportunities for employees to participate in decisions and to gain social support increase stress. C) Improved organizational communications maximizes ambiguity-induced stress. D) A realistic job preview during the selection process maximizes stress by reducing ambiguity over job expectations.
105) _____
106) Managers offer ________ to employees who want to talk to someone about their problems. A) employee counseling B) time management programs C) wellness programs D) performance planning programs
106) _____
107) A ________ helps employees whose personal lives suffer from a lack of planning to sort out their priorities. A) time management program B) health and wellness program C) wellness program D) life insurance program
107) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 108) Cultural change is easier when the organizational culture is strong.
108) _____
109) Cultural change is likely to take place when a dramatic crisis occurs.
109) _____
110) A leadership change can facilitate cultural change.
110) _____
111) Stress is the adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities.
111) _____
112) Stress can be caused by personal factors and by job-related factors.
112) _____
113) Employers believe the main reason people leave their jobs is stress.
113) _____
114) Taking away the employee's opportunity to participate in decisions that affect him/her is one
way to
____ _
relieve 114) work-rel ated stress. 115) Type B personalities seldom experience the symptoms of stress.
115) _____
116) Stress symptoms can be categorized as physical, psychological, and psychomotor.
116) _____
117) A realistic job preview during the selection process minimizes stress by reducing task overload.
117) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 118) What are the conditions that facilitate cultural change? 119) Write a short essay on stress, particularly as it relates to the workplace. 120) What are stressors? Discuss the five major categories of organizational stressors. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 121) ________ refers to the ability to combine ideas in a unique way or to make unusual associations 121) _____ between ideas. A) Innovation B) Change C) Alteration D) Creativity 122) ________ is the process of taking a creative idea and turning it into a useful product or work method. A) Innovation B) Creativity C) Ingenuity D) Inspiration
122) _____
123) Which of the following is an example of a cultural variable that fosters innovation? A) Low specialization B) High job security C) Abundant resources D) Low external controls
123) _____
124) When a member of her team offers an "off-the-wall" solution to a team problem, Martina has to contend with which cultural variable? A) Tolerance of conflict B) Tolerance of risk C) Focus on ends D) Tolerance of the impractical
124) _____
125) Which of the following is a structural variable that supports innovation? A) Focus on ends B) High job security C) Work and non-work support D) Tolerance of conflict
125) _____
126) An innovative culture is likely to have ________. A) closed-system focus C) low tolerance of risks
126) _____ B) high external controls D) tolerance of conflict
127) Edwin would like to increase the level of creativity and innovation in his department. One step he could take would be to ________. A) decrease external control B) reduce resources C) resolve conflict D) decrease diversity of opinions
127) _____
128) Which of the following structural variables is supportive of organizational innovation? A) Minimal time pressure B) Abundant resources C) Less creative people D) High interunit communication
128) _____
129) Earnest's team works well when given "big picture" goals and allowed to develop ideas without detailed explanations or guidance. This would indicate Earnest's team is ________. A) tolerant of conflict B) tolerant of risk C) an open-system focus team D) accepting of ambiguity
129) _____
130) ________ actively and enthusiastically support new ideas, build support, overcome resistance, and ensure that innovations are implemented. A) Idea B) Idea C) Idea generators D) Idea screeners developers champions
130) _____
131) Most idea champions ________. A) avoid risks C) are lethargic
131) _____ B) have extremely high self-confidence D) are relenting
132) Design thinking can provide a process for ________. A) brainstorming B) coming up with things that don't exist C) connecting idea champions in the design department with marketing experts D) experimenting with customers TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 133) Creativity refers to the ability to combine ideas in a unique way or to make unusual associations between ideas. 134) Design thinking can do for innovation what TQM did for quality.
132) _____
133) _____
134) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 135) List a few cultural characteristics that an innovative organization possesses. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 136) Disruptive innovation describes ________. 136) _____ A) the introduction of significant improvements in existing products or services B) innovations in products, services, or processes that radically change an industry's rules of the game C) disruptions in the economy that require new laws or regulations D) breakthroughs in research that lead to new medical procedures 137) Which one of the following would be considered a disruptive innovation? A) All of these are examples of disruptive innovation. B) Humans develop the capability of communicating telepathically. C) A new fuel source is developed for automobiles that emits no carbon. D) A company learns how to harness the tides to make electricity.
137) _____
138) Which one of the following would be considered a sustaining innovation? A) The steam engine makes travel by rail possible. B) Batteries for electric cars have a range of 500 miles on one charge. C) Robots are trained as combat soldiers. D) Chips embedded into the brain provide access to entire libraries.
138) _____
139) The term skunk works refers to________. A) a production facility that no longer meets the needs of the organization
139) _____
B) a project gone bad C) an off-balance-sheet, secret research facility engaged in questionable activities D) an entrepreneurial operation funded by a large organization TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 140) Disruptive innovations are more likely to come from large companies with extensive resources.
140) _____
141) Large organizations have distinct cultures that limit their ability to move into new markets.
141) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 142) Explain why large organizations are less likely to create disruptive innovations.
1) D 2) C 3) A 4) D 5) A 6) A 7) A 8) D 9) D 10) B 11) B 12) A 13) D 14) D 15) A 16) A 17) A 18) D 19) FALSE 20) FALSE 21) TRUE 22) TRUE 23) a. When consumer preferences change, producers must make changes to their products and/or services to remain competitive. Different generations expect different features and benefits from products. Producers must adapt or lose market share. Example: Consumers wanted improvements to the cameras in cell phones. Phones were redesigned to include better cameras. b. New and amended laws and regulations may change how products are made or services provided. EPA regulations require automakers to increase the fuel economy of vehicles; other rules require that carbon and greenhouse gases generated in the production process be reduced. This might require a complete change in production methods. Coal-burning electricity generating plants had to install scrubbers to clean carbon from the stacks before the smoke could be released into the air. c. As technology changes, employees must be retrained to interact with the equipment; some positions may be eliminated. Production quotas may increase, requiring workers to learn new skills and adjust their work pace. For example, a nail gun allows a roofer to lay more shingles per day than a hammer. The nail gun thus requires the roofer to work faster but not necessarily harder. d. A booming economy likely creates more sales, requiring the onboarding of additional employees who may not have the same level of skill as existing workers. While this can be overall a good situation, it does cause change in the work habits of existing employees. Conversely, a recession may require the employer to reduce its workforce and employ additional cost-cutting measures. Idling of production machinery could cause many position changes for employees. 24) a. When an organization changes its strategy, it will have to change methods and/or focus. For instance, Target decided it no longer could compete head-to-head with WalMart on pricing so it changed its strategy to compete on the quality of the products it offered and charged a higher price for those products. b. As more women entered the workforce, the nature of how people are managed changed from autocratic to team-based. Currently the ethnic and cultural mix has changed, again prompting changes in employee interaction and diversity initiatives. c. Innovation drives change when it creates new equipment. When computers first entered the workplace, many employees resisted their introduction because it meant learning a new skill set and possible loss of a job or job status. d. Many people fear change because the outcome is unknown. Fear creates resistance. Employees who were once cooperative may become disengaged or even defiant. Attitudes toward the company and management may sour;
job satisfaction could plummet. 25) D 26) A 27) C 28) A 29) A 30) B 31) D 32) C 33) A 34) A 35) C 36) C 37) D 38) FALSE 39) FALSE 40) Some of the external forces of change are: a. Changing consumer needs and wants b. New governmental laws c. Changing technology d. Economic changes Some of the internal forces of change are: a. New organizational strategy b. Change in composition of workforce c. New equipment d. Changing employee attitudes 41) The calm waters view of organizational change envisions the organization as a large ship crossing a calm sea. The ship's captain and crew know exactly where they are going because they have made the trip many times before. Change comes in the form of an occasional storm, a brief distraction in an otherwise calm and predictable trip. In the calm waters metaphor, change is seen as an occasional disruption in the normal flow of events. It is best illustrated by Kurt Lewin's three-step description of the change process. According to Lewin, successful change can be planned and requires unfreezing the status quo, changing to a new state, and refreezing to make the change permanent. The status quo can be considered an equilibrium state. To move from this equilibrium, unfreezing is necessary. Unfreezing can be thought of as preparing for the needed change. It can be achieved by increasing the driving forces, which are forces pushing for change; by decreasing the restraining forces, which are forces that resist change and push behavior toward the status quo; or by combining the two approaches. Once unfreezing is done, the change itself can be implemented. However, merely introducing change does not ensure that it will take hold. The new situation needs to be refrozen so that it can be sustained over time. Unless this last step is done, there is a strong chance that employees will revert back to the old ways of doing things. The objective of refreezing, then, is to stabilize the new situation by reinforcing the new behaviors. Lewin's three-step process treats change as a move away from the organization's current equilibrium state. It is a calm waters scenario where an occasional disruption means changing to deal with the disruption. Once the disruption has been dealt with, however, things can continue on under the new changed situation. 42) C 43) A 44) A 45) B 46) C 47) C 48) A 49) D
50) B 51) D 52) B 53) A 54) C 55) C 56) B 57) D 58) B 59) A 60) TRUE 61) FALSE 62) TRUE 63) FALSE 64) Most managers, at one point or another, will have to make changes in some aspects of their workplace. These changes are classified as organizational change, which is any alteration of strategy, people, structure, or technology. Organizational changes often need someone to act as a catalyst and assume the responsibility for managing the change process-that is, a change agent. Change agents can be a manager within the organization, but could also be a non-manager such as a specialist from the HR department or even an outside consultant. For major changes, an organization often hires outside consultants to provide advice and assistance. Managers face four main types of change: strategy, structure, technology, and people. Changing strategy signifies a change in how managers ensure the success of the company. Changing structure includes any change in structural variables such as reporting relationships, coordination mechanisms, employee empowerment, or job redesign. Changes in the external environment or in organizational strategies often lead to changes in the organizational structure. Because an organization's structure is defined by how work gets done and who does it, managers can alter one or both of these structural components. For instance, departmental responsibilities could be combined, organizational levels eliminated, or the number of persons a manager supervises could be increased. More rules and procedures could be implemented to increase standardization. Or employees could be empowered to make decisions so decision making could be faster. Another option would be to make major changes in the actual structural design. For instance, product divisions can be dropped, merged, or expanded. Structural design changes also might include, for instance, a shift from a functional to a product structure or the creation of a project structure design. Today, technological changes usually involve the introduction of new equipment, tools, or methods; automation; or computerization. Competitive factors or new innovations within an industry often require managers to introduce new equipment, tools, or operating methods. Automation is a technological change that replaces certain tasks done by people with tasks done by machines. Changing people involves changing attitudes, expectations, perceptions, and behaviors. Organizational development is the term used to describe change methods that focus on people and the nature and quality of interpersonal work relationships. 65) Organizational Development (OD) is the term used to describe change methods that focus on people and the nature and quality of interpersonal work relationships. The five most popular OD techniques are: a. Sensitivity training-It is a method of changing behavior through unstructured group interaction. b. Team building-These refer to activities that help team members learn how each member thinks and works. c. Intergroup development-This involves changing the attitudes, stereotypes, and perceptions that work groups have about each other. d. Process consultation-Here, an outside consultant helps the manager understand how interpersonal processes are affecting the way work is being done. e. Survey feedback-It is a technique for assessing attitudes and perceptions, identifying discrepancies in these, and resolving the differences by using survey information in feedback groups. 66) B 67) A
68) B 69) A 70) B 71) A 72) C 73) A 74) D 75) B 76) D 77) B 78) C 79) TRUE 80) TRUE 81) FALSE 82) FALSE 83) FALSE 84) TRUE 85) An individual is likely to resist change for the following reasons: uncertainty, habit, concern over personal loss, and the belief that the change is not in the organization's best interest. Change replaces the known with uncertainty. For example, when quality control methods based on sophisticated statistical models are introduced into manufacturing plants, many quality control inspectors have to learn the new methods. Some inspectors may fear that they will be unable to do so and may, therefore, develop a negative attitude toward the change or behave poorly if required to use them. Another cause of resistance is that people do things out of habit. Every day, when going to work, people probably go the same way, whether walking, driving, or using mass transit. Usually, they find a single approach and use it regularly. People do not want to have to consider the full range of options for the hundreds of decisions they make every day. To cope with this complexity, they rely on habits or programmed responses. But when confronted with change, their tendency to respond in their accustomed ways becomes a source of resistance. The third cause of resistance is the fear of losing something already possessed. Change threatens the investment people have already made in the status quo. The more that people have invested in the current system, the more they resist change. They fear the loss of status, money, authority, friendships, personal convenience, or other economic benefits that they value. This is why older workers tend to resist change more than younger workers. Older employees have generally invested more in the current system and thus have more to lose by changing. A final cause of resistance is a person's belief that the change is incompatible with the goals and interests of the organization. For instance, an employee who believes that a proposed new job procedure will reduce product quality or productivity can be expected to resist the change. If the employee expresses his or her resistance positively, this actually can be beneficial to the organization. 86) The various techniques for reducing resistance to change are: a. Education and communication-This helps reduce resistance to change by helping employees see the logic of the change effort. This technique assumes that much of the resistance lies in misinformation or poor communication. b. Participation-This involves bringing those individuals directly affected by the proposed change into the decision-making process. Their participation allows these individuals to express their feelings, increase the quality of the process, and increase employee commitment to the final decision. c. Facilitation and support-This involves helping employees deal with the fear and anxiety associated with the change effort. This help includes employee counseling, therapy, new skills training, or a short paid leave of absence. d. Negotiation-This involves exchanging something of value for an agreement to lessen the resistance to the change effort. This resistance technique is quite useful when the resistance comes from a powerful source. e. Manipulation and co-optation-This refers to covert attempts to influence others about the change. It involves distorting facts to make the change appear more attractive. f. Coercion-This involves the use of direct threats or force against the resisters. 87) A 88) B
89) C 90) C 91) C 92) D 93) D 94) D 95) C 96) A 97) D 98) D 99) C 100) A 101) D 102) D 103) C 104) C 105) A 106) A 107) A 108) FALSE 109) TRUE 110) TRUE 111) TRUE 112) TRUE 113) FALSE 114) FALSE 115) FALSE 116) FALSE 117) FALSE 118) The conditions that facilitate cultural change are: a. Occurrence of a dramatic crisis-An unexpected financial setback, the loss of a major customer, or a dramatic technological innovation by a competitor can weaken the status quo and make people start thinking about the relevance of the current culture. b. Change in leadership-New top leadership can provide an alternative set of key values and may be perceived as more capable of responding to the crisis than the old leaders were. c. Young and small organization-The younger the organization, the less entrenched is its culture. It is easier for managers to communicate new values in a small organization than in a large one. d. Weak culture-Weak cultures are more receptive to change than are strong ones. 119) Stress is the adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities. Stress is not always bad. Although it is often discussed in a negative context, stress does have a positive value, particularly when it offers a potential gain. However, stress is more often associated with constraints and demands. A constraint prevents an individual from doing what he desires. Demands refer to the loss of something desired. When an employee has his annual performance review at work, he feels stress because he confronts opportunity, constraints, and demands. A good performance review leads to a promotion, greater responsibilities, and a higher salary. But a poor review keeps him from getting the promotion. An extremely poor review might lead to his being fired. Just because the conditions are right for stress to surface, however, does not always mean it will. Two conditions are necessary for potential stress to become actual stress. First, there must be uncertainty over the outcome, and second, the outcome must be important. 120) Stress is caused by personal factors and by job-related factors called stressors. Change of any kind-personal or job-related-has the potential to cause stress because it involves demands, constraints, or opportunities. The five major categories of organizational stressors are: task demands, role demands, interpersonal demands,
orga related to an employee's job. They include the design of a person's job (autonomy, task variety, degree of nizat automation), working conditions, and the physical work layout. Work quotas can put pressure on employees when ion their outcomes are perceived as excessive. The more the interdependence between an employee's tasks and the struc tasks of others, the greater is the potential for stress. Autonomy, on the other hand, tends to lessen stress. Jobs in ture, which temperatures, noise, or other working conditions are dangerous or undesirable can increase anxiety. So, too, and can working in an overcrowded room or in a visible location where interruptions are constant. orga Role demands relate to pressures placed on an employee as a function of the particular role he plays in the nizat organization. Role conflicts create expectations that may be hard to reconcile or satisfy. Role overload is ional experienced when the employee is expected to do more than time permits. Role ambiguity is created when role leade expectations are not clearly understood and the employee is not sure what he has to do. rship Interpersonal demands are pressures created by other employees. Lack of social support from colleagues and poor . interpersonal relationships can cause considerable stress, especially among employees with a high social need. Task Organization structure can increase stress. Excessive rules and an employee's lack of opportunity to participate in dema decisions that affect him or her are examples of structural variables that might be potential sources of stress. nds Organizational leadership represents the supervisory style of the organization's managers. Some managers create a are culture characterized by tension, fear, and anxiety. They establish unrealistic pressures to perform in the short run, facto impose excessively tight controls, and routinely fire employees who do not measure up. This style of leadership rs filters down through the organization and affects all employees. 121) D 122) A 123) D 124) D 125) C 126) D 127) A 128) D 129) D 130) B 131) B 132) B 133) TRUE 134) TRUE 135) An innovative organization has the following cultural characteristics: a. Accepts ambiguity - Too much emphasis on objectivity and specificity constrains creativity. b. Tolerates the impractical - Individuals who offer impractical, even foolish, answers to what-if questions are not stifled. What at first seems impractical might lead to innovative solutions. c. Keeps external controls minimal - Rules, regulations, policies, and similar organizational controls are kept to a minimum. d. Tolerates risk - Employees are encouraged to experiment without fear of consequences should they fail. Mistakes are treated as learning opportunities. Employees do not fear to put forth new ideas. e. Tolerates conflict - Diversity of opinions is encouraged. Harmony and agreement between individuals or units are not assumed to be evidence of high performance. f. Focuses on ends rather than means - Goals are made clear, and individuals are encouraged to consider alternative routes toward meeting the goals. Focusing on ends suggests that several right answers might be possible for any given problem. g. Uses an open-system focus - Managers closely monitor the environment and respond to changes as they occur. h. Provides positive feedback - Managers provide positive feedback, encouragement, and support so employees feel that their creative ideas receive attention. i. Exhibits empowering leadership - A leader of an innovative organization lets his subordinates know that the work they do is significant. (S)he provides organizational members the opportunity to participate in decision making. (S)he shows them that (s)he is confident that they can achieve high performance levels and outcomes. This has a positive influence on creativity.
136) B 137) A 138) B 139) D 140) FALSE 141) TRUE 142) Large organizations create rules and regulations to standardize operations. They create multiple departments with defined areas of responsibility. And they create socialization processes—like new-employee orientations and corporate handbooks--that convey to employees "the way we do things around here." The result is that these successful organizations establish entrenched cultures and values that, on one hand, guide employees; but, on the other hand, also act as constraints on change. New ideas for products or services that differ significantly from the status quo are a threat to the established power structure within large companies. Successful organizations focus on what they do best. They repeat what has succeeded in the past and they put their resources into the ventures that have the highest probability of generating maximum profits. Small markets, which typically describe those applicable to early disruptive innovations, don't fit with the growth needs of large organizations. Importantly, large organizations have distinct cultures and values that define their capabilities and limit their ability to move into new products or markets. Disruptive innovations, especially at the beginning, typically apply to emerging or small markets and project lower profits than a firm's mainline products. And their novelty has little or no appeal to the organization's most profitable customers.
Exam Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) ________ involves defining the organization's goals, establishing strategies for achieving those 1) _______ goals, and developing plans to integrate and coordinate work activities. A) Logistics B) Planning C) Execution D) Operations 2) The effect of planning on managers is that it forces them to ________. A) anticipate and respond to change B) eliminate uncertainty C) work at cross purposes D) generate higher profits
2) _______
3) Which one of the following is among the reasons why managers should plan? A) Planning eliminates the need to set goals. B) When work activities are coordinated around plans, inefficiencies become obvious. C) Planning eliminates the need to measure work effort. D) Uncertainty can be eliminated and the organization can be insulated from change with planning.
3) _______
4) Which one of the following is true of the impact of formal planning on organizational performance? A) Companies can start seeing the impact of formal planning on performance about a year after starting the planning process. B) Formal planning is associated with positive financial results. C) Organizations that formally plan invariably outperform those that don't plan. D) The amount of planning done is more important to high performance than the quality of planning and implementation.
4) _______
5) When formal planning fails to lead to higher performance, which one of the following is most likely to be the reason for the failure? A) The company emphasized the control function over other functions. B) External forces constrain managers' options. C) Managers were allowed too much autonomy. D) A participative style of planning was used.
5) _______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 6) Planning is concerned with how objectives are to be accomplished, not what is to be accomplished.
6) _______
7) Planning provides direction to managers and non-managers alike.
7) _______
8) The presence of planning inhibits the ability of departments and individuals to work together or organizations to move.
8) _______
9) Planning helps managers eliminate uncertainty and insulates organizations from change.
9) _______
10) Several research studies have conclusively proven that planning organizations always outperform non-planning organizations.
10) ______
11) Studies indicate that doing a good job planning and implementing those plans play a bigger part in high performance than does how much planning is done.
11) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 12) In a short essay, define planning and discuss the characteristics of formal planning as it is used in various organizations. 13) White Forest Financials is a small investment firm, operating in an extremely volatile environment. One of the company's two owners, David White, is of the opinion that it would be futile for the company to engage in formal planning as the business environment is constantly shifting. However, the co-owner, Marsha Forest, believes that planning is essential for the company's success. Whom would you support? Why? 14) Discuss the impact of planning on organizational performance. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 15) Which aspect of planning refers to documents that outline how results are to be achieved? 15) ______ A) lans B) Objectives C) Goals D) Performance guidelines 16) Goals are different from plans because ________. A) goals are important only for small companies, and plans are important only for large companies B) goals describe financial objectives, and plans describe objectives related to social responsibility C) goals are desired outcomes, and plans describe how those outcomes will be accomplished D) goals identify specific steps that the organization needs to achieve, and plans identify the overall mission of the organization
16) ______
17) Which one of the following statements is true regarding an organization's plans? A) Almost all plans are strategic plans. B) Long-term success is ensured if managers emphasize operational plans. C) Strategic plans may result in unethical behaviors by employees. D) Plans can differ based on time frame.
17) ______
18) Most companies' plans can be classified as either ________ or ________. A) strategic; financial B) operational; tactical C) strategic; operational D) social; economic
18) ______
19) Organizational plans can be classified on the basis of their ________. A) usefulness B) suitability C) frequency of use D) attainability
19) ______
20) Strategic plans are usually ________. A) long term, directional, and single use C) long term, specific, and standing
20) ______ B) short term, directional, and standing D) short term, specific, and standing
21) ________ plans apply to the entire organization and establish the organization's overall goals. A) Departmental B) Strategic C) Long-term D) Operational
21) ______
22) Operational plans are usually ________. A) long term, specific, and standing C) short term, directional, and standing
22) ______ B) short term, specific, and standing D) long term, directional, and single use
23) Plans that encompass only the production or the sales goals of a company are termed ________
pla ns.
23)
______ A) financial
B) informal
C) strategic
D) operational
24) Mr. Slabaugh wants to formulate a plan that lays out general guidelines for his employees and leaves room for interpretation. Which one of the following types of plans would best suit his requirement? A) Specific B) Directional C) Informal D) Standing
24) ______
25) Williamson is the owner of a small company that sells corporate gifts through an online store. Business has slowed down in recent months and he realizes that the organization must move in a different direction if it is to survive. He has reset some of the company's overall goals and wants to develop a plan to achieve those goals. He is anticipating the business environment to be volatile for the next few years. Considering the above information, it can be determined that his plan must be ________, ________, and ________. A) informal; unwritten; flexible B) strategic; general; rigid C) operational; directional; rigid D) strategic; directional; flexible
25) ______
26) Long-term plans are defined as those with a time frame beyond ________. A) three years B) one year C) five years
26) ______
27) Short-term plans are those covering ________ or less. A) three years B) one year C) five years 28) ________ plans are clearly defined and leave no room for interpretation. A) Long-term B) Directional C) Stated
D) seven years 27) ______ D) six months 28) ______ D) Specific
29) Todd Miller, CEO of Miller's Grocery, has determined that all stores should be well maintained both inside and out. This is an example of a ________. A) financial goal B) specific plan C) directional D) social goal plan
29) ______
30) What plans are preferable when uncertainty is high in the business environment? A) Operational plans B) Long-term plans C) Directional plans D) Standing plans
30) ______
31) Which of the following is an example of a single-use plan? A) Affirmative action hiring policies of a company. B) The procedure to be followed for firing low-performing employees. C) A plan developed to install a new computer network. D) A plan developed to ensure worker safety at the company's facilities.
31) ______
32) A standing plan is ________. A) a plan that stands in place of a preferred plan in case of the failure of the latter B) a one-time plan specifically designed to meet the needs of a unique situation C) an ongoing plan that provides guidance for activities performed repeatedly D) a flexible plan that sets out general guidelines for company strategy
32) ______
33) Which one of the following is an example of a standing plan? A) A plan to cope with radical changes in the political environment. B) A fire escape policy establishing practices to be followed in an emergency. C) A retail chain's plan to counter the entry of a new competitor. D) A plan developed to address a sudden, unanticipated surge in demand.
33) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 34) The number of years used to define short-term and long-term plans has increased considerably because of the greater environmental certainty businesses have today.
34) ______
35) Long-term plans are those with a time frame beyond five years.
35) ______
36) Short-term plans are those covering one year or less.
36) ______
37) When uncertainty is high and managers must be flexible in order to respond to unexpected changes, directional plans are preferable.
37) ______
38) Directional plans are clearly defined and leave no room for interpretation.
38) ______
39) The standard procedure to be followed by the human resources department of a company when initiating disciplinary action against an employee is an example of a standing plan.
39) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 40) In a short essay, describe the different classifications of plans. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 41) When uncertainty is high, plans should be ________ and ________. 41) ______ A) directional; standing B) general; informal C) short-term; directional D) specific; flexible 42) The commitment concept says that plans should ________. A) be done for as short a time period as possible B) not commit to specifically meeting the goals made when the plans were developed C) be done for as long a time period as possible D) extend far enough to meet those commitments made when the plans were developed
42) ______
43) Top executives are mainly involved in ________ planning. A) departmental B) operational C) strategic
43) ______ D) functional
44) ________ planning dominates managers' planning efforts at lower levels of the organization. A) Operational B) Organization-wide C) Strategic D) Directional
44) ______
45) The commitment concept states that the more the current plans affect future commitments, the ________. A) shorter the time horizon to implement the plans. B) less control management has over timing. C) longer the time frame for which management should plan. D) faster management needs to finalize and adopt the plans.
45) ______
46) The rapid pace of technological change suggests that manager ________. A) need to be very flexible B) can do little now given the future uncertainty C) should not commit large sums of money to long-term projects D) should not worry about long range plans
46) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
47) The commitment concept says that plans should extend far enough to meet those commitments made when the plans were developed.
47) ______
48) In an uncertain environment, managers should develop plans that are specific, but flexible.
48) ______
49) Environmental scanning involves monitoring the firm's pollution emissions.
49) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 50) In a short essay, discuss the three planning contingency factors that influence the choice of plans and illustrate how these factors influence planning. 51) In a short essay, describe how managers can effectively plan when the external environment is continually changing. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 52) In ________, goals set by top managers flow down through the organization and become 52) ______ subgoals for each organizational area. A) management by objectives B) traditional goal setting C) traditional planning D) management by observation 53) Which one of the following is an assumption associated with traditional goal setting? A) Top managers know what is best because they see the "big picture." B) Employees will be more motivated to try to attain goals that they helped set. C) Clarity and specificity are preserved as the goals filter down through organizational levels. D) Managers and employees together develop goals.
53) ______
54) Which one of the following is a problem associated with traditional goal setting? A) It can result in the formation of a means-ends chain. B) Top level managers tend to define the organization's goals in very narrow terms. C) Transition of strategic goals into departmental, team, and individual goals is difficult. D) Goals set are invariably easily accomplished.
54) ______
55) A problem associated with traditional goal setting is that ________. A) clarity is lost as the goals make their way down from the top of the organization to lower levels B) the high degree of reliance on employees for developing goals is not suited to many situations C) the narrowly defined goals inhibit a manager's ability to interpret them D) it promotes the growth of a flatter organizational structure and threatens organizational efficiency
55) ______
56) Which one of the following statements is true of traditional goal setting? A) Evaluation of performance is carried out concurrently with the flow of goals through the organization. B) Managers at each level define goals and apply their own interpretations and biases as they make them more specific. C) Goals defined narrowly by top managers need to be made more directional as they flow down through the organization. D) Traditional goal setting assumes that employees know best and employs a bottom-up approach of setting organizational goals.
56) ______
57) ________ is a process of setting mutually-agreed upon goals and using those goals to evaluate
em ployee
performa 57) nce. A) Management by observation C) Management by exception
___ ___ B) Management by objectives D) Management by walking around
58) Which one of the following is the first step in MBO? A) The organization's overall objectives and strategies are formulated. B) Unit managers collaboratively set specific objectives for their units with their managers. C) Major objectives are allocated among divisional and departmental units. D) Action plans are specified and agreed upon by managers and employees.
58) ______
59) Which one of the following is the last step in MBO? A) Action plans are implemented. B) The organization's overall objectives and strategies are formulated. C) Successful achievement of objectives is reinforced by performance-based rewards. D) Progress toward objectives is periodically reviewed, and feedback is provided.
59) ______
60) Bonnie is discussing with her subordinate, Julie, the types of projects Julie would like to work on in the coming year. They are setting goals and determining what success would look like. Bonnie and Julie are engaged in ________. A) management by observation B) performance planning C) management by objectives D) strategic planning
60) ______
61) Bill has been working his plan for about three months. He is now discussing his progress with Jim, his supervisor. If Bill and Jim are using the MBO planning process, this discussion is called ________. A) advise and adjust B) performance feedback C) redirection of goals D) the milestone checkpoint
61) ______
62) Which one of the following reflects the way goals are used in an MBO program? A) Goals are used to broadly set the direction subject to encourage interpretation by individual managers. B) Apart from being used to ensure that employees are doing what they are supposed to be doing, goals are used as a motivating tool for employees. C) Goals are used to compare organizational performance year over year. D) Goals are used to prepare financial budgets for each unit.
62) ______
63) Which one of the following is true of the traditional approach to planning? A) Formal planning departments are rarely used in this approach. B) Plans are developed by organizational members at the various levels. C) This approach makes managerial planning thorough, systematic, and coordinated. D) Plans created through this method are seldom written down.
63) ______
64) When is the traditional top-down approach to planning most likely to be effective? A) When the plans focus on developing a large number of plans and carefully documenting them. B) When lower level employees develop plans. C) When plans are developed that can actually be used by organizational members. D) When the management avoids the use of a formal planning department.
64) ______
65) When lower-level managers and employees are involved in the planning process, ________. A) the documents they create are rarely reviewed
65) ______
B) their job satisfaction increases but productivity suffers C) the plans take on a life of their own D) they see the plans as more than just something written down on paper 66) If top management set a goal that each store in the company should have sales equal to or greater than $100 per square foot per day, this would be an example of ________. A) a financial goal B) a directional plan C) a strategic plan D) a strategic goal
66) ______
67) Nike, Inc. is a sportswear and equipment manufacturer that serves a multitude of sports disciplines. Which one of the following statements from Nike would be the best example of a strategic goal? A) A seven percent increase in average annual income. B) A ten percent increase in average annual sales. C) Achieving a return on investment of 17 percent. D) Accelerating growth through focused execution.
67) ______
68) Robert Downs, owner of a new community newspaper in his home town of Corning, New York, has set the following goal for his company: "To be a champion for free speech and for the development of the community." This goal constitutes the ________ goal of the company. A) informal B) financial C) operational D) strategic
68) ______
69) An organization's ________ goals are official statements of what an organization says, and what it wants its stakeholders to believe its goals are. A) real B) implicit C) stated D) authentic
69) ______
70) When making editorial decisions for his newspaper, the owner/editor mostly picks issues that are in line with his political beliefs and those that his advertisers approve of despite his publicly stated goal "to be a champion for free speech and for the development of the community." This indicates that ________. A) the company's strategic goals do not leave any room for interpretation B) the company's goals are directional in nature C) the company's financial goals derive from its strategic goals D) the company's stated goals are not its real goals
70) ______
71) Which one of the following is the best indicator of an organization's real goals? A) Organizational members' actions B) Annual reports C) Stock valuation D) Mission statement
71) ______
72) An organization's mission states that it "is committed to reducing its environmental footprint"; but its facilities do not comply with statutory environmental regulations. This is an instance of how ________. A) long-term goals differ from short-term goals B) a company's real goals are derived from its mission statement C) an organizations stated goals need not be its real goals D) strategic goals help shape financial goals
72) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 73) In traditional goal setting, goals set by top managers flow down through the organization and become subgoals for each organizational area.
73) ______
74) In the management by objectives (MBO) process of goal setting, goals are ambiguous, giving
ma nagers
and 74) employe es more flexibilit y to respond to changing conditio ns.
___ ___
75) When organizational members are more actively involved in planning, the probability that the plan will be used increases.
75) ______
76) As managers plan, they develop both goals and plans.
76) ______
77) Most businesses have only the single goal of making profits.
77) ______
78) Strategic goals focus exclusively on the financial performance of the organization.
78) ______
79) Stated goals are those that an organization actually pursues.
79) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 80) In a short essay, define management by objectives (MBO) and list four elements of this type of goal setting. 81) Distinguish between the stated and the real goals of an organization. Illustrate the difference with an example. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 82) Environmental scanning refers to an organization's ________. 82) ______ A) ability to focus solely on potential political change. B) social consciousness with regard to sustainability C) screening vast amounts of information to detect trends D) adoption of tools to measure its carbon footprint 83) Competitive intelligence refers to ________. A) gathering information about your competitors by any possible means B) gathering information about competitors to help you anticipate their actions C) reacting to competitor strategies as they unfold in the market D) the collective intelligence of a firm's primary competitors
83) ______
84) Which of these sources can managers ethically use to gather information about their competitors? A) Press releases, private detectives, industry studies. B) Searching through a firm's trash, annual reports. C) Fired employees, posing as a potential customer. D) Press releases, annual reports, Internet searches.
84) ______
85) One example of competitive intelligence occurs in professional sports where ________ A) most teams combine scouting reports and other analytics B) team managers hire experts to help read lips to determine the play C) coaches hire people to watch the practices of opponents D) reporters ask questions to determine next week's game strategy
85) ______
86) Technology makes it ________. A) easier to conduct environmental scanning B) easier to engage in unethical data collection C) more challenging to conduct environmental scanning due to the amount of information D) harder to keep up with any changes a competitor makes
86) ______
87) Many businesses ________ help firms engage in environmental scanning. A) illegally monitor public information to B) unethically C) will monitor competitors to D) collect and sell data that can
87) ______
88) How can managers effectively plan when the external environment is continually changing? A) They should discontinue formal planning. B) They should continue to follow the set organizational plans as persistence will eventually pay. C) They should be ready to change directions if environmental conditions warrant. D) They should set general, but rigid plans.
88) ______
89) A manager's analysis of the external environment can be improved by ________, which involves screening information to detect emerging trends. A) environmental activism B) social screening C) environmental scanning D) critical path analysis
89) ______
90) ________ refers to gathering information about competitors that allows managers to anticipate competitors' actions rather than merely react to them. A) Value analysis B) Data aggregation C) Competitor intelligence D) Due diligence
90) ______
91) Which one of the following statements is true of competitive intelligence as a means of environmental scanning? A) Buying competitors' products and asking their own employees to evaluate them to learn about new technical innovations is an example of the unethical practices followed in competitive intelligence. B) Competitive intelligence is ethical if competitor-related information is collected from sources accessible and available to the public. C) The Competitive Espionage Act makes it a crime in the United States to engage in competitive intelligence. D) It is unethical to use competitive intelligence to make strategic business decisions.
91) ______
92) ________ involves the theft of proprietary materials or trade secrets by any means. A) Business intelligence B) Data aggregation C) Corporate espionage D) Data mining
92) ______
93) Which one of the following would be a legal and ethical source of business intelligence? A) Posts on social media B) Competitors' financial data C) Information provided by a former employee D) Memos found in a business's trash
93) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 94) Firms can monitor, and potentially influence, proposed legislative and political changes through the use of lobbyists.
94) ______
95) Patent reports can provide a firm with information on social changes.
95) ______
96) General economic news has almost no value to managers since the firm cannot influence economic activity.
96) ______
97) Debriefing your own sales staff is a good way to glean information about competitors.
97) ______
98) Competitive intelligence is the same thing as corporate espionage.
98) ______
99) One good way to gain competitive advantage is to spread inaccurate information about your firm.
99) ______
100) Mergers between two competitors really have no impact on your business.
100) _____
101) One planning tool that emerged from the video game industry is virtual reality.
101) _____
102) Much competitor intelligence is available from public sources, but it is illegal to use it to gain a competitive advantage.
102) _____
103) Business intelligence is the same thing as competitor intelligence
103) _____
104) There is a fine line between what is legal and ethical and what is legal but unethical.
104) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 105) What is competitor intelligence? Identify some of the sources of competitor intelligence. Discuss the legal and ethical issues related to this concept. 106) Discuss ways that virtual reality might affect an organization in the future.
1) B 2) A 3) B 4) B 5) B 6) FALSE 7) TRUE 8) FALSE 9) FALSE 10) FALSE 11) TRUE 12) Planning involves defining the organization's goals, establishing an overall strategy for achieving those goals, and developing a comprehensive set of plans to integrate and coordinate organizational work. It is concerned with both ends and means. In formal planning, specific goals covering a period of years are defined. These goals are written and known to organizational members. 13) Marsha Forest is correct in her observation that planning is essential to a company's success. Generally speaking, formal planning is associated with positive financial results. Planning offers several advantages to companies. It establishes coordinated effort and gives direction to managers and non-managers alike. It reduces overlapping and wasteful activities. Planning also establishes goals or standards that are used in controlling. Planning reduces uncertainty by forcing companies to look ahead, anticipate change, consider the impact of change, and develop appropriate responses. It also clarifies the consequences of actions companies might take in response to change. Even though planning can't eliminate change, companies plan in order to anticipate changes and develop the most effective response to them. Even when the environment is highly uncertain, it's important to continue formal planning in order to see any effect on organizational performance. It's the persistence in planning that contributes to significant performance improvement. In an uncertain environment, managers should develop plans that are specific, but flexible. Managers need to recognize that planning is an ongoing process. The plans serve as a road map although the destination may change due to dynamic market conditions. They should be ready to change directions if environmental conditions warrant. 14) Numerous studies have looked at the relationship between planning and performance. Although most showed generally positive relationships, we can't say that organizations that formally plan always outperform those that don't plan. Generally speaking, formal planning is associated with positive financial results-higher profits, higher return on assets, and so forth. Also, it seems that doing a good job planning and implementing those plans play a bigger part in high performance than does how much planning is done. Next, in those studies where formal planning didn't lead to higher performance, the external environment often was the culprit. When external forces-say, governmental regulations or powerful labor unions-constrain managers' options, it reduces the impact planning has on an organization's performance. Finally, the planning-performance relationship seems to be influenced by the planning time frame. It seems that at least four years of formal planning is required before it begins to affect performance. 15) A 16) C 17) D 18) C 19) C 20) A 21) B 22) B 23) D 24) B 25) D
26) C 27) B 28) D 29) C 30) C 31) C 32) C 33) B 34) FALSE 35) TRUE 36) TRUE 37) TRUE 38) FALSE 39) TRUE 40) Strategic plans are plans that apply to the entire organization, establish the organization's overall goals, and seek to position the organization in terms of its environment. Plans that specify the details of how the overall goals are to be achieved are called operational plans. Strategic plans tend to cover a longer time frame and a broader view of the organization. Strategic plans also include the formulation of goals whereas operational plans define ways to achieve the goals. Also, operational plans tend to cover shorter time periods. We define long-term plans as those with a time frame beyond three years. Short-term plans are those covering one year or less. Specific plans are plans that are clearly defined and that leave no room for interpretation. They have clearly defined objectives. There's no ambiguity and no problem with misunderstanding. The drawbacks of specific plans are that they require clarity and a sense of predictability that often do not exist. When uncertainty is high and managers must be flexible in order to respond to unexpected changes, directional plans are preferable. Directional plans are flexible plans that set out general guidelines. They provide focus but don't lock managers into specific goals or courses of action. However, the flexibility inherent in directional plans must be weighed against the loss of clarity provided by specific plans. A single-use plan is a one-time plan specifically designed to meet the needs of a unique situation. In contrast, standing plans are ongoing plans that provide guidance for activities performed repeatedly. Standing plans include policies, rules, and procedures. 41) D 42) D 43) C 44) A 45) C 46) A 47) TRUE 48) TRUE 49) FALSE 50) Three contingency factors affect planning: level in the organization, degree of environmental uncertainty, and length of future commitments. The planner's level in the organization is likely to determine whether the plan is more strategic versus more operational. For the most part, operational planning dominates managers' planning at lower levels of the organization, while at upper levels, planning is more strategy oriented. Environmental uncertainty is the second contingency factor. When uncertainty is high, plans should be specific, but more flexible. Under these conditions, managers may sometimes need to abandon an existing plan in favor of a new one. Under low uncertainty, management is more likely to adhere to existing plans. Lastly, the time frame of existing plans is likely to influence new and emerging plans. The more current plans affect future commitments, the longer the time frame is for which managers must plan. 51) In an uncertain environment, managers want to develop plans that are specific, but flexible. Although this may seem contradictory, it's not. To be useful, plans need some specificity, but the plans should not be cast in stone. Managers must recognize that planning is an ongoing process. The plans serve as a roadmap although the destination may be changing constantly due to dynamic market conditions. They should be willing to change directions if environmental conditions warrant. This flexibility is particularly important as plans are implemented.
Man changes that could impact the effective implementation of plans and make changes as needed. Keep in mind, also, agers that it's important to continue formal planning efforts, even when the environment is highly uncertain, in order to must see any effect on organizational performance. It's the persistence in planning efforts that contributes to significant stay performance improvement. It seems that, as with most activities, managers "learn to plan" and the quality of their alert planning improves when they continue to do it. Finally, effective planning in dynamic environments means to flattening the organizational hierarchy as the responsibility for establishing goals and developing plans is shoved to envir lower organizational levels because there's little time for goals and plans to flow down from the top. Managers onm must train their employees in setting goals and establishing plans and then trust that they will do so. ental 52) B 53) A 54) C 55) A 56) B 57) B 58) A 59) C 60) C 61) B 62) B 63) C 64) C 65) D 66) A 67) D 68) D 69) C 70) D 71) A 72) C 73) TRUE 74) FALSE 75) TRUE 76) TRUE 77) FALSE 78) FALSE 79) FALSE 80) Management by objectives (MBO) is a management system in which specific performance goals are jointly determined by employees and their managers, progress toward accomplishing these goals is periodically reviewed, and rewards are allocated on the basis of this progress. Rather than using goals only as controls, MBO uses them to motivate employees as well. Management by objectives consists of four elements: goal specificity, participative decision making, an explicit time period, and performance feedback. Its appeal lies in its focus on employees working to accomplish goals they have had a hand in determining. 81) An organization's stated goals are official statements of what an organization says, and what it wants its stakeholders to believe, its goals are. However, stated goals-which can be found in an organization's charter, annual report, public relations announcements, or in public statements made by managers-are often conflicting and influenced by what various stakeholders think organizations should do. Such statements are vague and probably better represent management's public relations skills than being meaningful guides to what the organization is actually trying to accomplish. It shouldn't be surprising then to find that an organization's stated goals are often irrelevant to what actually goes on. If you want to know an organization's real goals-those goals an organization actually pursues-observe what organizational members are doing. Actions define priorities. For example, a company may publicly commit to increasing worker participation in management, while actually practicing a
hiera al, top-down approach. Knowing that real and stated goals may differ is important for recognizing what you might rchic otherwise think are inconsistencies. 82) C 83) B 84) D 85) D 86) A 87) D 88) C 89) C 90) C 91) B 92) C 93) B 94) TRUE 95) FALSE 96) FALSE 97) TRUE 98) FALSE 99) FALSE 100) FALSE 101) TRUE 102) FALSE 103) FALSE 104) TRUE 105) Competitor intelligence involves gathering information about competitors that allows managers to anticipate competitors' actions rather than merely react to them. It is one of the fastest-growing forms of environmental scanning. It seeks basic information about competitors: Who are they? What are they doing? How will what they're doing affect us? Advertisements, promotional materials, press releases, reports filed with government agencies, annual reports, want ads, newspaper reports, information on the Internet, and industry studies are readily accessible sources of information. Specific information on an industry and associated organizations is increasingly available through electronic databases. Managers can literally tap into this wealth of competitor information by purchasing access to databases. Attending trade shows and debriefing your own sales staff also can be good sources of information on competitors. In addition, many organizations even regularly buy competitors' products and ask their own employees to evaluate them to learn about new technical innovations. Managers do need to be careful about the way information, especially competitor intelligence, is gathered to prevent any concerns about whether it's legal or ethical. Difficult decisions about competitor intelligence arise because often there's a fine line between what's considered legal and ethical and what's considered legal but unethical. Some people or companies will go to any lengths-some unethical-to get information about competitors. Many who study competitor intelligence suggest that much of the competitor-related information managers need to make crucial strategic decisions that are available and accessible to the public. In other words, competitor intelligence isn't corporate espionage. 106) Virtual reality could help the organization save a lot of money on travel by using this technology to interview job candidates, hold virtual meetings with people in different geographic regions, or conduct complex job trainings. This tool could be very useful for product design and office and plant layout decisions. Several industries, including airlines and financial services, currently use virtual reality to visualize and/or simplify complex topics or designs.
Exam Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The CEO is meeting with his top managers to determine how best to compete successfully in the 1) _______ company's market. This group is developing the company's ________. A) strengths and weaknesses B) strategy C) competitive advantage D) opportunities and threats 2) The top managers of the corporation are meeting to discuss how they will compete in their chosen markets and how they will attract and satisfy customers. These managers are discussing ________. A) the business model B) core competencies C) strategy D) their competitive advantage
2) _______
3) A ________ describes the rationale of how a company is going to make money. A) core competency B) business model C) mission statement D) SWOT analysis
3) _______
4) The CEO and his top managers have asked themselves two important questions: a. do customers value what the company is providing; and b. can the company make money doing that? This group is developing a ________. A) competitive advantage B) business model C) BCG matrix D) strategy
4) _______
5) The main reason strategic management is important is ________. A) it allows an organization to anticipate economic recessions B) it can make a difference in how well an organization performs C) it simplifies the environment D) it reduces uncertainty
5) _______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 6) Strategic management involves only the planning function.
6) _______
7) A strategy defines how a company is going to make money.
7) _______
8) A business model describes how a company is going to make money and what it is going to do with it.
8) _______
9) Strategic management helps coordinate the efforts of all department and functional areas of an organization.
9) _______
10) Strategic management is not important for non-profit organizations because their focus is on providing a needed service, not on making a profit.
10) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 11) In a short essay, explain strategic management and why it is important. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 12) Defining the organizational mission forces managers to identify what ________. 12) ______ A) pending legislation will affect the organization
B) its capabilities are C) its competitive advantage is D) the organization is in business to do 13) Managers perform an external analysis so that they know about ________. A) their organization's core competencies B) what vendors want C) the firm's basic beliefs and ethical priorities D) what the competition is doing
13) ______
14) Patrick expects each person he hires for his online business to be involved in studying trends involving new technology, competitors, and customers. These employees are involved in ________. A) economic analysis B) external analysis C) internal analysis D) industry analysis
14) ______
15) When an organization is analyzing its labor supply, it is studying its ________. A) internal environment B) regulatory environment C) external environment D) economic environment
15) ______
16) ________ are positive trends in the external environment. A) Weaknesses B) Opportunities C) Strengths
16) ______ D) Threats
17) Computer peripherals provider Ascent plans to enter a new market in another country. Which one of the following represents a threat for Ascent? A) Ascent needs to improve its service capabilities in the new country as this is an important source of revenue. B) Ascent's profit margin in the previous year was its lowest on record and it will require long-term planning to improve margins. C) Ascent will have to plan its entry carefully as the laws in the country do not favor foreign businesses. D) Ascent lacks the resources to enter the market on its own and has to find a partner in the new market.
17) ______
18) A study of the external environment allows a manager to understand the ________ and ________ for the organization. A) opportunities; threats B) strengths; weaknesses C) strengths; opportunities D) threats; weaknesses
18) ______
19) Brutus' Fried Chicken patented the recipe for the spices used in the coating of the chicken. The patent protection lasts for 17 years. Brutus' Fried Chicken will view this patent protection as a(n) ________. A) cost of doing business B) weakness because the patent cannot be renewed C) opportunity during the time of the patent protection D) threat until the patent expires
19) ______
20) Casey majored in marketing and really enjoyed studying market research as a subject. Through research on the Internet and in the university library, she discovers that this industry appears to have significant positive trends in employment. She interprets this as a(n) ________. A) weakness B) strength C) threat D) opportunity
20) ______
21) Casey realizes that she has a personal characteristic that suggests she is not comfortable interacting with strangers. She interprets this as a(n) ________ if she is to get a job as a salesperson. A) weakness B) opportunity C) threat D) strength
21) ______
22) Helen, the owner of Crazy Cupcakes, is conducting a SWOT analysis of her company. Which one of the following represents an opportunity for expansion? A) In a taste test, Crazy Cupcakes products ranked higher than competitors in the taste and texture segments. B) The production process was found to be highly efficient and wastage was kept to a minimum. C) There has been a trend toward personalized cupcakes for a variety of occasions. D) One of Crazy Cupcakes competitors has added cookies to its product line.
22) ______
23) Newmark RV is performing an internal analysis. Which of the following would be considered a resource? A) Strongly positive reviews from existing customers. B) Membership in RVIA, the industry association. C) A patent for a special design feature. D) A method of production not used by competitors.
23) ______
24) Bella Vista Clothing targets teenage girls with a range of affordable ready-to-wear clothing. The company is opening two new outlets, as sales have been excellent. Which one of the following represents a strength for the company? A) Bella Vista has excess production capacity. B) The company's in-house designers have a knack for identifying and popularizing fashion trends. C) Disposable income is rising and consumers will have more money to spend on clothes. D) A long-time competitor recently went out of business and Bella Vista can cut down on its advertising budget.
24) ______
25) A bank estimates the capabilities of its customer service employees prior to implementing a new training program designed to change their method of providing customer service. The bank is ________. A) performing an internal analysis B) performing an employee audit C) formulating its competitive strategies D) conducting an external analysis
25) ______
26) An organization's financial, physical, human, and intangible assets are known as its ________. A) resources B) core competencies C) capabilities D) strengths
26) ______
27) Harness International, a global wiring harness company, allows each customer to access its engineering drawings on the company's extranet, speeding up the design process for every project. Harness would consider this to be a(n) ________. A) opportunity B) competitive advantage C) capability D) resource
27) ______
28) The major value-creating capabilities of the organization are known as its ________. A) resources B) strengths C) competitive advantages D) core competencies
28) ______
29) The combined external and internal analyses are called ________.
29) ______
A) industry analysis C) SWOT analysis
B) competitor analysis D) market analysis
30) After the SWOT analysis is complete, managers are ready to ________. A) identify competitors B) formulate strategies C) review the analysis D) begin production
30) ______
31) The final step in the strategic management process allows an organization to understand the ________. A) external environment B) effectiveness of the strategies used C) resources and capabilities it possesses D) implementation of the strategies
31) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 32) The first step in the strategic management process is analyzing the external environment.
32) ______
33) A firm's reputation in the marketplace would be considered a resource.
33) ______
34) Evaluating an organization's intangible assets is part of conducting an internal analysis in the strategic management process.
34) ______
35) Activities that an organization does well or resources that it has available are called capabilities.
35) ______
36) Exceptional or unique organizational resources are known as core capabilities.
36) ______
37) When conducting a SWOT analysis, threats are activities the organization doesn't do well or resources it needs but doesn't possess.
37) ______
38) A SWOT analysis includes an analysis of an organization's environmental opportunities and threats.
38) ______
39) The final step in the strategic management process is implementing the objectives.
39) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 40) Identify the six steps in the strategic management process and briefly explain what happens in each step. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 41) Top-level managers are responsible for ________ strategies. 41) ______ A) functional B) tactical C) corporate D) competitive 42) Lower-level managers are responsible for ________ strategies. A) stability B) functional C) corporate
42) ______ D) tactical
43) A(n) ________ strategy determines what businesses a company is in or wants to be in, and what it wants to do with those businesses. A) corporate B) functional C) operating D) competitive
43) ______
44) What are the three main types of corporate strategies? A) Stability, focus, and turnaround B) Growth, cost leadership, and differentiation C) Stability, differentiation, and focus D) Growth, stability, and renewal
44) ______
45) A ________ strategy is when an organization expands the number of markets served or the products offered. A) stability B) growth C) renewal D) retrenchment
45) ______
46) Organizations grow by using strategies of ________. A) concentration, integration, or stabilization B) integration, diversification, or functionalization C) concentration, integration, or diversification D) integration, diversification, or differentiation
46) ______
47) An organization that grows using ________ focuses on its primary line of business and increases the number of products offered or markets served in this primary business. A) diversification B) vertical integration C) horizontal integration D) concentration
47) ______
48) Emily's Bakery's customers have asked her to open a second location in a neighboring town offering the same menu as the original location. If Emily decides to do this, she will be following a ________ strategy. A) focus B) diversification C) differentiation D) concentration
48) ______
49) In ________ integration, the organization becomes its own supplier so it can control its inputs. A) forward vertical B) backward vertical C) concentrated D) horizontal
49) ______
50) Hendricks Ceramics sells items it buys from ceramic factories. If it were to purchase one of these factories, it would be engaging in ________ integration. A) horizontal B) backward vertical C) forward vertical D) concentrated
50) ______
51) In ________ integration, the organization gains control of its outputs by becoming its own distributor. A) concentrated B) forward vertical C) diversified D) backward vertical
51) ______
52) The French fries at Ronald's fast food business have been its most popular product. During the past year, its profits have suffered because the farm that supplies it with potatoes has increased its prices drastically. What should Ronald's do to control its production costs? A) Ronald's should expand its menu to include sweet potato fries. B) Ronald's should buy out the farm and become its own supplier. C) Ronald's should broaden its product range by introducing potato nuggets on its menu. D) Ronald's should invest in more efficient fryers.
52) ______
53) In ________, a company grows by combining with competitors. A) concentrated integration B) vertical integration C) lateral integration D) horizontal integration
53) ______
54) Joe's Hardware bought Moe's hardware on the other side of town. This is an example of ________. A) horizontal integration B) lateral integration C) forward integration D) backward integration
54) ______
55) An organization that is diversifying its product line is exhibiting what type of corporate
stra tegy?
55)
______ A) Turnaround strategy C) Diversification strategy
B) Retrenchment strategy D) Growth strategy
56) ________ takes place when a company combines with other companies in different, but associated, industries. A) Related diversification B) Horizontal integration C) Vertical integration D) Stabilized diversification
56) ______
57) When a company combines with firms in different and dissimilar industries, it indulges in ________. A) focused diversification B) vertical integration C) horizontal integration D) unrelated diversification
57) ______
58) Florance is a chain of flower shops in the Chicago area. The company recently acquired Knick-knacks, which owns three gift shops. Which of the following is most similar to this acquisition? A) Faced with mounting raw material costs, a consumer goods producer took over its supplier. B) A construction firm acquired a textile manufacturer as it seemed like a good investment. C) One shoe store chain buys out another shoe store chain and expands its distribution channels through the acquired chain's outlets. D) A toy retailer acquired a children's bookstore chain and now retails both toys and books from co-branded outlets.
58) ______
59) When an organization continues serving the same clients by offering the same product or service, maintaining market share, and sustaining the organization's current business operations, it is following a ________ strategy. A) renewal B) growth C) stability D) retrenchment
59) ______
60) Tom's Welding has been supplying frames to the mobile home industry for many years. His business has remained steady despite the entry of other firms into the industry. Tom's is likely pursuing a ________ strategy. A) renewal B) differentiation C) retrenchment D) stability
60) ______
61) ________ strategies address declining performance through retrenchment and turnaround strategies. A) Growth B) Renewal C) Stability D) Functional
61) ______
62) A ________ strategy is used to deal with minor performance problems. It helps an organization stabilize operations, revitalize organizational resources and capabilities, and prepare to compete once again. A) renewal B) turnaround C) stability D) retrenchment
62) ______
63) During the Great Recession, Malcolm's Racing Bikes lost a considerable amount of its business because customers could no longer afford the expensive models in his shop. He was very near bankruptcy. Malcolm began carrying a line of less expensive bikes to appeal to recreational bicyclists and families and also opened a repair service. Malcolm used a ________ strategy. A) retrenchment B) diversification C) reorganization D) turnaround
63) ______
64) Which one of the following provides a framework for understanding diverse businesses and helps managers establish priorities for allocating resources?
64) ______
A) A competitive strategy C) A differentiation matrix
B) A corporate portfolio matrix D) A business unit matrix
65) In the BCG matrix, a ________ enjoys a high anticipated growth rate and a high market share. A) star B) dog C) cash cow D) question mark
65) ______
66) In the Boston Consulting Group (BCG) matrix, a business unit that has a low anticipated growth rate but a high market share is known as a ________. A) cash cow B) star C) question mark D) dog
66) ______
67) The tobacco market in the United States has stagnated but Altria has a 50% share of it. According to the BCG Matrix, Altria is a ________. A) question mark B) star C) dog D) cash cow
67) ______
68) In the BCG matrix, a business unit that has a high anticipated growth rate but a low market share is known as a ________. A) question mark B) star C) cash cow D) dog
68) ______
69) AI Rubber is one of four suppliers of molded rubber products and has a 45% market share. The market for its products is shrinking. AI Rubber is part of a larger corporation that includes a total of seven different companies. In the BCG matrix, AI Rubber would be considered a ________. A) star B) question mark C) dog D) cash cow
69) ______
70) When a totally new product, such as laser discs years ago, is introduced, it would be considered a ________ according to the BCG matrix. A) question mark B) star C) dog D) cash cow
70) ______
71) When Stratasys began making 3D printers in 1988, the future of this new invention was unknown but expected to grow. Stratasys was one of a handful of producers of these printers. According to the BCG matrix, Stratasys was a ________. A) dog B) cash cow C) star D) question mark
71) ______
72) In the BCG matrix, a ________ has a low anticipated growth rate and a low market share. A) star B) dog C) question mark D) cash cow
72) ______
73) As smartphone cameras improved, consumers turned away from traditional cameras. Polaroid lost market share and finally realized their product was no longer desired. At that point, Polaroid would be considered a ________ in the BCG matrix. A) cash cow B) dog C) question mark D) star
73) ______
74) ________ should be sold off or liquidated as they have low market share and low growth potential. A) Question B) Stars C) Dogs D) Cash cows marks
74) ______
75) Managers should "milk" cash cows for as much as they can, limit any new investment in them, and use the large amounts of cash generated to invest in ________ and ________. A) question marks; dogs B) cash cows; dogs C) dogs; stars D) stars; question marks
75) ______
76) Heavy investment in ________ will help take advantage of the market's growth and help maintain high market share.
76) ______
A) question marks
B) cash cows
C) dogs
D) stars
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 77) Corporate strategies determine what business a company is in or wants to be in, and what it wants to do with those businesses.
77) ______
78) Diversification is an example of a corporate retrenchment strategy.
78) ______
79) If Burger King were to buy out Mom and Pop's Burgers, Burger King would be growing by vertical integration.
79) ______
80) When a firm integrates backward, it becomes its own distributor.
80) ______
81) A trucking company that grows by purchasing a chain of gasoline stations is engaged in horizontal integration.
81) ______
82) A stability strategy is an organizational strategy in which an organization maintains the status quo.
82) ______
83) A retrenchment strategy is a short-run renewal strategy that helps an organization stabilize operations, revitalize organizational resources and capabilities, and prepare to compete once again.
83) ______
84) A turnaround strategy is a type of renewal strategy used when an organization is in serious trouble.
84) ______
85) The BCG matrix evaluates an organization's various businesses to identify which ones offer high potential and which ones drain organizational resources.
85) ______
86) Stars, one of the four business groups in the BCG matrix, are characterized by low growth and high market share.
86) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 87) List and discuss the different types of corporate strategies. 88) Discuss the methods by which an organization grows. Give relevant examples. 89) Discuss the corporate portfolio matrix and the Boston Consulting Group (BCG) matrix. 90) List and discuss the three levels of strategy that a large organization must develop. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 91) A ________ describes how a business will compete in its primary market. 91) ______ A) competitive strategy B) corporate strategy C) mission statement D) competitive advantage 92) In an organization, the single independent businesses which formulate their own competitive strategies are known as ________. A) strategic profit units B) strategic business units C) service units D) strategic growth units
92) ______
93) Bixler Corporation boasts that it has the fewest warranty claims in its industry. We can infer
fro m this
that 93) ________ . A) Bixler has employed design thinking in the development of its products B) Bixler's quality is a competitive advantage C) Bixler has an ineffective TQM program D) Bixler is using social media to promote its products
___ ___
94) A firm's ________ strategy is an organizational strategy for how it will compete in its primary or main market. A) market B) primary C) competitive D) concentration
94) ______
95) When used to connect with customers or to connect employees with co-workers in other locations, social media ________. A) provide a means for customers to order products online B) provide information for competitors that give them a competitive advantage C) can create a competitive advantage D) create distractions that can keep employees from being productive
95) ______
96) Which of the following is a competitive force under the five forces model? A) Vertical integration B) Threat of new entrants C) Past rivalry with competitors D) Bargaining power of distributors
96) ______
97) When the price of beef skyrockets, consumers switch to pork and chicken. This demonstrates ________. A) the bargaining power of suppliers B) the threat of substitutes C) the threat of new entrants D) the bargaining power of buyers
97) ______
98) When one gas station lowers its price a penny, the station on the other corner of the intersection lowers its price, followed by the gas stations on the next block, and so on, until nearly every gas station in town has lowered its prices. This situation illustrates ________. A) a cost leadership strategy B) intense rivalry among competitors C) a differentiation strategy D) the threat of substitutes
98) ______
99) A cost leadership strategy requires a firm to ________. A) match its competition's prices B) maintain the lowest prices to its customers C) maintain the lowest cost structure D) aim at a cost advantage in a niche market
99) ______
100) People's Airlines offers what it calls "no frills" flights: no reserved seating, no snacks or meals on flights, small planes that fly to smaller airports away from the city centers. People's Airlines is likely following a ________ strategy. A) focus B) cost leadership C) differentiation D) quality
100) _____
101) Every fast food hamburger restaurant chain wants you to believe their product is the best because it is stored or prepared uniquely. Each of these is pursuing a ________. A) low cost leadership strategy B) quality strategy C) differentiation strategy D) focus strategy
101) _____
102) A company that competes by offering unique products that are widely valued by customers is following a ________.
102) _____
A) differentiation strategy C) leadership strategy
B) focus strategy D) functional strategy
103) Apple is an example of a company that was ________. A) unable to develop a successful competitive strategy B) pursuing a cost leadership strategy C) stuck in the middle D) distinguishing itself from its competitors
103) _____
104) Which of the following strategies involves a cost advantage or a differentiation advantage in a narrow segment? A) Retrenchment strategy B) Focus strategy C) Leadership strategy D) Functional strategy
104) _____
105) Ferrari sells very expensive, stylish, high-quality cars to very wealthy people. Ferrari follows a ________ strategy. A) functional B) differentiation C) quality D) focus
105) _____
106) A firm that is '"stuck in the middle'" cannot develop ________. A) a functional strategy B) a cost or differentiation advantage C) a leadership strategy D) a competitive advantage
106) _____
107) Functional-level strategy directly supports the ________. A) competitive strategy B) operating strategy C) concentration strategy D) corporate strategy
107) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 108) Within an organization, the single independent businesses that formulate their own competitive strategies are known as strategic business units.
108) _____
109) Establishing a competitive advantage is important but insufficient. To be successful in the long term, firms must maintain that advantage.
109) _____
110) A company that competes by offering unique products that are widely valued by customers is following a differentiation strategy.
110) _____
111) Although it is difficult to do, a "stuck in the middle" company can keep costs low and distinguish itself from its competitors.
111) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 112) Discuss the concept of competitive advantage and explain how quality is a competitive advantage. 113) Discuss the five forces model and the various competitive strategies that an organization may use. 114) Discuss how social media can create a competitive advantage. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 115) How can a cost leader use e-business to reduce costs? 115) _____ A) It could use Internet-based knowledge systems to shorten customer response times. B) It could automate purchasing and payment systems so that customers have detailed status reports. C) It could use Web-based inventory control systems that reduce storage costs.
D) It could provide rapid online responses to service requests. 116) An Internet-based knowledge management system that shortens customer response times would be an e-business technique that contributes to the competitive advantage of a ________. A) brick B) focuser C) differentiator D) cost leader
116) _____
117) An important part of customer service is ________. A) giving customers what they want B) offering a toll-free number with representatives available 24/7. C) maintaining a friendly attitude D) keeping costs low by offshoring the customer service call center
117) _____
118) An organization that initially brings a product innovation to the market is known as the ________. A) question mark B) free rider C) cash cow D) first mover
118) _____
119) Which one of the following is an advantage of being a first mover? A) No financial or strategic risks. B) Low development costs. C) Opportunity to begin building customer relationships. D) Certainty over the direction of technology and market.
119) _____
120) What is a strategic disadvantage of being a first mover? A) No cost and learning benefit. B) Least opportunity to build customer loyalty. C) Risk of competitors imitating innovations. D) No control over resources.
120) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 121) Managers using the strategic management process always achieve positive outcomes.
121) _____
122) Basic scientific research requires the least resource commitment because there are no production costs involved.
122) _____
123) Innovation can help firms achieve a differentiation competitive strategy.
123) _____
124) Focusing on process development can lead to a successful cost leadership competitive strategy.
124) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 125) Discuss how managers can formulate social media strategies that contribute to the development of a sustainable competitive advantage in today's environment. 126) Explain the term "first mover" and then list the advantages and disadvantages of being a first mover in the market.
1) B 2) C 3) B 4) B 5) B 6) FALSE 7) FALSE 8) FALSE 9) TRUE 10) FALSE 11) Strategic management is what managers do to develop the organization's strategies. It is an important task involving all the basic management functions-planning, organizing, leading, and controlling. There are three reasons as to why strategic management is important. The most significant one is that it can make a difference in how well an organization performs. Generally, there is a positive relationship between strategic planning and performance. Generally, organizations that use strategic management have higher levels of performance. Another reason it is important has to do with the fact that managers in organizations of all types and sizes face continually changing situations. They cope with this uncertainty by using the strategic management process to examine relevant factors and decide what actions to take. Finally, strategic management is important because organizations are complex and diverse. Each part needs to work together toward achieving the organization's goals; strategic management helps do this. Today, strategic management has become so important that both business organizations and not-for-profit organizations use it. 12) D 13) D 14) B 15) C 16) B 17) C 18) A 19) C 20) D 21) A 22) C 23) C 24) B 25) A 26) A 27) C 28) D 29) C 30) B 31) B 32) FALSE 33) FALSE 34) TRUE 35) FALSE 36) FALSE 37) FALSE 38) TRUE 39) FALSE
40) Step 1: Identify the Organization's Current Mission, Goals, and Strategies - Every organization needs a mission-a statement of its purpose. Defining the mission forces managers to identify what it's in business to do. These statements provide clues to what these organizations see as its purpose. Step 2: Do an External Analysis - Managers do an external analysis so they know, for instance, what the competition is doing, what pending legislation might affect the organization, or what the labor supply is like in locations where it operates. In an external analysis, managers should examine the economic, demographic, political/legal, sociocultural, technological, and global components to see the trends and changes. Step 3: Do an Internal Analysis - This provides important information about an organization's specific resources and capabilities. After completing an internal analysis, managers should be able to identify organizational strengths and weaknesses. The combined external and internal analyses are called the SWOT analysis, which is an analysis of the organization's strengths, weaknesses, opportunities, and threats. Step 4: Formulate Strategies - The three main types of strategies managers will formulate include corporate, competitive, and functional. Step 5: Implement Strategies - Once strategies are formulated, they must be implemented. No matter how effectively an organization has planned its strategies, performance will suffer if the strategies are not implemented properly. Step 6: Evaluate Results - The final step in the strategic management process is evaluating results. 41) C 42) B 43) A 44) D 45) B 46) C 47) D 48) D 49) B 50) B 51) B 52) B 53) D 54) A 55) D 56) A 57) D 58) D 59) C 60) D 61) B 62) D 63) D 64) B 65) A 66) A 67) D 68) A 69) D 70) A 71) D 72) B 73) B 74) C
75) D 76) D 77) TRUE 78) FALSE 79) FALSE 80) FALSE 81) FALSE 82) TRUE 83) TRUE 84) TRUE 85) TRUE 86) FALSE 87) The three main types of corporate strategies are growth, stability, and renewal. a. Growth - A growth strategy is when an organization expands the number of markets served or products offered, either through its current businesses or through new businesses. Because of its growth strategy, an organization may increase revenues, number of employees, or market share. Organizations grow by using concentration, vertical integration, horizontal integration, or diversification. b. Stability - A stability strategy is a corporate strategy in which an organization continues to do what it is currently doing. Examples of this strategy include continuing to serve the same clients by offering the same product or service, maintaining market share, and sustaining the organization's current business operations. The organization does not grow, but does not fall behind, either. c. Renewal - When an organization is in trouble, something needs to be done. Managers need to develop strategies, called renewal strategies, that address declining performance. The two main types of renewal strategies are retrenchment and turnaround strategies. 88) Organizations grow by using concentration, vertical integration, horizontal integration, or diversification. An organization that grows using concentration focuses on its primary line of business and increases the number of products offered or markets served in this primary business. For instance, Bose Corporation of Framingham, Massachusetts, which focuses on developing innovative audio products has become one of the world's leading manufacturers of speakers for home entertainment, automotive, and pro audio markets with annual sales of $3.8 billion by using this strategy. A company also might choose to grow by vertical integration, either backward, forward, or both. In backward vertical integration, the organization becomes its own supplier so it can control its inputs. For instance, Walmart built its own dairy-processing plant so it could supply its own private label milk to its stores at a lower cost. In horizontal integration, a company grows by combining with competitors. For instance, Bank of America acquired MBNA, Summit Bancorp and several other banks in the last several years. Finally, an organization can grow through diversification, either related or unrelated. Related diversification happens when a company combines with other companies in different, but related, industries. For instance, Google has acquired over 150 businesses but all are related to its core business. A few of the companies are YouTube, Nest, and Motorola Mobility. Unrelated diversification occurs when a company combines with firms in different and unrelated industries. For instance, the Tata Group of India has businesses in chemicals, communications and IT, consumer products, energy, engineering, materials, and services. In this case, there is no strategic fit among the businesses. 89) When an organization's corporate strategy encompasses a number of businesses, managers can manage this collection, or portfolio, of businesses using a tool called a corporate portfolio matrix. This matrix provides a framework for understanding diverse businesses and helps managers establish priorities for allocating resources. The first portfolio matrix-the BCG matrix-was developed by the Boston Consulting Group and introduced the idea that an organization's various businesses could be evaluated and plotted using a 2 × 2 matrix to identify which ones offered high potential and which were a drain on organizational resources. The horizontal axis represents market share (low or high) and the vertical axis indicates anticipated market growth (low or high). A business unit is evaluated using a SWOT analysis and placed in one of the four categories: dogs, cash cows, stars, and question marks. a. Dogs - They should be sold off or liquidated as they have low market share in markets with low growth potential.
b. ipated growth rate but high market share. Managers should "milk" them for as much as they can, limit any new Cash investment in them, and use the large amounts of cash generated to invest in stars and question marks with strong Cow potential to improve market share. sc. Stars - These have high anticipated growth rate and high market share. Heavy investment in stars will help take Thes advantage of the market's growth and help maintain high market share. The stars eventually develop into cash e cows as their markets mature and sales growth slows. have d. Question Marks - These have high anticipated growth rate but low market share. The hardest decision for low managers relates to the question marks. After careful analysis, some will be sold off and others strategically antic nurtured into stars. 90) a. Corporate Strategy - This strategy determines what businesses a company is in or wants to be in, and what it wants to do with those businesses. It is based on the mission and goals of the organization and the roles each business unit of the organization will play. It also helps top managers decide what to do with the businesses: grow them, keep them the same, or renew them. b. Competitive Strategy - This is a strategy for how an organization will compete in its businesses. For a small organization in only one line of business or the large organization that has not diversified into different products or markets, its competitive strategy describes how it will compete in its primary or main market. For organizations in multiple businesses, however, each business will have its own competitive strategy that defines its competitive advantage, the products or services it will offer, and the customers it wants to reach. c. Functional Strategy - This is the strategy used by an organization's various functional departments to support the competitive strategy. 91) A 92) B 93) B 94) C 95) C 96) B 97) B 98) B 99) C 100) B 101) C 102) A 103) D 104) B 105) D 106) B 107) A 108) TRUE 109) TRUE 110) TRUE 111) TRUE 112) In order to develop an effective competitive strategy, managers should understand their competitive advantage, which is what sets their organization apart-that is, the organization's distinctive edge. The distinctive edge can come from the organization's core competencies by doing something that others cannot do or by doing it better than others. For example, Southwest Airlines has a competitive advantage because of its skills at giving passengers what they want - convenient and inexpensive air passenger service. Or competitive advantage can come from the company's resources because the organization has something that its competitors do not have. For instance, Walmart's state-of-the-art information system allows it to monitor and control inventories and supplier relations more efficiently than its competitors, which Walmart has turned into a cost advantage. Quality as a competitive advantage: If implemented properly, quality can be a way for an organization to create a sustainable competitive advantage. That is why many organizations apply quality management concepts in an attempt to set themselves apart from competitors. If a business is able to continuously improve the quality and
relia bility of its products, it may have a competitive advantage that cannot be taken away. 113) In any industry, five competitive forces dictate the rules of competition. Together, these five forces determine industry attractiveness and profitability, which managers assess using these five factors: 1. Threat of new entrants. How likely is it that new competitors will come into the industry? 2. Threat of substitutes. How likely is it that other industries' products can be substituted for our industry's products? 3. Bargaining power of buyers. How much bargaining power do buyers (customers) have? 4. Bargaining power of suppliers. How much bargaining power do suppliers have? 5. Current rivalry. How intense is the rivalry among current industry competitors? Once managers have assessed the five forces and done a SWOT analysis, they are ready to select an appropriate competitive strategy-that is, one that fits the competitive strengths (resources and capabilities) of the organization and the industry it's in. According to Porter, no firm can be successful by trying to be all things to all people. He proposed that managers select a strategy that will give the organization a competitive advantage, either from having lower costs than all other industry competitors or by being significantly different from competitors. a. Cost Leadership Strategy - When an organization competes on the basis of having the lowest costs (costs or expenses, not prices) in its industry, it's following a cost leadership strategy. A low-cost leader is highly efficient. Overhead is kept to a minimum, and the firm does everything it can to cut costs. b. Differentiation Strategy - A company that competes by offering unique products that are widely valued by customers is following a differentiation strategy. Product differences might come from exceptionally high quality, extraordinary service, innovative design, technological capability, or an unusually positive brand image. c. Focus Strategy - This involves a cost advantage (cost focus) or a differentiation advantage (differentiation focus) in a narrow segment or niche. Segments can be based on product variety, customer type, distribution channel, or geographical location. 114) Successful social media strategies should help people inside and outside the organization connect and reduce costs or increase revenue possibilities, or both. Firms can gather information from and about their customers. Employees can monitor trends to anticipate changes in customer preferences. Social media tools can be used to boost productivity through the sharing of data and ideas. 115) C 116) C 117) A 118) D 119) C 120) C 121) FALSE 122) FALSE 123) TRUE 124) TRUE 125) Successful social media strategies need to do the following two things; 1) help connect people to the organization and 2) reduce costs and/or increase revenues. Many firms focus extensively on social media to identify high performing job candidates. Other uses include promoting the organization and interacting with customers. This process can help organizations collect data on consumer preferences and dislikes, as well as carry your message to your customers and potential customers. 126) An organization that is first to bring a product innovation to the market or to use a new process innovation is called a first mover. The advantages of being a first mover are: a. Reputation for being innovative and industry leader b. Cost and learning benefits c. Control over scarce resources and keeping competitors from having access to them d. Opportunity to begin building customer relationships and customer loyalty The disadvantages of being a first mover are: a. Uncertainty over exact direction technology and market will go b. Risk of competitors imitating innovations
c. Fina ncial and strat egic risks d. High deve lopm ent costs
Exam Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Arthur has an idea. After performing a SWOT, he has identified a market that is not being 1) _______ served so he is planning to start a new business and introduce a new product. Arthur is a(n) ________. A) strategist B) entrepreneur C) dreamer D) independent business developer 2) People who engage in ________ take advantage of opportunities to create new products or services, or change existing ones. A) entrepreneurship B) venture capitalism C) social responsibility D) social engineering
2) _______
3) Annabel operates a local hardware store that she inherited from her parents. When she took over, she updated the point-of-sale equipment and installed a customer database. Annabel is a(n) ________ A) small business owner B) venture capitalist C) entrepreneur D) opportunist
3) _______
4) Rob is a CPA who works out of an office in his home. His business is named "Friendly Accounting Services." Eventually Rob would like to grow his business to include partners and bookkeepers. We would classify Rob as ________. A) an entrepreneur B) an employee C) self-employed D) a franchisee
4) _______
5) ________ is a process of changing, experimenting, transforming, and revolutionizing. A) Inventing B) Innovating C) Research D) Developing
5) _______
6) Brandon is examining the state of the economy, the regulatory situation, social trends, and the local labor supply. This would indicate Brandon is ________. A) a small business owner B) performing a SWOT analysis C) exploring the entrepreneurial context D) self-employed
6) _______
7) The purpose of examining the state of the economy, the regulatory situation, social trends, and the local labor supply is to ________. A) determine who are the major players in the market B) locate resources for use in the new business C) identify opportunities and possible competitive advantages D) identify possible customers and employees
7) _______
8) Belinda has found a business opportunity she believes will be successful, but there are already a couple companies in that market. To be successful, Belinda will need to ________. A) patent her idea B) pinpoint a competitive advantage C) write her mission statement D) pursue a joint venture with them
8) _______
9) Entrepreneurial firms act as ________ when they provide new and unique ideas that might otherwise go untapped. A) process improvers B) providers of capital C) intellectual creators D) agents of change
9) _______
10) Entrepreneurship is important to the overall economy since entrepreneurs ________. A) don't compete with established businesses B) push out efficient firms C) help keep markets competitive D) often fail their way to success TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 11) Small businesses are the same as entrepreneurial ventures.
10) ______
11) ______
12) The main difference between an entrepreneurial venture and a small business is size.
12) ______
13) Entrepreneurship is important to every industry sector in the United States.
13) ______
14) Entrepreneurship's importance can be shown mostly in three geographic areas in the United States: the Northeast, the South, and the Southwest.
14) ______
15) Innovation is a key aspect of entrepreneurship.
15) ______
16) Entrepreneurships are more likely than large businesses to generate patentable ideas.
16) ______
17) Despite their overall importance to the economy, small businesses account for fewer new jobs than large corporations.
17) ______
18) Nearly half of all workers in the U.S. are employed by small businesses.
18) ______
19) Entrepreneurship is important to a nation's economic development.
19) ______
20) Exploring the entrepreneurial context includes scanning the economic, political/legal, social, and work environment.
20) ______
21) Among the more important pre-launch activities the entrepreneur must perform is the creation of a business plan.
21) ______
22) Organizing an entrepreneurial venture involves, among other activities, choosing a legal form of business organization.
22) ______
23) After the venture is launched, the entrepreneur continues with the same activities as before the launch.
23) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 24) Explain the differences between an entrepreneurial venture and a small business. 25) Compare and contrast self-employment and entrepreneurship. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 26) Arthur Fry thought his glue was a failure because it didn't stick permanently, but when applied 26) ______ to small squares of paper, it became the popular Post-It ® note. Arthur Fry took advantage of ________. A) the unexpected B) a market structure C) a process need D) changes in perception
27) "Put a motor on a bicycle? You must be crazy!" Yet that is exactly what William Harley and Walter Davidson did. These two founders of the best-known American motorcycle company saw opportunity in ________. A) the unexpected B) demographics C) the incongruous D) changes in perception
27) ______
28) In the days before sterile adhesives, bandages were tied onto the patient. Next came adhesive tape with small squares of gauze attached, but making these in the doctors' office was tedious and time consuming. Finally Earle Dickson invented the Band-Aid for his wife, who needed a bandage she could apply to herself for small kitchen burns. Dickson saw ________. A) a process need B) the unexpected C) a new industry D) new knowledge
28) ______
29) Before Henry Ford and Frederick W. Taylor collaborated, automobiles were built by craftsmen, one at a time. After the establishment of the assembly line, Ford was able to produce automobiles faster than his competitors but with equivalent quality and sell them for a fraction of the cost. Ford saw opportunity in ________. A) the unexpected B) industry structure C) demographic shifts D) changing perceptions
29) ______
30) Recognizing the increase in birth rates since 1946, and disliking the task of changing his grandchildren's diapers, Victor Mills began developing a disposable diaper. Pampers were introduced to consumers in 1961. Mills saw opportunity in ________. A) new knowledge B) changes in perceptions C) changes in demographics D) the incongruous
30) ______
31) Decades ago only former military personnel and hoodlums sported tattoos. Today tattoos are considered an art form, giving rise to a plethora of tattoo shops. These body artists have taken advantage of changes in ________. A) perception B) market structure C) processes D) demographics
31) ______
32) In 1938 Dr. Roy Plunkett discovered that a certain material became very slippery when frozen, and PTFE was invented. Under the brand Teflon, PTFE coatings were applied to a wide variety of items from spacecraft to frying pans. DuPont was able to capitalize on ________. A) process needs B) the unexpected C) the incongruous D) new knowledge
32) ______
33) Which one of the following would most likely be a source for ideas for the would-be entrepreneur? A) Trade publications B) Manufacturing exhibitions C) Pure research D) Personal interests and hobbies
33) ______
34) Dharma is examining her financial position, the market for her proposed new product, the types of ownership available to her, and the tax laws for her area to determine whether she should go forward with her new business. Dharma is conducting a ________ A) technical study B) market analysis C) feasibility study D) practicality study
34) ______
35) Before launching his new venture, Doyle is studying the potential competitors for his new product. He will want to find an answer to which one of the following questions? A) Where are they located?
35) ______
B) How do they finance their operations? C) How many employees do they have? D) What competitive advantage do they have? 36) The marketing plan becomes a part of the ________ section of the business plan. A) analysis of the context B) executive summary C) description of the business D) supporting documentation
36) ______
37) Which one of the following items is found in the financial data section of the business plan? A) Economic analysis B) Sales tactics C) Pricing D) Pro forma cash flow analysis
37) ______
38) Emily is calculating her annual revenues, balance sheets, and breakeven points so she can write the ________ section of her business plan. A) executive summary B) analysis of the context C) financial data and projections D) description of the business
38) ______
39) Farrah has created a computer-generated mockup of her new product for inclusion in the ________ section of her business plan. A) executive summary B) description of the business C) analysis of the context D) supporting documentation
39) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 40) An important difference between entrepreneurs and the rest of us is that entrepreneurs can see opportunities the rest of us miss.
40) ______
41) Competitive advantage is a necessary ingredient for an entrepreneurial venture's long-term success and survival.
41) ______
42) The purpose of a business plan is to secure financing for the start-up.
42) ______
43) The executive summary of a business plan is constructed to remind the executive of his plan for the new business
43) ______
44) In a business plan, the analysis of the context is most closely related to the environmental scan.
44) ______
45) The financial data section of the business plan should contain projections for the first five years and a breakeven analysis.
45) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 46) Discuss three of the seven potential sources of opportunity for entrepreneurial ventures. 47) Identify at least three sources or areas where entrepreneurs can find ideas. What should entrepreneurs look for as they explore these idea sources? 48) What kind of questions should entrepreneurs ask before embarking on a new venture? 49) Identify and describe the six sections of the business plan, including the type of information that should appear in each section MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 50) The first organizing decision that an entrepreneur must make is the ________. 50) ______
A) assignment of duties and responsibilities C) type of organizational culture
B) organization structure D) form of legal ownership
51) Fallon wants total control over the decisions related to his business but is concerned that should the business fail, his personal assets are at risk. Fallon has chosen the ________ form of ownership. A) C corporation B) general partnership C) sole proprietorship D) S corporation
51) ______
52) In a sole proprietorship, profits are ________. A) distributed to all partners equally B) taxed as the owner's personal income C) distributed to the partners according to their level of participation D) taxed at the prevailing business rate
52) ______
53) Gaston knows he cannot be physically present at his new restaurant every hour it is open, so he has decided to share management responsibility and profits equally with two others. Gaston has formed a ________. A) general partnership B) limited liability corporation C) limited liability partnership D) joint proprietorship
53) ______
54) Geneva needs additional capital to launch her business but does not want to share management responsibility with partners. Neither does she want to pay the high taxes often assessed on businesses. Her best option may be a(n) ________. A) limited liability partnership B) C corporation C) S corporation D) sole proprietorship
54) ______
55) Hortense and a few of her family members want to launch a new venture but don't want to place their personal assets at risk. For this privilege they are willing to incur the higher taxes associated with the ________ form of organization. A) limited liability company B) limited liability partnership C) S corporation D) C corporation
55) ______
56) Hobart is at the point in his new venture that he needs to hire more people. He comes to you for advice on the type of candidate he should seek. You tell him, "________." A) The important thing is to get people on board whose strengths complement your weaknesses B) Find someone who can be groomed to take over the business when you are ready to retire C) Offer each candidate a stake in the business and hire the one who accepts the offer D) Look for people who are exceptionally capable and fit well with the entrepreneurial culture
56) ______
57) Ignacio knows he cannot pay what the "big boys" pay, so he decides instead to emphasize the ________ his company offers. A) retirement savings plan B) health insurance benefits C) learning opportunities and recognition D) performance incentives
57) ______
58) One disadvantage of a sole proprietorship, other than the unlimited liability, is ________. A) they are subject to more regulation than corporations B) it can be difficult to raise financial capital C) they are costly and complex to form D) the loss of business flexibility for the owner
58) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 59) In a sole proprietorship, the founder keeps all the profits but must share management responsibility with investors.
59) ______
60) A sole proprietor's personal assets are protected from any liability associated with the business.
60) ______
61) The minimum number of partners in a general partnership is three: two general partners and at least one limited partner.
61) ______
62) In a general partnership, all partners assume full responsibility for all debts of the business.
62) ______
63) Limited liability partners have the right to inspect the business and make copies of company records.
63) ______
64) A C corporation can have no more than 50 owners who agree not to sell their stock.
64) ______
65) One advantage of the C corporation is that the owners have complete protection from liability related to business activity.
65) ______
66) The profits of an S corporation are taxed as a partnership.
66) ______
67) The limited liability company has advantages for the new venture that neither the C or S corporation do.
67) ______
68) In a limited liability company, profits are taxed as a partnership.
68) ______
69) As a company grows, an informal, loose, and flexible atmosphere may not work well.
69) ______
70) By the time the new company has grown to the point that the founder can no longer make all the decisions, (s)he is typically glad to hand off some of that responsibility.
70) ______
71) The ability of small firms to successfully recruit appropriate employees is one of the most important factors influencing organizational success.
71) ______
72) Corporations look for candidates who match job requirements; entrepreneurs look for candidates to fill skills gaps.
72) ______
73) Because small businesses cannot usually compete with the salaries offered by large corporations, they tend to focus on psychological rewards for their employees.
73) ______
74) Organizations that support innovation tend to be smaller with fewer rules and resources.
74) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 75) Identify each of the six legal forms of organizations. Discuss the responsibilities of owners, their liability, and the tax treatment of profits of each form. 76) Explain why it is difficult for a young business to recruit and retain employees. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 77) Which one of the many personality traits of entrepreneurs appeared on two separate lists? 77) ______ A) Moderate risk taker B) Persistent problem solver C) Abundance of self-confidence D) High energy level
78) One of the most powerful predictors of entrepreneurial intent is that most future entrepreneurs possess a ________ personality. A) proactive B) introverted C) reactive D) gregarious
78) ______
79) Individuals that are predisposed to take intentional actions to influence their situation or environment are said to have a(n) ________. A) autocratic management style B) mastery complex C) proactive personality D) dispositional advantage
79) ______
80) One of the most common causes of new business failure is ________. A) a lack of customer focus B) the inability of the founder to effectively lead C) a lack of knowledge about the core business D) that entrepreneurs can be too conservative
80) ______
81) Which of these factors is not listed by Buchanan as a common entrepreneurial strength? . A) Extreme confidence in their ability to succeed B) The ability to isolate themselves from the chaos C) The ability to manage high-risk situations D) A strong work ethic
81) ______
82) Which of these represents the three stages that new business ventures go through? . A) Start-up, transition, scaling B) Idea generation, business formation, maturity C) Start-up, rapid growth, decline D) Idea generation, scaling, maturity
82) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 83) The risk propensity is higher for entrepreneurs concerned with providing a family income than for those whose primary goal is growth of the business.
83) ______
84) Employee empowerment is an important motivational tool for entrepreneurs to use.
84) ______
85) The final stage of a new business venture is maturity. .
85) ______
86) Many entrepreneurs struggle with the transition from being the person who does everything to being part of a functionally organized, professional management team. .
86) ______
87) The start-up stage of a new venture is characterized by a hands-on leadership style. .
87) ______
88) Most entrepreneurs lack confidence in their ability to ultimately succeed. .
88) ______
89) People with proactive personalities often have low self-confidence but they are very persistent.
89) ______
90) Using employees in teams might provide some benefits to the organization but it is time-consuming and costly; the costs outweigh the benefits.
90) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 91) Discuss the three stages that a new venture goes through. ? MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
92) Which of these areas do entrepreneurs need to monitor to limit their chance of failure? A) Customer satisfaction B) All of these areas should be monitored C) Employee workloads D) Cash flows and expenses
92) ______
93) Jerry has decided to sell his rapidly growing business to his oldest employee so he can retire and enjoy life in Florida. Jerry's decision is ________. A) an exit option B) a liquidation decision C) likely to fail D) a poor one given the firm's growth
93) ______
94) When Michele had only three employees, she performed most of the records-keeping tasks herself and kept a general idea of finances in her head. Now that her business has expanded, she is having money problems. What should Michele do? A) Create and follow a set of financial controls. B) Relinquish some of her other duties so she can focus on the money end of the business. C) Reach out to the local business development organization for assistance. D) Take a course in financial accounting at the local college.
94) ______
95) Which of these methods is commonly used as a valuation technique to determine a fair price for a firm? ? A) Cash cow valuation technique B) Using a multiple of earnings from comparable businesses C) Two times revenue rule of thumb D) Compute the total value of invested funds
95) ______
96) Ned has built his entrepreneurial venture into a successful business. Part of his original plan was to build the business then sell it to another company that could take it to the next level of success. In other words, Ned intends to ________ his business. A) reap B) harvest C) relinquish D) co-opt
96) ______
97) Nadine is ready to retire after many years building her business. Another entrepreneur has indicated an interest in buying it so Nadine must set a selling price. Which one of the methods below should she use? A) The sum of all taxable incomes for all the years she was in business. B) The sum of all assets currently on the balance sheet less all liabilities (outstanding debt). C) The amount of retirement savings Nadine needs. D) The selling price of a similarly situated business.
97) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 98) Finding people to support growth is an important issue for entrepreneurs.
98) ______
99) Although important at every stage of the business life cycle, controls are especially important during periods of growth.
99) ______
100) When the entrepreneur is ready to exit the business, (s)he should personally determine the business value.
100) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 101) List and discuss five areas that need to be closely monitored with control systems in place if an entrepreneur wants to avoid potential causes of business failure.? 102) List and briefly describe the five exit options an entrepreneur can use to exit an entrepreneurial venture.
1) B 2) A 3) A 4) C 5) B 6) C 7) C 8) B 9) D 10) C 11) FALSE 12) FALSE 13) TRUE 14) FALSE 15) TRUE 16) TRUE 17) FALSE 18) TRUE 19) TRUE 20) TRUE 21) TRUE 22) TRUE 23) FALSE 24) An entrepreneurial venture is an organization that pursues opportunities, is characterized by innovative practices, and has growth and profitability as its main goal. A small business is independently owned, operated, and financed; has fewer than 100 employees; doesn't necessarily engage in any new or innovative practices, and has relatively little impact on its industry. 25) Self-employment refers to individuals who work for profit or fees in their own business, profession, trade, or farm. This arrangement focuses on established professions. Both entrepreneurs and self-employed individuals understand market needs but each approaches that need in a different way. A self-employed individual is more likely to use traditional means and established practices whereas an entrepreneur will use innovation to develop new products or services or radically change the way the product and/or service is delivered to the customer. Entrepreneurs may be self-employed but they may also be employees of the company they started. Self-employed people always work for themselves; they are not paid employees of another company and rely on their own initiative to ensure income generation. Also, self-employed individuals make all the business decisions about how the work gets done. However, self-employment does not preclude having one or more employees. Tax requirements and certain laws require that both entrepreneurs and self-employed individuals create a legally recognized organization. 26) A 27) C 28) A 29) B 30) C 31) A 32) D 33) D 34) C 35) D 36) C 37) D 38) C
39) D 40) TRUE 41) TRUE 42) FALSE 43) FALSE 44) TRUE 45) FALSE 46) a. The unexpected. Ideas can be found in the unexpected. When situations and events are unanticipated, opportunities can be found. b. The incongruous. When something is inconsistent and incompatible with the way it appears—when things are not the way they ought to be—opportunities are present. c. The process need. Small pockets of opportunity appear along the way as researchers and technicians continue to work for the monumental breakthrough. d. Industry and market structures. When changes in technology change the structure of an industry and market, existing firms can become obsolete if they are not attuned to the changes or are unwilling to change. Even changes in social values and consumer tastes can shift the structures of industries and markets. These markets and industries become open targets for nimble and smart entrepreneurs. e. Demographics. Changes in demographics influence industries and markets by altering the types and quantities of products and services desired and customers' buying power. f. Changes in perception. When changes in perception take place, the facts do not vary but their meanings do. Changes in perception lead to changes in what people value, what they believe in, and what they care about. Changes in these attitudes and values create potential market opportunities for alert entrepreneurs. g. New knowledge. New knowledge is a significant source of entrepreneurial opportunity. Entrepreneurs must be able to do something with that knowledge and to protect important proprietary information from competitors. 47) Some entrepreneurs find ideas within their own industry; others find them in personal interests or hobbies, looking at familiar and unfamiliar products and services, and opportunities in external environment. About a third of entrepreneurs said their ideas came from a sudden insight or chance. Entrepreneurs should look for limitations of what is currently available; new and different approaches, advances and breakthroughs, unfilled niches, or trends and changes. 48) Questions about personal considerations would include all of the following: Do you have the capabilities to do what you've selected? Are you ready to be an entrepreneur? Are you prepared emotionally to deal with the stresses and challenges of being an entrepreneur? Are you prepared to deal with rejection and failure? Are you ready to work hard? Have you educated yourself about financing issues? Are you willing and prepared to do continual financial and other types of analyses? Questions about marketplace considerations include the following: Who are the potential customers for your idea: who, where, how many? What similar or unique product features does your proposed idea have compared to what's currently on the market? How and where will potential customers purchase your product? Have you considered pricing issues and whether the price you'll be able to charge will allow your venture to survive and prosper? Have you considered how you will need to promote and advertise your proposed entrepreneurial venture? 49) a. The executive summary summarizes key points about the venture, including a brief mission statement; primary goals; a brief history of the venture; key people involved; the nature of the business; concise product or service descriptions; brief explanations of the market niche, competitors, and competitive advantage; proposed strategies, and selected key financial information. In essence, it is a pared-down version of the entire plan. b. The analysis of the opportunity section includes the demographics of the target market, industry trends, and identification and evaluation of competitors. c. The analysis of the context describes broad external changes and trends taking place in the economic, political-legal, technological, and global environments. d. The description of the business describes how the venture will be organized, launched, and managed. It includes a thorough description of the mission statement; a description of the desired organizational culture; marketing plans including overall marketing strategy, pricing, sales tactics, service-warranty policies, and advertising and promotion tactics; product development plans; operational plans; human resources plans; composition of the board
of schedule and timetable of events. direc e. The financial data and projection section includes financial plans for the first three years, projected income tors; statements, pro forma cash flow analysis, pro forma balance sheets, breakeven analysis, and cost controls. It also and describes expected costs for major equipment of capital purchases and available collateral. Notes should explain an any apparent contradictions. over f. The final section contains such supporting documentation as charts, graphs, tables, photos, or other visual tools to all illustrate details in other sections. 50) D 51) C 52) B 53) A 54) A 55) D 56) D 57) C 58) B 59) FALSE 60) FALSE 61) FALSE 62) TRUE 63) TRUE 64) FALSE 65) TRUE 66) TRUE 67) TRUE 68) TRUE 69) TRUE 70) FALSE 71) TRUE 72) TRUE 73) TRUE 74) TRUE 75) a. In a sole proprietorship, the single owner has complete control of all management decisions but is also personally and completely liable for all business debts. This means the owner's personal assets are at risk. Profits are taxed as the owner's personal income. b. A general partnership involves at least two people who jointly assume management duties and financial liability for the business debts. Personal assets are at risk. Profits are shared according to the written agreement between the partners. Profits are taxed as personal income to the partners. c. A limited liability partnership must have at least one general partner who manages the business and assumes unlimited liability for the business's debts. The limited partners are passive in that they do not participate in the decision-making or management of the business but they retain the right to inspect the business and make copies of business records. Limited partners are entitled to a share of the business's profits as agreed in the partnership agreement even though their risk is limited to the amount of their investment. Profits are taxed as personal income to the partners. d. The C corporation is the most complex form of ownership. The C corporation is a legal entity separate from the owners, giving it the right to make contracts, engage in business activities, own property, sue and be sued, and pay taxes at the corporate tax rate. Owners' liability is limited to the amount of their investment. e. The S corporation has the regular characteristics of a C corporation but profits are taxed as a partnership. Several restrictions are imposed on this type of organization; violation of any one of them will cause the corporation to lose its S status. f. The limited liability company is a hybrid between a partnership and a corporation. It offers the liability protection of a corporation, the tax benefits of a partnership, and fewer restrictions than an S corporation. As with either of the
other orate forms of ownership, legal counsel is advised to guide the owners in the creation of the operating agreement, corp making the LLC expensive to set up. 76) Entrepreneurs are looking for high-potential people who can perform multiple roles during the various stages of venture growth. They look for individuals who "buy into" the venture's entrepreneurial culture—individuals who have a passion for the business. Unlike their corporate counterparts who often focus on filling a job by matching a person to the job requirements, entrepreneurs look to fill in critical skills gaps. They're looking for people who are exceptionally capable and self-motivated, flexible, multi-skilled, and who can help grow the entrepreneurial venture. While corporate managers tend to focus on using traditional HRM practices and techniques, entrepreneurs are more concerned with matching characteristics of the person to the values and culture of the organization; that is, they focus on matching the person to the organization. A unique and important employee retention issue entrepreneurs must deal with is compensation. Whereas traditional organizations are more likely to view compensation from the perspective of monetary rewards (base pay, benefits, and incentives), smaller entrepreneurial firms are more likely to view compensation from a total rewards perspective. For these firms, compensation encompasses psychological rewards, learning opportunities, and recognition in addition to monetary rewards. 77) D 78) A 79) C 80) B 81) B 82) A 83) FALSE 84) TRUE 85) FALSE 86) TRUE 87) TRUE 88) FALSE 89) FALSE 90) FALSE 91) Start-up stage; The concept or idea is turned into a business plan and the first hires are made. The entrepreneur's vision is largely in their head and they have a very hands-on leadership style. The organization is very informal and flexible. Transition stage; The new venture turns into a disciplined business that can deal with rapid expansion. The entrepreneur must learn to delegate and become part of the management team. Since giving up some control is necessary, the entrepreneur may struggle with this stage. Scaling stage; The scaling stage occurs when the uniqueness of the entrepreneurship has disappeared and the firm is now managed by fairly generalizable management concepts. The firm can now expand, or scale, the business. . 92) B 93) A 94) A 95) B 96) B 97) B 98) TRUE 99) TRUE 100) FALSE 101) 1) Accounting and finance - Entrepreneurs need to monitor the cash inflows and outflows, including inventory costs, accounts receivable, and other accounting data. 2) Competitors — An entrepreneur needs to monitor competitors and respond quickly to changes that might allow them to gain market share or gain a competitive advantage. 3) Customers — Entrepreneurs need to keep in touch with customer satisfaction, needs, demands, etc. to make sure the product or service continues to attract new customers and fulfill the needs of existing customers. 4) Employee performance — Keep up with your employees to ensure they remain productive and up-to-date in their
traini and skills. 5) Employee workloads - Are you in danger of losing key employees? Are they working too much or too ng little? Is performance suffering due to heavy workloads? 102) The five broad exit options are; 1) Merger or acquisition — sell controlling interest to another firm. 2) Sell to a friendly buyer — sell the business to a friend, family member, or employee. 3) Initiate an IPO — a successful business can have an investment bank put together an initial public offering (IPO) that will allow the entrepreneur to sell stock in the company and become publicly traded. 4) Treat the business as a cash cow — "Milk" the business by taking a large salary and bonus and 5) Liquidation — sell off all assets and shut the business down.
Exam Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) ________ is the formal arrangement of jobs within an organization. 1) _______ A) Work specialization B) Organizational structure C) Departmentalization D) Organizational design 2) Organizational design is a process that involves decisions about ________. A) work specialization and cost-leadership B) chain of command and span of control C) departmentalization and diversification D) centralization and differentiation
2) _______
3) Michelle is very concerned about the formal framework by which job tasks are divided, grouped, and coordinated within her unit. This implies that she is concerned about ________. A) the organizational structure B) the organizational design C) the chain of command D) decentralization
3) _______
4) The process of dividing work activities into separate job tasks is known as ________. A) work specialization B) differentiation C) organizational design D) span of control
4) _______
5) Which of the following statements accurately defines work specialization? A) It is the basis of grouping jobs together. B) Individual employees specialize in doing part of an activity rather than the entire activity. C) It clarifies who reports to whom. D) It is the line of authority extending from upper organizational levels to the lower levels.
5) _______
6) In the early 20th century, automobiles were made one at a time by craftsmen who could perform
6) _______
every operation necessary to build the car. Henry Ford decided to limit the number of tasks each worker performed so each person could become expert in his position. With this practice, Ford introduced ________. A) formalization B) centralization C) departmentalization D) work specialization 7) The process of grouping jobs together is known as ________. A) departmentalization B) centralization C) organizational design D) formalization
7) _______
8) Pauline sat on a bar-type stool screwing nuts onto bolts about 3,000 times a day while reading a novel. Her production job paid well but that's about all it had going for it. Even though the work was not physically taxing, Pauline was exhausted by the end of her day. Facing another day just like yesterday nearly brought her to tears. Pauline was experiencing ________. A) diseconomies from division of labor B) economies of scale C) burnout D) repetitive motion stress
8) _______
9) At Chemetron, all the accounting people share one large work area; all the quality control people are housed in a large office next to the production floor; and maintenance has its own space at the back of the building. Chemetron is using ________. A) product specialization B) departmental specialization C) process departmentalization D) functional departmentalization
9) _______
10) In the case of functional departmentalization, jobs are grouped according to ________. A) customer flow B) territories C) product lines D) tasks
10) ______
11) Departmentalization based on ________ groups jobs on the basis of territory or physical location. A) geography B) product C) process D) customer
11) ______
12) ________ departmentalization is based on the product or customer flow through the organization. A) Functional B) Customer C) Product D) Process
12) ______
13) What kind of departmentalization would be in place in a government organization where different public service responsibilities are divided into activities for employees, children, and the disabled? A) Geographic departmentalization B) Process departmentalization C) Customer departmentalization D) Product departmentalization
13) ______
14) A disadvantage of ________ departmentalization is poor communication across the different groups. A) functional B) customer C) geographic D) process
14) ______
15) Melanie has noticed that everyone is very concerned about the line of authority within the hospital. This implies that the employees at the hospital are worried about the ________. A) unity of command B) chain of command C) departmentalization D) span of control
15) ______
16) The line of authority that extends from upper organizational levels to lower levels, clarifying who reports to whom, is known as the ________. A) employee power distance B) chain of command C) unity of command D) span of control
16) ______
17) Bill manages the quality department. His people check parts made by the production departments to assure all specifications are met. Bill is ________. A) a middle manager B) a line manager C) a non-manager D) a staff manager
17) ______
18) ________ refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it. A) Authority B) Bureaucracy C) Responsibility D) Liability
18) ______
19) Wilson is offered a chance to help direct the efforts of some employees assigned to his work group. This is a chance for Wilson to experience ________. A) leadership B) authority C) command D) responsibility
19) ______
20) ________ is the obligation or expectation to perform a duty. A) Authority B) Duty C) Responsibility
20) ______ D) Commitment
21) When Bryan is offered a chance to help direct the efforts of some employees assigned to his work group, he sees this new assignment as a(n) ________. A) increase in his responsibility B) decrease in work specialization C) increase in departmentalization D) decrease in authority
21) ______
22) Which one of Fayol's 14 principles of management states that a person should report to only one
ma nager?
22)
______ A) Division of authority C) Unity of direction
B) Division of work D) Unity of command
23) Paul, the HR manager, works in the Townsville plant and reports to the plant manager there, but he also reports to the corporate HR director in Cityburg. This reporting structure violates the principle of ________. A) unity of purpose B) division of authority C) chain of command D) unity of command
23) ______
24) Willard has been assigned to a project development team in addition to his regular duties as a quality engineer. During this assignment he will report to both the project manager and his quality department manager. This situation ________. A) violates chain of command B) violates the acceptance theory of authority C) violates unity of command D) violates span of control
24) ______
25) According to the traditional view, managers could not-and should not-directly supervise more than ________ subordinates. A) ten or eleven B) fifteen or sixteen C) five or six D) four or five
25) ______
26) The ________ determines the number of levels and managers in an organization. A) delegation of authority B) span of control C) chain of command D) unity of command
26) ______
27) All other things being equal, the wider or larger the span of control, the more ________ an organization is. A) rigid B) cost efficient C) ambitious D) mechanistic
27) ______
28) ________ is the degree to which decision making takes place at upper levels of the organization. A) Decentralization B) Departmentalization C) Centralization D) Formalization
28) ______
29) If top managers make key decisions with little input from below, then the organization is ________. A) less formalized B) less mechanistic C) more centralized D) more decentralized
29) ______
30) The fact that Monica's signature is required on all documents and her word is the last word on all decisions relating to her department suggests that her employer has a(n) ________. A) decentralized structure B) simple structure C) centralized structure D) organic structure
30) ______
31) Which of the following factors calls for a more centralized organizational structure? A) When the environment is complex. B) When the company is geographically dispersed. C) When the organization is facing a crisis. D) When the decisions to be taken are significant.
31) ______
32) After extensive job cuts to reduce costs, upper level managers are spending significant amounts
of
time
solving 32) problems in the producti on units. Lower level manager s are resentful that they cannot make decisions for their own units. What recomme ndation would you make for this firm? A) Centralize; create a department that does nothing but make decisions. B) Reorganize; departmentalize around customers instead of products. C) Formalize; write explicit job descriptions, rules, and procedures so the upper managers won't have to decide each case individually. D) Decentralize; give authority to the lower level managers regarding events in their own units.
___ ___
33) Bob works in a mid-sized organization with other skilled workers who all pitch in to do what needs to be done to satisfy the customer. It is likely Bob works in a ________ organization. A) departmentalized B) decentralized C) cross-functional D) formalized
33) ______
34) Which of the following factors would require a more decentralized organizational structure? A) When the lower-level managers want a voice in decisions. B) When the company is large. C) When the lower-level managers are not capable of making decisions. D) When the decisions to be made are not significant.
34) ______
35) As organizations become more flexible and responsive to environmental trends, there is a distinct shift toward ________ decision making. A) decentralized B) concentrated C) departmentalized D) centralized
35) ______
36) ________ refers to how standardized an organization's jobs are and the extent to which employee behavior is guided by rules and procedures. A) Formalization B) Specialization C) Centralization D) Decentralization
36) ______
37) In highly ________ organizations, there are explicit job descriptions, numerous organizational rules, and clearly defined procedures covering work processes. A) decentralized B) specialized C) departmentalized D) formalized TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 38) Work specialization is also known as division of labor.
37) ______
38) ______
39) Organizational structure is the formal chain of command of jobs within an organization.
39) ______
40) Organizational design is the degree to which standardized procedures are in place in an organization.
40) ______
41) Division of labor refers to the practice of identifying some workers as potential members of a bargaining unit and other workers as members of management.
41) ______
42) Managers today continue to see work specialization as important because it helps employees be more efficient.
42) ______
43) To counteract the diseconomies of division of labor, a company can increase the range of tasks the employee performs.
43) ______
44) Customer departmentalization works well because it emphasizes interdepartmental communication regarding customer's needs.
44) ______
45) The chain of command is a principle that states that a person should report to only one boss.
45) ______
46) All other things unchanged, the narrower the span of control, the more efficient the organization is.
46) ______
47) Given other things unchanged, managers with well-trained and experienced employees can function well with a wider span of control than those with a less talented workforce.
47) ______
48) The more the decision-making power of lower-level employees, the more decentralized the organization is.
48) ______
49) At one end of the spectrum, organizations can be absolutely centralized, while at the other end, they can be completely decentralized.
49) ______
50) Employee empowerment gives employees more authority to make decisions.
50) ______
51) In highly formalized organizations, employees have more discretion in how they do their work.
51) ______
52) Today's organizations mostly rely on strict rules and standardization to guide and regulate employee behavior.
52) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 53) Define the process of organizing and explain how it helps an organization. 54) Write a short essay on work specialization. How does specialization affect productivity? How does it affect a firm's cost structure?
55) What is meant by departmentalization? In a short essay, list and discuss the five common forms of departmentalization, their advantages and disadvantages. 56) In a short essay, explain authority and responsibility. 57) Discuss the differences between line and staff authority. 58) Explain why unity of command is less important today than during the time when the principle was developed. 59) Explain the traditional view of span of control. 60) Explain the contemporary view of span of control. 61) List a few factors that influence the amount of centralization or decentralization in an organization. 62) Explain centralization and decentralization. How do these relate to employee empowerment? MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 63) A(n) ________ organization is highly specialized and rigidly departmentalized. 63) ______ A) mechanistic B) learning C) complex D) organic 64) A(n) ________ organization is highly formalized and centralized. A) learning B) organic C) complex
64) ______ D) mechanistic
65) Which of the following is a characteristic of a mechanistic organization? A) Wide spans of control. B) Free flow of information. C) Clear chain of command. D) Cross-functional teams.
65) ______
66) A(n) ________ organization is highly adaptive, loose, and flexible. A) centralized B) mechanistic C) organic D) customer-oriented
66) ______
67) GlaxoSmithKline would become more ________ if it starts allowing its lab scientists to set the priorities and allocate the resources. A) organic B) profitable C) diversified D) mechanistic
67) ______
68) Which of the following is a characteristic of an organic organization? A) Cross-functional teams. B) Rigid departmentalization. C) High specialization. D) Narrow span of controls.
68) ______
69) Paul Abdul Oil Corporation (PAOC) began as a relatively small oil company. As PAOC has grown, the company has gained a highly trained group of managers and analysts at the corporate headquarters. This group is highly adaptive in its structure. Members of this group do not have standardized jobs, but are empowered to handle diverse job activities and problems. PAOC seems to have a(n) ________ structure. A) mechanistic B) divisional C) organic D) functional
69) ______
70) If a firm wants to become more adaptive and flexible, which of the following organizational structures is it likely to prefer? A) Mechanistic B) Centralized C) Organic D) Formalized
70) ______
71) Many of Custom Leather's employees are experienced artisans. The jobs most of them perform are not highly standardized. They take great pride in their craft and require few formal rules and little direct supervision. These traits are most typical of a(n) ________ organization. A) mechanistic B) formalized C) departmentalized D) organic TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 72) An organic organization strictly adheres to the chain-of-command principle and has a wide span of control.
71) ______
72) ______
73) ______
73) An organic organization is low in centralization. ESSAY. Write your answer in the space provided or on a separate sheet of paper. 74) Explain the concepts of mechanistic and organic structures.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 75) Work teams composed of individuals from various functional specialties are known as ________ 75) ______ teams. A) cross-department B) cross-functional C) cross-training D) cross-control 76) Marcus was asked to represent the cardiac unit as part of a Total Quality Management (TQM) initiative that is aimed at improving the overall quality of care at his hospital. Other departments, such as orthopedics, neurology, oncology, and pediatrics also have representatives on this team. This TQM team is an example of ________. A) process integration B) a multi-cultural team C) a cross-functional team D) an interdepartmental team
76) ______
77) Eric works with a team that includes production workers as well as marketing specialists to design the latest products the company was planning to offer. This implies ________. A) the company is becoming more centralized B) that Eric is a part of a cross-functional team C) that Eric's job responsibilities have been reduced D) the company is becoming more mechanistic
77) ______
78) What are the four contingency variables that an organization's structure depends on? A) Management, technology, equity, and degree of environmental uncertainty. B) Management, funding, technology, and degree of environmental uncertainty. C) Strategy, size, technology, and environmental uncertainty. D) Strategy, size, technology, and equity.
78) ______
79) Large organizations tend to have more ________ than smaller organizations. A) autonomy B) span of control C) specialization D) decentralization
79) ______
80) Large organizations are more ________. A) decentralized B) mechanistic
80) ______ C) organic
D) disorganized
81) Joan Woodward divided firms into three distinct technologies that had increasing levels of complexity and sophistication: unit production, mass production, and ________. A) product production B) process production
81) ______
C) repetitive flow production
D) continuous production
82) ________ is a type of technology that centers on small-batch production. A) Mass production B) Process production C) Flow production D) Unit production
82) ______
83) The building of a bridge would be a type of ________. A) process production B) unit production C) mass production D) flow production
83) ______
84) ________ is a type of technology that centers on large-batch production and requires moderate levels of complexity and sophistication. A) Process production B) Service production C) Unit production D) Mass production
84) ______
85) The type of assembly line typically found in automobile manufacturing is an example of ________. A) continuous production B) process production C) unit production D) mass production
85) ______
86) In Joan Woodward's study of the relationship between technology and structure, the structure that was the most technically complex was ________. A) unit production B) continuous production C) mass production D) process production
86) ______
87) Lacey believes that Joan Woodward's work will be particularly pertinent in considering Custom Leather's organizational structure, since Woodward believed that the effectiveness of the organization was related to the fit between the firm's structure and ________. A) technology B) culture C) operations D) accounting
87) ______
88) A refinery that transforms crude oil into gasoline, kerosene, and diesel fuel would be an example of ________. A) unit production B) process production C) mass production D) continuous production
88) ______
89) According to Woodward's studies, what type of production technology is best suited for a mechanistic structure? A) Product B) Process C) Unit D) Mass
89) ______
90) In stable and simple environments, ________. A) decentralization is necessary C) mechanistic designs are most effective
90) ______ B) organic designs are most effective D) low formalization is necessary
91) Ben operates a farmer's market. Every year he offers the same vegetables to the same customers and faces the same rivalry from other truck farmers. A(n) ________ would best fit Ben's situation. A) organic design B) mechanistic design C) formalized design D) centralized design
91) ______
92) Custom Leather CEO Standish is considering doubling the size of his workforce in conjunction with expanding the number of retail outlets that carry Custom Leather products. He should expect the organization to become ________ as a result of this change. A) less formalized B) more decentralized
92) ______
C) more organic
D) more mechanistic
93) The greater the environmental uncertainty, the more an organization needs to become ________. A) organic B) specialized C) departmentalized D) mechanistic
93) ______
94) Worldwide economic downturn, global competition, accelerated product innovation by competitors, and increased demands from customers for high quality and faster deliveries encourage organizations to become more ________. A) organic B) centralized C) formalized D) mechanistic
94) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 95) Innovators need the efficiency, stability, and tight controls of the mechanistic structure. 96) Once an organization grows past a certain size, the impact of size on organization structure strengthens.
95) ______ 96) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 97) List and discuss the four contingency variables that should be considered while designing an appropriate organizational structure. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 98) What are the different structures that traditional organizations can have? 98) ______ A) Simple, functional, and divisional structures. B) Simple, functional, and corporate structures. C) Functional, strategic, and business unit structures. D) Simple, functional, and business unit structures. 99) A company with low departmentalization, wide spans of control, centralized authority, and little formalization possesses a ________ structure. A) functional B) matrix C) simple D) divisional
99) ______
100) In the beginning, all employees at Tom's Welding performed whatever task was needed. Now the employees have gravitated to specific sets of tasks. Some use only stick welders; some weld only on aluminum. We can infer that as his business has grown, it has become more ________. A) centralized B) specialized C) formal D) organic
100) _____
101) Tom's Welding is in its third year of operation. Tom now has a sales person and several production employees. It is most likely Tom has a ________ structure. A) simple B) divisional C) matrix D) functional
101) _____
102) As the number of employees in an organization grows, structure tends to become more ________. A) informal B) centralized C) relaxed D) specialized
102) _____
103) Which of the following is a strength of simple structures? A) It focuses on results. B) It is inexpensive to maintain. C) Employees are grouped with others who have similar tasks. D) It remains appropriate even as the organization changes as it grows.
103) _____
104) Which of the following is a weakness of the simple structure?
104) _____
A) Pursuit of functional goals causes managers to lose sight of what is best for the overall organization. B) Duplication of activities and resources increases costs and reduces efficiency. C) It relies too much on one person, which is very risky. D) Specialists become insulated and have little understanding of what other units are doing. 105) A ________ is an organizational design that groups similar or related occupational specialties together. A) simple structure B) matrix structure C) functional structure D) divisional structure
105) _____
106) Which of the following traditional organizational designs focuses on results by holding division managers responsible for what happens to their products and services? A) Functional structure. B) Divisional structure. C) Matrix structure. D) Simple structure.
106) _____
107) In which of the following traditional organizational designs does duplication of activities and resources lead to an increase in costs and reduced efficiency? A) Project structure. B) Divisional structure. C) Matrix structure. D) Team structure.
107) _____
108) The ________ is an organizational structure made up of separate business units with each unit having limited autonomy. A) divisional structure B) simple structure C) functional structure D) bureaucratic structure
108) _____
109) In a ________ structure the parent corporation typically acts as an external overseer to coordinate and control the various divisions and provide financial, legal, or other such support services. A) matrix B) functional C) simple D) divisional
109) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 110) A simple structure is characterized by narrow spans of controls and high formalization.
110) _____
111) The strength of the functional structure is that it focuses on results because managers are responsible for what happens to their products and services.
111) _____
112) In divisional structures, the parent corporation typically acts as an external overseer to coordinate and control the various divisions of the organization.
112) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 113) Discuss the three traditional organizational designs and highlight the strengths and weaknesses of each. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 114) A ________ structure is one in which the entire organization is made up of work teams that do 114) _____ the organization's work. A) virtual B) matrix C) project D) team 115) At the Saturn plant in Smyrna, Tennessee, groups of employees used decided how their work would be done, by whom, and with what resources. These groups were given authority to decide who became members and to release any member who did not meet performance standards. Saturn had instituted a(n) ________ structure. A) project B) virtual C) team D) boundaryless
115) _____
116) One characteristic of the matrix structure is that it ________. A) eliminates the chain of command B) does away with work specialization C) violates the principle of unity of command D) is well suited for a mechanistic structure
116) _____
117) In a university setting, it is common for a professor to report to an academic supervisor in his/her area of educational expertise and to a supervisor overseeing a particular degree such as baccalaureate or master's. This illustrates the ________ structure. A) team B) matrix C) boundaryless D) project
117) _____
118) Developing a new automobile requires the services of many types of experts such as design and electronics engineers, procurers, metallurgists—the list is extensive. Rather than employ these individuals directly, the automaker will outsource the work. The specialists then work at facilities owned by the automaker rather than at their own employers' places. This demonstrates a type of ________. A) project structure B) virtual organization C) team structure D) boundaryless organization
118) _____
119) Robert owns a small engineering firm serving customers on three continents. He has only three employees and contracts with freelancers as needed to fulfill his customers' needs. At any given time, he could have 50 or more engineers under contract. Robert operates a ________. A) boundaryless organization B) virtual organization C) freelance agency D) network organization
119) _____
120) ________ is a work arrangement where employees work from home and are linked to work through a computer. A) Computer sharing B) Telecommuting C) Internet linking D) A compressed workweek
120) _____
121) ________ occurs when two or more people split the responsibilities and duties of one position or job. A) Fractional jobbing B) Job sharing C) Job lotting D) Position splitting
121) _____
122) A good example of ________ is Uber's reliance on freelance drivers. A) flex timers B) flextime workers C) contingent workers D) job sharing
122) _____
123) Jill works 40 hours a week but gets to vary her work hours based on other commitments. Jill's job is an example of ________. A) contingent workforce B) part-time work C) job sharing D) flextime scheduling
123) _____
124) DeMarcus surveyed his employees and discovered about 80% of them would prefer to have a longer weekend. Which of these work options might be the most appealing to DeMarcus and his employees? A) Flextime. B) Compressed workweek. C) Job sharing. D) Contingent workforce.
124) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
125) Telecommuting is falling out of favor at some firms because work synergies occur when employees work in the same physical space.
125) _____
126) A virtual organization can exist without a physical office space.
126) _____
127) One significant difference between matrix and project structures is that in a project structure the employees have no formal department to which they return when the project is over.
127) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 128) Compare and contrast the team and project structures.
1) B 2) B 3) A 4) A 5) B 6) D 7) A 8) C 9) D 10) D 11) A 12) D 13) C 14) A 15) B 16) B 17) D 18) A 19) B 20) C 21) A 22) D 23) D 24) C 25) C 26) B 27) B 28) C 29) C 30) C 31) C 32) D 33) B 34) A 35) A 36) A 37) D 38) TRUE 39) FALSE 40) FALSE 41) FALSE 42) TRUE 43) TRUE 44) FALSE 45) FALSE 46) FALSE 47) TRUE 48) TRUE 49) FALSE 50) FALSE 51) FALSE
52) FALSE 53) Organizing is defined as arranging and structuring work to accomplish organizational goals. It is an important process during which managers design an organization's structure. Some of the purposes of organizing are the following. a. It helps in dividing the work to be done into specific jobs and departments. b. It helps in assigning tasks and responsibilities associated with individual jobs. c. It helps in coordinating diverse organizational tasks. d. It helps in clustering jobs into units. e. It helps in establishing relationships among individuals, groups, and departments. f. It helps in establishing formal lines of authority. g. It helps in allocating and deploying organizational resources. 54) Work specialization, also known as division of labor, is the process of dividing work activities into separate job tasks. Individual employees "specialize" in doing part of an activity rather than the entire activity in order to increase work output. It makes efficient use of the diverse skills that workers have. In most organizations, some tasks require highly developed skills; others can be performed by employees with lower skill levels. If all workers were engaged in all the tasks, all would need the skills necessary to perform both the most and the least demanding jobs. Thus, except when performing the most highly skilled or highly sophisticated tasks, employees would be working below their skill levels. In addition, skilled workers are paid more than unskilled workers, and, because wages tend to reflect the highest level of skill, all workers would be paid at highly skilled rates to do easy tasks-an inefficient use of resources. Early proponents of work specialization believed that it could lead to great increases in productivity. At the beginning of the twentieth century, that generalization was reasonable. Because specialization was not widely practiced, its introduction almost always generated higher productivity. But, at some point, the human diseconomies from division of labor-boredom, fatigue, stress, low productivity, poor quality, increased absenteeism, and high turnover-exceed the economic advantages. Today, most managers continue to see work specialization as important because it helps employees be more efficient. However, managers should remember that, at some point, work specialization no longer leads to productivity. Thus, they should plan and organize accordingly. 55) Departmentalization is the basis by which jobs are grouped together. There are five common forms: a. Functional - Jobs are grouped by the functions (i.e., marketing, finance, human resources) performed, leading to increased efficiency because people with similar specialties, common skills, knowledge, and orientations are put together. It also leads to an increased coordination within functional areas. On the flip side, it gives a limited view of the organizational goals. b. Product - Jobs are grouped by product line. This allows the managers to specialize in particular products and services and helps managers to become experts in their industry. On the other hand, it leads to duplication of functions and gives a limited view of organizational goals. c. Geographical - Jobs are grouped on the basis of a geographic region. This helps in more effective and efficient handling of specific regional issues that arise and in serving the needs of unique geographic markets. On the flip side, it leads to duplication of functions. d. Process — Jobs are grouped on the basis of product or customer flow. This approach efficiently manages the flow of work activities. Unfortunately, it can only be used with certain types of products. e. Customer - Jobs are grouped on the basis of specific and unique customers who have common needs, allowing specialists to handle customers' needs and problems. But this also leads to duplication of functions and causes departments to have a limited view of organizational goals. Most large organizations continue to use combinations of most or all of these types of departmentalization. Currently, a popular departmentalization trend is the increasing use of customer departmentalization. Because getting and keeping customers is essential for success, this approach works well because it emphasizes monitoring and responding to changes in customers' needs. 56) Authority was a major concept discussed by the early management writers; they viewed it as the glue that held an organization together. Authority refers to the rights inherent in a managerial position to tell people what to do and to expect them to do it. Managers in the chain of command had authority to do their job of coordinating and
over downward to lower-level managers, giving them certain rights while also prescribing certain limits within which to seein operate. These writers emphasized that authority was related to one's position within an organization and had g the nothing to do with the personal characteristics of an individual manager. work As organizations get larger and more complex, line managers find that they do not have the time, expertise, or of resources to get their jobs done effectively. In response, they create staff authority functions to support, assist, other advise, and generally reduce some of their informational burdens. s. Responsibility - When managers use their authority to assign work to employees, those employees take on an Auth obligation to perform those assigned duties. This obligation or expectation to perform is known as responsibility. ority Assigning work authority without responsibility and accountability can create opportunities for abuse. Likewise, no coul one should be held responsible or accountable for work tasks over which (s)he has no authority to complete those d be tasks. dele Unity of command - The unity of command principle, which is one of Fayol's 14 management principles, states that gate a person should report to only one manager. Without unity of command, conflicting demands from multiple bosses d may create problems. 57) The early management writers also distinguished between two forms of authority: line authority and staff authority. Line authority entitles a manager to direct the work of an employee. It is the employer-employee authority relationship that extends from the top of the organization to the lowest echelon, according to the chain of command. As a link in the chain of command, a manager with line authority has the right to direct the work of employees and to make certain decisions without consulting anyone. In the chain of command, every manager is also subject to the authority or direction of his or her superior. As organizations become larger and more complex, they create staff authority functions to support, assist, advise, and generally reduce some of the burden of line managers. 58) Information technology has made the concept of unity of command less relevant because employees can access in a few seconds information that used to be available only to managers. Employees can communicate with anyone else in the organization without going through the chain of command. Many employees, especially in organizations where work revolves around projects, find themselves reporting to more than one boss. 59) How many employees can a manager efficiently and effectively manage? That is what span of control is all about. The traditional view was that managers could not-and should not-directly supervise more than five or six subordinates. Determining the span of control is important because to a large degree, it determines the number of levels and managers in an organization-an important consideration in how efficient an organization will be. All other things being equal, the wider or larger the span, the more efficient an organization is. 60) The contemporary view of span of control recognizes that there is no magic number of people for a manager to supervise. Many factors influence the number of employees that a manager can efficiently and effectively manage. These factors include the skills and abilities of the manager and the employees, and the characteristics of the work being done. For instance, managers with well-trained and experienced employees can function well with a wider span. Other contingency variables that determine the appropriate span include similarity and complexity of employee tasks, the physical proximity of subordinates, the degree to which standardized procedures are in place, the sophistication of the organization's information system, the strength of the organization's culture, and the preferred style of the manager. The trend in recent years has been toward larger spans of control, which is consistent with managers' efforts to speed up decision making, increase flexibility, get closer to customers, empower employees, and reduce costs. Managers are beginning to recognize that they can handle a wider span when employees know their jobs well and when those employees understand organizational processes. 61) An organization requires more centralization if the: a. Environment is stable. b. Lower-level managers are not as capable or experienced at making decisions as upper-level managers. c. Lower-level managers do not want to have a say in decisions. d. Decisions to be taken are relatively minor. e. Organization is facing a crisis or the risk of company failure. f. Company is large. g. Effective implementation of company strategies depends on managers' retaining a say over what happens. An organization requires more decentralization if the: a. Environment is complex and uncertain.
b. capable and experienced at making decisions. Low c. Lower-level managers want a voice in decisions. er-le d. Decisions to be made are relatively significant. vel e. Corporate culture is open to allowing managers to have a say in what happens. man f. Company is geographically dispersed. agers g. Effective implementation of company strategies depends on managers having involvement and flexibility to are make decisions. 62) Centralization is the degree to which decision making takes place at upper levels of the organization. If top managers make key decisions with little input from below, then the organization is more centralized. On the other hand, the more that lower-level employees provide input or actually make decisions, the more decentralization there is. Centralization-decentralization is not an either-or concept. The decision is relative, not absolute-that is, an organization is never completely centralized or decentralized. The goal is the optimum and efficient use of employees. Traditional organizations were structured in a pyramid, with power and authority concentrated near the top of the organization. But organizations today have become more complex and responsive to dynamic changes in their environments. As such, many managers believe that decisions need to be made by those individuals closest to the problems, regardless of their organizational level. In fact, the trend over the past several decades-at least in U.S. and Canadian organizations-has been a movement toward more decentralization in organizations. Today, managers often choose the amount of centralization or decentralization that will allow them to best implement their decisions and achieve organizational goals. What works in one organization, however, won't necessarily work in another, so managers must determine the appropriate amount of decentralization for each organization and work units within it. As organizations have become more flexible and responsive to environmental trends, there has been a distinct shift toward decentralized decision making. This trend, also known as employee empowerment, gives employees more authority (power) to make decisions. In large companies especially, lower-level managers are "closer to the action" and typically have more detailed knowledge about problems and how best to solve them than do top managers. 63) A 64) D 65) C 66) C 67) A 68) A 69) C 70) C 71) D 72) FALSE 73) TRUE 74) The mechanistic organization (or bureaucracy) was the natural result of combining work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization. Adhering to the chain-of-command principle ensured the existence of a formal hierarchy of authority, with each person controlled and supervised by one superior. Keeping the span of control small at increasingly higher levels in the organization created tall, impersonal structures. As the distance between the top and the bottom of the organization expanded, top management would increasingly impose rules and regulations. Because top managers could not control lower-level activities through direct observation and ensure the use of standard practices, they substituted rules and regulations. The belief in a high degree of work specialization created jobs that were simple, routine, and standardized. Further specialization through the use of departmentalization increased impersonality and the need for multiple layers of management to coordinate the specialized departments. This created a mechanistic organization with high specialization, rigid departmentalization, a clear chain of command, narrow spans of control, centralization, and high formalization. The organic organization is a highly adaptive form that is as loose and flexible as the mechanistic organization is rigid and stable. The organic organization's loose structure allows it to change rapidly as required. It has division of labor, but the jobs people do are not standardized. Employees tend to be professionals who are technically
profi ed to handle diverse problems. They need few formal rules and little direct supervision because their training has cient instilled in them standards of professional conduct. Thus, an organic organization has cross-functional teams, and cross-hierarchical teams, free flow of information, wide spans of control, decentralization, and low formalization. train 75) B 76) C 77) B 78) C 79) C 80) B 81) B 82) D 83) B 84) D 85) D 86) D 87) A 88) B 89) D 90) C 91) B 92) D 93) A 94) A 95) FALSE 96) FALSE 97) a. Strategy and structure - An organization's structure should facilitate the achievement of goals. Since goals are influenced by the organization's strategies, it is logical that strategy and structure should be closely linked. The flexibility and free-flowing information of the organic structure works well when an organization is pursuing meaningful and unique innovations. The mechanistic organization with its efficiency, stability, and tight controls works best for companies wanting to tightly control costs. b. Size and structure - There is considerable evidence that an organization's size significantly affects its structure. Large organizations-typically considered to be those with 2,000 employees-tend to have more specialization, departmentalization, centralization, and rules and regulations than do small organizations. However, once an organization grows past a certain size, size has less influence on structure. c. Technology and structure - Every organization uses some form of technology to convert its inputs into outputs. The processes or methods that transform an organization's inputs into outputs differ by their degree of routineness. In general, organizations adapt their structures to their technology depending on how routine their technology is for transforming inputs into outputs. In general, the more routine the technology, the more mechanistic the structure can be, and organizations with more non-routine technology are more likely to have organic structures. d. Environmental uncertainty and structure - Some organizations face stable and simple environments with little uncertainty; others face dynamic and complex environments with a lot of uncertainty. Managers try to minimize environmental uncertainty by adjusting the organization's structure. In stable and simple environments, mechanistic designs can be more effective. On the other hand, the greater the uncertainty, the more an organization needs the flexibility of an organic design. 98) A 99) C 100) B 101) A 102) D 103) B 104) C
105) C 106) B 107) B 108) A 109) D 110) FALSE 111) FALSE 112) TRUE 113) The three traditional organizational designs are: the simple structure, functional structure, and divisional structure. These structures tend to be more mechanistic in nature. a. Simple structure displays low departmentalization, wide spans of control, authority centralized in a single person, and little formalization. These structures are fast, flexible, and inexpensive to maintain. However, these structures are not appropriate when the organization starts growing and the reliance on one person is risky. As employees are added, the structure tends to become more specialized and formalized. Rules and regulations are introduced, work becomes specialized, departments are created, levels of management are added, and the organization becomes increasingly bureaucratic. At this point managers might choose a functional or divisional structure. b. A functional structure groups similar or related occupational specialties together. This structure enjoys cost-saving advantages from specialization. However, the constant pursuit of functional goals can cause managers to lose sight of what is best for the overall organization. Moreover, the functional specialists become insulated and have little understanding of what other units are doing. c. The divisional structure is made up of separate business units or divisions with limited autonomy, with a division manager who has authority over his or her unit and is responsible for performance. In divisional structures the parent corporation typically acts as an external overseer to coordinate and control the various divisions, and often provides support services such as financial and legal. The major strength of this structure is that it focuses on results by holding division managers responsible for what happens to their products and services. But the duplication of activities and resources encountered in such structures increases the cost and reduces the efficiency of the organization. 114) D 115) C 116) C 117) B 118) D 119) B 120) B 121) B 122) A 123) D 124) B 125) TRUE 126) TRUE 127) TRUE 128) A team structure is one in which the entire organization is made up of work teams that do the organization's work. Employee empowerment is crucial because no line of managerial authority flows from top to bottom. Employee teams design and do work in the way they think best, but teams are held responsible for all work performance results in their respective areas. In large organizations, the team structure complements what is typically a functional or divisional structure and allows the organization to have the efficiency of a bureaucracy and the flexibility that teams provide. The type of work performed by teams remains fairly constant for the life of the team, as in a mass production setting. In a project structure, employees continually work on projects. When the current project is finished, project members move on to other teams and other projects because there are no formal departments for them to return to. Employees join project teams because they bring needed skills and abilities to that project. Project structures tend to
be They eliminate or minimize organizational obstacles and ensure that teams have the resources they need to more effectively and efficiently complete their work. flexi ble orga nizat ional desig ns, with out the depa rtme ntali zatio n or rigid orga nizat ional hiera rchy that can slow dow n maki ng decis ions or takin g actio n. In this struc ture, man agers serve as facili tator s, ment ors, and coac hes.
Exam Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The Human Capital Index concluded that people-oriented HRM ________. 1) _______ A) is only effective in developed countries B) is only effective in developing nations C) results in superior shareholder value D) results in higher labor costs 2) Good organization HRM strategies include treating employees as ________. A) replaceable with automation B) partners C) costs that should be minimized D) a renewable resource
2) _______
3) One recent study shows that over two-thirds of CEOs believe that human capital ________. A) will eventually become obsolete B) is the key source of sustained economic value C) is becoming more litigious D) will continue to increase the organization's costs
3) _______
4) Research shows that firms listed in Fortune's list of 100 Best Companies to Work For ________. A) have much higher labor costs than their peers B) show very little difference in performance over time C) earned shareholder returns that were only slightly below the market average D) earned shareholder returns that significantly beat the S&P 500 over a 10-year period.
4) _______
5) ________ firms have human resource departments. A) Almost all B) Only small C) All
5) _______ D) A minority of
6) The first three activities of the human resource management process involve ________. A) retaining competent and high-performing employees B) providing employees with flexible job assignments C) providing employees with up-to-date knowledge and skills D) identifying and selecting competent employees
6) _______
7) The final three activities of the human resource management process ensure ________. A) the best compensation packages for the new hires B) that the organization selects and trains competent employees C) that employees are continuously provided with up-to-date knowledge and skills D) that the organization retains competent and high-performing employees
7) _______
8) Which of the following steps in the human resource management process identifies and selects competent employees? A) Orientation and training B) Planning and performance management C) Compensation and benefits D) Human resource planning and recruitment
8) _______
9) Which of the following steps in human resource management helps retain competent and high-performing employees? A) Orientation B) Training C) Selecting D) Performance management
9) _______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 10) The majority of firms do not have human resource departments.
10) ______
11) HRM is becoming less important as more and more jobs are automated.
11) ______
12) In small firms HR activities tend to be undertaken by line managers.
12) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 13) Discuss three reasons managing human resources effectively is important. 14) Explain why human resource management (HRM) is important to organizational success. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 15) During an economic recession, ________. 15) ______ A) more qualified candidates are available to fill fewer open positions B) human resources managers find it more difficult to replace employees C) candidates expect better benefits and pensions D) candidates face less competition for open positions 16) Which one of the following would be considered a factor most directly influencing the human resource process? A) Changes in consumer preferences B) Offshoring of jobs C) The economy D) Changes in technology
16) ______
17) Labor unions use ________ to protect the rights of their members. A) work stops B) labor disputes C) commercial arbitration D) collective bargaining
17) ______
18) Which one of the following Acts prohibits discrimination on the basis of physical or mental disabilities? A) Civil Rights Act, Title VII B) Occupational Safety and Health Act C) Equal Pay Act D) Vocational Rehabilitation Act
18) ______
19) Which one of the following Acts gives employees the legal right to examine personnel files and letters of reference? A) Privacy Act B) Civil Rights Act, Title VII C) Consolidated Omnibus Reconciliation Act D) Worker Adjustment and Retraining Notification Act
19) ______
20) Which of the following Acts requires continued health coverage following termination of an employee? A) Family and Medical Leave Act B) Occupational Safety and Health Act C) Health Insurance Portability and Accountability Act D) Consolidated Omnibus Budget Reconciliation Act
20) ______
21) When Fletcher lost his job as a result of a downsizing, his health coverage was discontinued even though he was willing to pay for it. Which of the following Acts can Fletcher cite in his efforts to have his health coverage benefits restored? A) Occupational Safety and Health Act (OSHA) B) Health Insurance Portability and Accountability Act (HIPAA)
21) ______
C) Consolidated Omnibus Budget Reconciliation Act (COBRA) D) Patient Protection and Affordable Care Act 22) The essence of affirmative action is to ________. A) provide experiential exercises and on-the-job coaching for employees B) provide positive reinforcements to encourage desirable behavior C) prevent employees from behaving unethically D) prevent discrimination and enhance the status of members from protected groups
22) ______
23) Which one of the following is true of the government legislations related to human resource management in different countries? A) Unlike the rest of Europe, legislation in Germany does not require companies to practice representative participation. B) Under Mexican law, managers must review new employees' performance after 60 days. C) Australian anti-discrimination laws were passed before those in the United States. D) Canadian laws allow discrimination on the basis of language in all parts of the country except Quebec.
23) ______
24) The Mexican Federal Labor Law includes controls on ________. A) the hiring of candidates who are not citizens of Mexico B) punitive damages payable to victims of discrimination C) the minimum wage that workers must receive D) the amount, type, and timing of performance-based wage increases
24) ______
25) In Germany and most of western Europe, the two most common forms of representative participation are ________. A) task forces and cross-functional teams B) board representatives and cross-functional teams C) work councils and board representatives D) work councils and cross-functional teams
25) ______
26) In Germany, ________ are groups of nominated or elected employees who must be consulted when management makes decisions involving personnel. A) work councils B) labor unions C) advisory boards D) board representatives
26) ______
27) Helmut works for an optical engineering company in Germany. He is one of several employees that management must consult when it is considering a major layoff. Helmut is a member of ________. A) a bargaining committee B) a work council C) an employee council D) a labor union
27) ______
28) Which of the following is a trend that will affect HRM practices in the future? A) Working women will represent a shrinking segment of the workforce. B) Hispanics are the fastest-growing segment of the workforce. C) Baby boomers will represent the largest segment of the workforce. D) Asians will represent 24% of the workforce.
28) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 29) A labor union is an organization that represents workers and seeks to protect their interests. 30) In the United States, labor unions represent the most significant environmental constraint.
29) ______ 30) ______
31) The trend in unionization in the United States is a decline in the private sector and an increase in the public sector.
31) ______
32) Affirmative action programs help ensure that decisions and practices enhance the employment, upgrading, and retention of members from protected groups such as minorities and females.
32) ______
33) The Civil Rights Act, Title VII, prohibits discrimination of employees who are above 40 years of age.
33) ______
34) The Affordable Care Act requires employers to provide health insurance coverage to employees.
34) ______
35) The Great Recession of 2008 had little impact on the labor force because union membership protected people from being fired.
35) ______
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 36) The first phase of the human resource management process involves ________. 36) ______ A) human resource planning, recruitment and decruitment, and selection B) human resource planning, selection, and performance management C) human resource planning, recruitment and decruitment, and orientation D) human resource planning, compensation, and benefits 37) The process by which managers ensure that they have the right number and kinds of capable people in the right places and at the right times is known as ________. A) performance management B) performance planning C) human capital management D) human resource planning
37) ______
38) Managers begin human resource planning by ________. A) inventorying current employees B) forecasting sales C) job analysis D) locating capable applicants
38) ______
39) An assessment that defines jobs and the behaviors necessary to perform them is known as a ________. A) job description B) job preview C) job analysis D) job specification
39) ______
40) Roberta has been asked to complete a questionnaire about her job duties and the qualifications she believes a candidate for her position should have. Roberta is participating in a ________. A) job analysis B) employee survey C) job review D) position evaluation
40) ______
41) A written statement that explains the job content, environment, and conditions of employment is called a ________. A) job specification B) job description C) job preview D) job manual
41) ______
42) A ________ states the minimum qualifications that a person must possess to successfully perform a given job. A) job description B) job analysis C) job specification D) job preview
42) ______
43) Samantha, a human resources manager, wants to let potential candidates know about the
min imum
qualificat 43) ions that they should possess in order to successfu lly perform the jobs they have applied for. What should she do? A) She should create a job description. B) She should perform a job satisfaction survey. C) She should create a job specification. D) She should perform a job analysis.
___ ___
44) Recruitment is the process of ________. A) locating, identifying, and attracting capable applicants B) moving employees laterally to reduce intra-organizational supply-demand imbalances C) screening job applicants to determine who is the best D) selecting candidates to fill open positions
44) ______
45) ________ as a source of recruitment is limited to entry-level positions. A) College recruiting B) Professional recruiting organizations C) The Internet D) Employee referrals
45) ______
46) Gareth is in charge of recruiting at Eowin Systems, and is expected to enhance the diversity of the workforce. Which of the following recruiting sources should Gareth avoid if he is to achieve the stated aim of a more diverse workforce? A) College recruiting B) Company Web site C) Professional recruiting organizations D) Employee referrals
46) ______
47) A disadvantage of using professional recruiting organizations is ________. A) that they generate many unqualified candidates B) that they can only be used for entry-level positions C) that they do not increase the diversity and mix of employees D) their limited commitment to specific companies
47) ______
48) If human resource planning shows a surplus of employees, management can reduce the organization's workforce through ________. A) decruitment B) increased workweeks C) recruitment D) reduced job sharing
48) ______
49) ________ are a temporary involuntary termination that can last from a few weeks to several years. A) Retirements B) Attritions C) Layoffs D) Discharges
49) ______
50) In which one of the following decruitment methods does an organization refrain from filling the openings created by voluntary resignations or normal retirements of its employees? A) Attrition B) Layoffs C) Transfers D) Firing
50) ______
51) In her next meeting with the senior management, Jane suggests that they should ignore the openings created by voluntary resignations and not hire any more people now. This would avoid much of the pain associated with workforce reduction in future. This implies that Jane favors ________. A) attrition B) layoffs C) reduced workweeks D) transfers
51) ______
52) Joan needs to eliminate some employees for a short while. She and her managers identify those employees who are not meeting performance expectations and explain that this termination is temporary but they are encouraged to seek other positions elsewhere. How is Jane trying to reduce the size of the workforce here? A) Early retirements B) Reduced workweeks C) Firing D) Layoffs
52) ______
53) If Victoria asks some employees to share jobs or perform their jobs on a part-time basis, she would be ________. A) firing employees B) reducing the workweeks C) encouraging layoffs D) encouraging early retirements
53) ______
54) ________ involves predicting which applicants will be successful if hired. A) Selection B) Recruitment C) Decruitment
54) ______ D) Orientation
55) Errors made by eliminating candidates who would have performed successfully on the job are known as ________. A) reject errors B) accept errors C) admission errors D) omission errors
55) ______
56) Elizabeth was hired as a customer care executive by a telecommunications provider during a period when they were extremely short-staffed. Her employers soon realized that she was impatient, easily irritated, and lacked motivation. They even began to receive complaints about her behavior from angry customers. In hiring Elizabeth, her employers were guilty of a(n) ________. A) accept error B) reject error C) omission error D) admission error
56) ______
57) Terrence worked closely with the new hire, showing him repeatedly how to do the job, pairing him with a job coach, sending him to classes, etc., but it wasn't enough. In addition to the costs of this training, what other costs are involved in this situation? A) Loss of reputation B) Discharge costs C) Lost profits from the employee's incompetence D) Reject error costs
57) ______
58) A ________ selection device is characterized by a proven relationship between the selection device and some relevant job selection criterion. A) reliable B) objective C) subjective D) valid
58) ______
59) All candidates for entry level engineering positions are given the mechanical aptitude test. Those who scored well and were hired later earned high scores on their performance evaluations. Those who scored less well and were hired earned lower scores on performance evaluations. This indicates that the test is ________. A) unreliable B) invalid C) valid D) reliable
59) ______
60) A ________ selection device indicates that the device measures the same thing consistently. A) potent B) reliable C) subjective D) valid
60) ______
61) When Beverly administers the math test to accounting clerk candidates, the average score is 65%. But when Carol administers the same test, the score average is 83%. What does this indicate about the test? A) The test is reliable B) The test is valid. C) The test is unreliable. D) The test is poorly constructed.
61) ______
62) One source for applicant background information that is increasing in popularity is ________. A) phone calls to friends B) social media C) letters of reference D) personality tests
62) ______
63) Application forms ________. A) include personality and interest forms C) are not used for managerial positions
63) ______ B) use actual job behaviors D) are most useful for gathering information
64) Tim is a candidate for an automotive mechanic's position. He is asked to deconstruct and reconstruct part of an engine motor to demonstrate his skill. This is an example of a(n) ________. A) psychometric test B) intelligence test C) performance-simulation test D) aptitude test
64) ______
65) Assessment centers are best used to select ________. A) semiskilled workers B) unskilled workers C) employees for entry-level positions D) individuals for management positions
65) ______
66) Which one of the following is true of written tests as a selection tool? A) They are relatively good predictors for supervisory positions. B) They are not very popular anymore. C) They are almost universally used. D) They cannot predict job performance.
66) ______
67) A ________ includes both positive and negative aspects about the job and the company. A) job analysis B) behavioral preview C) structured interview D) realistic job preview
67) ______
68) Turnover is high among new hires at Stewart's company. At one exit interview, Stewart asked the departing new hire why she was leaving so soon. Which one of the following statements is the most likely response? A) The company has a strong labor union so the majority of the decisions are dictated by collective bargaining. B) There is a recession in the economy that has severely affected employment levels across the country. C) The company does not have good decruitment policies in place. D) The higher level employees repeatedly overemphasize the company's positive points while
68) ______
interviewing
candidates.
69) Larry is in charge of recruitment for entry-level positions at Merlin Infosystems. He believes that job interviews should include a realistic job preview. Which one of the following is Larry likely to do during job interviews? A) Promise a vibrant, fun work culture at the office. B) Tell the employee about possible overtime. C) Over-embellish the growth opportunities for employees. D) Emphasize the positive points, including the flexible nature of work. TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 70) Future HR needs are determined by the organization's current level of production and the popularity of its products.
69) ______
70) ______
71) Title VII of the Civil Rights Act requires that employment tests be job-related and consistent with business necessity.
71) ______
72) Human resource planning entails two steps: assessing current human resources and meeting future human resource needs.
72) ______
73) Job descriptions focus on the job, while job specifications focus on the person.
73) ______
74) Recruitment is defined as the process of screening job applicants to determine who is best qualified for the job.
74) ______
75) One disadvantage of employee referrals as a source of job candidates is that it generates unqualified candidates.
75) ______
76) There are essentially two ways of controlling labor supply through decruitment: firing and early retirements.
76) ______
77) The burden is on managers to prove that the selection devices they use are a valid predictor of job performance.
77) ______
78) Giving negative information about the organization to prospective candidates is not a good idea because it puts the company in a bad light.
78) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 79) Discuss the two purposes of human resource planning. 80) What is recruitment? What are the commonly used recruitment sources? 81) Define decruitment and discuss the various decruitment options. 82) In a short essay, define selection and list some of the selection tools used by managers. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 83) ________ is the process of introducing a new employee to his/her job and the organization. 83) ______ A) Selection B) Staffing C) Communicating D) Orientation 84) The two types of orientations are ________.
84) ______
A) job orientation and procedural orientation B) organization orientation and group orientation C) work unit orientation and group orientation D) work unit orientation and organization orientation 85) Which one of the following is a type of general training provided by organizations? A) Basic life-work skills B) Managing change C) Customer education D) Customer service
85) ______
86) Successful orientation results in which one of the following outcomes? A) Reduced first-year turnover B) Insider-outsider transition C) More premature resignations D) Fewer discrimination lawsuits
86) ______
87) Which one of the following is a type of specific training provided by organizations? A) Communication skills B) Team building skills C) Supervisory skills D) Technological skills
87) ______
88) In which one of the following traditional training methods are employees made to work at different jobs in a particular area in order to get exposure to a variety of tasks? A) Coaching B) Training by job rotation C) On-the-job training D) Mentoring
88) ______
89) In which one of the following traditional training methods do employees work with an experienced worker who provides information, support, and encouragement? A) Mentoring and coaching B) On-the-job training C) Job rotation D) Experiential exercises
89) ______
90) Which one of the following training methods involves employees participating in role playing, simulations, or other face-to-face types of training? A) Mentoring and coaching B) On-the-job training C) Experiential exercises D) Job rotation
90) ______
91) ________ is an Internet-based learning where employees participate in multimedia simulations or other interactive modules. A) Podcasts B) E-learning C) Videoconferencing D) Mobile learning
91) ______
92) Which of the following is a technology-based training method? A) Workbooks/manuals B) Videoconferencing/teleconferencing C) Classroom lectures D) Experiential exercises
92) ______
93) Each day Ted's smartphone receives a training video about another aspect of his job. Ted can access these at his leisure and is required to take a quiz to confirm he has watched them. This system of delivering training content is called ________. A) experiential exercises B) e-learning C) videoconferencing D) mobile learning
93) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 94) A new employee goes through two types of orientation: work unit orientation and procedural orientation. 95) Job rotation allows employees to work at different jobs in a particular area, thereby giving them
94) ______
exp osure
to a 95) variety of tasks.
___ ___
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 96) What is orientation? Discuss the two types of orientation. 97) Discuss the various traditional and technology-based training methods that managers use to improve employee skill sets. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 98) Which of the following methods of performance appraisal allows the evaluator to focus on vital 98) ______ behaviors that separate effective work performance from ineffective work performance? A) Written essay B) Critical incident C) Graphic rating scale D) Behaviorally anchored rating scale 99) The ________ method of performance appraisal allows the evaluator to rate employees on an incremental scale. A) management by objective B) multiperson comparison C) graphic rating scale D) behaviorally anchored rating scale
99) ______
100) The top management of the company asks Earl to make use of a rating scale that will rate the employees' actual job behaviors. The managers are asking Steve to use a ________. A) behaviorally anchored rating scale B) management by objective method C) graphic rating scale D) 360-degree feedback
100) _____
101) Which one of the following performance appraisal methods is a combination of elements from the critical incident method and the graphic rating scale method? A) 360-degree appraisal B) Management by objective C) Multiperson comparison D) Behaviorally anchored rating scale
101) _____
102) A ________ is a method of performance appraisal by which each employee is rated in comparison to other employees in his work group. A) multiperson comparison B) behaviorally anchored rating scale C) graphic rating scale D) critical incident
102) _____
103) In his report, Wade described the strengths and weaknesses of each of his subordinates. He made a note of their past performances and the potential they displayed. He even provided suggestions for their improvements. Wade is using the ________ method of conducting a performance appraisal. A) behaviorally anchored rating scale B) graphic rating scale C) multiperson comparison D) written essay
103) _____
104) Wayne hosts his first regional sales meeting during which he meets individually with his employees and shows them a chart of their sales numbers for each month compared to their budgeted quota for the year to date. Additionally, Wayne and each employee set mutually agreed-upon budget goals for the remaining six months of the fiscal year. Wade is utilizing the ________ method of performance appraisal. A) critical incident B) MBO C) multiperson comparison D) BARS
104) _____
105) The ________ method utilizes feedback from supervisors, employees, and coworkers.
105) _____
A) critical incident C) 360-degree appraisal
B) graphic rating scale D) multiperson comparison
106) A ________ system rewards employees for the job competencies they demonstrate. A) performance-based pay B) variable pay C) piece-rate pay D) skill-based pay
106) _____
107) Steve recommends that employees should be compensated according to their competencies, rather than their designations. Employees should be financially rewarded when they gain more knowledge and learn new processes that are relevant to the job, even if the employee is at a lower level. This implies that Steve favors a ________. A) profit-based pay system B) skill-based pay system C) fixed pay system D) variable pay system
107) _____
108) After 75 years in business, ABC Corp. has decided it is time to overhaul its compensation system. What advice would you offer its HR manager? A) Focus on benefits rather than wages or salaries. B) Make it more flexible and reduce the number of pay levels. C) Pay everyone in the same pay grade the same wage regardless of seniority. D) Make pay a function of the amount of education the employee has.
108) _____
109) Which of the following is most likely to be included in family-friendly benefits provided by organizations? A) Retirement benefits B) Time off for school functions C) Insurance programs D) Savings accounts
109) _____
110) People who prefer segmentation are more likely to be satisfied and committed to their jobs when offered options such as ________. A) company-sponsored family picnics B) gym facilities C) job sharing D) on-site child care
110) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 111) Written essay and critical incident are performance appraisal methods. 112) Variable pay systems reward employees for the job skills and competencies they can demonstrate.
111) _____ 112) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 113) List four of the seven major performance appraisal methods. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 114) Organizations are helping employees keep their skills current by ________. 114) _____ A) forced training B) supporting lifetime learning C) bringing in motivational speakers D) rotating them through different plants 115) Many firms are expanding ________ as a way to assess a potential employee's abilities. A) skill set testing B) job shadowing C) internship programs D) complex interviews TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 116) The general trend in most organizations is to leave career development up to the individual employee.
115) _____
116) _____
117) Internships are one way that a firm can evaluate a prospective employee's potential.
117) _____
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 118) Because Quentin is the only male worker in a group of women, other male employees have 118) _____ made jokes about his gender identity. The jokes have affected Quentin's motivation to work and he is absent more often. This situation may constitute ________. A) protected free speech B) hostile environment sexual harassment C) unwelcome sexual advances D) normal workplace activity 119) Any unwanted action or activity of a sexual nature that can impact a person's employment, performance or work environment is considered ________. A) workplace bullying B) sexual harassment C) hostile activity D) verbal harassment
119) _____
120) When someone experiences negative behaviors that repeatedly occur and result in mental or physical harm it is considered ________. A) workplace bullying B) a rite of passage C) hazing D) sexual harassment
120) _____
121) Which of these actions could be considered workplace bullying? A) Ignoring someone's opinions. B) Repeatedly asking someone on a date. C) Terminating an employee for cause. D) Giving someone a poor job performance report.
121) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 122) Sexual harassment rarely occurs in countries other than the United States.
122) _____
123) Sexual harassment cases can be costly and they also undermine workers' ability to do their jobs.
123) _____
124) Sexual harassment complaints have been filed at almost all Fortune 500 companies.
124) _____
125) Companies can legally take disciplinary action against an employee who complains of a hostile work environment.
125) _____
126) Workplace bullying rarely occurs and is on the decline.
126) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 127) List the seven elements of an effective program that can help an organization protect itself against sexual harassment claims.
1) C 2) B 3) B 4) D 5) D 6) D 7) D 8) D 9) D 10) TRUE 11) FALSE 12) TRUE 13) a. Studies have concluded effective human resource management can be a significant source of competitive advantage. People-oriented HR gives an organization an edge in creating superior shareholder value. Human capital is the key source of sustained economic value. b. HRM is an important part of organizational strategies. The HR function is no longer considered only an administrative or support function; it enables the business strategy. c. The way the organization treats its people has been found to significantly impact organizational performance. Improving work practices could increase market share by as much as 30 percent. High-performance work practices increase an organization's ability to efficiently adapt to changing and challenging markets. 14) HRM is an important task that involves having the right number of the right people in the right place at the right time. A major HRM challenge for managers is ensuring that their company has a high-quality workforce. Getting and keeping competent and talented employees is critical to the success of every organization. HRM is important for three main reasons. First, various studies have concluded that an organization's human resources can be a significant source of competitive advantage. The Human Capital Index, a comprehensive study of over 2,000 global firms has concluded that people-oriented HR gives an organization an edge by creating superior shareholder value. Second, HRM is an important part of organizational strategies. In order to achieve competitive success through people, managers must change the way they think about their employees and also the way they view the work relationship. Managers must stop treating people as costs to be minimized or avoided. Rather, they should treat them as partners. Finally, it has been found that the way organizations treat their people significantly impacts the organizational performance. For instance, one study reported that significantly improving an organization's HRM practices could increase its market value by as much as 30 percent. 15) A 16) C 17) D 18) D 19) A 20) D 21) C 22) D 23) D 24) C 25) C 26) A 27) B 28) C 29) TRUE 30) FALSE
31) TRUE 32) TRUE 33) FALSE 34) TRUE 35) FALSE 36) A 37) D 38) A 39) C 40) A 41) B 42) C 43) C 44) A 45) A 46) D 47) D 48) A 49) C 50) A 51) A 52) D 53) B 54) A 55) A 56) A 57) C 58) D 59) C 60) B 61) C 62) B 63) D 64) C 65) D 66) A 67) D 68) D 69) B 70) FALSE 71) TRUE 72) TRUE 73) TRUE 74) FALSE 75) FALSE 76) FALSE 77) TRUE 78) FALSE 79) Human resource (HR) planning is the process by which managers ensure that they have the right number and kinds of capable people in the right places and at the right times. This allows the organization to avoid sudden people shortages and surpluses. The process of HR planning entails two steps: (1) assessing current human resources, and (2) meeting future HR needs.
Curr ying current employees. This inventory usually includes information on employees such as name, education, ent training, prior employment, languages spoken, special capabilities, and specialized skills. Asse Job analysis is an important part of current assessment. Job analysis is an assessment that defines a job and the ssme behaviors necessary to perform it. Information for a job analysis is gathered by directly observing individuals on nt - the job, interviewing employees individually or in a group, having employees complete a questionnaire or record Man daily activities in a diary, or having experts identify a job's specific characteristics. agers Using the information from job analysis, managers develop or revise job descriptions and job specifications. A job begi description is a written statement describing a job, job content, environment, and conditions of employment. A job n the specification states the minimum qualifications that a person must possess to successfully perform a given job. It HR identifies the knowledge, skills, and attitudes needed to do the job effectively. Both the job description and job plan specification are important documents when managers begin recruiting and selecting. ning Meeting future HR needs - Future HR needs are determined by the organization's mission, goals, and strategies. by Demand for employees also results from demand for the organization's products or services. inve Assessing current capabilities and future needs allow managers to estimate the areas in which the organization will ntor be understaffed or overstaffed. 80) Recruitment is the process of locating, identifying, and attracting capable applicants. Commonly used recruitment sources are: a. The Internet - This reaches a large number of people and can get immediate feedback. But, it also generates many unqualified candidates. b. Employee referrals - The knowledge about the organization is provided by the current employees. This can generate strong candidates because a good referral reflects on the recommender. But, this may not increase the diversity and mix of employees in the organization. c. The company Web site - This has a wide distribution. It can be targeted to specific groups. But on the flip side, it also generates many unqualified candidates. d. College recruiting - This allows access to a large centralized body of candidates. But, this source can be only used for filling entry-level positions in the organization. e. Professional recruiting organizations - They have a good knowledge of industry challenges and requirements. But, on the negative side, they have very little commitment to specific organizations. 81) Decruitment is the process by which an organization reduces its workforce. The various decruitment options available to an organization are: a. Firing - This refers to permanent involuntary termination of employees. b. Layoffs - These refer to temporary involuntary termination of employees. Layoffs may last only for a few days or extend up to years. c. Attrition - This is achieved when an organization does not fill the openings created by voluntary resignations or normal retirements of its employees. d. Transfers - This happens when employees are moved either laterally or downward. This usually does not reduce costs but, it can reduce intra-organizational supply-demand imbalances. e. Reduced workweeks - This is achieved by having employees work fewer hours per week, share jobs, or perform their jobs on a part-time basis. f. Early retirements - Here, the organization provides incentives to older and more senior employees for retiring before their normal retirement date. g. Job sharing - This is achieved by having employees share one full-time position. 82) Selection is the process of screening job applicants to determine who is best qualified for the job in question. It involves predicting which applicants will be successful if hired. A manager may use any of the following selection tools: a. Application Forms - These are almost universally used. These are most useful for gathering information and can help predict job performance. But, it is difficult to create an application form that can give all the required information. b. Written Tests - The manager has to see to it that the tests are job related. The tests include intelligence, aptitude, ability, personality, and interest tests. These tests are popular. They are also a relatively good predictor for supervisory positions. c. Performance-Simulation Tests - These kind of tests use actual job behaviors. Work sampling is a type of
perfo the applicants on tasks associated with the job. Work sampling is appropriate for selecting people for routine or rman standardized work. Assessment centers are performance-simulation tests that simulate jobs. Assessment centers are ce-si appropriate for evaluating managerial potential. mula d. Interviews - Like application forms, these are also universally used. The interviewer must know what can and tion cannot be asked in the interview. test e. Background Investigations - These are used for verifying application data and reference checks. that f. Physical Examinations - These are best suited to select candidates for jobs that have certain physical requirements. tests These are mostly used for insurance purposes. 83) D 84) D 85) D 86) A 87) B 88) B 89) A 90) C 91) B 92) B 93) D 94) FALSE 95) TRUE 96) The process of introducing a person to his new job is known as orientation. There are two types of orientation: work unit orientation and organization orientation. Work unit orientation familiarizes the employee with the goals of the work unit, clarifies how his or her job contributes to the unit's goals, and includes an introduction to his or her new coworkers. Organization orientation informs the new employee about the company's goals, history, philosophy, procedures, and rules. 97) The various traditional training methods are: a. On-the-job training - Employees learn how to do tasks simply by performing them, typically after an initial introduction to the task. b. Job rotation - Employees work at different jobs in a particular area and thus, gain exposure on a variety of tasks. c. Mentoring and coaching - Employees work with an experienced worker who provides information, support, and encouragement. d. Experiential exercises - Employees participate in role playing, simulations, or other face-to-face types of training. e. Workbooks/manuals - Employees refer to training workbooks and manuals for information. f. Classroom lectures - Employees attend lectures designed to convey specific information. The various technology-based training methods are: a. CD-ROM/DVD/videotapes/audiotapes/podcasts - Employees listen to or watch selected media that convey information or demonstrate certain techniques. b. Videoconferencing/teleconferencing/satellite TV - Employees listen to or participate as information is conveyed or techniques demonstrated. c. E-learning - This is an Internet-based learning where employees participate in multimedia simulations or other interactive modules. 98) B 99) C 100) A 101) D 102) A 103) D 104) B 105) C 106) D 107) B
108) B 109) B 110) C 111) TRUE 112) FALSE 113) The seven major performance appraisal methods are: a. Written essay - This is a technique in which an evaluator writes out a description of an employee's strengths and weaknesses, past performance, and potential. He also makes suggestions for improvement. b. Critical incidents - This focuses the evaluator's attention on critical or key behaviors that separate effective from ineffective job performance. c. Graphic rating scale - This method lists a set of performance factors. The evaluator goes down the list and rates each employee on each factor using an incremental scale. d. BARS - Behaviorally Anchored Rating Scales (BARS) combine major elements from the critical incident and graphic rating scale approaches. The appraiser rates the employee according to items along a numerical scale. The items here are examples of actual job behaviors. e. Multiperson comparison - This approach compares one person's performance with that of others. f. MBO - Management by objectives (MBO) is also an effective performance appraisal method. Here, employees are evaluated on specific goals that were established jointly by them and the manager. g. 360-degree appraisal - This method utilizes feedback from supervisors, employees, and coworkers of the employee. 114) B 115) C 116) TRUE 117) TRUE 118) B 119) B 120) A 121) A 122) FALSE 123) TRUE 124) TRUE 125) FALSE 126) FALSE 127) Organizations need to have the following seven elements to protect the organization from sexual harassment claims. They are; 1) A clear anti-harassment policy. 2) An explicit statement of prohibited sexual harassment behaviors. 3) A complain procedure that encourages employees to come forward. 4) Protections for the persons filing complaints and witnesses from retaliation. 5) A strategy to investigate the allegation that treats both sides fairly and protects their privacy. 6) Ongoing management training and employee awareness programs. 7) Measure in place to ensure prompt attention to the matter and appropriate disciplinary actions in place for offenders
Exam Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) It is Black Friday. Several people are waiting outside the popular electronics store for someone to 1) _______ unlock the doors. These people constitute a(n) ________. A) crowd B) formal group C) informal group D) social group 2) Which of the following is an example of a formal group? A) A functional department in an organization. B) People who assemble in the company library to read. C) A group of employees attending a colleague's wedding. D) A group of employees who meet after work to play basketball.
2) _______
3) Groups that are determined by the organization chart and composed of individuals who report directly to a given manager are called ________. A) task groups B) self-managed teams C) cross-functional teams D) command groups
3) _______
4) David supervises a group of employees who work towards achieving organizational goals. This group can be called a ________. A) command group B) cross-functional team C) self-managed team D) task group
4) _______
5) Every summer ABC Corp. hosts a picnic for employees and their families. The group that plans and makes all the arrangements for this event would be called a ________. A) task group B) self-managed team C) command group D) cross-functional team
5) _______
6) Which one of the following refers to independent formal groups whose members, in addition to their regular jobs, take on traditional managerial responsibilities, such as hiring, planning and scheduling, and evaluating performance? A) Cross-functional teams B) Self-managed teams C) Task groups D) Command groups
6) _______
7) Which one of the following stages in group development involves defining the group's structure and leadership? A) Forming B) Norming C) Performing D) Storming
7) _______
8) The first group meeting is in progress. The five attendees are exchanging contact information and getting acquainted. This group is in the ________ stage. A) norming B) storming C) performing D) forming
8) _______
9) The ________ stage in the group development process is complete when members begin to think of themselves as part of a group. A) storming B) norming C) forming D) performing
9) _______
10) During the ________ stage of the group development process, a relatively clear hierarchy of leadership and agreement on the group's direction emerge. A) storming B) performing C) norming D) forming
10) ______
11) It became clear that both Cathy and Simon felt they should lead the group. Other group members began aligning themselves with one or the other. This group is in the ________ stage. A) norming B) forming C) performing D) storming
11) ______
12) For a new project, Eldon forms a team of individuals from various functional departments. After a few days Eldon observes conflicts within the group over who will control it and what the group needs to be doing. This team is now in the ________ stage of group development. A) performing B) forming C) norming D) storming
12) ______
13) Group A has been meeting for one month and is having some difficulty appointing its leader. At least three individuals are qualified to keep the group's focus on its objectives, but the group has yet to decide which person will lead. Group A is at the ________ stage. A) storming B) norming C) performing D) forming
13) ______
14) The ________ stage of the group development process is one in which close relationships develop and the group becomes cohesive. A) storming B) performing C) norming D) forming
14) ______
15) In this meeting, the group is discussing a code of conduct to be observed by all members, such as arriving on time and not interrupting the speaker. This group is in the ________ stage. A) norming B) storming C) forming D) performing
15) ______
16) The ________ stage of group development is complete when the group structure solidifies and the group has assimilated a common set of expectations of what defines correct member behavior. A) forming B) norming C) performing D) storming
16) ______
17) Group C has been meeting for two months and seems to be progressing extremely well. You observe that the group meets every morning and spends the first five minutes chatting. They then review the decisions of the last meeting followed by a discussion on the status of their current tasks. Group C is currently at the ________ stage. A) storming B) performing C) adjourning D) norming
17) ______
18) In which stage of group development does the group focus its attention on wrapping up activities instead of task performance? A) Adjourning B) Norming C) Forming D) Storming
18) ______
19) Group D has been working on developing a product which is now ready to hit the market. The group members are happy about the work they've done on this product. The focus has now shifted from productivity to tying up loose ends. Group D is at the ________ stage. A) norming B) adjourning C) performing D) forming
19) ______
20) Which one of the following is considered to be the last stage of group development for permanent work groups? A) Performing B) Norming C) Adjourning D) Storming
20) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 21) Formal groups are work groups that are defined by the organization's structure and have designated work assignments and specific tasks directed at accomplishing organizational goals. 22) Task groups are permanent teams that take on special projects.
21) ______
22) ______
23) Self-managed teams function in an independent and informal manner.
23) ______
24) In the group development process, the forming stage is complete when members begin to think of themselves as part of a group.
24) ______
25) Under some conditions, high levels of conflict are conducive to high levels of group performance.
25) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 26) Describe the differences between formal and informal groups, giving examples of each. 27) List and discuss the five stages of group development. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 28) Employees were paid and evaluated based on quantity of output so it expected the continuous 28) ______ improvement team to meet during the two daily 15-minute breaks. The only space available for these meetings was the noisy breakroom;then management wondered why the group was not producing results. The most likely reason is ________. A) a poor strategy for managing quality B) a lack of group cohesiveness C) a lack of resources within the group D) external conditions imposed on the group 29) Students often complain that having to work with assigned teammates results in a poorer group project. They are complaining about a(n) ________. A) group member resource B) external condition C) internal condition D) group task
29) ______
30) Which of the following personality traits is negatively related to group productivity and morale? A) Self-reliance B) Sociability C) Independence D) Unconventionality
30) ______
31) Whenever one of her group got within ten feet of her, Christine chirped, "Oh good! You've come to help me." This group is likely to have low productivity because ________. A) Christine lacks self-reliance B) Christine lacks sociability C) Christine possesses authoritarianism D) Christine is unconventional
31) ______
32) This group should have worked well together. Each of them had at least five years seniority and had scored well on past performance evaluations. They all knew what needed to be done, but it seemed they were always in disagreement about something. This group probably lacked ________. A) conflict resolution skills B) sociability C) independence D) communication skills
32) ______
33) A pattern of behavior expected of someone occupying a given position in a social unit is called a ________. A) persona B) norm C) status D) role
33) ______
34) When Fred's department head explained what was expected of him as a new professor in terms of maintaining discipline in his classroom and providing students with a challenging course, he was referring to Fred's ________ at the university. A) authority B) status C) obligations D) role
34) ______
35) The acceptable standards or expectations that are shared by a group's members are referred to as ________. A) morals B) affiliations C) norms D) criteria
35) ______
36) Samantha is a single mom and the administrative assistant for the marketing department. Her son's soccer games begin right after school so Samantha often has to choose between supporting her son at his games and working. Samantha is experiencing role ________. A) clarity B) overload C) ambiguity D) conflict
36) ______
37) "Slow down, Mary. You're making us all look bad." These comments likely came from a worker concerned about ________. A) groupthink B) group norms C) group roles D) social loafing
37) ______
38) Which one of the following is a negative aspect of group norms? A) Being part of a group has the ability to increase an individual's antisocial actions. B) Groups become dysfunctional when they maintain strict norms. C) Norms do not influence employees' performance. D) The most widespread norms are those related to dress codes.
38) ______
39) Asch's experiment, which used lines of varying lengths to test group behavior, has shown the existence of ________. A) social loafing B) role conflicts C) group norms D) workplace conformity
39) ______
40) Her instincts told her the group was heading in a very wrong direction but Natalie didn't want to cause a scene by disagreeing, especially when she was apparently the only one with reservations. Natalie has succumbed to ________. A) groupshift B) groupthink C) social loafing D) group norms
40) ______
41) The reluctance of George's group mates to voice their opposition to several issues in order to maintain group harmony is an example of ________. A) groupthink B) group norms C) groupshift D) social loafing
41) ______
42) Which one of the following refers to a prestige grading, position, or rank within a group? A) Stature B) Membership C) Status D) Role
42) ______
43) Age, skill, and experience are examples of ________ status categories. A) informal B) internal C) formal
43) ______ D) external
44) Which of the following is an accurate statement regarding status systems? A) Status systems are independent of aspects such as prestige and grading. B) Status can only be formally conferred on individuals. C) Status is a weak employee motivator even though it has behavioral consequences. D) Anything can have status value if others in the group evaluate it that way.
44) ______
45) She was the matriarch of the department, the most senior employee. She always sat immediately to the right of the manager in all department meetings. No one dared take her chair. That chair was a symbol of her ________. A) status B) importance C) seniority D) age
45) ______
46) ________ occurs when a supervisor earns less than his or her subordinates. A) Informal status B) Status incongruence
46) ______
C) Role ambiguity
D) Role conflict
47) In comparison to large groups, small groups ________. A) are faster at completing tasks B) have shorter group tenure C) are better at obtaining diverse input D) have longer norming processes
47) ______
48) Large groups consistently get better results than smaller ones when the group is involved in ________. A) long-term projects B) getting things done C) routine tasks D) problem solving
48) ______
49) Individuals have the tendency to expend less effort when working collectively than when working individually. Which one of the following concepts relates most closely to this behavior? A) Role conflict B) Nonconformity C) Social loafing D) Role ambiguity
49) ______
50) Stacey was invited to become a member of the class project team because the other members knew she had a high GPA and worked hard on all her individual assignments. Although the other members worked diligently to complete their parts, Stacey was not giving her best effort to this team. Which of the following is a possible explanation for Stacey's behavior? A) Social loafing B) Role ambiguity C) Status incongruence D) Group cohesiveness
50) ______
51) Which one of the following suggestions will help reduce the effect of social loafing in groups? A) Clearly identify individual responsibilities and efforts in the group outcome. B) Provide group rewards instead of individual rewards. C) Form homogeneous groups to increase group cohesiveness. D) Increase the overall size of the group.
51) ______
52) A lot is riding on the success of this project. All nine members will share in the rewards. But Ted just doesn't have time to complete his assignment so he rationalizes that no one outside the group will know what he did or did not do anyway. Ted is engaged in ________. A) group norms B) groupthink C) nonconventionality D) social loafing
52) ______
53) This group really clicked. They got along well both professionally and socially. While at work they focused on work. This group is likely to experience ________ in productivity. A) no change B) a decrease C) a moderate increase D) a strong increase
53) ______
54) Group cohesiveness is most likely to produce strong increases in productivity when ________. A) cohesiveness reduces internal strife B) it reduces social loafing in the group C) the group's goals align with the organization's goals D) group members respect and uphold the group norms
54) ______
55) Which one of the following statements is true about group decision making? A) It prevents any one minority from dominating or influencing the final decision. B) It is most suitable for matters that need to be critically evaluated. C) It takes less time to reach a solution than an individual would. D) It generates more complete information and knowledge.
55) ______
56) Which one of the following is true about group decision making?
56) ______
A) Groups tend to foster equal participation in decision making. B) Groups take more time to arrive at a decision. C) Groups usually make decisions based on incomplete information. D) The pressure to conform is low when working in groups. 57) Which one of the following is true about the effectiveness of individual decision making over group decision making? A) Individual decisions are better when dealing with complex issues. B) Individual decisions are made faster than group decisions C) Individual decisions tend to be more accurate. D) Individuals tend to be more creative than groups.
57) ______
58) The ________ view of conflict management argues that conflicts must be avoided as it indicates a problem within the group. A) traditional B) obstructionist C) interactionist D) human relations
58) ______
59) Celine feels that the form of marketing their company is using isn't working anymore. Merle disagrees vehemently. Those in the company who view the conflict over the marketing strategy as bad and harmful have a(n) ________ view of conflict. A) traditional B) relational C) interactionist D) human relations
59) ______
60) Daniela and Navaro disagree on the best way to promote a new product. Those in the company who view the conflict over the promotion strategy as natural and inevitable have a(n) ________ view of conflict. A) reactionist B) interactionist C) human relations D) traditional
60) ______
61) Odill intentionally included in his team individuals with opposing views, believing that a variety of opinions made for better decisions. Odill has a(n) ________ view of conflict. A) traditional B) human relations C) liberal D) interactionist
61) ______
62) The ________ of conflict management argues that some conflict is absolutely necessary for effective organizational performance. A) human relations view B) reactionist view C) traditional view D) interactionist view
62) ______
63) The type of conflicts that support group goals and improve performance are called ________ conflicts. A) dysfunctional B) functional C) planned D) natural
63) ______
64) ________ conflict relates to the content and goals of the work. A) Task B) Role C) Work
64) ______ D) Relationship
65) The group could not agree on what needed to be done. Some thought they were to research and present data; others thought they were to make recommendations. This is an example of ________ conflict. A) process B) relationship C) task D) functional
65) ______
66) Which one of the following types of conflict is based on how the work gets done?
66) ______
A) Process conflict C) Relationship conflict
B) Task conflict D) Role conflict
67) Michael thought they should start by reviewing what had been done in the past. Michelle thought they should study the current situation first. This is an example of ________ conflict. A) process B) functional C) task D) procedural
67) ______
68) Which one of the following types of conflict is most likely to be dysfunctional? A) Task conflict B) Process conflict C) Status conflict D) Relationship conflict
68) ______
69) Molly is a party animal, loud, friendly, bluntly outspoken. Megan is quiet, tactful, and clearly disapproving of Molly's lifestyle. It's no wonder the two do not work well together. This is a type of ________ conflict. A) process B) relationship C) task D) interpersonal
69) ______
70) A low-to-moderate level of task conflict consistently has a positive effect on group performance. What is the reason for this? A) It helps groups to alter the nature of the work according to the individual needs of team members. B) It helps group members identify their individual strengths and weaknesses. C) It stimulates discussion of ideas that help groups be more innovative. D) It helps the organization identify employee skills gaps.
70) ______
71) Which one of the following is true about social loafing? A) It is viewed as a positive characteristic in some cultures. B) It rarely occurs in Western cultures. C) It is a common phenomenon in collectivist cultures. D) It is more common in cultures that are dominated by self-interest.
71) ______
72) Justin noticed that when he switched his evaluation technique from an individual metric to a group metric that two members of the group reduced their efforts. He learned this tendency is called ________. A) conflict avoidance B) group incohesiveness C) social loafing D) prestige slacking
72) ______
73) When compared to individuals, groups tend to take ________ time to reach a solution. A) less B) more C) the same length of D) substantially less
73) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 74) Social loafing is consistent with collectivist cultures.
74) ______
75) A group's performance potential depends, to a large extent, on the individual resources its members bring to the group.
75) ______
76) An individual's role in a group is not defined by the internal structure of the group.
76) ______
77) When Sam draws the group's attention back to the topic of discussion related to the group's purpose, he is performing a satisfaction role.
77) ______
78) One negative aspect about group norms is that being part of a group can increase an individual's
anti social
actions.
78)
___ ___
79) Groupthink occurs only when group members have a negative image of the group or the leader.
79) ______
80) Groupthink has the ability to undermine critical thinking in the group and harm the quality of decision making.
80) ______
81) Recent experiments indicate conformity levels in groups has increased since Asch's studies.
81) ______
82) Status can be a significant motivator with behavioral consequences when individuals and others perceive the individual's status similarly.
82) ______
83) Status incongruence can cause employees to decline to seek promotions.
83) ______
84) Informal status is not as important as status conferred by the organization.
84) ______
85) Small groups consistently get better results than larger ones when the groups are engaged in problem solving.
85) ______
86) Social loafing is the tendency for an individual to expend less effort when working collectively than when working individually.
86) ______
87) The human relations view of conflict holds that conflict must be avoided because it indicates a problem within the group.
87) ______
88) When using the Nominal Group Technique, each group member presents their unique idea before any discussion begins about which solution is best.
88) ______
89) Brainstorming is an idea generation technique where group members critique each idea as it is presented.
89) ______
90) The more complex the task, the more a group benefits from group discussion about alternative work methods.
90) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 91) Describe various aspects of group structure. 92) Robert is the CEO of a manufacturing plant. He believes that smaller teams are more effective than larger ones. Do you think this is the right strategy? Why or why not? 93) Identify the advantages and disadvantages of group decision making. 94) An organization must eliminate conflicts to be successful. Do you agree with this statement? Justify your answer. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 95) A team has been established to solve a problem with an industrial adhesive used by the firm. 95) ______ The three members are the installer, an engineer, and the sales representative for the adhesive manufacturer, but the team does not have a specific leader. This team can be called a ________ team. A) problem solving B) functional C) virtual D) self-managed
96) Research evidence suggests that teams typically outperform individuals when ________. A) tasks require multiple skills, judgment, and experience B) one or more members are allowed to dominate the other team members C) projects are short-term and need quick solutions D) tasks are simple and do not involve critical thinking
96) ______
97) ________ interact primarily to share information and to make decisions to help each member do his or her job more efficiently and effectively. A) Work teams B) Informal groups C) Self-managed teams D) Work groups
97) ______
98) A work group ________. A) has no need or opportunity to engage in collective work that requires joint effort B) works intensely on a specific goal using their positive synergy C) measures performance directly by assessing collective work outputs D) encourages open-ended discussions and active problem-solving meetings
98) ______
99) A work team ________. A) cannot be quickly refocused or disbanded B) has shared leadership roles C) measures performance based on its influence on others D) focuses on efficiency rather than collaboration
99) ______
100) ________ are teams from the same department or functional area involved in efforts to improve work activities, though they are rarely given the authority to implement any of their suggested actions. A) Problem-solving teams B) Self-managed teams C) Cross-functional teams D) Virtual teams
100) _____
101) Jan's department seems to be a bottleneck in the assembly process. She and her coworkers have been meeting regularly to generate ideas that might eliminate the bottleneck. Jan and her coworkers are part of a ________ team. A) task B) cross-functional C) problem-solving D) self-managed
101) _____
102) Five employees on the production line working together determine which person is performing which tasks, who becomes a member of the team, and what resources are needed to accomplish the work. These employees do not have a specific leader. These employees comprise a ________ team. A) self-managed B) virtual C) functional D) problem solving
102) _____
103) Strato Engineering, a technology product company, formed a team to develop the next generation of the company's model CVF-D. The team is composed of employees from various functional areas. This is a ________ team. A) virtual B) cross-functional C) self-managed D) problem-solving
103) _____
104) An organization brings together members from various departments such as marketing, accounting, human resources, and finance to form a team. This is an example of a ________ team. A) self-managed B) problem-solving
104) _____
C) cross-functional
D) functional
105) Team 3 has been working together for several years, implementing modifications to the company's current product. None of the members of this team are at the same location. They utilize a variety of graphic-electronic technologies to view the product onscreen in three-dimension at each location simultaneously. Which one of the following is the best way of describing Team 3? A) virtual B) self-managed C) problem-solving D) cross-functional
105) _____
106) It was amazing the team accomplished anything at all. It seemed they were always bickering and cross with each other, but their final output stunned management. Which one of the following might have contributed to their success? A) Type A personalities B) Intrinsic rewards C) Identical skills D) Clear goals
106) _____
107) Utilimotors decided teams would help improve employee morale and increase profitability so all employees were assigned to one of many different teams. The results were disappointing. This might be because team ________. A) composition included the relevant mix of skills. B) performance was improperly measured C) members lacked commitment D) goals were clearly conveyed
107) _____
108) Leadership is very important to effective teams. In most cases, effective team leaders act as ________. A) controllers B) regulators C) supervisors D) facilitators
108) _____
109) An incentive system which appropriately recognizes team activities is an example of which one of the following characteristics of effective teams? A) Performance evaluation B) External support C) Unified commitment D) Internal support
109) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 110) Research suggests that individuals outperform teams when the tasks being done require multiple skills, judgment, and experience.
110) _____
111) One important distinction between a work group and a work team is the degree of interdependence among the members.
111) _____
112) Work teams interact primarily to share information and to make decisions to help each member do his or her job more efficiently and effectively.
112) _____
113) A problem-solving team brings together experts in various specialties to work together on various organizational tasks.
113) _____
114) A self-managed team is a formal group of employees who operate without a manager and are responsible for a complete work process or segment.
114) _____
115) A team that uses technology to link physically dispersed members in order to achieve a common goal is called a virtual team.
115) _____
116) As the use of teams at work continues to increase, managers must become coaches who teach the skills of team membership. ESSAY. Write your answer in the space provided or on a separate sheet of paper. 117) List and describe the four most common types of teams likely to be found in today's organizations.
116) _____
1) A 2) A 3) D 4) A 5) A 6) B 7) A 8) D 9) C 10) A 11) D 12) D 13) A 14) C 15) A 16) B 17) B 18) A 19) B 20) A 21) TRUE 22) FALSE 23) FALSE 24) TRUE 25) TRUE 26) Formal groups are work groups defined by the organization's structure and have designated work assignments and specific tasks directed at accomplishing organizational goals. Four different types are command and task groups, and cross-functional and self-managed teams. Informal groups are social groups that occur naturally in the workplace and tend to form around friendships and common interests. For example, employees from different departments who regularly each lunch together are an informal group. 27) Research shows that groups pass through a standard sequence of five stages. These five stages are forming, storming, norming, performing, and adjourning. a. The first stage, forming, has two aspects. First, people join the group either because of a work assignment, in the case of a formal group, or for some other benefit desired (such as status, self-esteem, affiliation, power, or security), in the case of an informal group. Once the group's membership is in place, the second part of the forming stage begins: the task of defining the group's purpose, structure, and leadership. This phase is characterized by a great deal of uncertainty. Members are "testing the waters" to determine what types of behavior are acceptable. This stage is complete when members begin to think of themselves as part of a group. b. The storming stage is one of intragroup conflict. There is conflict over who will control the group. When this stage is complete, there will be a relatively clear hierarchy of leadership within the group and agreement on the group's direction. c. The third stage is one in which close relationships develop and the group demonstrates cohesiveness. There's now a strong sense of group identity and camaraderie. This norming stage is complete when the group structure solidifies and the group has assimilated a common set of expectations of what defines correct member behavior. d. The fourth stage is performing. The group structure at this point is fully functional and accepted. Group energy has moved from getting to know and understand each other to performing the task at hand. Performing is the last stage in the development of permanent work groups. Temporary groups-such as committees, task forces, and similar groups-that have a limited task to perform have a fifth stage, adjourning. e. In the adjourning stage, the group prepares to disband. High levels of task performance are no longer the group's top priority. Instead, attention is directed at wrapping up activities. Responses of group members vary at this stage. Some are upbeat, basking in the group's accomplishments. Others may be saddened by the loss of camaraderie and
frien dships gained during the work group's life. 28) D 29) B 30) D 31) A 32) A 33) D 34) D 35) C 36) D 37) B 38) A 39) D 40) B 41) A 42) C 43) A 44) D 45) A 46) B 47) A 48) D 49) C 50) A 51) A 52) D 53) D 54) C 55) D 56) B 57) B 58) A 59) A 60) C 61) D 62) D 63) B 64) A 65) C 66) A 67) A 68) D 69) B 70) C 71) D 72) C 73) B 74) FALSE 75) TRUE 76) FALSE 77) FALSE 78) TRUE
79) FALSE 80) TRUE 81) FALSE 82) FALSE 83) TRUE 84) FALSE 85) FALSE 86) TRUE 87) FALSE 88) TRUE 89) FALSE 90) TRUE 91) a. Roles refer to behavior patterns expected of someone occupying a given position in a social unit. In a work group, these roles tend to be oriented toward either task accomplishment or toward maintaining group member satisfaction. b. Norms are standards or expectations that are accepted and shared by a group's members and that dictate work output levels, absenteeism, promptness, and the amount of socializing allowed on the job. Common organizational norms focus on effort and performance, dress, and loyalty. c. Because individuals want to be accepted by groups to which they belong, they're susceptible to conformity pressures. As group members we often want to be considered one of the group and to avoid being visibly different. So we conform. When an individual's opinion of objective data differs significantly from that of others in the group, the group often exerts extensive pressure on the individual to align his or her opinion to conform to others' opinions, a phenomenon known as groupthink. d. Status systems are an important factor in understanding behavior. They're a significant motivator and have behavioral consequences when individuals see a disparity between what they perceive their status to be and what others perceive it to be. e. If the goal of the group is to find facts, a larger group of a dozen or more members should be more effective. Smaller groups of seven or fewer are better at doing something productive with those facts. One important finding related to group size is social loafing, the tendency for an individual to expend less effort when working collectively than when working individually. f. Group cohesiveness, the degree to which members are attracted to a group and share the group's goals, is important because it has been found to be related to a group's productivity. g. Group processes concern such things as communication, decision making, conflict management, etc. These processes influence group performance and satisfaction. 92) Group size affects performance and satisfaction, but the effect depends on what the group is supposed to accomplish. Smaller teams would be effective for regular tasks that require control. Research indicates that small groups are faster at completing tasks than are larger ones. However, for groups engaged in problem solving, large groups consistently get better results than smaller ones. Larger teams are preferred if the team needs diverse output. Smaller teams are preferred otherwise. 93) Advantages a. Generate more complete information and knowledge: A group brings a diversity of experience and perspectives to the decision process that an individual cannot. b. More diverse alternatives: Because groups have a greater amount and diversity of information, they can identify more diverse alternatives than an individual. c. Increased acceptance of a solution: Group members are reluctant to fight or undermine a decision they have helped develop. d. Increased legitimacy: Decisions made by groups may be perceived as being more legitimate than decisions made unilaterally by one person. Disadvantages a. Time consuming: Groups almost always take more time to reach a solution than it would take an individual. b. Minority domination: The inequality of group members creates the opportunity for one or more members to dominate others. A dominant and vocal minority frequently can have an excessive influence on the final decision.
c. conform: Groupthink undermines critical thinking in the group and eventually harms the quality of the final Press decision. ures d. Ambiguous responsibility: Group members share responsibility, but the responsibility of any single member is to diluted. 94) Not all conflicts are bad. Some conflicts, functional conflicts, are constructive and support the goals of the work group and improve its performance. Other conflicts, dysfunctional conflicts, are destructive and prevent a group from achieving its goals. Hence, an ideal strategy for a manager would be to eliminate dysfunctional conflicts and to promote functional conflicts. 95) D 96) A 97) D 98) A 99) B 100) A 101) C 102) A 103) B 104) C 105) A 106) D 107) C 108) D 109) D 110) FALSE 111) TRUE 112) FALSE 113) FALSE 114) TRUE 115) TRUE 116) TRUE 117) a. Problem-solving teams-these teams are teams from the same department or functional area who are involved in efforts to improve work activities or to solve specific problems. In problem-solving teams, members share ideas or offer suggestions on how work processes and methods can be improved. However, these teams are rarely given the authority to unilaterally implement any of their suggested actions. b. Self-managed teams-these teams are formal groups of employees who operate without a manager and are responsible for a complete work process or segment. The self-managed team is responsible for getting the work done and for managing themselves. This usually includes planning and scheduling of work, assigning tasks to members, collective control over the pace of work, making operating decisions, and taking action on problems. c. Cross-functional teams-these teams are a hybrid grouping of individuals who are experts in various specialties and who work together on various tasks. d. Virtual teams-these are teams that use computer technology to link physically dispersed members in order to achieve a common goal. In a virtual team, members collaborate using communication links such as wide area networks, videoconferencing, fax, e-mail, or even Web sites where the team can hold online conferences. Virtual teams can do all the things that other teams can—share information, make decisions, and complete tasks; however, they miss the normal give-and-take of face-to-face discussions. Because of this omission, virtual teams tend to be more task oriented, especially if the team members have never personally met.
Exam Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) For communication to be successful, meaning must be imparted and ________. 1) _______ A) acknowledged by the receiver B) feedback must be sent back to the sender C) received by the other person D) understood by the receiver 2) Good communication occurs only when the recipient ________. A) acknowledges the message B) agrees with the sender's message C) makes eye contact with the speaker D) understands the speaker's meaning
2) _______
3) In which one of the following cases has communication occurred? A) Brian attends all the Algebra lectures, but is unable to understand the subject. B) Gary updates his blog regularly, even though no one reads it. C) Jen has sent an urgent e-mail to her Japanese colleague, but a translator is not yet available. D) Ana tells her manager that she needs a new computer, but he says that the company can't afford it.
3) _______
4) ________ consists of all the patterns, networks, and systems of communication within an organization. A) Formal communication B) Organizational communication C) Interpersonal communication D) The grapevine
4) _______
5) George prepares a memorandum explaining the objectives of a newly created work team that he is expected to manage, and makes sure it reaches each team member. He is involved in ________. A) lateral communication B) deciphering the message C) decoding the message D) organizational communication
5) _______
6) When a communication requires employees to follow their job description, or to comply with company policies, communication is being used to ________. A) persuade B) provide a release for emotional expression C) manage D) motivate
6) _______
7) Amber has called her work group together to assign tasks for the day. In this instance, Amber is using communication to ________. A) challenge her employees B) express emotions C) manage behavior D) provide feedback
7) _______
8) In which one of the following cases is communication used to manage employee behavior? A) Sandy tells Mitch that she's happy with the progress he's making. B) Jan informs Sara that she must follow the dress code at work. C) Glenn lets Ann know that the deadline for her project has been postponed. D) Chris gives Jason tips on how to improve his performance.
8) _______
9) Alan has just given his subordinates a very difficult project. Now he is telling them he has every confidence they will be successful. Alan is using communication to ________. A) manipulate B) control C) motivate D) inspire
9) _______
10) Pat is very happy with her team of 15 customer care representatives who've all been consistently performing well. Customer feedback was impressive and Pat is planning to give them good bonuses this time around. As a manager, Pat believes it is important to let her subordinates know when she is happy with their work. She does so, and also calls a meeting to discuss what they can do to improve further. Pat is using communication for ________. A) decision making B) motivation C) negotiation D) expressing emotion
10) ______
11) Bonnie has had a bad day. She is venting to her supervisor about her problems. Bonnie is using communication to ________. A) inform her supervisor of her personal problems B) express her emotions C) motivate her supervisor to take action D) control behavior
11) ______
12) Brandon is telling his coworkers what he learned at the technical seminar he recently attended. Brandon is using communication to ________. A) regale B) motivate C) inform D) negotiate
12) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 13) Everything a manager does involves communicating.
13) ______
14) If a manager clearly and articulately verbalizes instructions to a subordinate, communication has taken place.
14) ______
15) Good communication requires agreement with the message.
15) ______
16) Communication can both inform the receiver and manage behavior.
16) ______
17) Formal communication can control behavior, but informal communication cannot.
17) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 18) Explain why communication is important to managers and organizations. What five functions does it serve? MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 19) During the communication process, the message is converted to a symbolic form. This process is 19) ______ called ________. A) decoding B) symbolizing C) encoding D) deciphering 20) Which one of the following is true for the communication process? A) Encoding takes place before the message reaches the medium. B) Noise cannot affect the encoding of the message. C) The decoding process takes place within the channel. D) The sender decodes the message and then transmits it.
20) ______
21) The process through which the symbols of a message are translated by the receiver into a form that (s)he can understand is called ________. A) decoding B) reinstating C) encoding D) enciphering
21) ______
22) Disturbances that interfere with the transmission, receipt, or feedback of a message are called ________. A) filters B) screens C) distractors D) noise
22) ______
23) Which one of the following is an example of a disturbance that interferes with the transmission of a message? A) Adding your contact information at the end of an e-mail message. B) Thinking about the party you attended last night while sitting in a lecture. C) Leaving a message on the answering machine when you cannot reach someone. D) Sending unsolicited sales messages to prospects.
23) ______
24) Adam has to tell the members of his department that the office hours have changed from flexible hours to a strict nine-to-five day. He calls a meeting to explain the change. Participants begin arguing and asking multiple questions about the new work time policy. The next day, Adam realizes that most people still do not have a clear idea about the change, as a result of the confusion at the meeting. Which one of the following explains why the message was not understood? A) The channel was not appropriate for the delivery of this message. B) The recipients did not encode the message correctly. C) The noise in the process interfered with the transmission of the message. D) The sender did not decode the message appropriately.
24) ______
25) The purchasing manager assigned to the team had already worked with Dan in the past. However, a difference of opinion had soured their relationship. As a result, the purchasing manager is unable to objectively evaluate and appreciate the various aspects of the current project described in the memorandum Dan prepared. This is an example of ________. A) filtering B) noise C) distraction D) framing
25) ______
26) Laura sent a text message to Betty telling her that she would come by to pick her up after work so they could go shopping. Betty, however, made other plans for the evening thinking Laura was talking about going shopping the next day. Which one of the following best explains what went wrong with the communication? A) There was too much noise in the room when Betty read the message. B) The complexity capacity of text messaging is poor. C) Betty decoded the message incorrectly. D) Laura used a wrong channel of communication.
26) ______
27) The final link in the communication process is ________. A) decoding B) feedback C) channel selection D) encoding
27) ______
28) George has prepared a memorandum explaining the objectives of the work team. Some of the production workers have come to George to ask for clarification about the memorandum. This represents the ________ aspect of the communication process. A) channeling B) filtering C) feedback D) noise
28) ______
29) Which one of the following methods of communication should be used when the sender requires quick and accurate feedback? A) Voicemail B) E-mail C) Face-to-face D) Instant messaging
29) ______
30) Noise can occur ________. A) only in written communication C) only in nonverbal communication
30) ______ B) only in verbal communication D) in all forms of communication
31) Which of these forms of communication is likely to convey the most meaning? A) A written transcript B) An audio recording of a meeting C) An email D) A live speech
31) ______
32) Studies show that employees are more likely to ________ if they are experiencing negative emotions. A) communicate more effectively B) remain silent C) become very vocal D) be sensitive to noise
32) ______
33) In which of these countries is a manager more likely to be very specific in their communication? A) China B) Germany C) Mexico D) Japan
33) ______
34) Making the language in a message ________ increases the likelihood of the receiver understanding the intent. A) more complex B) fit the audience C) sound aggressive D) completely free of jargon
34) ______
35) Active listening ________. A) is unnecessary for most communications C) is synonymous with hearing
35) ______ B) demands total concentration D) is not as tiring as talking
36) Which one of the following is true of nonverbal communication? A) It usually carries greater impact than verbal communication. B) It is absent in spoken communication. C) It is involuntary; it cannot be used deliberately. D) It is synonymous with body language.
36) ______
37) Her co-workers don't share personal tidbits with Norma, and she wonders why. Which one of the following could explain this phenomenon? A) Norma wears long skirts, long sleeves, and has her hair tied up in a bun. B) Norma has an unusual laugh. C) Norma generally stands with her arms crossed when in a conversation with anyone. D) Norma often snacks while working at her desk.
37) ______
38) Deb has a high-pitched, childish-sounding voice. Her colleagues tend to avoid her and cringe when she speaks in department meetings. To improve her career success, Deb should ________. A) adjust her body language to be more welcoming B) submit her comments in writing after the meeting C) work on her verbal intonation to lower her voice pitch D) send a substitute to the meetings
38) ______
39) A(n) ________ occurs when the amount of data provided exceeds the recipient's processing capacity. A) information overload B) conceptual block C) physical barrier D) perceptual barrier
39) ______
40) During the presentation Sarah explained that the reason for downsizing was the recession which was hitting the company badly. However, the fact of the matter was that the company had not yet experienced any loss of revenues but were anticipating bad days ahead, which could eventually lead to mass layoffs. This is an example of the ________ aspect of the communication process. A) selective perception B) filtering
40) ______
C) deception
D) framing
41) By the time that Sandra had finished the presentation to the employees, she had spoken for one and one-half hours, shown 14 visual aids, and no one asked a question. The employees were probably dealing with which one of the following barriers to effective communication? A) Defensiveness B) Cultural constraints C) Information overload D) Selective perception
41) ______
42) When employees confront information overload, they may resort to ________. A) delegating B) deleting old emails C) filtering D) mentally shutting down
42) ______
43) ________ is the deliberate manipulation of information to make it appear more favorable to the receiver. A) Framing B) Filtering C) Encoding D) Screening
43) ______
44) When a person tells his or her manager what the manager wants to hear, which one of the following barriers to effective interpersonal communication is the person using? A) Framing B) Defensiveness C) Filtering D) Selective perception
44) ______
45) Which one of the following is true of filtering? A) The use of e-mail increases filtering because communication is more direct. B) The more vertical levels in an organization, the more opportunities there are for filtering. C) Filtering aids effective communication by making a message more favorable to a receiver. D) Filtering occurs at the individual level; the organization cannot encourage or discourage it.
45) ______
46) During her performance evaluation, Cindy omitted a few of the details about her problems with her subordinates because she was afraid her supervisor would think her unfit for management. This is an example of ________. A) self-advancement B) framing C) filtering D) lying by omission
46) ______
47) Sarah needs funding to research the efficacy of a certain drug for the treatment of cancer. Though her initial trials have been inconclusive, Sarah is sure that the drug will prove to be effective. However, the organizations she plans to approach for funding will not be very impressed with the results of the previous trials and may withhold funding. Sarah decides to structure her proposal in such a way that she emphasizes the positives about the drug and minimizes the negative information. Which one of the following best describes Sarah's technique for writing her proposal? A) Emotional appeal B) Framing C) Filtering D) Information overload
47) ______
48) As the employees began to leave the meeting room, some were overheard grumbling that those at the top were just profiteers, that it didn't make any difference to Leona if employees lost their jobs. Which barrier to effective communications do these statements represent? A) Defensiveness B) Language C) Filtering D) Information overload
48) ______
49) Jargon is ________. A) a technique that increases the breadth potential of a communication method B) specialized terminology that members of a group use to communicate among themselves
49) ______
C) a technique for deliberate manipulation of information to make it appear more favorable to the receiver D) the capacity of a communication method to process complex messages 50) The accountant told Ellen that he had difficulty understanding some of the technical terms used in her memorandum. These technical terms are commonly known as ________. A) techspeak B) vernacular C) encoding D) jargon
50) ______
51) Which one of the following is a way for managers to overcome the barriers to communication? A) Feedback B) Filtering C) Decoding D) Encoding
51) ______
52) Teresa called her work group together, explained the instructions for the new machine, and left. Later, after one of the workers had jammed the machine and injured a coworker, she discovered the worker had not followed the instructions. This problem may have been avoided if Teresa had ________. A) had the workers reword the instructions and repeat them to her B) given the workers a written set of instructions C) gone over the instructions twice instead of once D) had one of the workers deliver the instructions
52) ______
53) When Terrence explained to the employees why layoffs were necessary, he spoke about return on investment, debt, and cash flow—terms his shareholders clearly understood. But his employees had no clue what he meant. Terrence's explanation would have been more effective if he had ________. A) tailored the language to the audience B) spoken louder C) skipped the reasons and explained the method of selection for layoffs D) used flow charts and other visuals
53) ______
54) Listening is an active search for meaning, whereas ________ is passive. A) speaking B) decoding C) encoding
54) ______ D) hearing
55) Listening for full meaning without making premature judgments or interpretations is called ________. A) empathic listening B) decoding C) passive listening D) active listening
55) ______
56) Which one of the following helps an individual to understand the actual content of a message? A) Sympathy B) Apathy C) Antipathy D) Empathy
56) ______
57) Which one of the following is true for active listeners? A) They should listen for full meaning and avoid paraphrasing what the speaker is saying. B) Developing empathy for the speaker is not advised as it proves an emotional barrier to listening. C) They should avoid making eye contact and nodding as this will distract the speaker. D) They should not interrupt the speaker, but should feel free to ask questions about the topic.
57) ______
58) Ulysses has difficulty staying focused during conversations, especially long "speech" type comments from the speaker. This is likely because ________. A) he already knows what the speaker is going to say next and is forming his response in his mind B) he strongly disagrees with the speaker
58) ______
C) Ulysses, like most listeners, can understand more words per minute than most talkers speak D) he is not interested in the conversation topic 59) While Victor was explaining a problem that was frustrating him, his manager smiled widely. Victor wanted to wipe the smirk off the manager's face in a none too friendly manner. What went wrong here? A) Victor was too emotional. B) The manager's non-verbal communication did not match the seriousness of the situation. C) Victor was upset over nothing, which the manager found funny. D) The manager was distracted. TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 60) The communication process is susceptible to noise.
59) ______
60) ______
61) Illegible handwriting is an example of noise.
61) ______
62) A sender initiates a message by encoding a thought.
62) ______
63) In communication, the process of decoding is performed by the receiver.
63) ______
64) Intonation refers to gestures, facial expressions, and other body movements that convey meaning.
64) ______
65) Verbal intonation refers to the emphasis someone gives to words or phrases that conveys meaning.
65) ______
66) The nonverbal component of communication usually carries the greatest impact.
66) ______
67) The net result of filtering is lost information and ineffective communication.
67) ______
68) National culture influences the communication preferences of a population.
68) ______
69) On average, an individual must hear new information three times before (s)he truly understands.
69) ______
70) Most communication problems are directly attributed to noise in the communication process.
70) ______
71) An email read receipt is sufficient feedback to indicate the message has been received and understood.
71) ______
72) Filtering takes place when information exceeds the receiver's processing capacity.
72) ______
73) E-mail increases filtering because electronic communication is faster.
73) ______
74) Active listeners avoid asking questions and making eye contact so that they don't distract the speaker.
74) ______
75) A person who is upset is more likely to get the message right than one who is calm.
75) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 76) List the seven elements of the communication process and explain the process of interpersonal communication.
77) Discuss the two best-known types of nonverbal communication. Include a specific example of each type of nonverbal communication to support your answer. 78) List and discuss the barriers to effective communication that managers face. Include a specific example of each barrier to support your answer. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 79) When a manager asks an employee to complete a task, (s)he is using ________ communication. 79) ______ A) upward B) lateral C) formal D) informal 80) The vice president wrote a letter to the employees announcing the opening of a new production facility. This is an example of which type of organizational communication? A) Informal B) Formal C) Lateral D) Horizontal
80) ______
81) When Sam went to the human resource manager and applied for transfer to the new facility, he was participating in which type of organizational communication? A) Horizontal B) Lateral C) Downward D) Formal
81) ______
82) Organizational communication that is not defined by the organization's structural hierarchy is known as ________ communication. A) external B) informal C) controlled D) passive
82) ______
83) The ________ communication system within an organization permits employees to satisfy their need for social interaction with their peers. A) social B) organizational C) informal D) formal
83) ______
84) Downward communication is used ________. A) by employees to give managers progress reports B) between people of different departments and organizational levels C) between employees at the same organizational level D) to coordinate and evaluate employees
84) ______
85) ________ communication is communication that flows from a manager to his employees. A) Diagonal B) Downward C) Upward D) Horizontal
85) ______
86) Jon is the manager of the Finance department. He has to inform the employees in the department about the introduction of a new analytical software and the resultant changes in procedures. Which one of the following types of communication does he use? A) Lateral B) Diagonal C) Upward D) Downward
86) ______
87) In an effort to improve communication within the accounting department of a large organization, the department head puts a suggestion box at the door and invites employees to communicate their thoughts, ideas, concerns, or grievances to the managers in the department. Which one of the following methods of communication is he encouraging? A) Diagonal B) Lateral C) Upward D) Downward
87) ______
88) ________ communication keeps managers aware of how employees feel about their jobs, their coworkers, and the organization in general. A) Horizontal B) Vertical C) Upward D) Downward
88) ______
89) Many production employees began to talk among themselves about whether they wanted to
transfer to a
new 89) producti on facility in a neighbor ing town. What type of commun ication is this? A) Formal
___ ___
B) Diagonal
C) Lateral
D) Downward
90) Which one of the following is an example of lateral communication? A) His supervisor penalizes John for not following the company dress code. B) Paul tells the CEO about the low morale in his department. C) Brian talks to his teammate about a change in project specifications. D) George informs his superior about the progress of the new project.
90) ______
91) Cross-functional teams rely heavily on ________ communication, which can be problematic if their managers are not kept informed about the decisions. A) vertical B) lateral C) upward D) diagonal
91) ______
92) When Sam, a production supervisor spoke to the human resources manager about transferring to the new production facility, he was involved in which type of organizational communication? A) Lateral B) Diagonal C) Upward D) Horizontal
92) ______
93) When an organization has an interest in increasing the efficiency and speed of communication between managers at different levels and in different departments, then ________. A) diagonal communication should be used B) upward communication works best C) downward communication works the fastest D) lateral communication is ideal
93) ______
94) In the ________ communication network, communication flows according to the formal organizational hierarchy, both downward and upward. A) horizontal B) linked C) chain D) wheel
94) ______
95) In a(n) ________ communication network, all communication passes through a clearly identifiable leader to the others in a team and upward from team members to the leader. A) all-channel B) wheel C) chain D) circular
95) ______
96) When MediFax was a small company, information flowed freely from the sales force to all areas of the home office. This most closely represents the ________. A) all-channel network B) wheel network C) informal network D) chain network
96) ______
97) Once MediFax grew and became more mechanistic, management insisted that information flow vertically along the lines of authority. This is most representative of the ________ communications network.
97) ______
A) all-channel
B) wheel
C) circular
D) chain
98) Rick believes that it might be more effective if incoming market-based information and outgoing responses and directions were to flow through a central figure, the regional sales manager for each region. He, therefore, prefers the ________ network for communication. A) wheel B) informal C) all-channel D) chain
98) ______
99) In the all-channel network, communication flows ________. A) in a parallel fashion until all of the members of a work group have been informed B) through the grapevine C) freely among all members of a formal work team D) downward from a strong leader to his subordinates in the work group
99) ______
100) If a company is concerned with achieving high member satisfaction for all the participants in a network, which one of the following communication networks is best? A) Chain network B) Horizontal network C) All-channel network D) Wheel network
100) _____
101) Over the years, managers at Wilson's Retail have discovered that the sales staff in the retail areas have the best insights into what customers want and how they shop. Wilson's uses these insights to design its retail spaces and decide which products to stock. To make the sharing of information easier, Wilson's encourages an open communication network, where information flows freely between and among staff and managers. Which one of the following communication networks does Wilson's use? A) Wheel B) Chain C) All-channel D) Downward
101) _____
102) Which one of the following is true for organizational communication? A) It includes informal communication via the grapevine. B) Information flows according to the organization's chain of command. C) It uses formal but not informal communication techniques. D) It does not include interpersonal communication.
102) _____
103) An organization's grapevine works as ________. A) a method for managers to communicate official policy B) a method for management to control the dissemination of information C) a filter and a feedback mechanism for managers and employees D) both a formal and an informal communication method
103) _____
104) Because rumors that flow along the grapevine can never be eliminated entirely, managers can minimize the negative consequences of rumors by ________. A) ignoring them completely B) communicating openly and honestly with employees C) using filtering wherever possible D) encouraging an all-channel communication network
104) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 105) Informal communication is organizational communication not defined by the organization's structural hierarchy.
105) _____
106) Downward communication is communication that flows from a manager to employees.
106) _____
107) Upward communication is used to inform, direct, coordinate, and evaluate employees.
107) _____
108) Communication that takes place among employees on the same organizational level is called lateral communication.
108) _____
109) In the wheel network, the leader serves as the hub through which all communication passes.
109) _____
110) The informal organizational communication network is known as the chain.
110) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 111) Explain formal and informal communication within an organization. 112) Describe and explain the different directions of communication flow within an organization. 113) Briefly describe three common communication networks, or patterns of communication, that emerge in organizations. Is any one network preferable to others? If so, why? If not, what factors decide which network is best for a particular situation? 114) What is the role of the informal communication network in organizations? How can managers ensure that this network is beneficial to the organization? 115) "The grapevine is detrimental to effective organizational communication and must be eliminated if the organization is to effectively engage its employees." Do you agree with this statement? Explain your answer. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 116) A(n) ________ is a location where Internet users can gain wireless access to the Internet. 116) _____ A) extranet B) Wi-Fi hot spot C) LAN D) intranet 117) William says he never really gets a vacation any more. One likely explanation for his statement is ________. A) IT has made it possible for people in organizations to be fully accessible at any time regardless of where they are B) he only vacations in areas where his organization has facilities C) he works ahead before the vacation and plays catch-up when he returns D) he takes "staycations" and works on family/household projects on his time off
117) _____
118) Which one of the following is a disadvantage of using IT in organizational communication? A) geographic constraints B) Time constraints C) Economic drawbacks D) Psychological costs
118) _____
119) Data breaches occur at many firms and result in ________. A) loss of customer or client trust B) limited financial loss C) bankruptcy or insolvency D) minor inconveniences to customers and employees
119) _____
120) Which of these actions will help firms reduce data breaches? A) Publicizing the intent to prosecute offenders B) Outsourcing all of their IT functions C) Securing Wi-Fi system D) Insuring against cybersecurity losses
120) _____
121) Many creative firms use ________ to communicate more effectively with internal audiences.
121) _____
A) video portals C) public YouTube content
B) Facebook messaging D) weekly bulletins
122) From the firm's perspective, one of the drawbacks to social media is ________. A) it is an ineffective means of communication B) that most employees do not use social media at work C) it can consume employee time and undermine productivity D) that most older employees do not like social media
122) _____
123) Though IT has improved organizational communications in recent years, ________ remains a major concern. A) breadth potential B) security C) cost D) timeliness
123) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 124) IT has significantly improved a manager's ability to monitor individual and team performance.
124) _____
125) One advantage of social media in business is that it can both convey information and provide a platform for group conversations about the topic.
125) _____
126) Although constant accessibility and the erasure of geographic constraints have been made possible by IT, it is important for managers to consider the content of the message when selecting the method of communication.
126) _____
127) A current and continuing concern of electronic communication is the possibility of being hacked.
127) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 128) In a short essay, explain two main communication challenges that new technology has created. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 129) Wilhelmina would like a raise, but every time she asks for one she is turned down. Wilhelmina 129) _____ should ________. A) improve her persuasion skills B) explain why she needs the additional money C) go up the chain of command with her request D) submit her next request in writing 130) Tammy often said "I seen", "we have went", and "it has ran". These phrases also appeared in her emails. Tammy wonders why she has not been given assignments with greater responsibility. What advice would you offer to Tammy? A) Seek a mentor. B) Sharpen your speaking skills. C) Look for other employment. D) Find a job coach.
130) _____
131) Which of these things is one of the four basic elements of persuasion? A) You should only stretch the truth if it is completely necessary. B) Try to show as much emotion as you can since people respond to tears. C) Appeal to the "head" and "heart" by combining rational and emotional arguments. D) Add complexity since people often commit when they are afraid to tell someone they do not understand what they are talking about.
131) _____
132) One key to effective persuasion is to ________. A) address only people with enough money to invest
132) _____
B) understand your purpose in life C) simplify a complicated topic D) make the simple more complex TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 133) Making the complex simple is one of the elements of effective persuasion.
133) _____
134) Because of the heavy use of electronic communication methods, speaking skills have become less important.
134) _____
135) It is perfectly acceptable to use abbreviations in a text message when the sender is in a hurry.
135) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 136) Discuss four areas where managers can improve their communication skills. Explain why this is important.
1) D 2) D 3) D 4) B 5) D 6) C 7) C 8) B 9) C 10) B 11) B 12) C 13) TRUE 14) FALSE 15) FALSE 16) TRUE 17) FALSE 18) Communication serves five major functions: management, motivation, emotional sharing, persuasion, and information exchange. Communication acts to manage employee behavior in several ways. Organizations have authority hierarchies and formal guidelines that employees are expected to follow. For instance, when employees are required to communicate any job-related grievance first to their immediate manager, to follow their job description, or to comply with company policies, communication is being used to manage. But informal communication also controls behavior. When work groups tease a member who's working too hard or producing too much (making the rest of the group look bad), they're informally controlling the member's behavior. Communication encourages motivation by clarifying to employees what is to be done, how well they're doing, and what can be done to improve performance if it's not up to par. As employees set specific goals, work toward those goals, and receive feedback on progress toward goals, communication is required. For many employees, their work group is a primary source of social interaction. The communication that takes place within the group is a fundamental mechanism by which members share frustrations and feelings of satisfaction. Communication, therefore, provides a release for emotional expression of feelings and for fulfillment of social needs. Communication can also be used to persuade others to act a certain way or change their beliefs about something. For example, managers may use persuasion to convince their team that the organization is truly committed to diversity. Finally, individuals and groups need information to get things done in organizations. Communication provides that information. None of these five functions is more important than the others. For groups to work effectively, they need to manage the members, motivate members to perform, provide a means for emotional expression, persuade them to do certain things and make decisions. You can assume that almost every communication interaction that takes place in a group or organization is fulfilling one or more of these five functions. 19) C 20) A 21) A 22) D 23) B 24) C 25) B 26) C 27) B 28) C 29) C 30) D 31) D 32) B
33) B 34) B 35) B 36) A 37) C 38) C 39) A 40) B 41) C 42) C 43) B 44) C 45) B 46) C 47) C 48) A 49) B 50) D 51) A 52) A 53) A 54) D 55) D 56) D 57) D 58) C 59) B 60) TRUE 61) TRUE 62) TRUE 63) TRUE 64) FALSE 65) TRUE 66) TRUE 67) TRUE 68) TRUE 69) FALSE 70) FALSE 71) FALSE 72) FALSE 73) FALSE 74) FALSE 75) FALSE 76) The seven elements of the communication process are: (1) the communication source, (2) the message, (3) encoding, (4) the channel, (5) decoding, (6) the receiver, and (7) feedback. Before communication can take place, a purpose, expressed as a message to be conveyed, must exist. It passes between a source (the sender) and a receiver. The message is converted to a symbolic form (called encoding) and passed by way of some medium (channel) to the receiver, who retranslates the sender's message (called decoding). The result is the transfer of meaning from one person to another. The entire process is susceptible to noise-disturbances that interfere with the transmission, receipt, or feedback of a message. Typical examples of noise include illegible print, phone static, inattention by the receiver, or background sounds of machinery or coworkers. Anything that interferes with understanding can be noise, and noise can create distortion at any point in the communication process.
77) An important part of interpersonal communication is nonverbal communication-that is, communication transmitted without words. Body language refers to gestures, facial expressions, and other body movements that convey meaning. A person frowning "says" something different from one who's smiling. Hand motions, facial expressions, and other gestures can communicate emotions or temperaments such as aggression, fear, shyness, arrogance, joy, and anger. Verbal intonation refers to the emphasis someone gives to words or phrases that conveys meaning. To illustrate how intonations can change the meaning of a message, consider the student who asks the instructor a question. The instructor replies, "What do you mean by that?" The student's reaction will vary, depending on the tone of the instructor's response. A soft, smooth vocal tone conveys interest and creates a different meaning from one that is abrasive and puts a strong emphasis on saying the last word. 78) a. COGNITIVE-Information overload occurs when the amount of information a person is required to work with exceeds that individual's processing capacity. When this happens people tend to select out, ignore, pass over, or forget information. Or they may put off further processing until the overload situation is over. Filtering is the deliberate manipulation of information to make it appear more favorable to the receiver. For example, when a person tells his or her manager what the manager wants to hear, that individual is filtering information. b. EMOTIONS-How a receiver feels when a message is received influences how he or she interprets it. Extreme emotions are most likely to hinder effective communication. In such instances, people often disregard rational and objective thinking processes and substitute emotional judgments. When people feel threatened, they tend to react in ways that reduce their ability to achieve mutual understanding. They may verbally attack others, make sarcastic remarks, be overly judgmental, and question others' motives c. SOCIOCULTURAL-Words mean different things to different people. Age, education, and cultural background are three of the more obvious variables that influence the language a person uses and the definitions (s)he gives to words. People may speak the same language, but use of that language is far from uniform. Senders tend to assume that the words and phrases they use mean the same to the receiver as they do to them. This is incorrect. d. NATIONAL CULTURE-Interpersonal communication isn't conducted in the same way around the world. In the United States, communication patterns tend to be individually oriented and clearly spelled out. U.S. managers rely heavily on memoranda, announcements, position papers, and other formal forms of communication to state their positions on issues. In collectivist countries, such as Japan, there's more interaction for its own sake and a more informal manner of interpersonal contact. 79) C 80) B 81) D 82) B 83) C 84) D 85) B 86) D 87) C 88) C 89) C 90) C 91) B 92) B 93) A 94) C 95) B 96) A 97) D 98) A 99) C 100) C 101) C 102) A
103) C 104) B 105) TRUE 106) TRUE 107) FALSE 108) TRUE 109) TRUE 110) FALSE 111) Communication within an organization is described as formal or informal. Formal communication refers to communication that takes place within prescribed organizational work arrangements. For example, when a manager asks an employee to complete a task, that's formal communication. Another example of formal communication occurs when an employee communicates information or a problem to his or her manager. Informal communication is organizational communication not defined by the organization's structural hierarchy. When employees talk with each other in the lunch room, as they pass in hallways, or as they're working out at the company wellness facility, they engage in informal communication. Employees form friendships and communicate with each other. The informal communication system fulfills two purposes in organizations: (1) it permits employees to satisfy their need for social interaction, and (2) it can improve an organization's performance by creating alternative, and frequently faster and more efficient, channels of communication. 112) Downward communication flows from a manager to employees. It's used to inform, direct, coordinate, and evaluate employees. Managers use downward communication when they assign goals to their employees, provide employees with job descriptions, inform them of organizational policies and procedures, point out problems that need attention, or evaluate their performance. Upward communication flows from employees to managers who rely on their employees for information. Some examples of upward communication include performance reports prepared by employees, suggestion boxes, employee attitude surveys, grievance procedures, manager-employee discussions, and informal group sessions in which employees have the opportunity to discuss problems with their manager or representatives of top-level management. Communication that takes place among employees on the same organizational level is called lateral communication. In today's dynamic environment, horizontal communications are frequently needed to save time and facilitate coordination. Cross-functional teams rely heavily on this form of communication interaction. However, conflicts can arise if employees don't keep their managers informed about decisions they've made or actions they've taken. Diagonal communication crosses both work areas and organizational levels. Because of its efficiency and speed, diagonal communication can be beneficial. Increased e-mail use facilitates diagonal communication. In many organizations, any employee can communicate by e-mail with any other employee, regardless of organizational work area or level, even with upper-level managers. However, diagonal communication also has the potential to create problems if employees don't keep their immediate managers informed. 113) The vertical and horizontal flows of organizational communication can be combined into a variety of patterns called communication networks. a. Chain network-Communication flows according to the formal chain of command, both downward and upward. If accuracy is important, the chain network works well. b. Wheel network-Communication flows between a clearly identifiable and strong leader and others in a work group or team. The leader serves as a hub through which communication passes. If having a strong, identifiable leader is important to the organization or work unit, the wheel network is the best communication network. Accuracy is also very high with the wheel network. c. All-channel network-Communication flows freely among all members of a work team. If high member satisfaction is a concern, the all-channel network is preferable. 114) The informal organizational communication network in organizations is known as the grapevine. The grapevine is active in almost every organization. It is an important source of information for employees, many of whom hear about important matters first through rumors or gossip on the grapevine. Acting as both a filter and a feedback mechanism, it pinpoints those bewildering issues that employees consider important. More importantly, from a managerial point of view, it is possible to analyze what is happening on the grapevine-what information is being
pass s to flow, and which individuals seem to be key information conduits. By staying aware of the grapevine's flow and ed, patterns, managers can identify issues that concern employees, and, in turn, use the grapevine to disseminate how important information. Because the grapevine can't be eliminated, managers should "manage" it as an important infor information network. mati Rumors that flow along the grapevine also can never be eliminated entirely. However, managers can minimize the on negative consequences of rumors by communicating openly, fully, and honestly with employees, particularly in seem situations where employees may not like proposed or actual managerial decisions. 115) Student answers may vary. However, it is a fact that the grapevine, an informal organizational network is part of every organization. In fact, it is an important source of information for the company. This makes it imperative for companies to try to understand its dynamics. Acting as both a filter and a feedback mechanism, it pinpoints those bewildering issues that employees consider important. More importantly, from a managerial point of view, it is possible to analyze what is happening on the grapevine-what information is being passed, how information seems to flow, and which individuals seem to be key information conduits. By staying aware of the grapevine's flow and patterns, managers can identify issues that concern employees, and, in turn, use the grapevine to disseminate important information. Because the grapevine can't be eliminated, managers should "manage" it as an important information network. However, managers can minimize the negative consequences of rumors. They can do so by communicating openly, fully, and honestly with employees, particularly in situations where employees may not like proposed or actual managerial decisions. Studies show that this is likely to be effective in engaging employees. 116) B 117) A 118) D 119) A 120) C 121) A 122) C 123) B 124) TRUE 125) TRUE 126) TRUE 127) TRUE 128) Managers are learning that new technology has created special communication challenges. The two main ones are (1) legal and security issues and (2) lack of personal interaction. Although e-mail is a quick and easy way to communicate, managers need to be aware of potential legal problems from inappropriate e-mail usage. Electronic information is potentially admissible in court. Security concerns are another issue managers face. Managers need to ensure that confidential information is kept confidential. Employee e-mails and blogs should not communicate-inadvertently or purposely-proprietary information. Corporate computer and e-mail systems should be protected against hackers (people who try to gain unauthorized access to computer systems) and spam (electronic junk mail). These are serious issues that managers and organizations must address if the benefits that communication technology offers are to be realized. Another communication challenge posed by the Internet age is the lack of personal interaction. Even when two people are communicating face-to-face, understanding is not always achieved. However, when communication takes place in a virtual environment, it can be really hard to achieve understanding and collaborate on getting work done. Some companies have gone so far as to ban e-mail on certain days of the week. Others have simply encouraged employees to collaborate more in person. Yet, there are situations and times when personal interaction isn't physically possible-when employees are spread across the continent or even across the globe. In those instances, real-time collaboration software (such as private workplace wikis, blogs, instant messengers, and other types of groupware) may be a better communication choice than sending an e-mail and waiting for a response. 129) A 130) B 131) C 132) C 133) TRUE
134) FALSE 135) FALSE 136) Most managers will tell you that becoming an effective communicator is one ingredient of a successful career. Because everything a manager does involves communication, improving these skills enhances one's readiness for promotions. a. Persuasion skills enable a person to influence others to change their minds or behavior. Managers must be able to get work done through others, which sometimes means getting those others to change behaviors. Strong persuasion skills accomplish this without damaging the relationship. b. Much of a manager's communication with other employees—at all levels—is through speaking. Most of this is interpersonal, with small groups or individually. Some may be through presentations. Discomfort with public speaking holds some employees back from those desired promotions. c. Communication that doesn't involve speaking will involve writing. Millennials especially take shortcuts in their writing which is fine when texting friends and family but unacceptable in business. Improving one's writing skills makes a more professional presentation and sheds a more favorable light on the sender of emails, texts, and memos. d. Because of the sheer quantity of emails a manager receives daily, it is important that the manager read quickly and understand clearly the language used in business correspondence and articles. Knowledge of industry jargon is necessary as is a robust vocabulary of non-technical words. Failure to keep up with the plethora of messages and work-related documents places the manager at a disadvantage.
Exam Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Individual behavior in organizations includes ________. 1) _______ A) strategies, norms, and roles B) structure, culture, and team building C) policies and procedures D) attitudes, learning, and motivation 2) The study of group behavior includes the study of ________. A) norms, roles, and leadership B) organization structure and culture C) attitudes and personality D) perception, motivation, and learning
2) _______
3) The goals of OB are to ________. A) recruit, select, and retain qualified employees B) design, produce, and market products desired by consumers C) explain, predict, and influence behavior D) identify social, environmental, and financial issues
3) _______
4) ________ is a performance measure of both the efficiency and effectiveness of employees. A) Organizational citizenship behavior B) Employee morale C) Job satisfaction D) Employee productivity
4) _______
5) ________ is defined as the failure to report to work. A) Negligence B) Tardiness C) Turnover
5) _______ D) Absenteeism
6) Andrew has been tracking how many positions he has to fill, and how many times he fills the same position. He is concerned that so many people are leaving his organization. Andrew is concerned about ________. A) turnover B) employee attitudes C) productivity D) absenteeism
6) _______
7) Which one of the following is true for organizational citizenship behavior (OCB)? A) OCB is the behavior leading to permanent withdrawal from an organization. B) OCB is discretionary behavior which promotes the effective functioning of the organization. C) OCB is a performance measure of efficiency. D) The requirements of OCB are spelled out in employee job profiles.
7) _______
8) Andrea closely monitors the job satisfaction of her subordinates because she believes ________. A) she will be rated in this area on her performance evaluation B) satisfied workers are more productive C) it is hard to discipline an employee because of the employee's attitude D) low satisfaction leads to counterproductive behaviors
8) _______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 9) Organizational behavior is concerned only with group interactions.
9) _______
10) The goals of organizational behavior can be stated as: If you can explain it, you can predict it. If you can predict it, you can influence it.
10) ______
11) Organizational citizenship behavior is discretionary behavior that is not part of an employee's
for mal job
___ ___
requirem 11) ents. 12) Organizational citizenship behavior impacts the success of the entire organization.
12) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 13) What is organizational behavior? How can the study of organizational behavior help managers? MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 14) The three components that make up an attitude are ________ components. 14) ______ A) intentional, reactive, and adjustable B) emotional, creative, and environmental C) active, behavioral, and adjustable D) cognitive, affective, and behavioral 15) The component of attitude that includes beliefs and opinions is the ________ component. A) cognitive B) mental C) behavioral D) affective
15) ______
16) Which component of attitude is reflected in the sentence, "This is the best way to get to our destination"? A) Emotive B) Cognitive C) Affective D) Behavioral
16) ______
17) The ________ component of attitude is based on emotions. A) cognitive B) spiritual C) behavioral
17) ______ D) affective
18) In the statement, "The highway is very busy at 5 p.m., and is scary to drive on, so I'll wait until 7 p.m. to go home," the word "scary" represents which component of an attitude? A) Cognitive B) Practical C) Behavioral D) Affective
18) ______
19) When someone chooses to act in a certain way, she is demonstrating the ________ component of her attitude. A) behavioral B) practices C) affective D) cognitive
19) ______
20) In the statement, "The highway is very busy at 5 p.m. and is scary to drive on, so I'll wait until 7 p.m. to go home," the phrase, "so I'll wait until 7 p.m. to go home," represents which component of an attitude? A) Behavioral B) Affective C) Emotive D) Cognitive
20) ______
21) The degree to which an employee identifies with his or her job or actively participates in it refers to the employee's ________. A) attitude B) job satisfaction C) organizational citizenship behavior D) job involvement
21) ______
22) The Hawthorne Studies proved that ________. A) a high level of productivity causes higher job satisfaction B) a high level of job satisfaction causes higher production C) there is no relationship between job satisfaction and productivity D) there is a correlation between job satisfaction and productivity
22) ______
23) Bryan has heard that one of his best subordinates is not happy with his job and is thinking of leaving the company. Which one of the following would help Bryan retain this employee? A) Find out which work incentive the employee values most. B) Reduce the employee's workload. C) Hint at a promotion in the future if the employee stays.
23) ______
D) Offer the employee a raise. 24) Brianne has been coming in late and producing less recently, obviously dissatisfied with her job. Her supervisor would like to know how to deal with these behaviors so they don't spread to other employees. His wisest course of action would be to ________. A) send her to HR for employee counseling B) discipline her for being late C) discover the source of her dissatisfaction D) ignore them and hope the situation resolves itself
24) ______
25) The degree to which an employee identifies with a particular organization and its goals and wishes to maintain membership in the organization is the employee's ________. A) organizational citizenship B) organizational commitment C) job satisfaction D) job involvement
25) ______
26) Which one of the following is true for satisfied employees with high organizational commitment? A) Lower rates of turnover and B) Higher rates of voluntary turnover. absenteeism. C) Lower levels of job involvement. D) Higher rates of cognitive dissonance.
26) ______
27) ________ is employees' general belief that their organization values their contribution and cares about their well-being. A) Organizational citizenship B) Perceived organizational support C) Job involvement D) Organizational commitment
27) ______
28) "Cody has retired on the job" is an expression used to describe ________. A) an employee who is disengaged B) someone who draws retirement income while continuing to work C) a person approaching full retirement age D) a person on extended medical leave
28) ______
29) Mary dislikes having to convince prospective customers to buy products that she believes are inferior to others in the market. However, she has sales targets for all products, superior or otherwise, that she must meet in order to receive her commission. Although Mary tries to meet the target sales for all products, she is torn between her beliefs and the actions she must take. This inconsistency or incompatibility is known as ________. A) difficult objectives B) management by objectives C) cognitive dissonance D) negative feedback
29) ______
30) The cognitive dissonance theory proposes that the intensity of the desire to reduce dissonance is determined by ________. A) awareness, status, and punishments B) resources, commitment, and organizational structure C) stability, position, and power D) importance, influence, and rewards
30) ______
31) The regular use of ________ can alert managers to potential problems and employees' intentions early enough to do something about them. A) employee benefit plans B) employee engagement C) attitude surveys D) performance incentives
31) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 32) Research indicates that satisfied employees have lower levels of turnover while dissatisfied employees have higher levels of turnover.
32) ______
33) Perceived organizational support is the degree to which an employee identifies with a particular organization and its goals.
33) ______
34) Low levels of perceived organizational support lead to lower turnover.
34) ______
35) The cognitive component of an attitude refers to the beliefs, opinions, knowledge, or information held by a person.
35) ______
36) Job satisfaction tends to increase as income increases.
36) ______
37) Satisfaction with one's job does not necessarily lead to lower absenteeism.
37) ______
38) Individuals who experience low job satisfaction are more likely to leave their jobs than individuals with high job satisfaction.
38) ______
39) An effective way to increase the job satisfaction of customer service representatives is to increase the level of satisfaction among customers.
39) ______
40) Feelings of fair treatment impact an employee's job satisfaction.
40) ______
41) Job satisfaction is a better predictor of voluntary turnover than organizational commitment.
41) ______
42) Employees with a high level of job involvement strongly identify with and really care about the kind of work they do.
42) ______
43) Highly engaged employees tend to have higher absenteeism but work harder when they are present.
43) ______
44) Cognitive dissonance is any incompatibility or inconsistency between attitudes or between behavior and attitudes.
44) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 45) Define attitudes. List and discuss the three components of attitudes and include an example of a statement that describes each component to support your answer. 46) Explain the three components of attitude. Give an example that incorporates all three elements. 47) Explain cognitive dissonance theory in brief. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 48) In the Myers-Briggs Type Indicator (MBTI®), "sensing" personality types are those who 48) ______ ________. A) have a high need for closure and show patience with routine details B) use reason and logic to handle problems C) see the big picture and dislike routine D) like solving new problems and dislike doing the same thing over and over again 49) As a manager, if you prefer to have a harmonious work environment and dislike reprimanding
you r
___ ___
subordin 49) ates, you would probably score high on the ________ aspect of the MBTI®. A) perception
B) intuition
C) feeling
D) thinking 50) ______
50) Which one of the following is true according to the MBTI ®? A) Judging types want control and prefer their world to be ordered. B) Feeling types use reason and logic to handle problems. C) Perceiving types are rigid and structured. D) Introverted types are practical and prefer routine and order. 51) If your boss could be described as flexible, adaptable, and tolerant, he or she would probably score high on which one of the following aspects of the MBTI ®? A) Feeling
B) Sensing
C) Perceiving
D) Extraversion
52) If you are a good planner and purposeful, you would probably score high on the ________ trait of MBTI®. A) judging
B) thinking
C) perceiving
51) ______
52) ______
D) introversion
53) Sandy is very good at precise work. She does not tire of repetitive work as easily as some of the others. However, when faced with a new problem that requires an innovative solution, her performance is not satisfactory. Sandy's personality is likely to be classified as a(n) ________ type. A) sensing B) introvert C) feeling D) intuitive
53) ______
54) Alan's temperament is not well-suited to being a researcher. He tends to dislike doing the same thing twice and has no patience to sort out information step-by-step. As a result, he often jumps to conclusions. Alan is most likely a(n) ________ type of personality. A) introversion B) intuition C) sensing D) feeling
54) ______
55) George gets along well with most people in the team. He is good at his job but needs to be reassured once in a while. Another of George's traits is that he is always trying to keep everyone happy. George can be described as a(n) ________ personality. A) intuitive B) sensing C) feeling D) introverted
55) ______
56) Doug is purposeful and an excellent planner. One thing that his team admires him for is his ability to sift through a whole lot of information to extract precisely what is needed for a job at hand. He is also a quick decision maker. Which one of the following personality types does Doug fit into? A) Extraverted B) Judging C) Sensing D) Perceptive
56) ______
57) The Big Five Model of personality includes ________. A) perception B) intuition C) extraversion
57) ______ D) judgment
58) In the Big Five Model of personality, ________ refers to the degree to which someone is good-natured, cooperative, and trusting. A) emotional stability B) extraversion C) conscientiousness D) agreeableness
58) ______
59) In the Big Five Model of personality, conscientiousness refers to ________. A) the degree to which someone is sociable, talkative, assertive, and comfortable in relationships with others B) the degree to which someone is reliable, responsible, dependable, persistent, and achievement oriented C) the degree of influence the individual believes he or she has over certain factors D) the degree to which someone is calm, enthusiastic, and secure (positive) or tense, nervous, depressed, and insecure (negative)
59) ______
60) According to the Big Five Model of personality, a person who has a wide range of interests and is imaginative, fascinated with novelty, artistically sensitive, and intellectual is described as ________. A) open to experience B) emotionally stable C) conscientious D) extraverted
60) ______
61) Darren enjoys many genres of music and art. He has visited several European countries. It is very likely Darren is high in ________. A) openness to experience B) conscientiousness C) emotional stability D) agreeableness
61) ______
62) It is very difficult to ruffle Doreen's feathers. She has been called a rock, steadfast, slow to anger, calm in the middle of the storm. Doreen is high in ________. A) thinking B) conscientiousness C) emotional stability D) sensing
62) ______
63) A manager makes decisions very quickly and requires little information for making the decisions. Which of the following is a likely reason for this? A) The manager has low self-esteem. B) The manager is high in risk-taking. C) The manager is high in emotional stability. D) The manager is high in self-management.
63) ______
64) When coworkers need help, they ask Edwina. She seems to know more about the job than everyone. She graduated with high honors from college and continues to learn all she can about a variety of interests. Edwina would score high in ________. A) openness to experience B) perception C) conscientiousness D) thinking
64) ______
65) Edward is the cheerleader type, always smiling, never makes an unkind statement, always looks for the good in people and situations. Edward is high in ________. A) emotional stability B) perception C) agreeableness D) feeling
65) ______
66) If you believe that you control your own destiny, which one of the following personality traits are you likely to possess? A) Internal locus of control B) External locus of control C) Risk aversion D) High self-esteem
66) ______
67) A person who believes that what happens to him is due to luck or chance is said to have a(n) ________. A) internal locus of control B) Machiavellian personality C) self-monitoring personality D) external locus of control
67) ______
68) According to research, employees who have a high internal locus of control ________. A) blame their bosses for poor performance more often than externals B) exhibit more satisfaction with their jobs than externals C) are more alienated from their work setting than externals D) are less involved in their jobs as compared to externals
68) ______
69) The words "I am the master of my fate, I am the captain of my soul" are consistent with someone who ________ A) is high in openness to experience B) has an internal locus of control C) is out of control D) has an external locus of control
69) ______
70) Peter, an assistant manager, exhibits a distinct lack of emotional involvement with his colleagues and subordinates. His entire focus is on achieving the goals he sets, no matter what course he has to take to get there. These traits lead an observer to conclude that Peter ________. A) has low self-esteem B) is high in Machiavellianism C) has an internal locus of control D) is high in self-monitoring
70) ______
71) An individual who is high in ________ is pragmatic, maintains emotional distance, and believes that ends can justify means. A) risk taking B) self-esteem C) Machiavellianism D) self-monitoring
71) ______
72) Which one of the following is true of a person who believes that "the ends justify the means"? A) He is likely to have an external locus of control. B) He is likely to be risk averse. C) He is likely to be high in Machiavellianism. D) He is likely to be low on self-confidence.
72) ______
73) Though clearly capable, Martina does not seem very confident of herself. She is always unsure of whether she can handle assignments that are difficult and as a result ends up choosing jobs that are fairly straightforward and involve routine work. She is also susceptible to evaluations from other people. Martina seems to have ________. A) high cognitive dissonance B) low self-esteem C) a high Machiavellianism score D) low self-monitoring
73) ______
74) If you like yourself, then your personality would be described as having ________. A) high self-esteem B) a high Machiavellianism score C) an external locus of control D) an internal locus of control
74) ______
75) People with high self-esteem ________. A) are more likely to take unpopular stands B) are more likely to seek approval from others C) are more susceptible to external influence D) are more prone to conform to the beliefs of those they respect
75) ______
76) ________ is a personality trait that measures an individual's ability to adjust his or her behavior
acc ording
to 76) external situation al factors. A) Self-management C) Self-esteem
___ ___
B) Self-monitoring D) Self-awareness
77) A person who can adapt and adjust behavior to external factors has ________. A) an internal locus of control B) high risk-taking ability C) low self-esteem D) high self-monitoring
77) ______
78) Sarah, the floor supervisor, seems to be a different person depending on whom she is with and what the situation demands. She has the ability to adjust her behavior as and when required. This indicates that she ________. A) is low on Machiavellianism B) is high in self-monitoring C) has low self-esteem D) has a high need for affiliation
78) ______
79) Kevin is a whirlwind as a research and development supervisor. His colleagues are surprised that even though he makes decisions very quickly and always with less information than others, his decisions are as good as anybody else's. This information implies that Kevin has ________. A) low cognitive dissonance B) high Machiavellianism C) high risk-taking ability D) high intuition
79) ______
80) A person with a grandiose sense of self-importance who is arrogant and requires an excessive amount of admiration is a ________. A) sociopath B) psychopath C) narcissist D) Machiavellian
80) ______
81) People who identify opportunities, show initiative, take action, and persevere until meaningful change occurs are said to have ________ personalities. A) reactive B) self-aware C) agreeable D) proactive
81) ______
82) The rest of the world sees problems; Martin sees opportunity and believes in his ability to capitalize on the opportunity. He made money in real estate and lost it when the recession hit. But soon he found another way to earn a living and has become wealthy again. Martin is high in ________. A) external locus of control B) self-esteem C) Machiavellianism D) positive psychological capital
82) ______
83) Emotional intelligence has been shown to be ________ related to job performance ________. A) positively;only in mechanistic organizations B) positively;at all levels C) negatively;at all levels D) negatively;in middle management only
83) ______
84) The ability to sense how others are feeling is known as ________. A) sympathy B) empathy C) agreeableness D) relationship management
84) ______
85) Holland's theory proposes that satisfaction is highest and turnover lowest when ________. A) personality and occupation are compatible B) an employee can adjust behavior to external factors
85) ______
C) an employee is social and realistic D) the locus of control is internal 86) What is a key point of Holland's theory? A) There are no intrinsic differences in personality among individuals. B) People in job environments compatible with their personality types should be more satisfied. C) Employee turnover is highest when personality and occupation are compatible. D) All jobs are relatively the same, it is personality types that differ.
86) ______
87) Bridget prefers rule-regulated, orderly, and unambiguous activities. She doesn't have a lot of imagination but could be described as conforming and efficient. Which one of the following describes Bridget's personality? A) Conventional B) Anti-social C) Dull D) Conservative
87) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 88) There is ample evidence to support the validity of the Myers-Briggs Type Indicator as a measure of personality.
88) ______
89) Extraversion is the degree to which someone is sociable, talkative, assertive, and comfortable in relationships with others.
89) ______
90) In the Big Five Model, emotional security was found to be positively related to job performance.
90) ______
91) Understanding the personality traits assessed by the MBTI® helps managers understand the
91) ______
way people interact and solve problems. 92) The one trait most likely to predict job performance is emotional stability.
92) ______
93) A person who rates as being high in Machiavellianism would use any means to accomplish a task.
93) ______
94) Individuals with low self-esteem are more susceptible to external influence than are people with high self-esteem.
94) ______
95) High self-monitors can't adjust their behavior and there's high behavioral consistency between who they are and what they do.
95) ______
96) Emotional intelligence appears to be relevant for positions that must work in isolation.
96) ______
97) Matching personalities of employees with the requirements of particular jobs leads to organizational success.
97) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 98) Describe the Big Five Model. List and discuss the five personality traits that are based on the Big Five Model of personality. 99) In a short essay, list and discuss five personality traits (not the Big Five) that have proven to be powerful in explaining individual behavior in organizations. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 100) ________ is the process of organizing and interpreting sensory impressions to give meaning to the
enviro
nment.
____ _
100) A) Cognition
B) Attribution
C) Perception
D) Selection
101) ________ theory explains how we judge people differently depending on what meaning we ascribe to a given behavior. A) Stereotype B) Attribution C) Behavior D) Perception
101) _____
102) If everyone who's faced with a similar situation responds in the same way, we can say the behavior shows ________. A) internal attribution B) consensus C) consistency D) reliability
102) _____
103) People say she will be late for her own funeral. It doesn't matter whether it's a team meeting or a meeting with her son's teacher, Malinda will be late. But she always has a plausible reason, one that is never her fault. Malinda's behavior shows ________. A) high consensus B) high distinctiveness C) low consensus D) low distinctiveness
103) _____
104) People in the accounting department generally arrive 15 minutes early. So does Valerie, who is late today. This situation shows ________. A) high consensus B) low consistency C) low consensus D) high consistency
104) _____
105) Underestimating the influence of external factors and overestimating the influence of internal factors when making judgments about others is known as the ________. A) self-serving bias B) locus of control error C) halo effect D) fundamental attribution error
105) _____
106) "He could do it if he wanted to. He just doesn't like that part of his job, that's all." A statement like this from a supervisor indicates ________. A) the horn effect B) a halo effect C) a fundamental attribution error D) locus of control error
106) _____
107) ________ is the tendency for individuals to attribute their own successes to internal factors such as ability or effort while putting the blame for personal failure on external factors such as luck. A) Self-serving bias B) Locus of control error C) Fundamental attribution error D) Stereotyping
107) _____
108) In ________, the observer's perception of others is influenced more by the observer's own characteristics than by those of the person observed. A) stereotyping B) self-serving bias C) the halo effect D) assumed similarity
108) _____
109) James, a new manager, is a very hard-working. He believes that people who are hardworking will always make sure that the work gets done on time. Even when he is out of the office, he supposes that his subordinates are working diligently because he works diligently most of the time. James's perceptions of his employees are based on ________. A) assumed similarity B) stereotyping C) halo effect D) selective perception
109) _____
110) Anne prefers one-page memos with only the main points of the issue. As a manager, she has limited amounts of time to read about internal problems. So when she prepares memos for her
boss, provi she des a
brief 110) outline of the situation to spare her boss the agony of having to read the boring details. Anne has succumb ed to ________ . A) stereotyping C) the halo effect
____ _
B) assumed similarity D) the liking effect
111) When people judge someone on the basis of their perception of a group to which that person belongs, they are using the shortcut called ________. A) assumed similarity B) the halo effect C) stereotyping D) self-serving bias
111) _____
112) "Everyone knows Plutonians are sneaky little wretches who will steal you blind if you aren't careful. Polly is a Plutonian. Therefore, Polly is a thief." This line of reasoning is typical of ________. A) the halo effect B) group association C) stereotyping D) assumed similarity
112) _____
113) Bill, a manager at a consulting firm, has been keenly analyzing the performance of a new recruit who turns out to be extremely intelligent. He concludes that she will be a good manager in the future even though her interpersonal skills are not half as impressive. This conclusion on Bill's part seems to be the result of ________. A) stereotyping B) the halo effect C) selective perception D) assumed similarity
113) _____
114) By using ________, we form a general impression about a person based on only a single characteristic, such as intelligence or appearance. A) the halo effect B) assumed similarity C) selectivity D) stereotyping
114) _____
115) During the interview Ken was so impressed with Barbie's knowledge of aesthetic engineering he offered her the job on the spot. Unfortunately her job performance did not meet his expectations. Ken may have fallen victim to ________. A) assumed similarity B) the halo effect C) stereotyping D) selective perception
115) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 116) There is no reality beyond perception; we interpret what we see and call it reality.
116) _____
117) The age of the perceiver can influence the perceiver's perceptions.
117) _____
118) Consensus refers to whether an individual displays different behaviors in different situations.
118) _____
119) When we make judgments about the behavior of other people, we tend to underestimate the influence of external factors and to overestimate the influence of internal factors. This tendency is called the self-serving bias.
119) _____
120) "All attractive people are productive. Abigail is attractive; therefore, Abigail is productive." This is an example of the halo effect.
120) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 121) In a short essay, list and discuss three shortcuts frequently used in judging others. Discuss the impact these shortcuts have on the management of employees. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 122) Operant conditioning argues that ________. 122) _____ A) behavior patterns are established in childhood B) behavior is learned through observation C) all behavior has unintended consequences D) behavior is a function of its consequences 123) ________ behavior is voluntary or learned behavior. A) Reflexive B) Reactive C) Dissonant
123) _____ D) Operant
124) Donna has just moved to the city from a small town and gets a job as an assistant in a law firm. Not being very familiar with the way things work in the corporate world, she watches her colleagues closely and tries to learn from their mistakes and achievements. This can be described as ________. A) positive reinforcement B) reflexive learning C) motor reproduction D) social learning
124) _____
125) The influence of models depends on how well an individual remembers the model's behavior. This refers to the individual's ________. A) observational skills B) attentional process C) motor reproduction process D) retention process
125) _____
126) After watching a behavior in a social learning situation, a person can demonstrate learning by performing the behavior. This is known as learning by ________. A) operant conditioning B) motor reproduction C) reinforcement D) retention
126) _____
127) When a manager molds an individual's behavior by guiding his or her learning in graduated steps, he is using ________. A) retention processes B) motor reproduction processes C) shaping processes D) programmed learning
127) _____
128) If an employee does not exhibit a desired behavior, a manager might use ________. A) positive reinforcement by reducing the threat of a punishment B) shaping to guide the employee to learn the desired behavior C) programmed learning to encourage positive results D) negative reinforcement to increase the recurrence of the behavior
128) _____
129) "Any additional violations of company policy will result in escalating disciplinary action up to and including termination." This statement found on many corrective action forms, is an example of ________. A) punishment B) extinction C) negative reinforcement D) positive reinforcement
129) _____
130) She was only three but already had a temper. Her favorite outburst was to stomp her foot. So her mother made her stomp and stomp and stomp until there was no more stomping left in her. This mother was using ________ to alter her daughter's behavior. A) positive reinforcement B) extinction C) negative reinforcement D) punishment
130) _____
131) Eliminating any reinforcement that's maintaining an undesirable behavior is called ________. A) punishment B) extinction C) extraction D) elimination
131) _____
132) The toddler knew if he held his breath his parents would yield to his demands. But this time they returned to their newspapers and gave the child no further notice. These parents were engaging in ________. A) positive reinforcement B) punishment C) extinction D) negative reinforcement
132) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 133) Operant behavior is reflexive or unlearned behavior.
133) _____
134) Operant conditioning happens when we take any sort of action.
134) _____
135) The influence that models have on an individual is determined by the amount of attention the model gives to the learner.
135) _____
136) Both positive and negative reinforcement result in learning.
136) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 137) Define learning and explain the two learning theories that are relevant to understanding how and why individual behavior occurs. 138) Richard is the manager of the sales department in his company. He notices that several of the salespeople reporting to him are taking it easy. Their focus is to just meet the sales target and take no extra initiative to improve sales or their individual performances. As a result, the department's performance is declining. Explain how Richard can encourage his salespeople to improve their performances using the shaping techniques.
1) D 2) A 3) C 4) D 5) D 6) A 7) B 8) B 9) FALSE 10) TRUE 11) TRUE 12) TRUE 13) Organizational behavior is a field of study that is concerned specifically with the actions of people at work. It focuses primarily on two areas, individual behavior and group behavior. Group behavior includes norms, roles, team building, leadership, and conflict. The goals of organizational behavior are to explain, predict, and influence behavior. Managers need to be able to explain why employees engage in some behaviors rather than others, predict how employees will respond to various actions the manager might take, and influence how employees behave. 14) D 15) A 16) B 17) D 18) D 19) A 20) A 21) D 22) D 23) A 24) C 25) B 26) A 27) B 28) A 29) C 30) D 31) C 32) TRUE 33) FALSE 34) FALSE 35) TRUE 36) TRUE 37) TRUE 38) TRUE 39) TRUE 40) TRUE 41) FALSE 42) TRUE 43) FALSE 44) TRUE 45) Attitudes are evaluative statements – either favorable or unfavorable – concerning objects, people, or events. They reflect how an individual feels about something. When a person says, "I like my job," (s)he is expressing an attitude about work. The three components that make up attitudes are cognition, affect, and behavior. The cognitive
com made up of the beliefs, opinions, knowledge, or information held by a person. The belief that "discrimination is pone wrong" illustrates cognition. The affective component of an attitude is the emotional or feeling part of an attitude. nt of This component would be reflected by the statement, "I don't like Jon because he discriminates against minorities." an Finally, affect can lead to behavioral outcomes. The behavioral component of an attitude refers to an intention to attitu behave in a certain way toward someone or something. For instance, "I might choose to avoid Jon because of my de is feelings about him" is an example of the behavioral component of an attitude. 46) An attitude is made up of cognitive, affective, and behavioral components. The cognitive component refers to the beliefs, opinions, knowledge, or information held by a person. The affective component is the emotional or feeling part. The behavioral component refers to an intention to behave in a certain way toward someone or something. [Students' examples will vary but must include all three components.] For example, Mary may believe the use of profanity has no place in business (cognitive). John tends to use profanity profusely so Mary dislikes John (affective). As a result, Mary avoids John (behavioral). 47) Cognitive dissonance theory sought to explain the relationship between attitudes and behavior. Cognitive dissonance is any incompatibility or inconsistency between attitudes or between behavior and attitudes. The theory argued that inconsistency is uncomfortable and that individuals will try to reduce the discomfort and thus, the dissonance. How people cope with cognitive dissonance depends on several factors. The theory proposed that how hard we'll try to reduce dissonance is determined by three things: (1) the importance of the factors creating the dissonance, (2) the degree of influence the individual believes he or she has over those factors, and (3) the rewards that may be involved in dissonance. If the factors creating the dissonance are relatively unimportant, the pressure to correct the inconsistency will be low. However, if those factors are important, individuals may change their behavior, conclude that the dissonant behavior isn't so important, change their attitude, or identify compatible factors that outweigh the dissonant ones. How much influence individuals believe they have over the factors also affects their reaction to the dissonance. If they perceive the dissonance is something about which they have no choice, they won't be receptive to attitude change or feel a need to do so. If, for example, the dissonance-producing behavior was required as a result of a manager's order, the pressure to reduce dissonance would be less than if the behavior had been performed voluntarily. Although dissonance exists, it can be rationalized and justified by the need to follow the manager's orders-that is, the person had no choice or control. Finally, rewards also influence the degree to which individuals are motivated to reduce dissonance. Coupling high dissonance with high rewards tends to reduce the discomfort by motivating the individual to believe that there is consistency. 48) A 49) C 50) A 51) C 52) A 53) A 54) B 55) C 56) B 57) C 58) D 59) B 60) A 61) A 62) C 63) B 64) C 65) C 66) A 67) D 68) B
69) B 70) B 71) C 72) C 73) B 74) A 75) A 76) B 77) D 78) B 79) C 80) C 81) D 82) B 83) B 84) B 85) A 86) B 87) A 88) FALSE 89) TRUE 90) FALSE 91) TRUE 92) FALSE 93) TRUE 94) TRUE 95) FALSE 96) FALSE 97) TRUE 98) In recent years, research has shown that the five basic personality dimensions of the Big Five Model underlie all others and encompass most of the significant variation in human personality. The Big Five provide more than just a personality framework. Research has shown that important relationships exist between these personality dimensions and job performance. a. Extraversion-the degree to which someone is sociable, talkative, and assertive. b. Agreeableness-the degree to which someone is good-natured, cooperative, and trusting. c. Conscientiousness-the degree to which someone is responsible, dependable, persistent, and achievement oriented. d. Emotional stability-the degree to which someone is calm, enthusiastic, and secure (positive) or tense, nervous, depressed, and insecure (negative). e. Openness to experience-the degree to which someone is imaginative, artistically sensitive, and intellectual. 99) a. People with an internal locus of control believe that they control their own fate. Those with an external locus of control see themselves as pawns, believing that what happens to them in their lives is due to luck or chance. Research evidence indicates that employees who rate high on externality are less satisfied with their jobs, more alienated from the work setting, and less involved in their jobs than are those who rate high on internality. b. A high-Machiavellian person is pragmatic, maintains emotional distance, and believes that ends can justify means. In jobs that require bargaining skills or that have substantial rewards for winning, high Machs are productive. In jobs in which ends do not justify the means or that lack absolute measures of performance, it's difficult to predict the performance of high Machs. c. People differ in the degree to which they like themselves. This trait, called self-esteem is directly related to expectations for success. High SEs believe they possess the ability to succeed at work. High SEs will take more risks in job selection and are more likely to choose unconventional jobs than are people with low SE. High SEs are more satisfied with their jobs.
d. tive to external cues and can behave differently in different situations. They are capable of presenting striking High contradictions between their public persona and their private selves. Low self-monitors cannot adjust their self- behavior. They tend to display their true dispositions and attitudes in every situation, and there's high behavioral moni consistency between who they are and what they do. tors e. People differ in their willingness to take chances. Differences in the propensity to assume risk have been shown are to affect how long it takes managers to make a decision and how much information they require before making very their choice. To maximize organizational effectiveness, managers should try to align employee risk-taking sensi propensity with specific job demands. 100) C 101) B 102) B 103) D 104) A 105) D 106) C 107) A 108) D 109) A 110) B 111) C 112) C 113) B 114) A 115) B 116) TRUE 117) TRUE 118) FALSE 119) FALSE 120) FALSE 121) Perceiving and interpreting people's behavior is a lot of work, so we use shortcuts to make the task more manageable. These techniques can be valuable when they let us make accurate interpretations quickly and provide valid data for making predictions. However, they aren't perfect. It's easy to judge others if we assume that they're similar to us. In assumed similarity, the observer's perception of others is influenced more by the observer's own characteristics than by those of the person observed. When we judge someone on the basis of our perception of a group (s)he is part of, stereotyping is the shortcut being used. When individuals form a general impression about a person on the basis of a single characteristic, such as intelligence, sociability, or appearance, the halo effect is the influencing factor. Managers need to recognize that their employees react to perceptions, not to reality. So whether a manager's appraisal of an employee is actually objective and unbiased or whether the organization's wage levels are among the highest in the community is less relevant than what employees perceive them to be. If individuals perceive appraisals to be biased or wage levels as low, they will behave as if those conditions actually exist. Employees organize and interpret what they see, so there is always the potential for perceptual distortion. 122) D 123) D 124) D 125) D 126) B 127) C 128) B 129) C 130) D
131) B 132) C 133) FALSE 134) FALSE 135) FALSE 136) TRUE 137) Learning is any relatively permanent change in behavior that occurs as a result of experience. The two learning theories relevant to understanding how and why individual behavior occurs are operant conditioning and social learning. Operant conditioning argues that behavior is a function of its consequences. People learn to behave to get something they want or to avoid something they don't want. Operant behavior describes voluntary, or learned, behavior in contrast to reflexive or unlearned behavior. The tendency to repeat learned behavior is influenced by the reinforcement or lack of reinforcement that happens as a result of the behavior. Reinforcement, therefore, strengthens a behavior and increases the likelihood that it will be repeated. The view that we can learn both through observation and direct experience is called social learning theory. The influence of others is central to the social learning viewpoint. The amount of influence that these models will have on an individual is determined by four processes: attentional processes, retention processes, motor reproduction processes, and reinforcement processes. 138) Student answers may vary. The tendency to repeat learned behavior is influenced by reinforcement or lack of reinforcement that happens as a result of the behavior. Reinforcement strengthens a behavior and increases the likelihood that it will be repeated. Lack of reinforcement weakens a behavior and lessens the likelihood that it will be repeated. When a behavior is followed by something pleasant, it's called positive reinforcement. Positive reinforcement increases the likelihood that the desired behavior will be repeated. To positively reinforce good performances, Richard can offer an incentive for each sale above a certain target. Rewarding a response by eliminating or withdrawing something unpleasant is negative reinforcement. To negatively reinforce good performances, Richard can offer to do away with penalties for tardiness. The desired behavior (better performance) is being encouraged by the withdrawal of something unpleasant (penalties for tardiness). Punishment penalizes undesirable behavior and will eliminate it. To use punishment, Richard can penalize all salespeople who sell below a specified target each month. Eliminating any reinforcement that's maintaining a behavior is called extinction. When a behavior isn't reinforced, it gradually disappears. He could analyze the situation to find out what encourages the salespeople to perform poorly and then use extinction to eliminate the cause of the poor performance. However, as Richard is trying to encourage a positive behavior, he might not be able to use extinction. Both positive and negative reinforcement result in learning. They strengthen a desired behavior and increase the probability that the desired behavior will be repeated. Both punishment and extinction also result in learning but do so by weakening an undesired behavior and decreasing its frequency.
Exam Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The ________ element in the definition of motivation is a measure of intensity, drive, and vigor. 1) _______ A) energy B) persistence C) effort D) direction TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 2) Some people are motivated and some are not.
2) _______
3) The definition of motivation has three key elements: effort, direction, and persistence.
3) _______
4) In the study of motivation, quality is irrelevant to the energy element.
4) _______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 5) Define motivation and discuss the three elements of motivation. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 6) In Maslow's hierarchy of needs theory, ________ needs form the lowest or foundational step in 6) _______ the hierarchy. A) psychological B) psychographic C) physiological D) psychomotor 7) Matthew is worried that he will not be able to pay his mortgage and feed his family since he was laid off from his production job. Which one of Maslow's levels of need is a concern to Matthew? A) Esteem B) Physiological C) Psychological D) Self-actualization
7) _______
8) According to Maslow's hierarchy of needs theory, when an employer provides his employees health insurance, he is taking care of their ________ needs. A) safety B) social C) esteem D) self-actualization
8) _______
9) In the context of Maslow's hierarchy of needs theory, when a company has a space where employees can meet during breaks and catch up with each other, the company is taking care of the employees' ________ needs. A) social B) self-actualization C) psychological D) safety
9) _______
10) In the context of Maslow's hierarchy of needs theory, when a company names an "Employee of the Month" and "Employee of the Quarter," the company is addressing employees' ________ needs. A) self-actualization B) psychological C) safety D) esteem
10) ______
11) According to Maslow's hierarchy of needs theory, a person's needs for self-respect, autonomy, achievement, status, recognition, and attention constitute his ________ needs. A) self-actualization B) safety C) esteem D) social
11) ______
12) Marlin, a physicist in a large corporation, has been asked by his professional association to present a scientific paper at the national convention. This type of recognition will help Marlin
fulfihis ll _______
___ ___
_ needs. 12) A) social C) psychological
B) self-actualization D) esteem
13) According to Maslow's hierarchy of needs theory, a person's needs for growth, achieving one's potential, and self-fulfillment constitute his or her ________ needs. A) social B) psychological C) self-actualization D) esteem
13) ______
14) With its motto "Be All that You Can Be," the United States Army encouraged recruits to fulfill their ________ needs. A) self-actualization B) psychological C) physiological D) esteem
14) ______
15) Which one of the following needs is the highest in Maslow's hierarchy of needs theory? A) Safety needs B) Esteem needs C) Self-actualization needs D) Social needs
15) ______
16) Which one of the following needs is a lower-order need in Maslow's hierarchy of needs theory? A) Self-actualization B) Esteem C) Safety D) Social
16) ______
17) Which one of the following needs is a higher-order need in Maslow's hierarchy of needs theory? A) Esteem B) Power C) Safety D) Physiological
17) ______
18) According to Maslow's hierarchy of needs theory, ________ needs are predominantly satisfied externally while ________ needs are satisfied internally. A) physiological; safety B) safety; self-actualization C) social; safety D) self-actualization; physiological
18) ______
19) Joe watches his youngest employees like a mother hen to make sure they stay on task and off their cell phones. Joe is behaving like a ________ manager. A) Theory Y B) Two-factor C) Theory Z D) Theory X
19) ______
20) McGregor's Theory X assumes that employees ________. A) prefer autocratic supervisors B) enjoy work C) need to be closely controlled to work effectively D) seek out and accept responsibility
20) ______
21) McGregor's Theory Y assumes that employees ________. A) have little ambition B) need to be closely controlled to work effectively C) want to avoid responsibility D) enjoy work
21) ______
22) Irene, CEO of a small company, strongly believes in Douglas McGregor's assumptions about human nature. Which one of the following management practices is Irene most likely to favor to maximize employee motivation? A) Participatory management. B) Making jobs narrower in scope and shallow in depth. C) A stringent system of monitoring and controlling employees.
22) ______
D) A top-down decision-making structure. 23) John knows his more experienced workers don't need him to "babysit" them; he trusts them to know what to do, how to do it, and to get it done on time. In this respect, John is a ________ manager. A) Theory Z B) Theory Y C) Two-factor D) Theory X
23) ______
24) Frederick Herzberg's two-factor theory proposes that ________. A) extrinsic factors have the maximum effect on job satisfaction B) intrinsic factors have little effect on job satisfaction C) intrinsic factors cause job dissatisfaction D) extrinsic factors are associated with job dissatisfaction
24) ______
25) According to Herzberg's two-factor theory, which one of the following is a hygiene factor? A) Responsibility B) Recognition C) Working conditions D) Advancement
25) ______
26) According to Herzberg's two-factor theory, which one of the following is a motivator? A) Salary B) Responsibility C) Security D) Working conditions
26) ______
27) Herzberg called the factors that create job dissatisfaction ________ factors; when these factors are adequate, people won't be dissatisfied, but they won't be satisfied either. A) motivating B) intrinsic C) dissatisfiers D) hygiene
27) ______
28) Which one of the following is true about Herzberg's two-factor theory? A) Herzberg believed that the factors that lead to job satisfaction were the same as those that lead to job dissatisfaction. B) Satisfaction is not the opposite of dissatisfaction. C) To motivate people, Herzberg suggested emphasizing the hygiene factors of a job. D) According to Herzberg, removing dissatisfying characteristics from a job will invariably make that job more satisfying and motivating.
28) ______
29) The employees at KLM Company are complaining that the supervisors tend to pick favorites within their departments. Company policies are not equally enforced and the favorites are not disciplined for safety violations. These employees are complaining about ________. A) equity theory B) intrinsic factors C) Theory X management D) hygiene factors
29) ______
30) The three-needs theory of motivation states that there are three ________ needs that are major motivators in work. A) safety B) innate C) psychological D) acquired
30) ______
31) Which one of the following are the three needs identified in the three-needs theory of motivation? A) Need for power, need for affirmation, need for affiliation. B) Need for power, need for achievement, need for affection. C) Need for achievement, need for power, need for affiliation. D) Need for achievement, need for admiration, need for power.
31) ______
32) According to the three-needs theory, the need for ________ is the drive to succeed and excel in relation to a set of standards.
32) ______
A) control
B) power
C) affiliation
D) achievement
33) The need for ________ is similar to Maslow's need for ________. A) affiliation; safety B) affirmation; esteem C) achievement; self-actualization D) power; esteem
33) ______
34) According to the three-needs theory, the need for ________ is the need to make others behave in a way that they would not have behaved otherwise. A) control B) achievement C) leadership D) power
34) ______
35) Tiffany is usually the person who takes charge of the situation and gets people moving toward the group's objective. Tiffany probably has a high need for ________. A) admiration B) achievement C) control D) power
35) ______
36) According to the three-needs theory, the need for ________ is the desire for friendly and close interpersonal relationships. A) achievement B) affiliation C) belonging D) affection
36) ______
37) Bob is a social butterfly. He often leaves his workstation to chat with coworkers. He volunteers for every problem-solving team and enjoys planning the annual summer employee picnic. Bob has a ________. A) high need for affiliation B) low need for safety C) high need for esteem D) low need for power
37) ______
38) People with a high need for achievement ________. A) prefer moderately challenging goals B) emphasize the rewards of success C) make good managers, especially in large organizations D) emphasize helping others accomplish their goals
38) ______
39) You are acting as manager and mentor to Melanie, an employee who has been identified as a high achiever. According to McClelland's three-needs theory, which one of the following measures would most help you motivate Melanie to do her best? A) Giving her a managerial position that requires her to help others accomplish their goals. B) Giving her a job that holds her personally responsible for finding solutions to problems. C) Setting goals that are just out of her reach. D) Promising her a promotion and a raise if she reaches her targets.
39) ______
40) According to the three-needs theory, the best managers tend to be ________ in the need for ________ A) high; achievement B) low; power C) high; affection D) low; affiliation
40) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 41) According to Maslow's hierarchy of needs theory, lower-order needs are predominantly satisfied internally while higher-order needs are satisfied externally.
41) ______
42) According to Maslow's hierarchy of needs theory, once a need is substantially satisfied, that need no longer motivates the individual.
42) ______
43) Joseph, a line manager at a production facility, believes that his workers have little drive and will not work unless he pushes them. Therefore, he closely monitors and controls their work and
disc nes ipli those
who do 43) not meet his standard s. Joseph is a Theory Y manager.
___ ___
44) Research clearly indicates that the Theory Y manager is more effective in motivating employees than the Theory X manager.
44) ______
45) Frederick Herzberg found that when employees were dissatisfied, they tended to cite extrinsic factors arising from the job context such as company policy and administration, supervision, interpersonal relationships, and working conditions.
45) ______
46) Despite the quantity of empirical evidence in its support, managers have largely ignored Herzberg's two factor theory when designing jobs.
46) ______
47) People with a high need for achievement strive for the trappings and rewards of success rather than for personal accomplishment.
47) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 48) Write a short essay on Maslow's hierarchy of needs by first describing the needs and then discussing how these needs are interrelated according to the theory. How can managers use this theory to motivate employees? 49) As manager of a large team of engineers, you notice that your team is falling short of its goals primarily because several team members are either not motivated to put in their best or are downright dissatisfied with their jobs. You have decided to follow Herzberg's two-factor theory to motivate your employees. What steps can you take to maximize motivation? 50) Michelle supervises six very diverse workers. They are male, female, older, younger, different ethnic groups and nationalities, and in different life stages. How might Michelle use the various theories of motivation to keep her workers inspired? MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 51) Goal-setting theory says that ________. 51) ______ A) goals should be loosely defined and moderately challenging to maximize motivation B) to be effective, goals set should be easily achievable for the top performers C) a generalized goal of "do your best" is likely to be most effective in ensuring high performance D) difficult goals, when accepted, result in higher performance than do easy goals 52) The goal-setting theory states that ________. A) in order to maximize performance, goals must not be made public B) motivation is maximized by setting moderately challenging goals C) employee participation in goal-setting is not always necessary for ensuring performance D) self-generated feedback is largely ineffective as a motivator
52) ______
53) Goal-setting theory assumes that an individual is committed to the goal. Commitment is most likely when ________. A) the individual has low self-efficacy
53) ______
B) goals are not made public C) the individual has an internal locus of control D) goals are assigned and not self-set 54) The goal-setting theory has the most value when ________. A) the individual is a high achiever B) commitment to goals is made public C) the goals are assigned to the individual D) the individual has low self-efficacy
54) ______
55) The goal-setting theory has most value in countries where ________. A) there is high uncertainty avoidance B) subordinates are reasonably independent C) individuals are low in assertiveness D) there is high power distance
55) ______
56) At his last performance evaluation, Elliott agreed to earn 20 continuing education credits before his next annual review. Ten months later, he still has not earned any. From this lack of action, we can infer that ________. A) Elliott is low in self-efficacy B) Elliott works in a low uncertainty avoidance culture C) Elliott's manager is a Theory Y manager D) Elliott was not committed to the goal
56) ______
57) In a familiar children's book, a little locomotive was asked to pull a heavy train up a steep mountain. The "little engine," as he was called, kept telling himself "I think I can. I think I can." The little engine was ________. A) high in self-efficacy B) low in commitment C) high in need for affiliation D) low in risk avoidance
57) ______
58) ________ theory says that behavior is a function of its consequences. A) Expectancy B) Reinforcement C) Equity
58) ______ D) Two-factor
59) In the context of the reinforcement theory, reinforcers are ________. A) the supervisors or managers who have the responsibility of monitoring and reinforcing desired employee behavior B) the specific, unambiguous goals that have been set for employees as a standard for measuring their performance C) those consequences that immediately follow a behavior and increase the probability that the behavior will be repeated D) punishments or rewards that are given out for negative or positive employee behavior, respectively
59) ______
60) To help her new supervisors remember the concept of reinforcement theory, Carol told them to remember this: ________. A) What gets measured gets monitored B) No good deed goes unpunished C) Whatever can go wrong, will D) What gets rewarded gets repeated
60) ______
61) Which one of the following actions accurately reflects the reinforcement theory of motivation? A) A company setting specific and difficult goals and ensuring that employees accept them. B) A company initiating a process of job redesign to engage its employees better. C) A company's policy of cutting a day's pay if an employee reports to work later than 10.30 A.M. D) A company's policy of giving its sales staff cash coupons for exceeding their daily targets.
61) ______
62) The way tasks are combined to form complete jobs is referred to as ________. A) job design B) job rotation C) job evaluation D) job specification
62) ______
63) ________ refers to the number of different tasks required in a job and the frequency with which those tasks are repeated. A) Job enlargement B) Job enrichment C) Job depth D) Job scope
63) ______
64) ________ refers to the horizontal expansion of a job by increasing the number of different tasks required in a job and the frequency with which those tasks are repeated. A) Job enlargement B) Job depth C) Job enrichment D) Job scope
64) ______
65) ________ refers to the vertical expansion of a job by adding planning and evaluating responsibilities. A) Job enlargement B) Job scope C) Job depth D) Job enrichment
65) ______
66) ________ refers to the degree of control employees have over their work. A) Task significance B) Job depth C) Job scope D) Task identity
66) ______
67) Which one of the following is true about job enlargement and job enrichment? A) Research shows that job enrichment is very useful in improving the quality of work of employees. B) Expanding the scope of knowledge used in a job leads to more job satisfaction, enhanced customer service, and fewer errors. C) Job enlargement efforts that focus solely on increasing the number of tasks are largely effective in increasing employee motivation. D) Research shows that job enrichment improves employee motivation and satisfaction.
67) ______
68) In the job characteristics model, ________ refers to the degree to which a job requires completion of a whole and identifiable piece of work. A) autonomy B) task identity C) task significance D) skill variety
68) ______
69) The last worker in the assembly line put on the tires and tightened the lug nuts. When asked what he did, he replied, "I build tractors." For this worker, his position included ________. A) high autonomy B) high task variety C) high feedback D) high task identity
69) ______
70) In the job characteristics model, task significance refers to the degree to which a job ________. A) has a substantial impact on the lives or work of other people B) provides freedom, independence, and discretion to the individual in carrying out the work C) requires completion of a whole and identifiable piece of work D) requires a variety of activities and uses a number of different employee skills and talents
70) ______
71) "We can't pay much but our clients could not manage without people like you in their lives." This statement indicates that the position has ________. A) high task identity B) high feedback C) high task significance D) low self-efficacy
71) ______
72) In the job characteristics model, the dimension of ________ refers to the degree to which a job provides substantial freedom, independence, and discretion to the individual in scheduling the work and determining the procedures to be used in carrying it out. A) task significance B) task identity C) skill variety D) autonomy
72) ______
73) At 3M, workers are allowed up to 15% of their paid time to devote to projects of their own choosing. For that time, workers have ________. A) low feedback B) high autonomy C) high task identity D) high task significance
73) ______
74) In the job characteristics model, the dimension of ________ refers to the degree to which doing work activities required by a job results in an individual obtaining direct and clear information about the effectiveness of his or her performance. A) autonomy B) task significance C) task identity D) feedback
74) ______
75) As a flower arranger, Beth doesn't have to wait for someone to tell her. She can look at an arrangement and know whether she did a good job. Beth's job has ________. A) low task significance B) high feedback C) high autonomy D) low skill variety
75) ______
76) According to the JCM, which three job characteristics are crucial to an employee experiencing meaningfulness of his or her work? A) Skill variety, task identity, and task significance. B) Skill variety, autonomy, and feedback. C) Autonomy, feedback, and task significance. D) Autonomy, task identity, and task significance.
76) ______
77) According to the JCM, which job characteristic leads to an employee experiencing responsibility for outcomes of his or her work? A) Skill variety B) Task significance C) Feedback D) Autonomy
77) ______
78) According to the JCM, which job characteristic results in the employee knowing about the actual results of his or her work activities? A) Autonomy B) Task significance C) Feedback D) Skill variety
78) ______
79) Sarah is using the JCM to redesign jobs for her small team of writers. After carefully analyzing their jobs, she determines that while their jobs are high in skill variety, task identity, task significance, and autonomy, they receive little feedback about their work. Which one of the following steps will enable Sarah to improve this aspect of their jobs? A) Allowing writers to choose their topics and assignments. B) Allowing the writers to directly conduct business with their clients. C) Adding editing and proofreading duties to their existing work. D) Making employees responsible for executing a piece of work from start to finish.
79) ______
80) "In jobs today, employees rely more and more on those around them for information, advice, and assistance." Which one of the following approaches to job design best reflects this statement? A) The relational perspective of work design.
80) ______
B) High involvement work practices. C) The job characteristics model. D) The proactive perspective of work design. 81) The ________ of work design says that employees are taking the initiative to change how their work is performed. A) proactive perspective B) social model C) relational perspective D) job characteristics model
81) ______
82) The equity theory proposes that ________. A) an employee compares his or her job's input-outcomes ratio with that of relevant others and then takes steps to correct any inequity B) offering employees part of the company's shares, or equity, motivates them to do their best because their performance directly ties in with the company's C) employees are more likely to show initiative at work if they are more involved in decisions that affect their work D) employees expect that exerting a given amount of effort will lead to a certain level of performance and will be demotivated if that does not happen
82) ______
83) Coworkers Bob and Tom were comparing checks on Friday. Bob saw that Tom's was significantly larger, which made Bob unhappy. Which theory best explains Bob's reaction? A) Adams' equity theory B) Maslow's hierarchy of needs theory C) Herzberg's two-factor theory D) Vroom's expectancy theory
83) ______
84) After seeing Tom's paycheck, Bob decided their inputs were nearly identical but Tom's check was much larger. Bob decided to take action to make things fairer in his mind. He is most likely to ________. A) increase the quantity of his production B) reduce his effort at work C) focus on the quality of his production D) find another person to compare checks with
84) ______
85) ________ justice is the perceived fairness of the amount and allocation of rewards among individuals. A) Procedural B) Retributive C) Distributive D) Restorative
85) ______
86) When Bob discovered Tom had a larger paycheck for the same amount of effort, his concern centered on ________ justice. A) distributive B) retributive C) restorative D) procedural
86) ______
87) The company announced it would be laying off several workers because of the loss of several large orders. Employees wondered how the workers to be laid off would be selected. They were concerned with ________. A) need for achievement B) procedural justice C) equity D) distributive justice
87) ______
88) In the expectancy theory, ________ is the probability perceived by the individual that exerting a given amount of effort will lead to a certain level of performance. A) saliency B) instrumentality C) valence D) expectancy
88) ______
89) In the expectancy theory, ________ is the degree to which the individual believes that performing at a particular level is instrumental in attaining the desired outcome.
89) ______
A) valence C) expectancy
B) effort-performance linkage D) performance-reward linkage
90) In the expectancy theory, ________ is the importance that the individual places on the potential outcome or reward that can be achieved on the job. A) saliency B) valence C) expectancy D) instrumentality
90) ______
91) Tammy's boss has asked her to take on a project in addition to her regular work. According to expectancy theory, Tammy will consider the instrumentality and ask herself, "________." A) What's in it for me? B) How much time will this project take? C) Do I really have time to take on another project? D) What are the odds that if I expend effort on the project my performance will be satisfactory to the boss?
91) ______
92) Bonnie's boss has offered her baseball game tickets if she meets her sales goals this month. Bonnie looked at him in disbelief and did not put forth the effort to meet the goals. According to expectancy theory, from this we can surmise ________. A) the instrumentality was low B) the reward had low valence for Bonnie C) the expectancy was only moderate D) the effort-reward linkage was weak
92) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 93) According to the goal-setting theory, a generalized goal of "do your best" will produce a higher output than specific, challenging goals.
93) ______
94) Goal-setting theory works well as a motivator in cultures that are high in uncertainty avoidance.
94) ______
95) Evidence suggests goal-setting theory is directly related to job satisfaction.
95) ______
96) Managers using reinforcement theory to motivate employees should ignore, not punish, undesirable behavior.
96) ______
97) The term job design refers to the way tasks are combined to form complete jobs.
97) ______
98) Making jobs smaller and more specialized is the most effective way of motivating employees.
98) ______
99) Job enlargement refers to the horizontal expansion of a job by increasing job scope.
99) ______
100) An enriched job allows workers to do an entire activity with increased freedom, independence, and responsibility.
100) _____
101) Evidence supports that job enrichment is by far the best method to motivate employees.
101) _____
102) In the job characteristics model, task significance refers to the degree to which a job requires completion of a whole and identifiable piece of work.
102) _____
103) According to the job characteristics model, combining fragmented tasks will help increase skill variety and task identity.
103) _____
104) High-involvement work practices is another term for employee empowerment.
104) _____
105) In equity theory, recent research shows that distributive justice has a greater influence on
empl oyee
satisfacti 105) on than procedur al justice.
____ _
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 106) What does goal-setting theory tell us? 107) Explain the concepts of job enlargement and job enrichment with suitable examples and analyze their effectiveness in motivating employees. 108) How can managers use the job characteristics model (JCM) to design jobs? MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 109) Which one of the following is true about managing cross-cultural motivational challenges? 109) _____ A) In masculine cultures such as Japan and Slovakia, the focus is on quality-of-life benefits. B) Maslow's needs hierarchy largely remains unchanged across cultures. C) Most current motivation theories were developed in the United States by Americans and about Americans. D) Recent evidence suggests that in collectivist cultures, especially in the former socialist countries of Central and Eastern Europe, employees link pay solely to performance. 110) Which one of the following motivating factors or concepts is important to all workers, regardless of their national culture? A) Need for achievement. B) Physiological needs as the foundational need in the needs hierarchy. C) Interesting work. D) Extrinsic factors like pay.
110) _____
111) To maximize motivation among today's workforce, managers need to think in terms of ________. A) compensation B) job autonomy C) flexibility D) job security
111) _____
112) Studies tell us that younger men place more importance on having ________ in their jobs, while younger women seek ________. A) structure; interpersonal relationships B) flexibility; learning opportunities C) autonomy; convenience and flexibility D) independence; highly structured work opportunities
112) _____
113) Jill Hammer is a single mother who has decided to seek work with your company. She enjoys social interaction but also values time with her children. As you consider whether she will be a good fit for your department, you decide that she is likely to find satisfaction in the job because it ________. A) gives her the option to telecommute B) provides a lot of autonomy C) offers convenient and flexible work D) offers fixed work schedules hours
113) _____
114) Which one of the following is true about motivating unique groups of workers? A) For most temp workers, the freedom they get from their temporary status is the main motivator. B) Money and promotions are typically low on the priority list of professionals. C) Higher pay is the only reward that is important to low-skilled, minimum-wage employees.
114) _____
D) Flexible work arrangements have shown a strong link with high motivation levels. 115) Temporary workers are often motivated by ________. A) autonomy in their work and flexibility in their schedules B) the opportunity to become regular, full-time employees C) recognition and responsibility D) the ability to change assignments frequently
115) _____
116) Flipping burgers at the local drive-thru is Marla's first job. She has no work experience, no marketable skills. Which one of the following would you suggest her manager do to keep Marla motivated to perform at her highest level? A) Recognize her best performance with public praise. B) Offer her a promotion if she meets specific goals. C) Pair her with a long-term employee to train her in her job tasks. D) Pay her more than minimum wage.
116) _____
117) ________ is a motivational approach in which an organization's financial statements are shared with all employees. A) Pay-for-performance B) Open-book management C) I-Change model D) Self-determination approach
117) _____
118) The use of employee recognition programs as motivational tools is consistent with the ________ theory. A) reinforcement B) three-factor C) expectancy D) hierarchy of needs
118) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 119) Research indicates that the desire to be treated with respect is important to almost all workers, regardless of national culture.
119) _____
120) More than the other motivational theories, Maslow's hierarchy of needs has universal application.
120) _____
121) Professionals tend to be focused on their work as their central life interest, whereas nonprofessionals typically have other interests outside of work that can compensate for needs not met on the job.
121) _____
122) Research indicates that, for the most part, pay-for-performance programs show positive results.
122) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 123) The economic recession of the last few years saw employees at the receiving end of job insecurity, layoffs, tight budgets, minimal or no pay raises, benefit cuts, no bonuses, and long hours doing the work of those who had been laid off. Assuming that you were a manager during these difficult times, how would you motivate your employees? 124) What is open-book management? How is it effective in motivating appropriate employee behavior?
1) A 2) FALSE 3) FALSE 4) FALSE 5) Motivation refers to the process by which a person's efforts are energized, directed, and sustained toward attaining a goal. This definition has three key elements: energy, direction, and persistence. The energy element is a measure of intensity, drive, and vigor. A motivated person puts forth effort and works hard. However, the quality of the effort must be considered as well as its intensity. High levels of effort don't necessarily lead to favorable job performance unless the effort is channeled in a direction that benefits the organization. Effort that's directed toward, and consistent with, organizational goals is the kind of effort we want from employees. Finally, motivation includes a persistence dimension. We want employees to persist in putting forth effort to achieve those goals. 6) C 7) B 8) A 9) A 10) D 11) C 12) D 13) C 14) A 15) C 16) C 17) A 18) B 19) D 20) C 21) D 22) A 23) B 24) D 25) C 26) B 27) D 28) B 29) D 30) D 31) C 32) D 33) C 34) D 35) D 36) B 37) A 38) A 39) B 40) D 41) FALSE 42) TRUE 43) FALSE 44) FALSE 45) TRUE
46) FALSE 47) FALSE 48) Maslow proposed that within every person is a hierarchy of five needs: 1. Physiological needs: A person's needs for food, drink, shelter, sex, and other physical requirements. 2. Safety needs: A person's needs for security and protection from physical and emotional harm, as well as assurance that physical needs will continue to be met. 3. Social needs: A person's needs for affection, belongingness, acceptance, and friendship. 4. Esteem needs: A person's needs for internal esteem factors such as self-respect, autonomy, and achievement and external esteem factors such as status, recognition, and attention. 5. Self-actualization needs: A person's needs for growth, achieving one's potential, and self-fulfillment; the drive to become what one is capable of becoming. Maslow argued that each level in the needs hierarchy must be substantially satisfied before the next need becomes dominant. An individual moves up the needs hierarchy from one level to the next. In addition, Maslow separated the five needs into higher and lower levels. Physiological and safety needs were considered lower-order needs; social, esteem, and self-actualization needs were considered higher-order needs. Lower-order needs are predominantly satisfied externally while higher-order needs are satisfied internally. Managers using Maslow's hierarchy to motivate employees do things to satisfy employees' needs. But the theory also says that once a need is substantially satisfied, an individual is no longer motivated to satisfy that need. Therefore, to motivate someone, you need to understand what need level that person is on in the hierarchy and focus on satisfying needs at or above that level. 49) Frederick Herzberg's two-factor theory (also called motivation-hygiene theory) proposes that intrinsic factors are related to job satisfaction, while extrinsic factors are associated with job dissatisfaction. Further, he argues that data suggested that the opposite of satisfaction was not dissatisfaction, as traditionally had been believed. Removing dissatisfying characteristics from a job would not necessarily make that job more satisfying (or motivating). Herzberg proposed that a dual continuum existed: The opposite of "satisfaction" is "no satisfaction," and the opposite of "dissatisfaction" is "no dissatisfaction." Following this theory, you can motivate employees who show no dissatisfaction by emphasizing motivators, the intrinsic factors having to do with the job itself. These factors include achievement, recognition, work itself, responsibility, advancement, and growth. However, to motivate dissatisfied employees, the extrinsic factors associated with job dissatisfaction must first be addressed. These factors can include supervision, company policy, relationship with supervisor, working conditions, salary, relationship with peers, personal life, relationship with subordinates, status, and security. Once the dissatisfaction has been removed, you can maximize motivation by emphasizing the intrinsic factors. 50) Michelle should learn from each of her subordinates what is important to them and what need on Maslow's hierarchy is motivating each one. This will enable her to tailor assignments to their individual skill sets and individualize the rewards to help each worker to meet his/her personal goals. She will make sure the hygiene factors are not causing dissatisfaction and the motivating factors are present. When she determines which of McClelland's three needs is highest in each worker, she can incorporate the satisfaction of that need in the assignments. For example, a worker with a high need for affiliation can work on teams while one with a low nAff can work independently. She should make sure each worker understands how the assignments and rewards were decided and perceives the distribution of those rewards to be fair. By jointly setting difficult goals with each employee and obtaining genuine commitment to those goals, her workers are likely to put forth more effort. As each employee demonstrates the actions that lead to success, Michelle can offer praise and other non-monetary reinforcement. Some workers, especially the more experienced ones, will respond well to more autonomy in their job design; those with a desire for more work/life balance will appreciate flexibility. All will appreciate interesting work. 51) D 52) C 53) C 54) B 55) B 56) D
57) A 58) B 59) C 60) D 61) D 62) A 63) D 64) A 65) D 66) B 67) B 68) B 69) D 70) A 71) C 72) D 73) B 74) D 75) B 76) A 77) D 78) C 79) B 80) A 81) A 82) A 83) A 84) B 85) C 86) A 87) B 88) D 89) D 90) B 91) D 92) B 93) FALSE 94) FALSE 95) FALSE 96) TRUE 97) TRUE 98) FALSE 99) TRUE 100) TRUE 101) FALSE 102) FALSE 103) TRUE 104) TRUE 105) TRUE 106) The goal-setting theory says that specific goals increase performance and that difficult goals, when accepted, result in higher performance than do easy goals. It says that working toward a goal is a major source of job motivation. Studies on goal setting have demonstrated that specific and challenging goals are superior motivating forces. Such
goals ed goal of "do your best." The specificity of the goal itself acts as an internal stimulus. However, the conclusions of prod goal-setting theory apply to those who accept and are committed to the goals. Also, while participation is preferable uce a to assigning goals when employees may resist difficult challenges, it is not always necessary for performance. high Self-generated feedback has been shown to be a more powerful motivator than feedback coming from someone er else. Three other contingencies besides feedback influence the goal-performance relationship: goal commitment, outp adequate self-efficacy, and national culture. First, commitment is most likely when goals are made public, when the ut individual has an internal locus of control, and when the goals are self-set rather than assigned. Next, self-efficacy than refers to an individual's belief that (s)he is capable of performing a task. The higher your self-efficacy, the more does confidence you have in your ability to succeed in a task. Finally, the value of goal-setting theory depends on the the national culture. It's well adapted to North American countries because its main ideas align reasonably well with gene those cultures. Goal setting cannot be expected to lead to higher employee performance in countries where the raliz cultural characteristics aren't like this. 107) Job enlargement refers to the horizontal expansion of a job by increasing job scope, or the number of different tasks required in a job and the frequency with which these tasks are repeated. For instance, the job of an office assistant could be expanded so that apart from filing and documentation, (s)he could also handle phone calls and visitors. In contrast, job enrichment is the vertical expansion of a job by adding planning and evaluating responsibilities. Job enrichment increases job depth, which is the degree of control employees have over their work. In other words, employees are empowered to assume some of the tasks typically done by their managers. Thus, an enriched job allows workers to do an entire activity with increased freedom, independence, and responsibility. In addition, workers get feedback so they can assess and correct their own performance. For instance, if an office assistant had an enriched job, (s)he could, in addition to filing and documentation, schedule appointments (planning) and follow up with clients and coworkers (evaluating). Most job enlargement efforts that focused solely on increasing the number of tasks don't seem to work. However, research has shown that knowledge enlargement activities (expanding the scope of knowledge used in a job) lead to more job satisfaction, enhanced customer service, and fewer errors. Also, although job enrichment may improve the quality of work, employee motivation, and satisfaction, research evidence has been inconclusive as to its usefulness. 108) The JCM provides specific guidance to managers for job design. These suggestions specify the types of changes that are most likely to lead to improvement in the five core job dimensions. 1. Combine tasks: Put fragmented tasks back together to form a new, larger work module (job enlargement) to increase skill variety and task identity. 2. Create natural work units: Design tasks that form an identifiable and meaningful whole to increase employee "ownership" of the work. Encourage employees to view their work as meaningful and important rather than as irrelevant and boring. 3. Establish client (external or internal) relationships: Whenever possible, establish direct relationships between workers and their clients to increase skill variety, autonomy, and feedback. 4. Expand jobs vertically: Vertical expansion gives employees responsibilities and controls that were formerly reserved for managers, which can increase employee autonomy. 5. Open feedback channels: Direct feedback lets employees know how well they're performing their jobs and whether their performance is improving or not. 109) C 110) C 111) C 112) C 113) C 114) B 115) B 116) A 117) B 118) A 119) TRUE 120) FALSE 121) TRUE
122) TRUE 123) In tough economic circumstances like the last recession, managers must be creative in keeping their employees' efforts energized, directed, and sustained toward achieving goals. They should look at ways to motivate employees that didn't involve money or that were relatively inexpensive. They can rely on actions such as holding meetings with employees to keep the lines of communication open and to get their input on issues; establishing a common goal, such as maintaining excellent customer service, to keep everyone focused; creating a community feel so employees could see that managers cared about them and their work; and giving employees opportunities to continue to learn and grow. And, of course, an encouraging word always goes a long way. 124) Many organizations of various sizes involve their employees in workplace decisions by opening up the financial statements (the "books"). They share that information so that employees will be motivated to make better decisions about their work and better able to understand the implications of what they do, how they do it, and the ultimate impact on the bottom line. This approach is called open-book management. The goal of open-book management is to get employees to think like an owner by seeing the impact their decisions have on financial results. Since many employees don't have the knowledge or background to understand the financials, they have to be taught how to read and understand the organization's financial statements. Once employees have this knowledge, however, managers need to regularly share the numbers with them. By sharing this information, employees begin to see the link between their efforts, level of performance, and operational results.
Exam Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Persons who are able to influence others and who possess managerial authority are termed 1) _______ ________. A) managers B) entrepreneurs C) leaders D) visionaries TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 2) An important aspect of leadership is influencing a group to achieve its goals.
2) _______
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 3) Early research on leadership traits ________. 3) _______ A) focused on behavioral traits rather than physical traits of a leader B) found consistent and unique traits that would apply to all effective leaders C) focused on characteristics that might differentiate leaders from nonleaders D) sought to prove that charisma was an essential trait of leadership 4) In his speech the previous day, the new CEO had discussed his experience in the industry and his education. Carrie thought that the new CEO would do a great job given these characteristics, coupled with his good oratory skills and the fact that he just looked like a CEO. Carrie realized that she had been judging the new CEO in a manner consistent with the ________ theories of leadership. A) behavioral B) situational C) trait D) contingency
4) _______
5) Trait theory ignores ________. A) physical traits of leaders B) the interactions of leaders and their group members as well as situational factors C) the fact that leaders should be able to create visions and solve problems D) the aspects of honesty and integrity
5) _______
6) Which one of the following describes the leadership style in which a leader tends to centralize authority, dictate work methods, make unilateral decisions, and limit employee participation? A) Laissez-faire style B) Authoritarian style C) Democratic style D) Autocratic style
6) _______
7) In working with his employees, Carlos involves them in decision making and encourages them to participate in deciding their work methods and goals. Carlos's leadership style can best be described as ________. A) participative B) autocratic C) laissez-faire D) democratic
7) _______
8) Bernard expects his employees to "check their brains at the door." He does all the thinking, makes all the decisions, and issues commands to his subordinates. Bernard uses the ________ style of leadership. A) laissez-faire B) autocratic C) democratic D) authoritarian
8) _______
9) The ________ style of leadership describes a leader who tends to involve employees in decision making, delegate authority, encourages participation in deciding work methods and goals, and uses feedback as an opportunity for coaching employees. A) laissez-faire B) participative C) democratic D) autocratic
9) _______
10) Barbara solicits input from her subordinates before making decisions that will affect them. She often praises them for good work and gently offers suggestions to improve their performance. Barbara uses the ________ style of leadership. A) democratic B) autocratic C) participative D) supportive
10) ______
11) Which one of the following describes the leadership style in which the leader generally gives the group complete freedom to make decisions and complete the work in whatever way it sees fit? A) Democratic style B) Delegative style C) Laissez-faire style D) Facilitative style
11) ______
12) Connie sees her role as someone who provides direction and resources for her team then gets out of their way and lets them do their work however they think best. Connie uses the ________ style of leadership. A) facilitative B) laissez-faire C) participative D) autocratic
12) ______
13) According to the University of Iowa behavioral studies, group members' satisfaction levels were generally ________. A) improved when the leader was production oriented B) higher under a democratic leader than under an autocratic one C) higher under a supportive leader in the long run D) maintained when the leader was directive in the short run
13) ______
14) When employee satisfaction is measured, employees seemed to be more satisfied under a(n) ________ leadership style than under a(n) ________ one. A) supportive; laissez-faire B) democratic; autocratic C) laissez-faire; participative D) democratic; directive
14) ______
15) According to the Ohio State studies, ________ refers to the extent to which a leader is likely to define and shape his or her role and the roles of group members in the search for goal attainment. A) production orientation B) consideration C) people orientation D) initiating structure
15) ______
16) According to the Ohio State studies, the ________ dimension of leader behavior is defined as the extent to which a leader has job relationships characterized by mutual trust and respect for group members' ideas and feelings. A) relationship management B) consideration C) integrity D) people orientation
16) ______
17) Susan has a reputation of being fair, helpful, and understanding. She even helped her subordinate overcome a personal crisis. Which one of the following dimensions of leadership is Susan displaying here? A) Task orientation B) Consideration C) Initiating structure D) Employee orientation
17) ______
18) The University of Michigan studies used the two dimensions of ________ and ________ to study behavioral characteristics of leaders. A) task; people B) employee oriented; production oriented C) decision-making; employee D) consideration; initiating structure development
18) ______
19) The managerial grid used the behavioral dimensions "concern for people" and "concern for
___ _____"
and 19) evaluate da leader's use of these behavior s, ranking them on a scale from 1 (low) to 9 (high). A) environment
___ ___
B) integrity
C) profit
D) production
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 20) Despite the best efforts of researchers, it proved impossible to identify one set of traits that would always differentiate leaders from nonleaders.
20) ______
21) Effective leaders do not need a high degree of knowledge about the company, industry, and technical matters.
21) ______
22) Cognitive theories are leadership theories that identified behaviors that differentiated effective leaders from ineffective leaders.
22) ______
23) According to the University of Michigan studies, leaders who are production oriented are described as emphasizing interpersonal relationships and as taking a personal interest in the needs of their followers.
23) ______
24) The managerial grid only provides a framework for conceptualizing leadership style.
24) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 25) In a short essay, identify four traits associated with leadership and give an example of each. 26) In a short essay, contrast the three major behavior studies on leadership. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 27) To measure a leader's style, Fiedler developed the ________. 27) ______ A) situational leadership theory B) managerial grid C) contingency grid D) least-preferred co-worker questionnaire 28) The ________ model proposed that effective group performance depended upon the proper match between the leader's style of interacting with his or her followers and the degree to which the situation allowed the leader to control and influence. A) University of Michigan B) Fiedler contingency C) situational leadership D) path-goal
28) ______
29) Fiedler would expect that the best leadership style was a function of ________. A) leader-member relations, task structure, and position power B) chain of command, relationships, and power C) situation, personality of leader, and readiness of employees
29) ______
D) formal authority, production orientation, and consideration 30) Fiedler's dimension termed ________ is the degree of confidence, trust, and respect subordinates have for their leader. A) leader-member exchange B) position power C) task structure D) leader-member relations
30) ______
31) The degree to which the job assignments are formalized and proceduralized is the ________ contingency dimension identified by Fiedler. A) task structure B) organizational structure C) production orientation D) initiating structure
31) ______
32) Fiedler's term ________ refers to the degree of influence a leader has over power-based activities. A) leader-member relations B) task structure C) responsibility D) position power
32) ______
33) Fiedler assumed a person's leadership style was ________. A) fixed B) contingent upon the situation C) relatively flexible D) democratic
33) ______
34) Research by Fiedler uncovered three contingency dimensions that define the key ________. A) situational factors for determining leader effectiveness B) leader behavior factors for determining leader effectiveness C) follower factors for determining leader effectiveness D) situational factors for determining follower effectiveness
34) ______
35) Reviews of the major studies undertaken to test the overall validity of Fiedler's model have shown ________. A) support for only part of the model B) considerable evidence to refute the model C) mixed results with some studies supporting the model and others refuting it D) considerable evidence to support the model
35) ______
36) Jack emphasizes to his people that the work must be done, regardless of circumstances, and encourages his employees to meet their sales quotas. He is generally liked, but because sales are unstructured, sometimes his employees resent his rather heavy-handed approach. Fiedler's contingency model would classify Jack as ________ oriented. A) task B) relationship C) employee D) organization
36) ______
37) Jill has tried hard to build good rapport with her employees and knows each of their families. She encourages her employees to work hard, but to be certain to take time out for themselves and their families. Fiedler's contingency model would classify Jill as ________ oriented. A) consideration B) relationship C) task D) production
37) ______
38) The ________ leadership theory is a contingency theory that focuses on followers' readiness. A) adjustable B) situational C) adaptive D) facilitative
38) ______
39) According to Hersey and Blanchard, a high task-low relationship situation calls for the ________ leadership style. A) participating B) selling C) telling D) delegating
39) ______
40) The "telling" style of Hersey and Blanchard is most like the ________ style of the University of
Iow a
studies.
___ ___
40) A) participative
B) autocratic
C) laissez-faire
D) democratic
41) Which one of the following leadership styles describes a leader who provides both directive and supportive behavior? A) Telling B) Selling C) Participating D) Delegating
41) ______
42) Chuck manages the front-end crew at a fast food restaurant. For most of his crew, this is their first job so they have very few job skills but also seem reluctant to perform. In this situation, Chuck should use the ________ style. A) telling B) selling C) participating D) delegating
42) ______
43) Don has been on the job only a few days. He still has a lot to learn but pays close attention whenever his job coach gives him tips. The best style for the job coach to use is ________. A) telling B) selling C) participating D) delegating
43) ______
44) Jeremy is not in the habit of deciding everything on his own. He involves his team in the decision-making process as much as possible. He believes in communicating clearly and is always ready to help his team to get the best out of them. Jeremy's leadership style will be classified as which one of the following? A) Telling B) Selling C) Participating D) Delegating
44) ______
45) Which one of the following leadership styles describes a leader who provides little direction or support? A) Telling B) Selling C) Participating D) Delegating
45) ______
46) Which leadership theory asserts that a leader's job is to assist followers in attaining their goals and to ensure that their goals are compatible with the goals of the group or organization? A) Leader-Member Exchange B) Leader Participation Model C) Fiedler's Theory D) Path-Goal Theory
46) ______
47) According to the path-goal theory, a leader who lets subordinates know what's expected of them, schedules work to be done, and gives specific guidance as to how to accomplish tasks is termed ________. A) directive B) achievement oriented C) participative D) supportive
47) ______
48) According to the path-goal theory, a manager who consults with subordinates and uses their suggestions exhibits what type of leadership behavior? A) Directive B) Achievement oriented C) Participative D) Supportive
48) ______
49) According to the path-goal theory, a leader who is friendly and shows concern for the needs of subordinates is termed ________. A) directive B) achievement oriented C) participative D) supportive
49) ______
50) Alex was classified as an achievement-oriented leader by his team. Which one of the following would describe Alex's leadership style best? A) He consults with subordinates and uses their suggestions before making a decision. B) He lets subordinates know what's expected of them, schedules work to be done, and gives specific guidance on how to accomplish tasks.
50) ______
C) He shows concern for the needs of his subordinates and is friendly. D) He sets challenging goals and expects subordinates to perform at their highest level. 51) Brooke has decided that the appropriate leadership style would be to show friendliness and concern for the needs of her subordinates. According to the path-goal model, she wishes to be a(n) ________ leader. A) supportive B) relationship-oriented C) considerate D) participative
51) ______
52) The path-goal theory is a(n) ________ model of leadership that extracts key elements from the expectancy theory of motivation. A) contingency B) fixed C) alternative D) untested
52) ______
53) Eddie generally lets subordinates know what's expected of them, schedules work to be done, and gives specific guidance on how to accomplish tasks. He would be termed a(n) ________ leader. A) high-structure B) situational C) directive D) supportive
53) ______
54) Which one of the following would support Evelyn's attempt at becoming a participative leader? A) She is friendly and shows concern for the needs of subordinates. B) She sets challenging goals and expects subordinates to perform at their highest level. C) She lets subordinates know what's expected of them, schedules work to be done, and gives specific guidance as to how to accomplish tasks. D) She consults her subordinates and uses their suggestions before making a decision.
54) ______
55) Lately Francesca has been setting challenging goals and expecting subordinates to perform at their highest level. According to the path-goal model, she is acting as a(n) ________ leader. A) achievement-oriented B) high task C) production-oriented D) high structure
55) ______
56) When Fred recently met with the employees to let them know the product schedules and what he expected of them, he displayed which one of the following leadership styles? A) Participative B) Achievement-oriented C) Directive D) Supportive
56) ______
57) Which one of the following is included in the class of contingency variables termed "environment" by the path-goal theory? A) Locus of control and experience B) Employee satisfaction C) Task structure and formal authority system D) Perceived ability
57) ______
58) Which one of the following is included in the class of contingency variables termed "follower" by the path-goal theory? A) Formal authority system B) Employee compensation C) Work group relationships D) Locus of control
58) ______
59) According to the path-goal model, when Ginger spends time with the employees so they can see that she is friendly and has concern for them, she displays which one of the following leadership styles? A) Considerate B) Participative C) Supportive D) People-oriented
59) ______
60) According to the path-goal model, when Greg consults with the employees for suggestions prior to making a decision, he displays which one of the following leadership styles? A) Supportive B) Democratic C) Participative D) Considerate
60) ______
61) According to the path-goal model, when Hannah meets with the employees to establish challenging goals and expectations for the next financial year, she displays which one of the following leadership styles? A) Production-oriented B) Task-oriented C) Achievement-oriented D) Democratic
61) ______
62) According to the path-goal theory, directive leadership will lead to higher employee satisfaction when there is ________ within a work group. A) cohesiveness B) substantive conflict C) internal locus of control D) high structure
62) ______
63) According to the path-goal theory, employee performance and leadership style are likely to be positively related when ________. A) the leader adopts a directive style of leadership with followers who have an internal locus of control B) the leader displays directive behavior at all times C) the leadership style compensates for shortcomings in either the employee or the work setting D) the leader adopts a directive style when the tasks are clear and the employee has the experience and the ability to handle them
63) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 64) Fiedler's contingency model of leadership style proposed that effectiveness depends on the ability and willingness of the subordinates.
64) ______
65) The least-preferred coworker questionnaire measures whether a leader is task or relationship oriented.
65) ______
66) Fiedler's model assumed that the leader's style was fixed regardless of the situation.
66) ______
67) According to Fiedler's research, task-oriented leaders tended to perform better in situations that are very favorable to them and in situations that were very unfavorable.
67) ______
68) Derek heads a team of ten research analysts in Deutsche Bank. Even though he is least impressed with Cara among all his subordinates, when asked about her work he chose to focus on her strengths rather than her weaknesses. Derek can be described as a task-oriented leader.
68) ______
69) According to Robert House's path-goal theory, a supportive leader lets subordinates know what's expected of them, schedules the work to be done, and gives specific guidance on how to accomplish tasks.
69) ______
70) Robert House's achievement-oriented leader sets challenging goals and expects followers to perform at their highest level.
70) ______
71) Robert House assumed that leaders can change leadership styles depending on the situation.
71) ______
72) Path-goal theory holds that subordinates with an external locus of control will be more satisfied
wit h a
directive 72) style. 73) Path-goal theory states that employee performance and satisfaction are likely to be positively influenced when the leader chooses a leadership style that compensates for shortcomings in either the employee or the work setting.
___ ___ 73) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 74) In a short essay, discuss the situational leadership theory developed by Paul Hersey and Ken Blanchard. Next, list and discuss the four specific leadership styles as defined by them. 75) In a short essay discuss the stages of readiness from the situational leadership theory developed by Hersey and Blanchard. Give an example for each stage. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 76) When Alan was promoted to the head of the sales team at Mac Software Inc., he chose three of 76) ______ his closest friends in the team to form the core sales group with him. Which one of the following predictions would be consistent with the LMX theory? A) There will be a higher turnover among team members who are not a part of the core group. B) Job satisfaction is more likely to be higher for the team members who are not a part of the core group. C) Such an arrangement eventually becomes unstable. D) Team members who are not a part of Alan's core group are actually far more competent than his friends who form the core team. 77) Adrienne receives more attention and information from her supervisor than some of her coworkers. Because she feels "special," she puts more effort into her performance and scores higher on her evaluations. According to LMX theory, Adrienne is a ________. A) naturally high achiever B) protégé of her supervisor C) task-oriented employee D) member of the in-group
77) ______
78) Bill expects his employees to wonder "What's in it for me?" when he assigns extra tasks to them, so he is ready with an answer about the reward for their work. Bill is a(n) ________ leader. A) charismatic B) transactional C) situational D) transformational
78) ______
79) Which one of the following is an accurate statement about transformational leaders? A) They focus on tasks and pay little attention to followers. B) They clarify task requirements. C) They are poor motivators. D) They exhibit more than just charisma.
79) ______
80) Rachel's colleagues and subordinates have a very high regard for her. They know that no one can get high-quality work done the way Rachel can. She inspires her team to excel in their work, even exceeding their own expectations. What her subordinates like best about Rachel is that they are free to discuss her decisions with her, even question her once in while if they are not sure about her strategy. Which one of the following best describes Rachel's leadership style? A) Authentic B) Charismatic C) Transformational D) Transactional
80) ______
81) A leader, such as Bill Gates of Microsoft, who can inspire followers above their own self-interests and can have a profound effect on their performance, is known as a(n) ________ leader.
81) ______
A) informational C) transformational
B) directive D) transactional
82) The evidence supporting the superiority of transformational leadership over the transactional style is ________. A) moderately negative B) overwhelmingly impressive C) inconclusive D) moderately supportive
82) ______
83) Evidence indicates that transformational leadership is strongly correlated with ________. A) lower turnover rates and lower levels of goal attainment and follower well-being B) higher turnover rates and higher levels of employee satisfaction and follower well-being C) higher turnover rates and lower levels of productivity and employee satisfaction D) lower turnover rates and higher levels of productivity and creativity
83) ______
84) Joanna has a very clear idea of what she wants her team to accomplish and often works that idea into conversations with her subordinates. She uses unconventional and sometimes controversial means to achieve her ends, but her subordinates know she has their backs. Joanna can be described as a(n) ________ leader. A) authoritative B) charismatic C) telling D) participative
84) ______
85) If Rhonda is a charismatic leader, which one of the following characteristics is she most likely to possess? A) A lack of sensitivity to environmental constraints B) A willingness to take risks to achieve her vision C) An external locus of control D) A strong need to be in control
85) ______
86) Researchers who train individuals to use charismatic nonverbal behaviors do not recommend ________. A) avoiding eye contact B) having relaxed posture C) leaning toward the subordinate D) having animated facial expressions
86) ______
87) ________ leaders have a vision, the ability to articulate that vision and a willingness to take risks to achieve that vision. A) Trait B) Transactional C) Charismatic D) Visionary
87) ______
88) Cecil, CEO of a mid-size manufacturing company, readily accepts responsibility for his firm's products, including its mistakes. He is rather quiet but still a strong leader. Cecil could be called a(n) ________ leader. A) supportive B) transformational C) authentic D) ethical
88) ______
89) Many charismatic leaders exhibit some of the same behaviors as ________. A) psychopaths B) narcissists C) sociopaths D) Machiavellian leaders
89) ______
90) ________ leaders move beyond their own self-interest to help followers grow and develop. A) Authentic B) Charismatic C) Transformational D) Servant
90) ______
91) Which of these individuals would likely be classified as a servant leader? A) Martin Luther King, Jr. B) Richard Branson
91) ______
C) Mary Barra
D) Steve Jobs
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 92) Servant leaders are only found in religious or nonprofit organizations.
92) ______
93) Members of a manager's in-group tend to have multiple similarities with the manager.
93) ______
94) According to LMX theory, the leader chooses the in-group but the job requirements drive the decision.
94) ______
95) Transactional and transformational leadership are opposing approaches to getting things done.
95) ______
96) A charismatic leader is likely seen as being self-confident and influential.
96) ______
97) People working for charismatic leaders are motivated to exert extra work effort but express lower satisfaction.
97) ______
98) Charisma is an essential quality that leaders must possess to achieve high levels of employee performance.
98) ______
99) Charisma is the ability to create and articulate a realistic, credible, attractive vision of the future for any organization or organizational unit that grows out of and improves on the present.
99) ______
100) A vision should offer clear and compelling imagery that taps into people's emotions and inspires enthusiasm to pursue the organization's goals.
100) _____
101) Authentic leadership emphasizes the moral side of business.
101) _____
102) Ethical leaders place public safety ahead of profits.
102) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 103) In a short essay, differentiate between transactional and transformational leaders. 104) Compare and contrast charismatic and authentic leadership. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 105) Two traits unique to most leaders are ________. 105) _____ A) intelligence and conscientiousness B) conscientiousness and narcissism C) above-average height and blue eyes D) intelligence and narcissism 106) A leader who cares about their followers would most likely exhibit ________. A) narcissistic behavior B) relations-oriented behavior C) task-oriented behavior D) change-oriented behavior
106) _____
107) Leaders that exhibit change-oriented behavior tend to ________. A) be focused on one facet of the organization B) encourage innovative thinking C) prefer structure and production efficiency D) discourage followers from generating new ideas
107) _____
108) Experienced employees that don't require close supervision may find task-oriented behavior in a new leader to be ________.
108) _____
A) important
B) ineffective
C) insulting
D) refreshing
109) In general, workers with high levels of ability ________. A) require minimal supervision B) are difficult to manage C) respond well to advice D) do not like constructive criticism
109) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 110) A leader's effectiveness does not depend on the followers' experience.
110) _____
111) Workers with high levels of ability require minimal supervision.
111) _____
112) A relations-oriented leadership style works well in any culture.
112) _____
113) A task-oriented leader focuses on the needs of their followers.
113) _____
114) Leaders that exhibit change-oriented behavior are more likely to encourage innovation.
114) _____
115) Leadership traits play a small role in effective leadership and depend on situational factors.
115) _____
116) Transformational leadership is highly dependent on employee commitment and satisfaction.
116) _____
117) Over 75% of the most effective leaders are task-oriented.
117) _____
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 118) Juan is the person employees go to when knowledge of a topic was needed. Juan holds ________ 118) _____ power. A) legitimate B) referent C) reward D) expert 119) All of the following are sources of leader power except ________. A) expert B) legitimate C) status D) coercive
119) _____
120) Which one of the following is the type of power a person has because of his or her position in the formal organizational hierarchy? A) Coercive power B) Legitimate power C) Reward power D) Expert power
120) _____
121) Sam is the manager at a department store. He has 20 employees working for him who are mostly unhappy and discontented with the way he threatens them for even minor errors. Which one of the following statements is likely to be true about Sam? A) Sam is a telling leader. B) Sam is using referent power to get the job done. C) Sam is a transactional leader. D) Sam is using coercive power to get the job done.
121) _____
122) Tamera is the person employees go to when they need help with difficult work problems, as with software applications. Tamera holds ________ power. A) reward B) coercive C) expert D) legitimate
122) _____
123) Kay is the supervisor that the employees go to for task-related decisions. Kay holds ________
pow er.
123)
_____ A) coercive
B) legitimate
C) expert
D) reward
124) Clay is a transactional leader who can provide tangible rewards for good performance for his employees. Clay holds ________ power. A) referent B) legitimate C) reward D) coercive
124) _____
125) Marsha is the manager at a bank, with 30 employees reporting to her. Many of her staff are extremely impressed with the way she handles her work and the people at the bank. They take pride in being associated with her team. She is not only fair and understanding, but ensures that the deserving employees are compensated well. Which two sources of power does Marsha use in this example? A) Referent and expert power B) Reward and referent power C) Expert and reward power D) Referent and coercive power
125) _____
126) Your firm's attorney exercises ________ power when giving legal advice. A) expert B) legitimate C) status
126) _____ D) coercive
127) ________ power is the power that arises because of a person's desirable resources or personal traits. A) Legitimate B) Reward C) Referent D) Expert
127) _____
128) When a young child emulates a professional sports star's behavior, what kind of power does the star have over the child? A) Coercive B) Expert C) Legitimate D) Referent
128) _____
129) The most dominant component of credibility is ________. A) authority B) honesty C) status
129) _____ D) expertise
130) The dimension of trust that is used to describe honesty and truthfulness is ________. A) loyalty B) integrity C) competence D) consistency
130) _____
131) Shaun is the manager of a warehouse operated by a department store. He is trusted by his subordinates because he shares information freely, is reliable, and shows extremely good judgment while handling any type of crisis. Shaun is also known to be very protective of his staff. Which dimensions of trust is he exhibiting? A) Consistency, loyalty, and openness B) Integrity and loyalty C) Loyalty, consistency, and competence D) Competence and openness
131) _____
132) Why are more and more companies empowering nonmanagerial employees? A) Organizational upsizing left many managers with smaller spans of control. B) Managers must cope with increased work demands. C) Empowerment is appropriate for all circumstances. D) Managers needs to make quick decisions.
132) _____
133) One general conclusion that surfaces from leadership research is that ________. A) national culture is one situational variable which in reality has a limited impact on leadership style B) effective leaders do not use any single style C) managers always make good team leaders D) women usually make better transactional leaders than men
133) _____
134) Which of these actions will help you be seen as trustworthy? A) Show concern for everyone. B) Be open and speak your feelings. C) Keep records of all conversations. D) Keep your opinions to yourself.
134) _____
135) Downsizing, and the increased use of temporary workers, has ________. A) shifted worker focus away from leaders B) undermined trust in leadership C) lowered overall worker productivity D) neutralized the importance of leadership
135) _____
136) Leaders of virtual teams ________. A) do not need interpersonal skills since personal interaction is limited B) need to develop strong verbal skills for teleconferencing C) should focus primarily on developing their technical leadership skills D) need the ability to communicate support and leadership through writing
136) _____
137) Organizations with formalized goals, well-defined rules and procedures and cohesive work groups may require ________. A) relational leadership B) charismatic leadership C) less formal leadership D) more formal leadership
137) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 138) Most firms offer leadership development training at all management levels.
138) _____
139) Virtual environments work against people with strong verbal skills.
139) _____
140) Coercive power and reward power are synonymous.
140) _____
141) Referent power is based primarily on a person's expertise.
141) _____
142) Legitimate power is inherent in management positions.
142) _____
143) Legitimate power and authority are one and the same.
143) _____
144) Reward power is the power that arises because of a person's desirable resources or personal traits.
144) _____
145) Credibility is the degree to which followers perceive someone as honest, competent, and able to inspire.
145) _____
146) Trust is the belief in the integrity, character, and ability of a leader.
146) _____
147) Of the five dimensions that make up the concept of trust, loyalty seems to be the most critical when someone assesses another's trustworthiness.
147) _____
148) Transformational leadership characteristics are ineffective in non-Western cultures.
148) _____
149) With enough training, anyone can become an effective leader.
149) _____
150) Leadership training works best with individuals who are high self-monitors.
150) _____
151) The presence of routine tasks, formal goals and explicit rules make leadership unnecessary.
151) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
152) Discuss the five sources in which leader power has been identified. Include specific examples of each source of power to support your answer. 153) Explain the various substitutes for leadership and give examples of situations when leadership may not be necessary.
1) C 2) TRUE 3) C 4) C 5) B 6) D 7) D 8) B 9) C 10) A 11) C 12) B 13) B 14) B 15) D 16) B 17) B 18) B 19) D 20) TRUE 21) FALSE 22) FALSE 23) FALSE 24) TRUE 25) a. Drive-leaders exhibit a high effort level. They have a relatively high desire for achievement; they are ambitious; they have a lot of energy; they are tirelessly persistent in their activities; and they show initiative. Bill Gates built Microsoft into a successful corporation. b. Desire to lead-leaders have a strong desire to influence and lead others. They demonstrate the willingness to take responsibility. Managers seeking promotions generally have a desire to lead. c. Honesty and integrity-leaders build trusting relationships between themselves and followers by being truthful or non-deceitful and by showing high consistency between word and deed. Sherron Watkins blew the whistle on Enron. d. Self-confidence-followers look to leaders for an absence of self-doubt. Leaders, therefore, need to show self-confidence in order to convince followers of the rightness of their goals and decisions. Steve Jobs had confidence in himself and his employees. e. Intelligence-leaders need to be intelligent enough to gather, synthesize, and interpret large amounts of information, and they need to be able to create visions, solve problems, and make correct decisions. Jack Welch of GE was a very intelligent man. f. Job-relevant knowledge-effective leaders have a high degree of knowledge about the company, industry, and technical matters. In-depth knowledge allows leaders to make well-informed decisions and to understand the implications of those decisions. Steve Jobs knew the electronics industry and market very well. g. Extraversion-leaders are energetic, lively people. They are sociable, assertive, and rarely silent or withdrawn. Herb Kelleher of Southwest Airlines was extraverted. h. Proneness to guilt-guilt proneness is positively related to leadership effectiveness because it produces a strong sense of responsibility for others. Mary Barra of General Motors has accepted corporate guilt for the poor quality of GM cars amid numerous recalls. 26) a. The University of Iowa studies explored three leadership styles. The autocratic style leader tends to centralize authority, dictate work methods, make unilateral decisions, and limit employee participation. The democratic style leader tends to involve employees in decision making, delegate authority, encourage participation in deciding work methods and goals, and use feedback as teaching moments. The laissez-faire style leader gives the group complete freedom to make decisions and complete the work in whatever way it sees fit. The research of Lewin and his
assoc d to both good quantity and quality of work. iates b. The Ohio State studies identified two dimensions of leader behavior. Initiating structure is the extent to which a seem leader defined and structured his/her role and the roles of group members in the search for goal attainment, ed to including behavior that involved attempts to organize work, work relationships, and goals. Consideration is the indic extent to which a leader has job relationships characterized by mutual trust and respect for group members' ideas ate and feelings. A leader who was high in consideration helped group members with personal problems, was friendly that and approachable, and treated all group members as equals. (S)he showed concern for her/his followers' comfort, the well-being, status, and satisfaction. dem c. University of Michigan researchers came up with two dimensions of leadership behavior. Employee oriented ocrat leaders emphasized interpersonal relationships, took a personal interest in their followers, and accepted individual ic differences among group members. The production oriented leaders tended to emphasize the technical aspects of style the job, were concerned mainly with accomplishing their group's tasks, and regarded group members as a means to contr that end. The researchers concluded leaders who were employee oriented were associated with high group ibute productivity and high job satisfaction. 27) D 28) B 29) A 30) D 31) A 32) D 33) A 34) A 35) D 36) A 37) B 38) B 39) C 40) B 41) B 42) A 43) B 44) C 45) D 46) D 47) A 48) C 49) D 50) D 51) A 52) A 53) C 54) D 55) A 56) C 57) C 58) D 59) C 60) C 61) C 62) B 63) C 64) FALSE
65) TRUE 66) TRUE 67) TRUE 68) FALSE 69) FALSE 70) TRUE 71) TRUE 72) TRUE 73) TRUE 74) The situational leadership theory is a contingency theory that focuses on followers' readiness. Hersey and Blanchard argue that successful leadership is achieved by selecting the right leadership style, which is contingent on the level of the followers' readiness. The emphasis on the followers in leadership effectiveness reflects the reality that it is the followers who accept or reject the leader. Regardless of what the leader does, effectiveness depends on the actions of his or her followers. And, readiness refers to the extent to which people have the ability and willingness to accomplish a specific task. The four specific leadership styles are as follows: a. Telling (high task-low relationship)-the leader defines roles and tells people what, how, when, and where to do various tasks. b. Selling (high task-high relationship)-the leader provides both directive and supportive behavior. c. Participating (low task-high relationship)-the leader and follower share in decision making; the main role of the leader is facilitating and communicating. d. Delegating (low task-low relationship)-the leader provides little direction or support. 75) a. R1-People are both unable and unwilling to take responsibility for doing something. They're neither competent nor confident. A person with no job skills and no desire to work falls into this state. b. R2-People are unable but willing to do the necessary job tasks. They're motivated but currently lack the appropriate skills. This may be a teen in her first job. c. R3-People are able but unwilling to do what the leader wants. The worker who claims "Not in my job description" is at this stage. d. R4-People are both able and willing to do what is asked of them. These are the workers all supervisors seek-those who can and will do what is asked. 76) A 77) D 78) B 79) D 80) C 81) C 82) B 83) D 84) B 85) B 86) A 87) C 88) C 89) B 90) D 91) A 92) FALSE 93) TRUE 94) FALSE 95) FALSE 96) TRUE 97) FALSE 98) FALSE
99) FALSE 100) TRUE 101) TRUE 102) TRUE 103) Transactional leaders are those who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. Transformational leaders, however, pay attention to the concerns and developmental needs of individual followers. They change followers' awareness of issues by helping them look at old problems in new ways. They are able to excite, arouse, and inspire followers to put in extra effort to achieve group goals. Transformational leadership produces levels of employee effort and performance that go beyond what would occur in a transactional approach alone. 104) Charismatic leaders are enthusiastic, self-confident leaders whose personality and actions influence people to behave in certain ways. They have a vision, the ability to articulate that vision, and a willingness to take risks to achieve that vision. They are sensitive to both environmental constraints and follower needs. Sometimes their behaviors are out of the ordinary. Charismatic leaders believe in the future, themselves, and a higher purpose. Authentic leaders focus on the moral aspects of being a leader. These people know who they are, know what they believe in, and act on those values and beliefs openly and candidly. Authentic leaders are known for their humility; they are quieter, more in the background, and empower their employees. 105) A 106) B 107) B 108) C 109) A 110) FALSE 111) TRUE 112) FALSE 113) FALSE 114) TRUE 115) TRUE 116) TRUE 117) FALSE 118) D 119) C 120) B 121) D 122) C 123) B 124) C 125) B 126) A 127) C 128) D 129) B 130) B 131) A 132) B 133) B 134) B 135) B 136) D 137) C 138) FALSE 139) TRUE
140) FALSE 141) FALSE 142) TRUE 143) TRUE 144) FALSE 145) TRUE 146) TRUE 147) FALSE 148) FALSE 149) FALSE 150) TRUE 151) TRUE 152) a. Legitimate power-represents the power a leader has as a result of his or her position in the organization. People in positions of authority are also likely to have reward or coercive power, but legitimate power is broader than the power to coerce and reward. b. Coercive power-the power that rests on the leader's ability to punish or control. Followers react to this power out of fear of the negative results that might occur if they did not comply. As a manager, you typically have some coercive power, such as being able to suspend or demote employees or to assign them work they find unpleasant or undesirable. c. Reward power-the power to give positive benefits or rewards. These rewards can be anything that another person values. In an organizational context, that might include money, favorable performance appraisals, promotions, interesting work assignments, friendly colleagues, and preferred work shifts or sales territories. d. Expert power-influence that's based on expertise, special skills, or knowledge. As jobs have become more specialized, managers have become increasingly dependent on staff "experts" to achieve the organization's goals. If an employee has skills, knowledge, or expertise that's critical to the operation of a work group, that person's expert power is enhanced. e. Referent power-the power that arises because of a person's desirable resources or personal traits. Referent power develops out of admiration of another and a desire to be like that person. If you admire someone to the point of modeling your behavior and attitudes after him or her, that person has referent power over you. 153) Research indicates that in some situations any behaviors a leader exhibits are irrelevant. Follower characteristics such as experience, training, professional orientation, or need for independence can neutralize the effect of leadership. These characteristics can replace the employee's need for a leader's support or ability to create structure and reduce task ambiguity. Similarly, jobs that are inherently unambiguous and routine or intrinsically satisfying may place fewer demands on leaders. Finally, such organizational characteristics as explicit formalized goals, rigid rules and procedures, or cohesive work groups can substitute for formal leadership. [Student examples will vary but should incorporate the conditions mentioned above.]
Exam Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) ________ refers to the process of monitoring, comparing, and correcting work performance. 1) _______ A) Verifying B) Measuring C) Controlling D) Checking 2) ________ is the final step in the management process, which provides a critical link back to ________. A) Organizing; planning B) Leading; organizing C) Planning; controlling D) Controlling; planning
2) _______
3) Which one of the following management responsibilities determines if organizational goals are being achieved? A) Designing the organization's structure B) Formulating business strategy C) Motivating employees D) Measuring firm's performance
3) _______
4) Which one of the following observations best explains why the control function is important? A) An effective control system assures that the organization will meet or exceed its goals. B) An effective control system is the only way managers know whether organizational goals are being met. C) An effective control system includes employee empowerment. D) Organizational strategies are formed during the controlling stage.
4) _______
5) Statco, Inc., has struggled to meet projected revenues for each of the past ten quarters. The firm hired Mark Adams to design a control system and offer suggestions to improve the firm's performance. Which one of the following is a key activity that the proposed control system should perform? A) Organizational planning B) Performance measurement C) Organizational structuring D) Corporate governance
5) _______
6) Which one of the following represents the controlling function? A) The production manager schedules a new customer order. B) The quality auditor selects one piece every 15 minutes from the batch of molded products and, using very precise gauges, measures key dimensions on the part. C) The shift supervisor checks the production schedule for the day. D) The die cast machine operator adjusts the settings on the machine.
6) _______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 7) Having a control system reduces the scope of employee empowerment and autonomy.
7) _______
8) Controlling is the process of monitoring, comparing, and correcting work performance.
8) _______
9) Having a control system increases the scope of employee empowerment.
9) _______
10) Managers engage in controlling activities to protect the organization and its assets.
10) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 11) What are the major reasons why the control function is important to managers? MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
12) The control process assumes that ________. A) employee monitoring costs are part and parcel of doing business B) feedback is the only way to improve performance C) managers will be aware of the actions and activities of their employees D) performance standards are already in place
12) ______
13) Sometimes the French fries are rather pale, other times they are golden, sometimes they are quite dark. Anna cooks them according to how much time she has available between customers. The variation in appearance can be attributed to ________. A) customer demand B) emphasis of quantity over quality C) differences in the potatoes D) the fact that there is no performance standard
13) ______
14) The first step in the control process is ________. A) comparing performance against expectations B) enforcing managerial control C) measuring actual performance D) setting the desired standards
14) ______
15) Which one of the following sources of information for measuring performance is time consuming, obtrusive, and subject to personal biases? A) Personal observations B) Written reports C) Oral reports D) Statistical reports
15) ______
16) Blanca nods as she watches her new employee as he executes the steps in making French fries. Her purpose is to make sure he follows the instructions exactly as given. Blanca is using ________. A) personal observation B) nonverbal feedback C) mentoring D) statistical reports
16) ______
17) Which one of the following is an advantage of using statistical reports as the source of information? A) Unfiltered information can be obtained using statistical reports. B) Statistical reports are effective for showing relationships. C) Statistical reports provide unbiased information. D) Statistical reports can be used to obtain firsthand knowledge.
17) ______
18) Andrew prefers to get his performance data in the form of charts and graphs. Andrew prefers ________. A) statistical reports B) oral reports C) written reports D) personal observations
18) ______
19) Barry wants to use a tool that makes the data easy to visualize and is effective for showing relationships. Which one of the following tools is best suited for this? A) Written reports B) Statistical reports C) Personal observation D) Spreadsheets
19) ______
20) Which one of the following sources usually provides filtered information which cannot be documented? A) Online reports B) Oral reports C) Personal observations D) Written reports
20) ______
21) Brenda is always ready with a story to tell about performance in her area. Unfortunately, Brenda sometimes leaves out important facts and makes statements that cannot be corroborated. Brenda is delivering ________. A) oral reports B) statistical reports C) personal observations D) anecdotes
21) ______
22) Which one of the following sources provides information which is comprehensive, formal, and easy to file and retrieve? A) Oral reports B) Personal observations C) Written reports D) Online reports
22) ______
23) At the end of every month, the accounting department submits a balance sheet, statement of profit and loss, and cash flow statement to the senior management team. These are all ________. A) statistical reports B) oral reports C) personal observations D) written reports
23) ______
24) For which of the following is a subjective measure most appropriate? A) Reduction of waste in a manufacturing process. B) Level of satisfaction of patient care in a hospital. C) Degree of improvement in closing sales in a real estate brokerage. D) Quality of a water supply.
24) ______
25) The comparing step in the control process determines ________. A) a company's relative position in the industry in terms of the standards used B) the variation between actual performance and the standard C) a company's relative position in the industry in terms of performance variances D) the variation between actual performance and an external benchmark from a noncompetitor
25) ______
26) At the beginning of every shift, Cody records the amount of pizza sauce in inventory. At the end of every shift, he records the number of pizzas made and the amount of pizza sauce left in inventory. Why would he do this? A) So he will know how much pizza sauce to order. B) So he can determine if employees are taking sauce home. C) So he can compare the quantity used with the budgeted amount. D) So he will know how many customers visited his pizza parlor during his shift.
26) ______
27) Managers should use subjective measures when ________. A) work activities are critical to the organization B) work activities cannot be expressed in quantifiable terms C) employee attitudes are at stake D) organizational processes and activities are complex
27) ______
28) ________ corrects the problem at once to get performance back on track. A) Disciplinary action B) Basic corrective action C) Verbal feedback D) Immediate corrective action
28) ______
29) "No, James, you must start the timer after you lower the French fry basket into the fryer, not before." This supervisor is using ________. A) delayed corrective action B) immediate corrective action C) disciplinary action D) basic corrective action
29) ______
30) If a manager investigates how and why performance has deviated beyond the acceptable range of variation, and then corrects the source of the deviation, she is using ________. A) basic corrective action B) immediate corrective action C) feedback control D) concurrent control
30) ______
31) Mark recommends that the managers at Statco should identify how and why performance has deviated beyond the acceptable range of variation, and then correct the source of the deviation. Here, Mark is recommending ________. A) concurrent control B) feedforward control C) immediate corrective action D) basic corrective action
31) ______
32) Following a customer complaint, Bigly Mfg. formed a problem solving team to find out why the system was producing unacceptable parts and make a recommendation to fix it. This is an example of ________ corrective action. A) immediate B) preventive C) basic D) delayed
32) ______
33) Managers could choose to do nothing when ________. A) the difference between actual performance and standard performance is low and acceptable B) performance standards are acceptable, though the employees have not attained it C) an employee fails to attain the standard because of internal problems D) the variance observed from the expected performance is caused due to unrealistic standards
33) ______
34) The goal for the sales team at the auto dealership was to sell one new car per day every day of the month. In August the team sold 33 cars. What should management do? A) Nothing. The deviation is insignificant. B) Celebrate. Any achievement beyond the goal is deserving of a celebration. C) Revise the goal. If the team sold more than the goal, obviously the goal is too low. D) Wait. See if the performance is duplicated next month before taking any action.
34) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 35) Some control criteria, such as employee satisfaction, can be used for any management situation.
35) ______
36) Deviations that exceed the acceptable range of variation become significant and need a manager's attention.
36) ______
37) Basic corrective action corrects problems at once to get performance back on track.
37) ______
38) Managers should do nothing if the variance observed from the standard is acceptable.
38) ______
39) If the variance between the standard and the actual result is in the organization's favor, managers do not need to do anything.
39) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 40) In a short essay, list and briefly explain the steps, processes, and best practices managers typically utilize in the control process. Provide examples where appropriate. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 41) Which one of the following best fits the definition of organizational performance which managers 41) ______ should control?
A) The shipment of parts arrived two days late. B) Mr. B's Pizzeria sold an average of 18 pizzas per hour on Saturday night. C) The customer ordered the Victorian Rose interior décor. D) Colin arrived 15 minutes early for his shift. 42) Which one of the following refers to the overall output of goods or services produced divided by the inputs needed to generate that output? A) Yield B) Effectiveness C) Productivity D) Efficiency
42) ______
43) The plant superintendent wants to know the value of products per man hour. She is concerned with ________. A) waste B) profits C) costs D) productivity
43) ______
44) Festus believes organizational effectiveness is more important to the organization than organizational productivity. What could be the rationale behind this belief? A) Organizational productivity is not a measure of organizational performance. B) Organizational effectiveness is a measure of how well the organizational goals are met. C) Organizational effectiveness is a quantitative measure of the input-output relationship. D) Organizational productivity is not directly related to organizational output.
44) ______
45) ________ is measured by the costs of acquiring and transforming organizational resources into outputs. A) Input B) Profit C) Quality D) Leverage
45) ______
46) Which one of the following is considered the easiest way to increase organizational productivity? A) Decreasing the value of the products. B) Hiring more employees. C) Increasing the price of inputs. D) Increasing the price of outputs.
46) ______
47) The operations manager suggests a hike in the prices to improve productivity. However, the marketing manager rules this option out. What could be the possible reason for this? A) Such an action would lead to reduced employee satisfaction. B) The industry is characterized by intense competition. C) Selling price is negatively correlated to organizational productivity. D) Product prices are not related to organizational productivity.
47) ______
48) If a manager wanted to increase the ratio of outputs to inputs, she should ________. A) decrease the selling price B) increase productivity C) hire additional employees D) increase the quality of inputs
48) ______
49) Buchanan Welders cannot raise its prices in its highly competitive industry. Which one of the following is an option if Buchanan wants to increase its productivity? A) Emphasize the importance of quality in its sales materials. B) Use less expensive inputs. C) Exceed customers' expectations with early deliveries. D) Introduce a lower-cost model.
49) ______
50) Organizational ________ is a measure of how appropriate organizational goals are and how well an organization is achieving those goals. A) yield B) productivity C) efficiency D) effectiveness
50) ______
51) Disciplinary action is helpful to the organization because ________.
51) ______
A) employees know what to do to correct their undesirable behavior B) after the first rule violation, problem employees are eliminated from the organization. C) the manager will monitor the disciplined employee more closely D) disciplined employees are less likely to leave the organization TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 52) Productivity decreases when an organization raises the prices of its products.
52) ______
53) Organizational effectiveness is a measure of how appropriate organizational goals are and how well those goals are being met.
53) ______
54) Most employees do their jobs well and never require disciplinary action.
54) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 55) Explain the importance of delivering employee performance feedback including the use of disciplinary action. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 56) An organization hires additional personnel as soon as they get a major contract. The 56) ______ organization is using ________ control. A) feedback B) management C) feedforward D) concurrent 57) Contours, Inc., knows each drill bit can cut approximately 100,000 holes before the hole size is smaller than the print specification so it changes drill bits after 95,000 uses. Contours, Inc. is using ________ control. A) preventive B) concurrent C) predictive D) feedforward
57) ______
58) Which one of the following is considered the most desirable type of control to prevent anticipated problems? A) Concurrent control B) Management by walking around C) Feedforward control D) Feedback control
58) ______
59) Charles wants to prevent problems before their occurrence. Which one of the following is the most desirable type of control to achieve this goal? A) Feedforward control B) Proactive control C) Feedback control D) Preventive control
59) ______
60) The management control that takes place while a work activity is in progress is known as ________ control. A) immediate B) feedback C) consistent D) concurrent
60) ______
61) The launch went off without a hitch but the space capsule directed toward Neptune has veered off course. NASA sends signals to change the direction of flight to get it back on track. NASA is using ________ control. A) feedback B) preventive C) concurrent D) feedforward
61) ______
62) Devon interacts directly with the employees in the work area to identify problem areas. He works with various departments to obtain a holistic idea of the business. This type of direct supervision is an example of ________ control. A) feedback B) proactive C) direct supervision D) preventive
62) ______
63) At Contours, Inc., quality auditors pull one part from the production line every 15 minutes.
The se parts
are 63) measure d against the producti on print; any variation that is beyond acceptabl e levels is reported to the machine operator s. Contours , Inc. is using ________ control. A) concurrent
___ ___
B) concentric
C) feedback
64) Management by walking around is an example of ________ control. A) concurrent B) reactive C) feedforward
D) feedforward 64) ______ D) feedback
65) ________ is when a manager in the work area interacts directly with employees to maintain supervision. A) Proactive control B) Feedforward control C) Preventive maintenance D) Management by walking around
65) ______
66) Donna discovers major flaws in the packaging department. She consults the production manager and formulates control measures to improve packaging. Here, Donna is using the ________ control. A) feedback B) concurrent C) feedforward D) reactive
66) ______
67) The information provided by the customer who brings a product in for warranty work can be used for ________ control A) preventive B) concurrent C) feedforward D) feedback
67) ______
68) The ________ ratios measure an organization's ability to meet its current debt obligations. A) liquidity B) profitability C) leverage D) activity
68) ______
69) Which one of the following ratios examines the organization's use of debt to finance its assets and its ability to meet the interest payments on the debt? A) Profitability B) Leverage ratios C) Liquidity ratios D) Activity ratios
69) ______
70) Ruth, a financial consultant, determines her client's leverage ratio to be very high. What suggestion could Ruth give to help the firm reduce its leverage ratio? A) Reduce the sales to total assets ratio of the firm.
70) ______
B) Increase the money supply by selling a part of its assets. C) Pay back part of its debts to improve the ratio. D) Maintain more current assets than current liabilities. 71) ________ ratios measure how efficiently the firm is using its assets. A) Liquidity B) Profitability C) Leverage
71) ______ D) Activity
72) Elaine wants to analyze her company's ability to meet its current debt obligations. Which one of the following ratios is most helpful to Ruth in analyzing this? A) Current ratio B) Total asset turnover ratio C) Return on investment ratio D) Inventory turnover ratio
72) ______
73) Which one of the following ratios measures how efficiently and effectively the firm is using its assets to generate revenue? A) Return on investment B) Inventory turnover ratio C) Total asset turnover ratio D) Acid test ratio
73) ______
74) Contours, Inc. uses its budget for labor hours as a ________ tool. A) concurrent B) feedforward C) feedback
74) ______
75) When data is analyzed and processed, it becomes ________. A) a system B) a structure C) fact 76) Raw, unanalyzed facts are called ________. A) factoids B) data
D) preventive 75) ______ D) information 76) ______
C) information
D) database
77) Every March, Bill, who owns and operates a small retail shop, takes a large box of receipts and invoices to his accountant so the accountant can file Bill's taxes in April. Only then does Bill know if his business has been profitable. Bill could benefit from a(n) ________. A) management information system B) inventory control system C) balanced scorecard system D) concurrent control system
77) ______
78) The ________ approach to performance measurement was introduced as a way to evaluate organizational performance from more than just the financial perspective. A) market value B) income statement C) balanced scorecard D) balance sheet
78) ______
79) Which one of the following is a performance measurement tool that looks at four areas that contribute to a company's performance? A) balanced scorecard approach B) information control approach C) triple bottom line method D) market value method
79) ______
80) ________ is the search for the best practices among competitors or non-competitors that lead to their superior performance. A) Benchmarking B) Market positioning C) Factor analysis D) Total quality management
80) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 81) Feedforward control is more popular and effective than the other forms of control. 82) Activity ratios measure an organization's ability to meet its current debt obligations.
81) ______ 82) ______
83) The balanced scorecard approach evaluates organizational performance from more than just the financial perspective.
83) ______
84) Feedforward control takes place while a work activity is in progress.
84) ______
85) Leverage ratios measure an organization's ability to meet its current debt obligations.
85) ______
86) Managers should not consider the standards when measuring the actual performance of employees.
86) ______
87) Sensitive, proprietary, and confidential information must be controlled lest it fall into the hands of people who wish to harm the organization, its customers and/or employees.
87) ______
88) The benchmarking approach can evaluate organizational performance from more than just the financial perspective.
88) ______
89) Benchmarks for a company must be created based on the previous performance of the company.
89) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 90) In a short essay explain feedforward, concurrent, and feedback controls and provide an example for each one. 91) List and discuss four performance control tools used for monitoring and measuring organizational performance. 92) What do you think are the benefits of benchmarking? Provide examples of benchmarking practices. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 93) The earthquake/tsunami which hit Japan in March of 2011 highlights the contemporary need to 93) ______ design organizational controls for ________. A) cross-cultural differences B) global turmoil and disasters C) workplace safety D) workplace privacy 94) Control techniques can be quite different for different countries. The differences are primarily in the ________. A) types of tasks that employees perform in various countries B) measurement and corrective action steps of the control process C) strategic orientation of each technique D) way employees respond to the controlling measures
94) ______
95) Irene was quite upset to learn her employer read her e-mails. She thought all her messages were private. Which one of the following arguments would best explain her employer's actions? A) Managers want to be certain employees are not inadvertently passing on company secrets. B) Managers are looking for information that can later be used to terminate employees. C) Managers monitor computer usage to justify system upgrades. D) Managers want to ensure company e-mail servers are not being used for personal e-mails.
95) ______
96) Filing of fraudulent expense reports is an example of ________. A) workplace piracy B) workplace violence C) privacy intrusion D) employee theft
96) ______
97) Cindy's elementary school-aged children brought home lists of supplies required for their classes so Cindy raided the office supplies cabinet. Her rationale is that her employer doesn't pay her
eno to buy ugh these
items. 97) Cindy is engaging in ________ . A) equity adjustment C) compensation management
___ ___
B) workplace piracy D) employee theft
98) Clinical psychologists suggest that employee theft ________. A) occurs primarily when there are poor management-labor relations B) reflects deep cultural problems in the society C) is a symptom of poor planning and management control D) happens because people find ways to rationalize this behavior as correct
98) ______
99) Helen noticed employee theft has increased. She has considered several options to deal with this loss. Which one of the following is likely to be the most effective concurrent control? A) Dismiss any employee involved in theft. B) Carefully screen job applicants using honesty testing. C) Publicize progress in reducing theft. D) Publicly announce thefts when they are discovered.
99) ______
100) Because so many items had disappeared from the office supplies storeroom, management installed a surveillance camera to provide ________. A) evidence for prosecution B) concurrent control C) feedforward control D) feedback control
100) _____
101) Diane wants to take corrective measures to prevent future theft. Which one of the following is a feedback tactic that Diane could use to control theft? A) Openly communicate the costs of stealing. B) Use corporate hotlines for reporting incidents. C) Educate and train employees about the policies. D) Use the services of professional investigators.
101) _____
102) Which one of the following is a feedforward control measure to prevent employee theft? A) Open communication about incidents and what's being done. B) Employee assistance programs to help employees with behavioral problems. C) Thorough investigation of the incident by an external agency. D) Use of quick and decisive managerial intervention during the incident.
102) _____
103) Managers can use social media as a tool to ________. A) control their employees B) increase their likelihood of promotion C) monitor candid customer feedback D) sabotage competitors
103) _____
104) Which of these control mechanisms is a manager in a country that is not technologically advanced more likely to use? A) Direct supervision. B) Computer-generated reports. C) Decentralized decision making. D) Indirect control devices.
104) _____
105) Most US companies monitor employees' ________. A) personal cell phones C) movements
105) _____ B) office Internet use D) personal websites
106) Approximately 25% of firms report firing employees for ________. A) misuse of email B) inappropriate cell phone use C) inappropriate texting D) stealing office supplies
106) _____
107) An organization communicates openly to its employees about violent incidents in the workplace and what's being done to handle them. This is an example of a ________ control strategy. A) feedback B) reactive C) feedforward D) concurrent
107) _____
108) Most organizational theft is committed by ________. A) employees B) shoplifters C) cybercriminals D) organized crime rings
108) _____
109) Firms often monitor employee emails to limit the firm's legal exposure to ________. A) employee theft B) hazardous workplace issues C) product liability claims D) sexual harassment claims
109) _____
110) Corporate governance ________. A) is a system used to govern a corporation so that the interests of corporate owners are protected B) is a term that refers to legal agreements made between two or more partner firms C) refers to the compliance of the company to applicable laws and regulations D) refers to executive governance practices in companies
110) _____
111) Two areas in which corporate governance is being reformed are the role of boards of directors and ________. A) financial reporting B) reports to stockholders C) executive bonus systems D) reporting to government agencies
111) _____
112) The Sarbanes-Oxley Act called for ________. A) limited accountability of directors and executives of corporations B) more disclosure and transparency of corporate financial information C) more social contribution from companies in the United States D) increased pollution control measures from the government
112) _____
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 113) Managers tend to use more direct supervision and highly centralized decision making for control in less technologically advanced countries.
113) _____
114) Embezzlement and fraudulent filing of expenses are examples of employee theft.
114) _____
115) Employers establish specific policies defining theft and fraud and discipline procedures. This is an example of a concurrent control measure to control employee theft.
115) _____
116) Using corporate hotlines or other mechanisms for reporting and investigating workplace violence is an example of feedback control.
116) _____
117) Employers cannot legally read an employee's email if it is marked "confidential."
117) _____
118) One way to limit employee theft is to carefully screen job candidates.
118) _____
119) The Sarbanes-Oxley Act called for more disclosure and transparency of corporate financial
infor matio
n.
119)
120) The Sarbanes-Oxley Act of 2002 requires senior managers to certify their financial results.
____ _ 120) _____
ESSAY. Write your answer in the space provided or on a separate sheet of paper. 121) Provide a few examples for feedforward strategies to reduce employee theft. 122) Employers are increasingly monitoring employees' activities involving the use of company technology, particularly computers and cell phones. Explain why employers believe such monitoring is necessary. 123) Explain the role of the board of directors. 124) List some of the employee behaviors and activities that many organizations now monitor. 125) In a short essay, define corporate governance and describe some of the current trends in this area.
1) C 2) D 3) D 4) B 5) B 6) B 7) FALSE 8) TRUE 9) FALSE 10) TRUE 11) Control is important because it's the only way managers know whether organizational goals are being met and if not, the reasons why. The value of the control function can be seen in three specific areas: planning, empowering employees, and protecting the workplace. As the final step in the management process, controlling provides the critical link back to planning. If managers didn't control, they'd have no way of knowing whether their goals and plans were being achieved and what future actions to take. The second reason controlling is important is because of employee empowerment. Many managers are reluctant to empower their employees because they fear employees will do something wrong for which they would be held responsible. Many managers are tempted to do things themselves and avoid empowering. But an effective control system can provide information and feedback on employee performance, thus reducing potential problems. The final reason that managers control is to protect the organization and its assets. Today's environment brings heightened threats from natural disasters, financial scandals, workplace violence, supply chain disruptions, security breaches, and even possible terrorist attacks. Managers must have plans in place to protect the organization's employees, facilities, data, and infrastructure. Having comprehensive controls and backup plans will help assure minimal work disruptions. 12) D 13) D 14) C 15) A 16) A 17) B 18) A 19) B 20) B 21) A 22) C 23) D 24) B 25) B 26) C 27) B 28) D 29) B 30) A 31) D 32) C 33) A 34) A 35) TRUE 36) TRUE 37) FALSE 38) TRUE 39) FALSE
40) a. Measuring-the first step in the control process is measuring. Most jobs and activities can be expressed in tangible and measurable terms. Managers frequently use a variety of sources of information to measure actual performance, such as personal observation, statistical reports, oral reports, and written reports. For most managers, using a combination of approaches increases both the number of input sources and the probability of getting reliable information. b. Comparing-the second step involves determining the degree of variation between actual performance and the pre-specified standard. Some variation is to be expected. However, it is important for managers to determine the acceptable range of variation. c. Taking managerial action-managers can choose among three possible courses of action: do nothing, correct the actual performance, or revise the standards. Examples of corrective actions might include changing strategy, structure, compensation plans, training programs, redesigning jobs, or firing employees. Revising standards is an appropriate response if the variance was the result of unrealistic expectations. However, revising standards downwards can be troublesome when an employee or work unit fall short of reaching a goal. If they don't meet the standard, their natural response is to attack the standard. If the manager believes the standard is fair, they should explain their position, reaffirm their desire for the employee or work unit to meet the standard, and then take necessary corrective action to turn that expectation into reality. 41) B 42) C 43) D 44) B 45) A 46) D 47) B 48) B 49) B 50) D 51) A 52) FALSE 53) TRUE 54) TRUE 55) Managers must assure that employees' work efforts are of the quantity and quality needed to accomplish organizational goals. As with other performance, managers measure actual performance, compare that performance to a standard, and take action if needed. Managers need to provide their employees with feedback so that the employees know where they stand in terms of their work. Unless employees know what is expected and how they are deviating from expectations, no change in behavior can be expected, reducing the chances that the organization will meets its goals. If done properly, positive outcomes can result. In a productive performance discussion, organizations have the opportunity to reinforce company values, strengthen workplace culture, and achieve strategic goals. When feedback of this sort is ineffective, managers may need to apply disciplinary action. Fortunately, most employees do their jobs well and never need formal correction. When disciplinary action is necessary, it is important for a manager to know what the organization's policies are on discipline, which can be used to both control and correct employee performance. 56) C 57) D 58) C 59) A 60) D 61) C 62) C 63) A 64) A 65) D 66) A
67) D 68) A 69) B 70) C 71) D 72) A 73) A 74) C 75) D 76) B 77) A 78) C 79) A 80) A 81) FALSE 82) FALSE 83) TRUE 84) FALSE 85) FALSE 86) FALSE 87) TRUE 88) TRUE 89) FALSE 90) Feedforward control is the most desirable type of control. Feedforward control prevents anticipated problems since it takes place before the actual activity. Example - At St. Joseph's Hospital in West Bend, Indiana, a new facility was designed with identical rooms, nonslip floors, and glass walls to reduce errors in patient care and to increase employee safety. Concurrent control, as its name implies, takes place while an activity is in progress. When control occurs while the work is being performed, management can correct problems before they become too costly. Example - When managers use management by walking around, which is a term describing when a manager is out in the work area interacting directly with employees, they're using concurrent control. Feedback control, the most popular type of control relies on feedback. In feedback control, the control takes place after the activity is done. Example - When the Denver Mint discovered flawed Wisconsin quarters, it was discovered with feedback control. The damage had already occurred even though the organization corrected the problem once it was discovered. 91) a. Financial controls-one of the primary purposes of every business firm is to earn a profit. In pursuit of this objective, managers need financial controls. They might perform several financial ratio tests to ensure that sufficient cash is available to pay ongoing expenses, that debt levels haven't become too high, or that assets are being used productively. b. Information controls-information can be critical to monitoring and measuring an organization's performance. Managers need the right information at the right time and in the right amount. Inaccurate, incomplete, or delayed information can seriously impede organizational performance. Managers need information about the standards in order to be able to compare actual performance with the standard. They rely on information to help them determine if deviations are acceptable. They also rely on information to help them develop appropriate courses of action. c. Balanced scorecard-this is a performance measurement that was introduced as a way to evaluate organizational performance from more than just the financial perspective. The balanced scorecard is a performance measurement tool that looks at four areas-financial, customer, internal processes, and people/innovation/growth assets-that contribute to a company's performance. According to this approach, managers should develop goals in each of the four areas and measure to determine if these goals are being met. d. Benchmarking of best practices-benchmarking is the search for the best practices among competitors or noncompetitors that lead to their superior performance. At its most fundamental level, benchmarking means learning from others. As a tool for monitoring and measuring organizational performance, benchmarking can be
used help identify specific performance gaps and potential areas for improvement. Students can choose any three to to elaborate on. 92) Benchmarking is the search for the best practices among competitors or non-competitors that lead to their superior performance. Benchmarking should identify various benchmarks, which are the standards of excellence against which to measure and compare. It provides an insight into the best practices in the industry and helps managers evaluate organizational performance. For instance, the American Medical Association developed more than 100 standard measures of performance to improve medical care. Carlos Ghosn, CEO of Nissan, benchmarked Walmart operations in purchasing, transportation, and logistics. Benchmarking allows organizations to learn from others. Student examples may vary for this question. 93) B 94) B 95) A 96) D 97) D 98) D 99) C 100) B 101) D 102) B 103) C 104) A 105) B 106) A 107) A 108) A 109) D 110) A 111) A 112) B 113) TRUE 114) TRUE 115) FALSE 116) FALSE 117) FALSE 118) TRUE 119) TRUE 120) TRUE 121) The following strategies can be used to control employee theft. 1. Careful prehiring screening. 2. Educating and training employees about policies. 3. Performing professional reviews to study internal controls. 4. Involving employees in writing policies. 5. Establish specific policies defining theft and fraud and discipline procedures. The students may answer any two. 122) Employees are hired to work, not to surf the Web. Recreational on-the-job Web surfing is thought to cost billions of dollars in lost work productivity annually. Watching online video clogs corporate computer networks, making the transmission of business-related data slower. Employers don't want to risk being sued for creating a hostile work environment because of offensive messages or an inappropriate image on a coworker's computer screen. Concerns about racial or sexual harassment are one reason companies might want to monitor or keep back-up copies of all e-mail. Managers want to ensure that company secrets are not being leaked. 123) Board members are supposed to be an independent group that monitors the firm's management and looks out for the shareholders' best interest. Members have to ensure the company is in full compliance with all laws and
regul s and operates according to accepted business practices and industry and professional standards. The board's role ation in monitoring the firm expanded significantly due to the passage of the Sarbanes-Oxley Act in 2002. 124) Email usage and content, Internet activity, computer keystrokes, cell phone use and text messaging, and company vehicle locations are widely tracked by many employers. Employers can tap your work phone, monitor you in an employee bathroom or dressing room, and monitor all computer activity. 125) Corporate governance is the system used to govern a corporation so that the interests of corporate owners are protected. In response to several recent business scandals, two areas in which corporate governance is being reformed are the role of boards of directors and financial reporting. The cozy, quid pro quo composition of corporate boards, where board members are frequently peers of other corporations, is changing considerably. The Sarbanes-Oxley Act of 2002, puts greater demands on board members of publicly traded companies in the United States to do what they were empowered and expected to do. In addition to expanding the role of boards of directors, the Sarbanes-Oxley Act also called for more disclosure and transparency of corporate financial information. In fact, senior managers in the United States are now required to certify their companies' financial results. These types of changes should lead to better information-that is, information that is more accurate and reflective of the firm's financial condition.